Sales Promotion

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Sales Promotion

The wonders and the wounds

Promotion Mix / Communication Mix (PR)

Sales Promotion PR Selling Advertising

Below the line Above the line

Two Types of Sales Promotion

Consumer Promotion Trade Promotion

What do we want the consumers and trade to do?

Buy More Buy Now

A sales promotion should be

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


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



Price buyers Non Users

Results that are needed «.


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




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



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


Chance game where the consumer has the chance to win something big through purchases The more purchases, the more tickets Creates loyalty


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

New product Consumers not loyal Competitors are attacking the market with ads Excess inventory Shelf life is critical

Sampling, on pack promo Rebates, sweepstakes, loyalty cards Price off, free goods, premiums, rebates, etc

Consumer Promotion


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.


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


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


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


Above the line Below the line Front Back Seasonal Flat



TVC Print Radio Internet

CPM (clicks per million) Ad click Ad impressions Banner or button advertisement Click through Cost per click Spam URL


Billboard ² of course they will stay Mall panels Comfort ads Transit ads Non traditional

Corporate gifts


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


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



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


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


PR competence is as important as knowledge Be the best you can ever be (not Alipin Sagigigilid all your life)

Thank you for such a wonderful semester« really

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