Promotion in Small Business

Promotion in Small Business

Promotion
 The

attempt to persuade others to participate in an exchange with them. need to inform the customers of the produce or service existence.

 The

Promotion & Customer Demand
 Promotional

activities increases the total customer demand.

Types of Customer Demand
1.

2.

Established demand Newly created demand

Established Demand




Define – to purchase made by people from a certain firm. Results to:  Positive experience with the firms products  The convenient location of the firm  The attractive appearance of the firm

Newly Created Demand
 Engages

in activities designed to attract people to buy from the company.

Methods of Promotion
1. 2. 3. 4. 5.

Advertising Personal Selling Publicity Sales Promotion Word of Mouth

Advertising
 Define

– any paid, nonpersonal communication transmitted through mass media by an identified sponsor.

Types of Advertising
1. 2. 3. 4.

Retail Advertising Trade Advertising Industrial Advertising Institutional Advertising

Retail Advertising
 define

– those made by various retail stores such as supermarkets and beauty shops to attract customers.

Trade Advertising
 defines

– those made by manufacturers to motivate wholesalers and retailers to carry their products

Industrial Advertising
 defines

– those made by manufacturers to motivate other manufacturers to use their products or services.

Institutional Advertising
 defines

– those designed to create a favorable image for a firm.

Types of Advertising Media
1.
2. 3. 4. 5.

6.

7.

Television Radio Newspapers Magazines Outdoor Billboards Specialty Advertising (calendars, shopping bags, and others. Public Transportation

Types of Advertising Media
8. Yellow Pages 9. Direct Mail 10. Local Cable TV 11. Cinema 12. Others (Catalogs, samples, handouts)

Television
 Costly

and it cover wide area, local and nationwide.  Advantage:
Mass

coverage, powerful impact on viewers, repetition of messages, flexibility, and prestige.

Television
 Disadvantage
Loss

of control of promotional message, high costs, high mortality rates for commercials, and some public distrust.

Radio
 Classified
Cover

two types:

the entire country (DZMM) Cover smaller radius (UMBN)
 Local

Radio stations are appropriate for small business located within their coverage.

Newspapers


Classified into:
 National  Regional

 Provincial



Disadvantage
 Short

life span, hasty reading, poor reproduction quality)

Magazines


Divided into two:
 Consumer

Magazines  Business Magazines
Monthly  Weekly




Advantage:
 Selectivity

in reaching precise target markets, quality reproduction, long life, the prestige associated with it, and extra services offered.

Outdoor Billboards
 The

oldest and simplest media business around, represents just over 2% of total advertising spending.  Advantage:
Immediate

communication of quick and simple ideas, repeated exposure to a message, and strong promotion for locally available products.
 Effective

in high-traffic areas.

Direct Mailings
Consist of sales letters, postcards, leaflets, folders, booklets, catalogs, and others.  It is other known as junk mail


Creating an Advertisement
1. Translating Advertisement Objectives into Advertising Plan
Budgeting,

copywriting, scheduling, and media selection.

2. Advertisement Messages
 Starts

with the benefits a product offers to potential customers and moves to creative concept phase to bring about the appropriate message to consumers both visual and verbal components.

2. Advertisement Messages
 It

must be believable, meaningful, and distinctive appeals that stands out from the others.  Specific Campaigns/Advertising Campaigns
 Series

of different but related ads that use a single theme and appear in different media.
 Ex.

“Love „ko „to” “Abot ko ang Mundo”

3. Advertising Appeals
 The

tone of the advertisement.

Emotional

Response (Fear, humor, sex, guilt, fantasy and others)

 The

most critical area and decision in creation of memorable ads that posses strength needed to promote a product.

3. Advertising Appeals
3

Types of most common Appeals:
Fear

Appeals Humor in Advertising Messages Ads Based on Sex

Fear Appeals
 Input

fear to the customer and using their product can lessen their fears.  Ads like:
Insurance,

autos, health-care products and other foods that could lead to illness, injury or bad consequences.

 Backfire

customers.

Humor in Advertising Messages
 Create

positive moods.  Improve audience awareness and recall and enhance the consumer‟s favorable image of the brand.  Disadvantage:
Sometimes

customer remember only the humor part but not the product or brand.

Ads based on Sex
 Ads

with sex-based appeals have what is called “stopping power”
 They attract the reader‟s or viewers attention.

 Boosts

recall of the ad‟s content only if the appeal is appropriate to the type of product advertised.

4. Developing and Preparing Ads
 Should

follow the promotional theme from the beginning to the end.  Emphasize features like its creativity, continuity with past advertisements, and possibly its association with other company products.

4. Developing and Preparing Ads


Must accomplish:
Gain attention and interest 2. Inform or persuade 3. Lead to a purchase or other desired action.
1.

