Sales promotion is best defined as. Sales promotion. Sales promotion ("sales promotion", sales promotion) - as a form of marketing communications is a system of short-term incentive measures and. What is sales-p




The term "sales promotion" is widely used to describe a whole group of events, usually of short duration and, as a rule, held at the point of sale or distribution. Also, sales promotion has two more names in marketing: staged advertising and tactical advertising.

Sales promotion (sales promotion) - the activity of implementing commercial and creative ideas that stimulate the sale of the advertiser's products or services, often in a short time. In particular, it is used with the help of product packaging, on which various sales promotion tools are located (for example, portraits famous people, cartoon characters, expensive car brands), as well as through specialized events at the point of sale. Long-term goal: - creating in the perception of the consumer a greater value of branded goods labeled with a certain trademark; short-term - the creation of additional value of the product for the consumer (added value). Sales promotion activities are paid based on the time spent by experts, fees for creative work and rates for technical work.

You can also say that sales promotion is a complex marketing activities aimed at increasing sales volumes (stimulating consumer demand, accelerating the process of distribution and sale of goods). They are focused on both the consumer (Consumer Promotion) and the seller (Trade Promotion).

Sales promotion influences the behavior of the consumer, turning him from a potential to an actual buyer. There are sales promotion operations that are of a hard type - a significant reduction in prices, the sale of an additional quantity of goods at constant prices. This is effective when it comes to a short period of time, but is expensive for the manufacturer.

At present, these sales promotion operations are of a softer nature (games, buyer contests, etc.). They are more effective in creating a positive image of the product.

The combination of "hard" and "soft" sales promotion encourages the buyer to make an immediate purchase, and if sales promotion meets the buyer's expectations and is consistent with the specifics of the product, then it inspires consumer sympathy, interest and loyalty at a lower cost than advertising.

Like any other marketing communication, sales promotion has its pros and cons, let's consider them.

Now the promotion of goods is actively developing and growing, many RAs provide a large list of sales promotion services. This happens due to the following reasons.

  • 1. Many customers are frightened by the cost of advertising campaigns in the media, but ships can be attributed to inflation rates.
  • 2. Growing chains of supermarkets and large shopping centers outside the cities. Therefore, offensive advertising of competing products located side by side on the shelf is necessary. Promotion is interesting not only to traders, but also to end consumers.
  • 3. Promotions can be carried out directly in super-hypermarkets, as well as in various retail outlets.
  • 4. Sales promotion increases cash flow to retailers and supports the production of large enterprises.
  • 5. As promotional agencies grow and prosper, there are great opportunities to apply their sophisticated technology.
  • 6. The positive side of the promotion is the convergence of the manufacturer with retail th. Promotion is always personally oriented. It links the consumer to the producer.
  • 7. Some entertainment may be included in promotions to encourage participation and then purchase of the product.
  • 8. If we are talking about mass-produced goods, then distribution of free samples is appropriate here, which acquaint the buyer with the products.
  • 9. Promotion campaigns penetrate new areas for them, for example, finance (bank and payment cards). They can be designed for the international or international market, from products it can be advertising companies beer.

The goals of stimulating consumers are as follows:

  • 1. increase the number of buyers;
  • 2. increase the number of items purchased by the same customer.

Sales promotion objectives can be: strategic, specific and one-time.

Strategic goals of sales promotion:

  • 1. increase the number of consumers;
  • 2. increase the amount of goods, the consumer;
  • 3. increase turnover to the targets set in the marketing plan;
  • 4. fulfill the targets of the sales plan.

Specific goals of sales promotion:

  • 1. accelerate the sale of the most profitable product;
  • 2. increase the turnover of any product;
  • 3. to give regularity to the sale of seasonal goods;
  • 4. to resist emerging competitors;
  • 5. revive the sale of goods whose sales are stagnant.

One-time sales promotion goals:

  • 1. benefit from annual events (Christmas, New Year etc.);
  • 2. take advantage of a particular favorable opportunity (anniversary of the establishment of the company, opening of a new branch, etc.);
  • 3. support the advertising company.

The seller should not be ignored by the manufacturer, since the success of the enterprise depends on his ability and ability to sell the goods. The reseller, being the link between the producer and the consumer, is a specific incentive object that performs regulatory functions.

In this case, the goals of incentives can be different:

  • 1. to give the product a certain image in order to make it easily recognizable;
  • 2. increase the amount of goods entering the trading network;
  • 3. increase the interest of the intermediary in the active sale of a particular brand of goods.

Means and activities for the promotion of goods.

