Module No 1: Marketing/Promotion & E-commerce MICRO: Enhancing Competitiveness of Micro-enterprises in Rural Areas Module No 1: Marketing/Promotion & E-commerce Prepared by the Consortium for the project: “Irish Rural Link – National University of Ireland Maynooth- CDI – EEO GROUP SA- IHF asbl – IDP - Internet Web Solutions SL”

How long to read and listen? Promotion of products Overview How many slides? 14 slides in total How long to read and listen? 15 minutes (not including exploring the links provided within slides) What is the benefit? See aim and expected learning in following slides

Promotion of products Unit Aim Understand the basics of designing and implementing a comprehensive and result oriented product / service promotion strategy

Expected Learning Outcomes Promotion of products Expected Learning Outcomes At the end of this module you will be able to: Understand the elements of a promotion plan for Product/Service Prepare a promotion plan that will generate new leads and increase sales

Promotion of products What is promotion Promotion is a mix of Actions used to increase product/service sales through leads generation. It is one of the four elements (4 P’s) of Marketing (Product, Price, Placement, Promotion) Objectives of Promotion To present product/service information to consumers and others. To increase demand. Product differentiation.

Promotion of products What is the promotional plan (mix) It refers to the intensity (in terms of time, effort and spending) that each promotional type is being used Types of promotion Personal Selling. In-person sales, transactions made between sales representatives and clients. Advertising. Either audio, visual or printed. it employs an openly sponsored, nonpersonal message to promote or sell a product, service or idea.

Promotion of products Types of promotion (2 of 2) Sales Promotion. It includes demand raising actions such as contests, coupons, freebies, loss leaders, point of purchase displays, premium prizes, product samples, and rebates Direct Marketing. Includes communication with customers through a variety of media e.g. cell phone text messaging, email, websites, online adverts, database marketing, fliers, catalogue distribution, promotional letters Publicity. Refers to gaining public visibility or awareness for a product, service or your company via the media.

Promotion of products Examples of promotion tactics in the area of Publicity Publicity includes low cost and high credibility actions. For example:  Arrange a speech or talk Create then present an award Arrange for a testimonial Issue a report Use High prestige People Organize a tour of your business or projects Conduct a poll or survey Stage a debate Event sponsorship

Promotion of products Establishing a Promotional Mix (1 of 2) Target Market Determination Determination of Objectives Message Design Selection of Promotional Channels Budget Determination

Promotion of products Establishing a Promotional Mix (2 of 2) Example 1: Jeweller’s promotional mix based on a budget of 5,000 Euros Example 2: Candy bar that fights tooth decay with 5.000 Euros budget Type of Promotion Budget 50% Direct Mail: Direct-Mail Campaign 2.500 Euros 40% Advertising: Print Ads in Local Lifestyle Magazine 2.000 Euros 10% Sales Promo: Coupon In Direct-Mail Letter For Free Appraisal 500 Euros Type of Promotion Budget 25% Public Relations: Press Releases 1.250 Euros 25% Advertising: Print Ads in Local Newspapers and Dental Publications 50% Sales Promo: Product Samples, Coupons, Contest 2.500 Euros

Promotion of products Top Promotional Activities include: 1. DOVE Dove doubled profits from 1 to 2bn and turned the business of selling soap into a moral campaign. How Created a mock-up advert using all of the company directors' own daughters. With text alongside each image saying how these girls believed they weren’t beautiful, based on the existing images / models used in existing promotions, since their self-esteem was affected.  Promotion strategy changed with more “average” girl model type.

Promotion of products Top Promotional Activities include: 2. Nordstrom A fashion retailer with $ 8,000 life-time spending per customer How Creating “Nordy Stories”, examples of great customer service from its employees. “Nordy Stories” give concrete examples to the employees to show them exactly how good customer service is given. Example: A customer came into Nordstrom wishing to return a $17 tyre iron, without a receipt and in spite of the fact that the company doesn’t sell tyre irons the customer receives full refund. (They know that the Nordstrom customer has an average lifetime spend of $8,000. What’s $17 compared to that?)

Promotion of products Top Promotional Activities include: 3. GE 2 million views of Videos on Company Web-site after replacing heavy mission statements How The human brain processes visuals 50 times faster than text. Customers were attracted by the new appealing company presentation and used multichannel communication (YouTube etc) to spread the word!

Thank you for your attention  End of Module Thank you for your attention 