The Promotion

Strategy

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Chapter 12 The Promotion Strategy
The Promotion
Strategy

12.1 Developing a Promotion Strategy

12.2 Budgeting and Implementing

Promotional Plans

2
 The Promotion Strategy

12.1

Explain the role of the promotion strategy.

Explain how to formulate promotion plans.
Describe considerations for putting together a
promotional mix.
Describe the elements of a promotional mix.

Section 12.1 Developing a Promotion Strategy 3

 The Promotion Strategy

12.1

The promotion strategy is the most visible

marketing strategy.

It is designed to get the attention of prospective

customers and convince them to buy from your
business.

Section 12.1 Developing a Promotion Strategy 4

 The Promotion Strategy

12.1

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

Section 12.1 Developing a Promotion Strategy 5

 The Promotion Strategy

Drawing Up
Promotional Plans
As a new business owner, you need two kinds of
promotional plans:

a preopening plan to lay the groundwork

an ongoing plan to support your operation once it
is under way

Section 12.1 Developing a Promotion Strategy 6

 The Promotion Strategy

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.

Section 12.1 Developing a Promotion Strategy 7

 Preopening Plan
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 products.

Section 12.1 Developing a Promotion Strategy 8

 The Promotion Strategy

Preopening Plan

The image you establish image the impression

in your preopening plan people have of a
company; a company’s
sets the tone for your personality
promotional plan.

Section 12.1 Developing a Promotion Strategy 9

 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.

Section 12.1 Developing a Promotion Strategy 10

 The Promotion Strategy

Ongoing Plan

An ongoing promotional preselling the act of

plan helps in preselling influencing potential
customers to buy before
your goods or services. contact is actually made

Section 12.1 Developing a Promotion Strategy 11

 The Promotion Strategy

Promotional Plan Format

Both a preopening and an campaign a series of

ongoing plan can be related promotional
activities with a similar
organized around a theme
promotional campaign,
independent promotional
activities, or a combination
of the two.

Section 12.1 Developing a Promotion Strategy 12

 The Promotion Strategy

Selecting a
Promotional Mix
Every business has a promotional mix the
unique promotional mix. combination of different
promotional elements
that a company uses to
reach and influence
potential customers

Section 12.1 Developing a Promotion Strategy 13

 Ongoing Plan
When selecting elements for a promotional
mix, consider:

target market

product value

promotional channels

time frame

cost
Section 12.1 Developing a Promotion Strategy 14
 The Elements of the Promotional Mix

personal advertising
selling

Promotional
Mix
sales
promotion publicity

Section 12.1 Developing a Promotion Strategy 15

 The Promotion Strategy

Advertising

In the United States, most advertising the paid

businesses spend about nonpersonal presentation
of ideas, goods, or
one-fourth of their services directed at a
advertising dollars on mass audience by an
newspaper ads. identified sponsor by
means of print and
broadcast

Section 12.1 Developing a Promotion Strategy 16

 Advertising
newspapers magazines

specialty
items direct mail

Types of outdoor
Internet Advertising advertising

radio directories

transit
television advertising

Section 12.1 Developing a Promotion Strategy 17

 The Promotion Strategy

Advertising

A specialty item serves as specialty item an

a reminder of a business. advertising device that
includes giveaways, such
as pens, T-shirts, and
caps, printed with a
business name or logo

Section 12.1 Developing a Promotion Strategy 18

 The Promotion Strategy

Publicity

Taking advantage of publicity placement in

publicity means calling the media of newsworthy
items about a company,
attention to yourself and product, or person
your business.

Section 12.1 Developing a Promotion Strategy 19

 The Promotion Strategy

Publicity

A news release should news release a brief

answer these questions: newsworthy story that is
sent to the media

?
Who? ?
What? ?
Where?

?
When? ?
Why?

Section 12.1 Developing a Promotion Strategy 20

 The Promotion Strategy

Publicity

Public relations may public relations

generate unsolicited activities designed to
create goodwill toward a
publicity when such business or control
activities are reported by damage done by negative
the media. publicity

Section 12.1 Developing a Promotion Strategy 21

 Sales Promotion

displays

sweepstakes
premiums
and contests Examples
of Sales
Promotion

samples rebates

Section 12.1 Developing a Promotion Strategy 22

 The Promotion Strategy

Sales Promotion

One type of sales premium any item of

promotion may be to value that a customer
receives in addition to
include a premium with a the good or service
purchase. purchased; designed to
attract new customers or
build loyalty among
existing customers, they
may include coupons
and gifts

Section 12.1 Developing a Promotion Strategy 23

 The Promotion Strategy

Sales Promotion

Some companies give a rebate a return of part

rebate on purchases. of the purchase price of
a product used as an
incentive for customers
to purchase the product

Section 12.1 Developing a Promotion Strategy 24

 The Promotion Strategy

Sales Promotion

A sweepstakes is a sales sweepstakes a simple

promotion that can draw game of chance used by
a business to get
attention to a business. customers interested in
what the company has
to offer

Section 12.1 Developing a Promotion Strategy 25

 The Promotion Strategy

12.1

1. 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.

