Setting Sales Promotion Objectives

Sales promotion objectives vary widely. Let us take consumer promotions first. Sellers may use consumer promotions to: (1) increase short-term sales; (2) help build long-term market share; (3) entice consumers to try a new product; (4) lure consumers away from competitors' products; (5) encourage consumers to load up' on a mature product; or (6) hold and rew.ard loyal customers.

Objectives for trade promotions include: (1) moti vat ing retailers to carry new items and more inventory; (2) inducing them to advertise the product and give it more shelf space; and (3) persuading them to buy ahead.

For the sales force, objectives may be to; (1) prompt more sales force support for current or new products; or (2) stimulate salespeople to sign up new accounts.

Objectives should be measurable. Rather than stating that the promotion aims to increase sales, the objective should be specific about the level of increase, who the main targets are and whether increased sales are expected to come from new trialists or from current consumers who are loading up or bringing forward their purchase.

In general, sales promotions should be consumer relationship building. Rather than creating only short-term sales volume or temporary brand switching, they should help to reinforce the product's position and build long-term relationships with customers. Increasingly, marketers are avoiding the 'quick fix', price-

cons umcr relationship -building promotions

Sales promotions that promote the product's positioning and include a selling message along •with the deal.

led promotions in favour of promotions designed to build brand equity. For example, in France, Nestle set up roadside Relais Bebe centres, where travellers can stop to feed and change their babies. At each centre, Nestle hostesses provide free disposable nappies, changing tables, high chairs and free samples of Nestle baby food. Each summer, 64 hostesses welcome 120.000 baby visits and dispense 6,000,000 samples of baby food. This ongoing promotion provides real value to parents and an ideal opportunity to build relationships with customers. Nestle also provides a freephone number for free baby nutrition counselling.-14

Even price promotions can be designed to build customer relationships. Examples include all the 'frequency marketing programmes' and 'clubs' that have mushroomed in recent years. If properly designed, every sales promotion tool has consumer relationship-building potential.

samples

Offers to consumers of a trial amount of a product.

coupons

Certificates that give buyers a saving when they purchase a product.

cash refund offers (rebates)

Offers to refund part of the purchase price of a product to consumers who send a 'proof of purchase' to the manufacturer.

price packs

Reduced prices that are marked by the producer directly on the label or package.

premiums

Goods offered either free or at low cost as an incentive to buy a product.

Continue reading here: Consumer Promotion Tools

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