Sales promotions (MC, unit 2)

short-term tactical measures to add value to a product in order to induce immediate sales objectives

Aims:

• increase brand & product awareness
  
• increase trial & adoption of nwe & existing
• increase brand usage
• increase customer loyalty
  
• encourage switching
• level fluctuations
• encourage upselling

Benefits
- so common, part of consumer DMP
- effectiveness is easily measured (coupon, competition entries)

Techniques: money-off vouchers, BOGOF, customer loyalty schemes, Twin packs, Bulk buying, discounts, try befor eyou buy, cash rebates, trial sizes, prize draws, competition codes, POS displays

Trade promotions
- attempt to achieve penetration - getting orgs to take more stock as commitment to < style="font-weight: bold;">Examples: discounts, volume allowances, sale or return (reduces risk), free merchandise, selling & marketing assistance (cooperative advertising, product training), sales contests, bonuses

Sales promotions (retailer to consumer & manufacturer to consumer)
Objectives

• inc. in-store trade & customer traffic - coupons & vouchers
• increase frequency or purchase - discounts for next purchase
• increase loyalty - storecards & reward systems
• increase own-brand sales - trial packs, demonstrations
• consistent demand - periodical promos to reduce fluctuation
  

Planning

1. identify target market
2. sales promotion objectives v. budget appropriation
3. est. cost of communication for campaign & fulfilment cost (postage, free gifts)
4. implementation - run in parallel with advertising, consider timescales (drip & burst)