Sales promotion 461
Perhaps because of the limitations of the
research, sales promotion is prone to a number
of misconceptions. One frequently overlooked
point about promotions, particularly value-
adding ones, is that they are not so much a
distinct element of the marketing mix as a
customization of another mix element. Each
mix element offers different benefits to cus-
tomers (see Figure 18.2). To increase the desir-
ability of the total product offering, sales
promotions can:
Enhance the product offering’s utility by
enhancing quality, or adding extra tangible
benefits.
Improve affordability by increasing the quantity
offered, decreasing the price or easing the
payment terms. This element of promotions
may make them increasingly important in the
near future given the record levels of
consumer debt within countries like the UK
and USA (Spears, 2001).
Improve accessibility by gaining access to
distribution channels and through extras such
as free delivery.
Support the advertising, sales and PR effort to
boost the product’s visibility and credibility
through eye-catching and newsworthy
promotional materials, and by creating subjects
for advertising campaigns or discussions with
customers.
The sales promotions planning
process
Figure 18.3 illustrates a somewhat idealized
view of the steps involved in an effectively
planned promotion. Amidst the competitive cut
and thrust of marketing reality, the practical
execution will frequently involve a less orderly
decision making process. However, the key
issue is the importance of consistency between
any promotion and the overall marketing com-
munications effort. This holds good however
tactical a particular promotion might be (for
further details on the management of trade and
consumer promotions, see Shimp, 2000). The
process of planning a sales promotion has
many similarities to advertising campaigns,
including: External agencies that frequently play an
important role in planning and implementation.
A choice of media; promotions can be
delivered on-pack, on-line or in-store, via
direct mail, or in printed media including
newspapers and magazines, catalogues and
other promotional literature.
A peculiar jargon, which can be decoded using
theMacmillan Dictionary of Marketing and
Advertising(Baker, 1998).
Codes of practice, regulatory bodies and
complex legal requirements which influence
their development. Promotions are bound by
the same laws as advertising, and also by more
specific legislation such as the Lotteries and
Amusements Act 1976, or the Price Marking
(Bargain Offers) Order 1979 (for full details,
see Circus, 1998).The major differences in planning for
advertising and promotions occur during cam-
paign objective setting and evaluation. In terms
of objective setting, promotions present a more
complex set of possible alternatives than adver-
tising. In addition to encouraging sales or
product trial, promotions are used by market-
ers to pursue a wide range of other strategic
and tactical objectives (Peattie et al., 1997),
including: Creating awareness or interest.
Overshadowing a competitor’s promotional or
other activities.
Deflecting attention away from price
competition.
Reinforcing advertising themes.
Developing a relationship with customers.
Gathering consumer information.Trade promotions can aim to: Encourage or reward sales efforts from
intermediaries.