Effective Promotion Strategies for Businesses
Promotion – It is a form of communication through which the seller transmits information to a potential buyer about a product or the company that manufactures or sells it. However, promotion does not end there. Once informed, the potential buyer must be convinced about the benefits of using the product and, finally, remember to buy from that company and not others. The main forms of promotion are:
- Advertising: Transmission components of a message through the media.
- Sales Promotion: Commercial actions to stimulate immediate sales.
- Personal Selling: Through direct contact, the aim is to inform, persuade, and facilitate the purchase by the customer.
- Public Relations: All activities of the company to create, enhance, or maintain the corporate image.
- Merchandising: A set of measures that help to promote the product at the point of sale.
Distribution – The assembly processes leading to the product being available for purchase by the customer. This includes everything from storage to collection through transport and sale. Distribution refers to the channels or means used to reach the consumer, which can be divided into two areas: wholesale or retail. Other forms of distribution, such as franchising, direct marketing, or vending machines, have gained popularity.
Direct Marketing is a set of procedures for distribution using direct sales propositions for specific groups of customers.
Advertising Messages
Advertising includes all communication activities that aim to make the product known, stimulate sales, create a company image, foster customer loyalty, or simply remind the client that the product is still on the market. Choosing the most suitable advertising medium depends on the characteristics of our client type, which we identify through segmentation. However, you must first create the advertisement. To be effective, it must meet these requirements:
- Capturing Attention: It need not be spectacular, but should focus on some aspect of concern to the client type or that sparks their interest.
- Clarity: It should be clear and concise.
- Informative: The message should inform about benefits or advantages.
- Credibility: If not credible, it can produce the opposite effect desired.
- Persuasiveness: The proposal must convince the recipient of the message.
- Memorability: The longer the message is remembered, the more likely it is to achieve sales and customer loyalty.
Advertising Mediums
| Average | Advantage | Disadvantages |
|---|---|---|
| Daily Press | Geographic Selectivity Flexible Low Cost | Limited Print Quality Low Retention of the Message |
| Magazines | Geographic, Social, and Economic Selectivity | High Cost Limited Reach |
| Direct Mail | Customization Offers High Retention | No Visual Aid Low Acceptance |
| Radio | Program Segmentation Flexible Low Cost | No Visual Aid Low Retention of the Message |
| Phone | Allows Interactivity Selective | Costly No Visual Language Very Intrusive |
| Internet | Very Low Cost Upgradeable | No Public Selection |
| Outdoor Advertising | High Repetition Frequency Low Cost | Location Limited Message Brevity |
| Mailshot | Very Appropriate for Local Action Low Cost | No Public Selection |
| Television | Immediate Response Segmentation by Programs or Slots Integrates All Visual Elements Allows Demonstrations | High Cost Little Flexibility Low Retention of the Message |
Merchandising in Retail Trade
Marketing in retail is different from that of manufacturers and is carried out in two ways: conducting research, designing, and launching new products. The scope of their actions is limited to the zone of influence of their establishments.
In this context, marketing activities known as merchandising are very important:
- Signs, Signage, and Shop Windows: They aim to attract the buyer and are usually more varied.
- Store Atmosphere: The environment created by lighting, decoration, music, or colors affects consumer attitudes and behavior.
- Layout and Presentation of the Product: The management of space is increasingly important.
- Sales Promotion: Stimulates immediate sales.
Key Elements of Marketing
| Product | Price | Promotion | Distribution |
|---|---|---|---|
| Goods to be Sold | Price Levels | Sales Promotion | Business Location |
| Assortment | Credit Cards | Layout and Presentation of Products | |
| Services | Terms of Payment | Store Atmosphere | |
| Signs and Storefronts |
Personal Selling
When we try to impress someone, we aim to communicate clearly about our individual strengths, often modifying the image we project to accommodate the expectations of our interlocutor.
Personal selling is exactly the same but with a product and a customer; it aims to transmit the benefits of a product based on what we think the customer needs.
Whether selling products or not, being a good communicator or seller is an ability to keep in mind when selling your candidacy for a job or presenting your business plan to banks and investors.
The basic features that characterize a good communicator are:
- Listening: We cannot know what our partner wants or expects if we do not let them speak.
- Empathy: Learning to understand the customer’s point of view helps to anticipate their needs.
- Confidence: Knowing what you offer and understanding the competition’s alternatives.
- Constructive Communication: Talk positively and provide customer solutions.
- Ethics: Do not cheat. Your image or that of the company is more valuable than a sale. If it is demonstrated that you are trustworthy, your customers will speak well of you and you will soon have more.
- Preparation: Not everyone is a customer. You have to segment the market and seek as much information as possible about the person or company you are going to see. After making contact, most days are submitted by letter and then followed up with a call to arrange a personal interview.
Like a company, a good salesperson segments their market, identifying the clients that best match the product or service offered.
The Knot: This is the critical phase. Show the product and arguments clearly. Asking and listening will help you describe what the customer needs. Like a chess game, you should try to anticipate objections to provide the best proposal.
Outcome: There comes a time when you only need to confirm some details, but the process does not end with the sale. Maintaining contact fosters customer loyalty while opening doors to new customers.
Sales Process Steps
- Prospecting
- Preparation
- Presentation
- Argumentation
- Handling Objections
- Closing
- After-Sales Contact
Franchising
Many times, it is not the right time to delve into what is related to our studies. However, it may be the right time to undertake some kind of business that we are completely foreign to.
Today, it is not a problem to venture into areas remote from our experience or academic training through franchising, a form of trade that is gaining adherents every day. In this business relationship, a parent company (franchisor) grants small independent dealers (franchisees) the right to operate a business idea according to the franchisor’s criteria in exchange for a fee. This right includes the trade name, brand products, and know-how. The franchisee is often responsible for local advertising.