Learner Guide: Heart Trust/National Training Agency

LG-BSBBAD0412A PROMOTE PRODUCTS AND SERVICES
LEARNER GUIDE
PROMOTE PRODUCTS AND SERVICES
Published by
HEART TRUST/NATIONAL TRAINING AGENCY
Produced by
Learning Management Services Department

Gordon Town Road
Kingston 7
Jamaica W.I.
This material is protected by copyright. Copying this material or any part of it by any means,
including digital or in any form is prohibited unless prior written permission is obtained from
the HEART Trust/NTA.
*** 2004 ***
Version 1 LRDU – NOV. 04

TABLE OF CONTENTS
PAGE
Introduction................................................................................................................................... 1
Welcome ......................................................................................................................................1
This Competency Unit.................................................................................................................1
Before You Start ..........................................................................................................................2
Planning Your Learning Programme..........................................................................................2
Self-Assessment Checklist ..........................................................................................................3
How To Use This Learner Guide................................................................................................5
Using The Computer And Other Resources...............................................................................6
Method Of Assessment ...............................................................................................................6
Quality Assurance........................................................................................................................7
Element 1: Develop and Maintain Knowledge of Products and Services ....................... 8
Self Assessment Checklist ................................................................................................ 17
Element 2: Recommend Products and Services .............................................................. 18
Element 3: Advise on Promotional Activities .................................................................. 23

LG-BSBBAD0412A:
PROMOTE PRODUCTS AND
SERVICES
INTRODUCTION
Welcome
Welcome to the Learner Guide for Unit of Competency “Promote Products and Services”.
This is just one of a number of Learner Guides produced for the Business Administration stream
of the Business and Commerce Industry, and it is designed to guide you, the learner, through a
series of learning processes and activities that will enable you to achieve the specified learning
outcomes for the competency unit.
The content of this guide was developed from the Competency Standard BSBBAD0412A, which
is one of the basic building blocks for the National Vocational Qualification of Jamaica (NVQ-J)
certification within the industry. Please refer to your Learner’s Handbook for a thorough
explanation of standards and competencies, and how these relate to the NVQ-J certification.
You are also advised to consult the Competency Standard and assessment instrument for a better
understanding of what is required to master the competency.
This Competency Unit
“Promote Products and Services” addresses the knowledge and skills requirements to
effectively promote products and services. There are three main areas or elements:
Element 1: Develop and maintain knowledge of products and services
Element 2: Recommend products and services
Element 3: Advise on promotional activities
As you go through each element, you will find critical information relating to each one. You are
advised to study them carefully so that you will be able to develop the necessary knowledge,
skills and attitudes for promoting products and services.
Version 1 LRDU – NOV. 04 1

Before you start
Before you start this Learner Guide, you need to:
a. Obtain a Learner Logbook. You will use it to record evidence of your new
skills/competence. As you demonstrate your new skills, record your activities and have your
learning facilitator sign off on them. This will allow you to provide evidence of your
competence when you are being assessed against the competency standard.
b. Ensure that you have access to the facilities and equipment necessary for learning.
c. Ensure that your learning resources are available.
d. Ensure that you are wearing suitable clothing, that tools and equipment are safe, and that the
correct safety equipment is used.
e. Plan your learning programme (see below).
f. Understand how to use this Learner Guide (see below).
Planning your learning programme
The self-assessment checklist on the following page will assist you in planning your training
programme and it will help you to think about the knowledge and skills needed to demonstrate
competency in this unit. As you go through the checklist you will be able to find out what
elements you have already mastered and which ones you will need to pay more attention to as
you go through the learning process.
To complete the self-assessment checklist, simply read the statements and tick the ‘Yes’ or ‘No’
box. You should do this exercise now.

