SP Research and Integration Dr Stephan Dahl [email_address]

Main Points Research into Sales Promotions Academic Practicioner Integration of Sales Promotions with Overall Communication Strategy Other Marketing Communication Tools Advertising in particular

Research into Sales Promotions

Academic

Practicioner

Integration of Sales Promotions with

Overall Communication Strategy

Other Marketing Communication Tools

Advertising in particular

Types of Research Academic Fundamental & exploratory Comparative research Explanatory research Wider Implications research Market Research Market characteristics Predictive Evaluative

Academic

Fundamental & exploratory

Comparative research

Explanatory research

Wider Implications research

Market Research

Market characteristics

Predictive

Evaluative

Academic: Fundamental and exploratory Explains the reasons for SP Looks at how Sales Promotions work at a basic “functional” level Mostly psychology & consumer behaviour based research Consumer-”cleverness” as a factor in SP success

Explains the reasons for SP

Looks at how Sales Promotions work at a basic “functional” level

Mostly psychology & consumer behaviour based research

Consumer-”cleverness” as a factor in SP success

Academic: Comparative Evaluates impact of different SP techniques Perceptional differences of SP techniques Can be longitudinal research based on market data Wide variety of explanatory perspectives Price vs. Sample promotions in grocery markets Perception of Money-off promotions in ...

Evaluates impact of different SP techniques

Perceptional differences of SP techniques

Can be longitudinal research based on market data

Wide variety of explanatory perspectives

Price vs. Sample promotions in grocery markets

Perception of Money-off promotions in ...

Academic: Explanatory Builds on exploratory, though often more applied Frequently uses market-derived, comparative data Mostly explains “market observations” Role of price-promotions in the fruit market

Builds on exploratory, though often more applied

Frequently uses market-derived, comparative data

Mostly explains “market observations”

Role of price-promotions in the fruit market

Academic: Wider Implications Takes a holistic view of SP activity Frequently goes beyond brand/category or market impact Uses a wide variety of explanatory perspectives Sometimes more argumentative rather than data-derived Impact of Alcohol SP on performance level in teenagers

Takes a holistic view of SP activity

Frequently goes beyond brand/category or market impact

Uses a wide variety of explanatory perspectives

Sometimes more argumentative rather than data-derived

Impact of Alcohol SP on performance level in teenagers

Practitioner Immediate results Profit/Loss/ROI driven Answers specific questions Often no or little explanatory perspectives No theory building, though frequently based on theory or experience

Immediate results

Profit/Loss/ROI driven

Answers specific questions

Often no or little explanatory perspectives

No theory building, though frequently based on theory or experience

Practitioner: Market Market & consumer data for specific products/brands/categories Fact based reporting “ Need for decision”-driven Limited by the framework used - “tunnel vision” - questions asked - data available/subjects accessible ACNielsen, Mintel, own surveys Which promotions will be found to be compelling? Frequency of purchase of product/category...

Market & consumer data for specific products/brands/categories

Fact based reporting

“ Need for decision”-driven

Limited by the framework used - “tunnel vision” - questions asked - data available/subjects accessible

ACNielsen, Mintel, own surveys

Which promotions will be found to be compelling?

Frequency of purchase of product/category...

Practitioner: Predictive Based on Market research: Outcome (Objectives) prediction Risk prediction Forecasting Predicted ROI Brand perception impact

Based on Market research:

Outcome (Objectives) prediction

Risk prediction

Forecasting

Predicted ROI

Brand perception impact

Practitioner: Evaluative “ What has happened” research Based on comparative market characteristics Explains predictions made and outcomes Charts future potential Campaign evaluation

“ What has happened” research

Based on comparative market characteristics

Explains predictions made and outcomes

Charts future potential

Campaign evaluation

Practitioner: Often short sighted and driven by own needs Academic: Often holistic with an outside-in approach

Practitioner: Often short sighted and driven by own needs

Academic: Often holistic with an outside-in approach

SP and integration SP Ads PR Fuzzy Clear Time

SP and integration SP Ads PR Achieving Sales AID A Attention / Interest AI DA Brand Image AI D A

SP and integration SP Ads PR Achieving Sales AID A Attention / Interest AI DA Brand Image AI D A

SP and integration Advertising is fairly static: Many repeats required Forgotten at POP Little interaction Builds brands (and pos. premium) Bad at getting “action”

Advertising is fairly static:

Many repeats required

Forgotten at POP

Little interaction

Builds brands (and pos. premium)

Bad at getting “action”

SP and integration SP is a lot more flexible, but Can be highly damaging Short term only Increases volume but decreases margins/equity MUST be used strategically to minimise chance of damage and increase brand message

SP is a lot more flexible, but

Can be highly damaging

Short term only

Increases volume but decreases margins/equity

MUST be used strategically to minimise chance of damage and increase brand message

SP and integration Vision Advertising Objectives SP Objectives Brand Objectives Other Objectives Reality Check!

SP and integration You Partner Comp. Comp. Comp. Comp. Consumer

SP and integration Main objectives need to be aligne Holistic view Don’t be guided by short-termism Ensure USP is clear! Sing from the same song sheet!

Main objectives need to be aligne

Holistic view

Don’t be guided by short-termism

Ensure USP is clear!

Sing from the same song sheet!