Performing cooperative business promotion 2010

Maichew ATVET College Pby Ataklti B. 2011 E.C 1
The Government of the National State of Tigray
Bureau of Technical and Vocational Education & Training
AGRICULTURE
Unit of Competence: perform basic cooperative business Promotion
Module Title: performing basic cooperative business Promotion
LG Code: AGR CPS2M 06 LO1-4
TTLM Code: AGR CPS2TTLM 0319V2
BY:-ATAKLTI BRHANE

Maichew ATVET College Pby Ataklti B. 2011 E.C page 1
TABLE OF CONTENTS
Instruction Sheet Learning Guide 04
This learning guide is developed to provide you the necessary information regarding the following
content coverage and topics –
 The Concept of Promotion
 Performing selection of a promotion
 Contract between an Advertising Agency and an Advertiser
 Criteria for evaluating advertising media
 Preparing materials and conducting promotion
 Promotional techniques
 Integration of promotional tools into planning
 Criteria for integrating promotion tools
 Monitoring and evaluating promotion activities
 Collecting Feedback from customers
This learning guide is designed to include the skills and right attitudes required to understand promotion,
promotion methods; select appropriate promotion agencies, follow up and evaluate the preparation of
legal documents, implementation of promotion activities and monitoring
Learning Activities
1. Read the specific objectives of this Learning Guide.
2. Read the information written in the “Information Sheets 1-4”. Try to understand what are being
discussed. Ask your teacher for assistance if you have hard time understanding them.
3. Accomplish the “Self-check” exercise at the end of each information sheets
4. If you earned a satisfactory evaluation on each self check exercises proceed to the next “Information
Sheets. However, if your rating is unsatisfactory, see your teacher for further instructions
5. Submit your accomplished Self-check. This will form part of your training portfolio.
6. Read the information written in the “Information Sheets 3 and 4,

Information Sheet-1 LO1: Selecting promotion agencies
Learning objective:
On completion of this information sheet, trainees will be able to:
 Define what promotion is.
 List the elements in promotion mix
 Explain mechanism how business firms select an appropriate promotion agency
 Evaluate the available media and select the appropriate one.
1.1. The Concept of Promotion
Promotion is persuasive communication. The goals of promotional activities are
summarized by the phrase AIDA:
 Attract Attention
 Build Interest and Desire
 Ask for Action
 There are four basic types of promotion: 1) Advertising 2) Sales Promotion 3)
Personal Selling 4) Publicity
Institutional promotion is used to:
 Create a favorable image for a business
 Help an organization advocate for change
 Take a stand on trade or community issues
Institutional promotion fosters a favorable image for the company.
 Explain the major features and benefits of a product/service
 Identify where it is sold and advertise sales
 Answer customer questions
 Introduce new offerings
Types of Promotion in the Promotional Mix
There are five basic Types in the promotional mix:
 Personal selling
 Advertising
 direct marketing
 Sales promotion and

 Public relations
 Personal selling: involves direct contact between salespeople and customers. This
can take place in the forms of:
 Personal meetings
 Telemarketing
 E-mail contact and other correspondence
 Advertising; is a form of non personal promotion and one-way communication. It
can be found in places including:
 Newspapers and magazines
 Television and Web sites
 Billboards and city buses
 Direct marketing: is a type of advertising directed to a targeted group of
prospects rather than to a mass audience. Two forms are direct marketing.
 Printed direct mail
 Electronic direct mail
 Sales promotion; represents all marketing activities–other than personal selling,
advertising, and public relations–that are used to stimulate purchasing and sales. Its
objectives are to:
 Increase sales and inform customers
 Create a positive business or corporate image
 Public relations (PR): activities try to create a favourable image for a company, its products, or
its policies. They can enable an organization to influence a target audience. Another public
relations’ goal is to cultivate media relations with reporters who cover a specific industry.
A news release: is an announcement that is sent to media outlets. It can be used to announce
newsworthy developments, such as news about products, distribution channels, facilities, partners,
revenues, employees, and events.
Publicity: involves bringing news or newsworthy information about an organization to the public’s
attention. This process is also known as placement.
The main function of publicity is to develop a positive perception or awareness of the organization in the
marketplace.

 What is the difference between advertising and promotion?
Advertising is done to build brand image and increase sales, whereas Promotion is used to push short-term
sales. Advertising is one of the elements of promotion while the promotion is the variable of the marketing
mix. Advertising has a long term effect but at the same time promotion has short term effects
1.2. Performing selection of a promotion agency
Establishing criteria for evaluating and selecting advertising media
To help select the right advertising and promotional media, consider the following three strategies.
1. Stick to your promotional budget. Concerns you may need to clarify, include:
 How much are you willing to invest in advertizing in the first year?
 How will your budget restrictions limit the media you can use?
 How can you spread your budget over a year to give a repetitive, continuous message?
2. Choose a Variety of media rather than concentrate on one specific source.
3. Collect as much data as you can on each medium. Research the following variables:
 Cost of each medium
 Circulation or number of people exposed to the medium
 Resulting cost per thousand
 Market penetration for each medium, etc.
1.3. Additional criteria for evaluating advertising media
To further determine what types of advertising is appropriate and within company budget projections,
carefully review your customer profile and write a clear statement of your advertising goals. Next,
answer the following crucial question about your advertising:
What should be said about the business and how should it be stated?
What media should be used?
How much can be spent on advertizing?
How can the advertizing program be implemented?
How can its effectiveness be measured
It is also a good idea to evaluate and examine advertising media from the stand point of three basic
ingredients:
 Audience (coverage) each enjoys
 Acceptance

 Ability to expand its initial impact by being available more than once or twice in a particular
time frame frequency (exposure).
Lastly, to help establish criteria for selecting and evaluating advertising, you should address the
following factors:
 Continuity of message: how will the type of product or service, customer profile and seasonal
buying patterns affect your choice of media and the frequency with which you advertize?
 Customer type: what does your potential customer read or listen to? Where? How often?
 Performance: what is the track record of the advertizing media you are considering for your type
of business? What do your competitors use?
 Trading area: do you plan to serve or sell to an industrial market, a national market? A
neighborhood or a specialized market. Describe your market area.
Self-Check 1 Short answer questions
Directions: Answer all the questions listed below. Illustrations may be necessary to aid some
explanations/answers.
1. What is promotion?
2. What is the difference between advertizing and sales promotion?
3. Discuss the criteria business firms may use to evaluate and select the appropriate promotion
agency.

