Promoting the

Small Business
By: Kim Ripalda
John Viru Sevilla
Table of contents
01
Promotion
Is any communication that
attempts to influence people
to buy products or services.
02
Advertising
Any paid form of nonpersonal
presentation of ideas, goods,
and services by an identified
sponsor.
03
Personal Selling
A very important
complement of the other
method promotion.

04 05 06
Publicity Sales Promotion Word-of-Mouth
One of the promotional Enhances and Regarded as a very
methods which can be tapped supplements the other powerful tool of
by the cash-strapped small
forms of promotion. promotion.
businessman.
01
Promotion
What is Promotion?

It is not surprising for someone to find out that

promotion is an activity undertaken by successful
companies.
Promotion Defined

● Promotion may be defined as activities,

including advertising, personal selling, sales
promotions, public relations, and direct
marketing, used by SBOs to persuade
prospective customers to buy the company’s
products or services.
Promotion and
Customer Demand
● Promotion and customer demand are related in
some ways. These are instances when
promotion increases the total customer
demand for the firm’s products or services.
Types of Customer
Demand
● To understand the value of promotion, it is
important for the SBO to know the types of
customer demand. They are the following:

 Established demand, and

 Newly created demand (also referred to as
promoted demand).
Types of Customer
Demand
Established Demand Newly Created Demand

● Positive experience with • This also sometimes

the firm’s products; referred to as “promoted
● The convenience location demand”.
of the firm; and
● The appearance of the
firms
Methods of
promotion
● Advertising
● Personal Selling
● Publicity
● Sales Promotion
● Word of Mouth
 02
Advertising
Advertising

● Advertising is any paid form of nonpersonal

presentation of ideas, goods, and services by
an identified sponsor.
Types of
Advertising

• Retail Advertising
• Service Advertising
• Trade Advertising
• Industrial Advertising
• Institutional Advertising
Types of Advertising
1. Retail Advertising – those made by various retail stores such as
grocery stores and bakeries to attract customers.
2. Service Advertising – those made by various service establishments
such as transportation, recreation, and insurance.
3. Trade Advertising – those made by manufacturers to motivate
wholesalers and retailers to carry their products.
4. Industrial Advertising – those made by manufacturers to motivate
other manufacturers to use their products and services
5. Institutional Advertising - those designed to create a favourable
image for a firm.
Types of Advertising Media
• Television
• Radio
• Newspaper
• Magazines
• Outdoor billboards
• Specialty advertising
• Cinema (movie houses)
• Other means such as catalogs, samples,
handouts, and the like
 03
Personal Selling
Personal Selling

● Personal selling is that method of promotion

that is direct, personal and often a face-to-face
interchange between the company’s
salesperson an the customer.
● Personal selling is a very important
complement of the other method promotion.
Types of
Salesperson

• The types of salespersons are the

following:

 Order getters;
 Order takers; and
 Support personnel
Order Getter

● The task of the order getter is to increase the

firm’s sales by selling to new customers and
by increasing sales to present customers. Order
getters may be classified as follows:

 Current customer salesperson

 New business salesperson
Order Taker

● The responsibility of the order taker is to seek

repeat sales from current customers by making
sure that product quantities are there where
and when they are needed. Order takers are
classified as follows:

 Inside order taker

 Field order taker
Support Personnel

● The job of the support personnel is to facilitate

the selling function. Their function includes
locating prospects, educating customers,
building goodwill, and providing service after
sale. Support personnel may be classified as
follows:

 Missionary salesperson
 Trade salesperson
 Technical salesperson
The Selling Process
• Prospecting and qualifying
• Pre-approach
• Approach
• Presentation and demonstration
• Handling objections
• Closing
• Folowing-up
04
Publicity
Publicity

● Publicity is a method of promotion where

news is generated about the firm or its product
or services and appearing in print, broadcast,
or electronic media and not paid for by the
firm.
Publicity

• Publicity is one of the promotional methods which can

be tapped by the cash-strapped small businessman.
The only requirement is a prepared publicity release
describing any of the following:

 The existence of the firm and the products or services

offered;
 The unique characteristics of the new products or
services of the firm
 The firm’s unique method of doing business
Types of Publicity

Business feature Service feature

New publicity articles articles
Finance release

Those that deal These refer to These refer to lighter These are stories that
stories focusing on are targeted to
with events of detailed stories
personal care, household
national, regional, about the firm or its appear in the
items, and recipes which
offerings, most find their way in the business sections of
or local interest. newspapers and
often appearing in pages of newspapers and
business magazines. magazines. magazines.
● Spontaneous
Types of Publicity

Background Emergency
Product releases Pictorial releases
editorial releases publicity
These refer to new These refer to These refer to extra This refers to special
products and product illustrations or information (such as media releases
improvements and pictures distributed biography of the regarding disasters
aimed at all forms of to media. firm’s general or serious problems
media for publicity. manager) given to like 2009 swine flu
media writers and threat.
editors.
 05
Sales Promotion
Sales Promotion

● Is a method of promotion other than

advertising, personal selling, and publicity that
increase sale through temporary sale
incentives.
Major tools of
Sales Promotion
• point-of-purchase display;
• premium;
• trading stamps;
• sampling and demonstrations;
• retailer coupons;
• consumer contests and sweepstakes;
• rebates; and
• trade show.
Major tools of Sales
Promotion
Point-of-Purchase Display – these are items used by the sellers to attract
attention, inform, and persuade prospective customers to buy.
Premium – a special incentive in the form of a gift that is made available
to customers who buy certain products of the firm.
Trading Stamps – sales promotion tools in which customers are given in
relation to the amount of their purchase.
Sampling – to the process by which manufacturers give away free
samples to introduce a new product.
Product Demonstration – customers are given the opportunity to
observe the product benefits and performance before purchasing.
Major tools of Sales
Promotion
Retail Coupons – device that motivates consumers to buy from the retailer.
– coupon entitles the buyer to a discount (or a free item).
Consumer Contests – customers compete for prizes by completing a contest.
Sweepstakes – require the participants to submit some kind of entry form but
are purely games of chance requiring no analytical or creative effort by the
consumer.
Rebates – offers that return of money based on proof of purchase.
Trade Show – these are temporary exhibitions of products and services.
 06
Word-of-Mouth
Word-of -Mouth

● A method of promotion wherein people are

encouraged to tell other people products or
services they have enjoyed.
Positive
Word-of-Mouth
• competent employees;
• proper treatment of people;
• not overcharging;
• not using false claims in advertising;
• keeping promises to customers;
• having a good product or service; and
• keeping customers happy.
 Thanks
Do you have any questions?

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