Explain the role of the promotion strategy. 12.1 Explain the role of the promotion strategy. Explain how to formulate promotion plans. Describe considerations for putting together a promotional mix. Describe the elements of a promotional mix. Section 12.1 Developing a Promotion Strategy

The Role of Promotion Strategy Key Term Promotion is communication intended to persuade, inform, or remind a target audience about a business or its products.   The promotion strategy involves planning, determining the right promotional mix, and selecting specific promotional activities. Section 12.1 Developing a Promotion Strategy

Objectives of Promotional Plan Explain major features and benefits of your products. Communicate information about sales. Clear up customers’ questions and concerns. Introduce new goods or services. Section 12.1 Developing a Promotion Strategy

Promotional Plan Format Both a preopening and an ongoing plan can be organized around a promotional campaign, independent promotional activities, or a combination of the two. Key Term campaign a series of related promotional activities with a similar theme Section 12.1 Developing a Promotion Strategy

Selecting a Promotional Mix Every business has a unique promotional mix. Key Term promotional mix the combination of different promotional elements that a company uses to reach and influence potential customers Public Relations Section 12.1 Developing a Promotion Strategy

The Elements of the Promotional Mix personal selling advertising Promotional Mix sales promotion publicity

When selecting elements for a promotional mix, consider: target market product value promotional channels time frame cost Section 12.1 Developing a Promotion Strategy

Advertising In the United States, most businesses spend about one-fourth of their advertising dollars on newspaper ads. Key Term advertising the paid nonpersonal presentation of ideas, goods, or services directed at a mass audience by an identified sponsor by means of print and broadcast Section 12.1 Developing a Promotion Strategy

Advertising Types of Advertising newspapers magazines specialty items direct mail Types of Advertising outdoor advertising Internet transit advertising directories television radio 9 Section 12.1 Developing a Promotion Strategy

Advertising A specialty item serves as a reminder of a business. Key Term specialty item an advertising device that includes giveaways, such as pens, T-shirts, and caps, printed with a business name or logo Section 12.1 Developing a Promotion Strategy

Publicity Taking advantage of publicity means calling attention to yourself and your business. Key Term publicity placement in the media of newsworthy items about a company, product, or person Section 12.1 Developing a Promotion Strategy

? ? ? ? ? Publicity A news release should answer these questions: Key Term news release a brief newsworthy story that is sent to the media Who? What? Where? When? Why? ? ? ? ? ? Section 12.1 Developing a Promotion Strategy

Publicity Public relations may generate unsolicited publicity when such activities are reported by the media. Key Term public relations activities designed to create goodwill toward a business or control damage done by negative publicity Section 12.1 Developing a Promotion Strategy

Sales Promotion Examples of Sales Promotion displays samples premiums sweepstakes and contests rebates

Sales Promotion One type of sales promotion may be to include a premium with a purchase. Key Term premium any item of value that a customer receives in addition to the good or service purchased; designed to attract new customers or build loyalty among existing customers, they may include coupons and gifts Section 12.1 Developing a Promotion Strategy

Rebate Sales Promotion A sweepstakes is a sales promotion that can draw attention to a business. Some companies give a rebate on purchases. Key Terms rebate a return of part of the purchase price of a product used as an incentive for customers to purchase the product sweepstakes a simple game of chance used by a business to get customers interested in what the company has to offer Rebate

Application Exercise Now you try it! Find a group of 3-4 people Select a type of promotion to focus on (publicity, advertising or sales promotion) Chose from select products to work with Come up with 2 – 3 ideas on how to promote the product using the type of promotion you selected. Explain how they will best suit the market.

Describe how to determine promotional costs for a start-up business. 12.2 Describe how to determine promotional costs for a start-up business. Describe approaches to implementing your promotion strategy. Discuss options for short-term changes in your promotion strategy. Name considerations for updating the promotion strategy. Section 12.2 Budgeting and Implementing Promotional Plans

Budgeting for Promotion To plan the promotional budget for a new venture, you must take these steps: Cost out promotional activities. Compare industry averages. Make final adjustments. Section 12.2 Budgeting and Implementing Promotional Plans

Compare Industry Averages You can find out the industry average for promotional expenses from such sources as trade associations or the SBA. Key Term industry average the standard used to compare costs among companies; usually expressed as a percentage Section 12.2 Budgeting and Implementing Promotional Plans

Basic Media Formats Print Include a headline, copy, illustrations, and a signature. Print Radio Same marketing message but it allows you to add music or sound effects. Radio Television Same elements apply, but it requires casting, set design, sound and filming. Television Internet Same components as print, but may also have audio, video, and animation. Internet

Getting Help As a business owner, you can carry out your promotional plans yourself or you can hire professionals to implement some or all of your promotional activities.   Professional help can come from the media, manufacturers and suppliers, and advertising agencies. Section 12.2 Budgeting and Implementing Promotional Plans

Getting Help You may be able to save on your promotional budget by arranging for cooperative advertising. Key Term cooperative advertising an arrangement in which advertising costs are divided between two or more parties Section 12.2 Budgeting and Implementing Promotional Plans

Getting Help An advertising agency can handle all phases of your advertising, including writing the copy, creating the artwork, choosing the media, and producing the ad. Key Term advertising agency a company that acts as intermediary between a business and the media to communicate a message to the target market Section 12.2 Budgeting and Implementing Promotional Plans

Factors for Evaluation Adjust Your Advertising market overall results source Factors for Evaluation Market How well did the ad succeed in reaching the target market? Source Was the source of the ad the most effective source? Motives What motivated the customer to buy? Messages How appropriate was the message? Media Did the selected media succeed in reaching the target audience with the message? Results How well did the ad accomplish its objectives Budget Was the budget acceptable> budget motive media message

Adjust Your Advertising One way to reduce the risk involved in an expensive advertising campaign is to conduct a consumer pretest. Key Term consumer pretest a procedure in which a panel of consumers evaluates an ad before its release Section 12.2 Budgeting and Implementing Promotional Plans

Revising the Promotion Strategy Conduct a formal review of your promotion strategy on a regular basis.   Use your sales forecast to arrive at a promotional budget to support that level of sales. Then revise your promotional mix promotion plan. Section 12.2 Budgeting and Implementing Promotional Plans

Review What are the four elements of a promotional mix? What should you consider when determining your promotional mix? What is one method to possibly generate positive publicity? What are the four basic media formats? What is meant by cooperative advertising?