Self-Assessment Checklist
Promote Products and Services
Element 1 Develop and Maintain Knowledge of Products

and Services Yes No
1. I can actively research a comprehensive knowledge and

understanding of industry products and services from
authoritative sources ( ) ( )
2. I can identify and understand characteristics of products

and services using available product and service
documentation ( ) ( )
3. I can document and maintain information on products and

services accurately in a format consistent with
organisational requirements ( ) ( )
4. I can apply acquired knowledge to improve quality within

personal work areas ( ) ( )
Element 2 Recommend Products and Services Yes No
1. I can ensure that recommendations on products and services

are in line with organisational requirements ( ) ( )
2. I can ensure that recommendations emphasize product and

service issues relevant to client needs ( ) ( )
3. I can ensure that evidence in support of recommendations are

verified and presented in suitable format ( ) ( )
4. I can structure recommendations to identify clear benefits

to clients and the organization ( ) ( )

Element 3 Advise on Promotional Activities Yes No
1. I can provide advice that is clear and supported by

verifiable evidence and is compatible with organisational
requirements ( ) ( )
2. I can ensure promotional documents and materials are

appropriate for presentation of the organisation’s products
and services ( ) ( )
3. I can ensure that costs of promotional activities conform

to budget resources ( ) ( )
4. I can estimate impact of promotional activities from

verifiable customer feedback sources ( ) ( )
5. I can evaluate and incorporate benefits of promotional

activities in plans for future promotional activities ( ) ( )
How did you do?
If you ticked all or most of the ‘Yes’ boxes then you might not need to go through the entire
guide. Ask your learning facilitator to assist you in determining the most appropriate action you
should take.
If you ticked a few of the ‘Yes’ boxes or none at all then you should work through all of the
guide, even though some of the material may be familiar to you.
Plan your learning based on your answers. Be sure to involve your learning facilitator in the
planning process.

How to use this Learner Guide
This Learner Guide is designed to assist you in working and learning at your own pace.
We suggest that you:
• Go through the sections/elements as they are presented (starting at Section 1)
• Check your progress at each checkpoint to ensure that you have understood the material
• Observe the icons and special graphics used throughout this guide to remind you of what you
have to do and to enhance your learning. The icons and their meanings are as follows:
Complete Assessment Exercise

This exercise requires you to think about the knowledge and skills
that you have or will develop in this competency unit.
Definition Box
Words/phrases are defined or explained in this box. The
words/phrases being explained are in bold print.
Checkpoint
This denotes a brain teaser and is used to check your
understanding of the materials presented. No answers are
provided for the questions asked.
Activity
This denotes something for you to do either alone or with
the assistance of your trainer/supervisor.
Reference
Points you to the reference materials and other support
documents or resources used in compiling the unit content.

• Ask your learning facilitator for help if you have any problems with the interpretation of the
contents, the procedures, or the availability of resources.
• Complete each activity as you come to it. If the activity requires you perform an actual task,
be sure to tell your learning facilitator when you get to that activity so that he/she can make
any arrangements, if necessary.
• Get your learning facilitator to sign and date the Learner Logbook when you have completed
an activity.
• Complete the self-assessment checklist at the end of each section or element.
When you have worked through all elements of the guide, and when you can tick every ‘Yes’
box, you are ready for assessment and should ask your learning facilitator to assist you in making
the arrangements to have your performance assessed.
Using the Computer and Other Resources
Where your activities refer you to the library, computer and Internet resources, ask your learning
facilitator to assist you with locating these resources. If you are getting your training in an
institution, there may be a library and a computer laboratory. If this is not the case, visit the local
library and find out what resources are available.
If you are new to the computer and the Internet, someone in the computer room should be able to
show you how to use these resources.
Please note that in many of your activities you have been referred to information on the Internet.
This is because the Internet has a vast amount of information that can help you in acquiring the
particular competencies. We would like to advise you, however, that we cannot guarantee that
all the sites will be available when you need them. If this happens, ask your learning facilitator
to assist you with locating other sites that have the information you require.
Method of Assessment
Competency will be assessed while you are actually performing the tasks related to this
competency. This may be in a real workplace or a simulated situation that accurately relates to
the work situation. You are advised to consult the associated competency standard for further
details relating to the assessment strategies.
You may now start your learning. Have fun while you work!

