Sales Promotion Strategies and In-Store Communication Tactics
Item 13: The Prescriber’s Influence
Concept and Features of Promotion
Promotion informs consumers about products and brands. Tools include advertising, sales promotion, and public relations. Sales promotions encourage product trial.
Features of Sales Promotion:
- Incentivize purchase
- Short-term incentives
- Immediate effects
Internal Motives:
- Companies seek short-term results
- Numerous new products enter the market
- Improved decision-making
External Reasons:
Objectives of Sales Promotion
The main objective is increased sales. Other objectives include:
Sales-Related:
- Enhance salesperson effectiveness
- Develop product sales
- Increase sales to specific customers
- Provide product/company information
Intermediary-Related:
- Enhance brand preference
- Improve stock rotation
- Increase order purchases
- Expand distributed product range
Prescriber-Related:
- Communicate product characteristics
- Gain brand recommendations
- Build brand image
Consumer-Related:
- Increase consumer base
- Increase average purchase value
- Encourage product trial
- Increase point-of-sale traffic
- Increase store loyalty
- Increase purchase frequency
Instruments of the Sales Operation
Instruments are classified by target audience:
Intermediaries:
- Exhibitions and trade fairs
- Competitions, contests, and prizes
- Discounts and premiums
- Shows and giveaways
- Point-of-sale advertising
- Cooperative advertising and promotion
Sellers and Prescribers:
Sales competitions, contests, prizes, travel discounts
Consumers:
Discounts
Discounts are commonly used. A well-known example is the instant rebate.
Instant Rebate:
Reduces product price at the time of purchase.
Advantages:
- Strong customer impact
- Easy to apply
- Quick implementation
- Flexible
Disadvantages:
- Price reductions may raise quality concerns
- Customer infidelity after the offer ends
- Lower margins and promotional costs
Vouchers
A voucher reduces the product price on the next purchase.
Voucher Delivery:
- Inside product packaging
- In-store
- Via email
- Via newspaper/magazine
Gifts
Gifts are given with product purchase.
Gift Types:
Gifts can be related or unrelated to the product.
- Immediate gift, given at purchase
- Deferred gift, mailed later
Contests and Sweepstakes
Contests require consumer participation to win prizes. They differ from sweepstakes.
Samples
Samples allow customers to try products without buying.
Item 14: Communication and Activities
Communication
Communication informs consumers about products and brands.
Objectives:
- Attract consumer attention
- Convey messages
- Drive purchase through direct reactions
Types:
- Permanent communication (lighting, decor, signage)
- Flashing communication (seasonal changes, anniversaries)
Media Classification:
- Physical media (shelf headers, islands, displays)
- Psychological media (promotions, multiple exposures)
- Stimuli media (music, messages, PA advertising)
- Personal media (salespeople, hosts, celebrities)
Point-of-Sale Advertising
Advertising is a frequently used communication medium.
Types of Advertising:
- Mass media advertising (radio, TV, magazines)
- Direct advertising (phone)
- Point-of-sale advertising (unconventional methods)
In-store advertising informs customers. Materials used: posters, PA advertising, displays, packaging.
Posters
Posters decorate, indicate price/location, or provide product information.
Types:
- Reminder posters
- Indicator posters (guide customer movement)
- Price posters
Shapes: rectangular, square, oval, circular, arrow. Colors vary. Placement is crucial.
Placement:
- Never cover products or other posters
- Select appropriate height (roof, intermediate, output levels)
Furniture
Furniture influences store image, directs customer movement, and distinguishes sections.
The gondola is a key furniture piece.
Types of Furniture:
- Gondola
- Back-to-back
- Bull basket
- Display containers
- Panel
- Checkout counter
- Checkout stand
- Packing presenter
- Floor stand
- Mural
- Display
Music
Music is important but underutilized. Its rhythm affects customer circulation speed.