Chapter 7: Promotional and Pricing Strategies
Communications involve: i) source/sender, ii) message, iii)
channel, iv) receiver
Promotion: consists of marketing communications that
inform consumers about a firm’s product and persuade
them to use it.
Promotional Mix: a blend of selling, advertising, and
promotional tools aimed at a target market.
Four Factors determining a promotional mix create awareness & cost-effective
1. Geography of market
2. Target customer profile
3. Product characteristics
4. Available budget
Advertising Practices for a small business
Advertising seeks to sell by informing, persuading, and reminding customers of the existence or superiority of a
firm’s product or service. Advertising in traditional media is on the decline while online marketing and advertising
is growing at double-digit rates.
Product advertising: make potential customers aware of a particular product or service and their need for it
Institutional advertising: conveys information about the business itself.
Forms of advertising media
Paid: television, radio, newspaper, magazine, Web banner advertisement, pop-up ads…The advertiser pays for the
space and controls the message it is sending out to consumers
Online Marketing Strategies
paid Keyword Ads
- Pay-per-click (PPC), or as “search engine marketing”, advertisers can pay search engine providers to have their
ad come up on the right side or top of the natural list of sites or top of the nature list of sites in response to
- The technique known as “search engine optimization”, or SEO, is a method of having a company’s website
com up on the first page of a search-engine search.
- Two methods: embedding keywords in all of the pages of a company’s website and linking campaigns.
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- Keywords related to the company’s name are very useful if the company has a strong brand.
Online press releases
Social media marketing
Sales Promotion Options for small firms, tools
Specialties Free merchandise
Trade show exhibits Mail in refund
Point-of-purchase displays Loyalty programs
Trade show checklist
Create a presence on the show floor
Create moving billboards
Make the booth interactive
Quality leads immediately
Personal Selling: a sales presentation delivered in a one-on-one manner; personal selling includes the activities of both the
inside salespeople of retail, wholesale, and service establishments and the outside sales representatives who call on
business customers and final consumers.
- Meeting with prospective customer
- Well-prepared sales presentation
- Ability to build rapport & goodwill
- Importantly: need great product knowledge, good sales, methodology and technique, ability to handle
objections, & confidence.
Sales activities: prospecting
Prospecting: a systematic process of continually and systematically looking for new customers
- Personal referrals: salesperson initiates customer contact through referral by another party known to the
- Impersonal referrals: information on potential new