Sales Promotion

1. Sales Promotion Introduction and Current Trends

2. WHAT COURSE OBJECTIVES?

3. Sales Promotion?

5. How do you decide what Sales Promotions to engage?

6. One additional question=> What is your Marketing?

7. What is Marketing? • 3 keywords: • Consumers • Value • Relationships

8. How to get there? Fundamental Marketing Process Overview • Business objectives • Business strategies Business Management Marketing Product Promotion Marketing objectives Understand Market Consumers Competition Etc. Core marketing strategies Marketing Mix Price • Needs • Wants • Demand • Target Market • Value • Proposition • Positioning • 4 P’s • For each: • Objectives • Strategies • Tactics • Linkage to purchasing • behavior: • Needs recognition • Information search • Alternatives comparison • Purchase decision • Post purchase behavior Placement (distribution)

9. How to get there? Fundamental Marketing Process Overview • Business objectives • Business strategies Business Management Marketing Product Promotion Marketing objectives Understand Market Consumers Competition Etc. Core marketing strategies Price • Consumers Needs or Problems • Competition • Market offerings • Target Market • Value • Proposition • Positioning • Core baseline applications: • Acquisition • Loyalty • Retention • Winback Placement (distribution)

10. Value Proposition: Benefits For Price“Your unique competitive advantages set for your Top Target against your top competition” Benefits Price

11. How to get there? Fundamental Marketing Process Overview • Business objectives • Business strategies Business Management • Core baseline applications: • Acquisition • Loyalty • Retention • Winback Marketing Product Promotion Marketing objectives Understand Market Consumers Competition Etc. Core marketing strategies Marketing Mix Price • Needs • Segments • Competitions • Offerings • Target Market • Value • Proposition • Positioning • 4 P’s • For each: • Objectives • Strategies • Tactics Placement (distribution)

12. Business Management • Business objectives • Business strategies • Marketing Objectives: • Acquisition • Loyalty • Retention • Winback Marketing Marketing Planning Framework: Focus on Promotion Promotion (IMC) Marketing objectives Understand Market Consumers Competition Etc. Core marketing strategies Marketing Mix • Advertising • Public Relations • Personal Selling • Direct Marketing • WOM Marketing • Sales Promotion Online Mobile Social Media • Needs • Wants • Demand • Target Market • Value • Proposition • Positioning • 4 P’s • For each: • Objectives • Strategies • Tactics Sales Promotion is a direct component of the Promotional Mix

13. Promotional elements vary with the stages of the consumer purchase decision process 18-13

14. So What is Sales Promotion?

15. WHAT IS SALES PROMOTION? • KEY FOCUS:Temporary boost of sales • KEY ROLE:A short-term incentive to purchase a product • KEY TIMING & MECHANISM: • Towards the end stages of the Consumer Buying Process (alternative comparison, purchase decision) • Alters directly Benefits/Price relationship(Value Proposition)

16. How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion?

17. How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion? B = V P

18. How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion? B = V P

19. How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion? B = V P

20. How could you alter the Benefits/Price relationship (Value Proposition) with Sales Promotion? B = V P

21. Value Proposition Alterationswith Sales Promotion – Illustration! Benefits Price

22. Value Proposition Alterationswith Sales Promotion – Illustration! Benefits Price For the same price

23. Value Proposition Alterationswith Sales Promotion – Illustration! Benefits Price For the same price • X

24. SALES PROMOTION JUSTIFICATIONS? • Acquire new customers • Obtain new product trial and adoption • Boost sales of mature brands • Increase Store traffic generation • Neutralize competitive promotional efforts • Etc.

25. 2 Key Sales Promotion Strategies Trade Promotion Consumer Promotion

26. Let’s be clear! Sales Promotion Objectives • Increase distribution outlets • Increase shelf space • Increase in-store presence • Expand selling season • Increase purchase frequency • Increase transaction size • Increase usage occasions • Generate trial

27. Sales Promotion Planning • Core baseline applications: • Acquisition • Loyalty • Retention • Winback • Marketing objectives • Marketing strategies Marketing Management • Target Market • Value Proposition • Positioning Temporary Purchase/ Sales Boost Consumer Promotion Sales Promotion Objectives Understand Target purchase behavior Sales Promotion Target Sales Promotion Desired Results Sales Promotion Mix • Coupons • Games • Discount • Bonus packs • Etc. • Price sensitivity • Brand loyalty • Etc. Trade Promotion • Free goods • Advertising allowance • Trade coupons • Etc.

28. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

29. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

30. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

31. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

32. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

33. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

34. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

35. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

36. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

37. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

38. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

39. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

40. Just to have an initial idea: Available Consumer Sales Promotion Techniques!

41. How big is Sales Promotion in the US?

42. How big is Sales Promotion in the US? • $288 Billionin spending in 2004 (*) • 46%(*) • 19%(*) • 33% to 70% of CPG’s (P&G, L’Oreal, etc.) marketing budget on trade promotion(**) (*) 2004 Promotion Marketing Association and PROMO Magazine (**) 2011 Comscore

43. Direct (Promotional) Channels continue to gain spending share

44. And all Direct Channels, subject to Sales Promotion integration, continue to grow!

45. Why such a growth? • Results focused • Quick • Measurable • “Easy & inexpensive”

46. Limitations? • Brand building support? • Deterioration of positive brand perceptions • Low volume or thin profitability • Short term bias

47. Sales Promotion is evolving! • Generating immediate sales • But also • Altering positively long-term brand value

48. Sales Promotion is evolving! Smart-Sign Tech by MS & Intel Coupons Apps Twitter & sweepstakes Online Coupons Finders

49. Sales Promotion is evolving!

50. So in conclusion! • Sales Promotion has its own planning • Sales Promotion is big • Quick & measurable BUT risky • Sales Promotion is evolving…Digital Marketing