A written document that details a companys promotional efforts for a certain period of time. Define promotion plan:
Review the content guidelines for the promotion plan. Description of the store and its customers Type of business Store location Hours of operation Types and price range of merchandise sold Customer demographics
Goals and objectives of the promotional campaign Examples To sell specific merchandise To increase sales in general To increase market share Goals should be specific and measurable. Example: to increase sales of womens hats by 5%
Major message or theme Back-to-school Mothers Day Independence Day Prom Support our troops Just say no
The promotional mix decision Use of an annual or quarterly Calendar of Events Provides an overall plan of action Guides development of the promotional budget Helps relate promotions to special events, holidays, etc. Specific activities to be included Advertising Personal selling Publicity Public relations Sales promotion Visual merchandising Special events Media mix selection The right medium reaches the largest portion of the companys target market. Types of media chosen should support and strengthen each other in the overall promotion campaign. Newspaper is the primary medium for local advertisers. Radio is universally used.
Assignment of responsibilities for overseeing the activities Specifies the people and/or departments responsible for each aspect. Division of responsibilities is affected by the type, size, and location of the store.
Promotion budget Usually based on anticipated annual sales Manufacturers generally budget five to eight percent. Example: $1,000,000 anticipated annual sales times 6% (.06) would provide a $60,000 annual promotion budget. Retailers generally budget one to four percent. Example: $500,000 anticipated annual sales times 4% (.04) would provide $20,000 for promotion for the year. Sometimes based on the previous years sales Plan should state total budget allowed and itemize the planned expenditures