4. Developing and Preparing Ads


4 Major elements in Print Advertisement
 Headlines  Illustration

 Body

Copy  Signature

Headlines and Illustrations
 These

are photographs, drawings or other artwork must work together to generate interest and attention.

Body Copy
 Serves

to inform, persuade, and stimulate buying action.

Signature


Include the company name, address, phone numbers, Web address, slogan, trademark, or product photo, and names the sponsoring organization.

5. Print out or publication


Company will now print the final layout and movie sequencing.

Components of Promotional Mix
Personal Selling  Nonpersonal selling

 Advertising  Product

Placement  Sales Promotion  Direct Marketing  Public Relations  Guerilla Marketing

Personal Selling
define – interpersonal influence process involving a seller‟s promotional presentation conducted on a person-to-person basis with the buyer.  The oldest form of promotion


NonPersonal Selling
 Define

– promotion that includes advertising, sales promotion, direct marketing, public relations and guerilla marketing – all conducted without being face-toface with the buyer.

Advertising
 Define

– any paid, nonpersonal communication through various media about a business firm, notfor-profit organization, product or idea by a sponsor identified in a message that is intended to thousands of organizations.

Product Placement
 Define

– the marketer pays a motion picture or television program owner a fee to display his/her product prominently in the film or show.

Sales Promotion
 Define

– activities other than personal selling, advertising, guerilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness.

Direct Marketing
 Define

– the use of direct communication to a consumer or business recipients designed to generate a response in the form of an order, a request for further information.
Infomercials
Telemarketing Direct

Mail

Public Relations and Publicity


define – firm‟s communications and relationships with its various publics.

Guerilla Marketing


Define – unconventional, innovative, and low-cost marketing techniques designed to get consumers‟ attention in unusual ways.

Personal Selling

Personal Selling
 “the

face-to-face presentation and promotion of products and services plus searching out prospects and providing follow-up services.”

Types of Salesperson
Order Getters  Order takers  Support personnel


Order Getters
 To

increase the firm‟s sales by selling to new customers and by increasing sales to present customers.
Current

Customer Salesperson New-business salesperson

Order Takers
 To

seek repeat sales from current customers by making sure that product quantities are there and when they are needed.
Inside

order takers Field order takers

Support Personnel


To facilitate the selling function such locating prospects, educating customers, building goodwill, and providing services after sales
 Missionary

salespersons  Trade salespersons  Technical salesperson

Missionary Salesperson
 They

assist the producer‟s customers in selling to their own customers.

Trade Salesperson
 Their

activities consist of restocking shelves, obtaining more shelf space, setting up displays, providing in-store demonstrations, and distributing samples to store customers.

Technical Salesperson
 Give

technical assistance to the firm‟s current customer in the form of advice on product characteristics and application, system designs, and installation procedures.

Steps in selling process
1.
2. 3. 4. 5.

6.
7.

Prospecting and qualifying Preapproach Approach Presentation and demonstration Handling objections Closing Follow-up

Publicity

 “any

information about an individual, a product, or an organization that is distributed to the public through the media, and that is not paid for, or controlled by the sponsor.”

Requirements for Publicity Release
 The

existence of the firm and the products or services handled  The unique characteristics of new products or services offered by the firm  The firm‟s unique method of doing business.

Types of Publicity
1. News Publicity
Deal

with events of national, regional or local interest. Two Types
 Spontaneous
 News

news publicity

like fire, strike, holdups, and other major occurrence.

 Planned
 News

News publicity

releases prepared by the small business.

2. Business Feature Article
Detailed

stories about the company and its offering. stories focuses on personal care, recipes and others.

3. Service Feature Article
Lighter

4. Finance Release
Stories

that are targeted to appear in business sections of newspapers and magazines.

5. Product Release
 New

produces and product improvements aimed at all forms of media for publicity or pictures distributed to media.

6. Pictorial Release
 Illustrations

7. Background editorial Release
 Extra

information (biography) given to the media writers media releases regarding disasters or serious problems.

8. Emergency Publicity
 Special

Sales Promotion
 “a

direct inducement offering added value or some other incentive for buyers to enter into an exchange.”

Tools in Sales Promotion
Point-of-purchase displays  Premium  Trading stamps  Sampling and distributions  Retailer coupons  Consumer contests and sweepstakes  Rebates  Tradeshows


Word of Mouth (WOM)


“encourages people to tell other people about the products or services they had enjoyed.”
“the most powerful tool in information source for consumer because it typically involves others.”



Result of Positive WOM
 Competent

Employee  Proper treatment of people  Not overcharging  Not using false claims in advertising  Keeping promises to customers  Having a good product or service  Keeping customers happy.