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Sales Promotion and Merchandising
1. Define the terms sales promotion andmerchandising.
2. Explain the six roles of sales promotion andmerchandising.
3. Describe the steps involved in developing asales promotion and merchandising plan.
4. Explain the difference between specialcommunication methods and special-offerpromotions.
5. List the various sales promotion techniquesavailable.
6. Explain the role and advantages of eachsales promotion technique.
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Roles of Sales Promotion and Merchandising
1. Getting customers to try a new service ormenu item.
2. Increasing off-peak sales.
3. Increasing sales in periods that coincide withmajor events, vacations, or specialoccasions.
4. Encouraging travel intermediaries to make aneffort to sell services.
5. Helping sales representatives get businessfrom prospects.
6. Facilitating intermediary sales.
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Steps in Developing a Sales Promotion and Merchandising
Plan
1. Set sales promotion and merchandisingobjectives.
2. Choose between in-house advertising oragency development.
3. Establish a tentative sales promotionand merchandising budget.
4. Consider cooperative sales promotions.5. Select sales promotion and
merchandising techniques.
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Steps in Developing a Sales Promotion and Merchandising
Plan
6. Select media for distributingpromotions.
7. Decide on timing of sales promotions
and merchandising.8. Pretest sales promotions and
merchandising.
9. Prepare final sales promotion andmerchandising plan and budget.
10. Measure and evaluate sales promotionand merchandising success.
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Difference between Special Communication and
Special Offer Promotions
Special communication methods: Give thepromoter additional options ofcommunicating with potential customers
and travel trade intermediaries. Special-offer promotions:Short-term
inducements given to customers, traveltrade intermediaries, and sales
representatives. Generally, some type ofaction must take place from the potentialcustomer.
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Special Communication Methods
a. Specialty advertising
b. Sampling
c. Trade and travel show exhibitsd. Point-of-purchase displays and other
merchandising materials
e. Point-of-purchase demonstrations
f. Educational seminars and trainingprograms
g. Visual aids for sales representatives
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Special-Offer Promotions
a. Coupons
b. Price-offs
c. Premiumsd. Contests, sweepstakes, and games
e. Recognition programs
f. Continuity programsg. Gift certificates
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Roles and Advantages
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Specialty Advertising
Role:
Free items given to potential
customers or travel trade intermediaries.
Advantage:
Flexibility of use.
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SamplingRole:
Giving away free samples of items toencourage sales, or arranging in some
way for people to try all or partof a service.
Advantage:
Gives the recipient a first-hand look at the
product and encourages future sales if therecipient is pleased with the services
offered.
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Trade and Travel Show Exhibits
Role:
Bringing together all parts of the industry(suppliers, carriers, intermediaries, and
destination marketing organizations) at onelocation to show-off their services.
Advantage:
They offer the exhibitor a highly specializedtarget audience and an efficient alternative to
making sales calls to thousand of prospects.
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Point-of-Purchase Displays and Other
Merchandising Materials
Role:
Used at the point of purchase.
Advantage:
Keeps image of service/product in the
minds of its customers longer.
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Point-of-Purchase Demonstrations
Role:
Provides the customer with up-to-date
and current sales promotions whilevisiting establishment.
Advantage:
Entices and encourages patrons topurchase a service on the spot.
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Educational Seminars and
Training Programs
Role:
The primary objective is to pass on more
detailed information and to help travel
agents sell services to clients.Advantage:
They offer the sponsor a highly targeted
and influential audience.
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Roles and Advantages
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Coupons
Role:
Vouchers or certificates that entitle
customers or intermediaries to a reducedprice on the couponed service or services.
Advantage:
Coupons deliver greater value in the form
of a price reduction to the consumer, thus
creating more potential customers in thefuture.
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Price-Offs
Role:
A price reduction that does not
involve using a coupon.Advantage:
These are popular because they can
be introduced almost immediately.
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Premiums
Role:
Merchandise items that are offered
at a reduced price or free with thepurchase of services or products.
Advantage:
When consistent with the sponsors image(position) and target market, the potential
for sales increases are great.
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Contests, Sweepstakes, Games
Role:
Contests are sales promotions whereentrants win prizes based on some required
skill that they are asked to demonstrate.Sweepstakes are sales promotions thatrequire entrants to submit their names and
addresses.
Games are sales promotion events similarto sweepstakes, but they involve using
game pieces.
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Contests, Sweepstakes, Games
Advantage:
Increases advertising readership,
are helpful in communicating key benefits, andare good at
elevating awareness of the
sponsors services.
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Travel Trade Inducements
Role:
Specialty advertising items, familiarizationtrips, sweepstakes, and educational
seminars.Advantage:
Promotes the product/service to traveltrade intermediaries and or potential
consumers in order to increase awarenessof this product/service so that increased
sales are eminent.
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Recognition Programs
Role:
Offers awards to travel trade
intermediaries, sales representatives,
or customers for achieving or
providing certain levels of sales or
business.
Advantage:Increases the use of the sponsors
services and often increases future
sales goals.
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Continuity Programs
Role:
Sales purchases that require people to
make several purchases, sometimes over
a long-term period of time.
Advantage:
Increases the partnerships in marketing
hospitality and travel with other industriesservices, stimulates more frequentpurchases and or builds long-term loyalty
for a company or brand.
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Gift Certificates
Role:
Vouchers or checks given away by
the sponsor or sold to customers who,
in turn, give them to others as gifts.
Advantage:
Encourages recipients to try the
services thus inevitably increasesawareness of the service and future
sales.