presentation on promotion

GROUP NINE(9)

PRESENTATION ON EFFECTIVE

PROMOTIONAL TOOLS FOR SMALL

AND MEDIUM SCALE ENTERPRISES

INTRODUCTION

• Small and medium enterprises play a major role in both the developing

and developed world. They are regarded as the engine of economic

growth globally.

• Presently in Nigeria, SMEs assist in promoting the growth of the

country’s economy, hence all the levels of government at different

times have policies which promote the growth and sustenance of SMEs.

INTRODUCTION (CONTD)• The body in charge of small and medium scale enterprises in Nigeria is

SMEDAN.

• The Small and Medium Enterprises Development Agency of Nigeria

(SMEDAN) was established by the SMEDAN Act of 2003 to promote the

development of the MSME sector of the Nigeria Economy.

• The Agency positions itself as a One Stop Shop for MSME Development.

Micro Enterprises are included in the clientele of the Agency since they

form the bedrock for SME's.

DEFINITION OF SMALL AND MEDIUM SCALE ENTERPRISES.

• There is no universal definition of small business. The technical definition of

SMEs varies from country to country and industry to industry, depending on

the size of the economy.

• The Central Bank of Nigeria defines small and medium enterprises in Nigeria

according to asset base and number of staff employed.

• The criteria are an asset base between N5 million and N500 million, and a staff

strength between 20 and 300 employees.

DEFINITION OF SMALL AND MEDIUM SCALE ENTERPRISES (CONTD)

• The Central Bank of Nigeria defines small and medium

enterprises in Nigeria according to asset base and number of

staff employed.

• The criteria are an asset base between N5 million and N500

million, and a staff strength between 20 and 300 employees.

DEFINITION OF SMALL AND MEDIUM SCALE ENTERPRISES (CONTD)

• According to European commission (2003), Small and medium scale enterprises

are firms with fewer than 250 employees and with a turnover of less than

50million euro or a balance sheet total of less than 43 million euro.

• National council for industry 2003 defined SME in Nigeria as an enterprises with

a maximum investment of 200million naira excluding land and working capital

and with the number of staff employed not less than 10 and not more than 300.

PROMOTIONAL TOOLS

• The promotional tools (or promotion-mix) is a term used to describe the set of tools that a business can use to communicate effectively the benefits of its products or services to its customers. The main dimensions of promotional mix are: Advertising, Personal Selling, Sales Promotion, Direct marketing and Public Relation.

FOCUS AREA

• Zapphaire Events is an Event Consultancy, Marketing, Planning and Management Company.

• Mrs. Funke Bucknor-Obruthe, founded Zapphaire Events in 2003. With staff strength of over 10 Event coordinators and over 200 liaison staff.

• At Zapphaire Events, the emphasis is on making each event unique, distinct and excellent.

Zapphaire events decoration

SMEs AND PROMOTIONAL TOOLS

• Various factors facilitate the development and expansion of

the SME sector and the ability of the entrepreneurs to ensure

that the market is educated about the existence of their product

or service, its quality, attributes, benefits and efficacy and to

achieve this, the entrepreneur (manager) needs to use an

effective promotion mix.

SMEs AND PROMOTIONAL TOOLS (contd)

• Promotion tools refers to all strategies, tactics, and activities

involved in getting the desired marketing messages to intended

target markets, regardless of the media use.

• Having an effective promotion tools adds value to the product

of the company as customers have confidence in their

purchases.

ELEMENTS OF PROMOTION TOOLS• Advertising

• Zapphaire events employ the use of catalogues,

brochures, print ads, banner ads, motion pictures, web

pages as well as other social media platforms such as

facebook, twitter, instagram, etc to inform the public

about their services.

Advertising medium used by zapphaire on their instagram page

ELEMENTS OF PROMOTION TOOLS

• Personal Selling• Zapphaire has been known to engage students

of tertiary institutions notably the University of Lagos (UNILAG) as volunteers to help promote and inform prospective client about their services.


• Sales Promotion• Zapphaire events at their growth stage

engaged in trade shows and exhibitions to stimulate demand. Currently they make use of discounts majorly.


• Publicity• Publicity is information about a firm's

products and services carried by a third party in an indirect way.


• Public Relations/Corporate Image Campaigns• Zapphaires events has been known to use

blogs (e.g linda Ikeji, bellanaija and the likes) and blackberry messanger (bbm) to send broadcast messages to their customers and prospective customers about new services. However, public relation is a bigger and sustained activity than publicity


• Direct Marketing• Zapphaire events make use of catalogues,

online display ads (on their site- www.zapphaire.com/).

http://www.zapphaire.com/

EFFECTIVE PROMOTIONAL TOOLS FOR SMEs

• Ogechukwu and Latinwo (2010), noted that lack of competence and appreciation for promotion and lack of understanding the need for, and the manner of application of the marketing concept has greatly affected the growth of SMEs.

• Most of the small business players think promotion is for large businesses, which do it because they are big, whereas the reverse is true.


• Promotional tools as listed above are fixed i.e. they don’t change, however in order for SMEs to effectively utilize them; they must engage in an audit of their promotion plan.


• Auditing your promotion plan highlights areas of strengths and weaknesses for you to enhance your plan to achieve greater results and in order to do that, the following questions should be asked:

PROMOTIONAL PLANS

• WHAT ARE THE OBJECTIVES OF MY PROMOTION PLAN AND ARE THESE OBJECTIVES ALIGNED WITH THE MARKETING OBJECTIVES OF MY COMPANY?

• DO I HAVE THE RIGHT PROMOTION TOOLS TO REACH MY TARGET CUSTOMERS?

• AM I REACHING OUT TO MY TARGET CUSTOMERS EFFECTIVELY?

PROMOTIONAL PLANS(contd)• HOW DO I MEASURE THE RESULTS OF MY

PROMOTION PLAN TO ENHANCE IT FURTHER?

• WEB ANALYTICS

IMPORTANCE OF PROMOTIONAL TOOLS TO SMEs

• Promotion is critical in small business enterprises, it ensures the customer attains information and ideas key to the customer’s decision about the product/service.

• The following are the importance's of promotional tools to small and medium scale enterprises;

IMPORTANCE OF PROMOTIONAL TOOLS TO SMEs

• Promotion Leads to Conviction and Purchase of a Product (Cognitive Aspect of Behavior).

• Promotion Ultimately Leads to Business Growth.

• Promotion Tools Ensure the Small Business Remains Competitive and Successful.

CRITIQUE AGAINST EFFECTIVENESS OF PROMOTION TOOL

• Not Every Promotional Activity Results In Positive Outcomes.

• Promotion can be omitted from a marketing mix without much harm.

• Promotion on its own cannot be deemed critical for a small business.

CRITIQUE AGAINST EFFECTIVENESS OF PROMOTION TOOL(CONTD)

• Small businesses treat promotion tools as a collection of isolated tools and activities such as brochure and video distribution, advertising, and so forth, instead of being treated as an integrated system and as such become ineffective.

•

presentation on promotion

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