Ch.21 ASP

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    Sales Promotion

    Key Decisions When Developing theSales Promotion Program:

    Size of the incentive

    Conditions for participationPromotion and distribution of the actualsales promotion program

    Length of the promotional programEvaluation

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    Planning of Sales promotionalCampaign

    1.Marketing research2. Identifying target market(s)

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    3. Message:

    A promotional campaign is designed to try to make

    customers more aware of a product, brand orservice.

    Getting the right message across is thereforeimportant

    Message should be clear and unambiguous is vital

    4. Budget :

    Most promotional campaigns will have to work within

    a pre-determined budget. This will give planners some idea of what they have

    available to spend, Also help planner to determine

    the type of promotional media used

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    5. Time Frame :

    When the campaign is scheduled to run, for how long

    and the long term plans need to be considered. There are different format for running any campaign

    Eg- A campaign might initially run for four weeks andthen be 'rested' to return after a few months

    6. Evaluation : Assessing how the campaign has gone in relation to

    its objectives will be essential in informing the futuredirection of subsequent campaigns

    There may be a number of things that happenedduring the development of the campaign that willneed to be addressed by the team.

    This will help them to plan new campaigns more

    effectively

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    Sponsorship

    Sponsorship is a process by which acompany, organisation or individualprovides an individual organisation withfunds, products or services for commercialadvantage.

    When companies support an event like

    sport event, show, or charity

    Financially or donate product/service

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    Sponsorship (Cont.)

    Objectives:

    1) Generation of awareness

    2) Promotion of positive message about

    the product or company

    4 Types of SPONSORSHIP:

    1. Event-related sponsorship

    2. Broadcast/Program sponsorship3. Cause-related sponsorship

    4. Ambush Marketing

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    1. Event-related sponsorship

    i.e. sponsoring soccer competition or activity

    Increase awareness or improve image

    2. Broadcast/Program sponsorship

    A brand can sponsor a sports program,weather forecast

    Billboarding: mentioning the name of asponsor

    Product placement: sponsor's product beingused during the program to show to theaudience

    i.e. series

    Types of Sponsorship

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    3. Cause-related sponsorship A combination of PR, Sales Promo, and corporate

    philanthropy , based on profit-motivated giving to goodcauses

    Not just Charity, but Charity + integration of company'scommunication strategy

    4. Ambush Marketing

    Promotional stunts used at events by companies that

    are not official sponsors.

    Typically occurs when one big brand is trying to dilute

    the presence of a rival that is sponsoring an event,thus diminishing the return on the official sponsor's

    investment. For example,

    Nike ran its own soccer competition against the World Cup

    whose official sponsor was Adidas.

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    Why Sponsorship ?

    To increase sales

    Develop customer loyalty

    Heighten brand awareness

    Develop new market Develop business to business relationships

    Launch new brands

    To develop community relations To change or revitalise brand image.

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    Advantages of SponsorshipFor the Sponsor

    PUBLICITY FINANCIAL

    IMAGE

    For The Event

    EXTRA INCOME - RAISES STANDARDS

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    Disadvantages of Sponsorship

    FOR THE SPONSOR

    POOR VALUE

    BAD IMAGE

    FOR THE EVENT

    DEPENDENCE ON SPONSOR