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Section Objectives Explain the role of the promotion strategy.

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2 Section Objectives Explain the role of the promotion strategy.
Explain how to formulate promotional plans. Identify considerations for putting together a promotional mix. Describe the elements of a promotional mix.

3 The Main Idea The promotion strategy is the most visible marketing strategy, designed to get the attention of prospective customers and convince them to buy from you. Promotional activities must be in the right mix.

4 Content Vocabulary image preselling campaign promotional mix
advertising specialty item publicity news release public relations premium rebate sweepstakes

5 a preopening plan to lay the groundwork for your opening
Drawing Up Promotional Plans As a new business owner, you need two kinds of promotional plans: a preopening plan to lay the groundwork for your opening a second plan to support your operation once it is under way

6 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.

7 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 your products or services. 7

8 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

9 Objectives of an Ongoing Promotional Plan
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. 9

10 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

11 Promotional Plan Format
campaign a series of related promotional activities with a similar theme Ex: Introduce your new service, a clown act, on a billboard, with flyers, and in the newspaper. OR Introduce your Electronic Pen on a billboard, but run an advertisement in the newspaper for a sale on your Microsoft Office tablet Both a preopening and an ongoing plan can be organized around a promotional campaign, independent promotional activities, or a combination of the two.

12 The Elements of the Promotional Mix
personal selling advertising Promotional Mix Internet Marketing publicity sales promotion 12

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 Ex: You advertise in a magazine, you have sales, frequent buyer cards, and knowledgeable sales people

14 When selecting elements for a promotional mix, consider:
Ongoing Plan When selecting elements for a promotional mix, consider: target market product value promotional channels time frame cost 14

15 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

16 Advertising Types of Advertising newspapers magazines specialty items
direct mail Types of Advertising outdoor advertising Internet directories radio television transit advertising 16

17 Advertising A specialty item serves as a reminder of a business.
an advertising device that includes giveaways, such as pens, T-shirts, and caps, printed with a business name or logo

18 Publicity publicity placement in the media of newsworthy items about a company, product, or person Ex: Derek Rose comes for a visit to meet and greet customers. Taking advantage of publicity means calling attention to yourself and your business.

19 ? ? ? ? ? Publicity A news release should answer these questions: Who?
a brief newsworthy story that is sent to the media Publicity is both free & not free Ex: If Derek Rose comes to your store, you will have to pay for that, However, It’s free because you don’t pay for the news story that you sent a news release for A news release should answer these questions: Who? What? Where? When? Why? ? ? ? ? ?

20 Publicity public relations activities designed to create goodwill toward a business or control damage done by negative publicity Ex: BP creating Facebook and Twitter accounts for people to vent their frustrations and concerns and for them to have a way to get information out that didn’t involve the media. Public relations may generate unsolicited publicity when such activities are reported by the media.

21 Sales Promotion Examples of Sales Promotion displays
sweepstakes and contests premiums Examples of Sales Promotion samples rebates 21

22 Sales Promotion 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,. Ex: With a purchase of $25 or more you get a free CD. Kohl’s Cash One type of sales promotion may be to include a premium with a purchase.

23 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 Ex: New cell phone purchase

24 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

25 After You Read 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.

26 After You Read 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 that the business will have customers when it opens. Ongoing promotional plans maintain and build sales after a business is open.

27 After You Read 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.

28 After You Read 4. Describe the elements of a promotional mix.
The elements of the promotional mix are advertising, sales promotion, publicity, and personal selling.

29 Section Objectives Determine promotional costs for a start-up business. Describe ways to implement your promotion strategy. Examine options for short-term changes in your promotion strategy. Identify considerations for updating the promotion strategy.

30 The Main Idea 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.

31 Set goals for your promotional activities so you can better evaluate how successful they were.
Ex: To increase sales by 10%

32 Content Vocabulary industry average cooperative advertising
advertising agency consumer pretest

33 Cost out promotional activities.
Budgeting for Promotion Cost out promotional activities. Allocate money available for promotional activities. 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

35 Basic Media Formats Print
Include a headline, copy, illustrations, and a signature. Print Radio Include same elements as print, but can add music or sound effects. Radio Television Same elements apply, but it requires casting, set design, sound, and filming. Television Internet Internet Same components as print, but may also have audio, video, and animation. 35

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 Federal Trade Commission (FTC)
Advertising Laws Federal Trade Commission (FTC) Protects consumers from false advertising When a company says something that is not supported by fact Bait & Switch which is offering a sale price for an item and then not stocking the item and convincing customers to buy a more expensive substitute. Will issue a Cease & Desist Order to stop and may even fine company

38 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

39 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

40 Making Possible Promotion Changes
The three most common adjustments to the promotion strategy are: adjust your advertising generate publicity promote sales Section 12.2 Budgeting and Implementing Promotional Plans

41 Factors for Evaluation
Adjust Your Advertising market budget source Factors for Evaluation results motives media messages Section 12.2 Budgeting and Implementing Promotional Plans 41

42 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

43 Conduct a formal review of your promotion strategy on a regular basis.
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.

44 After You Read 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.

45 After You Read 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.

46 After You Read 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.

47 After You Read 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.

48 End of Chapter 12 The Promotion Strategy

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