This presentation shows why Ad Specialties can be an inexpensive an effective way to advertise and help brand your company.
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1. Sales Promotions Defined Whats the difference between
Advertising and Sales Promotion? D.A.Novak & Text of the GNU
Free Documentation License 1
2. Sales Promotion Successful sales promotions increase
interest in your products and spur revenue growth. Whether you
offer consumer products or services, properly positioned sales
promotion is an integral component to your overall marketing plan.
The best ideas for sales promotion expand the reach of your
products and lead customers to choose your products over your
competitors. Ideas for Sales Promotion By Laura Acevedo, eHow
Contributor 2
3. Sales Promotion Defined Sales Promotion: The use of a value
added offer or incentive for the purpose of influencing or moving
the buying cycle forward. Advertising changes minds Promotion
changes behavior D.A.Novak & Text of the GNU Free Documentation
License 3
4. Advertising vs. Sales Promotion Sales Promotion Advertising
Creates perception, builds brand image Creates concept =
communication of idea or image. Longer term. Measurement- Awareness
and attitudes Creates sales or consumer response, builds desire and
stimulates action. Creative concept-the proposition or offer that
gets the consumer to act. Shorter term. Measurement: sales and
responses. D.A.Novak & Text of the GNU Free Documentation
License 4
5. What Can Sales Promotion Do? Sales Promotions Can Stimulate
Trial Build Traffic Build purchase frequency Build customer
loyalty. Encourage stocking-up. Reinforce advertising. Reinforce
brand image Generate trade support Motivate salespeople Sales
Promotion Cannot Change negative perceptions about a product. Turn
a product around when it is in decline. Create a brand image.
D.A.Novak & Text of the GNU Free Documentation License 5
6. Setting Objectives 1. They must be clear and concise. 2.
They need to indicate what you want to achieve quantitatively,
qualitatively and in what time frame. 3. The need to define exact
action. Example: Increase the number of active travel agents 10% by
end of fiscal year. Achieve 70% renewal rate on two-year membership
in first solicitation. D.A.Novak & Text of the GNU Free
Documentation License 6
7. Who Is Your Target Market? CONSUMER? TRADE? SALESFORCE?
D.A.Novak & Text of the GNU Free Documentation License 7
8. Six Promotions Strategies Objectives and market dictate
strategy: 1. Trial-Introducing a new product. 2. Loading-Increasing
volume (stocking up). 3. Continuity-Building Repeat purchases. 4.
Usage-Encouraging new and frequent use. 5. Image-Reinforcing brand
image/perception and enhancing advertising. 6. Traffic-Encouraging
store promotions, events, website, or trade show exhibit. D.A.Novak
& Text of the GNU Free Documentation License 8
9. Sales Promotion Media. Coupons Clubs and frequency rewards
Bonus & value packs Premiums Incentives and spiffs Stamps and
continuity offers Rebates and refunds Sampling and demos P.O.P.
& P.O.S. displays Advertising specialties and business gifts
Sports events Charity events D.A.Novak & Text of the GNU Free
Documentation License 9
10. Sales Promotion Techniques Trade sales promotion techniques
Price deal: A temporary reduction in the price, such as happy hour
Loyal Reward Program: Consumers collect points, miles, or credits
for purchases and redeem them for rewards. Two famous examples are
Pepsi Stuff and AAdvantage. Cents-off deal: Offers a brand at a
lower price. Price reduction may be a percentage marked on the
package. Price-pack deal: The packaging offers a consumer a certain
percentage more of the product for the same price (for example, 25
percent extra). Coupons: coupons have become a standard mechanism
for sales promotions. Loss leader: the price of a popular product
is temporarily reduced in order to stimulate other profitable sales
Free-standing insert (FSI): A coupon booklet is inserted into the
local newspaper for delivery. On-shelf couponing: Coupons are
present at the shelf where the product is available. Checkout
dispensers: On checkout the customer is given a coupon based on
products purchased. On-line couponing: Coupons are available on
line. Consumers print them out and take them to the store. Mobile
couponing: Coupons are available on a mobile phone. Consumers show
the offer on a mobile phone to a salesperson for redemption. Online
interactive promotion game: Consumers play an interactive game
associated with the promoted product. See an example of the
Interactive Internet Ad for tomato ketchup. D.A.Novak & Text of
the GNU Free Documentation License 10
11. Sales Promotion Techniques Rebates: Consumers are offered
money back if the receipt and barcode are mailed to the producer.
