Presentation on Sales Promotion Planning

Submitted By Ravi Verma MBA 9th sem. Roll No. 44

Sales promotion planning process

1. 2. 3. 4. 5. 6. Environmental analysis Identification of the target audience Determination of promotional objectives Budget determination Design the Sales Promotional Message Select the Sales Promotional Channel

Environmental analysis
Changes in factors such as consumer attitudes, competitive activity, retail changes etc. may all impact on the brand position. We need to understand the position we occupy in the market, we also need to consider how we wish to be perceived by consumers. Sales promotion can contribute to strengthening or changing that position and can also be used to modify consumer perceptions

Identification of the target audience

There is a need to identify clearly which customers we intend to motivate. We may choose to target all consumers for the brand or alternatively, we can select a smaller segment of those consumers. These alternative targets will require different promotional executions and different methods of distributing the promotion to ensure that it reaches the right people. We need to identify the underlying reasons for the behaviour of the chosen target audience in order to ensure that the promotional execution is appropriate. We need to define what we intend to achieve with the promotion.

Determination of promotional objectives

It is important to set precise objectives for the activity. Is the promotion expected to increase trial and sampling or reward loyal users? Objectives should be specific and measurable If no value is given to the objective, it will be extremely difficult to determine whether the goal has been achieved on its completion

Budget determination
Promotions broadly fall into three distinct categories: Fixed budget promotions: where the total cost of the promotional activity is known in advance Partially fixed cost promotions Promotions with totally variable costs: some promotions such as those involving coupon distribution will be totally dependent upon the number of consumers redeeming the coupons. Estimates may be made.

Design the Sales Promotional Message

The message should gain attention, hold interest, arouse desire and elicit action (AIDA model). In practice only few messages take a customer all the way from awareness through purchase. Formulating the message will require solving problems i.e. what to say (message content); how to say it logically (message structure);how to say it symbolically (message format) and who should say it (message source).

Select the Sales Promotional Channel

Company must select efficient channels to carry the message. This could be personal or nonpersonal channels. Personal channels involve two or more persons communicating directly with each other face-to-face, person-to-audience, over the telephone or through email. Usually, personal channels are effective because they allow individualized presentation and feedback. Nonpersonal channels on the other hand have no personal contact and they include media, atmosphere and event.