Designing of sales promotion programs

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Designing of sales promotion programs

Post  MirandaJeffrey on Thu Mar 10, 2011 3:21 pm

Most of the sales promotion programs are designed on the basis of experience. Conducting pre-tests can determine if the tools are appropriate, whether the incentives are optimal and the efficiency of the presentation methods. Consumers can be asked to rate and rank different possible deals. Conduct of trial test in limited geographical area is also a way to identify the efficiency and effectiveness of the program. Marketing managers must prepare implementation and control plans that cover lead time and sell in time for each individual promotion.
Lead time is the necessary time required to prepare the program prior to launching it. Initial planning, design and approval of package modifications, preparation of advertising and point of sales materials etc comes under this. Sell in time begin with the promotional launch and end when approximately ninety five percent of the deal products is in the hands of consumers. Manufacturers can evaluate the program using sales data, consumer surveys and experiments. Sales promotion work best, when they attract competitors customers who then switch into ourís or to different brands. If the companyís product is not superior, the brandís share is likely to return to its pre promotional level.
Customer surveys can be conducted to learn, how many recall the promotion, what they thought of it, how many really took advantage of it and how the promotion affected the subsequent rand choice behavior. It can also be evaluated through attributes such as incentive value; duration and the type of distribution media. There are additional costs of specific promotions. Promotion might decrease long run brand loyalty. It can also be more expensive than they appear to be as the economic situations of these days are rapidly changing. Model required will be evaluated and finalized based on all the promotional based costs.

MirandaJeffrey

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