sales promotion planning sales promotion programs

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