The way that business benefits directly from promotion is through
Promotion of a value-added business and/or its products and services is important, especially for businesses selling directly to consumers. Promotion includes all activities designed to inform, persuade and influence people when they are making the decision to buy. Show
Types of PromotionThere are a variety of ways of promoting your business or product. Promotion is usually made up of advertising, publicity and sales promotion. Sometime personal selling is also included. 1) Advertising – Advertising includes all nonpersonal paid communications transmitted through mass media. It is controlled communication about a product. Through symbols and language, it tells what a product or service can do for the consumer. A well developed overall advertising program can tell consumers what a product or service can do for them compared to similar products on the market. If consumers are convinced, they will buy the products. 2) Publicity – Publicity provides free communications for a company through news stories in newsletters, newspapers, magazines, radio and television. It can be attained by sending a media release to radio, television, newspaper and magazine offices. A media release is a two page letter identifying a newsworthy event and outlining the who, what, when, where and why of the story. A media release is appropriate to announce the start-up of a new business, introduction of a new product, or any other success story related to the company. The media will publish or announce the story as a news item and, consequently, there is no expense for the processor. Publicity is one of the most effective and least costly means of promotion. 3) Sales promotion – Sales promotion includes all forms of communication not found in advertising, publicity and personal selling. It includes direct mail, coupons, volume discounts, sampling, rebates, demonstrations, exhibits, sweepstakes, trade allowances, samples and point-of-purchase displays. Promotion ObjectivesWhat do you want to accomplish with promotion? Your promotion objectives need to be clearly stated and measurable. They must be compatible with the mission and objectives of the company, as well as the competitive and marketing strategies of the business. Objectives vary for different products and different situations. For example, you must promote differently to brokers than to wholesalers. When promoting to a broker, you must promote what you want the broker to present to the wholesaler. When promoting to a wholesaler, you simply want the wholesaler to purchase the product. There are five general promotional objectives to choose from. The five types of objectives for promotional activities are:
Promotional StrategyA promotional strategy or plan will help you select the tools and processes needed to reach your promotional objectives. Once you have reviewed all the possible promotional tools, you must devise a promotional strategy. A promotional strategy should address the following issues:
Setting Promotional ExpendituresEstablishing the amount to spend on promotional is difficult. Below are some factors to consider in setting the size of your promotion budget.
Selecting Media OutletsOnce you have determined the amount to spend on promotion you must allocate the money among various media and promotional outlets. But don’t just select outlets based on low cost. Before looking at the dollar costs of different promotional media. It should be decided:
Common errors to avoid are:
Inexpensive Promotion SuggestionsIf your promotion budget is small, below are some inexpensive, appropriate and effective methods of promotion: What are the benefits of promotion to a business?The benefits of promotion are:. Creates a source of information.. Creates product differentiation.. Generates higher revenue.. Provides communication opportunities.. Creates target marketing or market segmentation.. Creates word of mouth.. Creates a reason to buy.. Creates a platform to cross-sell and upsell.. How does promotion benefit customers?Encourages new customers: Sales promotions allow potential customers to try something new, with low risk. Raises awareness: When you run ads supporting your sales promotion, more customers will see your business, increasing brand awareness.
What is a promotional method in business?The main methods of promotion are: Advertising. Public relations & sponsorship. Personal selling. Direct marketing.
What are the 4 types of promotion?The promotions mix is often divided into four categories: advertising, digital selling, sales promotion and public relations. Each of these promotion methods has their own role in generating revenue for a company.
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