There are many techniques and sales promotion techniques that often work in parallel. Sometimes, to get acquainted with them, you just need to carefully walk around the supermarket. And institutions such as a bank, a travel agency, a gas station, a hotel, and just a convenience store on the corner can use several different procedures at the same time. At the heart of all actions are focused on human greed and love for "freebies".

In recent years, the popularity of various techniques has fluctuated, and seemingly forgotten ideas have often been revived. Rewards still work when sending some symbols that confirm the purchase of goods (promotions like “cut out the barcode, collect points”). But issuing a gift right at the place of purchase attracts much more attention than collecting the right badges, waiting for mail, etc. New are the actions of charitable societies. An example would be well-known diapers (one package sold - one vaccine), the purchase of tea, part of the cost of which goes to orphanages, etc.

Promotions can encourage "habitual shopping" of some brands of everyday products at the expense of others. But there is one big problem with all events with the name "cherry picker". This is the name of people who roam the shops, centers in search of free gifts and are not at all interested in the brand. There are many "pitfalls" that must be considered when conducting advertising campaigns.

Activities include:

  • 1. Contests and free draws.
  • 2. Particularly advantageous offers. 2 for the price of 1, gift with purchase.
  • 3. Prizes by mail. The product can be obtained free of charge in exchange for inserts confirming the purchase.
  • 4. Gifts for customers. First used in the sale of cigarettes, they have become a collector's item and are often encouraged to purchase in order to acquire a collectible item. Children's toys are put into various ready-made breakfast cereals (Nesquik put educational discs, and then a collection of mini-games).
  • 5. Pictures. They are most often an investment in product packaging.
  • 6. Gift coupons. Often handed out in our cinema chains, when new stores open.
  • 7. Cash payments. Toilet paper Zewa held a similar action.
  • 8. Vouchers or coupons. Taken into account when paying for a product or service.
  • 9. Promotion of goods through more visited stores. Using packages to get a customer discount in a particular store is a relatively new idea.
  • 10. Charitable actions. Many companies that deal in baby hygiene products often use stickers like "buying this product you donate a n-th amount for the disabled, etc."
  • 11. Large packages. Often buying, for example, a pack of tissues, we see “30% free at the old price”, fabric softeners have always demonstrated the benefits of a large package.
  • 12. Wraps. Also exchanged for a prize or money.
  • 13. Flashy packaging. Most often, this is a bright price tag or a bow with bright numbers of the recommended price.
  • 14. Demonstrations in the store. A few years ago, P&G, when advertising dandruff shampoo, installed devices in the supermarket chain through which representatives of the company could check for dandruff.
  • 15. Games for promotional purposes. Became popular in recent years. Most often, these are the distribution of cards, under the protective layer of which your winnings are drawn.
  • 16. Advertising publications. As a rule, these are custom articles with an offer or a promotion. For example, cosmetics are advertised in this way in women's magazines (Cosmo, Lisa, etc.).

With all its variety of influences on the buyer and types of Sales Promotion, this is a relatively economical type promotional activities, at least in comparison with television and print advertising.

In most companies, the perpetual debate about who really brings in the money is reminiscent of the debate about who came first: the chicken or the egg. However, no matter who is considered the winner in this conflict, it is obvious that today it is not enough for an effective marketer to be a market expert and a connoisseur of consumer behavior. The “correct” marketer is the real owner of “his piece of business” and a little more sales. Recruiters are looking for such specialists during the day with fire, and companies themselves are trying to educate them through internal rotations.

Have you ever wondered what your colleagues in the sales department think of the marketing department? Well, or at least what, in their opinion, marketers do in work time? The answers can go beyond your wildest imagination, ranging from "watching TV commercials" to "ordering product samples for the office." And they don’t “manage consumer behavior” and “launch hit products” at all, as we marketers often characterize ourselves. The answer to the question "Why?" lies on the surface: according to sales staff, marketers are too far from the product shelf, which undermines the credibility of marketing expertise in their eyes. For a change, we suggest looking at the management of a common business from someone else's bell tower and learning to speak the same language with colleagues from the sales department.

Better you come to us

It is also desirable for sales staff to be aware of what marketers are doing and why. In this direction, a marketer can act proactively: on his own, organize a training "Marketing for non-marketers" and tell in detail about the logic of marketing activities in retail outlets, the latest research and trends in the field of consumer preferences. Salespeople usually respond very positively and with deep gratitude to offers to tell them something from marketing practice, which is reasonable: a look at the market "from above" will be useful to them in the process of negotiations with customers and emphasize the status ... Viewing the entire article is possible only for subscribers of the journal.