Information Sheet-2 LO2; Preparing and signing contractual agreement
Learning objectives:
This information sheet is aimed to enable you:
 Define contract law
 List the types of contract
 Explain terms and conditions an advertiser should consider while appointing an advertizing
agency.
 Decide on media content and time.
2.1. An overview of contract
2.1.1. Sources and definition of contract law
What is a Contract?
A contract is formed in any transaction in which one or both parties make a legally enforceable promise.
A promise is a commitment or undertaking that a given event will or will not occur in the future and
may be expressed or implied from conduct or language and conduct.
2.1.2. Types of Contracts
Contract may be of the following types:
1) Express – an agreement manifested by words
2) Implied-in-fact – an agreement manifested by conduct
3) Implied-in-law ("quasi-contract") – not a true contract but an obligation imposed by a court despite
the absence of a promise in order to avoid an injustice
Sources of Contract Law
1) Common Law – in most jurisdictions, contract law is not codified, and thus the primary source of
general contract law is case law.
2) United Nations Convention on Contracts for the International Sale of Goods– ratified by many
of the leading trading nations including the United
States and China (but not the United Kingdom and Japan), it governs many transactions for the sale of
goods between parties with places of business in different nations.
3) Commercial code of countries.

2.2 Contract between an Advertiser and an Advertising Agency
 Advertisers
1] When briefing your agency be sure to be thorough, clear and give full details with DOs and DON’Ts,
if any.
2] The first ideas for a campaign from your agency come to you in rough form i.e., as words (Called
copy) and a rough scribble (Called layout) of the advertisement.
3] Once the lay out and copy are approved, the next step is preparation of the artwork; again please
ensure that the words and the pictures are 100% correct.
4] Insist on an estimate for all expenditure, except where it is obviously considered unnecessary i.e.,
which are at fixed prices.
5] All artworks, blocks and mats become your property when paid for you. The The final responsibility
is yours.
6] When ordering printed material please remember that printers or agencies cannot give you an exact
number of copies and their supply against your print order could vary.
Advertising agency in accordance with and subject to the following terms and conditions:
1. Assignment
2. Nature of Services
3. Compensation.
4. Billing and Payment Procedures.
5. Commitments to Third Parties
6. Inspection of Books
7. Safeguarding of Property
8. Indemnities
9. Term of Agreement
10. Ownership
11. Rights upon Termination
12. Arbitration of Disputes
13. Notices
14. Governing Law
2.2 Deciding on media timing
The advertiser must also decide how to schedule the advertising over the course of a year. Suppose
sales of a product peak in December and drop in March. Finally, the advertiser has to choose the

patterns of the ads. Continuity means scheduling ads evenly within a given period. Pulsing means
scheduling ads evenly over a given time period vary its advertising to follow the seasonal pattern, to
oppose the seasonal pattern, or to be the same all year.
Self-Check 2 Short answer questions
1. What is contract?
2. Discuss the various sources of contract.
3. Assume that you are a president in a secondary cooperative society. Assume again that your
society needs to appoint an advertizing agency to promote its products and services. Then;
a) What are the terms and conditions you should consider at a glance?
b) What is the relevant domestic law you are supposed to refer?
c) How can you Protect Your Creative Advertising?
4. Discuss the advantage/s business firms will avail through scheduling its advertising campaign
over the course of a year?
Information Sheet-3 LO3: Preparing Materials and Conducting Promotion
A thorough reading of this information sheet will help you:
 Evaluate the merits and demerits of each promotion tools in a particular marketing
situation
 Design and implement an effective marketing communication strategy to your firm
 Integrate the range of promotion tools in your firm’s promotion program, and
 Design an appropriate promotion strategy to your firm
3.1 Promotional Techniques
, they must skilfully use the mass-promotion tools of advertising, sales promotion and public relations.

3.1.1 Advertising
We define advertising as any paid form of non-personal presentation and promotion of ideas, goods or
services through mass media such as newspapers, magazines, television or radio by an identified
sponsor.
Advertising is a good way to inform and persuade, whether the purpose is to sell Nokia mobile phones
worldwide or to encourage smokers to give up the habit. Advertising is used in order to stimulate a
response from the target audience
3.1.1.1 Setting Advertising Objectives
The first step is to set advertising objective
An advertising objective is a specific communication task to be accomplished with a specific target
audience during a specific period of time.
Advertising objectives can be classified by primary purpose – whether the aim is to inform, persuade or
remind.
Informative advertising is used heavily when introducing a new product category
Persuasive advertising becomes more important as competition increases:
3.1.1.3. Setting the advertising budget
When setting the advertising budget:
 Stage in the product life cycle. A brand’s advertising budget often depends on its stage in the product
life cycle
 Market share. Market share also impact the amount of advertising needed.
 Competition and clutter. In a market with many competitors and high advertising clutter, a brand
must be advertised more heavily to be noticed above the noise in the market.
 Advertising frequency. When many repetitions are needed to present the brand’s message to
consumers, the advertising budget must be larger.
 Product differentiation. Undifferentiated brands – those that closely resemble other brands in their
product class (coffee, laundry detergents, chewing gum, beer, soft drinks).
3.1.1.4. Developing advertising strategy
Advertising strategy covers two major elements: creating the advertising messages and selecting the
advertising media
Creating the advertising message
No matter how big the budget, advertising can succeed only if commercials gain attention and
communicate well.

