CHAPTER 16Promotional Planning.ppt

CHAPTER 16Promotional Planning Looking AHEAD Describe the communication process and the factors determining a promotional mix. Explain methods of determining the appropriate level of promotional expenditure. Describe personal selling activities. Identify advertising options for a small business. Discuss the use of sales promotional tools. The Communication Process in Promotion Communication Process Components Source—the message sender Channel—the path the message travels Receiver—the recipient of the message Forms of Promotional Communication Nonpersonal—advertising Personal—personal selling Special forms—sales promotion Similarity of Personal and Small Business Communication Processes Promotional Communications Promotional Mix A blend of nonpersonal, personal, and special forms for communication techniques aimed at a target market. Makeup of the mix is determined by: Geographical nature of target market Size of promotional budget Product’s characteristics Determining the Promotional Budget “How much should a small business spend on promotion?” Allocating a percentage of sales Deciding how much can be spared Spending as much as the competition Determining what it takes to do the job Four-Step Method for Determining a Promotional Budget Comparing Alternative Promotion Expense Estimates Personal Selling in the Small Firm Personal Selling A sales presentation (promotion) delivered in a one-on-one manner. Requires: Product knowledge Well-prepared sales presentation Ability to build good will Importance of Product Knowledge Salespersons use product knowledge to: Successfully educate customers about the product’s advantages, uses, and limitations. Answer customer questions and counter customer objections. Personal selling becomes order-taking whena salesperson lacks product knowledge. The Sales Presentation: Prospecting Prospecting A systematic process of continually looking for new customers Prospecting Techniques Personal referrals Salesperson initiates customer con