By adding value to an offer and hoping to bring forward future sales, sales promotion techniques can be a source of advantage, one that has a short, rather than a long-run, orientation.
The way brands are presented and displayed, including packaging and in-store shelf management,
can influence customer perception, sales volumes and market share. A key aspect of marketing communications, therefore, especially in grocery markets, is field marketing, which includes merchandising.
Enabling consumers to experience brands is often necessary to support sales promotions, as well as to help a brand cut through the clutter of competitive and distracting messages.
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3. Topics
● Introduction
● Understanding the value of sales promotions
● The role of sales promotion
● Sales promotion plans: the objectives
● An overview of how sales promotions work
● Retention programmes
● Sales promotions: methods and techniques
● Field marketing
● Range of FM activities
● Brand experience and events
5. Introduction
By adding value to an offer and hoping to bring forward future sales, sales promotion techniques can be
a source of advantage, one that has a short, rather than a long-run, orientation.
The way brands are presented and displayed, including packaging and in-store shelf management,
can influence customer perception, sales volumes and market share. A key aspect of marketing
communications, therefore, especially in grocery markets, is field marketing, which includes merchandising.
Enabling consumers to experience brands is often necessary to support sales promotions, as well as to
help a brand cut through the clutter of competitive and distracting messages.
6. Understandingthevalueofsales
promotions
● Sales promotions consist of a wide range of
tools and methods. In many cases, price is the
determinant variable and can be used to
distinguish between instruments.
● The acceleration represents the shortened
period of time in which the transaction is
completed relative to the time that would have
elapsed without a promotion.
10. Theroleofsalespromotion
● Role Of Sale Promotion The role of sales promotion has become oriented
towards engagement, rather than selling. This can be achieved through adding
value to a brand as well as still selling product. This is particularly evident in
mature consumer markets where price and promotion work are the few ways of
inducing brand-switching behaviour.
11. Shorttermism
● Managers are increasingly focused on short-term performance and evaluation,
over periods as short as 12 weeks. Many see this as leading to an erosion of the
brand franchise. Businesses need effective communications tools that work
quickly and impact directly upon sales.
12. Managerialaccountability
● Sales promotion activities are more easily justified and understood than those
associated with advertising. Advertising, however, cannot be so easily measured
in either the short or the long term. The impact of this is that managers can
relate promotional expenditure to the bottom line more comfortably with sales
promotion.
13. Brandperformance
● Developments in technology have facilitated tighter buying, delivery, stock
control and tracking of merchandise. This means that brand managers can be
held responsible much more quickly for below-par performance.
14. Brandexpansion
● As brand quality continues to improve, so the number of decisions that a
consumer has to make also increases. Some feel that the cognitive shopper
selects brands that offer increased value. This makes decision-making easier and
improves the level of convenience associated with the shopping experience.
15. Competitionforshelfspace
● Sales promotions have helped manufacturers win valuable shelf space and assist
retailers to attract increased levels of store traffic. The credibility of this
promotional tool is low, as it is obvious to the receiver what the intention is.
However, because of the prominent and pervasive nature of the tool, consumers
and members of the trade largely accept the direct sales approach.
16. Salespromotionplans:theobjectives
● Sales promotion plans: the objectives Sales promotions are thought to influence
the behaviour of individuals in two ways - by stimulating use of a product for
the first time or to encourage use on a routine basis. One objective of sales
promotion activity is to prompt buyers into action, to initiate a series of
behaviours that result in long-run purchase activity.
17. Anoverviewofhowsalespromotionswork
● Sales promotions are designed to change people's behaviour in order to increase sales. The
establishment of new behaviour patterns is the preferred outcome. If sales promotions are to
work over the longer term, that is to bring about repeat purchase behaviour, then they need
to be learned and adopted permanently. Stilley et al. (2010a) suggest that consumers allocate
a portion of their mental budget for planned, anticipated brand or category purchases. They
argue that price promotions can trigger this switch.
● Research also shows that consumers use mental budgeting processes for grocery shopping
trips. Stilley et al. (2010b) suggest that there are benefits for retailers arising from an
understanding of mental budgets. Store layout should incorporate the placement of high-
margin, unplanned items early in the path a customer takes around a store. Other low-margin
unplanned promotional items should be placed later in the store path.
19. Retentionprogrammes
● The growth of loyalty schemes has been encouraged by the widespread use of swipe cards.
Users are rewarded with points each time they make a purchase, and this builds up points
accrual. The benefit for the company supporting the scheme is that it motivates customers to
accrue more points.
