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7/31/2019 Sales Promotion.pptx
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Sales Promotion
The wonders and the wounds
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Promotion Mix /
Communication Mix (PR) Sales Promotion
PR Selling
Advertising
Below the line Above the line
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Three Types of Sales Promotion Consumer Promotion
Trade Promotion Sales Force Promotion
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What do we want the
consumers and trade to do? Buy More
Buy Now
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A sales promotion should
be Temporaryif not the consumers
would not believe it the next time
Great Value Addedthey shouldfind reason to buy now and more
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Trends on Sales Promotion of the marketing budget is allocated
to sales promotion
In 1995, 51% of total adspend representstrade promotions. 24% on media
spending 22% on consumer promotion
Growth in the coupon segment istremendous in aspirational markets
Americans redeem more than 7 billioncoupons annually.
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Why the Growth??? Instant results
Faster implementation
Measurable
Relatively easy and inexpensive
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The Downside of Sales
Promotion Brand Erosion
Profitability increase is relatively low
Implementation cost and problems
Orients marketing managers
towards short term results
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What a sales promotion
should be. Lets go back to the basics
Should hit the consumer at a particular
behavioral stage Are marketing communication activities
that change the price/value relationshipof a product / service perceived by the
target Generating immediate sales
Altering long term brand value
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Planning Sales Promotion Who is our target set of consumers?
What is the reason for that behavior
What is the goal of the program
Is there a meaningful economics
attached to sales promotion
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Types of Buyers Loyals
Buy a particular brand on a more or less
consistent basis Competitive loyals
People who are loyal to the competingbrand
Switchers Purchase of various brands in one category
Price buyers
Non Users
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Results that are needed . Loyals
Reinforce behavior
Increase consumption
Change buying timing
Competitive loyals Break loyalty
Encourage brand switching
Switchers
Persuade to buy the right brand more often Price
Value added to make price less important
Non users Create awareness, create category worth
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Types of Sales Promotions Coupon
Bonus Packs
In pack, On pack, and Near Pack
Specialty container Continuity program
Refund
Sweepstakes
Contest
Through the mail Premium
Sampling
Price off
Trade deal
Cause related promotion
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Coupons Clip and bring to
the store to
exchange Now it is phone
based
Induce loyalty
Repeat purchase Keeps the
consumerslocked
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Bonus Packs Like bundle pricing
but this is
temporary Adds value
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In Pack, On Pack Promotion
It is used tointroduce
new products/ service
Dispose of
excess
inventory
Use excessoverhead
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Specialty Container Increases
products
perceived value
Uy tignan mo itomeron libreng
pitchel
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Continuity Program /Loyalty
Cards
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Refund / Rebate Promotion If the product does
not perform, thenits money back
Or consume Xnumber ofproducts and get YFREE
Increasesconsumerconfidence
Loyalty program
http://30daychallenge.purinaone.com.au/registration/register.aspx7/31/2019 Sales Promotion.pptx
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Sweepstakes Chance game
where theconsumer hasthe chance towin somethingbig throughpurchases
The morepurchases, themore tickets
Creates loyalty
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Sampling Used when the
consumer isunaware of the
brand or product Product buying is
prone to retailchannel basedtrial
Use when theproduct can bebroken down intosmaller
dimensions
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Price off promotion Use for slow
moving items
Excessinventory
Off season
Dislodgecompetitors
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Choose the right promotion
for the right situation
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ExampleProblem Solution
New product Sampling, on pack promo
Consumers not loyal Rebates, sweepstakes, loyaltycards
Competitors are attackingthe market with ads
Price off, free goods,premiums, rebates, etc
Excess inventory
Shelf life is critical
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Consumer Promotion To induce immediate off take from
the shelf
To induce trial
To buy more of your products
To buy immediately
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Trade Promotion Encourages your trade channel to
load up
Move inventory from the companyto the warehouse of the trade Distributor or Key Accounts
Deals with promotional tools for staffand sales people who are involvedwith the trade.
