★ Why Use Sales Promotions?
Sales promotions help businesses to:
- Increase sales quickly
- Clear old stock
- Attract new customers
- Encourage repeat purchases
- Counter competitor actions
- Build customer loyalty
Marketing Mix » Sales Promotions and Public Relations
What you'll learn this session
Study time: 30 minutes
- The role of sales promotions in the marketing mix
- Different types of sales promotion techniques
- How to evaluate the effectiveness of sales promotions
- The purpose and importance of public relations
- PR tools and techniques businesses use
- How to manage PR during a crisis
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Unlock This CourseSales Promotions in the Marketing Mix
Sales promotions are short-term incentives designed to encourage customers to buy a product or service. They are a key element of the marketing mix (alongside product, price, place and other promotion tools) and can help businesses achieve quick sales boosts.
Key Definitions:
- Sales Promotion: A short-term incentive to encourage the purchase of a product or service.
- Marketing Mix: The set of tactical marketing tools (often called the 4Ps: Product, Price, Place, Promotion) that a business blends to produce the response it wants in the target market.
- Public Relations (PR): The practice of managing the spread of information between an organisation and its public.
! Limitations of Sales Promotions
However, they also have drawbacks:
- Can be costly to implement
- May reduce profit margins
- Can damage brand image if overused
- Customers might only buy when promotions are running
- Effects are usually temporary
Types of Sales Promotion Techniques
Businesses use various sales promotion techniques depending on their objectives, target market and product type.
£ Price-Based Promotions
- Discounts: Temporary price reductions
- BOGOF: Buy one get one free
- Multi-buys: "3 for 2" offers
- Coupons: Vouchers offering money off
&gift; Value-Added Promotions
- Free samples: Try before you buy
- Free gifts: Items given with purchase
- Loyalty cards: Rewards for repeat purchases
- Competitions: Chance to win prizes
✓ Other Promotions
- Point of sale displays: Special in-store arrangements
- Product demonstrations: Showing how products work
- Trade promotions: Incentives for retailers
- Referral schemes: Rewards for recommending others
Evaluating Sales Promotions
To determine if a sales promotion has been successful, businesses need to measure its effectiveness against their objectives.
+ Measuring Success
Businesses can evaluate sales promotions by looking at:
- Increase in sales volume during the promotion
- Number of new customers acquired
- Customer retention after the promotion ends
- Return on investment (ROI)
- Impact on brand awareness
⌖ Setting SMART Objectives
Effective sales promotion objectives should be:
- Specific: Clear about what you want to achieve
- Measurable: Able to track progress
- Achievable: Realistic given resources
- Relevant: Aligned with business goals
- Time-bound: With a clear deadline
Case Study Focus: Tesco Clubcard
Tesco's Clubcard loyalty scheme is one of the UK's most successful sales promotion tools. Launched in 1995, it now has over 19 million members. Customers earn points on purchases which convert to vouchers. The real genius is in the data collection - Tesco analyses shopping habits to send personalised offers to customers. During the 2008 recession, Tesco doubled Clubcard points to retain customers when many were switching to discount supermarkets. This helped maintain their market share during a difficult economic period.
Introduction to Public Relations
Public Relations (PR) involves managing the flow of information between an organisation and its public to build a positive image and handle publicity. Unlike advertising, PR aims to obtain unpaid or "earned" media coverage.
♥ Benefits of Good PR
Effective PR can help businesses:
- Build credibility and trust
- Enhance brand reputation
- Reach audiences without direct advertising costs
- Manage negative situations
- Build relationships with stakeholders
- Support other marketing activities
☎ PR vs. Advertising
Key differences include:
- Cost: PR typically costs less than advertising
- Control: Less control over the final message in PR
- Credibility: PR often has higher credibility as it comes through third parties
- Timing: PR results take longer but may last longer
- Measurement: PR results can be harder to measure
PR Tools and Techniques
PR professionals use various tools to communicate with the public and shape perception.
@ Media Relations
- Press releases: Announcements sent to media
- Media events: Press conferences, product launches
- Interviews: With company representatives
- Feature articles: In-depth stories in publications
⊕ Digital PR
- Social media: Managing company profiles
- Blogs: Company or industry blogs
- Online press rooms: Resources for journalists
- Influencer partnerships: Working with online personalities
&handshake; Community Relations
- Sponsorships: Supporting events or causes
- CSR initiatives: Corporate social responsibility
- Community events: Local engagement
- Employee volunteering: Staff giving back
Crisis PR Management
How a business responds during a crisis can significantly impact its reputation. Effective crisis PR management involves preparation, quick response and transparent communication.
Steps in Crisis PR Management
- Preparation: Develop crisis management plans before problems occur
- Identification: Recognise when a crisis is developing
- Response team: Assemble key decision-makers
- Communication: Provide clear, honest information
- Media management: Control the narrative where possible
- Resolution: Take action to resolve the issue
- Evaluation: Learn from the experience
Case Study Focus: Cadbury's PR Crisis
In 2006, Cadbury faced a major PR crisis when salmonella was found in some of its chocolate products. Initially, the company delayed informing the public for five months, which damaged trust. When the news broke, Cadbury had to recall over a million chocolate bars at an estimated cost of £20 million. The company's share price dropped and they were fined £1 million for breaching food safety regulations. To rebuild their reputation, Cadbury launched a transparent PR campaign, improved their food safety procedures and communicated these changes clearly to the public. This case demonstrates how poor initial PR handling can worsen a crisis, but also how effective PR strategies can help rebuild trust.
Integrating Sales Promotions and PR
For maximum impact, businesses should coordinate their sales promotions and PR activities as part of an integrated marketing communications strategy.
∞ Integration Strategies
Effective ways to combine PR and sales promotions:
- Use PR to announce major sales promotions
- Create promotions that generate PR opportunities
- Design CSR initiatives that include promotional elements
- Leverage social media for both PR and promotions
- Ensure consistent messaging across all channels
✓ Success Factors
Keys to successful integration:
- Clear communication between marketing and PR teams
- Consistent brand messaging
- Understanding of target audience needs
- Measurement of combined impact
- Flexibility to adapt strategies as needed
By effectively combining sales promotions and PR, businesses can create powerful marketing campaigns that drive sales while building long-term brand value and customer relationships.