PROMOTING THE SMALL

BUSINESS
 WHAT IS PROMOTION?

- defined as activities, including advertising,

personal selling, sales promotions, public
relations, and direct marketing, used by
SBOs(secondary buyout) 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. There are instances when promotion increases the
total customer demand for the firm's products or services.
There are instances when promotion increases the total
customer demand for the firm's products or services .
TYPES OF CUSTOMER
DEMAND

ESTABLISH NEWLYCREAT
ED ED DEMAND
DEMAND
 ESTABLISHED DEMAND
refers to purchases made by people from
a certain firm as a result of any or all of
the following
CUSTOMER DEMAND RESULT SALE OUTCOME
EXPOSURE
Positive
Established Certain Level
contacts with
Demand of Sales
firm

Promotion Newly Created Certain Level of

Demand Sales

Positive
contacts with
firm Established plus
Higher Level of
Newly Created
Sales
PLUS Demand

Promotion
 NEWLY CREATED
DEMAND
When the firm engages in activities designed to
attract people to buy from the firm, the resulting
demand is called newly created demand.
- This is also sometimes referred to as "promoted
demand."
 METHODS OF PROMOTION

PERSONAL SALES
SELLING PROMOTIO
N

ADVERTISI PUBLICI
NG TY WORD OF
MOUTH
 ADVERTISING
is any paid form of non personal presentation
and promotion of ideas, goods, and services by
an identified sponsor.
 TYPES OF ADVERTISING

RETAIL SERVICE TRADE

ADVERTISIN ADVERTISIN ADVERTISIN
G G G

INSTITUITIO
INDUSTRIAL NAL
ADVERTISIG ADVERTISIN
G
 RETAIL ADVERTISING

is made by various retail stores

such as grocery stores and bakeries
to attract customers.
SERVICE ADVERTISING
is made by various service
establishments such as
transportation, recreation, and
insurance.
 TRADE ADVERTISING

is made by manufacturers to
motivate wholesalers and retailers
to carry their products.
 INDUSTRIAL
ADVERTISING
is made by manufacturers to
motivate other manufacturers to use
their products and services.
 INSTITUTIONAL
ADVERTISING
Is designed to create a favorable
image for a firm.
 TYPES OF ADVERTISING
MEDIA
MAGAZIN O R
O R D
E T D A
RADIO U B O
O LL
BI SPECIALTY
TELIVISIO
LOCAL ADVERTISIN
N
CABLE G
DIRECT
TV
MAIL
B LIC ATIO
PU ORT CINEMA
P OTHER
A NS N (MOVIE
TR YELLOW MEANS
HOUSE)
PAGES
 TELIVISION

is a medium that is expensive but it

has a wide area of coverage, mostly
nationwide. Local television networks
are now able to air local programs in
foreign countries where substantial
numbers of Filipinos are residing.
 RADIO
may be classified into two: (1) those that cover
the entire country like DZRH and (2) those that
cover a smaller area like DWII and DWNE in
Cabanatuan City and Nueva Ecija respectively.
Local radio stations, especially those outside of
Metro Manila, are appropriate for small business
located within their area of coverage
 NEWSPAPER
may be classified according to area
circulation (1) national, (2) re-gional,
and (3) provincial or local. Newspapers
of nationwide circulation are oftentimes
inappropriate for small business,
especially if its target customers are
situated in their respective local areas.
 OUTDOOR BILLBOARD

can be a little discriminating as

a form of advertising. It can be
placed where most of the target
customers pass by.
 MAGAZINES

are of nation wide circulation and are

mostly inappropriate for small business
advertising.
 SPECIALTY
ADVERTISING
more discriminating and a more direct way of
convincing prospective customers to buy. Once
a target customer is spotted near or at the firm's
premises, he or she is handed items with
advertising messages imprinted.
 PUBLIC
TRANSPORTATION
provide a more permanent and mobile
advertising for small business. It is less
expensive than television advertising.
Supermarkets use them for institutional
advertising. Movie houses in the provinces
usually advertise current film features in local
transportation like tricycles.
 YELLOW PAGE

provide the small business advertiser

with some advertising ex-posure. Its
coverage, however, is limited to
persons with telephones.
 DIRECT MAIL
is less expensive and most
discriminating. Its main drawback, how-
ever, is the difficulty of obtaining a
credible listing of potential customers.
Most advertising sent through the mail
end up in wastebaskets.
 LOCAL CABLE
TV
which has come of age as an advertising
medium has a captive audience. If the
target customers of a small business are a
part of that audience, then advertising
through it may be practical.
 CINEMA
provide an alternative form of advertising. It is
less costly but the audience is limited to a
particular class of people. Moviehouses may be
useful as an advertising medium for certain
business like local restaurants and car parts
dealers.
 OTHER MEANS
Catalogs, samples, handouts, and
leaflets also form an alternative means
of advertising. However, it requires a
certain amount of time to prepare
them.
 PERSONAL SELLING

