SBMC - Sales Promotion Campaign (Lead Generating)
Lead Generating Sales Promotion
The goal of a lead generating sales promotion is to use a FREE special offer to generate leads. The idea is to create hype around the brand and give potential customers something FREE to get excited about.
The goal of course is to generate a lot of leads that can be qualified and passed on to the sales team and guided through a sales process. The end goal is increases sales!
Goals of Sales Promotion
Creates immediate action
Stimulate short time demand
Encourage brand switching
Induce trial use
Promote price orientation
Obtain immediate measurable results
ELITE CHESS LEAD GENERATING SALES PROMOTION CAMPAIGN
Elite Chess Lead Generating Sales Promotion Details
2. Welcome email
3. Email engagement sequence with blog post
5. Gift after tournament (landing page)
6. Follow up email
7. Additional free gift (course) [transitional call to action]
8. Email with course results and prize
9. Prize redemptions
10. Sales calls with players and parents.
Discuss in detail the various steps that your lead generating sales promotion campaign will have in order to get customers into a sales call. (Brainstorm)
Transitional calls to action
Remember, in many cases customers may not opt in to a sales call after or during the campaign. Even though they are getting great value from your brand and it is clear they really need what else you can provide.
This is okay. It means that they are not yet ready to buy. So you need to create a transitional call to action that you can offer them. This is an additional FREE gift which helps them to move further along the sales funnel, become more comfortable with your brand, and become more prepared to buy.
Accountant: a free online course explaining everything you need to know about tax compliance in South Africa. Or a monthly email with all the updates of accounting law in South Africa.
Baker: Monthly video on all the latest event trends and how this affects event planning and cake decisions.
Chiropractor: Free online video course showing how various exercises to help back pain.
Discuss the transitional call to action that you can give to customers if they do not opt in to a sales call.
Creating effective sales promotions
Set specific objectives: Undirected creative work is a waste of time and resources.
Set a theme that is relevant: Start with a strategy that is in sync with marketing or advertising plan.
Involve the trade: Build relationships with the intermediaries.
Coordinate promotional efforts with the marketing plan: Be sure to coordinate all schedules and plans. For example a consumer promotion should occur simultaneously with a trade promotion.
Understand how basic promotion techniques work: For example, a sweepstakes shouldn't be used to encourage multiple purchases or a refund to get new customers. A price-off deal can’t reverse a brand's downward sales trend.
Use simple, attention-getting copy: Most promotions are built around a simple idea. Emphasise the idea and don't try to be cute.
Use contemporary, easy to track graphics: It is not possible to fit 200 words and 10 illustrations into a half page freestanding insert.
Communicate the concept clearly: Words and graphics must work together to get the message across.
Reinforce the brand’s advertising message: Tie promotions in with the advertising campaign.
Support the brand’s positioning and imaging: This is especially important for image sensitive products such as cosmetics and fashion.
Determine which media will work best: For example, show samples be distributed in stores, door-to-door or via direct mail.
Pre-test promotions: Pre-testing does not need to be on a large scale and expensive. Small samples in a couple of stores can reveal how to maximise a sales promotion tool, such as a coupon, by testing various values, creative approaches and delivery methods
Sales Promotion Plan Framework
Define the target audience
As stated in the definition earlier in this unit, sales promotion can be targeted to four distinct target audiences:
1. The marketer's own salespeople or other employees targeted such as technical sales support people or telemarketers, often referred to as internal sales promotions.
2. Intermediaries, resellers or trade (wholesalers, retailers, dealers, franchisees, buyers, brokers and distributors).
3. Business buyers (employees who make purchases for company use).
4. The marketer's end-user consumers.
It may also be used anywhere in the marketing channel: Manufacturer to wholesaler, wholesaler to retailer, retailer to customer or manufacturer to customer. The sales promotion target audience is the group at whom a particular sales promotion is directed.
Elite Chess Example
Target market: Club chess players in Cape Town and their parents. Specifically players who have a rating of 1700 and below on Lichess.
Who is the target market of the promotion?
Set the objectives
The sales promotion objectives are derived from the marketing communication overall objectives, though the main goal of the majority of sales promotion programs is to increase sales of a brand whether the promotion is aimed at the salespeople, intermediary or consumer.
Consumer sales promotion objectives
As the use of different sales promotion techniques continues to increase, companies must give consideration to what they hope to accomplish via their promotions and set clearly defined objectives and measurable goals. While the basic goal of most sales promotion activities is to increase sales, there are a number of sought after objectives:
Targeting a particular market segment – contests, sweepstakes, events, coupons, and samplings are very effective ways to reach specific geographic, demographic, psychographic and cultural markets. Sales promotion programs can also be targeted to specific user-status groups such as nonusers or light versus heavy users.
