D. Marketing a Small Business 10.00 Identify the function of promotion in small business. 10.02 Describe the elements that make up the promotional mix.

Terms to Know Promotion: Any form of communication a business or organization uses to inform, persuade, or remind consumers about its products/services.

Terms to Know 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.

Terms to Know Promotional mix: The combination, or blend, of the different types of promotion. Media: Agencies, means, or instruments used to promote messages to the public.

Elements of the Promotional Mix Advertising Personal selling Publicity/Public Relations Sales promotion

Advertising Any PAID form of NONPERSONAL presentation of ideas, goods, or services.

Categories of Advertising Media 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

Categories of Advertising Media 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

Personal Selling The form of promotion that uses PLANNED, PERSONALIZED communication in order to influence purchase decisions and to ensure satisfaction.

Characteristics of an Effective Salesperson Product knowledge Selling skills Positive personal traits Communication skills

Steps in the Selling Process Prospecting/preapproach Approach Determining needs Product presentation/demonstration Overcoming objections Closing the sale Suggestion selling Relationship building

Public Relations Publicity 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. Public Relations Publicity

Characteristics of Publicity 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.

Characteristics of Publicity 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.

Types of Publicity Tools Fact sheet News release Press conference Press kit Captioned photograph

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