CHAPTER 12:

PROMOTING
THE
SMALL
BUSINESS
What is promotion?
It is an activity undertaken by
successful company.
Promotion maybe defined as
activities including advertising,
personal selling, sales
promotion, public relations,
and direct marketing.
Promotion and
Customer Demand
Promotion and customer demand
are related in some ways. There
are instances when promotion
increases the total customer
demand for firms products or
services.
Types of customer
demand
1. Established demand
2. Newly created demand (also
referred to as promoted demand)
Established Demand- This
refers to purchases made by people from a
certain firm as a result of any or all of the
following:

1. Positive experience with the firms

products;
2. The convenient location of the firm; and
3. The attractive appearance of the firm.
COSTUMER DEMAND RESULT SALES
EXPOSURE OUTCOMES
Positive
Established Certain Level
Contacts with
Demand of Sales
the Firm

Promotion Newly created Certain Level

demand of Sales

Positive
Contacts with
the Firm Established plus
Higher Level of
Newly Created
Sales
plus Demand
Promotion
Newly Created
When the firm engages in
Demand
activities designed to attract
people to buy from the firm.

Sometimes referred to as
promoted demand
Methods of
Promotion
1. Advertising;
2. Personal selling;
3. Publicity;
4. Sales promotion; and
5. Word-of-mouth.
 Advertising
Any paid form of non-personal
presentation and promotion of
ideas, goods, and services by
an identified sponsor.
Types of
Advertising
1. Retail advertising- is made by various retail
stores.
2. Service advertising- is made by various
services establishments.
3. Trade advertising- is made by
manufactures to motivate wholesalers and
retailers to carry their products
Types of advertising

4. Industrial advertising- is made by

manufacturers to motivate other
manufacturers to use their products and
services.
5. Institutional advertising- is designed to
create a favorable image for a firm.
Types of Advertising
Media
1.
2.
Television;
Radio;
3. Newspaper;
4. Magazines;
5. Outdoor billboards;
6. Specialty advertising;
7. Public transportation;
8. Yellow pages;
9. Direct mail;
10. Local cable;
11. Cinema;
12. Other means such as catalogs, samples, handouts,
and the like.
Personal Selling
Method of promotion that is direct,
personal and often a face-to-face
interchange between the companys
salesperson and the consumer.

Types of
To effectively attain the sales goals,
Salespersons
the company hires salespersons .
Types of
Salesperson
Order Getter
To increase the firms sales by selling to
new customers and by increasing sales
to present customers.

Classifications:
1. Current Customer Salesperson
2. New-business Salesperson
Order Taker
To seek repeat sales from current
customers by making sure that
product quantities are there where
and when they are needed.
Classifications:
1. Inside Order Taker
2. Field Order Taker
Support Personnel
To facilitate the selling function. Their
functions include locating prospects,
educating customers, building goodwill
and providing service after sale.

Classifications:
1.Missionary Salesperson
2.Trade Salesperson
3.Technical Salesperson
The Selling Process
Selling is a process consisting of
the following major steps:
1. Prospecting and Qualifying;
2. Pre-approach;
3. Approach;
4. Presentation and Demonstration;
5. Handling objections;
6. Closing; and
7. Follow-up
Publicity
A method of promotion where news is
generated about the firm of its products
or services and appearing in print,
broadcast or electronic media and not
paid for by the firm.
TYPES OF PUBLICITY
1. News Publicity deals with events of national,
regional, or local interest.

Kinds of news publicity:

a) Spontaneous news publicity
b) Planned news publicity

2. Business features articles refers to

detailed stories about the firm or its offerings, most
often appearing in business magazines.
3. Service features articles refer to
lighter stories focusing on personal care, household
items, and recipes which find their way.

4. Finance release are targeted to appear in

the business sections of newspaper and
magazines.

5. Product release refer to new product and

product improvements and aimed at all forms of
media for publicity.
6. Pictorial release refer to illustrations or
pictures distributed to media.

7. Background editorial releases refer to

extra information given to media writers and
editors.

8. Emergency publicity refers to special

media releases regarding disasters or serious
problem.
Sales Promotion
Sales promotion is a method of promotion other than advertising,
personal selling and publicity that increase sale though temporary sales
incentives.
The major tools of sales promotion are the following:
1. point-of-purchase display;
2. premium;
3. trading stamp;
4. sampling;
5. product demonstration;
6. retailer coupon;
7. consumer contest;
8. sweepstakes;
9. rebates; and
10. trade show.
Word-of-mouth
Word-of-mouth is a method of
promotion wherein people are
encourage to tell other people
products or services they have
enjoyed.
Positive word-of-mouth attracts new
customers and retains existing ones.
If the SBO wants to reap the benefits of
positive word-of-mouth, the following must
be maintained:
1. Competent employees;
2. proper treatment of people;
3. not overcharging;
4. not using false claims in advertising;
5. keeping promises to customers;
6. having a good product or service, and
7. keeping customers happy.