SALES PROMOTION 1.Sales promotion definition 2.Target groups and sales promotion techniques 3.POP materials 4.Merchandising 5.Sensory marketing 1. SALES PROMOTION DEFINITION  Sales promotion covers a wide range of activities intended to provide a short-term increase in sales.  In all cases the intention is to provide an extra incentive to buy (or stock) a specific brand or product range.  Sales promotion will often be useful for low-value items and is most effective when used as part of an integrated promotion campaign. ADVANTAGES OF SP  SP is flexible and variable.  SP supports brand (product) loyalty.  PP can change purchase habits in case of the convenience goods.  PP is accepted by customers – it is understood as increase in product value.  PP can support effectively other parts of marketing communications mix.  SP can encourage trial  attract new customer.  … DISADVANTAGES OF SP  SP is short-dated.  SP can be imitated by competitors very easily.  PP can damage reputation (image) of brand – the use of discounts!!! 2. TARGET GROUPS AND SALES PROMOTION TECHNIQUES  Some sales promotions are aimed at customers, some are aimed at retailers, others are aimed at sellers (staff). producer seller middleman customer Sellers´ promotion Customers´ promotion Trade promotion SALES PROMOTION TECHNIQUES - B2C  Discounts (seasonal, multibuys, banded packs, extra-fill packs)  Tasting, product sampling - inhome sampling (sending to the households), instore sampling (in the place of purchase), out-of-home sampling (in the street, …), point-of-use sampling (free sample of sauce when you buy a meat)  Free gift with each purchase  Money-off vouchers (couponing)  Two for the price of one  Loyalty programmes (clubs)  Competitions, lotteries  Trade fairs  Events  Road shows  … SALES PROMOTION – ROAD SHOW, EVENTS TRYVERTISING: SAMPLE LAB! „TRY BEFORE YOU BUY!“ • 2009 - 2011, project, Japan - Tokyo • The members can actually try out the latest – and often unreleased – products. • In return, they have to complete surveys that help brands, designers and manufacturers to improve and fine-tune their products for the mass market. • Advantages??? TRYVERTISING: GLADE + WALLMART 3. POP MATERIALS  POP (Point of Purchase) is the set of promotional materials in the place of purchase in order to increase the sale.  About 85 - 90 % of all purchasing decisions take place directly in place of purchase!!! POP MATERIALS ALTERNATIVES POP materials Way of application TimePlace Outdoor Indoor In-store (shops) Others (hotels, restaurants, tourist centres, ...) Short-term Long-term Walls Shelves Cash desks Floors Others Shop in shop 4. MERCHANDISING (IN-STORE COMMUNICATION) Merchandising or „5R“:  Right product  In right place  In right time  For right price  Supported with right presentation  Sensory marketing (smell, taste, touch, sense of sight, sense of hearing). SOME RECOMMENDATIONS  Eye-level  80 cm – 2 m, at cash desks  impulsive purchase  Trade compatibility (Cross promotion).  To place goods especially on the right, to respect the clock-wise rotation.  The cleannes of goods and place of sales.  POP materials implementation (clean, undamaged).  Not to be out of stock.  The frontal orientation of product label. SENSORY MARKETING  Sensory marketing explains how sensory aspects of products (i.e., the touch, taste, smell, sound and visual aspects) affect consumer emotions, memories, perceptions, preferences, choices and consumption of these products.  In the short term we remember just 1% of what we touch, 2% of what we hear, 5% of what we see, 15% of what we taste and 35% of what we smell. EXAMPLES OF ODORS AND THEIR MARKETING IMPACT  Melon: it draws nearly universal feelings of friendliness, youthfulness and happiness.  Vanilla: Americans think of comfort, and the French consider it elegant and feminine But in some Asian countries, it is felt to be sticky and syrupy.  Sandalwood: Woody aromas score highest on sensuality among U.S. females. Sandalwood also evokes dark blue hues and leather.  Jasmine: The scent is popular in India, where some women wear it in their hair, but U.S. consumers sometimes react negatively to a slight barnlike note in the aroma. WHY SCENT (AROMA) MARKETING?  The results are in, happier customers who remember your brand and linger longer.  It is the art of taking a company’s brand identity, marketing messages, target audience and matching these with a fragrance that amplifies these branding aspects.  The right ambient scenting solution can subtly prompt consumers to spend more time in retail environments or can be an effective means of drawing people into your store.  The benefits can be seen in almost every industry, explore for yourself. WHY SCENT (AROMA) MARKETING? BANKS Improve customer experience and satisfaction through scent. CAR SHOWROOMS Add a sense of luxury and capture the value of your brand. ENTERTAINMENT Create a pleasant environment and remove unpleasant smells. FITNESS Sprint ahead of the competition with scent. FOOD SALES Stimulating the sense of smell and entice shoppers to try your food. HOTELS The perfect ambience, defined by scent. MEDICAL Refresh the environment and improve patient experience. OFFICES Scented offices, creating an efficient work force and reduced stress. RETAIL STORE SCENTING Create a unique retail store experience through scent. TRANSPORT Arrive at your destination relaxed, refreshed and revived.