4 Planning and Implementing the Sales Promotion

7/28/2019 4 Planning and Implementing the Sales Promotion

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IMPLEMENTING THE SALES

PROMOTIONThe various promotion choices lying with the resellers can

be

consumer promotion. trade promotion.

sales force promotion.

Promotions can broadly be classified as

immediate value offers VS delayed value offers .

Price cut VS extra value offers.


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CONTINUE

Product choice. Choice of market areas.

Promotion timing, Duration and frequency.

Rate of discount, terms and conditions.

Protection from competition (behave as prisoners

dilemma case states, another approach is to develop some

lengthy time oriented and complex sales promotion

technique which cannot be copied in hurry, encourage tie-in promotion to again discourage copying) .


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CONTINUE

Sales promotion planning guidelines

Consult the sales promotion planning process given on

page no 547 to understand the various steps required for

the proper planning.

Situational analysis- It includes the following

Product or brand performance analysis, major activities of

competitors, distribution situation and consumer behavior

relating to sales promotion, political/legal factorsconcerning sales promotion. This whole situational

analysis reveals possible opportunities and problems that

the firm will like to address.


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CONTINUEBased on the situational analysis and the respectivemarketing strategies and marketing objectives

evaluations, the promotion objectives are decided.The promotion objectives are developed and shouldbe put in writing along with the evaluation criteria.

Set the unambiguous and measurable objectivessuch as by stating the desired sales volume ,marketshare, profitability, product trial among non users, orinventory clearing.

The sales promotion objectives are always decidedin view with the advertising and other promotionaltools.


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CONTINUE

The next step after the promotion objective

The budget allocation for the sales promotion activity

from the total budget allocated to sales promotion and

advertising.The promotion plans generally for most companies

takes about one year, but it is not fixed and it can vary

from two to three years.

After the budget allocation the next step is to decide a

sales promotion design. As discussed earlier around

six steps are required to design the sales promotion.


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CONTINUE The Sales promotion design

The various steps for designing sales promotion as

discussed earlier can be summarized below as1. Promotion choice-Trade promotion, consumer

promotion or sales force promotion. Same for lesstype or more for the same type, immediate value

provider or delayed value provider etc.2. Product choice.

3. choices of market areas.

4. Promotion timing, duration and frequency.5. Rate of discounts, terms and conditions.

6. protection from competitor.


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CONTINUECharacteristics of successful sales promotion

Maximum effect at minimum cost.

Motivates consumers to buy now(develops a sense

of urgency).

offers what the consumers want.

The promotion should be clear and uncomplicated. promotion should be highly visible.

promotion should benefit the all concerned.

promotion should be believable and honest. Promotion must be legal.

promotion must be implemented efficiently.


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CONTINUESales promotion evaluationThe sales evaluation program varies with the various

objectives taken before the selection of sales tools.The various objectives and their corresponding promotion toolscan be summarized as below( Table 25.1).

Increase market share among brand switchers or increasesales-coupons in print media, retail promotion, sweepstakes

and contests etc. increase repeat purchase-continuity promotions, in-packcoupons.

increase trial among non users-free samples, trial packs,cross couponing.

increase category consumption-multiple pack promotions,coupons.

liquidate excess inventories-various trade deals.


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EVALUATION

The various methods used for the sales evaluation canbe summarized as below

1. Pre-testing- The pretest can be conducted with the

help of focus groups and consumer panels. The other

techniques that can be used to achieve this targetconsists of ballot method, Portfolio test, jury method

and mal intercept.

The same pretesting can also be applied on the

resellers by simply visiting and getting their views onthe sales promotion tool.


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CONTINUE2. Concurrent testing- The testing program runs parallel

with the sales promotion activities and if found some

types of discrepancies then a proper modification can beapplied.

These are effective in the cases of sales contests and

sweepstakes in which customers are not required to buy

any product of the company and thus the number of

entries can be measured and according to the

requirement the dates of contests can be extended

further or can be stopped on last date.

In case of coupons, the number of coupons redeemed

can be analyzed to measure the effectiveness and

modifications can be introduced simultaneously.


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CONTINUE3. Post-testing- It is done to analyze the effect of the

sales promotion after the period of promotion is over.The post testing is done to get the responses overchange in customer awareness and attitude.

The responses of the customers can be obtained by

mailing questionaire,telephone calls or by arrangingpersonal interviews etc.

To measure the effect of promotions on the salescompare the pre-promotion sales figure with the post-

promotion sales figures and also assess the sales figureafter the one month of promotion closing dates. Consultfigure 25.2 to study the effect). Also consult theillustration on sales promotion).

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4 Planning and Implementing the Sales Promotion