 Message strategy
The first step in creating effective advertising message is to decide what general message will be
communicated to consumers.
 To plan the message strategy that the advertiser wants to stress.
 The advertiser must develop a compelling creative concept – or big idea – that will bring the
message strategy to life in a distinctive and memorable way.
 At this stage, simple message ideas become great ad campaigns.
 Message execution
The advertiser now has to turn the big idea into an actual ad execution that will capture the target. Any
message can be presented in different execution styles, such as the following:
 Slice of life. This style shows one or more people using the product in a normal setting (e.g. the
classic Persil laundry detergent commercials
 Lifestyle. This style shows how a product fits in with a particular lifestyle.
 Fantasy. This style creates a fantasy around the product or its use. For instance, many ads are built
around dream themes. Mood or image.
 Musical. The ad is built around a song or some well-known music, so that emotional responses to
the music are associated with the product. For example, one of the most famous ads in history was a
Coca-Cola ad built around the song ‘I’d like to teach the world to sing’.
 Personality symbol. This style creates a character that represents the product. The character might
be animated
 Technical expertise. This style shows the company’s expertise in making the product
 Scientific evidence. This style presents survey or scientific evidence that the brand is better or better
liked than one or more other brands.
 Testimonial evidence or endorsement. This style features a highly believable or likeable source
endorsing the product.
Selecting advertising media
The advertiser must next decide upon the media to carry the message. The main steps in media selection
are:
1. Deciding on reach, frequency and impact
2. Choosing among chief media types
3. Selecting specific media vehicles
4. Deciding on media timing.

Deciding on reach, frequency and impact
Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign
during a given period of time. For example, the advertiser might try to reach 70 per cent of the target
market during the first three months of the campaign.
Frequency is a measure of how many times the average person in the target market is exposed to the
message. For example, the advertiser might want an average exposure frequency of three. The
advertiser must also decide on the desired media
Impact is the qualitative value of a message exposure through a given medium. For example, for
products that need to be demonstrated, message on television may have more impact than messages on
radio because television uses sight and sound.
Choosing among chief media types
. The major media types are newspapers, television, direct mail, radio, magazines, outdoors and the
Internet.
Selecting specific media vehicles
The media planner must now choose the best media vehicle – that is, specific media within each general
media type. In most cases, there is an incredible number of choices. For radio and television, and in any
one country, there are numerous stations and channels to choose from, together with hundreds, even
thousands, of programme vehicles – the particular programmes or shows where the commercial should
be broadcasted. Prime-time programmes are the favourites, but costs escalate with the popularity of the
programme.
Deciding on media timing
The advertiser must also decide how to schedule the advertising over the course of a year.
3.1.1.5. Evaluating advertising
The advertising programme should regularly evaluate both the communication impact and the sales
effects of advertising.
. The figure shows the levels of communication effect that advertisers are likely to monitor and measure
with respect to a campaign:
 The change in brand awareness is determined by the number of customers who were previously
unaware of the brand and the number who notices the advertisement and are now aware of the brand,
or by the difference in the number of customers who are aware that the brand exists before and after
the campaign.
 The nature of consumers’ attitudes towards a brand can be ascertained before and after benefits.

 Consumers who are sympathetic towards advertised brand benefits would manifest their favourable
response in the form of stated brand preference.
 An advertising campaign may be used to turn preference among customers into more definite
intention to buy.
 It is usually difficult to measure the sales effect of a campaign.
 If the customer is satisfied with the brand he or he has bought, this will lead to repeat purchase on
another buying occasion.
Other advertising considerations
In developing advertising strategies and programmes, the company must address two additional
questions. First, how will it organize the advertising function – which will perform the advertising
tasks? Second, how will the company adapt its advertising strategies and programmes to the
complexities o international markets?
Organizing for advertising
Different organizations handle advertising in different ways. In small and medium-sized companies,
advertising might be handled by someone in the sales or marketing department. Large companies might
set up advertising departments whose job it is to set the advertising budget, work with the ad agency and
handle dealer displays and other advertising not done by the agency. Most companies, small or large,
tend to use outside advertising agencies because they offer several advantages.
There are disadvantages in relinquishing the advertising function to an outside agency: loss of total
control of the advertising process, a reduction in flexibility, conflicts arising when the agency dictates
working practices, and client ability to exercise control or coordination.
3.1.2 Sales promotion
Sales promotion consists of short-term incentives, in addition to the basic benefits offered by the product
services, to encourage the purchase or sale of a product or services.
Sales promotion includes a wide variety of promotion tools designed to stimulate earlier or stronger
market response. These tools are used by many organizations – manufacturers, distributors, retailers,
trade associations and non-profits institutions – and may be targeted towards the consumers or final
buyers, business customers, the trade or retailers and the company’s sales force.
 Consumer promotions include money-off, coupons, premiums, contests and others.
 Trade promotions range from special discounts, free goods and loyalty bonuses to training.
 Business promotions include may of the same tools used for consumer or trade promotions such
as conventions and trade shows, as well as sales contests.

