sales promotion objectives. Measuring Trade Promotions This section will outline the steps required to implement an effective trade promotion campaign. Monitor, Report, and Analyze - Monitor the campaign closely and use our Trade Promotion ROI Calculator determine the return on your investment. Objective-and-Task-Method : The objective-and-task method calls upon marketers to develop their promotion budgets by defining their specific objectives, determining the tasks that must be performed to achieve these objectives and estimating the costs of performing these tasks. By measuring the incremental increases in sales volume relative to the costs of the trade promotion campaign, marketers can identify which trade campaigns provide the most return on investment and optimize their trade plan by investing in the most effective trade channels and promotions. It leads to an uncertain annual promotion budget, which makes long range market planning difficult. Can use multiple mediums.
It may carry selling messages and information about the product. Coupons : Grant savings on specified products. Affordable Method: Many companies set the promotion budget at what they think the company afford. Percentage of Sales Method: Many companies set their promotion expenditures at a specified percentage of sales or of the sales price.
The audiences response to the message source helps determine the effectiveness of the message. Types of Trade Promotions. Identifying the target audience is the main task of a sales promotion communication. There are no grounds for believing that the competition knows better than the company itself what it should be spending on promotion. Competitive-Parity Method: Some companies set their promotion budget to achieve share-of-wise parity with their competitors. Category Optimization - Continue to test monitor campaigns and implement profit maximizing tactics. He has not only to inform the customers but persuade them to buy. The resources and sales potentials are estimated before the formulation of budgets. Receive a free bar of soap with purchase of body wash). Sales promotion strategy involves identification of objectives, effective communication for attracting attention, allocation of budget, determining the correct promotional mix, introduction of strategic approach and finally evaluation. Sales promotion tasks should be objective oriented.