Contests/sweepstakes/games: The consumer is automatically entered
into the event by purchasing the product. Point-of-sale displays:
Aisle interrupter: A sign that juts into the aisle from the shelf.
Dangler: A sign that sways when a consumer walks by it. Dump bin: A
bin full of products dumped inside. Glorifier: A small stage that
elevates a product above other products. Wobbler: A sign that
jiggles. Lipstick Board: A board on which messages are written in
crayon. Necker: A coupon placed on the 'neck' of a bottle. YES
unit: "your extra salesperson" is a pull-out fact sheet. D.A.Novak
& Text of the GNU Free Documentation License 11
12. Core Elements of a Sales Promotion Creative concept (the
offer) The idea or proposition that gets the consumer or trade to
act (strategy) The media or system for communicating the offer.
Newspaper, TV, direct mail, FSI, in-store promo., displays, web,
e-mail, and ad specialties. , on-pack, and salespeople. Note: The
fulfillment or distribution of the reward promised in the offer is
extremely important and reflects directly on the company. D.A.Novak
& Text of the GNU Free Documentation License 12
13. Advertising and Sales Promotion Based upon studies by Dr.
Walter Dill Scott, Northwestern University. Within 24 hours, 25 out
of 100 people forget impressions. Within 2 days, more than 50% have
forgotten the impression. Within 4 days, more than 75% have
forgotten the ad. D.A.Novak & Text of the GNU Free
Documentation License 13
14. Sales Promotion Political Issues Political issues Sales
promotions have traditionally been heavily regulated in many
advanced industrial nations, with the notable exception of the
United States. For example, the United Kingdom formerly operated
under a resale price maintenance regime in which manufacturers
could legally dictate the minimum resale price for virtually all
goods; this practice was abolished in 1964.[1] Most European
countries also have controls on the scheduling and permissible
types of sales promotions, as they are regarded in those countries
as bordering upon unfair business practices. Germany is notorious
for having the most strict regulations. Famous examples include the
car wash that was barred from giving free car washes to regular
customers and a baker who could not give a free cloth bag to
customers who bought more than 10 rolls.[2] D.A.Novak & Text of
the GNU Free Documentation License 14
15. Sales Promotion Ideas Cause-Related Tie your sales
promotion to a worthy cause to increase your business profile and
sales. Customers like helping a good cause and may choose your
product or services over a competitor if you tie a sales promotion
to an appropriate cause. Choose a cause that is related to your
products for maximum benefit. If you sell makeup, tie your sales
promotion to a skin cancer charity. Promote through store signs,
information on your website, coupons and direct marketing efforts.
Work with the charity you choose to include promotional information
on their website and marketing materials for added exposure. For
long-term cause marketing, consider international movements such as
fair trade products. Finance Deals Offer special financing deals to
spur sales on new, underperforming or high-value goods and
services. For some customers, financing specials can speed up a
planned purchase or increase the value of an order. For service
sales, financing deals can be critical to enabling customers to
obtain needed equipment or ease into a service contract. For
example, a security company that makes most of their revenue off of
long-term service contracts can offer financing specials to offset
the cost of monitoring equipment. These financing arrangements can
help lock in customers to longer-term service contracts that will
lead to predictable increases in revenue for your company. Ideas
for Sales Promotion By Laura Acevedo, eHow Contributor Read more:
15
16. Sales Promotion Ideas Text Promotions Place codes on your
products that require customers to text a number to enter a drawing
for a significant prize. Text promotions can help you target a
younger demographic and can generate a buzz about your products.
Use this type of promotion to build a contact list that you can use
for future text-based marketed campaigns. Text-based sales
promotions work best on consumer products that are frequently
purchased like beverages, candy or youth-oriented products. BOGO
Buy one, get one at a discount (BOGO) offers are popular with
consumers and can have a large impact on your sales volume. Since
customers must purchase a second product to receive the discount,
your store benefits from increased overall sales. BOGO sales draw
in repeat customers and new customers and increase traffic to your
store. Make your BOGO sale encompass most of the products you offer
for maximum benefit. Increase prices on any product that will not
be profitable in a BOGO offer or clearly exclude them from your
sales promotion. Depending on your product, consider gradually
increasing the prices on all your products before your sales
promotion if customers are not highly price sensitive. Ideas for
Sales Promotion By Laura Acevedo, eHow Contributor 16
17. Advertising and Promotion definitions Definition
Advertising Promotion Definition One-way communication of a
persuasive message by an identified sponsor, whose purpose is
non-personal promotion of products/services to potential customers.
