Tools for Promoting and Advertising
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1 Tools for Promoting and Advertising DeeVon Bailey, Professor Utah State University and Wendy Umberger, Assistant Professor Colorado State University The Source of most of the information presented here is Sell What You Sow! By Eric Gibson, New World Publishing: Placerville, CA.
2 What is Marketing? Marketing involves: creating or refining the form, time, place and possession of commodity into a product and increasing its value to the consumer Bringing buyers and sellers together Establishing prices Making products more desirable Moving products
3 Marketing, Promotion and Advertising Promotion is one of the 4 P s of the market plan Product, Price, Place and Promotion The market plan provides direction for the marketing activity The market plan outlines the activities value-added businesses plan on using to connect with targeted customers and are used to promote products and services most effectively and efficiently Promotion and advertising are effective only when the first 3 P s have been considered.
4 4 P s of Marketing: The Order Matters 1. Product 2. Price 3. Place 4. Promotions Advertising Sales Incentives Personal Selling Public Relations & Publicity
5 The 4 P s of Marketing: Step 1. Product Defining the Product Product = A good which satisfies the needs of a consumer Product with characteristics which satisfy needs of a target market Physical Features Design and Packaging Branding and Image/Personality Customer Service Consistent Quality and Supply Pricing Costs/Required Margins or Returns
6 Step 2: Pricing Price should be dependent on the following: Costs, Required Margins and/or Returns You will not be in business long if you re not at least covering your costs Physical Features Design and Packaging Branding and Image/Personality Customer Service Consistent Quality and Supply
7 Step 3: Place Place is the location where customers purchase your product Product must be in the right Place at the Right time Figuring the right place and time can be difficult. Distribution methods Types of channels Service level
8 Step 4: Promotion Promotion Purpose of promotion is to influence the attitudes and buying behaviors of customers (target market) Promotion is only effective if you have a product consumers want That consumers can reach your product, right place, right time That consumers can afford your porduct You must consider the following when developing promotion and advertising strategies: Budget Media Objectives of promotional strategy Message you want to convey
9 Why Do Products Need to Be Promoted? A producer may have an idea for a product and may even already have the product produced, but this doesn t mean that consumers will be willing to buy the product.
10 Marketing vs. Selling A Selling Approach A Marketing Approach Objective Sell product Meet consumer needs Assumptions All consumers are alike Consumers purchase products and services to meet needs and solve problems Overall Marketing Strategy Heavy advertising; do what we ve always done Develop the appropriate marketing mix; communicate benefits to target market(s) Market Research Huh? Heavy use of secondary research; talk to customers Product Strategies Place Strategies Price Strategies Promotion Strategies Product and package products in ways we find convenient Do what others are doing Follow formulas (e.g., cost plus) Create product lines to meet consumer wants Create channels of distribution that add utility (value) Relate price to market and consumer expectations; emphasize value Results Slick brochures; clever ads Communicates value and benefits Solo purchases Repeat business Source: James R. Stone III, University of Minnesota
11 Promote Your Identity Promotion and advertising can cause some prospective consumers to try your product once Must meet or exceed expectation if you wish them to be repeat customers The quality of our goods and services is what will bring customers back
12 Important Questions Are the facilities neat and clean? Are the displays neat, full and convenient? Are the products top quality, fresh, clean, and graded? Are employees appropriately dressed? Are salespeople courteous, friendly and helpful to customers? Are management and staff looking for ways to improve the market and benefit customers?
13 Business Name The name of the business conveys its unique identity Customers relate to individuals better than to objects Tom s Fish Farm
14 Promotion Plan Objectives what do you what the promotion to accomplish? Message what is the message you wish to convey to potential customers? Audiences whom do you wish to hear the message? Strategies How will you get the message across? Budget How much will the project cost?
15 Public Relations Word-of-mouth Best and most economical form of promotion Community involvement Involvement in the community builds one s reputation Keeps your name in the public s eye Goodwill Involvement with charity efforts Etc.
16 Publicity Editorial coverage is more valuable than paid coverage News releases Local news columns or radio/tv advice spots Giving speeches Teaching classes
17 Advertising Find the most comprehensive, cost effective medium to deliver your message Audience profile Quiz customers about where they get information Need to be able to repeat an add (at least three times) Do only what you can afford to do well Start slowly when allocating advertising dollars to a new medium Basic message should be to tell customers how they can benefit from purchasing the product What makes you unique What products and services do you offer that are different than competitors
18 Evaluating Advertising Know how much you are spending on advertising and keep track of what works Experiment, monitor and adjust
19 Road Signs Road signs identify and direct customers to your place of business Advance signs (2-10 miles from your business) Other signs closer to the business with the best sign at the market location Make certain the sign is legible and that the message is short Road signs are often the first impression customers receive about the business Use of signs is restricted by federal laws, state, and local statutes Contact local authorities about restrictions
20 Newspapers Advantages Reaches a large number of people Relatively inexpensive for the number of people reached Can use coupons to track response Easily and quickly changed Can be clipped and saved by interested parties Disadvantages Non selective Many don t read all of the paper Frequency and color add to the expense No reader involvement
21 Radio Advantages Usually local Frequency of message Can be tied to a specific program or time of day Can be purchased or cancel on relatively short notice Emotional power of music and sound Alive, friendly, conducive to warm, conversational messages Disadvantages Relatively expensive Need for brevity and repetition Difficult to measure response Often fails to get listeners full attention Must be repeated frequently because of the short exposure time
22 Television Advantages Combination of sight, motion and sound is the closest to personal sell Potentially large audience Disadvantages Expensive air time and costs Nonselective audience Long preparation time
23 Brochures Advantages Can be delivered to a selective audience Allows longer copy length Permanence of print customers can keep them Disadvantages Expensive if trying to reach a large audience
24 Flyers Advantages Inexpensive Selective Quick to get out Disadvantages Limited message
25 Direct Mail Advantages Personalized approach Can reach a specific audience Lengthy copy can be presented Often costs less per customer than other methods Disadvantages Worthless if list is not carefully select May be treated as junk mail
26 Outdoor Advertising Advantages High exposure over a long period of time Geographically selective Disadvantages Limited amount of information can be presented Difficult to purchase, change or cancel on short notice Billboards are governed by local ordinances Large investment to cover entire market area Audience may resent intrusion on landscape if poorly done
27 Other Media Printed bags Trade publications Business cards Fairs, exhibits, display booths Buyers and consumers guides Coupons
28 Final Comments on Advertising and Promoting Your Product Advertising and promotion do not have to be expensive, sometimes word-of-mouth from current customers works best Your promotional strategy conveys the image of the product, be sure to consider what image you want to convey when developing your strategy The order of the marketing mix matters, you must have a product consumers want, can afford and can reach.
Non-personal communication
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