sales promotion & marketing sales

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McGraw-Hill/IrwinCopyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.Chapter 18

Consumer and Trade Sales Promotion

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Explain the role and significance of sales promotion in the marketing communications mix.

Understand why sales promotion expenditures account for a significant portion of many firms marketing communications budgets.

Discuss the objectives and techniques of consumer sales promotion.After studying this chapter you should be able to:

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Discuss the objectives and techniques of trade sales promotion.

Explain the limitations of sales promotion.

Realize how deceptive and fraudulent sales promotion victimizes both consumers and marketers.After studying this chapter you should be able to:

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The Role of Sales PromotionSales Promotion:Consists of media and non-media marketing communications employed for a predetermined, limited time to stimulate trial, increase consumer demand, or improve product availability.Consumer Sales Promotion:Directed at ConsumersTrade Sales Promotion:Directed at Resellers

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The Significance of Sales PromotionSales Promotion Expenditures

Consumer Factors

Impact of Technology

Increased Retail Power

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The 10 Commandments of Creative Sales PromotionSet specific objectivesKnow how basic promotion techniques workUse simple, attention-getting copyUse contemporary, easy-to-track graphicsClearly communicate the conceptReinforce the brands advertising message.Support the brands positioning and image.Coordinate promotional efforts with other marketing plans.Know the media you work with.Involve the trade.

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Consumer Sales PromotionObjectives of Consumer Sales Promotion:Stimulate trialIncrease consumer inventory and consumptionEncourage repurchase Neutralize competitorsIncrease sales of complementary productsStimulate impulse purchasing Allow flexible pricing

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Consumer Sales Promotion TechniquesPrice Deals Coupons RebatesCross-PromotionsContests, Sweepstakes, GamesPremiumsSamplingAdvertising Specialties

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Trade Sales PromotionObjectives of Trade Sales Promotion: Gain/maintain distribution Influence resellers to promote product Influence resellers to offer price discount Increase reseller inventory Defend against competitors Avoid reduction of normal prices

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Trade Sales Promotion TechniquesTrade AllowancesDealer LoadersTrade ContestsPoint-of-Purchase DisplaysTrade ShowsTraining ProgramsPush Money

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Limitations of Sales PromotionIt typically cannot reverse a genuine declining sales trend.

Marketers cannot reasonable expect sales promotion to convert refection of an inferior product into acceptance.

Sales promotion may even weaken the brand image.

Sales promotion has also been blamed for encouraging competitive retaliation.

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Limitations of Sales PromotionShort-term volume gain at the sacrifice of profits.Forward Buying:People buy more than they need at the deal price.

Pay-for-Performance Trade Promotions:Retailers are rewarded for making sales to consumers rather than making purchases from manufacturers.

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Ethical and Legal Issues in Sales Promotion Deceptive Sales Promotion Fraud: The Fake Storefront Stuffing the Ballot Box Playing the Middleman The Redemption Scam

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Ethical and Legal Issues in Sales PromotionDiverting (or Arbitraging):Secretly purchasing a product where it is less expensive, usually as a result of a trade promotion, and reselling in areas where prices are higher.

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Global ConcernsThe Global Perspective requires marketers to make an extra effort to become familiar with local laws and customs.

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Marketing and SalesVP of Marketing and Sales Supervise the Marketing and Sales Departments for a specified Business Unit Control and monitor annual plan, advertising and marketing budgets within the Business UnitDirector of Sales and Marketing Oversee the responsibilities of the Marketing and Sales DepartmentMaintain and improve public image of the Company through all advertising, marketing and promotional materialsSupervise Marketing and Sales Managers, Sales Consultants and AdministratorsCreate and monitor budgets

VP of Marketing and Sales

Senior Management Level Positions Director of Marketing and Sales Director of Marketing Director of Sales

Mid-Management Level Positions Marketing and Sales Manager Marketing Manager Sales Manager Internet Marketing ManagerProfessional Level Positions Assistant Marketing Manager Market Analyst Sales ConsultantEntry Level and Support Positions Sales Assistant Sales Host/Hostess Sr. Sales and Closing Coordinator Sales and Closing Coordinator Marketing Administrator Sales AdministratorMarketing and SalesDirector of SalesCoordinate sales activities in a given Business UnitSet sales quotas for a given period

Director of MarketingSupervise marketing functions in a specific Business UnitCoordinate advertising and public relations

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Marketing and SalesMarketing and Sales Manager Manage various marketing programs and initiativesManage sales activities

Marketing ManagerManage various marketing programs and initiativesCoordinate photo shoots for product photography needs, advertising and displaysDevelop methods to increase Company sales and exposure through various media (print, radio, billboards, etc.)

Sales ManagerResponsible for the overall success (i.e. sales conversions, Sales Consultant skill development, coordination of marketing events, etc.) of multiple communities under his/her supervisionMonitor contracts in coordination with community efforts to insure Company goals related to in-house mortgage and title capture

Internet Marketing ManagerCoordinate creation of business unit marketing materialsCoordinate web presentations for the business units communities in planningCoordinate IPIX photo shoots for all new models and clubhouses

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Marketing and SalesAssistant Marketing ManagerAssist with developing advertising concepts and placementsAssist with other various marketing programs and strategiesMarket Analyst Shop competition in the fieldGather market related dataPrepare marketing graphs

VP of Marketing and Sales

Senior Management Level Positions Director of Marketing and Sales Director of Marketing Director of Sales

Mid-Management Level Positions Marketing and Sales Manager Marketing Manager Sales Manager Internet Marketing ManagerProfessional Level Positions Assistant Marketing Manager Market Analyst Sales ConsultantEntry Level and Support Positions Sales Assistant Sales Host/Hostess Sr. Sales and Closing Coordinator Sales and Closing Coordinator Marketing Administrator Sales AdministratorMarketing and SalesSales ConsultantSecure contracts for purchase of new homesFacilitate mortgage capture and title capture

Sales AssistantAssist Sales Consultant with sales process while developing the skills needed to become an independent consultantAssist customers with sales processSales Host/Hostess Receive, register and direct visitorsPerform clerical duties in order to ensure an effective, efficient flow of telephone calls and visitorsProvide model toursHelp maintain neat appearance of the modelsDistribute current price lists

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Marketing and SalesSenior Sales and Closing CoordinatorSupervise daily activities of the Sales and Closing CoordinatorsEnsure closing dates are being maintained in system and communicated to customerEnsure contract cancels/switches/deposits are processed in a timely mannerPerform sales and closing duties

Sales and Closing CoordinatorPerform sales and contract administrationConfirm and prepare preliminary closing figuresCoordinate settlement processes with construction, mortgage, buyer and title company

Marketing or Sales AdministratorPerform administrative activities in support of the department

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