PROMOTION


Promotion is informing, reminding,
persuading and influencing
prospective customers about your
business and products
Promotion should be planned as
overall strategy
Promotional Plan

Set objectives for promotion
• Let people know that new business has
opened
• Gain new customers
• Advertise specific new product/service
• Announce new location
• Sell overstock of product
• Shut down business and sell inventory

Design promotional mix activities
• All activities that are done to promote the
business
• Consider timing
• Consistent image

Uses a combination of methods
•
•
•
•
•
Personal selling
Advertising
Visual merchandising
Sales promotion
Publicity
PERSONAL SELLING


One on one promotion
How can it happen?
• Salesperson in store
• Door to door salesperson
• Calling on prospective clients
• Server at restaurant taking order
PERSONAL SELLING INCLUDES…







Prospecting
Demonstrating
Telling about product’s features and
benefits
Answering customer questions
Overcoming objections
Helping customers decide to buy
Suggesting related products &
services
ADVANTAGES



Most effective method
of selling
Many customers like
direct contact
Can explain product’s
technical/complex
features
DISADVANTAGES

Costly
VISUAL MERCHANDISING



Visual displays
Arranging merchandise within store
Examples
• http://www.displays2go.com/visual_merchandising.htm
• http://retail.about.com/od/merchandisingbuying/ig/Visu
al-Displays-Photo-Gallery/


Purposes
•
•
•
•
Attract attention of shoppers
Stimulate interest in the product
Show ways in which a product can be used
Help consumers make selections
•
•
•
•
•
Color
Light
Proportion and balance
Backgrounds
Size of items
Consider:
Advertising



Getting message to mass
audience
Variety of media channels
Consider
• How large is firm’s trading area?
• Who are my customers and which
media would they use?
• What budget limitations do I face?
• How important is repetition and
continuity?
Sales Promotions

Any activity that
supplements personal selling,
visual merchandising,
publicity, and advertising
• Coupons
• Rebates
• Refunds
• Contests/sweepstakes
• Samples
• Trade shows
• Promotions
http://www.branders.com/
PUBLICITY AND PUBLIC RELATIONS

Make yourself a news story/become
visible
• Provide a press release to the media







New business in the area announcement
Grand opening/Ribbon cutting
A conference/training you attended
Company anniversary
Community or other special accomplishments
Sponsorship
Product/service good for community or
individuals
• Editorial commentaries
PUBLICITY AND PUBLIC RELATIONS


Visibility of your business for little or
no cost
Consider local events:
• High School athletic brochures
• Community Theater brochures
• Publishing of Community Information
BASIC ADVERTISING AND PROMOTIONAL
MATERIALS


Business Cards and Letterhead
• Use consistent graphics, color scheme,
font, image and message
Signage (if customers are coming to
you)
• Name on door - expensive store sign
• Sign represents who you are/what you
do
• Helps customers identify you, your
company and your product or service.
• Ensure consistency with other items

Yellow Page listing
• Free with business line
• For additional ads, ask “Is this the most
effective way to reach my target
audience?”
Choosing mix activities for
promotional plan

Cost
• Set budget for promotion







Percentage of sales
Objective – and-Task
Advertising as Investment
Spending as Much as the Competition
What will best reach your customers?
What will achieve objectives?
Consider timing
Image

Make sure image is consistent across
all promotional activities
Evaluation

Have an evaluation method for each
promotional activity
• Are objectives met?
• Is money spent effectively?

Possible evaluation methods
• Increases in sales volume or foot traffic of
customers
• Compare against past years’ sales
• Have customers mention where they heard
about you
• Ask customers to bring in ads
• Count coupons used
• Examine sales of products in advertised
weeks vs. non-advertised weeks