hogeschool van amsterdam interactieve media effective sales promotion hoorcollege marketing...

21
Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Upload: gannon-boas

Post on 31-Mar-2015

217 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Effective sales promotion

Hoorcollege marketing communication blok 4 week 5

Page 2: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Learning goals

By the end of the college and you should: Be in a position to define sales promotion Be aware of the factors that have led to a growth in sales

promotion as a tool Understand what above the line and below the line

communications are Understand how sales promotion can be integrated into a

communications campaign Be aware of the traditional and interactive media tools

available to develop sales promotions Be able to use the appropriate tools to develop a sales

promotion for a campaign (such as the eBay campaign)

Page 3: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Agenda

What is sales promotion?

Stages in developing a sales promotion

Objectives of sales promotion

Different targets for sales promotion activities

Tools of sales promotion

Interactive media and sales promotion

Page 4: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

What is sales promotion?

Sales promotions are short-term incentives (above the basic product benefits) aimed at encouraging purchase or sales

Source: Kotler, P., (2005) Principles of Marketing 4th European Edition, Harlow: Pearson Education Ltd, p. 785

There are issues with this definition Over emphasizes “incentives”

Sales promotions also include product literature, merchandising, point of sale (POS) materials

It is not clear who these incentives are aimed at?

Page 5: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Definition of sales promotion

All below the line communication activities designed to encourage

Sales staff to push

and/or Intermediaries to purchase

and/or End customers to purchase

a product or service by affecting their perceived value of the product in a positive manner

Page 6: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Below the line?

Page 7: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

The growth of sales promotion

Ratio of advertising to sales promotion spend

60%

30%

40%

70%

1991

1997

Advertising Sales promotion

Estimates from Pickton, D. & Broderick, A. (2005). Integrated Marketing Communications 2nd edition, Harlow: Pearson Education Ltd, p. 636

Page 8: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Reasons for growth

*Advertising when combined with sales promotion has 2 to 7 times the sales effect as advertising alone Source: Roberts, A. (1996), ‘What do we know about advertisings short-term effects?’, Admap, February, pp. 42-45

Page 9: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Stages in developing a sales promotion

Page 10: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Targets of sales promotion

Page 11: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Sales promotion objectives

Page 12: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

End customer sales promotion objectives

Page 13: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Intermediary sales promotion objectives

Page 14: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Sales force promotion objectives

Page 15: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Tools of sales promotion

Page 16: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Customer sales promotion tools

Samples

Coupons

Cash-refunds / rebates (aka cash-back)

Price packs

Bulk discount / 12 halen, 11 betalen (BOGOF)

Premium items

Give aways

User gets user rewards

Usage rewards

Point of Purchase / Sale (POP / POS) actions & materials

Competitions / lotteries etc.

Brochures

Page 17: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Intermediary sales promotion tools

Discounts

Allowances Reductions for damaged / old goods Advertising costs Free goods for bulk purchases

Push incentives Sales force incentives Advertising support Support for retail environment

Support POS materials / brochures Preference on new product launches Invoicing and logistics Service support Accredited dealer status

Page 18: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Sales force sales promotion tools

Bonus

Prizes

Promotions

POS materials / brochures

Creativity is key here

Page 19: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Interactive media and sales promotion

Interactive media is an interesting new channel for sales promotion Customer focused

Coupons Virtual trial Competitions Product information Cash back administration

Intermediary focused Product information Virtual trial Joint promotion activites

Page 20: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Fulfilment is the key to a successful sales promotion

A sales promotion that is not thought through is very risky Can cost more than it brings in Can leave unhappy customers / dealers / sales people

When developing a sales promotion you must always think how it be fulfilled

Page 21: Hogeschool van Amsterdam Interactieve Media Effective sales promotion Hoorcollege marketing communication blok 4 week 5

Hogeschool van Amsterdam Interactieve Media

Summary

There is more to sales promotion than just give-aways

Sales promotion is strong at converting desire into action

A successful sales promotion must be thought through Fulfilment is key