 Sales force promotions include bonuses, commissions, free gifts and competitions.
Rapid growth of sales promotion
Several factors have contributed to the rapid growth of sales promotions, particularly in consumer
markets.
1. Inside the company, product managers face greater pressure to increase their current sales and
promotion is increasingly viewed as and effective short-run sales tool.
2., externally, the company faces more competition and competing brands are less differentiated.
Increasingly, competitors are using sales promotion to help differentiate their offers.
3, advertising efficiency has declined because of rising costs, media clutter and legal restraints.
4, consumers have become more del-oriented and ever-larger retailers are demanding more deals from
manufacturers.
5, developments in information technology, the reduction in data storage and retrieval costs, and the
increased sophistication of targeting techniques have facilitated implementation and enabled more
effective measurements and control of sales promotion efforts.
Setting sales promotion objectives
Sales promotion objectives vary widely. Let us take consumer promotions first. Sellers may use
consumer promotions to:
1. Increase short-tem sales;
2. Help build long-term market share;
3. Entice consumers to try a new product;
4. Lure consumers away from competitors’ product; encourage consumers to ‘load up’ on a mature
product;
5. Hold and reward loyal customers.
Objectives for trade promotions include:
1. Motivating retailers to carry new items and more stock;
2. Inducing them to advertise the product and give it more shelf space;
3. Persuading them to buy ahead.
For the sales force, objectives may be to:
1. Get more sales force support for current or new products; or
2. Stimulate salespeople to sign up new accounts.
Sales promotions are usually used together with advertising, personal selling or other promotion mix
tools.

Sales promotions have certain limitations.
Sale promotions often attract the last group – brand switcher –because non-user of the brands do not
always notice or act on a promotion.
Major sales promotion tools
Descriptions of the main consumer and trade promotion tools follow.
Consumer promotion tools
The main consumer promotion tools include sample, coupons, cash refunds, price packs, premiums,
advertising specialties, patronage rewards, point-of-purchase displays and demonstrations, and contests,
sweepstakes and games.. They are major consumer goods companies are cultivating new outlets from
distribution coupons, such as supermarket shelf dispensers, electronic point-of-sale coupons printers or
through ‘paperless coupon systems’ that dispense personalized discount to targeted buyers at the
checkout counter in stores.
.
Trade promotion tools
Trade promotion can persuade retailers or wholesalers to carry a brand, give it shelf space, promote it in
advertising and push it to consumers.
Business promotion tools
Companies spend huge sums of money each year on promotion to industrial customers. These business
promotions are used to generate business leads, stimulates purchases, reward customers and motivate
salespeople. Business promotion includes many of the same tools used for consumer or trade
promotions.
Conventions and trade shows
Many companies and trade associations organize conventions and trade shows to promote their products.
Firms selling to the industry show their products at the trade show.
Trade shows also help companies reach many prospects not reaches through their sales forces
Sales contests
A sales contest is a contest for salespeople or dealers to urge their sales force to increase their efforts
over a given period. Sales contests motivate and recognize good company performers, who may receive
trips, cash prizes or other gifts.
Developing the sales promotion programme

The market must make several other decisions in order to define the full sales promotion programme.
First, the marketers must decide on the size of the incentive. A certain minimum incentive is necessary
if the promotion is to succeed; a larger incentive will produce more sales response.
Companies should prepare implementation plans for each promotion, covering led time and sell-off
time. Lead-time is the time necessary to prepare the programme before launching it. Sell-off time
begins with the launch and ends when the promotion ends.
Evaluation is also very important. Many companies fail to evaluate their sales promotion programmes,
while others evaluate them only superficially. The most common evaluation method is to compare sales
before, during and after a promotion. Suppose a company has a 6 percent market share before the
promotion, which jumps to 10 per cent during the promotion, falls to 5 per cent right after and rises to 7
per cent later on. The promotion seems to have attracted new tries and more buying from current
customers. After the promotion, sales fall as consumers use up their stocks. The long-run rise to 7 per
cent means that the company gained some new users.
3.1.3 Public Relations
Another important mass-promotion technique is public relations.
Public relation is used to promote products, people, places, ideas, activities, organizations and even
nations.
. Public elations (PR) departments perform any or all of the following function:
 Press relations or press agency. Creating and placing newsworthy information in the news media to
attract attention to a person, product or service.
 Product publicity. Publicizing specific products.
 Public affairs. Building and maintaining local, national and international relations.
 Lobbying. Building and maintaining relations with legislators and government officials to influence
legislation and regulation.
 Investor relations. Maintaining relationships with shareholders and others in the financial
community.
 Development. Public relations with donor or members of non-profit organizations to gain financial
or volunteer support.
The role and impact of public relations
Public relations can have strong impact on public awareness at a much lower cost than advertising can.
The company does not pay for the space or time in the media.
Major Public Relations Tools

PR professionals use several tools. One essential tool is news. PR professionals find or create
favourable news about the company and its product or people. Another common PR tool is special
events, ranging from news conferences, press tours, grand openings and firework displays to laser
shows, hot-air balloon releases, multimedia presentations and star-studded spectaculars, or educational
programmes designed to reach and interest target publics. Richard Branson, the chief executive of
Virgin Group, offers a good example of a practitioner who has perfected the art of deploying both
speeches and special events for self – and corporate promotion.
Main public relations decisions
As with the other promotion tools, in consideration when and how to use product public relations,
management should set PR objectives, choose the PR message and vehicles, implement the PR plan and
evaluate the results.
Setting public relations objectives
The objectives for public relations are usually defined in relation to the types of news story to be
communicated, the communication objectives to be achieved (for instance, awareness creation,
knowledge dissemination, generation of specific publicity for target groups) and the specific target
audiences
Choosing public relations messages and vehicles
Message themes for the public relations exercise should be aligned with the organization’s PR
objectives. In some cases the choice of PR messages and tools will be clear-cut. In others, the
organization has to create the news rather than find it by sponsoring noteworthy events. Creating events
is especially important in publishing fund-raising drives for non-profit organizations. In the past, fund-
raisers have created a large set of special events, ranging from art exhibits, auctions and dinners, to
marathons, walkathons and swimathons.
Implementing the public relations plan
The PR campaign must be implemented with care. For example, a great story is easy to place, but,
unfortunately, most stories are not earth shattering and would not get past busy editors. Thus, PR
professionals have to acquire a good feel for what media editors want to feature in their papers and
magazines as well as establish good relationships with them. They view media editors as a market to be
satisfied so that editors will continue to sue their stories.
Evaluating public relations results
Public relations results are difficult to measure because PR is used with other promotion tools and its
impact is often indirect. Ideally, the company should measure the change in product awareness,

