FORMAT OF A SALES

PROMOTIONS PLAN
 SALES PROMOTIONS PLAN
•Like any project, a sales
promotion needs a written plan.
This is to ensure that all the
elements of the sales
promotions are defined and
agreed upon. The following is
the typical format of sales
promotions plan.
TITLE
•This is the name given to the
sales promotion. The title
alone can sometimes
describe the type of
promotions to be
undertaken.
EXAMPLE

Launch of the
All-New ABC
Processor
OBJECTIVES
Answers the questions,
• WHY ARE YOU HAVING A SALES
PROMOTION?
• WHAT PROBLEMS DO YOU WANT TO
SOLVE?
This simply stresses the fact that no
sales promotion should be
implemented if no improvement will
be experienced.
Objectives are defined to
determine the intensity
of strategies and tactics.
They must be concrete
and clear to the
marketer.
EXAMPLE
1. Attain a 90% distribution level in
all class A appliance outlets within
30 days from launch.
2. Increase trial rate from 20% to
30% in 3 months.
3. Increase market shares from
15% to 18%
COVERAGE
•Defines the specific
territories included in the
sales promotion.

EXAMPLE:
Metro Manila, Cebu and Davao
DURATION
-This identifies the length of the
promotion. The time period involved in
a sales promotion is important.
Duration of sales promotion must
consider purchase cycle and timing. The
“sell-in” or “pipeline” period needed to
put all stocks in the trade is important.
EXAMPLE: JANUARY 15- APRIL 15
(3 months)
OFFER
•This identifies the type and size
of promotion to be executed.

EXAMPLE:
Free 3 cooking lessons by
celebrity Mr. DEF for every set
of food processor bought.
MECHANICS
-This section identifies approaches
in achieving objectives. It includes
how the promotion will be
implemented, the conditions for
participation, the detailed logistics
needed, who is responsible for
what, and a contingency in case
unexpected things would happen.
EXAMPLE
•Coupons for free cooking
lessons shall be given upon
purchase.
•Cooking lessons shall be
conducted at the Center of XYZ
malls in Makati, Cebu, and
Davao.
COMMUNICATIONS
-How to communicate the sales
promotion at the start, during
and after the promotion’s
duration is as important as the
sales promotion itself. The
communication intends to
motivate their target consumer
to say, “I want it too!”
EXAMPLE
•Promo shall be advertised in
leading women magazines as
well as cooking magazines,
supplemented by an
announcement video on
Facebook, and via e-mail.
KEY FACTORS FOR SUCCESS (KFS)
• It identifies a limited number of key
functions, activities, factors, or even
bottlenecks that must be manage well to
ensure the success of the promotions.
EXAMPLE:
Strong trade support, a short promotion
period and attractive incentive which are
well- communicated.
 BUDGET
•This defines the cost to promote
based ion incremental sales and
profit.

EXAMPLE
About 8% cost to sales based on
professional fee of celebrity chef,
ingredients, venue and souvenir for 3,000
people.
The common ways of
establishing sales
promotion budget are the:
1. Objective-task method
2. Percentage of Sales
method
Objective-task method
•Involves first and foremost, a
definition of the promotion’s
specific objectives followed by
a list of tasks-to-be-done to
achieve these objectives, and
finally quantifying the budget
needed to perform these
tasks.
•For instance, a chocolate bar
marketer wants to increase
market shares from 25% to
30% (objective). The strategy
would call for creating
additional 10% awareness
level, additional 25% trial rate
and 20% repeat purchase rate.
This would necessitate investment in
advertising to get the required
increased awareness, sampling to get
255 to try, and a P2.00 discount
coupon for retail (tasks). This method
of allocating advertising and
promotions budget is preferred over
other method as it is a need-driven
rather than a budget-driven
approach.
Percentage of Sales method
On the other hand, Percentage of Sales
method pegs a specific percent of sales
promotion budget to anticipated sales. This
encourages the marketer to think in terms
of the relationship between the promotion
cost and profit per unit. However, this
method views sales as the cause of
promotion rather than the effect. It doesn’t
encourage budget allocation based on the
need of different products and different
sales territories.