D. Marketing a Small Business 10.00 Identify the function of promotion in small business. 10.03 Identify promotional media activities used by small businesses.

A. Promotional Media Channels of communication that serve as tools for promoting ideas, goods, and services to consumers.

B. Identify factors affecting the costs of media 1. Types of media Newspaper Magazine Internet Radio Television

Circulation- Important in all media because rates are based on circulation totals. Primary circulation: The total number of copies sold. Secondary circulation: The number of people who read the newspaper but do not purchase it (“pass-along” readers).

Reach: The number of different people in a target audience who are exposed to a promotional message. Each person is included only once, even if they view the message more than once. Frequency: The average number of times a person in the target audience is exposed to a promotional message. Extensive coverage: Reaching a larger audience Intensive coverage: Reaching a small group of people more often. CPM (cost per thousand): The media cost of exposing 1,000 readers to an ad.

1) Usually poor quality in newspaper 3. Production costs: a. Color print 1) Usually poor quality in newspaper 2) Higher costs in print media 3) Four color or full-color ads are the most expensive b. Black and White print 1) Lowest rates offered for advertisements 2) Quality varies with the medium c. Audience size 1). Used by broadcast media 2). The larger the size of the audience, the higher the rate.

4. Preferred space positions a. Run-of-paper (ROP): The ad is placed where the print medium chooses. b. Premium position: Higher rates are charged for placement on back cover, inside first page, or on the first page. c. Bleed page: 1). The page has no border. The ad is printed to the edge of the page. 2). Costs are high. 4. Preferred space positions

4. Preferred space positions (cont.) d. Broadcast times. Rates vary based on five factors. 1). Time of day 2). Season of the year 3). Popularity 4). Commercial length 5). Audience reach

5. Demographics of target audience: The cost of the media can vary due to the type of media required to reach a particular target market. 6. Editorial Credibility and image: The degree of positive image of the chosen media impacts its rates for advertising. The media must have the ability to present a believable product. 7. Ability to obtain response rate: Media should be able to reach a large number of customers and obtain a high response rate.