promoting your small business presented by: craig elias

PROMOTING YOUR SMALL

BUSINESS

Presented by: Craig Elias

Objective

• To provide specific guidelines that will enable you to begin promoting your business as easily and as inexpensively as possible.

Agenda

• Basic promotional concepts

• Developing a promotional strategy

• Evaluation of your promotional materials

What is Promotion?

• Promotion is a means of communication between a buyer and a seller

Promotion

• What does promotion include?– everything you do to sell your product or

service

Channel of Communication

SourceSource

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****For an entrepreneur, correctly targeting a responsive audience is a process of trial and error

Types of Promotion

Advertising

PersonalSelling

HighHigh

MessageFlexibility

AudienceAudienceSizeSize

LowLow

LowLow

HighHigh

A combination of advertising,personal selling, and other

types of promotion

Decision Making Model

• Most potential buyers follows this decision making model:– Awareness– Interest– Desire– Action

• Your promotional material should reflect

these steps

The Six Steps to an Effective Promotional Strategy

Promotional Strategy’s Six Steps

To develop your promotional strategy, address these six steps:

1. Audience2. Objectives3. Promotional Methods4. Budget5. Timeframe6. Evaluate

1. Audience

Step 1

Define who your audience is.

1. Audience

• Need to choose a specific target audience and speak directly to it

• 80% of your sales normally come from 20% of yor customers– rifle approach versus shotgun approach

• What should you know about your target audience?– Selling to customer– Selling to businesses

Audience (cont.)

• How can you tap into your target audience?– Step 1: Have a database

• Collecting information for your database– Customer surveys– Integrate database with point-of-sale records

– Step 2: Design special offerings and promotions

2. Objectives

Step 2

Define your objectives.

2. Objectives

• Objectives are what you want to have happen—the end result.– What you want to achieve with each of your target

markets.– Examples could include:

• Sales to new customers– Sales per square foot, utilization, sales per week/month

• Increasing sales to current customers• Enhancing your company’s corporate image• Announcing your company’s opening

Objectives (cont.)

• Objectives should be:– be clear;– be measurable; and– have a stated timeframe.

Objectives (cont.)Objective Strategy Tactic Timeline

Be seen in the community as a leader

a. Offer free speeches on business planning.

b. Offer free consulting to a local charity

Contact Chamber of Commerce

Contact Westman Dreams for Kids

Within 1 year

Be seen as the expert in your area

a. Give seminars and workshops on business planning.

b. Write column on my expertise on a regular basis.

Contact Women’s Business organization.

Contact the Calgary Herald.

Within 2 years

Achieve sales per square foot of $200 (Retail clothing outlet)

a. Prepare flyers and distribute flyers in strategic geographic areas in the City of Calgary.

Contact Canada Post/graphic designer

Within 1 month

Objectives (cont.)Objective Strategy Tactic Timeline/Goal

Achieve a utilization rate of 80% (10-bed Hospice)

a. Do a Q & A column in the local newspaper on hospice care.

b. Offer to teach sessions on hospice care to local health care providers.

Contact local newspapers

Call the Health Region palliative care coordinator to pitch your idea

Within 2 months

Within 1 month

I will assess customer satisfaction of all customers who spend over $1,000 per year, and on average get these customers to increase their yearly total by 30%.

a. Assess customer satisfaction.

b. Reward customers who spend more than $1,000 per year

Develop and mail out a customer satisfaction survey to customers who spend over $1,000 per year.

Develop special promotional offering for these customers.

Within 6 months

I will be billable (consulting) 50% or more of the time.

a. Offer free speeches on consulting.

b. Join a national consultant association. Write articles for their newsletter.

Contact relevant organization.

Get a directory of associations, find address, call for membership, begin to develop rapport and offer your articles.

Within 3 months.

