You are newly recruited sales manager for Mid-western region of P&G Company. Outline your plan to capture the market with sales promotion tools. Share your ideas.
The main
stages which is involved in sales promotion planning are:
1. Establishment of objectives:
Sales-promotion
objectives vary according to the target market. If the target is the customer,
objectives could include the encouragement of increased usage or the building
of trial among non-users or other brand users. For intermediaries, objectives
could be to encourage off-season sales or offsetting competitive promotions.
Sales-promotion activity could also be aimed at internal personnel, making up
part of the reward system
2. Selection of promotional tools:
Promotional
objectives form the basis for selecting the most appropriate sales-promotion
tools. The cost and effectiveness of each tool must be assessed with regard to
achieving these objectives in respect of each target market. The tools
available to the service marketer are described in more detail in the next
section.
3. Planning the sales-promotion programme:
The
major decisions that need to be made when designing the sales-promotion
programme relate to the timing of the promotion and how long this tool is to be
used. Also important are the size of incentive, rules for eligibility and, of
course, the overall budget for the promotion.
4. Pre-testing:
This
needs to be undertaken to ensure that potentially expensive problems are
discovered before the full launch of a promotion. Testing in selected market
segments can highlight problems of ambiguity, response rates and give an
indication of cost effectiveness.
5. Implementation:
The
programme for implementation must include two important time factors first, it
must indicate the ‘lead time’- the time necessary to bring the programme up to
the point where the incentive is made available to the public. Second, the
‘sell in time’ which is the period of time from the date of release to when approximately
90-95 per cent, of incentive material has been received by potential customers.
6. Evaluation:
The
performance of the promotion needs to be assessed against the objectives set.
If objectives are specific and quantifiable, measurement would seem to be easy.
However, extraneous factors could account for the apparent success of many
sales-promotion activities.
For
example, competitive actions or seasonal variations may have influenced
customers’ decision making. It can also be extremely difficult to separate out
the effects of sales-promotion activity from other promotional activity-or
indeed from other marketing-mix changes.
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