sales promotion planning sales promotion programs

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Sales Promotion Planning Sales Promotion Programs

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Page 1: Sales Promotion Planning Sales Promotion Programs

Sales Promotion

Planning Sales Promotion Programs

Page 2: 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

Page 3: Sales Promotion Planning Sales Promotion Programs

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

Page 4: Sales Promotion Planning Sales Promotion Programs

• 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

Page 5: Sales Promotion Planning Sales Promotion Programs

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

Page 6: Sales Promotion Planning Sales Promotion Programs

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

Page 7: Sales Promotion Planning Sales Promotion Programs

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

Page 8: Sales Promotion Planning Sales Promotion Programs

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

Page 9: Sales Promotion Planning Sales Promotion Programs

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

Page 10: Sales Promotion Planning Sales Promotion Programs

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?

Page 11: Sales Promotion Planning Sales Promotion Programs

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?

Page 12: Sales Promotion Planning Sales Promotion Programs

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?

Page 13: Sales Promotion Planning Sales Promotion Programs

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?

Page 14: Sales Promotion Planning Sales Promotion Programs

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?

Page 15: Sales Promotion Planning Sales Promotion Programs

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?

Page 16: Sales Promotion Planning Sales Promotion Programs

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?

Page 17: Sales Promotion Planning Sales Promotion Programs

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?

Page 18: Sales Promotion Planning Sales Promotion Programs

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

Page 19: Sales Promotion Planning Sales Promotion Programs

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

Page 20: Sales Promotion Planning Sales Promotion Programs

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

Page 21: Sales Promotion Planning Sales Promotion Programs

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

Page 22: Sales Promotion Planning Sales Promotion Programs

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