Quality Assurance
A feedback form is included at the back of each Learner Guide; so all users are afforded the
opportunity to document their concerns pertinent to the various aspects of the guide. Such
concerns will assist in the review process of the Learner Guides. Users are encouraged to cut out
the form, complete and submit it to the address provided.

ELEMENT 1: DEVELOP AND MAINTAIN KNOWLEDGE OF

PRODUCTS AND SERVICES
LEARNING OUTCOMES
As you go through this element you will acquire the necessary knowledge, skills and attitudes to
organize and maintain appointment and reminder systems. Your learning facilitator is there to
assist you through the various activities. Upon completion you should be able to:
1. Research products and services from authoritative sources

2. Identify characteristics of products and services
3. Accurately document information on products and services and maintain in a format
consistent with organizational requirements.
4. Improve quality within personal work areas through knowledge acquired.
What is marketing?
A social and managerial process by which individuals and groups

obtain what they need and want through creating and exchanging
products and value with others.
Demands
Human wants that are backed by buying power.
buying power.
Product
Anything that can be offered to a market for attention, acquisition, use

or consumption that might satisfy a want or need.
RESEARCH PRODUCTS AND SERVICES FROM AUTHORITATIVE SOURCES
Products and services should be researched from authoritative sources to ensure that the data
used is relevant, current and accurate. Collecting incorrect information to use as a benchmark
can cause negative consequences. Companies should always ensure that background checks are
done on the sources used. Marketing Research is the function that links the consumer, customer
and public to the marketer through information-information used to identify
and define marketing opportunities and problems; to generate, refine and evaluate marketing
actions; to monitor marketing performance; and to improve understanding of the marketing
process.

Product and service documentation include:
• Operational guidelines
• Marketing data
• Colleagues’ reports
• Industry reports
• Sales figures
CHECKPOINT
What are some of the sources of information for market research

data.
Information can be gathered from various authoritative sources to gain a comprehensive

knowledge and understanding of industry products and services. Some of these sources include:
• Industry associations
• Authorized suppliers
• Industry conferences
• Recognized industry media sources
Information Analysis
Information gathered by the company’s market research usually requires more analysis and
sometimes managers may need more help to apply the information to marketing problems and
decisions. This analysis allows managers to answer the following questions:
• What are the major variables affecting my sales and how important is each one?
• What are the best variables for segmenting my market, and how many segments exist?
• What are the best predictors of which consumers are likely to buy a particular brand?
The Market Research Process
Defining the Developing the Implementing Interpreting

problem and research plan for the research and reporting
research objectives collecting plan-collecting the findings
information and analyzing

Forecasting
The art of estimating future demand

by anticipating what buyers are
likely to do under a given set of
conditions
Most companies use a three stage procedure to arrive at a sales forecast. These are as follows:
• Environmental forecast
• Industry forecast
• Company sales forecast
Common Sales Forecasting Techniques
Based on: Methods

What people say Survey of buyers’ intentions
Composite sales force opinions
Expert opinion
What people do Test markets

What people have done Time-series analysis
Leading indicators
Statistical Demand Analysis
Expert Opinion
As a Supervisor you need to seek expert opinion as one of your marketing tools. Some of these
experts include dealers, distributors, suppliers, marketing consultants and trade associations.
Companies can also use special groups of expert to prepare forecasts.
ACTIVITY
You are the marketing supervisor. Select three methods of sales

forecasting and state how you would use these in creating a
competitive advantage for your company.

IDENTIFY CHARACTERISTICS OF PRODUCTS AND SERVICES
What is a product?
A product maybe defined as everything both favourable and unfavourable that a person receives
in an exhange.
There are different types of consumer products

• Business product (INDUSTRIAL PRODUCT)
• Consumer product
• Convenience product
Convenience product
A relatively inexpensive item that merits little shopping
effort.
Product
That which is used to manufacture other goods or services,
to facilitate an organization’s operations, or to resell to other
customers.
Product
That which is used to manufacture other goods or services,
to facilitate an organization’s operations, or to resell to other
customer.
CHECKPOINT
• What is a product?
• Name (3) three types of consumer products?

