Advertising Sales Promotion
In advertising sales promotion - it is apparent that companies communicate with
their customers in a number of ways. It is important that we distinguish between
the two main varieties of communication.
Impersonal communication – e.g. point of sale, promotions,
advertising, promotions and public relations;
Personal communication ( or direct person to person) e.g.
the face to face meeting between a sales person and the customer.
The problem faced by the company planning a communication plan
is that firstly there usually is more than one person responsible for making the
purchase decision; secondly, there is the important fact that the buyer is
influenced by more than one form of communication. For example, the buyer might
use the following four sources of information:
Trade and technical press
A review of the facts above reveals the following:
More than one person in the purchasing company has an
influence on what is bought
Sales people do not see all the influencers
Companies get the information for their decisions from a
variety of sources.
It can be seen then that the buying process is quite
The purchasing manager in an organization realizes the need
for a specific product to be purchased as a solution to a problem
The characteristics and quantity of what is needed are
worked out. This is the outline design process such as deciding performance,
weight, size, operating conditions, and so on;
A specification has to be drawn up based on the above;
A search is made for suppliers. This may merely involve the
browsing through of a suppliers’ catalogue;
Potential suppliers will submit products and plans for
After the necessary trials the suppliers are selected;
The supplier delivers the product after the order is duly
The goods delivered are checked against specification;
Not all of these steps are followed in every buying decision.
When something is being bought for a new project, all the phases would be
followed. Where it is simply the replacement of something that has been bought
before, the search and even the tender processes may not be necessary. The
newness of the product being purchased also plays a role in the product being
purchased. The newness of the product is determined by;
The complexity of the product;
The commercial uncertainty surrounding the outcome of the
Preparing the advertising plan
For many years it was believed that advertising was very simple
in the sense that the company advertised and the customer received the message
and understood it. Now however, we know that the process is much more
complicated than first suspected!
Before setting the objectives for advertising we need to check
what we need to set the objectives:
The budget for advertising
Determine who the target audience is
Media to use
Measure the effectiveness of advertising
The decisions can be summarized as follows:
Copy platform (what)
Creative platform (how)
Budget (how much)
The whole process rests primarily on the first item of the list
- which is the advertising objectives.
Research has shown that many companies set objectives for
advertising which advertising cannot achieve on its own.
A machine toll company could not understand why after an
expensive advertising campaign in Germany in which they emphasized the extremely
high quality and reliability of their products they made little headway in the
market. Subsequent market research showed that their target customers already
concerned about and why they were not buying was their dissatisfaction over
delivery and customer service. This is yet another example of advertising wasted
because of ignorance of customer beliefs.
The first step is to decide on reasonable objectives for
advertising. The question that needs to be asked is can the objective be
achieved by advertising alone? If the answer is 'yes' then it is an advertising
objective otherwise it cannot be made an advertising objective.
Media advertising can achieve the following:
Setting reasonable achievable objectives, then, is the first and
most important step in the advertising plan. All the other steps are a putting
together a plan to achieve the advertising objectives.
||target audience, - what do they already know
about the product or service?
What do they know about the competitors?
What kind of people re they?
How do we describe identify them?
||Response do we wish to achieve through
Are these specific communications objectives?
||How can we embody our communications
objectives in an appealing form?
What is the evidence that we have is that is acceptable
and appropriate and acceptable to our audience?
||Which are the most cost effective places to
make our communications?
||When are communications going to be made to
What is the reasoning for our scheduling of
advertisements/ communications over time
||What results do we expect?
How are we planning to measure the results?
Do we intend to measure results and if so do we need to
do anything beforehand?
||How much money do the activities need?
How much money is available?
How is expenditure going to be controlled?
||Who is to do what and when?
How much is to be spent on what, where and when?
The usual assumption about advertising is that advertising is
deployed in an aggressive manner and that changes over time is the creative
content. But the role of advertising changes over the life cycle of the
For example, the process of persuasion itself cannot usually
start until there is some level of awareness about a product or service in the
marketplace. Creating awareness is, therefore usually one of the most important
objectives early on in a life cycle.
The term advertising is constantly referred to as 'above the line expenditure'
and can be defined as all non-personal communication in measured media. This
includes television, cinema, radio, print and outdoor media.
Sales promotion for which the term 'below the line expenditure' is used as a
synonym, is not easily defined.
In practice sales promotion is a specific activity, which can be defined as
the making of a featured offer to certain customers within a specified time
period. This means that to qualify as sales promotion, someone must be offered
something which is featured rather than just being an aspect of trade.
Sales promotion in practice
Sales promotion is a problem-solving activity designed to get customers to
behave more in line with the economic interests of the company.
Typical tasks for sales promotion are: rectifying slow stock movements;
counter-acting competitive activity; encouraging repeat purchase; securing
marginal buyers; getting bills paid on time; inducing trial purchase etc.
However, it is important to realize that, on its own, sales promotion will
not replace selling, change long term trends, or build long term customer
Types of Sales Promotion
||coupons vouchers money equivalent
||Free goods premium offers free gifts
||Stamps coupons vouchers money equivalent
||Guarantees group participation events
special exhibitions and displays
||co-operative advertising stamps coupons
vouchers for services
||Dealer loaders loyalty schemes
||Extended credit Delayed invoicing sale or
return coupons vouchers money equivalent
||Free gifts Trial offers Trade-in offers
||Guarantees group participation events Free
services Risk reduction schemes
||Stamps, coupons Vouchers for services
||Coupon vouchers Points system Money
||Coupons Vouchers Points systems Money
||Free services Group participation events
||Coupons Vouchers points systems for
services Event admission Competitions
Strategic role of sales promotion
Because sales promotion is essentially used as a tactical device, it often
amounts to a series of unconnected gimmicks to lacking any coherence. Contrary
to this advertising has been always considered as a strategic process of
building brand value over the longer term. Compare this against sales promotion
which is commonly used to help the company retain a tactical advantage.
There is no reason why there should not be a strategy for sales promotion, so
that each promotion increases the effectiveness of the next.
Sales promotion of industrial products
Industrial goods are always sold to other businesses and this has the effect
of changing the emphasis placed on certain elements of the marketing mix.
It will not be surprising then to learn that suitably adapted most consumer
goods sales promotional techniques can be applied to industrial goods.
Sales promotion plan preparation
There is wide acceptance that sales promotion is one of the most mismanaged
of all marketing functions. This can be attributed to the confusion as to what
sales promotion really is - which often results in expenditures not being
properly accounted for. Some companies record it as advertising expenditure,
others as sales force expenditure and others as general marketing expenditure -
while the loss of revenue from special price reductions is not recorded at all.
The companies can no longer afford not to set objectives or to
evaluate results after the event, or to fail to have some company guidelines.
For example, a 1 Euro case allowance on a product with a contribution rate of 3
Euro per case has to increase sales by 50% just to maintain the same level of
In order to manage a company's sales promotion expenditure more effectively,
there is one essential step that must be taken. First, an objective for sales
promotion must be established in the same way that an objective is developed for
advertising, pricing, or distribution.
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Advertising sales promotion - Learn the best techniques of using words to convince customers to buy