Budgeting for Promotion Promotional mix – the strategy for promoting your business using some, if not all, of these techniques Advertising Advertising is a paid form of communication sent out by business about a product or service Advertising helps you communicate with potential customers. It lets them know what kinds of products and services your company offers and why they should buy from you Advertising should help a business convey a positive image. Public relations is the act of establishing a favorable relationship with customers and the general public For example, getting involved in your community, making donations to charities, and being personable with your customers are also public relations activities. Choose Your Message Your advertising should clearly communicate the message and image you want Once you choose a message, you will need to decide which advertisement medium to use. To choose a medium, you will have to consider both cost and effectiveness in reaching your target audience. Television Advertising Reaches millions of people every day It’s the best way to reach a large number of people quickly Comes in 2 forms Commercials – usually less than a minute in length and are run during breaks in television programming Paid advertisements – can last a half hour or more and go into depth about the product being offered Disadvantages of Television Advertising Very expensive to produce Paying a network or cable station to broadcast a commercial can cost much more Television reaches too broad an audience to be effective for most businesses For example, if only 1 percent of the viewing audience is interested in a particular product, advertising on television is not likely to be cost effective Radio Advertising Can be effective for small businesses Less expensive than television advertising Tends to attract a particular kind of listener For example, pop rock stations target teenagers and people in their twenties. Classical or talk radio stations usually attract older listeners. Disadvantages of Radio Advertising Only audio message and can’t visually show your product Listeners may not remember what they hear and may not listen to the ads Different Types of Advertising Newspaper Advertising These ads are the single largest form of advertising in the United States. IT is relatively inexpensive It targets a limited geographic area. It reaches large numbers of people. Disadvantages Much of the people who receive a newspaper may not be interested in your Ad. If you own a business that only has clients in your surrounding area you will be paying to advertise to thousands of people who are not interested in your business. Also you will be competing with many other Ads Telephone Directory Advertising Lists the phone numbers of people and businesses in a certain area. Customers look in these ads again and again making them a good advertising medium. A disadvantage of directory advertising is that people look in the directory only when they are already in search of a particular type of business. Direct Mail Advertising This includes fliers,catalogs,letters, and other correspondence sent to target customers through mail. Main advantage is that mailing list are available for purchase. Disadvantages people throw it away saying its “Junk Mail” Magazine Advertising • Magazines are an excellent way to aim products and services at specific markets. • Most Magazines are nationally distributed this can make them inappropriate for businesses that sell in a specific area. • Some cities have local magazines that would be effective. Outdoor Advertising Includes Billboards and Signs. This can be very effective in keeping the name of your business in a place where many people can see it. But since people see advertising as they quickly drive by, it cannot contain to much information. Transit Advertising disadvantage Transit advertising is signs on public transportation. Transit information can supply more then a billboard can. This can be effective if the people you are trying to reach use public transportation. But not everyone uses public transportation so this is a disadvantage. Publicity Publicity is free promotion generated by media coverage. Good publicity can be as helpful as advertising. And Its free But it can also be negative if the media coverage is unfavorable. You should also write a press release to local newspapers, magazines, and radio and television stations as well. Press release- is a written statement meant to inform the media of an event or product. Selling BY: BRUCE BROWN SELLING Good selling skills are important to an entrepreneur You can hire others to assist in selling products salesperson The salesperson is needs to create a positive experience for the customer Salesperson is vital to a business because he sales the product Personal selling Personal selling is direct communication between a prospective buyer and a sales representative in which the sales rep attempts to influence the prospective buyer in a purchase situation A salesperson should uncover customer Needs Issues concerns Product Knowledge It is important to know your product You should know any benefits of your product That’s what your customers are interested in If they see the benefits they wont object the price Its important to train employees about products Customers needs and wants Customers purchase goods and services in order to satisfy needs Needs assessment Needs are determined through marketing research You can interview customers to determine their needs and wants Giving customers what they want by fufilling their needs is called needs satisfying Cont’d When the need is not identified the process of satisfying the need is problem resolution Buying decisions Rational buying decisions are based on the logical reasoning of customers Emotional buying decisions are based on the desire to have a specific product or service little time is spent in an emotional decisions Customer Decisions Problem solving process is the best way to make a decision A sales person can assist in this process You can influence a customer decision if you give great assistance in decision making If done correctly you can influence them to buy your product Sales promotion Is the act of offering an incentive to customers in order to increase sales contest Free samples Gifts rebates Special events A rebate a refund offered to people who pursuance a product Telemarketing Using the phone too market your product or service Can be inexpensive and an effective way to let people know about your business Some people don’t like telemarketing and would rather be contacted at home