D. Marketing a Small Business Describe the elements that make up the promotional mix Identify the function of promotion in small business.

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: Easier to influence purchasing Immediate feedback DISADVANTAGES: The most expensive form of promotion

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 Public Relations

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: Helps to create a positive image Fosters good human relations DISADVANTAGES: Inaccurate or negative information could be released

Promotion that includes all activities other than advertising, personal selling, publicity, and public relations used to increase consumer purchases. Sales Promotion

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 TIE- INS 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