• is that method of promotion that is direct,

personal, and often a face-to-face interchange
between the company's salesperson and the
consumer.
• Many small businesses rely on personal selling
as a means of promoting their products and
services.
 TYPES OF SALESPERSON
CURRENT
ORDER CUSTOMER
GETTE
RS NEW
BUSINESS

FIELD
SALES ORDER ORDER
PERSONS TAKER
S INSIDE ORDER

MISSIONA
RY
SUPPORT
PERSONNE TRADE
L
TECHNIC
AL
 THE SELLING PROCESS

PRESENTATI
PROSPECTIN ON AND
G AND DEMONSTAR
QUALIFYIN TION HANDLING
G OBJECTION
S

PREAPPROA
CH

FOLLOW
CLOSING
UP
 PUBLICITY
• Is a method of promotion where news is generated
about the firm or its products or services.

The only requirements is a prepared publicity release

describing the following:

1. Existence of the firm and products or services offered

2. Unique characteristics of the new products or services
of the firm
3. Firms unique method of doing business
 TYPES OF PUBLICITY

NEWS PRODUCT
PUBLICITY REALESES
BUSINESS
PICTORIAL
FEATURES REALESES
ARTICLES
SERVICE BACKGROUND
FEATURE EDITORIAL
ARTICLES REALESES

FINANCE EMERGENCY
REALESES PUBLICITY
 NEWS PUBLICITY
• Deals with the events of national, regional or local interest.

Kinds of news publicity

SPONTANEOUS NEWS PUBLICITY

- One made as a result of a fire, union strike, lahar
onslaught, bank holdups and other major occurrences.

PLANNED NEWS PUBLICITY

- One based on news releases prepared and distributed by the
small business on a regular basis.
 BUSINESS FEATURE ARTICLE

• Refer to detailed stories about the

firm or its offerings, most often
appearing in business magazines.
 SERVICE FEATURE ARTICLES

• Refer to lighter stories

focusing on personal care,
household items, and recipes
which find way in the page of
newspapers and magazines.
 FINANCE REALESES

• Are stories that are

targeted to appear in the
business sections of
newspapers and
magazines.
 PRODUCT RELEASES

• Refer to new products and

product improvements and
aimed at all forms of
media for publicity.
 PICTORIAL RELEASES

•Refers to the
illustrations or pictures
distributed to media.
 BACKGROUND EDITORIAL RELEASES

• Refer to extra
information(such as the
biography of the firms general
manager)given to media
writers and editors
 EMERGENCY PUBLICITY

• Refers to special media

releases regarding disasters or
serious problem like the 2009
swine flu threat.
 SALES PROMOTION

• is a method of promotion other than

advertising, personal selling, and
publicity that increase sale through
temporary sales incentives. Sales
promotion enhances and supplements
the other forms of promotion.
The major tools of
sales promotion
are the following:
 POINT PURCHASE DISPLAY

• These are items used by sellers to attract

attention, inform, and persuade
prospective customers to buy. They
consist of items such as signs, window
banners, display racks, and self-service
containers.
 PREMIUM

• is a special incentive in the form of a gift that is

made available to customers who buy certain
products of the firm. An example is the free
small size bath soap attached to the box of a
large toothpaste.
 TRADING STAMPS

• are sales promotion tools in

which customers are given in
relation to the amount of their
purchase. These stamps can be
redeemed later for merchandise
or cash.
 SAMPLING

• refers to the process by which

manufacturers give away free samples to
introduce a new product. Customers are
given the opportunity to use the product
on a limited basis before purchasing.
 PRODUCT DEMONSTRATION

• In product demonstration,
customers are given the
opportunity to observe the
product benefits and performance
before purchasing.
 RETAILER COUPONS

• A coupon is a sales promotion device that

motivates consumers to buy from the
retailer. The coupon entitles the buyer to a
discount (or a free item). Coupons are
distributed in packages, mailings, print
ads, or at the store.
 CONSUMER CONTEST

• This is a type of sales promotion where

customers compete for prizes by
completing a contest such as supplying a
missing word in a phrase or sentence, or
describing a positive attribute of the product
or service.
 SWEEPSTAKE

• These are sales promotion tools which

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. Small
businesses can use this promotional tool
to attract attention from passers-by
 REBATES

• offers the return of money based on

proof of purchase. Rebates are very
useful promotional tools because the
benefits derived are direct and
immediate.
 TRADE SHOWS

• These are temporary exhibitions of

products and services. It is where direct
purchases are made. It is also in trade
shows where salespersons get leads on
potential
 WORD OF MOUTH

• is a method of promotion wherein

people are encouraged to tell other
people products or services they have
enjoyed.

• When people have positive people

experiences about a product or service,
they have a tendency to relate these to
other.