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

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

AcquisitionLoyaltyRetentionWinback Sales Promotion Objectives Alignment Core Target: ProspectsCurrent customersPast customers Sales Promotion Objective(s): Distribution outlets Core Marketing Objective: Marketing Objectives Shelf Space In-Store PresenceSelling Season Purchase Frequency Transaction SizeUsage Occasions Trial

AcquisitionLoyaltyRetentionWinback So what Sales Promotion Objective(s)? Core Target: ProspectsCurrent customersPast 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

AcquisitionLoyaltyRetentionWinback So what Sales Promotion Objective(s)? Core Target: ProspectsCurrent customersPast 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

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

AcquisitionLoyaltyRetentionWinback Sales Promotion targeting methodology add-on Core Target: ProspectsCurrent customers Past customers SP Additional Segmentation Targeting: Competitive loyals Loyal users Switchers Price buyers Nonusers Core Marketing Objective: Marketing Objectives SP objective: Distribution Shelf spaceIn-store presence Selling season Purchase Frequency Transaction Size OccasionsTrials

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 competitors 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 competitors 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

AcquisitionLoyaltyRetentionWinback So what SP target(s)? Core Target: ProspectsCurrent customers Past customers SP Additional Segmentation Targeting: Competitive loyals Loyal users Switchers Price buyers Nonusers Core Marketing Objective: Marketing Objectives SP objective: Distribution Shelf spaceIn-store presence Selling season Purchase Frequency Transaction Size OccasionsTrials

AcquisitionLoyaltyRetentionWinback So what SP target(s)? Core Target: ProspectsCurrent customers Past customers SP Additional Segmentation Targeting: Competitive loyals Loyal users Switchers Price buyers Nonusers Core Marketing Objective: Marketing Objectives SP objective: Distribution Shelf spaceIn-store presence Selling season Purchase Frequency Transaction Size OccasionsTrials

AcquisitionLoyaltyRetentionWinback So what SP target(s)? Core Target: ProspectsCurrent customers Past customers SP Additional Segmentation Targeting: Competitive loyals Loyal users Switchers Price buyers Nonusers Core Marketing Objective: Marketing Objectives SP objective: Distribution Shelf spaceIn-store presence Selling season Purchase Frequency Transaction Size OccasionsTrials

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