8. Advertising and promotion

ADVERTISING AND PROMOTION 8

The total demand for the goods or services offered by any small firm can be divided into established demand an newly created demand, sometimes called promoted demand.
Established demand – is that volume of sales which comes without conscious outside promotion by the firm. People buy because they have had positive experiences with  the firm’s products, find the firm conveniently placed, or are attracted by the firm’s  appearance.

Newly created or promoted demand – by contrast, is the volume of sales that results from firm’s engaging in various types of activities to draw  people to the firm. Promoted demand customers, if pleased, can become established customers. Those firms that supplement established demand with promoted demand show much better  sales volume and profits. Almost without exception, additional advertising and promotion brings in greater sales volume.
All the activities that go into  the development of sales can be grouped  under the title promotion of sales. This promotion can use  either direct or indirect  methods. Every small firm owner should think  about using some of the following types of sales promotion.

DIRECT PROMOTION  METHODS INDIRECT  PROMOTION METHODS
1. advertising     1. public relations
2. publicity          2. customer relations
3. displays           3. customer services
4.special  event  sales 4. product styling and packaging
5. manufacturer’s sales 5. community good will
6 personal selling
7. sales promotion campaigns

Advertising can be defined as commercial messages to the public designed to inform  potential and established  customers and to encourage sales for the advertiser. Advertising can   be either institutional ( designed to sell the firm’s name)  or direct- action ( designed to sell the firm’s product or service).
Types of advertising  media. Among the media generally used in advertising are: television,  radio, newspapers, magazines, outdoor billboards, specialty advertising ( distribution  of such items as notebook, pencils, calendars, blotters, gummed labels, telephone pads, shopping bags), public  transportation, yellow pages, direct mail, other media ( catalogues, sampled, handouts, leaflets, etc.)
Measuring  advertising effectiveness. Whenever  possible, every advertising  program undertaken should be checked  for its effectiveness. Some of the ways the small firms can do this are:
1. advertise one item in one ad only. By having no references to the item on the sales floor and then counting the calls and requests, ad results can be identified.
2. place identical ads with identifying marks in two separate  publications. The reader is asked  to bring  the ad to the firm to obtain  a special price or prize.  Count how many  ads come  in from each source.
3. omit a regular advertising project for intermittent periods and watch for any change  in sales.
4. check sales results when a new advertisement is placed.

Publicity has always been described as advertising  that is not paid for. It includes such things as public news items about the owner of the firm that tend to brighten  the firm’s image or make friends for the business.
Displays  are an one – site method of sales promotion. Products that are not normally considered  impulse items are often  sold through an effective  display in the windows or on the sales floor.  Displays  enable  the merchant  to add changes, interest , and brightness to the standard layout, and when well  done can do much to increase sales.

Special  event sales. Special events to directly promote  sales have become a well – established feature of most consumer goods businesses.  The firm’s  anniversary, the firm’s president’s birthday, the addition of a new service for customers,  the start of the spring and fall seasons, and so on, can all be used  as occasions to promote sales. Major holidays, of course, are ideal for sales.
Manufacturer’s aids are any form of assistance provided by the manufacturer to small wholesalers and retailers for promoting  sales. These aids may take the form of national advertising of the products involved, assignment  of trained  personnel to demonstrate  the use of a product such as cookware in the particular store, provision of  attractive  window and floor displays, or monetary contributions to an advertising program.
Personal selling  means all those activities and characteristics of the individual salesperson which make successful sales. Fundamental  to all good personal  selling is a thorough knowledge of the merchandise. Personality, human psychology are  also important.
The four basic steps in making any sale have been summarized as follows: 1. gaining the prospective customer’s attention and interest, 2. creating  desire  and overcoming  objections, 3. presenting  various solutions, 4. closing the sale.
Sales  promotion campaigns are usually built around a central idea. The campaign may last a day,  a week, or even several  months. It may be seasonal or associated with a business opening or anniversary, a new product, or the introduction of a new service. The opening of a new department, a new location, or a national or historic commemoration can also be the basis for a campaign.
When the theme is chosen, the campaign itself must be carefully  planned. The list that follows  outlines a number of important  campaign elements: a basic promotion idea or philosophy must be developed, promotion objectives should be drawn up, various elements of the campaign – advertising, display, and public relations should be studied, responsibilities should be assigned to employees, the program of activities should be scheduled, using a calendar and a timetable, individual promotions should  be reviewed after the campaign, critiques should be written and filed for the future reference.
Public relations. A firm’s public  relations determine its image, or popular reputation, in the general community. The nature of its public relations, good or bad,  is reflected in the community’s attitude and goodwill toward the firm. Good public  relations are cumulative net result, which is more easily  destroyed  than built. It is the responsibility of every person associated with the firm. Every act of the firm’s representatives contributes to the overall image of the firm..
Customer relations build sales independently and also  contribute to the total image of the firm. Satisfied, happy customers are the best form  of advertising  and promotion.
 Customer services can be a part of both public relations and good customer relations. Many customers want special services and seek out firms that supply them. Examples are  air-conditioned stores, night hours for shopping, credit accounts, delivery service, and lines of merchandise  not generally available.  Pricing policies are sometimes adjusted for particular  customer groups  as a part of service. Firms selling industrial products have found that the most valued customer services are on-time deliveries, conformity to specifications of products sold, and efficient accounting procedures.
Product styling and packaging are obvious aids in developing sales volume. When similar products are offered  in various styles, customers seek choices. Packaging can be an equal attraction.
Community goodwill. Every owner should be aware of the importance of the goodwill of the public to the firm’s  success. Every proposed business policy should first be analyzed in terms of its effect upon the company’s image. No firm with tarnished goodwill will be very successful in a community. Potential purchasers  stay away from such firms, sales fall, service becomes more difficult to maintain, and as a result the circle gets smaller. Failure is the ultimate result.
All the sales  promotion methods reflect a conviction that the customer is the most important part of any successful business. There can be no profit  in the absence  of sales. Efforts to keep present customers happy and to constantly attract new ones are essential to continued profits and growth.