Sales Promotion: How to Create, Implement and Integrate Campaigns that Really Work

281 Pages·2010·1.22 MB·English

by  Roddy Mullin

i
Sales
Promotion
How to create, implement
& integrate campaigns
that really work
5th Edition
Roddy Mullin
Based on the original work by
Julian Cummins and Roddy Mullin
ii
Publisher’s note
Every possible effort has been made to ensure that the information contained in this
book is accurate at the time of going to press, and the publishers and authors cannot
accept responsibility for any errors or omissions, however caused. No responsibility for
loss or damage occasioned to any person acting, or refraining from action, as a result
of the material in this publication can be accepted by the editor, the publisher or
either of the authors.
First published in Great Britain in 1989 by Kogan Page Limited
Second edition, 1998
Paperback edition, 1999
Third edition, 2002
Fourth edition, 2008
Fifth edition 2010
Apart from any fair dealing for the purposes of research or private study, or criticism
or review, as permitted under the Copyright, Designs and Patents Act 1988, this publi-
cation may only be reproduced, stored or transmitted, in any form or by any means,
with the prior permission in writing of the publishers, or in the case of reprographic
reproduction in accordance with the terms and licences issued by the CLA. Enquiries
concerning reproduction outside these terms should be sent to the publishers at the
undermentioned addresses:
120 Pentonville Road 525 South 4th Street, #241 4737/23 Ansari Road
London N1 9JN Philadelphia PA 19147 Daryaganj
United Kingdom USA New Delhi 110002
www.koganpage.com India
© Julian Cummins, 1989, 1998; Julian Cummins and Roddy Mullin, 2002, 2008, 2010
The right of Julian Cummins and Roddy Mullin to be identifi ed as the authors of this
work has been asserted by them in accordance with the Copyright, Designs and Patents
Act 1988.
ISBN 978 0 7494 5704 4
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Mullin, Roddy.
Sales promotion : how to create, implement and integrate campaigns that
really work / Roddy Mullin. — 5th ed.
p. cm.
Includes index.
ISBN 978-0-7494-5704-4 1. Sales promotion.
2. Marketing. I. Title.
HF5438.5.M85 2010
658.8(cid:2)2—dc22
2009043351
Typeset by Saxon Graphics Ltd, Derby
Printed and bound in India by Replika Press Pvt Ltd
iii
Contents
List of case studies vi
Foreword ix
Preface to the fi fth edition x
Introduction 1
PART I
1. Starting with the customer 11
Customers and their behaviour 11; Why do you need to start
with the customer? 14; The new marketing mix – the offer, the
six Cs and matching the customer expectation 17; It’s all in the
mind of the customer 19; Sales promotion and ethics 22; Case
studies 24
2. The business and marketing purpose behind sales promotion 27
Introduction to the business process 27; The promotional
mix 30; Business and marketing objectives 33; Value and price
36; Marketing tactics and strategies 38; The marketing plan 40;
Case studies 42
3. What sales promotions can do 45
The 12 core promotional objectives 45; Case studies 55
4. How to use promotions 60
From promotional objective to promotional brief 60;
Promotional mechanics 63; Case studies 66
5. How to be creative 73
Types of creativity 73; Creative promotions case studies 74;
Thinking creatively 77; Creative techniques 80; Practice makes
perfect 82; Making the most of your idea 82; Case studies 84
iv Contents
6. How to use suppliers 87
Sales promotion agencies 88; Handling houses 93; Point-of-
purchase manufacturers 94; Promotional risk management
companies 97; Specialist printers 100; Field marketing
agencies 101; Premium sourcing houses 102; Case studies 104
7. How to implement a promotion 106
The components 106; A structured process 112;
Implementation 116
8. Self-regulation and the law 118
Self-regulation in the United Kingdom 119; UK law 122; The
European dimension 123; Case studies 123
9. Marketing accountability and research 127
Doing marketing accountability and research 127; Marketing
accountability: how to defi ne success, set KPIs, and measure and
evaluate promotions 127; Research 132; Case studies 137
PART II
10. Off-the-shelf offers 141
Free accommodation 141; Holiday vouchers 143; Discount
coupons 145; Two-for-one fl ights 147; High street vouchers 148;
Insurance offers 149; Packaged schemes 151; Digital print
(formerly fi lm) and collectables promotions 153; Case studies 154
11. Joint promotions 160
Planning principles 160; Sample promotions 164; Referral
coupon promotions 164; Charity promotions 165; Loyalty
schemes 168; Phantom partnerships 170; Case studies 170
12. Price promotions 175
How prices are set 175; Segment pricing 178; Immediate
discounts 179; Delayed discounts 183; Coupons 186; Finance
deals 189; Trade price promotions 192; Case studies 195
13. Premium promotions 200
On-pack offers 201; With-purchase premiums 203; Free
mail-ins 204; Self-liquidators 207; Brand extension
promotions 207; Business gifts 209; Case studies 211
14. Prize promotions 217
Competitions 219; Free draws 224; Instant wins 226; Games 228;
