Promoting the small

business
What is promoting?
 Itis not surprising for someone to find out
that promotion is an activity undertaken by
successful companies, in using promotion as
a tool, firms differ on the intensity of usage.
Some firms use it extensively, while others
only superficially.
Promotion Defined
 Promotion maybe defined as activities,
including advertising, personal selling, sales
promotions, public relations, and direct
marketing, used by SBOs to persuade
prospective customers to by the company's
products or services.
Promotion and Customer Demand
 Its are related in some ways. There are
instances when promotion increases the
total customer demand for the firms
products or services.
 A little promotion effort brings large increase

in customer demand, promotion does little to

improve the company's total revenues.
TYPES OF CUSTOMERS DEMAND
1. Establish demand
 This to purchases made by people from a
certain firm as a result of any or all the
following:
1. Positive experience with the firm’s
products;
2. The convenient location of the firm; and
3. The attractive appearance of the firm.
CUSOMER
EXPOSURE DEMAND RESULT SALES OUTCOME
Positive
Contacts Established Certain Level
with the Demand of Sales
Firm
Newly
Certain Level
Promotion Created
of Sales
Demand
Positive Established
Contacts plus Newly Higher Level
with the Created of Sales
Firm Demand

Promotion
 2. Newly Created Demand

 When the firm engages in activities

designed to attract people to buy from the
firm, the resulting demand is called newly
created demand. This is also sometimes
referred to as “promoted demand”.
 Successful promotional activities made by
some firms are able to create new demand.
Methods of Promotion

Promoting the small business maybe

undertaken by using any or all of the
following methods:
1. Advertising;
2. Personal selling;
3. Publicity;
4. Sales promotion; and
5. Word-of-mouth.
Advertising
 Is
any paid form of non personal
presentation and promotion of ideas, goods,
and services by an identified sponsor. The
great number of product or service
endorsements we see, hear, or read on
television, newspapers, or radio are
advertising efforts designed to motivate
prospective costumers to patronize certain
products, services, or companies.
Types of Advertising
1. Retail advertising - is made by various retail
stores such as grocery stores and bakeries
to attract costumers.

2. Service advertising – is made by various

service establishments such as
transportation, recreation, and insurance.
3. Trade advertising - is made by
manufacturers to motivate wholesalers and
retailers to carry their products.

4. Industrial advertising – is made by

manufacturers to motivate other
manufactures to use their products and
services.

5. Institutional advertising – is designed to

create a favorable image for a firm.
Types of advertising media
1. Television
2. Radio
3. Newspapers
4. Magazines
5. Outdoor billboards
6. Specialty advertising (distribution of items
such as pencils, calendars, shopping bags,
wall clocks, and others).
7. Public transportation
8. Yellow pages
9. Direct mail
10. Local cable TV
11. Cinema (movie houses) and
12. Other means such as catalogs, samples,
handouts, and the like.
Television
 Isa medium that is expensive but it has wide
area of coverage, mostly nationwide.
 Local television networks are now able to air

local programs In foreign countries where

substantial numbers of Filipinos are residing.
SBO find television as inappropriate for their
needs. Recent developments shows that
television can be useful means to advertise
the products and services of small business.