Building brand equity – contests, sweepstakes and premium offers are often used to draw attention to an ad and increase consumers' involvement level by encouraging them to interact with the brand. For example a mother and child may find that a contest was fun and relevant to both of them, hence contributing to brand equity
Disrupt competitors' strategies - sales promotions motivate consumers to buy in larger quantities or try new brands, so if a company knows that one of its competitors has launched a new brand or embarked upon a new advertising campaign, a well-timed sales promotion offering large discounts or extra quantity can have a major impact on competitors' efforts.
Enhancing integrated brand promotion – sales promotion adds value when used in conjunction with advertising, direct marketing, public relations and other communication programs.
Introduce a new brand - sales promotion attracts attention and motivates trial purchase, consequently it is commonly used for new brand introduction.
Defending current customers - one way is to get your customers to stock up with the product - by using special price promotions, coupons or bonus packs - taking them out of the market for a certain time reduces the likelihood they
will switch brands in response to a competitor's promotion.
Encourage trial and repeat purchases - thousands of new products are introduced to the market every year and as many as 90% of them fail within the first year. Sales promotions can reduce the consumer's risk of trying something new. A reduced price, rebate, or free sample may stimulate trial purchase. Onpackage coupons or the accumulation of points with repeated purchases keep consumers loyal to particular products.
Encourage larger purchases or increasing purchases of an established brand - price reductions or two-for-one sales can motivate consumers to stock up on a brand, allowing companies to reduce stock levels and or increase cash flow. One way to increase product consumption is by identifying new uses for the brand. Sales promotion tools such as recipe books or calendars that show various ways of using the product often can accomplish this. Another strategy is to use promotions that attract nonusers or users of competing brands by giving them an incentive to switch, such as a coupon, premium offer, bonus pack, or price deal. One of the most successful promotions to attract users of a competing brand was the Pepsi Challenge. Pepsi challenged consumers to taste Coca-Cola and their brands in blind taste tests and was support with trade sales promotions, as well as coupons.
Elite Chess Example Objectives
Brand awareness: This is the launch of the brand, so it will be used to generate awareness for the brand and its offerings amongst the target market.
Build brand equity: this competition will encourage consumers to interact with the brand and hopefully grow their love for the brand.
Target a particular market segment: Club players under 1700 rating points on Lichess. These are players that generally need coaching assistance to improve.
Integrated promotion: integrate the promotion with the website so that consumers can view the web pages and become familiar with the website.
Generate leads: The main goal of this campaign is to generate leads for the business.
Encourage trial: the leads gained through the promotion will be encouraged to pick a package to trial the coaching service.
What are the objectives for your promotion?
Develop the Strategy
Consumer sales promotions induce consumers to seek out or demand the product that ultimately leads to the product being pulled through the channels and motivates the trade to stock and promote it. Products with favourable demand due to unique benefits, superior advantages and popularity among consumers may use a pull strategy.
Other decisions - it is essential that all sales promotion efforts are carefully integrated with other elements of the marketing communication program. The following should be considered to develop an effective sales promotion strategy:
Incentive: The incentive should be carefully selected so that it is attractive to the target audience. The size of the incentive should also receive careful consideration, in that if it is too small, it would receive little or no attention from the target audience, but if it is too attractive, it might lead to no or low profitability. Pre-testing should be done to see if the incentive is large enough to induce the desired response and adjustments made if necessary.
Lead and sell off time: How the incentive is to be distributed must be meticulously planned. All material (coupons, sweepstakes, contest entry forms, premium offers and even samples) must be transported to the final locations/resellers on time and set up if required. The sell off time is the cleaning up months after the campaign has ended – for example reseller will send all the coupons to the manufacturers for redemption.
Criteria for participation: The criteria for participation in the promotion must also be very carefully planned so as the promotion actual achieves its’ desired objectives – for example consumers should send in the original bar codes and
not copies of the packaging.
Duration: The buying cycle of the product needs to be examined. A typical sales promotion campaign should run over at least two buying cycles.
Timing: The sales promotion campaign must strategically fit in with advertising and other promotions (such as pre-, mid- and post season sales). The consumers are more likely to redeem a coupon or sample the product if advertising takes place in conjunction with sales promotions.
Elite Chess Example Strategy
Pull promotion designed to pull consumers into the Brand Ecosystem and move them along the sales funnel to encourage trial.
Incentive: Participate in the chess tournament and receive a FREE 5 minute game analysis with tips to improve. Also, the top players will receive free coaching sessions as prizes.
Lead and sell off time: We created a flyer to be distributed via social media and whatsapp, and a web page where people need to register. We also formed a relationship with a national organisation (SA Chess Hub) to facilitate the tournament registration for us and invite their members to join. Coach Dione will need to create each 5 minute video before the next tournament and this will need to be placed on the website for each individual player with a CTA for a Breakthrough Improvement Video Call. And winning players will need to book their coaching sessions and Dione will need to do these sessions before the next tournament.
Criteria for participation: All chess players who have a rating of 1700 or less on Lichess. They must join the online tournament at the set time and participate.
