Promotion is informing, reminding, persuading and influencing prospective customers about your...

Promotion is informing, reminding, Promotion is informing, reminding, persuading and influencing persuading and influencing prospective customers about your prospective customers about your business and productsbusiness and products

Promotion should be planned as Promotion should be planned as overall strategyoverall strategy

Promotional PlanPromotional Plan

Set objectives for promotionSet objectives for promotion• Let people know that new business has Let people know that new business has

openedopened• Gain new customersGain new customers• Advertise specific new product/serviceAdvertise specific new product/service• Announce new locationAnnounce new location• Sell overstock of productSell overstock of product• Shut down business and sell inventoryShut down business and sell inventory

Design promotional mix activitiesDesign promotional mix activities• All activities that are done to promote the All activities that are done to promote the

businessbusiness• Consider timingConsider timing• Consistent imageConsistent image

Uses a combination of methodsUses a combination of methods• Personal sellingPersonal selling• AdvertisingAdvertising• Visual merchandisingVisual merchandising• Sales promotionSales promotion• Publicity Publicity

One on one promotionOne on one promotion How can it happen?How can it happen?

• Salesperson in storeSalesperson in store• Door to door salespersonDoor to door salesperson• Calling on prospective clientsCalling on prospective clients• Server at restaurant taking orderServer at restaurant taking order

ProspectingProspecting DemonstratingDemonstrating Telling about product’s features and Telling about product’s features and

benefitsbenefits Answering customer questionsAnswering customer questions Overcoming objectionsOvercoming objections Helping customers decide to buyHelping customers decide to buy Suggesting related products & servicesSuggesting related products & services

ADVANTAGESADVANTAGES DISADVANTAGESDISADVANTAGES

Most effective method Most effective method of sellingof selling

Many customers like Many customers like direct contactdirect contact

Can explain product’s Can explain product’s technical/complex technical/complex featuresfeatures

CostlyCostly

Visual displays Visual displays Arranging merchandise within store Arranging merchandise within store ExamplesExamples

• http://www.displays2go.com/visual_merchandising.htm • http://retail.about.com/od/merchandisingbuying/ig/Visual

-Displays-Photo-Gallery/

PurposesPurposes• Attract attention of shoppersAttract attention of shoppers• Stimulate interest in the productStimulate interest in the product• Show ways in which a product can be usedShow ways in which a product can be used• Help consumers make selectionsHelp consumers make selections

Consider:Consider:• Color Color • LightLight• Proportion and balanceProportion and balance• Backgrounds Backgrounds • Size of items Size of items

AdvertisingAdvertising Getting message to mass Getting message to mass

audienceaudience Variety of media channelsVariety of media channels ConsiderConsider

• How large is firm’s trading area?How large is firm’s trading area?• Who are my customers and which Who are my customers and which

media would they use?media would they use?• What budget limitations do I face?What budget limitations do I face?• How important is repetition and How important is repetition and

continuity?continuity?

Sales PromotionsSales Promotions Any activity that supplements Any activity that supplements

personal selling, visual personal selling, visual merchandising, publicity, and merchandising, publicity, and advertisingadvertising• CouponsCoupons• RebatesRebates• Refunds Refunds • Contests/sweepstakesContests/sweepstakes• Samples Samples • Trade showsTrade shows• Promotions Promotions

http://www.branders.com/

Make yourself a news story/become Make yourself a news story/become visiblevisible• Provide a press release to the mediaProvide a press release to the media

New business in the area announcementNew business in the area announcement Grand opening/Ribbon cuttingGrand opening/Ribbon cutting A conference/training you attendedA conference/training you attended Company anniversaryCompany anniversary Community or other special accomplishmentsCommunity or other special accomplishments SponsorshipSponsorship Product/service good for community or Product/service good for community or

individualsindividuals

• Editorial commentariesEditorial commentaries

Visibility of your business for little or Visibility of your business for little or no costno cost

Consider local events:Consider local events:• High School athletic brochuresHigh School athletic brochures• Community Theater brochuresCommunity Theater brochures• Publishing of Community InformationPublishing of Community Information

Business Cards and LetterheadBusiness Cards and Letterhead• Use consistent graphics, color scheme, Use consistent graphics, color scheme,

font, image and messagefont, image and message

Signage (if customers are coming to Signage (if customers are coming to you)you)• Name on door - expensive store signName on door - expensive store sign• Sign represents who you are/what you Sign represents who you are/what you

dodo• Helps customers identify you, your Helps customers identify you, your

company and your product or service.company and your product or service.• Ensure consistency with other items Ensure consistency with other items

Yellow Page listingYellow Page listing• Free with business line Free with business line • For additional ads, ask “Is this the most For additional ads, ask “Is this the most

effective way to reach my target effective way to reach my target audience?” audience?”

Choosing mix activities for Choosing mix activities for promotional plan promotional plan

CostCost• Set budget for promotionSet budget for promotion

Percentage of salesPercentage of sales Objective – and-TaskObjective – and-Task Advertising as InvestmentAdvertising as Investment Spending as Much as the Competition Spending as Much as the Competition

What will best reach your customers?What will best reach your customers? What will achieve objectives?What will achieve objectives? Consider timing Consider timing

ImageImage

Make sure image is consistent across Make sure image is consistent across all promotional activitiesall promotional activities

EvaluationEvaluation

Have an evaluation method for each Have an evaluation method for each promotional activitypromotional activity• Are objectives met?Are objectives met?• Is money spent effectively?Is money spent effectively?

Possible evaluation methodsPossible evaluation methods• Increases in sales volume or foot traffic of Increases in sales volume or foot traffic of

customerscustomers• Compare against past years’ salesCompare against past years’ sales• Have customers mention where they heard Have customers mention where they heard

about youabout you

• Ask customers to bring in adsAsk customers to bring in ads• Count coupons usedCount coupons used• Examine sales of products in advertised Examine sales of products in advertised

weeks vs. non-advertised weeksweeks vs. non-advertised weeks