Sales promotion is structurally included in the so-called advertising "below the line" (BTL), which consists of trade marketing, public relations, special promotions. trade marketing, in turn, is divided into merchandising (see "Practical Marketing" No. 53) and sales promotion - support or sales promotion.

Betsy-Anne Toffler in her dictionary of marketing terms gives the following definition of this concept.

Sales promotion: sales promotion. (1) Actions, materials, techniques and methods used in addition to marketing efforts to coordinate advertising and sales activities. (2) Incidental additional work aimed at the sale of goods and services.

Sales promotion objects are:
a) the end user;
b) retailer and distributor;
c) the manufacturer's personnel.

Depending on this, various types of sales promotion activities can be applied. Further, they are classified according to the objects of influence and, accordingly, the methods of promotion (Fig. 1).

For the end user

Tastings: are held in order to attract new customers, bring a new product to the market; consist in testing products by the end user.

Samplings: organized to attract the attention of buyers and bring new product groups to the market; is to distribute samples.

Purchase promotion: carried out to encourage the buyer to purchase a particular brand; is to encourage gifts for a certain amount of purchase.

Discounts: provided in order to increase the number of purchases, as well as attract new consumers; consist in a fixed discount for a certain volume.

Lotteries: held to attract additional attention to the product; are to encourage a purchase, such as a lottery ticket or a coupon.

Distribution of leaflets: carried out to create a positive image that corresponds to the specifics of consumption of this brand; is to inform the consumer about the useful or unique properties of the product.

Figure 1 Types of promotional events and incentive methods

For retailer and distributor

The events are held with the aim of liberalizing relations between market participants, stimulating the desire to promote certain brands.

Contests: consist in holding a competition between stores for the optimal location of certain products on the trading floor, for the best layout and design of points of sale. Winners are rewarded with gifts of value or otherwise during special events for retailers such as training, presentations or conferences.

Training: consists in training the ability of retailers to competently place and sell a certain product using the manufacturer's brand standards. Such training may take place as part of a corporate conference or presentation.

Gifts: are one of the informal means of quickly building relationships between a manufacturer and a retailer. The personal arrangement of the companies to each other allows to strengthen the mutual interest in the promotion of our products. Basically, gifts are made during acquaintance or on the occasion of holidays. Gifts can vary in degree of importance.

Bonuses: consist in bonuses to the counterparty for fulfilled obligations. They may be provided in the form of preferential terms under contracts of sale or in the form of additional deliveries at reduced prices, or in another way.

For manufacturer personnel

Training: is a mutually beneficial process focused on results for both the company and the staff; consists in intensive training of newly arrived and already working employees; the frequency of such events depends on the goals and objectives of the company; they are usually held at least once every three months. The topics of trainings can be very diverse: from information and discussion of questions on the product to specialized discussions. For example, "sales technique", "art of communication", "rules of working with a client". The main thing is that all employees and management should be interested in these events and understand the need and timeliness of specific thematic trainings.

Motivation by promotion: is the encouragement of staff. The possibility of career growth is one of the most effective components of successful work; is a direct promotion or a transition to more responsible areas within a department or company. Each employee must see their perspectives.

Provision of uniforms and materials for work: the presence of such allows the normal and successful performance of their duties. Uniform is a desirable element for sales staff. It allows you to distinguish our employees from other representatives (companies) or ordinary visitors. The corporate form disciplines and adjusts to a business mood.

Bonuses: are material rewards for certain achievements.

Participation in festivals, exhibitions, presentations, conferences: this is another kind of encouragement, since these events are especially significant for the company, and, therefore, the best employees should take part in them. An indispensable attribute of such events are additional privileges for participants.

Contests: various forms of competition between company employees; they consist in the desire of people to become (or be) the best of the best. During such competitions, a team spirit is developed and a sense of responsibility for the work of the entire team is formed.

Special events "team spirit" (team spirit): spending time together, during which employees can informally get to know each other, get to know each other's character traits better, find common ground. This type of activities is characterized by the strengthening of the human factor in the work at the enterprise.

Materials for sales promotion

The material and technical part of the sales promotion consists in special equipment. Typically, 1-3 types of construction kits are developed for retail events. This is due to different types of stores (self-service or "through the counter"), the availability of sufficient space for such promotions and the "representativeness" of retail outlets.

There are also general design requirements. They should be compact (collapsible) for ease of transportation; light in weight and simple for ease of installation; be designed in a corporate style, have 100% recognition and association with the company's products; be bright, visible to customers and comply with sanitary and hygienic standards; be convenient to use.

