Promotional Activities and Business Objectives

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Promotional Activities and Business Objectives
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Homework

• Look for 10 promotional activities currently
  being used by businesses
• What is being promoted? Price? Value?
• How is the promotion communicated?
• In your opinion what are the best 5?
• Who/what sort of person is it aimed at?
• How would you improve it?

What did you find?
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Promotional Activities
Business Objectives
Promotional Activities
Promotional Activities
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What are the Business Objectives?

• Take 5 minutes to consider what objectives can be
  met through Sales Promotions

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Business Objectives

• Increasing volume
• Increasing trial
• Increasing repeat purchase
• Increasing loyalty
• Gaining intermediary support

• Creating interest
• Creating awareness
• Deflecting attention from price
• Widening usage
• Discriminating among customers

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HomeworkThe start of your portfolio

• Choose the organisation you intend to study
• Describe in a paragraph its business objectives
• Write 100-150 words on each aspect of its basic
  mix as described in last lesson

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Increasing Volume

• To shift old stock before new one introduced
• To reduce stock holding at year end
• Increase consumers and retailers holdings prior
  to a competitor launching product
• To lift production to higher level
• Very short term tactical
• Price promotions are most effective
• Must decide where volume is to come from

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Increasing Trial

• Getting new people to try the product by
• Provide free sample
• Provide additional benefit
• provide short term financial benefits. E.g.
  credit rates
• being imaginative. Open days. Events Eg Bovrils
  Bonfire Night promotion

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Increasing repeat purchase

• Links closely with volume. Existing customers
  bring forward purchases
• Used to block purchases of new competitor
  products
• Combats repertoire purchasing eg pubs
• Examples are coupons on product, three for two,
  collect tokens for product or cash

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Increasing loyalty

• Loyalty keeps you buying despite some negative
  aspects.
• Long term collector promotions
• Club cards
• Feel good treatment, factory visits. Meeting
  key players
• Value promotions create loyalty

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Widening usage

• Raise awareness of different use
• Cross channel ferries - holiday starts when on
  the boat not on arrival at other side
• Issue trial samples
• New ideas through pamphlets - DIY stores, Food
  stores

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Creating interest

• Keep the customer fresh - stop boredom
• Richard Branson very good at this
• Value promotions form the basis
• Innovative ideas. Use celebrities (Beckham and
  MS)
• Links with events

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Creating Awareness

• Joint promotions with another product . Cadburys
• Production of videos, educational books
• People are very selective - over 9500 brands
  regularly advertise. How many do you know?

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Deflecting attention from price

• Price wars are destructive in long term
• Extra fill packs
• Pence off next purchase
• Long term collector promotions - Shell SMART card

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Gaining Intermediary support

• Gain support from more people
• Rewards for introducing a friend offer
• Incentives to reps, store managers. Shelf
  position is critical
• Getting support of the trade staff is crucial

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Discriminating among users

• Know who you are targeting
• Make sure each category has separate offers and
  limit overlap
• Cheep week end flights to business people because
  they are paying whereas the Business pays in the
  week.