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Understanding Sales Promotion Strategies

The document discusses sales promotion, highlighting its importance in stimulating consumer purchasing and enhancing product visibility. It outlines the characteristics, objectives, and various types of sales promotions, emphasizing the need for effective communication and incentives to drive short-term sales. Additionally, it covers the integration of sales promotion within a broader marketing strategy and the necessity of evaluating promotional efforts for continuous improvement.
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0% found this document useful (0 votes)
47 views33 pages

Understanding Sales Promotion Strategies

The document discusses sales promotion, highlighting its importance in stimulating consumer purchasing and enhancing product visibility. It outlines the characteristics, objectives, and various types of sales promotions, emphasizing the need for effective communication and incentives to drive short-term sales. Additionally, it covers the integration of sales promotion within a broader marketing strategy and the necessity of evaluating promotional efforts for continuous improvement.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SALES PROMOTION

Mario De la Garza G.
ALL RIGHTS RESERVED. NEITHER THE WHOLE NOR PART OF THIS
PRESENTATION CAN BE REPRODUCED, RECORDED OR TRANSMITTED BY A SYSTEM OF
RETRIEVAL OF INFORMATION, IN NO WAY, NOR BY ANY MEANS SHALL BE
ELECTRONIC, MECHANICAL, PHOTOQUIMICAL, MAGNETIC, BY PHOTOCOPY, RECORDING OR
ANY OTHER MEANS, WITHOUT PRIOR WRITTEN PERMISSION FROM THE AUTHOR OR ITESM.
ISBN98748125367
CAUSAS QUE HAN IMPULSADO A LA
SALES PROMOTION
Higher performance demands for accounts.
Short-term orientation.
Consumer response to promotions.
Numerous Brands.
Growing Power of Retailers.
Disorder in the media.
Need for effective promotion to survive.

2
ALGUNAS DEFINICIONES DE PROMOCIÓN
SALES

In a specific sense, they are all the activities that


go beyond personal selling and advertising, which
they stimulate consumer purchasing and effectiveness
de los distribuidores de productos, servicios o ideas, tales
activities are announcements of any kind (written,
recorded or signed), fairs and exhibitions,
demonstrations, etc.

American Marketing Association.


3
They are all the efforts made to achieve the
consumer preference for a product over all others
besides the competition.

William F. Glueck.

They are all the marketing activities that tend to


to stimulate demand.

Phillip Kotler
4
The promotion refers, basically, to a
communication process, through which
las organizaciones se comunican con sus
target audiences.

5
Sales Promotion
It is the part of marketing that deals with
inform, assist, and persuade consumers about the
existence of a product, service, or organization,
mediante un proceso de comunicación que se establece
between the provider and the consumer

6
FUNDAMENTAL CHARACTERISTICS
FROM SALES PROMOTION
It is a temporary activity.

Resorts to a wide variety of different actions to


fulfill their communication purposes.
Su propósito de ejecución, es impulsar la introducción y
sale of a product, service or idea, stimulating
direct and immediate short-term demand.
It is a sporadic activity that has objectives
immediate.

7
It targets specific audiences.

It is based on providing material incentives or


economic through the addition of value to the
products and services.

Se dirige tanto a los intermediarios como a los


end users.

The most successful promotions are those that


they generate demand, immediate consumption, and encourage the
buyback
8
1. Communication: Attention is gained and often
provide information that may lead to
consumer towards the product.

Sales promotion is part of a system


total marketing communication, called
CIM.

The elements of the promotional mix or mix


de comunicación se muestran a continuación:

9
2. Incentive: Some concession, induction is added,
The contribution designed to represent a value
additional to the one originally.

3. Invitation: An invitation is included for


commit the consumer to buy at that
moment.

4. Inform: The informative promotion aims to


convert an existing need into a desire or
create interest in a new product
(beneficios,¿Cómo funciona? ¿Cómo se obtiene?
10
5. Persuasion: This is designed to stimulate a purchase
o una acción. Convencer a los consumidores de que
understand the brand of the organization.

[Link]: To maintain the product and the name of


the brand in the consumer's mind.

The promotion has one of its purposes


fundamentals of informing, persuading, and inducing the
compra

11
Other objectives of the promotion are:

Create awareness

Send information.

Educate and anticipate a positive image


Sell

12
GENERAL CHARACTERISTICS
It always has the purpose of provoking short-term sales.
deadline. Its purpose will always be to stimulate,
facilitate and/or promote, directly, the purchase
de productos, servicios e ideas.

• Siempre se basa en ofrecer incentivos adicionales, es


to give an extra element, a value external to one’s own
product, which is what is intended to awaken
interest and provoke the purchasing decision
immediate (impulse buying)

14
The techniques that integrate sales promotions
they use to achieve the marketing objectives of the
organization.

All of your design and planning is oriented towards


producir, una reacción a corto plazo entre los
buyers and consumers.

