This document provides an overview of sales promotion strategies. It discusses the different types of sales promotions including consumer promotions and trade promotions. The goals of sales promotions are to get consumers to buy more and buy now. Effective promotions are temporary and provide great value. Trends show most marketing budgets are allocated to sales promotion. The growth of promotions is due to their ability to produce instant and measurable results. However, overreliance on promotions can erode brands and orient managers to short-term goals. Proper planning includes defining target consumers and desired behavioral changes. The right promotion is chosen based on the specific situation and target audience.

1. Sales Promotion
The wonders and the wounds

2. Promotion Mix /
Communication Mix (PR)
 Sales Promotion
 PR
 Selling
 Advertising
 Below the line
 Above the line

3. Two Types of Sales Promotion
 Consumer Promotion
 Trade Promotion

4. What do we want the
consumers and trade to do?
 Buy More
 Buy Now

5. A sales promotion should
be
 Temporary – if not the consumers
would not believe it the next time
 Great Value Added – they should
find reason to buy now and more

6. Trends on Sales Promotion
 ¾ of the marketing budget is allocated
to sales promotion
 In 1995, 51% of total adspend represents
trade promotions. 24% on media
spending 22% on consumer promotion
 Growth in the coupon segment is
tremendous in aspirational markets
 Americans redeem more than 7 billion
coupons annually.

7. Why the Growth???
 Instant results
 Faster implementation
 Measurable
 Relatively easy and inexpensive

8. The Downside of Sales
Promotion
 Brand Erosion
 Profitability increase is relatively low
 Implementation cost and problems
 Orients marketing managers
towards short term results

9. What a sales promotion
should be….
 Lets go back to the basics
 Should hit the consumer at a particular
behavioral stage
 Are marketing communication activities
that change the price/value relationship
of a product / service perceived by the
target
 Generating immediate sales
 Altering long term brand value

10. Planning Sales Promotion
 Who is our target set of consumers?
 What is the reason for that behavior
 What is the goal of the program
 Is there a meaningful economics
attached to sales promotion

11. Types of Buyers
 Loyals
 Buy a particular brand on a more or less
consistent basis
 Competitive loyals
 People who are loyal to the competing
brand
 Switchers
 Purchase of various brands in one category
 Price buyers
 Non Users

12. Results that are needed ….
 Loyals
 Reinforce behavior
 Increase consumption
 Change buying timing
 Competitive loyals
 Break loyalty
 Encourage brand switching
 Switchers
 Persuade to buy the “right” brand more often
 Price
 Value added to make price less important
 Non users
 Create awareness, create category worth

13. Types of Sales Promotions
 Coupon
 Bonus Packs
 In pack, On pack, and Near Pack
 Specialty container
 Continuity program
 Refund
 Sweepstakes
 Contest
 Through the mail Premium
 Sampling
 Price off
 Trade deal
 Cause related promotion

14. Coupons
 Clip and bring to
the store to
exchange
 Now it is phone
based
 Induce loyalty
 Repeat purchase
 Keeps the
consumers
“locked”

15. Bonus Packs
 Like bundle pricing
but this is
temporary
 Adds value

16. In Pack, On Pack Promotion
 It is used to
introduce
new
products /
service
 Dispose of
excess
inventory
 Use excess
overhead

17. Specialty Container
 Increases
product’s
perceived value
 Uy tignan mo ito
meron libreng
pitchel

18. Continuity Program /Loyalty
Cards

19. Refund / Rebate
Promotion
 If the product does
not perform, then its
money back
 Or consume X
number of products
and get Y FREE
 Increases consumer
confidence
 Loyalty program

20. Sweepstakes
 Chance game
where the
consumer has
the chance to
win something
big through
purchases
 The more
purchases, the
more tickets
 Creates loyalty

21. Sampling
 Used when the
consumer is
unaware of the
brand or product
 Product buying is
prone to retail
channel based
trial
 Use when the
product can be
broken down into
smaller
dimensions

22. Price off promotion
 Use for slow
moving items
 Excess
inventory
 Off season
 Dislodge
competitors

23. Choose the right promotion
for the right situation

24. Example
Problem Solution
New product Sampling, on pack promo
Consumers not loyal Rebates, sweepstakes, loyalty
cards
Competitors are attacking Price off, free goods,
the market with ads premiums, rebates, etc
Excess inventory
Shelf life is critical

25. Consumer Promotion
 To induce immediate off take from
the shelf
 To induce trial
 To buy more of your products
 To buy immediately

29. Trade Promotion
 Encourages your trade channel to
load up
 Move inventory from the company
to the warehouse of the trade
 Distributor or Key Accounts
 Deals with promotional tools for staff
and sales people who are involved
with the trade.