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Sell in (PUSH STRATEGY) Trade Promotion based on
Volumebuy a certain volume to
attain a high discount
Prompt Paymentpay on time andget a discount
Free goodsusing new products orslow moving products as promotionalitems
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Volume Promotion It motivates the dealer to buy more
Example
10+1 promotionbuy 10 boxes get
one free
Volume discounts
Bundle promotionfeature a newproduct as freebie
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Advertising Promotion Cooperative advertising
Coke and Julies Bakeshop
Lock in to the outlet to exclusively sell
your brand
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Cooperative Promotion Co-branding
Using another
brand topenetrate the
market
Good if the equity
of the other brand
is high or parallel
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Co-branding Can be a strategy
or a promotion
It increases margin Synergizes strength
of two brands
Increases
profitability due tothe higher valueperception
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Free Goods Better
profitability
Moves highervolume
Economies of
scale
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Trade Advertising Advertisements used as a basis for
booking sales
Rationale is consumers will look for abrand that has ad support
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Massive advertising always leads
to higher trade acceptance
Trade will only stock items that will
sell
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Personal Selling
Direct Selling
Distribution SellingOutlet Selling
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Direct Sales One of the recent
trends in consumer
marketing
Direct hit to consumers
Smaller ad spending
http://www.fqpi.biz/firstquadrant/products2.htmlhttp://www.fqpi.biz/firstquadrant/products2.html7/31/2019 Sales Promotion.pptx
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Direct sales Uses human capital as resource
Offering high earnings to those whodo not have businesses
Home based
People get people strategy
Very sound business model
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How do they profit? Gross Margin 40%
1st level Commission10%
2nd level commission8%
3rd Level commission5%
AT this point, the company still earnsand yet the number of networksgrow.
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Direct Sales Meaningful to sales people
The consumer saves money
Answer to the crisis of power ofretail channels
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Distribution Selling Sales efforts to cover geographic
region
Cover relevant distribution channels
Example:
Bonheur Marketing
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Bonheur Marketing Former exclusive distributor of
Marlboro and Philip Morris
Covers outlets such as Supermarkets
Sari sari stores
Sub distriutors Dealers
Luzon wide
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BiC became better when Distribution was assigned to FilStar
an affiliate of National Bookstore
Thats why BiC enjoys great retailpresence in NBS
http://images.google.com.ph/imgres?imgurl=http://www.bicworld.com/img/intro_biclogo.gif&imgrefurl=http://www.bicworld.com/&h=400&w=400&sz=8&hl=tl&start=8&tbnid=fyh0rO6w3y85GM:&tbnh=124&tbnw=124&prev=/images?q=BiC&svnum=10&hl=tl&lr=7/31/2019 Sales Promotion.pptx
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Public Relations
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Advertising
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Key things to remember Creative brief
Copy strategy
Execution methods
Media
Media Planning Success tracking
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Creative Brief Brand elements
Target segment
Reason to buy
Current behavior
Current perception Desired impression
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Copy Strategy Tagline
Plot
Mood and Tone
Reason to believe
Execution Media
Media Plan
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Media Plan Medium
Above the line
Below the line Loading
Front
Back Seasonal
Flat
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Media TVC Print Radio Internet
CPM (clicks per million) Ad click Ad impressions Banner or button advertisement
Click through Cost per click Spam URL
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Media Billboardof course they will stay
Mall panels
Comfort ads
Transit ads
Non traditional Corporate gifts
Leaflets
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Media Plan Using each medium optimally to
achieve brand objectives
It is all about making the right mix orright allocation of budgets
Hitting consumers where it matters
most
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Executions Humor
MTV
Slice of life
Celebrity endorser
Testimonial
Image modelcan be a competentlooking person
Performance test
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Just make sure they do not Laugh and forget which brand is
being advertised
Remember the story in the ad andthen forget about the brand
Remember the song and then
ano nga palang brand yun?!
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Things you should remember Matrix or charts or altering SWOT with
TOWS analysis (which by the way is not a
marketing tool but a centralmanagement tool) DONT BUY THE IDEA
The basics still workand it will sans a
few alterations
IMC is integrating all communication
materials under one big idea
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Remember Life is a journey of learning The moment you get cocky is the time
you die
Mistakes are best teachers
Do not believe all teachers too someof them have issues as well pick goodmentors
Dont label anything good or bad Know thy Dharmaknow what you are
here for
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Remember Detachment is a great tool
Make yourself competentgoal is
not to be employed butemployable
Dont make yourself stagnant
even if your family or husband is rich
Have FAITH
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Remember PR competence is as important as
knowledge
Be the best you can ever be (notAlipin Sagigigilid all your life)
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Thank you for such awonderful semester really