Post on 29-Mar-2015
Sales Promotion
Planning Sales Promotion Programs
WHAT COURSE OBJECTIVES?
Course Objectives
Understanding of the marketing communications discipline of Sales Promotion
Develop models and processes for Sales Promotion as a key component of IMC
Understanding of difference between consumer promotion and trade promotion
Enhance presentation and writing skills with sales promotion plan development
Understand sales promotion tactics
MarketingManagement
• Marketing objectives• Marketing strategies
• Target Market• Value Proposition• Positioning
SalesPromotion
Target
Core baseline applications:• Acquisition• Loyalty• Retention• Winback
UnderstandTarget
purchasebehavior
SalesPromotion
DesiredResults
SalesPromotion
Mix
• Coupons• Games• Discount• Bonus packs• Etc.
ConsumerPromotion
TradePromotion
TemporaryPurchase/
SalesBoost
• Price sensitivity• Brand loyalty• Etc.
Sales Promotion Planning
• Free goods• Advertising allowance• Trade coupons• Etc.
SalesPromotionObjectives
• Increase distribution outlets• Increase shelf space• Increase in-store presence• Expand selling season• Increase purchase frequency• Increase transaction size• Increase usage occasions• Generate trial
Sales Promotion Objectives
Acquisition Loyalty Retention Winback
Sales Promotion Objectives Alignment
Core Target:
Prospects Current customers Past customers
Sales Promotion Objective(s):
Distribution outlets
Core Marketing Objective:
Marketing Objectives
Shelf Space
In-Store PresenceSelling Season
Purchase Frequency
Transaction SizeUsage Occasions
Trial
Acquisition Loyalty Retention Winback
So what Sales Promotion Objective(s)?
Core Target:
Prospects Current customers Past customers
Sales Promotion Applications/Objective(s):
Distribution outlets
Core Marketing Objective:
Marketing Objectives
Shelf Space
In-Store PresenceSelling Season
Purchase Frequency
Transaction SizeUsage Occasions
Trial
Acquisition Loyalty Retention Winback
So what Sales Promotion Objective(s)?
Core Target:
Prospects Current customers Past customers
Sales Promotion Applications/Objective(s):
Distribution outlets
Core Marketing Objective:
Marketing Objectives
Shelf Space
In-Store PresenceSelling Season
Purchase Frequency
Transaction SizeUsage Occasions
Trial
MarketingManagement
• Marketing objectives• Marketing strategies
• Target Market• Value Proposition• Positioning
SalesPromotion
Target
Core baseline applications:• Acquisition• Loyalty• Retention• Winback
UnderstandTarget
purchasebehavior
SalesPromotion
DesiredResults
SalesPromotion
Mix
• Coupons• Games• Discount• Bonus packs• Etc.
ConsumerPromotion
TradePromotion
TemporaryPurchase/
SalesBoost
• Price sensitivity• Brand loyalty• Etc.
Sales Promotion Planning
• Free goods• Advertising allowance• Trade coupons• Etc.
SalesPromotion
Apps/Objectives
Acquisition Loyalty Retention Winback
Sales Promotion targeting methodology add-on
Core Target:
Prospects Current customers Past customers
SP Additional Segmentation Targeting:
Competitiveloyals
Loyal users
Switchers
Price buyers
Nonusers
Core Marketing Objective:
Marketing Objectives
SP objective:Distribution Shelf space In-store
presenceSelling season
PurchaseFrequency
Transaction Size
Occasions Trials
Loyal Users• Profile and Characteristics:• People who buy a particular brand on a
more or less consistent basis
• Desired Results/Behavior Changes:• Reinforce existing behavior• Increase usage
• Extra large• Cross selling
• Value Proposition Alteration-core focus:• Benefits or Price?
Loyal Users• Profile and Characteristics:• People who buy a particular brand on a
more or less consistent basis
• Desired Results/Behavior Changes:• Reinforce existing behavior• Increase usage
• Extra large• Cross selling
• Value Proposition Alteration-core focus:• Benefits or Price?