30. Sell in (PUSH STRATEGY)
 Trade Promotion based on
 Volume – buy a certain volume to
attain a high discount
 Prompt Payment – pay on time and
get a discount
 Free goods – using new products or
slow moving products as promotional
items

31. Volume Promotion
 It motivates the dealer to buy more
 Example
 10+1 promotion – buy 10 boxes get
one free
 Volume discounts
 Bundle promotion – feature a new
product as freebie

32. Advertising Promotion
 Cooperative advertising
 Coke and Julie’s Bakeshop
 Lock in to the outlet to exclusively sell
your brand

33. Cooperative Promotion
 Co-branding
 Using another
brand to
penetrate the
market
 Good if the equity
of the other brand
is high or parallel

34. Co-branding
 Can be a strategy
or a promotion
 It increases margin
 Synergizes strength
of two brands
 Increases
profitability due to
the higher value
perception

35. Free Goods
 Better
profitability
 Moves higher
volume
 Economies of
scale

36. Trade Advertising
 Advertisements used as a basis for
booking sales
 Rationale is consumers will look for a
brand that has ad support

37. Massive advertising always leads
to higher trade acceptance
Trade will only stock items that will
sell

38. Personal Selling
Direct Selling
Distribution Selling
Outlet Selling

39. Direct Sales
 One of the recent
trends in consumer
marketing
 Direct hit to consumers
 Smaller ad spending

40. Direct sales
 Uses human capital as resource
 Offering high earnings to those who
do not have businesses
 Home based
 People get people strategy
 Very sound business model

41. How do they profit?
 Gross Margin 40%
 1st level Commission – 10%
 2nd level commission – 8%
 3rd Level commission – 5%
 AT this point, the company still earns
and yet the number of networks
grow….

42. Direct Sales
 Meaningful to sales people
 The consumer saves money
 Answer to the crisis of power of
retail channels

43. Distribution Selling
 Sales efforts to cover geographic
region
 Cover relevant distribution channels
 Example:
 Bonheur Marketing

44. Bonheur Marketing
 Former exclusive distributor of
Marlboro and Philip Morris
 Covers outlets such as
 Supermarkets
 Sari sari stores
 Sub distriutors
 Dealers
 Luzon wide

45. BiC became better when…
 Distribution was assigned to FilStar –
an affiliate of National Bookstore
 That’s why BiC enjoys great retail
presence in NBS

46. Public Relations

47. Advertising

48. Key things to remember
 Creative brief
 Copy strategy
 Execution methods
 Media
 Media Planning
 Success tracking

49. Creative Brief
 Brand elements
 Target segment
 Reason to buy
 Current behavior
 Current perception
 Desired impression

50. Copy Strategy
 Tagline
 Plot
 Mood and Tone
 Reason to believe
 Execution
 Media
 Media Plan

51. Media Plan
 Medium
 Above the line
 Below the line
 Loading
 Front
 Back
 Seasonal
 Flat

52. Media
 TVC
 Print
 Radio
 Internet
 CPM (clicks per million)
 Ad click
 Ad impressions
 Banner or button advertisement
 Click through
 Cost per click
 Spam
 URL

53. Media
 Billboard – of course they will stay
 Mall panels
 Comfort ads
 Transit ads
 Non traditional
 Corporate gifts
 Leaflets

54. Media Plan
 Using each medium optimally to
achieve brand objectives
 It is all about making the right mix or
right allocation of budgets
 Hitting consumers where it matters
most

55. Executions
 Humor
 MTV
 Slice of life
 Celebrity endorser
 Testimonial
 Image model – can be a competent
looking person
 Performance test

56. Just make sure they do not…
 Laugh and forget which brand is
being advertised
 Remember the story in the ad and
then forget about the brand
 Remember the song and then…
ano nga palang brand yun?!

57. Things you should remember
 Matrix or charts or altering SWOT with
TOWS analysis (which by the way is not a
marketing tool but a central
management tool) DON’T BUY THE IDEA
 The basics still work – and it will sans a
few alterations
 IMC is integrating all communication
materials under one big idea

58. Remember
 Life is a journey of learning
 The moment you get cocky is the time
you die
 Mistakes are best teachers
 Do not believe all teachers too… some
of them have issues as well… pick good
mentors
 Don’t label anything – good or bad
 Know thy Dharma – know what you are
here for

59. Remember
 Detachment is a great tool
 Make yourself competent – goal is
not to be employed but
employable
 Don’t make yourself stagnant –
even if your family or husband is rich
 Have FAITH

60. Remember
 PR competence is as important as
knowledge
 Be the best you can ever be (not
Alipin Sagigigilid all your life)

61. Thank you for such a
wonderful semester… really