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Marketing a Small Business
Show me the Money
Steps in Preparing a Promotional Plan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terms to know ,[object Object],[object Object]
Terms to know ,[object Object],[object Object],[object Object]
Elements of the Promotional Mix ,[object Object],[object Object],[object Object],[object Object]
Advertising Any  PAID  form of  NONPERSONAL  presentation of ideas, goods, or services
Historical Milestones in Advertising    Advertising goes back to the very beginnings of recorded history. Archaeologists working in the countries around the Mediterranean Sea have dug up signs announcing various events and offers. The Romans painted walls to announce gladiator fights, and the Phoenicians painted pictures promoting their wares on large rocks along parade routes. A Pompeii wall painting praised a politician and asked for the people's votes.    During the Golden Age in Greece, town criers announced the sale of slaves, cattle, and other goods.  Another early advertising form was the mark that trades-people placed on their goods, such as pottery. As the person's reputation spread by word of mouth, buyers began to look for his or her special mark, just as trademarks and brand names are used today.
The turning point in the history of advertising came in the year 1450, with the invention of the printing press. Advertisers no longer had to produce extra copies of a sign by hand.  In 1622, advertising was given a big boost with the launching of the first English newspaper,  The Weekly Newes.  Joseph Addison, the publisher, gave this advice to copy writers; “The great art in writing advertising is the finding out the proper method to catch the reader, without which a good thing may pass unobserved, or be lost among commissions of bankrupts." The September 14, 1710, issue of the  Tatler  contained ads for razor strops, patent medicine, and other consumer products. Advertising had its greatest growth in the United States. Ben Franklin has been called the father of American advertising because his  Gazette,  first published in 1729, had the largest circulation and advertising volume of any paper in colonial America.
Types of Advertising ,[object Object],[object Object]
Media? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Promotional Media-Forms of Advertising ,[object Object],[object Object],[object Object],[object Object],[object Object]
Advantages Obtained by Advertising in Newspapers ,[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages Resulting by Advertising in Newspapers ,[object Object],[object Object],[object Object]
Advantages Obtained by Advertising in Magazines ,[object Object],[object Object],[object Object],[object Object]
 
 
How Important is Advertising to Magazines? The chart below shows the top five magazines and the percentage of their revenues generated by advertising, subscriptions and newsstand sales. Source:  Http://www.adage.com  (1999 figures)
Disadvantages Resulting by Advertising in Magazines ,[object Object],[object Object],[object Object],[object Object]
Advantages of Radio Advertising ,[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages of Radio Advertising ,[object Object],[object Object],[object Object],[object Object]
Advantages of Television Advertising ,[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages of Television Advertising ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost to Advertise on the Super Bow l Source: Nielsen Advertising Research, Advertising Age Research.
Cost to Advertise on the Super Bow l Source: Nielsen Advertising Research, Advertising Age Research. Year Price  for 30 seconds Avg. Number Home Avg. Number Viewers 1967 $40,000 22,570,000 51,180,000 1970 78,200 23,050,000 44,270,000 1975 110,000 29,040,000 56,050,000 1980 275,000 35,330,000 76,240,000 1985 500,000 39,390,000 85,530,000 1990 700,000 35,920,000 73,852,000 1995 1,000,000 39,400,000 83,420,000 2000 2,100,000 43,618,000 88,465,000 2005 2,400,000 45,081,000 86,072,000 2006 2,500,000 45,867,000 90,745,000 2007 2,600,000
Advantages of Direct Mail Advertising ,[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages of Direct Mail Advertising ,[object Object],[object Object],[object Object]
Advantages of Outdoor Advertising ,[object Object],[object Object],[object Object],[object Object]
This ad for a portable email device is aimed at busy travelers looking for convenience. Http://www.billboardinfo.com Http://www.buyelink.com
Disadvantages of Outdoor Advertising ,[object Object],[object Object],[object Object],[object Object]
Advantages of Transit Advertising ,[object Object],[object Object],[object Object],[object Object]
Http://www.jessicamcclintock.com
Disadvantages of Transit Advertising ,[object Object],[object Object]
Media Mix in the United States Projected U.S. total ad spending = $134.3 billion Ad Spending per capita = $437.60 Source:  Http://adage.com/dataplace/topmarkets/us.html
Personal Selling The form of promotion that uses  PLANNED, PERSONALIZED  communication in order to influence purchase decisions and to ensure satisfaction
Types of Personal Selling ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Characteristics of an Effective Salesperson ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ not”
[object Object],[object Object],[object Object],[object Object],Characteristics of an Effective Salesperson
[object Object],[object Object],[object Object],[object Object],Characteristics of an Effective Salesperson
Advantages of Personal Selling ,[object Object],[object Object]
Disadvantages of Personal Selling ,[object Object],[object Object],[object Object]
Steps in the Selling Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Any activity designed to create a favorable image toward a business, its products or policies.