20. Retentionprogrammes
Hallberg refers to the impact of emotional loyalty, a non-purchase measurement of attachment to
a brand:
● At the ‘no presence’ level consumers are unaware of a brand and so there is no emotional
loyalty.
● At the ‘presence’ level there is awareness but emotional loyalty is minimal.
● At the ‘relevance and performance’ level consumers begin to feel that the brand is
acceptable in terms of meeting their needs.
● At the ‘advantage’ level consumers should feel that the brand is superior with regard to a
particular attribute.
● At the ‘bonding’ level emotional loyalty is at its highest because consumers feel the brand
has several unique properties. They love the brand.
Loyalty schemes are exponentially effective when consumers reach the bonding stage. Although
sales generally increase the further up the pyramid consumers move, it is only at the ‘bonding’
stage that sales start to reflect the emotional attachment people feel towards the brand.
22. Salespromotions: methodsand techniques
● The range and variety of techniques that are used to add value and induce a sale sooner
rather than later mean that different techniques work in different ways to achieve varying
objectives.
● Here, consideration is given to the range of tasks that need to be accomplished among two
key audiences: resellers and consumers.
● The range of techniques and methods used to add value to offerings is enormous but there
are growing doubts about the effectiveness and profitability associated with some sales
promotions.
● The majority of sales promotions are those used by manufacturers to influence consumers.
● A range of techniques, from sampling and coupons to premiums, contests and sweepstakes,
are all used with varying levels of success, but there has been a distinct shift away from
traditional promotional instruments to the use of interactive media in order to reflect
consumers' preferences and media behavior.
25. Fieldmarketing
● Field marketing is a relatively new sector of the industry, one which seeks to provide support
for the sales force and merchandising personnel together with data collection and research
facilities for clients.
● This reflects an overall shift in marketing communications from one based largely on
developing brand values through an emotional proposition to one that emphasizes changes in
behavior and calls-to-action.
● The Field Marketing Council (FMC) states that the sector is about the use of people to
communicate sales and marketing messages.
● The key to field marketing is the flexibility of services provided to clients.
● The decision about whether to own or to hire a sales force has to be based on a variety of
criteria, such as the degree of control required over not only the salesperson, but also the
message to be transmitted.
● A large number of organizations choose to have their own sales force, but of these many use
the services of a manufacturer's agent to supplement their activities.
26. Rangeof FMactivities
● Field marketing is a response to market needs and is a development
practitioners have pioneered. It consists of tasks pulled from some of the five
main promotional tools, repackaged and presented under a more contemporary
title.
● (For example, door-to-door and sales activities from personal selling,
merchandising from both personal and public relations.)
27.
28. Rangeof FMactivities
● POS is essentially about persuasion. This might be about using sampling to encourage
customers to switch brands. Or it can be concerned with convincing customers that they
should buy the brand they were originally intending to purchase. Many retailers are
experimenting with 3D signage.
● Academics are attracted by the theoretical, problem-solving and statistical issues, whilst
practitioners seek increased efficiency and profitability.
● Field marketing is a cost-effective way of demonstrating a product, getting stand-out and
creating opportunities for customers to trial a product with minimum risk. Common locations
are in shopping centers and supermarkets where footfall is greatest. Field marketing is also
used to sell relatively complex products (e.g. computers, broadband, TV and related products,
or mobile phones).
29. Brandexperienceand events
● Mystery shopping has developed as an important aspect of field marketing. The
intention is to understand how a customer experiences the service or purchase
encounter and then feed the information into training and service improvements.
Many in the industry argue that brand experience occurs through various
interactions with a brand.
● Associated with this experience element is the growing use of events as a form
of marketing communications, as demonstrated through the Lucozade example
at the beginning of this chapter. Events are a part of marketing
communications, including brand experience and product and corporate
branding.
31. Evolvingmusicalexperiences
● In November 2014 Taylor Swift removed her entire library from all streaming platforms with
'freemium' accounts. Argument was that those listening free were undermining the fans opting
to buy her music. Consumers do not own a copy of the music so how does it impact their
music and brand experiences? Thom Yorke's second solo album 'Tomorrow's Modern Boxes'
was initially released exclusively to download through BitTorrent. In the same month, U2
agreed with computing giant Apple to give away their thirteenth studio album for free to
anyone with an iTunes account.
● For a few months, airline KLM gave eight followers a free flight to Amsterdam. A Scottish
brewery might give away a box of beer one day, then £200-worth of shares the next.
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