Chapter 11
Promotional Activities
Implement the Promotional Mix
1) Advertising
2) Promotion
3) Personal Selling
4) Public Relations/Publicity
5) Must have a thorough understanding of the customer’s needs as well as the best
methods to satisfy those needs.
Strategic Considerations
 Must decide which promotional strategy is best suited to your business.
 The strength of small business is in its’ ability to be personal and more
flexible than a large business.
 Push strategy depends on the seller making the product immediately
available.
 Pull strategy is intended to create so much interest in the product that the
customers are literally demanding that it be made available.
 Viral Promotional Strategy sets in motion a plan to capture the attention
of a particular segment of the market with the expectation that the opinion
leaders of that segment will spread the word.
 Network Promoting comes from personal selling such as Tupperware inhome parties.
ADEVERTISING
Guidelines
1) Advertising must have a consistent approach. Businesses sometimes jump in and
out depending on impulse and cash flow.
2) Do not over reach your intended market. Ultimately, you will be out of your
element and it will be a waste of money.
3) Small business should keep the message and approach personal.
4) Business Owners must understand the stage of development their business is in to
choose the most effective advertising copy.
Advertising Stages – Figure 11-1, Page 231
 Pioneering Stage. New businesses qualify in this area and should use the
words “introducing”, “welcome”, “announcing”, “brand new”, etc.
 Competitive Edge. Settled in the Marketplace feature distinctive or
exceptional features not shared by the competition. This can be initiated
by a new business starting and you want to remind your customers of your
message
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Retentive Stage. Firmly established business. Determine to maintain
market share by reminding customers of their brands staying power and
loyalty. Should be looking for ways to re-enter the Pioneer Stage.
Product Advertising. Focused on the benefits and advantages of buying
the particular product or services of the business.
Institutional Advertising. Broadcasts a good message about the
company.
Advertising for Small Business
 Local Newspapers. You can advertise to your market through zone editions.
 Magazines. Benefit if a longer exposure time to a very specific market segment.
 Radio. Attempt to advertise at a time that most of segment may be listening.
 Television. Aired in a channel that has similar demographics to your market
segment. Has become more feasible/cost because cable companies do the
production and air the commercial in the best available time and channel for your
product.
 Billboard Advertising. Rates are based by the exposure rates of passing traffic.
This is beginning to be a powerful tool.
 Telephone Directories. Indispensable convenience tool for customers. This is
costly for larger advertisements and you will have to wait up to one year to enter
this area or make a change.
 Direct Mail. Printed information sent through the mail or electronic mail to
potential customers. This is efficient and cost effective.
 Strategies. Allows for personal communication which is the strength of
small business.
 Requires high quality paper, photography, graphics and overall
presentation.
 Mailing Lists. Can be tailored for the intended market. The costs of
mailing pieces can be significant.
 Telecommunications Advertising. Internet advertising and pop-ups. Not
personal and can be considered annoying.
 Create Copy. The entrepreneur is able to promote the image of the business as
well as the product/service.
 AIDA- Attention, interest, desire, and action.
 KISS- Keep it simple stupid.
 Ask the customer to do something, create a thought process or decision
process.
 Evaluate Advertising Results.
 Look at the benefits of image enhancement and customer exposure over
the long term.
 A business that spends money on a consistent advertising budget should
see steady growth. Over a year it should pass the industry growth standard.
 The more times people are exposed to an ad, the more likely those in the
target market are to remember it.
Stage a Promotional Event
 A planned program created to build goodwill for business by offering an added
value to the customer.
 It should be fun for the customer and the business.
 Small Business should work from a calendar which helps with budgeting and
highlighting certain sales period.
 Small business should be socially orientated. People should enjoy visiting the
store.
Dynamics of Personal Selling
 Retailing. Easiest because the customer comes to the business. Encourage
browsing and purchasing.
 Cold Calling. The most difficult because they are made without prior notice to
the potential customer.
 Telemarketing. Requires interacting with customers by telephone by using cold
calling techniques.
 Trade Shows. Gathers industry buyers and sellers together. Use this tool to
communicate with similar businesses.
 Product Demonstrations. Show how the product is used and demonstrate the
benefits. This only works if the company is %100 behind the sales person with
support tools.
 Sales Training. A good sales training course complete with a manual will help
motivate and mimic the skills of successful sales people.
Public Relations & Publicity
 Creates good relationships with the public.
 Publicity is free exposure for the business through media channels for doing some
public good. It carries more credibility than paid advertisements.
 Release information to the media about new products or services or personnel
changes.
 Feature stories expressing expertise are beneficial.
 It is difficult to quantify the success because you are attempting to create word of
mouth marketing.
Homework
1)
2)
3)
4)
Ethics for Entrepreneurs
The Global Entrepreneur
Ship in a Bottle
Read Chapter 12
Page 236
Page 240
Page 244 & 245