Download SBE10.02

D. Marketing a Small Business
10.00 Identify the function of
promotion in small business.
10.02 Describe the elements
that make up the
promotional mix.
•Promotion: Any form of communication
a business or organization uses to
inform, persuade, or remind consumers
about its products/services.
•Product promotion: Used to persuade
consumers to buy a particular product
or service.
•Institutional promotion: Used to create a
favorable image of the business in the
eyes of the consumers instead of
promoting a particular product or
service.
•Promotional mix: The combination, or
blend, of the different types of
promotion.
•Media: Agencies, means, or instruments
used to promote messages to the public.
•Advertising
•Personal selling
•Publicity/Public Relations
•Sales promotion
Any PAID form of
NON-PERSONAL
presentation of ideas,
goods, or services.
TYPES OF ADVERTISING
• Promotional
Advertising:
Communication
designed to
increase sales of
products and
services.
TYPES OF ADVERTISING
• Institutional
Advertising:
Promotion
designed to create
a favorable image
and goodwill for a
business or
organization.
•Print media: Newspapers, magazines, direct
mail, signs, billboards
•Broadcast media: Radio and TV
•Specialty: Inexpensive, useful items with the
advertiser’s name printed on them
•Online: An advertising message placed on the
Internet
•Other media: Directory advertising, motion
picture theater advertising, sports arena
advertising, public transportation, street
banners, and many others including restrooms
ADVANTAGES/DISADVANTAGES
• ADVANTAGES:
Large number of
viewers/ High rate
of exposure
• Messages can be
controlled by
business
• DISADVANTAGES:
• May not be able to
select a specific
target market
• Some media are too
expensive
• Message too short to
get the point across
The form of promotion
that uses PLANNED,
PERSONALIZED
communication in
order to influence
purchase decisions and
to ensure satisfaction.
TYPES OF PERSONAL SELLING
• Retail Selling
• Business to
Business Selling
• Telemarketing
•Product knowledge
•Selling skills
•Positive personal traits
•Communication skills
•Prospecting/preapproach
•Approach
•Determining needs
•Product presentation/demonstration
•Overcoming objections
•Closing the sale
•Suggestion selling
•Relationship building
ADVANTAGES/DISADVANTAGES
• ADVANTAGES:
• DISADVANTAGES:
• Easier to influence • The most
purchasing
expensive form
• Immediate
of promotion
feedback
•Any activity designed
to create a favorable
image toward a
business, its products,
or its policies.
•Information that is
provided to the public
by the media or other
sources at no cost to
the business.
•Publicity can be positive or negative.
•Publicity has credibility because people
believe the media is objective and presents
facts.
•Publicity reaches a mass audience
because a large number of people follow
the news.
•Publicity is intended to inform rather than
to sell.
•Publicity does not have an
identified sponsor.
•Publicity cannot be
controlled by the business.
•Publicity does have costs
when a business engages
staff to write news releases
for the media.
•Fact sheet
•News release
•Press conference
•Press kit
•Captioned photograph
ADVANTAGES/DISADVANTAGES
• ADVANTAGES:
• DISADVANTAGES:
• Helps to create a
positive image
• Fosters good
human relations
• Inaccurate or
negative
information
could be
released
Sales Promotion
Promotion that includes all
activities other than
advertising, personal selling,
publicity, and public relations
used to increase consumer
purchases.
OBJECTIVES OF SALES
PROMOTION
• Increase demand
and stimulate sales
• Inform customers
about new/or
improved
products
• Create positive
business image
TRADE PROMOTIONS
• Slotting
allowances:
• Money paid by a
manufacturer to
the retailer for
placing a product
in the store
TRADE PROMOTIONS
• Buying allowance:
Price discount
given by a
manufacturer to
increase the desire
of a wholesaler or
retailer to
purchase the
product.
TRADE PROMOTIONS
• Trade shows:
Provide the
manufacturer a
place to
introduce new
items and to
gain support for
new and existing
products.
TRADE PROMOTIONS
• Sales
incentive/contests:
Awards given to
sales persons for
meeting or
exceeding sales
goals.
CONSUMER SALES
PROMOTIONS
•
•
•
•
PREMIUMS
INCENTIVES
PRODUCT SAMPLES
PROMOTIONAL TIEINS
• PRODUCT
PLACEMENT
• VISUAL
MERCHANDISING
AND DISPLAY
ADVANTAGES/DISADVANTAGES
• ADVANTAGES:
• Stimulates sales
• Raises consumer
awareness
• DISADVANTAGES:
• Costs involved in
promotion
• Negative attitudes
toward some
activities
• Examples: Grocery
cards