knowledge and attitude resulting from the publicity campaign. Assessing the change requires measuring
him before-and-after-the-campaign levels of these measures. Finally, sales and profit impact, if
obtainable, is the best measure of public relations effort.
3.1.4. Personal selling and direct marketing
Personal selling is the interpersonal arm of marketing communications in which the sales force
interacts with customers and prospects to make sales and build relationships.
Direct marketing consists of direct connections with carefully targeted consumers to both obtain an
immediate response and cultivate lasting customer relationships. Actually, direct marketing can be
viewed as more than just a communications tool.
 Personal selling
Robert Louis Stevenson once noted that ‘everyone lives by selling something’. We are all familiar with
the sales forces used by business organizations to sell products and services to customers around the
world. Sales forces are found in non-profit as well as profit organizations. Churches use membership
committees to attract new members. Hospitals and museums use fund-raisers to contact donors and raise
money. In the first part of this, we examine the role of personal selling the organization, sales force
management decisions and the personal selling process.
The nature of personal selling
Selling is one of the oldest professions in the worlds. The people who so the selling go by many names:
salespeople, sales representatives, account executives, sales consultants, sales engineers, field
representatives, agents, district managers, marketing representatives and account development reps, to
name a few.
Direct marketing
Direct marketing consists of direct communications with carefully targeted individual customers to
obtain an immediate response and cultivate lasting customer relationships. Direct marketers
communicate directly with customers, often on a one-to-one, interactive basis. Using detailed database,
they tailor their marketing offers and communications to the needs of narrowly defined segments or
even individual buyers. Beyond brand and image building, they usually seek a direct, immediate and
measurable consumer’s response.
Benefits and growth of direct marketing whether used as a complete business model or as a
supplement to a broader integrated marketing mix, direct marketing mix, direct marketing brings many
benefits to both buyers and sellers. As a result, direct marketing has grown very rapidly.
The benefits of direct marketing

Direct marketing benefits buyers in many ways. First, it is convenient. From the comfort of their homes
or offices, customers can browse mail catalogues or sellers’ websites at any time for the day or night.
Buying is easy and private. Customers confront fewer buying hassles and do not have to face
salespeople or open themselves up to persuasion and emotional pitches. Business customers can learn
about available products and services without waiting for and tying up time with salespeople. Direct
marketing often gives shoppers greater product access and selection. Beyond a broader selection of
sellers and products, online and Internet channels also give buyers access to a wealth of comparative
information, information about companies, products and competitors, at home and around the globe.
Direct marketing also yields many benefits to sellers. First, direct marketing is a powerful tool for
customer relationship building. Suing database marketing, today’s marketers can target small groups or
individual consumers, tailor offers to individual needs and promote these offers through personalized
communications.
Direct marketing also permits easy testing of alternatives media and messages. Because of its one-to-one, interactive nature,
the Internet is an especially potent direct-marketing tool. Direct marketing also gives sellers access to buyers that they could
not reach through other channels. For example, the Internet provides access to global markets that might otherwise be out of
reach.
Finally, direct marketing can offer sellers a low-cost, fast and efficient alternative for reaching their
markets. When personal sales calls cost several hundred euros per contact, they should be made only
when necessary and to high-potential customers and prospects. Lower cost-per-contact media such as
telemarketing, direct mail and company websites – often prove more cost-effective in reaching and
selling to more prospects and customers.
Customer database and direct marketing
Effective direct marketing begins with a good customer database. A customer database is an organized
collection of comprehensive data about individual customers or prospects, including geographic,
demographics, psychographics and buying behaviour data. The database can be used to locate good
potential customers, tailor products and services to the special needs to targeted consumers, and
maintain long-term customer relationships. Database marketing is the process of building, maintaining
and using customer database and other database (products, suppliers, resellers) for the purpose of
contacting and transacting with customers.
Forms of direct marketing
The major forms of direct marketing include personal selling, the phone marketing, direct-mail
marketing, catalogue, marketing, direct response television (DRTV) marketing and online shopping.
Many of thee techniques were first developed in the United States, but have become increasingly

popular in Europe. In the EU, some forms of direct marketing notably direct mail and telemarketing –
are forecast to grow. In practice, however, the impact of a unified Europe has been limited by the
labyrinth of legislation across the Union, which means that certain direct marketing techniques are
feasible in some countries but not others.
Telephone marketing
Telephone marketing or telemarketing uses the telephone to sell directly to consumers. It has become
a major direct marketing toll. Marketers use outbound telephone marketing to generate and qualify sales
leads, and sell directly to consumers and businesses. Calls may also be for research, testing, database
building or appointment making, as a follow-up to a previous constant, or as part of a motivation or
customer-care programme.
Direct-mail marketing
Direct-mail marketing involves sending an offer, announcement, reminder or other item to a person at a
particular address.
. Direct mail has proved very successful in promoting all kinds of products, from books, magazines
subscriptions and insurance to gift items, clothing, gourmet food, consumer packaged goods and
industrial products. Direct mail is also used heavily by charities, such as Oxfam and Action Aid, which
rely on correspondence selling to persuade individuals to donate to their charity.
Catalogue marketing
Catalogue shopping once started almost as explosively as the Internet, though few of us might remember
this. Cataloguers’ sales pitch was remarkably similar too – no need to struggle to the store, vast choice,
lower prices.
Direct-response television marketing
Direct-response television (DRTV) takes one of two main forms.
1, direct-response advertising.
2. Television viewers may encounter longer,
. DRTV marketing has also been used by charities and fund-raising campaigners to persuade viewers to
offer donations or volunteer services. Examples include the ‘lives Aid’ campaign that captured the
imagination of millions of people across the globe, ‘children in need’ and many other international fund-
raising events.

