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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