Download sales_promotion_lesson_2_fall_12

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
Sales Promotion Planning
Core baseline applications:
• Acquisition
• Loyalty
• Retention
• Winback
Marketing
Management
• Marketing objectives
• Marketing strategies
•Target Market
•Value Proposition
•Positioning
Consumer
Promotion
Sales
Promotion
Objectives
Understand
Target
purchase
behavior
•Price sensitivity
•Brand loyalty
•Etc.
Sales
Promotion
Target
Sales
Promotion
Desired
Results
Sales
Promotion
Mix
•Coupons
•Games
•Discount
•Bonus packs
•Etc.
Trade
Promotion
•Free goods
•Advertising allowance
•Trade coupons
•Etc.
Temporary
Purchase/
Sales
Boost
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 Alignment
Acquisition
Loyalty
Retention
Winback
Core Marketing Objective:
Marketing Objectives
Core Target:
Prospects
Current customers
Past customers
Sales Promotion Objective(s):
Distribution outlets
Usage Occasions
Transaction Size
Shelf Space
Purchase Frequency
Trial
Selling Season
In-Store Presence
So what Sales Promotion Objective(s)?
Acquisition
Loyalty
Retention
Winback
Core Marketing Objective:
Marketing Objectives
Core Target:
Prospects
Current customers
Past customers
Sales Promotion Applications/Objective(s):
Distribution outlets
Usage Occasions
Transaction Size
Shelf Space
Purchase Frequency
Trial
Selling Season
In-Store Presence
So what Sales Promotion Objective(s)?
Acquisition
Loyalty
Retention
Winback
Core Marketing Objective:
Marketing Objectives
Core Target:
Prospects
Current customers
Past customers
Sales Promotion Applications/Objective(s):
Distribution outlets
Usage Occasions
Transaction Size
Shelf Space
Purchase Frequency
Trial
Selling Season
In-Store Presence
Sales Promotion Planning
Core baseline applications:
• Acquisition
• Loyalty
• Retention
• Winback
Marketing
Management
• Marketing objectives
• Marketing strategies
•Target Market
•Value Proposition
•Positioning
Consumer
Promotion
Sales
Promotion
Apps/
Objectives
Understand
Target
purchase
behavior
•Price sensitivity
•Brand loyalty
•Etc.
Sales
Promotion
Target
Sales
Promotion
Desired
Results
Sales
Promotion
Mix
•Coupons
•Games
•Discount
•Bonus packs
•Etc.
Trade
Promotion
•Free goods
•Advertising allowance
•Trade coupons
•Etc.
Temporary
Purchase/
Sales
Boost
Sales Promotion targeting methodology add-on
Acquisition
Loyalty
Retention
Winback
Core Marketing Objective:
Marketing Objectives
Core Target:
Prospects
Current customers
Past customers
SP objective:
Distribution
Shelf space
In-store
presence
Selling
season
Purchase
Frequency
SP Additional Segmentation Targeting:
Nonusers
Loyal users
Competitive
loyals
Switchers
Price buyers
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
So what SP target(s)?
Acquisition
Loyalty
Retention
Winback
Core Marketing Objective:
Marketing Objectives
Core Target:
Prospects
Current customers
Past customers
SP objective:
Distribution
Shelf space
In-store
presence
Selling
season
Purchase
Frequency
SP Additional Segmentation Targeting:
Nonusers
Loyal users
Competitive
loyals
Switchers
Price buyers
Transaction
Size
Occasions
Trials
So what SP target(s)?
Acquisition
Loyalty
Retention
Winback
Core Marketing Objective:
Marketing Objectives
Core Target:
Prospects
Current customers
Past customers
SP objective:
Distribution
Shelf space
In-store
presence
Selling
season
Purchase
Frequency
SP Additional Segmentation Targeting:
Nonusers
Loyal users
Competitive
loyals
Switchers
Price buyers
Transaction
Size
Occasions
Trials
So what SP target(s)?
Acquisition
Loyalty
Retention
Winback
Core Marketing Objective:
Marketing Objectives
Core Target:
Prospects
Current customers
Past customers
SP objective:
Distribution
Shelf space
In-store
presence
Selling
season
Purchase
Frequency
SP Additional Segmentation Targeting:
Nonusers
Loyal users
Competitive
loyals
Switchers
Price buyers
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