A Promotion usually involves an immediate incentive for a buyer
(intermediate distributor or end consumer). It can also involve
disseminating information about a product, product line, brand, or
company. Time Long term Short term Price Expensive in most cases
Not very expensive in most cases. Suitable for Medium to large
companies Small to large companies Sales Assumption that it will
lead to sales Directly related to sales. Example Giving an
advertisement in the newspaper about the major products of a
company Giving free products, coupons etc. About A type of
marketing tool A type of marketing tool Purpose Increase sales,
brand building. Increase sales. Result Slowly very Soon 17
18. Advertising vs Promotion Cost of advertising vs promotion
Promotions are directly linked to sales and hence for small
companies it may be easier to use promotional methods. Advertising
may be more expensive for small companies and it may not be
feasible for them while in advertising it is being assumed that
adverts will lead to sales. For example: A store may give 20%
discount on its products which may increase sales while the same
shop may find it difficult to advertise this in various medias.
D.A.Novak & Text of the GNU Free Documentation License 18
19. Advertising Types Advertising can be of the following
types: Media: Commercial advertising media can include wall
paintings, billboards, street furniture components, printed flyers
and rack cards, radio, cinema and television ads, web banners,
mobile telephone screens, shopping carts, web popups, skywriting,
bus stop benches etc. Covert Advertising: Covert advertising is
when a product or brand is embedded in entertainment and media. For
example: John Travolta wearing only "Diesel" clothing in a movie.
Television Commercials: Virtual advertisements may be inserted into
regular television programming through computer graphics. It is
typically inserted into otherwise blank backdrops. Internet
Advertising: This is the newest form of advertising wherein web
space is used and email advertising is used. D.A.Novak & Text
of the GNU Free Documentation License 19
20. Marketing and Sales Marketing and sales are both activities
aimed at increasing revenue. They are so closely intertwined that
people often dont realize the difference between the two. Indeed,
in small organizations, the same people typically perform both
sales and marketing tasks. Nevertheless, marketing is different
from sales and as the organization grows, the roles and
responsibilities become more specialized. D.A.Novak & Text of
the GNU Free Documentation License 20
21. Sales vs Marketing Sales vs Marketing Activities Marketing
activities include consumer research (to identify the needs of the
customers), product development (designing innovative products to
meet existing or latent needs), advertising the products to raise
awareness and build the brand. The typical goal of marketing is to
generate interest in the product and create leads or prospects. On
the other hand, sales activities are focused on converting
prospects to actual paying customers. Sales involves directly
interacting with the prospects to persuade them to purchase the
product. Marketing thus tends to focus on the general population
(or, in any case, a large set of people) whereas sales tends to
focus on individuals or a small group of prospects. D.A.Novak &
Text of the GNU Free Documentation License 21
22. Marketing vs Sales Marketing Sales Approach Broader range
of activities to sell product/service, client relationship etc.;
determine future needs and has a strategy in place to meet those
needs for the long term relationship. makes customer demand match
the products the company currently offers. Focus Overall picture to
promote, distribute, price products/services; fulfill customer's
wants and needs through products and/or services the company can
offer. fulfill sales volume objectives Process Analysis of market,
distribution channels, competitive products and services; Pricing
strategies; Sales tracking and market share analysis; Budget
Usually one to one Scope Market research; Advertising; Sales;
Public relations; Customer service and satisfaction . Once a
product has been created for a customer need, persuade the customer
to purchase the product to fulfill her needs Horizon Longer term
Short term Strategy pull push Priority Marketing shows how to reach
to the Customers and build long lasting relationship Selling is the
ultimate result of marketing. Identity Marketing targets the
construction of a brand identity so that it becomes easily
associated with need fulfillment. Sales is the strategy of meeting
needs in an opportunistic, individual method, driven by human
interaction. There's no premise of brand identity, longevity or
continuity. It's simply the ability to meet a need at the right
time. D.A.Novak & Text of the GNU Free Documentation License
22