Temporary ² if not the consumers would not believe it the next time Great Value Added ² they should find reason to buy now and more
Trends on Sales Promotion
¾ of the marketing budget is allocated to sales promotion In 1995, 51% of total adspend represents trade promotions. 24% on media spending 22% on consumer promotion Growth in the coupon segment is tremendous in aspirational markets
Americans redeem more than 7 billion coupons annually.
Why the Growth???
Instant results Faster implementation Measurable Relatively easy and inexpensive
The Downside of Sales Promotion
Brand Erosion Profitability increase is relatively low Implementation cost and problems Orients marketing managers towards short term results
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 relationship of a product / service perceived by the target
Generating immediate sales Altering long term brand value
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
Types of Buyers
Loyals
Buy a particular brand on a more or less consistent basis People who are loyal to the competing brand Purchase of various brands in one category
Competitive loyals
Switchers
Price buyers Non Users
Results that are needed «.
Loyals
Reinforce behavior Increase consumption Change buying timing Break loyalty Encourage brand switching Persuade to buy the ´rightµ brand more often Value added to make price less important Create awareness, create category worth
Competitive loyals
Switchers
Price
Non users
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
Coupons
Clip and bring to the store to exchange Now it is phone based Induce loyalty Repeat purchase Keeps the consumers ´lockedµ
Bonus Packs
Like bundle pricing but this is temporary Adds value
In Pack, On Pack Promotion
It is used to introduce new products / service Dispose of excess inventory Use excess overhead
Specialty Container
Increases product·s perceived value Uy tignan mo ito meron libreng pitchel
Continuity Program /Loyalty Cards
Refund / Rebate Promotion
If the product does not perform, then its money back Or consume X number of products and get Y FREE Increases consumer confidence Loyalty program
Sweepstakes
Chance game where the consumer has the chance to win something big through purchases The more purchases, the more tickets Creates loyalty
Sampling
Used when the consumer is unaware of the brand or product Product buying is prone to retail channel based trial Use when the product can be broken down into smaller dimensions
Price off promotion
Use for slow moving items Excess inventory Off season Dislodge competitors
Choose the right promotion for the right situation
Example
Problem
New product Consumers not loyal Competitors are attacking the market with ads Excess inventory Shelf life is critical
To induce immediate off take from the shelf To induce trial To buy more of your products To buy immediately
Trade Promotion
Encourages your trade channel to load up Move inventory from the company to the warehouse of the trade
Distributor or Key Accounts
Deals with promotional tools for staff and sales people who are involved with the trade.
Sell in (PUSH STRATEGY)
Trade Promotion based on
Volume ² buy a certain volume to attain a high discount Prompt Payment ² pay on time and get a discount Free goods ² using new products or slow moving products as promotional items
Volume Promotion
It motivates the dealer to buy more Example
10+1 promotion ² buy 10 boxes get one free Volume discounts Bundle promotion ² feature a new product as freebie
Advertising Promotion
Cooperative advertising
Coke and Julie·s Bakeshop Lock in to the outlet to exclusively sell your brand
Cooperative Promotion
CoCo-branding Using another brand to penetrate the market Good if the equity of the other brand is high or parallel
Co-branding
Can be a strategy or a promotion It increases margin Synergizes strength of two brands Increases profitability due to the higher value perception
Free Goods
Better profitability Moves higher volume Economies of scale
Trade Advertising
Advertisements used as a basis for booking sales Rationale is consumers will look for a brand that has ad support
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Massive advertising always leads to higher trade acceptance Trade will only stock items that will sell
Personal Selling
Direct Selling Distribution Selling Outlet Selling
Direct Sales
One of the recent trends in consumer marketing Direct hit to consumers Smaller ad spending
Direct sales
Uses human capital as resource Offering high earnings to those who do not have businesses Home based People get people strategy Very sound business model
How do they profit?
Gross Margin 40% 1st level Commission ² 10% 2nd level commission ² 8% 3rd Level commission ² 5% AT this point, the company still earns and yet the number of networks grow«.
Direct Sales
Meaningful to sales people The consumer saves money Answer to the crisis of power of retail channels
Distribution Selling
Sales efforts to cover geographic region Cover relevant distribution channels Example:
Bonheur Marketing
Bonheur Marketing
Former exclusive distributor of Marlboro and Philip Morris Covers outlets such as
Supermarkets Sari sari stores Sub distriutors Dealers Luzon wide
BiC became better when«
Distribution was assigned to FilStar ² an affiliate of National Bookstore That·s why BiC enjoys great retail presence in NBS
Public Relations
Advertising
Key things to remember
Creative brief Copy strategy Execution methods Media Media Planning Success tracking
Creative Brief
Brand elements Target segment Reason to buy Current behavior Current perception Desired impression
Copy Strategy
Tagline Plot Mood and Tone Reason to believe Execution Media Media Plan
Media Plan
Medium
Above the line Below the line 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
Media
Billboard ² of course they will stay Mall panels Comfort ads Transit ads Non traditional
Corporate gifts
Leaflets
Media Plan
Using each medium optimally to achieve brand objectives It is all about making the right mix or right allocation of budgets Hitting consumers where it matters most
Executions
Humor MTV Slice of life Celebrity endorser Testimonial Image model ² can be a competent looking person Performance test
Just make sure they do not«
Laugh and forget which brand is being advertised Remember the story in the ad and then forget about the brand Remember the song and then« ano nga palang brand yun?!
Things you should remember
Matrix or charts or altering SWOT with TOWS analysis (which by the way is not a marketing tool but a central management tool) DON·T BUY THE IDEA The basics still work ² and it will sans a few alterations IMC is integrating all communication materials under one big idea
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« some of them have issues as well« pick good mentors Don·t label anything ² good or bad Know thy Dharma ² know what you are here for
Remember
Detachment is a great tool Make yourself competent ² goal is not to be employed but employable Don·t make yourself stagnant ² even if your family or husband is rich Have FAITH
Remember
PR competence is as important as knowledge Be the best you can ever be (not Alipin Sagigigilid all your life)