Competitive Loyals• Profile and Characteristics:• People who buy the product category and
usually buy a competitor’s brand• Intense Loyals• Value Buyers• Habit-bound Buyers
• Desired Results/Behavior Changes:• Break loyalty & make them switch to your
product
• Value Proposition Alteration-core focus:• Benefits or Price?
Competitive Loyals• Profile and Characteristics:• People who buy the product category and
usually buy a competitor’s brand• Intense Loyals• Value Buyers• Habit-bound Buyers
• Desired Results/Behavior Changes:• Break loyalty & make them switch to your
product
• Value Proposition Alteration-core focus:• Benefits or Price?
Switchers• Profile and Characteristics:
• People who purchase a variety of brands within a product category
• Types of switchers:• Availability Switchers• Value Switchers• Occasions-Based Switchers• Variety-Based Switchers
• Desired Results/Behavior Changes:• Persuade them to “Switch” to your product
more often AND Stay with your brand
• Value Proposition Alteration-core focus:• Benefits or Price?
Switchers• Profile and Characteristics:
• People who purchase a variety of brands within a product category
• Types of switchers:• Availability Switchers• Value Switchers• Occasions-Based Switchers• Variety-Based Switchers
• Desired Results/Behavior Changes:• Persuade them to “Switch” to your product
more often AND Stay with your brand
• Value Proposition Alteration-core focus:• Benefits or Price?
Price Buyers
• Profile and Characteristics:• People who purchase solely on the basis of price• Often heavy users of a category
• Desired Results/Behavior Changes:• Match their value requirements to make them
stay with your product…profitably
• Value Proposition Alteration-core focus:• Benefits or Price?
Price Buyers
• Profile and Characteristics:• People who purchase solely on the basis of price• Often heavy users of a category
• Desired Results/Behavior Changes:• Match their value requirements to make them
stay with your product…profitably
• Value Proposition Alteration-core focus:• Benefits or Price?
Nonusers• Profile and Characteristics:
• People who do not use any product in a particular category
• Desired Results/Behavior Changes:• Make them move to your product category
(and by doing so to your brand)
• Reasons for non-users:• Price: Too expensive• Value: Not worth• No need
NOT GOOD FOR SALES PROMOTION
Acquisition Loyalty Retention Winback
So what SP target(s)?
Core Target:
Prospects Current customers Past customers
SP Additional Segmentation Targeting:
Competitiveloyals
Loyal users
Switchers
Price buyers
Nonusers
Core Marketing Objective:
Marketing Objectives
SP objective:Distribution Shelf space In-store
presenceSelling season
PurchaseFrequency
Transaction Size
Occasions Trials
Acquisition Loyalty Retention Winback
So what SP target(s)?
Core Target:
Prospects Current customers Past customers
SP Additional Segmentation Targeting:
Competitiveloyals
Loyal users
Switchers
Price buyers
Nonusers
Core Marketing Objective:
Marketing Objectives
SP objective:Distribution Shelf space In-store
presenceSelling season
PurchaseFrequency
Transaction Size
Occasions Trials
Acquisition Loyalty Retention Winback
So what SP target(s)?
Core Target:
Prospects Current customers Past customers
SP Additional Segmentation Targeting:
Competitiveloyals
Loyal users
Switchers
Price buyers
Nonusers
Core Marketing Objective:
Marketing Objectives
SP objective:Distribution Shelf space In-store
presenceSelling season
PurchaseFrequency
Transaction Size
Occasions Trials
In Summary
• Augment the Core segmentation and targeting with Sales Promotion Segmentation for usable Sales Promotion target
• “Extract” the core behavior at the purchase stage for that target, to appropriately “act” upon it:– Right Sales Promotion Objectives– Right Sales Promotion Desired Results– Right Sales Promotion Techniques/Tools