3. Promotional Methods

Contract out Creative Services

• Should you produce your own brochures, flyers, and promotional materials?– Why you might want to consider contracting out:

• lack of marketing/communications staff• lack of time• lack of expertise• it can be cost effective

– Mimicry – create perception of stability and reliability through your image

• Use smoke and mirrors to appear that you’re bigger than you are

– www.digitalavatar.ca

Dos and Don’ts of Creative Advertising

• Dos• Emphasize your main

point from the start• Focus on the unique

qualities, position of the product

• Be creative and different• Use short sentences• Keep logo and branding

front and center

• Don’ts• Don’t inundate your

audience with too much information

• Don’t offend your audience

• Avoid clichés

3. Promotional Methods

• Promotional methods you will employ to accomplish your strategy– Choose your media based on how they

achieve your objectives

i) Personal Selling

The most important element of promotion

Personal selling (face-to-face)• This is how you will make most of your sales

– 82% of Inc. 500 CEOs surveyed indicated that they were the main salesperson – sold directly

• Details/Guidelines• You have the zeal and passion for your product or service• Requires resilience, self-control, and perceptiveness• Not for everyone

– 20% of salespeople make 80% of sales– 55% struggle with personal selling

• Need to get this right or won’t make sales • (razor-sharp selling skills)

– Prospecting, practicing, pitching

Networking

• Networking can help you establish contacts which can lead to business relationships and leads

• Details/Guidelines• Join Chamber of Commerce/other business associations

or professional organizations• Join professional groups, service clubs

(Kinsmen/Rotary), charitable organizations (www.volunteercalgary.ab.ca), sporting clubs

• Check out The Business Link at http://www.cbsc.org/alberta for a list of networking groups in Calgary.– Search word: Networking

Networking Secrets

• Motive

• Have a target

• Remember names

• Enter and exit conversations• Seven Second Sale (Roger Grant)

Seven Second Sale

Help small companies

outsell big companies

Networking Secrets

• Motive

• Have a target

• Remember names

• Enter and exit conversations• Seven Second Sale (Roger Grant)

• Have something in your back pocket

• DON’T MAKE THE #1 MISTAKE

ii) Publicity and Public Relations

Free Promotion

Public/Community Relations

• Useful if you want to develop relationships with the people in the community– develops awareness and goodwill

• Details/Guidelines• Sponsorship of local teams, involvement in a local

charity, awards, grants, etc.– there must be a measurable payback for any sponsorship

activity• Client/public feedback, media coverage, staff involvement, and

referrals

• Ensure you’re getting exposure for your • business

Giving Seminars/Lectures

• Giving seminars/lectures is useful if you have expertise that people want– you need to have credibility, experience and success

• Details/Guidelines• Can be through an association (regular meetings

or at an annual conference)– invitation letter

• No hard sell – must provide relevant information• Ask attendees to fill out a seminar • evaluation form

TV/Radio

• Radio/Television appearances are useful if you have expertise that people want– need to have credibility, experience, and success

• Details/Guidelines• Need to be a good speaker and be able to think

on your feet• Need to prepare in advance—know what’s

expected of you• You’re providing information, not selling

iii) Advertising

Use paid advertising to communicate with your audience

Yellow Pages

• A Yellow Pages ad is a basic requirement• Details/Guidelines• Deadline was May 21, 2004• Should track leads to determine effectiveness• 91% of people use the Yellow Pages within a 12 months period

– Basic ad – free with phone line – Bold ad – $15/month– Half inch

• black print is $28/month• colour is $42/month

– Display ad – 4 X 2½ inch• black print is $218/month• colour is $380/month

Yellow Pages Ad (cont.)

• What is the most critical part of your ad?– Its Headline

• “On average, five times as many people read the headlines as read the body copy. It follows that unless your headline sells your product, you have wasted 90% of your money.”

David Ogilvy

Newspaper

• Use newspaper ads to reach a mass audience with a fairly generic message

• Details/Guidelines• Position is very important• If possible, request an “up front” or a particular

section of the paper• Can use spot colour to stand out• Go to:

www.canada.com/calgary/calgaryherald/info/advertising.htm

Outdoor Advertising

• What does it include?• Billboards• Transit advertising• Bus shelters/building

Outdoor Advertising (cont.)• Transit Benches

– calgaryoutdoor.com• 2,200 benches

• 1 bench costs $85 (front face) for a four week period. Interior Transit

Cards– pattisonoutdoor.com

– 700 faces costs $7,720 for a four week period.