The second type of sales promotion equipment is a corporate uniform. It should be combined with the design of structures, be clean and ironed. The professionalism and neatness of the promoters make it possible to create a relaxed atmosphere of the holiday, corresponding to the goals and objectives of a particular action.

Sales promotion materials include corporate gifts. They can be presented both by the manufacturer's products, and in the form of souvenirs. The latter include pens, stickers, T-shirts, baseball caps, etc.

Particular attention during such events should be paid to the so-called auxiliary materials. For example, during the tasting, you should take care of cups, napkins, waste baskets and other important additional equipment.

An obligatory and indispensable condition for conducting sales promotion is the presence of an additional stock of the company's products on the trading floor and in the warehouse of the store. Imagine if the promoted product is not on the shelves. Such an event will lose its effectiveness, and the money spent will be thrown away.

Sales promotion organization

The success of sales promotion events, as in any business, is inextricably linked with the people who develop and implement ideas. In this case, the work of promoters, focused on a direct impact on the end consumer, is especially important. There are several requirements for promotion staff. Here are the four main ones.

  1. The quantitative composition should correspond to the goals of the action, its scale, as well as the degree of workload of the participants, depending on the "passability" of the store and the time of the event. The decision on the composition is made during planning and depends on each specific case and its features.
  2. The appearance and behavior of personnel must comply with accepted standards for these activities. They consist in the appropriate use of the corporate form and unquestioning adherence to instructions.
  3. The quality of work is determined by the result of the action in quantitative terms and directly depends on the implementation of the plan. It consists in knowing the features of the brand, its merits: strengths, benefits for the consumer, difference from competitors, consumption patterns, etc. The ability to attract a buyer, present products favorably and encourage them to make a purchase are indispensable fundamental skills for successful sales promotion events. .
  4. Reporting is carried out both during the event and after it. The recorded data is transferred to the manager for processing and serves as the basis for encouraging staff and adjusting the company's further actions.

One of the main elements of organizing sales promotion is event planning, the meaning of which is the distribution of time and sequence of actions on a territorial basis, as well as depending on the degree of attractiveness and significance of certain types of retail chains.

Sales promotion tactics include the following actions.

  1. Choice of stores:
    1.1 selection of stores suitable for promotional activities,
    1.2 store evaluation,
    1.3 agreement with the administration,
    1.4 coordinating the date and time,
    1.5 Coordination of the venue for the promotion, based on the capabilities of the store.
  2. Working with promotion staff:
    2.1 selection and reservation of event participants,
    2.2 training,
    2.3 instructions in accordance with the action scenario,
    2.4 payment for work at the end of the event.
  3. Preparation for the event:
    3.1 creating an additional stock of products,
    3.2 merchandising at the point of sale,
    3.3 delivery of equipment (structures), their assembly; delivery of additional materials,
    3.4 preparation of the workplace.
  4. Holding an event.
  5. Actions after the action:
    5.1 thanks to the store,
    5.2 removal of equipment and materials,
    5.3 report and summing up.

The development of event scenario options is carried out before or during planning.

Depending on the goals and objectives, the availability of a certain amount of the manufacturer's budget and the degree of importance, retail outlets classified by their attractiveness for sales promotion events. First of all, these are strategic chains, they include united supermarkets and hypermarkets. In the second - important supermarkets, grocery stores and department stores, with a high turnover intensity. Third place is occupied by important medium-sized stores with higher than usual turnover rates. On the fourth - small stores, with medium intensity. All are characterized by a favorable location.

Further, in the planning of activities, the tasks for the development of regions are ranked. Obviously, megacities (Moscow and St. Petersburg) should be covered first. Then the most economically developed cities with a population of over one million and those where the manufacturer has its own distribution centers(branches). After that - all the rest, with a population of over 1 million people, etc. Particular attention should be paid to cities with the highest solvent demand. In a word, everything depends on the market capacity of a particular region (city).

When the procedure for carrying out activities on a territorial basis is determined, we proceed to tactical planning of the timing of implementation in specific sectors of the district (city). This is very important, because the number and profile of end customers at points of sale will vary by day of the week and time of their visit. It also depends on the seasonality of the consumption of this product. The main thing is to know when your target audience visits these stores.

The main and final moment in sales promotion planning is budgeting. It can be based on goals and objectives, a percentage of sales, maintaining competitive parity, or simply allocated funds that the company can afford.

The budget is determined for each year and signed for individual events, depending on the scope and timing.

The main items of expenditure in sales promotion are: the manufacture of structures, uniforms, souvenirs and payment for the work of staff or agency.

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