Probability promotions 229; Case studies 232
Contents v
15. International sales promotion 238
Types of international promotion 239; Localizing the
global 242; Data protection law 244; Case studies 244
Further information 249
Index 256
vi
List of case studies
Type/
Case Page Promotion Target/Sector
Purpose
1 24 Listerine Awareness Profession (Dentists)/
healthcare
2 24 Pot Noodle Awareness Men/ snack food
3 25 Mazda Awareness 30–45 age men/ automotive
4 25 Metropolitan Awareness Youth/ public sector
Police
5 42 Superdrug Integrated Women/ retail
marketing
6 42 Kelloggs Integrated Family/ food
marketing
7 43 Nissan Integrated Family/ automotive
marketing
8 55 Henkel Behaviour Young male/ health
change
9 55 Mastercard Behaviour Drink purchase/ fi nance
change
10 56 Maxwell Free draws Consumers/ beverage
House fi ght leader
11 56 Bovril Sampling Family/ beverage
12 57 Sainsburys Collector Young family/ retail
13 58 Scrumpy Jacks Retain share Drinkers/ drink
14 66 Kleenex Various Hay fever/ consumer goods
Tissues
15 68 Zantac Games Indigestion/ pharmaceuticals
16 69 Diabetes UK Roadshow Diabetes sufferers?/ charity
List of case studies vii
Type/
Case Page Promotion Target/Sector
Purpose
17 70 Music for Collector Family/ confectionary/ retail
Schools
18 74 Osram Creativity Maint/ fi nance staff/ retail
19 75 Sheraton Creativity Property agents/ real estate
securities
20 75 Ramada Creativity Guest referrals/ hotel
21 76 Cherry Creativity Boy scouts/ consumer goods
Blossom
22 76 Shell Creativity Buyers/ petrol/ gas
Marketing
23 84 Eversheds Creativity IP users/ Profession (legal)
24 85 Rover Group Competition Mini buyers/ automotive
25 104 Kerry Gold Penetration Consumers/ dairy
26 104 New Zealand Penetration Reader buyers/ Media
Herald
27 104 Golden Penetration Consumers/ snack food
Wonder
28 124 Coca Cola Legal Upheld complaint/ soft drink
29 124 Vauxhall Legal Upheld complaint/ auto
motors
30 124 The Express Legal Upheld complaint/ media
31 125 The Sun Legal Upheld complaint/ media
32 125 Balkan Legal Upheld complaint/ travel
Holidays
33 125 Holsten Pils Legal Free bet/ loophole/ drink
34 154 Tango Events Consumers/ soft drink
35 155 The Sun Travel Consumers/ media
36 156 Passport to Vouchers Consumers/ services
the Millenium/
BT
37 157 Hoover Travel Consumers/ consumer durable
38 171 Natwest/ BT Joint Start ups/ services
promotion
39 171 Shell Loyalty Consumers/ petrol
40 172 Sellotape Lotteries Businesses/ offi ce supplies
41 173 Walkers Joint Families/ snack food
Crisps promotion
viii List of case studies
Type/
Case Page Promotion Target/Sector
Purpose
42 174 Kelloggs Zoo Joint Families/ food
Keeper promotion
43 196 Tesco Price Consumers/ retail
44 197 Gales honey Coupons Consumers/ food
45 198 Worcester Coupons Consumers/ food
Sauce
46 201 Haagen Dazs Premiums Consumers/ food
47 205 Smith Kline Premiums Consumers/ soft drink
Beecham
48 212 Procter & Premiums Consumers/ household goods
Gamble
49 213 Clear Blue Premiums Women/ health products
One Step
50 213 Electrolux Premiums Trade/ consumer durable
51 214 Smirnoff Premiums Youth markets/ drink
52 232 Sarsons Instant win Consumers/ food
53 233 The Times Fantasy share Consumers/ media
game
54 233 Asda Instant Staff/ retail
reward
55 234 Worthington ‘Kick’ game Adult/ drinks
Cup
56 234 Cadburys Text’n’Win Consumers/ confectionary
57 235 Diageo Text’n’Win Adult/ drinks
58 235 Faber & Faber Competitions Customers/ books
59 245 Tony Stone Competitions Business to Business/ photos
60 246 Umbro Instant win Customers/ clothing
61 247 Visible Vault Prize promo Consumers/ media
62 247 Boost Mobile Prize promo Consumers/ services
63 248 Great Prize promo Consumers/ charity
Singapore
Duck Race
ix
Foreword
This book may have been originally for practitioners, but because of its practi-
cal approach and the breadth of its coverage, it has now become the core text
for the Institute of Sales Promotion’s highly-regarded Diploma in Promo-
tional & Interactive Marketing.
Indeed, given that almost all marketing now includes a promotional market-
ing element – that is, a call-to-action aimed at changing behaviour – it should
be an essential text for everyone in our industry.
Recent ISP research highlights the fact that the spend on sales promotion
activity by branded manufacturers through the UK retail channel alone was at
least £25.6 billion in 2008. The fi gure for the spend on all promotional market-
ing activity would be far higher.
Compare that with a total above-the-line advertising spend of £18.6 billion
in 2008 (according to the Advertising Association) and you begin to under-
stand just how fundamental sales promotion is to marketing communica-
tions.
And it can only grow further in importance, given the uptake of sales
promotion by business-to-business, government and public sector marketers;
the development of new communication channels including online, mobile,
experiential and shopper; and the spread of digital technology, with its meas-
urability and interactivity, into all forms of marketing.
Annie Swift, Chief Executive
The Institute of Sales Promotion Limited (ISP)