Download The Promotion Strategy

The Promotion Strategy
The Role of Promotion Strategy
 Promotion is communication intended to persuade, inform, or remind a target
market about a business or its products.
 The promotion strategy coordinates all aspects of a product and institutional
promotion.
 It involves planning, determining the right mix, and selecting specific activities.
Drawing Up Promotional Plans
 Preopening Plan
 Establish a positive image.
 Let potential customers know you are opening for business.
 Bring in customers or have them contact your business.
 Interest customers in your new company and your products.
 Ongoing Plan
 Needed to help you maintain and build sales.
 Maintain the positive image you have established.
 Preselling is influencing potential customers to buy before contact is
actually made.
 Plan may be seasonal, quarterly, monthly, or weekly.
 Promotional Plan Format
 A campaign is a series of related promotional activities with a similar
theme.
 Your plan should have a brief description, specific media placement,
submit dates, scheduled date of run or release, number of runs, copies, or
items, costs, rationale and other pertinent notes.
Selecting a Promotional Mix
 Is the combination of different promotional elements that a company uses to reach
and influence potential customers.
 Advertising, sales promotion, publicity, and personal selling.***
 General guidelines for allocating promotional efforts:
 Target Market
 Product Value
 Promotional Channels
 Time Frame
 Cost
The Elements of the Promotional Mix
Advertising – is the paid non-personal presentation of ideas, goods, or services.
 Newspapers
 Magazines
 Direct Mail
 Outdoor Advertising
 Directories
 Transit Advertising
 Other Print Media
 Television
 Radio
 Internet
 Publicity – is placement in the media of newsworthy items about a company or
product.
 Write news releases.
 Write feature articles.
 Submit captioned photos.
 Call a press conference.
 Seek interviews.
 Sales Promotion
 Displays
 Premiums
 Rebates
 Samples
 Sweepstakes and Contests
 Personal Selling – consists of oral presentations given to one or more
potential buyers.
Budgeting for Promotion
 Cost Out Promotional Activities
 Obtain advertising rates directly from radio stations, newspapers, and
other media sources.
 Compare Industry Averages
 Contact trade associations, business publications, the SBA, or business
owners in the field.
 Make Final Adjustments
 Figures help you measure your estimates, if the difference between the
two figures is large, you might to reexamine and adjust your plan.
Carrying Out Your Plans
 Doing It Yourself
 How big is your promotional budget?
 If you budget is limited, you may have to design your adds and other
promotional items.
 Use these basic media formats as a starting point:
 Print
 Radio
 Television
 Internet
 Getting Help
 Media – to encourage sales, they often help prepare the ads or
commercials that you run with them.
 Manufacturers and Suppliers – cooperative advertising is an arrangement
in which advertising costa are divided between two or more parties.
 Agencies – advertising agency is a company that acts as intermediary
between a business and the media to communicate a message to the target
market.
Making Possible Promotion Changes
 Adjust Your Advertising
 Advertising is expensive.
 Do a consumer pretest, a procedure in which a panel of consumers
evaluate an ad before it runs.
 Evaluate the market, source, motives, message, media, results, and budget
after the ad has run.
 Generate Publicity
 Monitor community, school, athletic, and other events that might bring
about positive exposure.
 Promote Sales
 Displays, premiums, sweepstakes, contests, rebates, and samples provide
people with an incentive to buy.
Revising the Promotion Strategy
 Conduct a formal review of your promotional strategy on a regular basis.
 Apply evaluation strategies to determine the effectiveness of your promotional
campaign.
 Begin with your sales forecast for the upcoming period.
 Once you determine your mix, you can prepare a new promotional plan.