SALES PROMOTIONS:Publicity and Public Relations, Promotional Practices in Small Business

<< PERSONAL SELLING:Personal Selling Situations, The Personal Selling Process

THE PRODUCTIVITY:Responding to the Productivity Challenge, Domestic Productivity >>

Introduction to Business MGT 211

Lesson 34

SALES PROMOTIONS

Sales Promotion -- short-term promotional activity designed to stimulate consumer buying or

cooperation from distributors and sales agents.

Sales promotion covers a wide variety of activities from arranging plant tours and trade show

exhibits to distributing free samples and publishing promotional booklets. Sales promotion may

be divided into two basic categories:

Consumer promotion, aimed at the final consumer, and trade promotion, aimed at

wholesalers and retailers.

Types of Sales Promotions

Coupons aim to spur sales by offering a discount through redeemable

coupons. It is the biggest category of consumer promotion. Rebates are

similar to coupons, except that customers have to mail in proof of

purchase with a prepared manufacturer's rebate form.

ii.

Point-of-purchase displays are devices used to show a product in a

way that stimulates immediate sales. It may be an end-of-aisle display in

a supermarket or the computerized kitchen design systems for cabinets

in building-supply stores.

iii.

Purchasing Incentives (Free samples and Premiums) --free samples

and premiums that allow customers to try products without risk.

iv.

Trade Shows--Companies rent booths to display and demonstrate

products to customers who have a special interest or are ready to buy.

These shows are inexpensive and quite effective.

Contests--Customers, distributors, and sales reps may all be

persuaded to increase sales by means of contests.

vi.

Special-event sponsorship has become one of the most popular types

of sales promotion.

vii.

Cross-promotion uses one brand to promote another non-competing

brand, as in McDonald's bundling with Beanie Babies and Intel inside

with computer cases.

Publicity and Public Relations

Publicity --- a promotional tool in which information about a company or product is transmitted

by general mass media. Publicity is free, but you have little or no control of the content and

delivery. Be aware, there is both good and bad publicity.

Public Relations -- company-influenced publicity directed at building goodwill between an

organization and potential customers. Smart companies know they need to maintain positive

relations with their communities, investors, industry analysts, government agencies, and the

news media.

Companies seek favorable publicity to create interest in their products. Companies with a good

public image are more attractive to investors. Press relations refer to the process of

communicating with reporters and editors from newspapers, magazines, and radio and

television networks and stations.

130

Introduction to Business MGT 211

News releases are brief statements or video programs released to the press announcing new

products, management changes, sales performance, and other potential news items; also called

a press release. News conferences are gatherings of media representatives at which companies

announce new information; also called a press briefing.

Promotional Practices in Small Business

1. Small Business Advertising

Methods available for small-business advertising depend on the market that the firm is trying

to reach: local, national, or international. The Internet has provided advertising opportunities.

Local advertising (non-prime-time slots on local TV or cable shows) offers great impact at

affordable cost. Targeted direct mail can help a small firm reach a national audience. For

international advertising, most small firms find direct mail and carefully targeted magazine

advertising most effective.

The Role of Personal Selling in Small Business

The personal selling strategies used by small businesses depend on their intended markets.

Many firms combine telemarketing with catalogs and other product literature.

Small Business Promotions -- Small companies use the same sales promotion incentives as

larger companies.

International Promotional Strategies

Worldwide advertising is a large part of many companies' promotional expenditures.

Emergence of the Global Perspective

Global Perspective-company's approach to directing its marketing toward worldwide rather

than local regional markets.

Movement toward Global Advertising

The truly global perspective means designing products for multinational

appeal. Four factors make global advertising a challenging proposition:

product variations, language differences, cultural receptiveness, and

image differences.

Universal Messages and Regional Advertising Skills

In recognizing national differences, many global marketers try to build on a universal

advertising theme that nevertheless allows for variations.

131

Table of Contents: