The Promotion Strategy Back to Table of Contents.

The Promotion Strategy The Promotion Strategy

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2

Chapter 12

The Promotion The Promotion StrategyStrategy

Developing a Promotion StrategyDeveloping a Promotion Strategy

Budgeting and Implementing Budgeting and Implementing Promotional PlansPromotional Plans

12.1

12.2


3

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

12.1


4

The promotion strategy is the most visible marketing strategy.

It is designed to get the attention of prospective customers and convince them to buy from your business.


12.1


5

image

preselling

campaign

promotional mix

advertising

specialty item


12.1

publicity

news release

public relations

premium

rebate

sweepstakes


6

Drawing Up Promotional Plans

As a new business owner, you need two kinds of promotional plans:


a preopening plan to lay the groundwork

an ongoing plan to support your operation once it is under way


7

The Role of Promotion Strategy

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.


Preopening Plan

Section 12.1 Developing a Promotion Strategy 8

Objectives of a Preopening Plan

Establish a positive image.

Let potential customers know you are opening for business.

Bring in customers or have them contact your business.

Interest customers in your new company and products.


9

Preopening Plan

The image you establish in your preopening plan sets the tone for your promotional plan.

image the impression people have of a company; a company’s personality


Ongoing Plan


Objectives of an Ongoing 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.


11

Ongoing Plan

An ongoing promotional plan helps in preselling your goods or services.

preselling the act of influencing potential customers to buy before contact is actually made



12

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.

campaign a series of related promotional activities with a similar theme



13

Selecting a Promotional Mix

Every business has a unique promotional mix.

promotional mix the combination of different promotional elements that a company uses to reach and influence potential customers


Ongoing Plan


When selecting elements for a promotional mix, consider:

target market

product value

promotional channels

time frame

cost

The Elements of the Promotional Mix

15

PromotionalMix

advertising

publicity sales

promotion

personal selling



16

Advertising

In the United States, most businesses spend about one-fourth of their advertising dollars on newspaper ads.

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


Advertising

17

newspapers magazines

direct mail

outdoor advertising

directories

transit advertisingtelevision

radio

Internet

specialtyitems

Types ofAdvertising



18

Advertising

A specialty item serves as a reminder of a business.

specialty item an advertising device that includes giveaways, such as pens, T-shirts, and caps, printed with a business name or logo



19

Publicity

Taking advantage of publicity means calling attention to yourself and your business.

publicity placement in the media of newsworthy items about a company, product, or person



20

? ? ?

? ?

Publicity

A news release should answer these questions:

news release a brief newsworthy story that is sent to the media


Who? What? Where?

When? Why?


21

Publicity

Public relations may generate unsolicited publicity when such activities are reported by the media.

public relations activities designed to create goodwill toward a business or control damage done by negative publicity


Sales Promotion

22

Examplesof Sales

Promotion

displays

premiums

rebates samples

sweepstakes and contests



23

Sales Promotion

One type of sales promotion may be to include a premium with a purchase.

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



24

Sales Promotion

Some companies give a rebate on purchases.

rebate a return of part of the purchase price of a product used as an incentive for customers to purchase the product



25

Sales Promotion

A sweepstakes is a sales promotion that can draw attention to a business.

sweepstakes a simple game of chance used by a business to get customers interested in what the company has to offer



26

1. Explain the role of the promotion strategy.


The role of the promotion strategy is to set the course for and coordinate all aspects of promotion. It involves planning, determining the right mix, and selecting specific activities.

12.1


27

2. Explain preopening and ongoing promotional plans.


Preopening promotional plans establish the company’s image, let customers know the business is opening, bring in customers, and create interest in the business so the business will have customers when it opens. Ongoing promotional plans maintain and build sales after a business is open.

12.1


28

3. Describe considerations for putting together a promotional mix.


When selecting elements for a promotional mix consider the target market, product value, promotional channels, time frame, and cost.

12.1


29

4. Describe the elements of a promotional mix.


The elements of the promotional mix are advertising, sales promotion, publicity, and personal selling.

12.1


30

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

12.2


31

Thorough planning and information gathering can help you arrive at a realistic promotional budget.

That budget will have a direct affect on how you implement your promotional plans.


12.2


32

industry average

cooperative advertising


12.2

advertising agency

consumer pretest


33

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.


34

Compare Industry Averages

You can find out the industry average for promotional expenses from such sources as trade associations or the SBA.

industry average the standard used to compare costs among companies; usually expressed as a percentage


Print

Radio

Television

Internet

Basic Media Formats

Section 12.2 Budgeting and Implementing Promotional Plans 35

PrintInclude a headline, copy, illustrations, and a signature.

RadioInclude same elements as print, but you may add music or sound effects.

TelevisionSame elements apply, but it requires casting, set design, sound and filming.

InternetSame components as print, but may also have audio, video, and animation.


36

Getting Help

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.



37

Getting Help

You may be able to save on your promotional budget by arranging for cooperative advertising.

cooperative advertising an arrangement in which advertising costs are divided between two or more parties



38

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.

advertising agency a company that acts as intermediary between a business and the media to communicate a message to the target market



39

Making Possible Promotion Changes

There are three most common adjustments to the promotion strategy:


adjust your advertising

generate publicity

promote sales

Adjust Your Advertising

40

Factors for

Evaluation

market

media

budget

overall results source

motive

message



41

Adjust Your Advertising

One way to reduce the risk involved in an expensive advertising campaign is to conduct a consumer pretest.

consumer pretest a procedure in which a panel of consumers evaluates an ad before its release



42

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.



43

1. Describe how to determine promotional costs for a start-up business.


Promotional costs for a start-up business are determined by costing out the planned activities, comparing the costs to industry averages, and adjusting the budget if necessary.

12.2


44

2. Describe approaches to implementing your promotional strategy.


Two approaches to implementing a promotion strategy are developing your own promotion items and hiring professionals to do the job.

12.2


45

3. Discuss options for short-term changes in your promotion strategy.


Options for short-term changes are increasing the effectiveness of your advertising expenditures, capitalizing on publicity opportunities, and stimulating sales through sales promotions or changes in the sales force.

12.2


46

4. Name considerations for updating the promotion strategy.


To update the promotional plan consider the sales forecast for the upcoming period, make budget adjustments required by the forecast, and study changes in the target market, research results, and experiences to date. On the basis of those considerations, a new mix can be determined and a new plan developed.

12.2


47Section 12.2 Budgeting and Implementing Promotional Plans 47

Today, the technology exists for companies to personalize their Web Sites for each visitor.

Tailoring a Web page by using rules-based or inference-based personalization and cookies increases customer satisfaction and promotes sales.

Web SitePersonalization



Tech Termscookie

a file sent to a Web browser by a Web server that is used to record and store information for later use

inference-based personalization

a data analysis tool that is used to suggest products that are similar to the products a customer has viewed or purchased

personalization

the process of tailoring Web pages to individual users’ characteristics



Tech Termsprivacy policy

a statement on a Web site that explains how a company collects, uses, protects, and shares customers’ personal information

rules-based personalization

a data analysis tool that is used to recommend products that go with products a customer has viewed or purchased on a Web site


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