Direct-response TV advertising is giving way sectors, deliver more complex messages and information
to target viewers. Including cars, travel, telecommunications and financial services, are actively using
TV to deliver more complex messages and information to target viewers.
3.2. Integration of promotional tools into the firm’s promotion program
3.2.1. Promotional tools
There are a variety of tools that can be used to communicate with audiences.
An understanding of the promotional tools and the ways in which they work is essential.
3.2.2. The range of promotional tools
The range of promotional tools continues to grow. The variety of media that can be used for
campaigns has expanded, both in the printed advertising field and in the broadcast field.
Above-the-line campaigning is advertising placed in paid for media, such as the press, radio, TV,
cinema and outdoor sites. The ‘line’ is one in an advertising agency’s accounts, above which are
shown its earnings on a commission basis, from the buying of media space for clients.
Below-the-line promotion involves product-integral and negotiated sales incentives, such as
packaging, merchandising, on-pack discount and competitions and so on.
. Direct marketing is now a more significant part of the marketing plan for many products, along
with interactive forms such as the Internet.
3.2.3. Programmable logic controller (PLC) and developing promotional strategy
Through this it is possible to identify the different types of buyer involved with the product at each stage and through
this fine-tune the appropriate message and media.
3.2.3.1. Introduction
For consumer brands this phase is critical as the primary need is to secure trade acceptance (and hence
shelf space) and then build pubic (target audience) awareness. Sunny Delight was developed by Procter
& Gamble in consultation with major multiple grocers. When the product was launched the multiples
acceptance the brand as it has been developed partly to their specification on price, ingredient and
packaging/size.
3.2.3.2. Growth
During growth, promotional activity is used competitively to build market share. Customers are
normally willing to buy, having been made aware, but their problems become one of brand choice.
Marketing communications should therefore be used to differentiate and clearly position product such
that it represents significant value for the customer.

3.2.3.3. Maturity
One the rapid growth in a market starts to ease, the period of maturity commences. The primarily
characteristics of this stage is that there is little or no growth. The battle therefore is to retain customer
loyalty, and to do this, sales promotions are often used, to encourage trial by non-user of a brand and as
a reward for current users.
Marketing at work
Sales promotions alone may not be sufficient, and a whole repositioning programme may be necessary
to sustain a brand in competitive conditions.
3.2.3.4. Decline; as sales start to decline it is normal practice to withdraw a great deal of promotion support.
Direct marketing and a little well targeted advertising to remind and reassure brand loyal is the most commonly used.
It is worth thinking about which tools may be appropriate at which stage of the life cycle.
3.2.4. How to co-ordinate the tools
Promotion work is exciting because the aim is to influence customers favourably towards your
organization’s products or services. It is not an exact science. It is necessary to co-ordinate all the
promotional elements to achieve the maximum influence on the customer.
The following diagram shows that co-ordination can be conscious choice during the planning process,
and it can also be a necessary part of the review and revision process.
3.2.4.1. Integration of promotional tools into planning
The diagram below demonstrates the use of measures that can be taken to ensure co-ordination. The
first three involve asking questions about the effectiveness, economy and efficiency of the promotion
tools. The efficiency can be forecast in the pre-campaign phase and then measured by means of tracking
2
Selection of
promotion tools
3
Integration into
marketing
communications
4
Implementation of
promotion
campaign
1
Analysis of
communication
needs
6
Review and revise
promotion tool
5
Control,
comparing result
against objectives

studies during the campaign. This will lead to a review, revision and further co-ordination of the
promotion tools.
3.2.4.2. Criteria for integrating promotion tools
Pull, Push and Profile communication strategies
Setting the scene the focus here is to consider the emphasis of the marketing strategy – the balance
between the need to communicate with consumers, with distributors and with all other stakeholders.
Type of Audience Message focus
1. Consumers and business-to-business customers Products and Services
2. Members of the marketing channels, such as dealers Product and Services
3. All stakeholders, in order to raise the visibility The organization
of the organization
These are 3Ps of marketing communication:
1. Pull communication
2. Push communication strategies
3. Profile communication strategies
Pull based communication strategies
A pull strategy is used to generate and sustain a dialogue with end user customers.
Typical strategies are to create higher levels of product awareness (spontaneous or prompted).
A particular pull strategy that has been developed and refined over many years is branding.
1
Effectiveness of
promotion tools
2
Economy of
promotion tools
Integration
in to marketing
communications
4
Review and revise
promotion tools
3
Efficiency of
promotion tools