Section 12.1 Developing a Promotion Strategy 26

 The Promotion Strategy

12.1

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

Section 12.1 Developing a Promotion Strategy 27

 The Promotion Strategy

12.1

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.  

Section 12.1 Developing a Promotion Strategy 28

 The Promotion Strategy

12.1

4. Describe the elements of a promotional mix.

The elements of the promotional mix are

advertising, sales promotion, publicity, and
personal selling.

Section 12.1 Developing a Promotion Strategy 29

 The Promotion Strategy

12.2

Describe how to determine promotional costs

for a start-up business.
Describe approaches to implementing your
promotion strategy.
Discuss options for short-term changes in your
promotion strategy.
Name considerations for updating the
promotion strategy.
Section 12.2 Budgeting and Implementing Promotional Plans 30
 The Promotion Strategy

12.2

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.

Section 12.2 Budgeting and Implementing Promotional Plans 31

 The Promotion Strategy

12.2

industry average advertising agency

cooperative advertising consumer pretest

Section 12.2 Budgeting and Implementing Promotional Plans 32

 The Promotion Strategy

Budgeting for Promotion

To plan the promotional budget for a new venture,

you must take these steps:

Cost out promotional activities.

Compare industry averages.
Make final adjustments.

Section 12.2 Budgeting and Implementing Promotional Plans 33

 The Promotion Strategy

Compare Industry
Averages
You can find out the industry average the
industry average for standard used to
compare costs among
promotional expenses from companies; usually
such sources as trade expressed as a
associations or the SBA. percentage

Section 12.2 Budgeting and Implementing Promotional Plans 34

Basic Media Formats

Include a headline, copy, illustrations,

Print
and a signature.

Include same elements as print, but

Radio
you may add music or sound effects.

Same elements apply, but it requires

Television
casting, set design, sound and filming.

Same components as print, but may

Internet
also have audio, video, and animation.
Section 12.2 Budgeting and Implementing Promotional Plans 35
 The Promotion Strategy

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.

Section 12.2 Budgeting and Implementing Promotional Plans 36

 The Promotion Strategy

Getting Help

You may be able to save cooperative advertising

on your promotional an arrangement in which
advertising costs are
budget by arranging for divided between two or
cooperative advertising. more parties

Section 12.2 Budgeting and Implementing Promotional Plans 37

 The Promotion Strategy

Getting Help

An advertising agency can advertising agency a

handle all phases of your company that acts as
intermediary between a
advertising, including writing business and the
the copy, creating the media to communicate
artwork, choosing the media, a message to the
target market
and producing the ad.

Section 12.2 Budgeting and Implementing Promotional Plans 38

 The Promotion Strategy

Making Possible
Promotion Changes
There are three most common adjustments to
the promotion strategy:

adjust your advertising

generate publicity
promote sales

Section 12.2 Budgeting and Implementing Promotional Plans 39

Adjust Your Advertising

market
overall
results source

Factors
for
budget Evaluation motive

media message

Section 12.2 Budgeting and Implementing Promotional Plans 40

 The Promotion Strategy

Adjust Your Advertising

One way to reduce the risk consumer pretest a

involved in an expensive procedure in which a
panel of consumers
advertising campaign is to evaluates an ad before
conduct a consumer its release
pretest.

Section 12.2 Budgeting and Implementing Promotional Plans 41

 The Promotion Strategy

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.

Section 12.2 Budgeting and Implementing Promotional Plans 42

 The Promotion Strategy

12.2

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.

Section 12.2 Budgeting and Implementing Promotional Plans 43

 The Promotion Strategy

12.2

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.

Section 12.2 Budgeting and Implementing Promotional Plans 44

 The Promotion Strategy

12.2

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.

Section 12.2 Budgeting and Implementing Promotional Plans 45

 The Promotion Strategy

12.2

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.

Section 12.2 Budgeting and Implementing Promotional Plans 46

 The Promotion Strategy

Web Site
Personalization
Today, the technology exists for companies to personalize
their Web Sites for each visitor.
 
Tailoring a Web page by using rules-based or inference-
based personalization and cookies increases customer
satisfaction and promotes sales.

Section 12.2 Budgeting and Implementing Promotional Plans 47

 The Promotion Strategy

Tech Terms
cookie
a file sent to a Web browser by a Web server that is used to record
and store information for later use
 
inference-based personalization
a data analysis tool that is used to suggest products that are similar to
the products a customer has viewed or purchased
 
personalization
the process of tailoring Web pages to individual users’ characteristics

Section 12.2 Budgeting and Implementing Promotional Plans 48

 The Promotion Strategy

Tech Terms
privacy policy
a statement on a Web site that explains how a company collects,
uses, protects, and shares customers’ personal information
 
rules-based personalization
a data analysis tool that is used to recommend products that go with
products a customer has viewed or purchased on a Web site

Section 12.2 Budgeting and Implementing Promotional Plans 49

End of

The Promotion
Strategy

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