In this article, you will learn about Promotional Planning Process.
Promoting a product or service with the goal of increasing demand and achieving predetermined goals is the goal of the promotional planning process.
Table of contents
Promotional Planning Process
1. Problem Definition
- To begin, management must determine whether a promotion is justified and should take into account the following factors:
- Which product/service is to be promoted?
- To whom is the product aimed?
- Exactly how much money has been set aside to use in promotional efforts?
- Prospective buyers should be given a clear message.
- Are there any specific marketing tactics to employ?
- What is the best tool for data analysis to be used in this case?
All efforts are focused on achieving the objectives, which are the ultimate goals. The promotion’s goals must be established once the target audience has been identified. A new market segment with a modified product line or a push into an untapped market segment are all viable options for reaching out to those who aren’t currently using the product. Similar goals could be set for the intermediaries, such as boosting sales during the off-season or countering the effects of promotional campaigns run by competitors. Additionally, intermediaries may want to boost off-season sales or minimise the impact of competitors’ marketing campaigns, for example.
3. Promotion Mix
Once the goals have been established, they serve as a guide for deciding on the best promotional tool (advertising, personal selling, sales promotion, etc.). Before making a final decision, the company’s management must thoroughly assess the costs and benefits of each marketing component.
When developing the promotion mix, keep in mind the goals and the target audience. Promoting to educated, urban and institutional buyers will use different tools than promoting to those who are illiterate, rural, and in their own households.
4. Sales Promotion
If you’re going to do any kind of promotional planning, this is where you decide how long you want to use a particular promotional tool and for how long you want it to be used. Consideration should be given to the overall marketing budget as well as eligibility rules and incentive amounts when making a decision on a sales promotion strategy.
Before launching, the Sales Promotion Plan is put to the test in a small subset of the market to see if there are any issues that need to be addressed. Here, management examines the cost-effectiveness of the promotional plan, ambiguity (if any), customer response rates, and other factors.
It is now ready to be launched in the entire market after a trial run in a few selected areas. Management must consider the Lead Time and Sell-in Time in this situation.
A plan’s “sell-in time” begins when it is released and ends when 90-95 percent of its incentives have been received by potential customers. The lead time is the amount of time needed to bring the plan to this point.
7. Monitoring and Evaluation
Corrective actions are taken after the promotional plan has been implemented in order to ensure that it is meeting the goals and standards that were set in the beginning. Measuring the actual outcomes would be simple if the objectives were defined in quantitative terms.
Customers’ purchasing decisions may be affected by factors outside of the company’s control, such as an economic downturn or a natural disaster. Management must take this into consideration when conducting an evaluation.
The management decides on a complete promotion plan that includes all marketing strategies to be adopted throughout the product life cycle, from the introduction stage until its decline stage, and is thus an integral part of marketing.