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Marketing Strategy


Types of Promotion

 

Promotion includes all activities designed to inform, persuade and influence people when they are making the decision to buy. Promotion is made up of:

Advertising

• non-personal communication transmitted through mass media

Publicity

• free promotion through news stories in newsletters, newspapers, magazines and television

Sales Promotion

• all forms of communication not found in advertising and personal selling, including direct mail, coupons, volume discounts, sampling, rebates, demonstrations, exhibits, sweepstakes, trade allowances, samples and point-ofpurchase displays In designing a promotional plan, clearly spell out:

• Which objectives to use. It is possible to have more than one objective, but it is recommended that a company target its audience or run the risk of losing focus.

• What to say

• Who to say it to

• Criteria used to measure success

Suggestions for Inexpensive Promotion

Some inexpensive, appropriate and effective methods of promotion for the new food processor include advertising through:

• Personal selling

• Product demonstrations

• Direct mail

• Business cards

• Yellow Page listing

• Seminars

• Newsletters

• Contests

• Flyers

• Statement stuffers

• Window banners

• Greeting cards

• Sports team sponsor

• Home parties

• Ethnic services—languages spoken

Of course, one of the best free methods of promotion is good “word of mouth."

Promotion Objectives

The promotion objectives need to be clearly stated and measurable. They must be compatible with the objectives of the company, as well as the competitive and marketing strategies. Objectives vary for different products and different situations. For example, producers must promote differently to brokers than to wholesalers. When promoting to a broker, the producer must promote what he/she wishes the broker to present to the wholesaler. When promoting to a wholesaler, the producer simply wants the wholesaler

to purchase the product. There are five general promotional objectives to choose from. The five types of objectives for promotional activities are1:

• to provide information

• to increase demand

• to differentiate the product

• to accentuate the value of the product

• to stabilize sales

Promotional Strategy

Once the producer has reviewed all the possible promotional tools, he/she must devise a promotional strategy. A

promotional strategy should address the following issues:

• What is the goal of the promotion?

• What types of promotion should be used?

• What effect should the promotion have on the customer?

• Which promotion is working?

• Which promotion is not working?

• What are the costs of the promotion compared to the benefits?