Push based communication strategies
Direction of
Communication
Push based communication strategies
Communication with members of the marketing channel, such as dealers and retailers, is absolutely vital
if sufficient exposure and visibility are to be obtained for the product.
A push strategy uses marketing channels, such as trade promotions, to "push" a product or service
through to the sales channel.
Profile based communication strategies
A profile strategy addresses how the corporate entity is perceived by a range of stakeholder audiences.
For example, it is quite common for an organization to develop a communications campaign that is
targeted at the financial markets and the stock market in particular. This is referred to as investor
communications.
Corporate identity
Corporate identity is about the way an organization communicates with its audiences. There are two
main forms of communication, those are:
1. Planned organization and
2, unplanned organization communications.
The individual communication methods that make up these planned and unplanned communications are
referred to as cues.
1. Examples of planned cues are letterheads, logos, signage, product quality and the behaviour and
level of knowledge of its employees.
2. Examples of unplanned cues are media comment, the cleanliness of the company’s vehicles and any
actions taken by competitors and consumer groups that may reflect or directly relate to the
organisation..
Manufacturer
Wholesaler or
distributor
Retailer or value
added reseller
Consumer or buyer

Corporate communication strategy
As well as communicating about its individual products and services, the company may wish to pursue a
corporate communication strategy. This can take either of two forms.
1. First, it can be a simple corporate communication campaign aimed at improving the company’s
identity and subsequently its image.
2. Secondly, it may be a campaign whereby the company associates itself with a current and topical
social issue.
Self-Check -3 Short answer questions
1. Discuss the advantages and disadvantages of each promotion tool in a promotion mix
2. Discuss the criteria firms may use to integrate the various promotion tolls to their overall marketing
goal.
3. What is/are the advantage/s of designing effective marketing strategy?
4. What are the 3ps of marketing communication?

Information Sheet-4 LO4: Monitoring and evaluating promotion activities
This information sheet provides you knowledge on:
 How to measure the effectiveness of a promotional program
 Methods of gathering feedback from customers
 Analyzing customer feedback
 Responding to customer feed back
4.1. Measuring the Effectiveness of Promotional Mix
If an organization to measure the effectiveness of it promotional activities, this can be done in either of
the following ways;
• Direct sales result; this method reveals the sales revenue for each amount input into promotion. That is,
it measures the rate of sales to the expense on promotion.
• Indirect evaluation; this method focus on quantitable indicators of effectiveness. For instance, the
effectiveness is measured based on the organization study of the number of audience that actually heard
about the product during the promotional activities.
• Returns method; promotional effectiveness should be measured based on the returns of the period of
promotion.
• Direct response method; this method is concentrating on having a way of getting response from the
targeted audience and this response should be used to measure the effectiveness of promotion.
4.1.1. Measuring the Complex Impact of Promotions
The hardest part of measuring effectiveness is determining a promotion’s real impact on demand. Once
companies understand the true impact on demand, calculating effectiveness is just a matter of arithmetic.
Measuring true impact, on the other hand, requires powerful analytical techniques to make sense of huge
streams of sales and causal data. The noisy nature of retail data complicates the task.
4.1.2. Pre-promotion and Post-promotion Effects
Compounding the analytical challenge of measuring promotion impact is the fact that the impact is not
limited to the duration of the promotion activity. Some promotions produce benefits beyond the
promotion period. In other cases, promotions reduce volume both before and after the promotion period.
These delayed purchasing and stockpiling effects can take place at both the consumer level and the
account level.

4.2 Collecting Feedback from customers
After sending the message, the communicator (the advertiser) must research its effect on the target
audience. This involves asking the customers whether they remember the message, how many times
they saw it, what points they recall, how they felt about the message, and their past and present attitudes
toward the product and company. The communicator also wants to measure behavior resulting from the
message—how many people bought a product, talked to others about it, or visited the store.
1.3 Analyzing customer feedback and Responding to it
The data gathered through various methods should be organized and will be ready for analysis. From the
result of the analysis, the advertiser could see whether the stated promotional objectives are met or not.
Feedback on marketing communications may suggest changes in the promotion program or in the
product offer itself.
1. How can companies measure the effectiveness of their promotion strategy?
2. Describe the methods of customer feedback collection.
3. Why companies assess the effect of their promotion strategy?
4. Why feedback?

The Government of the National State of Tigray
Bureau of Technical and Vocational Education & Training
AGRICULTURE
Unit of Competence: Apply Cooperative Marketing Principles and Values
Module Title: Appling Cooperative Marketing Principles and Values
MODULE CODE:AGR CMT3 M01 26 819
TTLM Code: AGR CMT3 M01 26 81819
BY:-ATAKLTI BRHANE

MODULE DESCRIPTION:
This module of competency describes the knowledge, skills and attitude required to demonstrate
principle and value required for cooperatives marketing.
LEARNING OUTCOMES
At the end of the module the learner will be able to:
1. Identify cooperative marketing principle and ethical value of cooperatives
2. Apply ethical value and principle standards
3. Deal with ethical problems
MODULE CONTENTS:
LO1. Identify cooperative marketing principle and ethical value of cooperatives
1.1. Interpretation of ethical value and principle standards
1.2. Ethical value obligations of cooperatives and consequences of unethical conduct
1.3. Conduct of self and others assessed of cooperatives and give feedback
1.4. provide Impartial, culturally and politically neutral advice
1.5. Resolution and/or referral of value and principle problems identified
LO2. Apply ethical value and principle standards
2.1. Interpretation of ethical values and principles
2.2. Personal work practices are undertaken in compliance with cooperatives sector ethics standards
2.3. Prepare Verbal and written advice and reports
2.4. Use Public resources in accordance with cooperatives
2.5. Identify Conflicts of interest accordance with policy and procedures
2.6. Personal behaviour and relationships with the public, suppliers and business contacts
2.7. LO3. Deal with ethical problems
3.1. resolved or referred Situations which pose ethical problems
3.2. Decision-making processes used to resolve ethical problems
3.3. Organisational policies/codes on the prevention and reporting of unethical conduct

