1. 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

2. 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

3. 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

4. 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

5. 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

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

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

8. 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

9. 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

10. 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

11. 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

12. ? ? ? ? ? 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

13. 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

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

15. 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

16. 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

17. 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.

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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?