The types of sales of promotion I will be using:
Loss leaders: is a type of reduction of prices where the business lowers price’s of some products even though they will make a loss with those products instead its for the consumers to get hooked in because they are attracted at those cheap prices and so go to that shop and will end up buying more products this is a very clever way of getting costumers and making a profit the problem is if people are only coming to the store for those products as your not guaranteed other products are being bought this is a problem as you will be making a big loss. I will be using this usually at the beginning of my new business so I get a good reputation of low prices and this will gain me costumers and lead to more profit.
Price reductions: Is a way off not only attracting costumers to the reduction but also getting rid of your old stock so you have more space for the news. This is a very good way as both the consumer and the business are winning as the business will be making a little profit and be gaining extra space in the store and the consumer will be getting a product for less. I’m going to use this type of sales promotion is when I have new stocks coming in at the beginning of the New Year usually in January.
Free samples: I will be using this as this usually takes places in my type of business (Cosmetics,fragrances). This is where I let consumers try on the products before their purchase I will be hading out free small samples of main products and this will make consumers more reassurance that our company cares of them and wants them not to waste their money but to buy what they want. I would either have samples handed out in the store or in magazines or outside. The problem with this is people might not like the samples so to solve this I’m going to research the favorite products and then make sure they are liked and hand the out. I’m going to be using this free sampling when I’ve got new or changed products that I want to bring to attention.
Merchandising: I will be using merchandising as this is very important in promotion as it promotes certain products usually films. I can be selling certain products just after a famous film with the celebrity products. The aim of this is to bring attention to the product, which increases sales and profits. This will be great for my business because they can be a lot of cosmetic and fragrances form celebrities and this can have a big impact on my business. This type of promotion will take place whenever I receive new products from merchandised films etc.
These are the main ones that I will be doing I didn’t choose the other ones as I thought that they weren’t as relevant for example I don’t believe that competitions would be what I will be interested in at the moment for my business and the others I think are less important in my opinion for my business.
The second type of sales promotion is Point of sale display. This is where the products is promoted where its sold examples id where business encourage impulse buy they do this by having products near the till which catch their eye and encourages them to buy them I will be doing this at the till where I will set up a drinks area and some light refreshments like chocolates and sweets.
The other type of sales promotion is Exhibitions where both consumer and industrial goods are promoted also there are sponsorships and corporate entertainment are often linked with major events such as sports are used with businesses to promote their image but I wont be using this as its not appropriate for such a small business as mine with little capital. There are also after sales service which won’t be much needed for my products but I will be offering guarantees for items.
The next type of Promotion is Public Relations (PR):
Public relations has one main difference to the other types of promotion this is as PR is usually free, whereas the others cost the business thousands of pounds. The purpose of PR is to improve the relation between the business and the public to be able to do this it issues press releases to publicize good points about the business, it supports any corporate advertising the business carries out. Because I have a small firm I will not be able to have my own PR department but I will be trying to do as much as I can to appeal for any funds and get a good story printed for free, This will help my reputation out a lot which will be of guidance to me for my profits. I will only be using it though when I have the chance because it’s not often that there is a big story to print and something major happening but I will try to increase the awareness of my business.
The final type of promotion is advertising:
A business will advertise their business as its one of the most important part of promotion. Advertisement is so big in our society we hear it and see and read it all the time very day for a variety of products. Because of the very positive outcome of advertising its highly skilled and involves a lot of hard work, For my business I must decided on my budget and choose what types of advertising I can offer because its impossible for me to afford a lot of advertising.
There are many reasons for and against advertisement.
Advantages Disadvantages
Even though their advantages advertising is so important for my business as it will defiantly get my business known so I have to use. There are two types of advertising
Persuasive advertising Informative advertising
I will be using persuasive advertisement so I can compete against my competitors, once that descion is made I have to decide what types of advertisement and where to place the advertisement These are the types of advertisement you can use:
Direct mail: You can pin point your target market and it’s easy to measure its effectiveness, but the problem is that its opposition to junk mail, mail shots often poorly targeted. I can use this but I don’t think am going to as I feel like target market will see it as junk and not even take notice of it which will be a waste of money and time. But I will use it when I use free sampling of new products as I believe that is more successful
Television/Cinemas: This reaches a large audience, through out the whole country. Because of the color and moving images and music etc it has an emotional impact, can target the market easily with the large range of channels. This is an excellent option for a large firm but for me a small sole trader it’s literally impossible for me to afford that amount of capital for a short advert. Even though this was considered most popular in my questionnaire but I know that I will not use this as its not practical.
Radio: Easy to target with the choice of channels, costs less then a television and is as effective, not got a wide audience like the TV does. I think I would use this but later in my business when I am well known and I might have become more then just sole trader when I can afford to put more input in advertisement. In my primary research this showed very unpopular as not one person voted for it. This clarifies that I will not be using it.
Internet: Its very positive way for me as its global coverage which has the largest chance oft targeting my audience, I can use moving images as well as written words, possible for direct to consumer and it’s become a very popular growing type of advertisement. However this can be expensive to set up also consumers may see it disturbing and in the way of what they are looking at so I ‘m not going to be using this option either.The internet option on my questionnaire found this also not to be that popular with only one vote.
Newspapers/Magazines: I think local newspapers will be most appropriate for me at the beginning where I have little capital. This good as I can target my audience depending on the variety of newspapers and I can make it very persuasive, I can add color to add visualization, the problem is the cost but I must be prepared to spend some money on advertising so I can become more known and receive more consumers, and I ill only be using this when I first start my businesses and also when I’m getting more new products that I think are going to be a great success. This proved me even more popular as it was second populist at % voting for it.
Poster/Leaflets: I will be using this too as it doesn’t cost to much money but can have a very big impact, highly visual, I can target who sees these posters and letters. They are the best for local businesses like mine. This was also quite popular so again I will be using this as % voted for it.
Billboards: Is also very visual and big impacted but will cost me more and though I can place it near roads and target the country I will not be using it until I make a bigger name for myself and more capital. I didn’t use this in my questionnaire as I knew that I will not be using it as I can’t afford it at the beginning of my opening of my business with limited