Branding
A brand is a name, term, symbol, design, or combination thereof that identifies a seller’s
products and differentiate from competitors’ products. For example General Motors.
Features of a good brand name
• Ease to pronounce
• Easy to recognize
• Easy to remember
• Concise/brief in title
• Is distinctive, unique
• Describes the product
• Describes the product use
• Describes product benefits
• Has a positive connotation
The Marketing Mix
The marketing mix is a set of controllable marketing tools that a business mixes, or blends
together, to try and increase demand for their product. The many tools or possibilities, can be
divided into four groups, referred to as the four P’s. Marketing is all about getting the right
product to the right place at the right time, at the right price, using the right promotion and
attract customers who will purchase your products and services.
It is important for an organization to identify its target market before attempting to blend
marketing tools to create a marketing mix.

THE MARKETING MIX
ACTIVITY
• Using the 4 Ps of marketing and design a Marketing Plan.
• Identify three best practices from other industries that your

company can adapt to provide better value for your
customers and say how you would integrate these in your
marketing plan.

Individual Product Decisions

Product
Product Branding Packaging Labelling Support
Attributes Services
Product attributes define the benefits that the products will offer the consumer. Such benefits
include quality features and design.
Product quality
This is an important positioning tool used by the marketer. Quality refers to level and
consistency. In essence, product quality refers to the ability of the product to perform its
functions. Some important characteristics include the product’s durability, reliability, precision,
ease of operation and others.
What is quality?
Quality is the totality of features and

characteristics of a product or service
that bear on its ability to satisfy stated
or implied needs.
Product features
Different products have different distinguishable features which make them unique. A company
can make models that are superior to its competitors by adding features and benefits. If a
company wants to create a competitive advantage that company should survey buyers from time
to time to get their views on the products and services.
Product designs
This is the process of designing a product’s style and function.

ACTIVITY
Explain product classifications and contrast the differing types of

consumer and industrial products.
DOCUMENT INFORMATION ON PRODUCTS AND SERVICES
Organizational requirements include:
• quality assurance and/ procedures manual

• goals, objectives, plans, systems and processes
• legal and organizational policy/guidelines and requirements
• Occupational Health and Safety policies, procedures and programmes
• Confidentiality and security requirements
• Access and equity principles and practice
• Ethical standards
• Quality and continuous improvement processes and standards
• Defined resource parameters
• Who is responsible for products or services
• Pricing and discount policies
• Replacement and refund policy and procedures
• Payment and delivery options
• Filing and documentation storage processes
Refer to: http://www.ntis.gov.au Accessed January 31, 2005
Kotler, P.&Armstrong, G.(1996), Principles of Marketing p. 114, South-

Western Publishers, Ohio, U.S.A
Lamb, P., Hair, D., Mc Daniel, H. (1999). MARKETING, 7th ed., (South-
Western Publishers, Ohio, U.S.A

Table 3.3 Tools of Process Improvement

Process Tool Purpose
Benchmarking Measure and compare process results to a
standard of excellence
Data collection tools(surveys, sampling, Document internal and external customer
checklists) assumptions and perceptions about
appropriateness and effectiveness of a
process and reveal unstable processes
Control chart Identify capability, stability and central
tendency of a process
Scatter diagram Show graphically the relationship between
process performance data and some overall
performance measure, such as customer
satisfaction or service quality
Pareto Chart Separate the vital few causes of process
failures
Fishbone diagram Show possible causes of process
shortcomings or weaknesses.
Source: Weinstein& Johnson.(1999).Designing and Delivering Superior Customer Value, St.

Lucie Press, U.S.A.
ACTIVITY
You are the manager of a Restaurant and you begin to notice that
your lunch business is steadily declining. You notice that
customers are queuing up longer at the drive-through window.
Which process improvement tools would you consider and why?

