The Promotional Strategy

1. The Promotional Strategy Budgeting & Implementing Promotional Plans Section 12.2

2. Budgeting & Implementing Promotional Plans Budgeting for Promotion • Consider the following: • Costs • Sales promotion items are unique and need to be specifically prepared for the type of promotion • Can review the Standard Rate & Data Service information • http://www.bgsu.edu/downloads/lib/file41513.pdf

3. Budgeting & Implementing Promotional Plans • Compare Industry Averages • Industry average is the standard used to compare costs • Make Final Adjustments • Compare your estimate and the information you researched. If the difference is small, you have a realistic promotional budget.

4. Budgeting & Implementing Promotional Plans Carrying Out Your Plans • Doing it yourself – if your budget is limited • Use the basic media formats • Print • Radio • Television • Internet • Get help – by contacting advertising departments of the media you have selected to assist you in promoting your business or product

5. Budgeting & Implementing Promotional Plans • Manufacturers & Suppliers • Cooperative advertising – an arrangement in which advertising costs are divided between two or more parties. Manufacturers may offer programs to their wholesalers or retailers as a means of encouraging those parties to advertise the product.

6. Budgeting & Implementing Promotional Plans • Agencies • Advertising agency – company that acts as intermediary between a business and the media to communicate a message to the target market. • There is a substantial fee

7. Budgeting & Implementing Promotional Plans Making Possible Promotion Changes • Adjusting Your Advertising • Advertising is expensive. Therefore, consider a consumer pretest. It is a procedure in which a panel of consumers evaluate an ad before it runs.

8. Budgeting & Implementing Promotional Plans • Consider post-evaluation questions that rate the following: • Success in reaching the target market? • Sources of the ad effective? • Customer motivation to buy? • Appropriate message? • Media selection reach target market • Ad accomplish the pre-determined objectives? • Budget acceptable?

9. Budgeting & Implementing Promotional Plans • Generate Publicity • Sponsorships, leadership roles, or service roles • Promote sales • May need to use additional sales promotions • Displays, premiums, sweepstakes, contest, rebates, etc. • These can quickly be put into place. • Revising the Promotion Strategy • Conduct formal review of promotional strategy on a regular basis. Consider future sales objectives and market shifts.