The Marketing Plan Consists of 4 strategies Product Place Price Promotion

Promotional Strategy

Pre-opening Plan Establish positive imageEstablish positive image Image – beliefs, ideas, impressions people have about your businessImage – beliefs, ideas, impressions people have about your business Timing – start about 6 weeks prior to opening, then intensify...let people know your business is coming.Timing – start about 6 weeks prior to opening, then intensify...let people know your business is coming. Grand openingGrand opening

Ongoing Promotional Plan Pre-selling – influencing potential customers to buy be contact is madePre-selling – influencing potential customers to buy be contact is made Explain features and benefits of productsExplain features and benefits of products Communicate sales informationCommunicate sales information Answer questions and concernsAnswer questions and concerns Introduce new goods or servicesIntroduce new goods or services Seasonal or quarterly to begin withSeasonal or quarterly to begin with

Promotional Plan Format Campaign – related promotional activities with similar themesCampaign – related promotional activities with similar themes Develop a campaign themeDevelop a campaign theme –Returning characters –Grand opening –Back to school –Summer/vacation –Valentine’s Day

Specifics of format Brief descriptionBrief description Media placement (TV, coupon, press release etc.)Media placement (TV, coupon, press release etc.) Dates to runDates to run Number of runs, copies or itemsNumber of runs, copies or items CostsCosts Rationale - How it fits with your business goalsRationale - How it fits with your business goals

In developing your promotional strategy, you should consider… Target Market – may have to refocusTarget Market – may have to refocus Budget – may increase at times when your product is more in demandBudget – may increase at times when your product is more in demand Promotional MixPromotional Mix

Promotional Mix AdvertisingAdvertising Public Relations/PublicityPublic Relations/Publicity Personal SellingPersonal Selling Sales PromotionSales Promotion

Advertising Paid presentation of ideas, goods or services directed toward a mass audience by an identified sponsor.

Types of Advertising – each medium has own benefits and drawbacks BroadcastBroadcast –Television –Radio –Internet SpecialtySpecialty –Giveaways –Hats, pens, mugs Print –Newspaper –Magazine –Direct Mail –Outdoor –Directory –Transit

Promotional Mix AdvertisingAdvertising Public Relations/PublicityPublic Relations/Publicity Personal SellingPersonal Selling Sales PromotionSales Promotion

Publicity Placement of newsworthy items about a company or product in the media

Publicity Activities News releases – brief newsworthy stories sent to the mediaNews releases – brief newsworthy stories sent to the media Write feature articles of interest to your target marketWrite feature articles of interest to your target market Submit captioned photosSubmit captioned photos Schedule press conferences Seek interviewsSeek interviews

Public Relations Activities designed to create goodwill toward a business. Can be donation of money to charities or equipment to a school.

Examples of Public Relations Avon Walk for the CureAvon Walk for the Cure Ronald McDonald HouseRonald McDonald House Community RelationsCommunity Relations Business sponsorships of DECA or FBLABusiness sponsorships of DECA or FBLA

+ Publicity/Public Relations - Advantages FreeFree More credibleMore credible Tax deductible to businessTax deductible to business Easy to doEasy to do Disadvantages No control Can be negative

Promotional Mix AdvertisingAdvertising Public Relations/PublicityPublic Relations/Publicity Sales PromotionSales Promotion Personal SellingPersonal Selling

Sales Promotion Use of incentives or activities to stimulate traffic or sales

Types of Sales Promotion Visual merchandising – displaysVisual merchandising – displays Sweepstakes and contestsSweepstakes and contests Premiums – “freebies” with purchase – includes couponsPremiums – “freebies” with purchase – includes coupons Rebates – money back after purchaseRebates – money back after purchase Free samplesFree samples

Promotional Mix AdvertisingAdvertising Public Relations/PublicityPublic Relations/Publicity Sales PromotionSales Promotion Personal SellingPersonal Selling

Personal Selling Verbal presentations to one or more potential buyers with the intent of making a sale.Verbal presentations to one or more potential buyers with the intent of making a sale. Designed to “close” the sale after the others have attracted the customerDesigned to “close” the sale after the others have attracted the customer

Promotional Decisions Keep your TARGET MARKET in mind What’s my message or theme? What kind of media should I use? What public relations/publicity activities should I do? What sales promotion devices are appropriate? Will I use personal selling? How? How will these activities be coordinated?

Cost our promotional activities Determine the costs you anticipate. Get rates from the media you expect to use. Publicity costs nothing; however, the event will most likely cost something.

Carry out plan Do it yourselfDo it yourself –Desktop publishing –Radio commercials Getting helpGetting help –Professional marketing firms Fee variesFee varies –Media (can have departments to help you) –Manufacturer’s and suppliers (cooperative advertising) can help you with costs –Agencies

Possible Promotional Changes Make the most of your advertising dollarsMake the most of your advertising dollars –Pretests – find out what the target customer thinks before you complete the campaign Capitalize on publicity opportunitiesCapitalize on publicity opportunities –Sponsor a community team Stimulate salesStimulate sales –Promotions, discounts, premiums, etc.

Revise strategy as needed Quarterly or semiannual reviewQuarterly or semiannual review –Acquire sales forecasts for the next period –Arrive at your promotional budget –Decide on revised promotional mix Be consistent with your marketing objectives and strategies.Be consistent with your marketing objectives and strategies.

Assignments Don’t forget to find the PR article for Thursday.Don’t forget to find the PR article for Thursday. Promotional mix is due on Tuesday.Promotional mix is due on Tuesday. Bring in a premium that you or a family member has received; be prepared to discuss if it had an impact on your purchase decisions.Bring in a premium that you or a family member has received; be prepared to discuss if it had an impact on your purchase decisions.

Review for quiz Be sure you know the key terms.Be sure you know the key terms. Can you explain why pre-opening and ongoing promotions are important?Can you explain why pre-opening and ongoing promotions are important? Can you tell the difference between advertising and publicity?Can you tell the difference between advertising and publicity? Can you list various methods of advertising media? Why are each important?Can you list various methods of advertising media? Why are each important?