Duration: The campaign will involve three similar tournaments. One each week for three weeks. This will be used to generate momentum and encourage others to join in as time progresses and as they hear about the benefits of participating.
Timing: We started the advertising a week before the competition. and will continue to advertise each new tournament similarly.
Discuss your promotional strategy.
Select the sales promotion tools/techniques to be utilised
There are a variety of tools that can be used to facilitate a sales promotion:
Refunds or rebates
Price off deals
Check from page 305 of your Sales Promotion Chapter (7) for all the various types of sales promotional tools and techniques. See here:
You need to choose your sales promotion technique very carefully. It needs to achieve the objective for the campaign. In this case the goal is to give consumers something FREE which will enable the sales team to connect with them so that they can help move those leads further along the sales funnel. (Goal is Lead Capture and Lead Nurture)
Chiropractor: A chiropractor employs a masseuse to give people free massages. While doing these massages the masseuse gives the lead feedback of work that needs to be done on their back to help fix their problem. They then help them book a consultation with the chiropractor.
A dentist offers FREE teeth whitening for a select number of people each week. While whitening their teeth he gives them feedback on what work they need done on their teeth. He then helps them book an appointment and offers them a special discount on the spot to encourage trial.
Baker: Free cake testing evening events for all people who are planning a wedding. At the event there are various types of cake flavours which the couples get to taste. At the event they can mingle with other couples who are getting married and be given some help on choosing the best cake for their wedding based on the theme. On the day they are given a special offer to encourage them to book their wedding cake with the baker.
Online store: Purchase R200 of products and you will get FREE delivery, and you will stand a chance to win a special prize. All you need to do is review the products you bought on the website and share your review with your friends via social media. (There is no other way to get people to try an online store service without them actually purchasing products. In this case the FREE offer is the FREE delivery).
Naturally Good products: Host an event where they do seminars on healthy living. Promote the products on their website. Special discounts on hampers of a variety of products. (f2f event or a online webinar styled event).
Elite Chess Example
Through the competition, tournament participants all receive a FREE video game analysis of all their games with tips on how to improve. Also, the top players receive free coaching sessions. The goal of these FREE gifts is to give leads an opportunity to try the service out for free without any obligations to purchase. The goal of the tournament is to give leads and opportunity to connect with the brand before deciding to purchase.
Which tool will you use and why?
Determine the budget
The sales promotion budget is part of the overall marketing communication budget and distributed between all the promotion elements, but the allocation largely depends on factors such as the promotional objectives of the campaign, market and competitive situation and the brand’s stage in its life cycle.
Such promotions do not have to be expensive. In many cases it will only cost you some time and effort.
Dentist: some teeth whitening product and 20 minutes of time per patient.
Chiropractor: The cost of the masseuses
Baker: The cost of the sample cakes and drinks for couples
Online store: the delivery cost per customer and the prize.
Naturally good: pay for the event/ webinar.
Elite Chess Example
The tournament is not costing us anything accept time. Also, the 5 min video game analyses and the coaching prizes is also only costing some time. So the budget is only the cost of the marketing consultant.
What is the budget for the promotion?
Implement & coordinate the sales promotion
Implementation: In order to implement any marketing programme effectively an intricate plan is required. In short, the plan should specify - who will do what, when and how it will be done?
The who refers to the people that are given the responsibility for the achievement of the specific sales promotion objective.
The what refers to all the particulars of the sales promotion campaign. The when refers to the timing of the sales promotion campaign. The how refers to the tactical/actual implementation specifics of the campaign.
Coordination: To integrate the advertising and sales promotion programs successfully, the theme of consumer promotions must be linked with the advertising and positioning theme.
Sales promotion tools/techniques must communicate the brand's unique attributes or benefits and reinforce the sales message or campaign theme.
The media advertising should be used to draw attention and inform consumers of a promotional offer, as well as to create awareness, interest, and favorable attitudes toward the brand.
The use of advertising together with a sales promotion program, make consumers aware of the brand and its benefits and increase their responsiveness to the promotion. Furthermore, product trial created through sales promotion techniques such as sampling or high-value coupons is more likely to result in long-term use of the brand when used with ATL advertising.
Discuss how the campaign will be implemented and coordinated.
Evaluate the effectiveness
An analysis of sales before, during and after the campaign is the most common measure utilised in the evaluation of sales promotion campaigns effectiveness.
There is usually notice a dip in sales directly after the campaign as consumers have stocked on the product and the results achieved can be used to guide future sales promotion campaigns.
The measurable aspects of a sales promotion campaign such as entry forms, SMSs and coupon redemption or are a good indication its success.
Mall intercepts and consumer focus groups are frequently used to see whether consumers have noticed and participated in the promotions when non-measurable sales promotion tools are used.
Elite Chess Example
We will track the amount of players that participate in the tournaments, how many watch and respond to their game analysis videos, how many agree to a 30 minute video call, and how many sign up to the starter package.
Discuss how the effectiveness of the campaign will be evaluated.
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