PUBLICITY NONPERSONAL  form of promotion that is  NOT PAID   for by the business or individual which benefits from it; information that is provided to the public by the media or other sources at no cost to the business
Characteristics of Publicity ,[object Object],[object Object],[object Object],[object Object]
Characteristics of Publicity ,[object Object],[object Object],[object Object]
Advantages of Publicity ,[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages of Publicity ,[object Object],[object Object],[object Object],[object Object],[object Object]
Forms of Publicity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Reasons for Publicity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Promotional activity other than advertising, personal selling, and publicity which  stimulates consumer purchases Sales Promotion
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Examples of Sales Promotion Activities
Objectives of Sale Promotion ,[object Object],[object Object],[object Object]
Types of Sale Promotion ,[object Object],[object Object],[object Object],[object Object]
Examples of Trade Promotions ,[object Object],[object Object],[object Object],[object Object],Designed to promote to businesses instead of consumers.
Examples of Consumer Sales Promotions Designed to increase consumer desire to buy products. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Examples of Consumer Sales Promotions Designed to increase consumer desire to buy products. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Advantages and Disadvantage  of Sales Promotion ,[object Object],[object Object],[object Object],[object Object],[object Object]
Factors Affecting the Promotional Mix ,[object Object],[object Object],[object Object],[object Object]
Factors Affecting the Promotional Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Factors Affecting the Promotional Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Factors Affecting the Promotional Mix 4. Type of customer 5.  Number of customers 6.  Geographic location of customers
Factors Affecting the Promotional Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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M11 L2 Marketing a Small Business

  • 1. Marketing a Small Business
  • 2. Show me the Money
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  • 7. Advertising Any PAID form of NONPERSONAL presentation of ideas, goods, or services
  • 8. Historical Milestones in Advertising   Advertising goes back to the very beginnings of recorded history. Archaeologists working in the countries around the Mediterranean Sea have dug up signs announcing various events and offers. The Romans painted walls to announce gladiator fights, and the Phoenicians painted pictures promoting their wares on large rocks along parade routes. A Pompeii wall painting praised a politician and asked for the people's votes.   During the Golden Age in Greece, town criers announced the sale of slaves, cattle, and other goods.  Another early advertising form was the mark that trades-people placed on their goods, such as pottery. As the person's reputation spread by word of mouth, buyers began to look for his or her special mark, just as trademarks and brand names are used today.
  • 9. The turning point in the history of advertising came in the year 1450, with the invention of the printing press. Advertisers no longer had to produce extra copies of a sign by hand. In 1622, advertising was given a big boost with the launching of the first English newspaper, The Weekly Newes. Joseph Addison, the publisher, gave this advice to copy writers; “The great art in writing advertising is the finding out the proper method to catch the reader, without which a good thing may pass unobserved, or be lost among commissions of bankrupts." The September 14, 1710, issue of the Tatler contained ads for razor strops, patent medicine, and other consumer products. Advertising had its greatest growth in the United States. Ben Franklin has been called the father of American advertising because his Gazette, first published in 1729, had the largest circulation and advertising volume of any paper in colonial America.
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  • 18. How Important is Advertising to Magazines? The chart below shows the top five magazines and the percentage of their revenues generated by advertising, subscriptions and newsstand sales. Source: Http://www.adage.com (1999 figures)
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  • 24. Cost to Advertise on the Super Bow l Source: Nielsen Advertising Research, Advertising Age Research.
  • 25. Cost to Advertise on the Super Bow l Source: Nielsen Advertising Research, Advertising Age Research. Year Price for 30 seconds Avg. Number Home Avg. Number Viewers 1967 $40,000 22,570,000 51,180,000 1970 78,200 23,050,000 44,270,000 1975 110,000 29,040,000 56,050,000 1980 275,000 35,330,000 76,240,000 1985 500,000 39,390,000 85,530,000 1990 700,000 35,920,000 73,852,000 1995 1,000,000 39,400,000 83,420,000 2000 2,100,000 43,618,000 88,465,000 2005 2,400,000 45,081,000 86,072,000 2006 2,500,000 45,867,000 90,745,000 2007 2,600,000
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  • 29. This ad for a portable email device is aimed at busy travelers looking for convenience. Http://www.billboardinfo.com Http://www.buyelink.com
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  • 34. Media Mix in the United States Projected U.S. total ad spending = $134.3 billion Ad Spending per capita = $437.60 Source: Http://adage.com/dataplace/topmarkets/us.html
  • 35. Personal Selling The form of promotion that uses PLANNED, PERSONALIZED communication in order to influence purchase decisions and to ensure satisfaction
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  • 43. Any activity designed to create a favorable image toward a business, its products or policies.
  • 44. PUBLICITY NONPERSONAL form of promotion that is NOT PAID for by the business or individual which benefits from it; information that is provided to the public by the media or other sources at no cost to the business
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  • 51. Promotional activity other than advertising, personal selling, and publicity which stimulates consumer purchases Sales Promotion
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  • 62. Factors Affecting the Promotional Mix 4. Type of customer 5. Number of customers 6. Geographic location of customers
  • 63.