Add Specialties Fall 2011

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This presentation shows why Ad Specialties can be an inexpensive an effective way to advertise and help brand your company.

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Add Specialties Fall 2011

  1. 1. Sales Promotions Defined What’s the difference between Advertising and Sales Promotion? D.A.Novak & Text of the GNU Free Documentation License 1
  2. 2. Sales Promotion Successful sales promotions increase interest in your products and spur revenue growth. Whether you offer consumer products or services, properly positioned sales promotion is an integral component to your overall marketing plan. The best ideas for sales promotion expand the reach of your products and lead customers to choose your products over your competitors. Ideas for Sales Promotion By Laura Acevedo, eHow Contributor 2
  3. 3. Sales Promotion Defined • Sales Promotion: The use of a value added offer or incentive for the purpose of influencing or moving the buying cycle forward. Advertising changes minds – Promotion changes behavior D.A.Novak & Text of the GNU Free Documentation License 3
  4. 4. Advertising vs. Sales Promotion Sales Promotion Advertising • Creates perception, builds brand image • Creates concept = communication of idea or image. • Longer term. • Measurement- Awareness and attitudes • Creates sales or consumer response, builds desire and stimulates action. • Creative concept-the proposition or offer that gets the consumer to act. • Shorter term. • Measurement: sales and responses. D.A.Novak & Text of the GNU Free Documentation License 4
  5. 5. What Can Sales Promotion Do? Sales Promotions Can Stimulate Trial Build Traffic Build purchase frequency Build customer loyalty. Encourage stocking-up. Reinforce advertising. Reinforce brand image Generate trade support Motivate salespeople Sales Promotion Cannot Change negative perceptions about a product. Turn a product around when it is in decline. “Create” a brand image. D.A.Novak & Text of the GNU Free Documentation License 5
  6. 6. Setting Objectives 1. They must be clear and concise. 2. They need to indicate what you want to achieve quantitatively, qualitatively and in what time frame. 3. The need to define exact action. • Example: Increase the number of active travel agents 10% by end of fiscal year. Achieve 70% renewal rate on two-year membership in first solicitation. D.A.Novak & Text of the GNU Free Documentation License 6
  7. 7. Who Is Your Target Market? CONSUMER? TRADE? SALESFORCE? D.A.Novak & Text of the GNU Free Documentation License 7
  8. 8. Six Promotions Strategies Objectives and market dictate strategy: 1. Trial-Introducing a new product. 2. Loading-Increasing volume (stocking up). 3. Continuity-Building Repeat purchases. 4. Usage-Encouraging new and frequent use. 5. Image-Reinforcing brand image/perception and enhancing advertising. 6. Traffic-Encouraging store promotions, events, website, or trade show exhibit. D.A.Novak & Text of the GNU Free Documentation License 8
  9. 9. Sales Promotion Media. • Coupons • Clubs and frequency rewards • Bonus & value packs • Premiums • Incentives and spiffs • Stamps and continuity offers • Rebates and refunds • Sampling and demos • P.O.P. & P.O.S. displays • Advertising specialties and business gifts • Sports events • Charity events D.A.Novak & Text of the GNU Free Documentation License 9
  10. 10. Sales Promotion Techniques Trade sales promotion techniques Price deal: A temporary reduction in the price, such as happy hour Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and AAdvantage. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-line couponing: Coupons are available on line. Consumers print them out and take them to the store. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad for tomato ketchup. D.A.Novak & Text of the GNU Free Documentation License 10
  11. 11. Sales Promotion Techniques • Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. • Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. • Point-of-sale displays: – Aisle interrupter: A sign that juts into the aisle from the shelf. – Dangler: A sign that sways when a consumer walks by it. – Dump bin: A bin full of products dumped inside. – Glorifier: A small stage that elevates a product above other products. – Wobbler: A sign that jiggles. – Lipstick Board: A board on which messages are written in crayon. – Necker: A coupon placed on the 'neck' of a bottle. – YES unit: "your extra salesperson" is a pull-out fact sheet. D.A.Novak & Text of the GNU Free Documentation License 11
  12. 12. Core Elements of a Sales Promotion • Creative concept (the offer) • The idea or proposition that gets the consumer or trade to act (strategy) • The media or system for communicating the offer. • Newspaper, TV, direct mail, FSI, in-store promo., displays, web, e-mail, and ad specialties. , on-pack, and salespeople. • Note: The fulfillment or distribution of the reward promised in the offer is extremely important and reflects directly on the company. D.A.Novak & Text of the GNU Free Documentation License 12
  13. 13. Advertising and Sales Promotion • Based upon studies by Dr. Walter Dill Scott, Northwestern University. • Within 24 hours, 25 out of 100 people forget impressions. • Within 2 days, more than 50% have forgotten the impression. • Within 4 days, more than 75% have forgotten the ad. D.A.Novak & Text of the GNU Free Documentation License 13
  14. 14. Sales Promotion Political Issues Political issues Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964.[1] Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for having the most strict regulations. Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls.[2] D.A.Novak & Text of the GNU Free Documentation License 14
  15. 15. Sales Promotion Ideas • Cause-Related • Tie your sales promotion to a worthy cause to increase your business profile and sales. Customers like helping a good cause and may choose your product or services over a competitor if you tie a sales promotion to an appropriate cause. Choose a cause that is related to your products for maximum benefit. If you sell makeup, tie your sales promotion to a skin cancer charity. Promote through store signs, information on your website, coupons and direct marketing efforts. Work with the charity you choose to include promotional information on their website and marketing materials for added exposure. For long-term cause marketing, consider international movements such as fair trade products. • Finance Deals • Offer special financing deals to spur sales on new, underperforming or high-value goods and services. For some customers, financing specials can speed up a planned purchase or increase the value of an order. For service sales, financing deals can be critical to enabling customers to obtain needed equipment or ease into a service contract. For example, a security company that makes most of their revenue off of long-term service contracts can offer financing specials to offset the cost of monitoring equipment. These financing arrangements can help lock in customers to longer-term service contracts that will lead to predictable increases in revenue for your company. • Ideas for Sales Promotion By Laura Acevedo, eHow Contributor Read more: 15