Outdoor Advertising (cont.)

• Billboard• pattisonoutdoor.com

– It costs $1,515 to display one vertical billboard in Calgary for 4 weeks.

– 11 faces cost $13,695 for 4 weeks (25 Daily GRP’s)

ii) Direct mail advertisingBypass the media – communicate directly with

potential customers

Direct Mail

• A direct mail strategy is useful when you know who your prospects are and have specific information – name, address, profile

• Details/Guidelines• At minimum, you need a covering letter,

an offer (reason to respond), a reply envelope, a reply card

• Your costs are: list rental, postage (outgoing and return), development and printing of the package

Flyers• Flyers can reach specific

areas of the city or groups of people– provide a more detailed

message

• Details/Guidelines• Can access business or

residential addresses• Need to invest in

developing creative layout

Newsletters• Newsletters are great when you have an

established client base• They can also be used as a prospecting

vehicle• Details/Guidelines• Should provide valuable information, but also

educate clients/prospects on your services• Use to build relationships with customers• The more targeted, the better

Events and Tradeshows• Tradeshows can generate leads and develop

awareness of your business• Details/Guidelines• Costs associated with shows (cost/benefit

analysis)• Need to have an eye catching booth/display

and lots of literature• Have a draw to acquire names/addresses• Establish objectives prior to tradeshow

Events and Tradeshows (cont.)

Go to: http://www.alberta- canada.com/statpub/busdev.cfm

Web site

• Use a Web site when you have a target market that is active on the Internet and shops there

• Details/Guidelines• Brochure site is ideal for most startups• Make sure that people accessing your site can

e-mail you• Keep your web site current (update it regularly)

to give people a reason to come back• Keep it simple and logical

Others

• Fax• Collateral materials• Press releases

iv) Sales promotion

Sales Promotion• Sales promotion can generate immediate traffic and sales• Need to have an established customer base or awareness to work• Effective for a new company• Details/Guidelines• Examples could include:

– Coupons– Samples– Contests– Trade show offerings– Specialty advertising (gifts for customers – pens, scratch pads, key

chains)

• Should be used infrequently so as not to “train” customers• Need to carefully monitor effect on costs, total sales

Step 3

• They should be:– logical– based on an analysis of your target market and your

objectives• Why did you choose them? Justify your selections.

Justify the promotional methods that you chose.

4. Budget

Step 4

Develop a realistic budget.

4. Budget• How much should your budget be?• $ you spend must return enough sales/profits to justify cost• Typical approaches

– Company goals• Examine your objectives/tactics and decide how much money you’ll

need– Think through the marketing plan– Estimate expenses

– Percentage of sales• Base budget on a percentage of current/projected sales• Fails to consider your company’s marketing goals

– Industry averages• Fails to consider your company’s marketing goals

– Forecasting• Use this technique to verify if your marketing budget makes sense

Budget (cont.)Jan. Feb. Mar. Total

Flyers Print/distribute 2,000 flyers

$400

Print/distribute 1,500 flyers

$300

$700

Business cards

Print 500 cards

$200

$200

Networking Attend relevant networking function

$75

$75

5. Time Frame

Step 5

Develop a realistic timeframe.

5. Timeframe

Deadlines are necessary to get things done.

Jan. Feb. Mar.

Flyers Print/distribute 2,000 flyers

Print/distribute 1,500 flyers

Business cards

Print 500 cards

Networking Attend relevant networking function

6. Evaluate

Step 6

• Is your promotional plan working?– Determine if objectives are being met to

assess effectiveness of plan.

Evaluate your promotional plan.

Activity

• Select one of your promotional materials (i.e. flyer, business card, poster, brochure, etc.) that you would like to have evaluated.

• In groups of two, discuss and evaluate each group member’s promotion piece.– What are the positive aspects of the promo piece?– What are the aspects of the promo piece that could be

changed/enhanced?– How effective is the promo piece?

• get attention• call to action• visual