ARE YOU READY TO PROVE YOUR COMPETENCE?
Now that you have completed this element, check whether you have fully grasped all the
components by doing the following Self Assessment.
Checklist 1 Yes No
1. I know how to research products and services from

authoritative sources ( ) ( )
2. I can identify characteristics of products and services using

available documentation ( ) ( )
3. I know how to accurately document information on products

and services and maintain in a format consistent with
organizational requirements ( ) ( )
4. I can improve quality within personal work areas through

knowledge acquired ( ) ( )
Checklist 2 Yes No
1. Products and services researched from authoritative sources ( ) ( )
2. Characteristics of products and services identified using

available documentation ( ) ( )
3. Information on products and services documented and maintained

in a format consistent with organizational requirements ( ) ( )
4. Acquired knowledge is applied to improve quality

within personal work areas ( ) ( )

ELEMENT 2: RECOMMEND PRODUCTS AND SERVICES
LEARNING OUTCOMES
recommend products and services. Your learning facilitator is there to assist you through the
various activities. Upon completion you should be able to:
1. Make recommendations on products and services based on organizational requirements

2. Ensure that recommendations emphasize
3. Verify evidence in support of recommendations and present in a suitable format.
4. Structure recommendations to identify clear benefits to clients and the organization.
MAKE RECOMMENDATIONS ON PRODUCTS AND SERVICES BASED ON

ORGANIZATIONAL REQUIREMENTS
Recommendations for the Market driven Manager
• Create customer focus throughout the business

• Listen to the customer
• Define and nurture your distinctive competence
• Define marketing as market intelligence
• Target customers precisely
• Manage for profitability, not sales volume
• Make customer value the guiding star
• Let the customer define quality
• Measure and manage customer expectations
• Build customer relationships and loyalty
• Define the business as a service business
• Commit to continuous improvement
• Manage culture along with strategy
• Grow with partners and alliances
• Destroy marketing bureaucracy.
Refer to: Weinstein &Johnson, 2000. Designing and Delivering Superior Customer
Value) Concepts, Cases and Applications, South- Western publishers,
Cincinnati- Ohio, U. S. A.

Recommendations should be based on organizational requirements at all times. Some of the

important organizational requirements would include
• Quality assurance standards or manuals

• Ways to improve processes and systems
• Occupational Health and Safety Policies
• Ethical standards
• Pricing and discount policies, among others
Make recommendations based on product and service issues relevant to client needs
Consumer buying behaviour Consumer Market
The buying behaviour of final consumers- All the individuals and households
individuals and households who buy goods who buy or acquire goods and
and services for personal consumption. services for personal consumption.
The consumer decision making process
Problem Recognition
The consumer recognizes that they
have a problem or a need for a
product or service.
Information search
The consumer gathers
information on the variety of
products, which can satisfy their
recognized need.
Evaluation and selection

The consumer evaluates which
product is most suitable and
then purchases that product.
Problem recognition
The consumer will experience
either satisfaction or
dissatisfaction with the
product or service. This will
affect their decision making
process for future products or
– NOV. 04 .
Version 1 LRDUservices 19
Need Recognition
This is the first phase in the buyer decision making process. This need can be triggered by
internal and external stimuli. Need recognition can be triggered by advertising.
Information search
If a customer is aroused, he may or not seek more information. This is the stage, at which the
buyer’s decision process is aroused to search for more information. The consumer can obtain
information from several sources:
• Personal sources(family, friends, neighbours, acquaintances)

• Commercial sources: advertising, salespeople, dealers, packaging, displays
• Public sources: mass media, consumer rating organizations
• Experiential sources: handling, examining, using the product
Refer to: Kotler, P. (1996). Principles of Marketin,g . p.163, Prentice Hall, Inc,
Cincinnati, Ohio, U.S.A.
The marketing company should integrate the voice of the customer to improve product quality
and design. This function is referred to as quality function deployment (qfd).
Feedback can be sought from the customer through verifiable customer feedback sources. Some
of these include:
• Customer satisfaction questionnaires

• Audit documentation and reports
• Quality assurance data
• Returned goods
• Lapsed clients
• Service calls
• Complaints
• Repeat customers
CHECKPOINT
What is quality function deployment is?

