Unique selling proposition (USP): a key customer benefit of a product or service that sets it apart from its competition Answers the critical question that every customer asks: "What's in it for me?" Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides • Focus on intangible or psychological benefits
Promotion: any form of persuasive communication designed to inform consumers about a product or service and to influence them to purchase goods or services Includes: Publicity Personal selling Advertising
Publicity: any commercial news covered by the media that boosts sales but for which the small business does not pay 1. Write an article of interest to customers 2. Sponsor an event to attract attention 3. Involve celebrities “on the cheap” 4. Offer to be interviewed on TV & radio stations 5. Publish a newsletter 6. Speak to local organizations
7. Sponsor a seminar 8. Write news releases and fax them to the media 9. Serve on community and industry boards and committees 10.Sponsor a community project or support a nonprofit organization 11.Promote a cause 12.Promote your company’s publicity
Personal selling: the personal contact between sales personnel and potential customers resulting from sales efforts Top sales people: 1. Are enthusiastic and alert to opportunities 2. Are experts in the products or services they sell and understand how their products and services can help their customers 3. Concentrate on select accounts with the greatest sales potential 4. Plan thoroughly 5. Use a direct approach with their customers.
6. Work from their customer’s perspective 7. Use past success stories and testimonial 8. Leave sales material with potential customers 9. See themselves as problem solvers, not just vendors 10.Measure success by customer satisfaction as well as by sales volume
To improve sales reps’ “closing averages”: • Hire the right people • Train sales reps • Develop a selling system Prepare; approach; interview; demonstrate, explain, and show; validate; negotiate; close Be empathetic Set multiple objectives • The primary objective • The minimum objective • The visionary objective Monitor sales efforts and results
Twelve tips for effective advertising: 1. Plan more than one ad at a time 2. Set long-run ad objectives and measure performance 3. Use ads, themes, and media that appeal to target customers 4. View advertising expenditures as investments, not expenses 5. Use advertising that is different from your competitors’ advertising 6. Choose the media vehicle that’s best for your business even if it’s not “number one”
7. Consider using some else as the spokesperson on your commercials 8. Focus ads on your company’s USP 9. Devise ways of measuring your ads’ effectiveness that don’t depend on just tow or three customers’ responses 10. Don’t simply drop an ad because nothing happens immediately 11. Emphasize the benefits that the product or service provides to the customer 12. Evaluate the cost of different media
Questions to ask when selecting advertising media: How large is my firm's trading area? Who are my customers and what are their characteristics? What budget limitations do I face? Which media do my competitors use?
Word-of-mouth advertising Make your business buzz-worthy Promote your company to “influencers” Make it easy for satisfied customers to spread the word Use e-mail and social media to encourage viral marketing and amplify your company’s word-of-mouth advertising Tap into the power of YouTube
Example: Internet advertising by 2016, U.S. companies are expected to spend $62 billion on online advertising. Banner Display Contextual Pay-per-click
Sponsorships and special events Don’t count on sponsorships for your entire advertising campaign Find an event that is appropriate for your company and its products and services Research the event and the organization hosting it before agreeing to become a sponsor Try to become a dominant sponsor of an event Clarify the costs and level of participation required up front Get involved
Television -ranks first in popularity of all media Offers distinct advantages: • Broad coverage • Ability to focus on a target audience • Visual advantage • Flexibility • Design assistance • Brief exposure • Clutter • Zapping and zipping (Zappers & Zippers) • Fragmented audiences • Costs
Guidelines for creative television ads Keep it simple Have one basic idea Make it unique Get viewers’ attention Involve the viewer Use emotion Consider production values Prove the benefit Identify your company well and often
Guidelines for effective radio copy: Mention the business often Stress benefits to the listener Use attention-grabbers Zero in on a particular audience Be simple and to the point Sell early and often Write for the ear Prepare your copy Triple space Use positive action words Put the listener in the picture Focus on getting a response Don’t stay with a loser
Media options: Word-of-mouth advertising Internet advertising E-mail advertising Social media Sponsorships and special events Television Radio Newspapers
Media options: Word-of-mouth advertising Internet advertising E-mail advertising Social media Sponsorships and special events Television Radio Newspapers Magazines
Media options: Word-of-mouth advertising Internet advertising E-mail advertising Social media Sponsorships and special events Television Radio Newspapers Magazines Specialty advertising
Specialty advertising- More than $20 billion is spent annually on promo gifts (USA) Advantages: • Reaching select audiences • Personalized nature • Versatility • They work Disadvantages: • Potential for waste • Cost
Media options: Word-of-mouth advertising Internet advertising E-mail advertising Social media Sponsorships and special events Television Radio Newspapers Magazines Specialty advertising Point-of-purchase ads
Media options: Word-of-mouth advertising Internet advertising E-mail advertising Social media Sponsorships and special events Television Radio Newspapers Magazines Specialty advertising Point-of-purchase ads Outdoor advertising
Using outdoor advertising Billboards should have: • Quick and clear product and company identification • Simple background • Large illustrations • Clear, legible fonts • Black and white designs • Simplicity • Illumination • Right-hand side of highway location New trends: • Internet-connected billboards • Billboards that send messages to cell phones
Media options: Word-of-mouth advertising Internet advertising E-mail advertising Social media Sponsorships and special events Television Radio Newspapers Magazines Specialty advertising Point-of-purchase ads Outdoor advertising Transit ads
Four methods: 1. What is affordable 2. Matching competitors’ advertising expenditures 3. Percentage of Sales • Past Sales • Forecasted Sales 4. Objective-and-Task
Three techniques: 1. Comparative advertising: manufacturer shares the cost of advertising with the retailer if the retailer features its products in its ads
2. Shared advertising: a group of similar businesses
forms a syndicate to produce generic ads and then dubs in local details
3. Stealth advertising: innovative ads that do not look
like traditional ads and may be located in unexpected places
Other ways to save Repeat ads that have been successful Use identical ads in different media Hire independent copywriters, graphic designers, photographers, and other media specialists Concentrate advertising when customers are most likely to buy