Small Business

Promotion
Capturing the Eyes of Your
Market

Chapter 10

McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
 Learning Objectives

LO1 Understand how to assess your value

proposition
LO2 Segment and further define your target
audience
LO3 Recognize the different approaches and
methods you can use to craft and
convey your promotional message
LO4 Learn the key skills involved in personal
selling, especially closing the sale

10-2
 Learning Objectives

LO5 Recognize the major approaches to

customer relationship management
LO6 Learn how to develop a press relations
program
LO7 Learn how to develop a public relations
program

10-3
 The Basics: Crafting Your
Value Proposition
 Value proposition
– Small business owners’ unique selling
points that will be used to differentiate
their products and/ or services from
those of the competition.

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Developing a Value Proposition

10-5
 Question

The segment or segments you select

on which to concentrate your
marketing efforts is ____________.
A.Segmentation
B.Target market
C.Divisional market
D.Geographic market

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 Segmenting Your Market

 Segmentation
– process of dividing the market into
smaller portions of people who have
certain common characteristics
 Target market
– the segment or segments you select on
which to concentrate your marketing
efforts

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 Segmenting Your Market

Dividing the market can be done

several ways:
 Geographically
 Demographically
 By the benefits sought

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 Crafting Your Message

 Message should combine the

elements of your product or service’s
value proposition with the needs of
your target customer
 Need to decide the voice or tone of
you message
– i.e. humor, fear, patriotism, collegiality,
etc.

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 Crafting Your Message

 Succinct Message
– Your key point in as few and as
memorable words as possible
– effective

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 Conveying Your Message

 Promotional Mix
– how much of each message conveyance
you will use to sell your product as well
as your objective in using each one

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Promotional Techniques

Figure 10.1
10-12
 Conveying Your Message

 Advertising
– Advertising is often used to support the
corporate identity and value
propositions that are established
through public relations efforts.
– advertising outlets include newspapers,
magazines, billboards, television, and
Internet banner ads.

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 Conveying Your Message

 Sales promotion
– A form of communication that
encourages the customer to act
immediately, such as coupons, sales, or
contests.

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 Conveying Your Message

 Keyword and description tags

– Terms included in the hidden portion of a
Web page which are used by search
engines such as Yahoo! and Google to
describe your Web site and evaluate its
focus and category placement.

10-15
 Conveying Your Message

 Viral marketing
– Any electronic equivalent of
word-of-mouth advertising, in which the
advertiser’s message spreads quickly
and widely via e-mail, Web site, blogs,
and other online tools.

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The Process of Personal Selling

 Personal selling
– The process of selling your products and
service; includes prospect and evaluate,
prepare, present, close, and follow-up.

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Personal Selling

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The Process of Personal Selling

 Cognitive dissonance
– Doubt that occurs after a purchase has
been made.
– An inconsistency between experience
and belief.

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 Succeeding after the Sale

 Customer relationship
management (CRM)
– The process of tracking the customer’s
different contacts with the firm, and
using this data to help improve sales as
well as the customer’s experience.

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 The Strategies of
Market Growth

Figure 10.2

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 Strategies of CRM

 Market penetration
– A strategy whose goal is growth, based
on selling more of the firm’s product or
service to the existing customer base.
 Product expansion
– A strategy whose goal is growth, based
on selling existing customers a product
or service they have never bought
before.

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 Strategies of CRM

 Market expansion
– A strategy whose goal is growth, based
on selling in areas or to groups
previously not served by the business.
 Diversification
– A strategy whose goal is growth, based
on adding new products or services to
the firm’s existing collection of offerings.

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Steps in CRM

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 Steps in CRM

 Customer vector
– A type of CRM report which segments by
customer (or customer group) on
purchases or dates of purchase

10-25
Example of a Customer Vector
Report from a CRM Database

FIGURE 10.3
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 Handling Postsale Problems
 Appeal to the customer’s sense of fair play,
saying you want to do what is right.
 Consider offering a compromise, giving them
some (but not all) of what they seek.
 Suggest involving a third party like the Better
Business Bureau to arbitrate.
 Consider politely standing firm only when the
facts unquestionably back you up.
 Consider politely standing firm when the
demand is clearly unreasonable.

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 Building a Press Relations
Program
 Press relations
– Activities used to establish and promote
a favorable opinion by the media.
 Press release
– A written announcement intended to
draw news media attention to a specific
event.

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Basics of a Press Release

10-29
 What Is Newsworthy?

 Newsworthy events
– To garner serious attention from the
media and the public, a news story
needs to deliver certain essentials that
will hold their attention and keep your
news in their thoughts.
– should have public recognition,
importance, and interest.

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 What Is Newsworthy?

 Public recognition
– Being recognized or acknowledged by
large numbers of people, similar to
“fame.”
 Issue recognition
– A concept in public recognition which
alludes to the extent to which the public
is familiar with the issue or problem at
hand.

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 What Is Newsworthy?

 Trendiness  Proximity
– A concept in – A concept in
public recognition public recognition
which alludes to which alludes to
the fit of the topic the impact level of
to current fashion the issue being
or public interest. discussed.

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 What Is Newsworthy?

 Public importance
– (1) Things that are considered important
to large numbers of otherwise unrelated
people
– (2) things that are of civic importance,
as opposed to private or corporate
entities.

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 What Is Newsworthy?

 Power  Currency
– A concept in – A concept in
public importance public importance
which alludes to which alludes to
potential shifts in the degree to
control or which the issue is
influence. immediate in its
impact.

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 What Is Newsworthy?

 Public interest
– (1) Things that are generally considered
to be beneficial to large numbers of
people,
– (2) civic causes and benefits, as opposed
to private and corporate benefits.
– Good story, human interest, visuals,
cultural resonance

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 Building a Public Relations
Program
 Public relations
– Activities used to establish and promote
a favorable opinion by the public.
 Publicity
– Information about your company and its
activities that is disseminated to the
public in order to going their good
opinion.

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 Building a Public Relations
Program
 Sponsorships  Donations
– Paying for a local – Monetary or other
organization’s gifts to
needs in organizations or
exchange for people who are in
recognition. need.

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 Generating Publicity

 Write or provide materials:

– Exclusive articles, photos, or columns
– Produce public service announcements
– Produce your own program or short
feature for the broadcast media
– Include your products as props

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 Generating Publicity

 Conduct interviews
– Local TV talk shows or radio call-in
shows
– Professional spokesperson
– Take your message to the media on a
multicity media tour

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