The importance of customer value
Great companies strive to ensure that they both delight and wow their customers. Superior
customer value means continually creating business experiences that exceed customer
expectations.
ACTIVITY
A very dissatisfied customer called to complain about a product or

service. Write a report on the complaint and state how you would
deal with it. Discuss with your facilitator.
A value-driven marketing strategy helps organizations in ten areas:
• Understanding customer choices

• Identifying customer segments
• Increasing competitive options
• Avoiding price wars
• Improving service quality
• Strengthening communications
• Focusing on what is meaningful to customers
• Building customer loyalty
• Improving brand success and
• Developing strong customer relationships.
Refer to: Weinstein, A.& Johnson, W. (1999) Designing and Delivering Superior
Customer Value p.4. . Prentice Hall, Inc, Cincinnati, Ohio, U.S.A.
ACTIVITY
How does quality function deployment bridge customer

requirements with product or service features?

Checklist 1 Yes No
1. I know how to make recommendations on products and services

based on organizational requirements ( ) ( )
2. I can ensure that recommendations emphasize product

and service issues relevant to client needs ( ) ( )
3. I know how to ensure that evidence in support of recommendations

is verifiable and presented in a suitable format ( ) ( )
4. I know how to structure recommendations to identify clear

benefits to clients and the organization ( ) ( )
Checklist 2 Yes No
1. Recommendations made on products and services based on

organizational requirements ( ) ( )
2. Recommendations emphasize product and service issues

relevant to client needs ( ) ( )
3. Evidence in support of recommendation is verifiable and

presented in a suitable format ( ) ( )
4. Recommendations are structured to identify clear benefits to

clients and the organization ( ) ( )

ELEMENT 3: ADVISE ON PROMOTIONAL ACTIVITIES
LEARNING OUTCOMES
advise on promotional activities. Your learning facilitator is there to assist you through the
various activities. Upon completion you should be able to:
1. Provide clear advice supported by verifiable evidence that is compatible with

organizational requirements.
2. Use appropriate documentation and materials for promotional purposes.
3. Conform promotional activities to budget resources
4. Estimate impact of promotional activities from verifiable customer feedback sources
5. Evaluate benefits of promotional activities and incorporate in plans for future
promotional activities
PROVIDE CLEAR ADVICE SUPPORTED BY VERIFIABLE EVIDENCE THAT IS

COMPATIBLE WITH ORGANIZATIONAL REQUIREMENTS
Why promote products and services?
The main purpose of promotion is to communicate to potential customers information about a

product or service, in an effort to encourage them to purchase that product or service. The
reasons for promotion may relate to one or a combination of the following:
• Special price on the product has been negotiated with the supplier
• Poor selling product/service-promotion may increase sales/demand
• More staff in service area, therefore higher productivity
• There are new products or services
• To match (stay with) competitors’ offers
• A result of customer request
• Seasonal trends and demands
Tradition of the organization example Courts Madness Sale
Retrieve from
http://hsc.csu.edu.au/hospitality/operations/strand_a/promote/promote_products/THHGCS on
September 22, 2004
The role of promotion in the marketing mix
Goods and services will survive in the market place with effective promotion. Only a few
products might survive without effective promotion.

Promotional strategy
A plan for the optimal use of the elements of promotion

:advertising, public relations, personal selling and sales promotion.
Promotion
Communication by marketer that informs, persuades and reminds
potential buyers of a product in order to influence an opinion or
elicit a response.
Public Relations
The marketing function that evaluates public attitudes,

identifies areas within the organization the public may be
interested in, and executes a programme of action to earn public
understanding and acceptance.
Advertising
Impersonal, one way mass communication about a product or
organization that is paid for by a marketer.
Refer to: Lamb, Hair and McDaniel, (2004). Marketing , Southwestern Publishing
House, Cincinnati, Ohio, U. S. A.
As a Supervisor, you should provide clear advice supported by verifiable evidence. This should
be compatible with organizational requirements. The advice given on promotional activities will
include a multiplicity of factors and information from a variety of sources. Some of the
information may include:
• Competitive features of products or services

