6.4: Managing successful promotions

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When developing a sales promotion campaign, the marketer must consider several major aspects. First, it is necessary to determine the size of the incentive that will appeal to consumers and get them to participate. The larger the incentive, the more likely it is to attract attention. Second, the firm must establish the conditions for the participation. Restaurants often limit offers to certain times of day or days of the week. In addition, offers may require reservations in advance and depend on availability. Third, the marketer must determine the timing of the promotion, including its duration. Will the offer combine with other promotions, such as advertising? Will it be available during peak or non-peak hours? How long will the sales promotion be available? Finally, it is necessary to determine how consumers will learn of the promotion, and to estimate the total budget for the promotion. The disbursement of coupons usually occurs by mail, point of sale in the restaurant, or the Internet.

Hospitality trade journals are full of terrific ideas for promotions. There is never a need to reinvent the wheel. Rather, simply modify the ideas that others have used successfully before. Like anything else managers do, developing a promotion calls for careful planning, execution of the plan, and evaluation.

Select the target market for the promotion. Analyze sales records to determine the most likely target markets for a special promotion, as these segments offer the greatest potential for increased sales.
Establish specific objectives for the promotion. Objectives should be very specific, detailing exactly what the promotion should accomplish. Desired results should be numerical.
Select the promotional technique. Examine the situation and the advantages and disadvantages of each of the techniques, select the one best suited to the situation.
Brainstorm about the potential offer. There are hundreds of excellent ideas. Make a list of those deserving consideration and seek input from others. Consider all potential offers carefully from two perspectives: the potential appeal to the target market and the potential sales increase in light of the costs and expenses the operation will incur.
Create the promotional theme. This is the area where you can be very creative. What will the promotional ‘tag line’ be? Does it capture the interest of potential guests? Can it be useful both internally and externally in the promotion? For a promotion to achieve the maximum potential, it needs to move forward both outside and inside the operation. Externally, its purpose is to build business. Internally, it should create excitement among the staff and build morale.
Develop the promotional budget. A projection of the total costs you anticipate the promotion will costs, including both direct and indirect expense measurements. The wise operator projects the impact on both costs and revenue generation at several different levels of consumer participation.
Select advertising media and vehicles to support the promotion. Secure advertising time space and the media platforms that will best reach your target audience.
Develop an implementation timetable. Promotions require attention to detail so that all phases will integrate and implement properly. To accomplish this, a timetable is required. Plan the specific date selections for the promotion.
Conduct internal training for the entire staff. Just prior to the implementation of the program, brief the entire staff so they are familiar with the details of the promotion. Items of interest are how long the promotion will last and ‘who’ is responsible for ‘what’ the details.
Work the plan. Put the promotion plan into action and follow the timetable.
Monitor the results. Feedback should receive careful consideration along with a timetable comparison. Are things progressed according to schedule? Is the level of consumer participation within the target range? Are the staff members working according to anticipation? Attention to detail is very important. You should collect and retain all information for future use in other promotions.