LO1. Identify cooperative marketing principle and ethical value of cooperatives
1.1Interpretation of ethical value and principle standards
 What is the meaning of ethical standards?
Ethical standards are a set of principles established by the founders of the organization to
communicate its underlying moral values.
Ethics is based on well-founded standards of right and wrong that prescribe ... The meaning of "ethics"
is hard to pin down, and the views many.
 What are the 5 ethical standards?
There are Five Sources of Ethical Standards.
1 . The Utilitarian Approach. ...
2 . The Rights Approach....
3. The Fairness or Justice Approach. ...
4. The Common Good Approach. ...
5. The Virtue Approach.
 What are some examples of ethical standards?
Principles incorporate the characteristics and values that most people associate with
ethical behavior.
1. Honesty
2. Integrity...
3. Promise keeping and trustworthiness. ...
4. Loyalty. ...
5. Fairness
6. Concern for others. ...
7. Respect for others. ...
8. Low abiding
 What are ethical standards in workplace?
Ethical standards in the workplace is the foundation for happy employees and satisfied
customers. ... The ethical standards in the workplace are partially set by laws and
regulations and partially by the moral standards the company seeks to live by.
Principles of ethics
There are the 7 principles of ethics?
 justice,
 beneficence,
 no maleficence,
 accountability,
 fidelity,
 Autonomy, and veracity.

Basic ethical principles
 What are the 4 ethical principles?
The 4 basic ethical principles that apply to forensic activities are respect for
 autonomy,
 beneficence,
 no maleficence,
 justice
Sourcesof ethical values
There are the 6 sources of ethical values?
Based on the convergence of the three sources of standards, six universal moral values
for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3)
responsibility; (4) fairness; (5) caring; and (6) citizenship.
Types of ethics
There are the 3 types of ethics?
1. consequentialist ethics,
2. and deontological
3. Duty-based ethics.
 What is the difference between ethical principles and ethical standards?
Ethical standards are based on the human principles of right and wrong. The differences
between them are these: Legal standards are based on written law, while ethical standards are
based on human rights and wrongs. Something can be legal but not ethical
1.2 Ethical value obligations of cooperatives and consequences of unethical conduct
 What are the essential roles of ethical code?
Professional values form the basis for the principles that are included in a code of ethics.
Professional values for HIM include the importance of education and technical competency,
patient safety, data validity and accuracy, truthfulness, compassion, and dedication to
providing quality services in professional roles
 What is the role of ethical standards?
Ethical standards. Principles that when followed, promote values such as trust, good behavior,
fairness, and/or kindness. There is not one consistent set of standards that all companies
follow, but each company has the right to develop the standards that are meaningful for their
organization
What is the purpose of a code of conduct?
The purpose of a code of conduct is to develop and maintain a standard of conduct that is
acceptable to the company, its vendors, customers and other employees.
 What is a Code of Ethics definition?
A code of ethics is a set of principles of conduct within an organization that guide decision
making and behavior. The purpose of the code is to provide members and other interested
persons with guidelines for making ethical choices in the conduct of their work.
 What is the main purpose of a code of conduct in the workplace?
The main purpose of the conduct code is to act as a detailed description of what is the most
legal and ethical behavior expected out of the business. A few advantages of having a

business code of conduct are: It enhances the company's core values, beliefs and sets the
right culture.
Code of ethics
 What are the five codes of ethics?
Code of ethics is made up of five fundamental principles:
 Integrity. Being straightforward, honest and truthful in all professional and business
relationships. ...
 Objectivity. ...
 Professional competence and due care. ...
 Confidentiality. ...
 Professional behaviour.
 What is a code of conduct policy?
A code of ethics and professional conduct outlines the ethical principles that govern decisions
and behavior at a company or organization
 What is the difference between a code of ethics and a code of conduct?
Lengthwise, code of ethics is a shorter document than a code of conduct. Code of
Ethics regulates the judgment of the organization while a code of conduct regulates the
actions. ... Code of Ethics focuses on values or principles. On the other hand, Code of
Conduct is focused on compliance and rules.
What are the 5 basic ethical principles?
General ethical principles
 Principle A: Beneficence and no maleficence.
 Principle B: Fidelity and responsibility.
 Principle C: Integrity.
 Principle D: Justice.
 Principle E: Respect for people's rights and dignity.
 What are examples of code of conduct?
Code of conduct example is extremely detailed. For example, in the section on
business gifts, they say exactly what's considered a gift, and they even provide a
specific dollar amount. PepsiCo also encourages employees to speak up when they
see or experience unethical behavior
1.2 Conduct of self and others assessed of cooperatives and give feedback
 What is cooperative planning?
A participative strategic planning process is a way to act cooperatively, to reinforce
the cooperative ideal by cooperatively planning for the future
 What is cooperative learning approach what are its advantages?
Cooperative Learning helps to: Raise achievement of students. Build positive relationships
among students - important for creating a learning community that values diversity. Provide
experiences that develop both good learning skills and social skills.

Befits of cooperative
 What are the benefits of cooperatives?
There are Six Benefits of Cooperatives in Development
 Tackling poverty and creating food security.
 Providing affordable finance. ...
 Building local expertise and profits. ...
 International cooperation. ...
 Creating decent jobs. ...
 Empowering women
 Advantages of cooperative
 What is the advantage of cooperative?
Membership Is Ownership: The Cooperative Advantage. Interest in food cooperatives is
growing, due both to increased interest in local, natural, and organic foods and to
increased awareness of our economic vulnerability. More and more communities want
the stability and accountability that a cooperative can offer.
 What are the five elements of cooperative learning?
The five basic elements of cooperative learning are:
 Positive interdependence.
 Individual and group accountability.
 Interpersonal and small group skills.
 Face-to-face promotive interaction.
 Group processing.

Performing cooperative business promotion 2010

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