PROMOTION n n Promotion is informing reminding

PROMOTION

n n Promotion is informing, reminding, persuading and influencing prospective customers about your business and products Promotion should be planned as overall strategy

Promotional Plan n Set objectives for promotion • Let people know that new business has opened • Gain new customers • Advertise specific new product/service • Announce new location • Sell overstock of product • Shut down business and sell inventory

n Design promotional mix activities • All activities that are done to promote the business • Consider timing • Consistent image n Uses a combination of methods • • • Personal selling Advertising Visual merchandising Sales promotion Publicity

PERSONAL SELLING n n One on one promotion How can it happen? • Salesperson in store • Door to door salesperson • Calling on prospective clients • Server at restaurant taking order

PERSONAL SELLING INCLUDES… n n n n Prospecting Demonstrating Telling about product’s features and benefits Answering customer questions Overcoming objections Helping customers decide to buy Suggesting related products & services

ADVANTAGES n n n Most effective method of selling Many customers like direct contact Can explain product’s technical/complex features DISADVANTAGES n Costly

VISUAL MERCHANDISING n n n Visual displays Arranging merchandise within store Examples • http: //www. displays 2 go. com/visual_merchandising. htm • http: //retail. about. com/od/merchandisingbuying/ig/Visu al-Displays-Photo-Gallery/

n Purposes • • n Attract attention of shoppers Stimulate interest in the product Show ways in which a product can be used Help consumers make selections • • • Color Light Proportion and balance Backgrounds Size of items Consider:

Advertising n n n Getting message to mass audience Variety of media channels Consider • How large is firm’s trading area? • Who are my customers and which media would they use? • What budget limitations do I face? • How important is repetition and continuity?

Sales Promotions n Any activity that supplements personal selling, visual merchandising, publicity, and advertising • Coupons • Rebates • Refunds • Contests/sweepstakes • Samples • Trade shows • Promotions http: //www. branders. com/

PUBLICITY AND PUBLIC RELATIONS n Make yourself a news story/become visible • Provide a press release to the media New business in the area announcement n Grand opening/Ribbon cutting n A conference/training you attended n Company anniversary n Community or other special accomplishments n Sponsorship n Product/service good for community or individuals n • Editorial commentaries

PUBLICITY AND PUBLIC RELATIONS n n Visibility of your business for little or no cost Consider local events: • High School athletic brochures • Community Theater brochures • Publishing of Community Information

BASIC ADVERTISING AND PROMOTIONAL MATERIALS n n Business Cards and Letterhead • Use consistent graphics, color scheme, font, image and message Signage (if customers are coming to you) • Name on door - expensive store sign • Sign represents who you are/what you do • Helps customers identify you, your company and your product or service. • Ensure consistency with other items

n Yellow Page listing • Free with business line • For additional ads, ask “Is this the most effective way to reach my target audience? ”

Choosing mix activities for promotional plan n Cost • Set budget for promotion Percentage of sales n Objective – and-Task n Advertising as Investment n Spending as Much as the Competition n n What will best reach your customers? What will achieve objectives? Consider timing

Image n Make sure image is consistent across all promotional activities

Evaluation n Have an evaluation method for each promotional activity • Are objectives met? • Is money spent effectively? n Possible evaluation methods • Increases in sales volume or foot traffic of customers • Compare against past years’ sales • Have customers mention where they heard about you

• Ask customers to bring in ads • Count coupons used • Examine sales of products in advertised weeks vs. non-advertised weeks