Transcript Promotion
PROMOTION Promotion is informing, reminding, persuading and influencing prospective customers about your business and products Promotion should be planned as overall strategy Promotional Plan 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 Design promotional mix activities • All activities that are done to promote the business • Consider timing • Consistent image Uses a combination of methods • • • • • Personal selling Advertising Visual merchandising Sales promotion Publicity PERSONAL SELLING 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… Prospecting Demonstrating Telling about product’s features and benefits Answering customer questions Overcoming objections Helping customers decide to buy Suggesting related products & services ADVANTAGES Most effective method of selling Many customers like direct contact Can explain product’s technical/complex features DISADVANTAGES Costly VISUAL MERCHANDISING Visual displays Arranging merchandise within store Examples • http://www.displays2go.com/visual_merchandising.htm • http://retail.about.com/od/merchandisingbuying/ig/Visu al-Displays-Photo-Gallery/ Purposes • • • • 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 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 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 Make yourself a news story/become visible • Provide a press release to the media New business in the area announcement Grand opening/Ribbon cutting A conference/training you attended Company anniversary Community or other special accomplishments Sponsorship Product/service good for community or individuals • Editorial commentaries PUBLICITY AND PUBLIC RELATIONS 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 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 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 Cost • Set budget for promotion Percentage of sales Objective – and-Task Advertising as Investment Spending as Much as the Competition What will best reach your customers? What will achieve objectives? Consider timing Image Make sure image is consistent across all promotional activities Evaluation Have an evaluation method for each promotional activity • Are objectives met? • Is money spent effectively? 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