• Product trends
• Sales trends
• Problems with products or services
• Innovations
• Cost and production
• Distribution processes
• Sales records (monthly forecasts, targets achieved)

CHECKPOINT
List some of the possible information that you would need to

consider when promoting products and service.
USE APPROPRIATE DOCUMENTATION AND MATERIALS FOR PROMOTIONAL

PURPOSES
It is important for you to have the appropriate documentation for promotional purposes. The
message must be tailor made to suit the target audiences. The medium to carry the message must
be appropriate and the visuals must be appealing and exciting to the prospective client. Some
important information to be considered includes:
• Market share data

• Sales figures
• Organizational Product knowledge
• Customer delivery
• Faults
• Production down-time
The Marketing Manager should:
1. Identify the target audience

2. Determine the communication objectives
3. Design the message
4. Select the communication channels
5. Establish the total communications budget
6. Decide on the communications mix
7. Measure the communications’ results
8. Manage the integrated management communication process
Refer to: Kotler, Philip, (2000). Marketing Management, Prentice Hall Inc.,
Cincinnati, Ohio, U. S. A.
Identifying the target audience
The target audience is critical to the development of promotional strategies. The first step is to
identify the audience. Identifying the audience will help us to say what we want to say , how we
want to say it , when to say it where to say it and to whom to say it.

Image analysis
This process includes assessing the image of the company.
Determine the communication objectives
The desired audience response should be worked out . These objectives will be determined based
on the identification of the audience perception sand familiarity with the product.
Promotional activities may take a variety of forms. Some of these include:
• Media announcements
• Employee functions
• Client functions
• Product launches
• Advertisements
• Web pages
CONFORM PROMOTIONAL ACTIVITIES TO BUDGET RESOURCES
Promotional activities must fit into the budget. It is foolhardy to have some very expensive
promotions that will put the organization over budget. The Return on Investment (ROI) should
be considered when deciding on the different promotional tools that will be used to promote the
event and what value the company will receive.
How to decide on an advertising budget?
There are five specific factors to consider when setting the advertising budget
Stages in the product life cycle: New products typically receive large advertising budgets to
build awareness and to gain consumer trial. Established brands usually are supported with lower
advertising budgets as a ratio to sales.
Market share and consumer base: High market-share brands usually require less advertising
expenditure as a percentage of sales to maintain their share. To build share by increasing market
size requires larger advertising expenditures. On a cost-per-impression basis, it is less expensive
to reach consumers of a widely used brand than to reach consumers of low share brands.
Importance of using a zero budget
Most companies tend to use incremental approaches when they are allocating money for
promotional budgets. There are other companies that base their decisions on sales. It is usually
recommended that the objective and task approach be used. You should start with a zero budget
and compel promotional managers to justify their investment.

Competition and clutter: In a market with a large number of competitors and high advertising
spending, a brand must advertise more heavily to be heard. Even simple clutter from
advertisements not directly competitive to the brand creates the need for heavier advertising.
Advertising frequency: The number of repetitions needed to put across the brand’s message to
consumers has an important impact on the advertising budget.
Product substitutability: Brands in a commodity class require heavy advertising to establish a

differential image. Advertising is also important when a brand can offer unique physical benefits
or features.
ESTIMATE IMPACT OF PROMOTIONAL ACTIVITIES FROM VERIFIABLE CUSTOMER

FEEDBACK SOURCES
This information can be gleaned from customer perception surveys. This could be done at a
product launch or after a launch where questionnaires are mailed to the customer. Feedback
could also be sought through emails and telephone surveys.
Repeat customers
A database of return customers and the product they purchase could be created. Relationship
marketing is very important in retaining your customers.
Designing a customer retention Programme
You may follow these steps in order to develop an effective customer feedback sources.
• Determine your current customer retention rate. You need to choose an appropriate
measure and provide a starting point for assessing the firms success.
• Analyze the defection problem. You need to find out why these customers left.
• Establish a new Customer Retention objective. This objective should be based on
organizational capabilities, customer and competitive analyses and benchmarking
with the industry or sector.
• Invest in a targeted CR plan to enhance customer loyalty.
• Evaluate the success of the CR Programme
Refer to: Weinstein and Johnson, (1999). Designing and Delivering Superior
Customer Value, St. Lucie Press, U.S.A.