  16. 16. Sales Promotion Ideas • Text Promotions • Place codes on your products that require customers to text a number to enter a drawing for a significant prize. Text promotions can help you target a younger demographic and can generate a buzz about your products. Use this type of promotion to build a contact list that you can use for future text-based marketed campaigns. Text-based sales promotions work best on consumer products that are frequently purchased like beverages, candy or youth-oriented products. • BOGO • Buy one, get one at a discount (BOGO) offers are popular with consumers and can have a large impact on your sales volume. Since customers must purchase a second product to receive the discount, your store benefits from increased overall sales. BOGO sales draw in repeat customers and new customers and increase traffic to your store. Make your BOGO sale encompass most of the products you offer for maximum benefit. Increase prices on any product that will not be profitable in a BOGO offer or clearly exclude them from your sales promotion. Depending on your product, consider gradually increasing the prices on all your products before your sales promotion if customers are not highly price sensitive. • Ideas for Sales Promotion By Laura Acevedo, eHow Contributor 16
  17. 17. Advertising and Promotion definitions Definition Advertising Promotion Definition One-way communication of a persuasive message by an identified sponsor, whose purpose is non-personal promotion of products/services to potential customers. A Promotion usually involves an immediate incentive for a buyer (intermediate distributor or end consumer). It can also involve disseminating information about a product, product line, brand, or company. Time Long term Short term Price Expensive in most cases Not very expensive in most cases. Suitable for Medium to large companies Small to large companies Sales Assumption that it will lead to sales Directly related to sales. Example Giving an advertisement in the newspaper about the major products of a company Giving free products, coupons etc. About A type of marketing tool A type of marketing tool Purpose Increase sales, brand building. Increase sales. Result Slowly very Soon 17
  18. 18. Advertising vs Promotion • Cost of advertising vs promotion • Promotions are directly linked to sales and hence for small companies it may be easier to use promotional methods. Advertising may be more expensive for small companies and it may not be feasible for them while in advertising it is being assumed that adverts will lead to sales. • For example: A store may give 20% discount on its products which may increase sales while the same shop may find it difficult to advertise this in various medias. D.A.Novak & Text of the GNU Free Documentation License 18
  19. 19. Advertising Types • Advertising can be of the following types: • Media: Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television ads, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches etc. • Covert Advertising: Covert advertising is when a product or brand is embedded in entertainment and media. For example: John Travolta wearing only "Diesel" clothing in a movie. • Television Commercials: Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops. • Internet Advertising: This is the newest form of advertising wherein web space is used and email advertising is used. D.A.Novak & Text of the GNU Free Documentation License 19
  20. 20. Marketing and Sales Marketing and sales are both activities aimed at increasing revenue. They are so closely intertwined that people often don’t realize the difference between the two. Indeed, in small organizations, the same people typically perform both sales and marketing tasks. Nevertheless, marketing is different from sales and as the organization grows, the roles and responsibilities become more specialized. D.A.Novak & Text of the GNU Free Documentation License 20
  21. 21. Sales vs Marketing • Sales vs Marketing Activities • Marketing activities include consumer research (to identify the needs of the customers), product development (designing innovative products to meet existing or latent needs), advertising the products to raise awareness and build the brand. The typical goal of marketing is to generate interest in the product and create leads or prospects. • On the other hand, sales activities are focused on converting prospects to actual paying customers. Sales involves directly interacting with the prospects to persuade them to purchase the product. • Marketing thus tends to focus on the general population (or, in any case, a large set of people) whereas sales tends to focus on individuals or a small group of prospects. D.A.Novak & Text of the GNU Free Documentation License 21
  22. 22. Marketing vs Sales Marketing Sales Approach Broader range of activities to sell product/service, client relationship etc.; determine future needs and has a strategy in place to meet those needs for the long term relationship. makes customer demand match the products the company currently offers. Focus Overall picture to promote, distribute, price products/services; fulfill customer's wants and needs through products and/or services the company can offer. fulfill sales volume objectives Process Analysis of market, distribution channels, competitive products and services; Pricing strategies; Sales tracking and market share analysis; Budget Usually one to one Scope Market research; Advertising; Sales; Public relations; Customer service and satisfaction . Once a product has been created for a customer need, persuade the customer to purchase the product to fulfill her needs Horizon Longer term Short term Strategy pull push Priority Marketing shows how to reach to the Customers and build long lasting relationship Selling is the ultimate result of marketing. Identity Marketing targets the construction of a brand identity so that it becomes easily associated with need fulfillment. Sales is the strategy of meeting needs in an opportunistic, individual method, driven by human interaction. There's no premise of brand identity, longevity or continuity. It's simply the ability to meet a need at the right time. D.A.Novak & Text of the GNU Free Documentation License 22

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