When you consider the primary goals of advertising – awareness, comprehension, conviction and action- the primary goal of sales promotion is to focus on one specific area – action Such a relationship suggests that integration of advertising strategies and promotional strategies is essential, and, on a larger scale, that their integration with online communications, events and sponsorships, and public relations is what promotes a brand or company with a sense of continuity Sales promotion planning involves developing a plan of action for communicating incentives to the appropriate target markets at the right time Often, an external company that specializes in sales promotion will assume responsibility for developing and implementing the consumer promotion plan A sales promotion brief typically includes some or all of the following Market Profile: an overview of sales and market share trends provides market perspective to the promotion planners (knowing is the brand is a leader, challenger or follower) Competitor Activity Profile: what marketing communications strategies do key competitors rely upon? The role of the various elements of the mix will vary from one brand to another. What brands dominate the market, and what are their mixes? – a review of competitors’ recent sales promotion activities is essential Target Market Profile: customers are described according to demographic, psychographic, geographic and behavioural characteristics. Additional information about shopping behaviour usually plays a role in developing a sales promotion plan Sales Promotion Objectives: a variety of background factors will determine the objectives of the promotion campaign. Sales promotion plans focus on three distinct objectives: Generating trial purchases Encouraging repeat or multiple purchases Building long-term brand loyalty Objectives for trade promotion plans concentrate on building sales and achieving merchandising support Budget: funds for the sales promotion plan come from the overall marketing budget. Knowing the size of the budget is crucial when the promotion agency is thinking about potential concepts Sales Promotion Plan
Sales promotion plan: an action plan for communicating incentives to appropriate target markets at the right time Objectives are clearly defined, strategies are justified, and tactical details are precisely documented Content of a Sales Promotion Plan: Situation Analysis o Market profile o Competitor activity profile o Target market profile Budget o Funds available Sales promotion objectives Sales promotion strategy o Incentive or offer (save, win or reward) o Merchandise, cash or combination o Balance between consumer and trade Advertising Strategy o Broadcast o Print o In-store o Digital o Social Sales promotion execution o Details of consumer offer o Details of trade offer Logistics and fulfillment o Back-end plan to administer and implement the promotion Budget and timing o Activity costs o Calendar of events Sales Promotion Objectives
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- Fall '13