ACTIVITY
List some customer feedback strategies and tactics that your

organization uses. What are some additional CR approaches that
they would think about using? Discuss with your learning
facilitator and peers.

Checklist 1 Yes No
1. I know how to provide clear advice supported by verifiable

evidence that is compatible with organizational requirements ( ) ( )
2. I know how to use appropriate documentation and materials

for promotional purposes ( ) ( )
3. I know how to conform promotional activities to budget resources ( ) ( )
4. I know how to estimate impact of promotional activities from

verifiable customer feedback sources ( ) ( )
5. I can evaluate benefits of promotional activities and incorporate

in plans for future activities ( ) ( )
Checklist 2 Yes No
1. Advice provided is clear and supported by verifiable evidence

and is compatible with organizational requirements ( ) ( )
2. Promotional documentation and materials are appropriate

presentation of the organizations products and services ( ) ( )
3. Cost of promotional activities conform to budget resources ( ) ( )
4. Impact of promotional activities is estimated from verifiable

customer feedback ( ) ( )
5. Benefits of promotional activities evaluated and incorporated

into plans ( ) ( )

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LG-BSBBAD0412A PROMOTE PRODUCTS AND SERVICES

HEART TRUST/NATIONAL TRAINING AGENCY

Learning Management Services Department

*** 2004 ***

Version 1 LRDU – NOV. 04

Element 1: Develop and Maintain Knowledge of Products and Services ....................... 8

Self Assessment Checklist ................................................................................................ 17

Element 2: Recommend Products and Services .............................................................. 18

Self Assessment Checklist ................................................................................................ 22

Element 3: Advise on Promotional Activities .................................................................. 23

Self Assessment Checklist ................................................................................................ 29

Version 1 LRDU – NOV. 04

This Competency Unit

Element 1: Develop and maintain knowledge of products and services

Element 2: Recommend products and services

Element 3: Advise on promotional activities

Version 1 LRDU – NOV. 04 1

Before you start

Before you start this Learner Guide, you need to:

c. Ensure that your learning resources are available.

e. Plan your learning programme (see below).

f. Understand how to use this Learner Guide (see below).

Planning your learning programme

Version 1 LRDU – NOV. 04 2

Element 1 Develop and Maintain Knowledge of Products

1. I can actively research a comprehensive knowledge and

2. I can identify and understand characteristics of products

3. I can document and maintain information on products and

4. I can apply acquired knowledge to improve quality within

Element 2 Recommend Products and Services Yes No

1. I can ensure that recommendations on products and services

2. I can ensure that recommendations emphasize product and

3. I can ensure that evidence in support of recommendations are

4. I can structure recommendations to identify clear benefits

Version 1 LRDU – NOV. 04 3

Element 3 Advise on Promotional Activities Yes No

1. I can provide advice that is clear and supported by

2. I can ensure promotional documents and materials are

3. I can ensure that costs of promotional activities conform

4. I can estimate impact of promotional activities from

5. I can evaluate and incorporate benefits of promotional

How did you do?

Version 1 LRDU – NOV. 04 4

How to use this Learner Guide

We suggest that you:

• Go through the sections/elements as they are presented (starting at Section 1)

Complete Assessment Exercise

Version 1 LRDU – NOV. 04 5

• Complete the self-assessment checklist at the end of each section or element.

Using the Computer and Other Resources

Version 1 LRDU – NOV. 04 6

Version 1 LRDU – NOV. 04 7

ELEMENT 1: DEVELOP AND MAINTAIN KNOWLEDGE OF

1. Research products and services from authoritative sources

A social and managerial process by which individuals and groups

Anything that can be offered to a market for attention, acquisition, use

RESEARCH PRODUCTS AND SERVICES FROM AUTHORITATIVE SOURCES

Version 1 LRDU – NOV. 04 8

* 2004 *