The message can only be directed to groups.


specific to buyers, especially when
combines with direct marketing techniques.

15
Their results are easily measurable by
number of samples given, number
from received coupons, number of participants
in a contest, number of products with
discount sold, etc.

It adapts very well to the strategies of


market segmentation, that is to say we
allows us to concentrate our resources on the
selected segment.

16
¾It really works: the results that you get
obtained by adding an element
additional that is valuable for buyers
they widely justify its use. There is a word
that continues to maintain its magical meaning:
FREE, that's why the sales promotion continues
being effective.

It is more economical than advertising.

17
TYPES OF SALES PROMOTION ACCORDING TO THE SEGMENT

HERRAMIENTAS

Technical literature.
Industrial Sale Technical personal sale
O Technical courses
Specialized Sales Exhibitions and congresses
Specialized technical magazines.

Training for their sellers.


Wholesale Sales Promotion at the point of sale.
Promotional literature

Promotional posters.
Sale to Retailers Free Samples.

Awards
Coupons
Sales to Consumers - Price reduction and offers.
Samples.
Contests and raffles.

18
Types of promotion used with the
Sales Force
Conventions
Training courses.
Performance bonuses.
Brochures
Catalogs
Sales material.

19
WHEN TO OPT FOR THE PROMOTION
FOR SALES?
When:
The activity aims to achieve a very strong reaction.
short term.
It is about supporting a sales action focused on the
time (temporal).
The action targets very specific audiences.
specific and identified.
Additional incentives are considered or
extra benefits can provoke the reaction
positive from the buyers.
20
FAVORABLE OPPORTUNITIES FOR
THE PROMOTION
Favorable trend in demand.
Strong product differentiation.
Emotional reasons for buying.
Adequate resources.
Product, price, channel.
Market trends
Change in lifestyles.

21
Encourage the sales of established products.
Attract new markets.
Help in the stages of the product cycle.
Reduce risks for customers of the
first-time purchase and consequently the
encourage to take the test.

22
APPLICATIONS OF PROMOTION
INFORMATIONAL PROMOTION
• Increase awareness of a new brand, class or
product attribute.
• Explicar how the product works.
Suggest new uses for the product.
Create an image of the organization.

23
PROMOCION PERSUASIVA

Encourage brand change.


Change customers' perception of the
product attributes.
•Trigger impulsive purchases.
Persuade customers to order more
information about products and brands.

24
REMINDER PROMOTION

Remind consumers that they may need the


product in the near future.
Remind consumers where they can
buy the product.
Maintain customer awareness.

25
Promotional Mix Or Mix Of
Communication
It is made up of:

Advertising.
Sales promotion.
Personal sale.
Public Relations.
Direct Marketing (Direct Mail, Telemarketing).
Cyber marketing.

26
How the promotional mix works in products of
consumption and industrial products

Consumer products Industrial products


27
INTEGRAL COMMUNICATION OF
MERCADOTECNIA (CIM)
Currently, it's not enough to promote
sales, we must use the entire mix of
communication, to make integrated communication of
marketing (CIM). That is to say, we must use everyone
the elements of the mix, in order to communicate
with our clients and prospects.
It is not enough to just do advertising or promotion.
for sales, we must have 360º communication.
The mixture must be adapted and can be adapted to the
characteristics and possibilities of each company.

28
How do CIMs work?

Public relations create expectations.


Advertising brings the product and promotion closer.
close the sale.
Remember we must do 360º communication.

29
Estrategia Promocional
It is a plan for the optimal use of the mix of
communication.
Determine the promotion strategies.
It is an important part of the Marketing strategy.
from the organization.
Communicates the organization's proposals to its
target market.
Each component of the communication mix impacts
different way.

30
PROMOTIONAL PLAN
In order to make a promotional plan, you must
take into account all relevant events for
the market segment that occurs within a year
complete.
Promotions should be established for each one of
events such as: Christmas, Summer,
Mother's Day, etc.
The selected promotions must create interest in
the consumers, for them to work.
The promotion must be planned for it to work, not
improvisarse.
31
EVALUATION OF THE PROMOTION
Every promotional campaign must be evaluated to
quantifying their results this can be done by
means of:
Increase in profits.
Increase in sales.
Number of units sold.
Participants in a contest.
Number of offers sold.
•Redeemed prizes, etc.
The evaluation will help us improve our next ones.
promotions.
32
BIBLIOGRAPHY
If you want to know more about Sales Promotion, you
recomendamos que leas el siguiente libro:

De la Garza M (2001), Sales Promotion, Mexico,


Cultural Homeland.

Or contact us:
asmarketing@[Link]

To continue doing Asmarketing.


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