Advertising, Promotion and Distribution
Advertising, Promotion and Distribution
The difference between advertising and promotion is that advertising is easier and more effective once you identify your customers and determine market potential. This will help you to determine when, where, what and how to advertise. Advertising lets prospective customers (target market) know about your product and makes them want to buy from you. Effective advertising gets the right message to the right audience at the right time plus is measurable so you can determine if it is increasing sales. It creates a business image in the customer’s mind, increases customer information, about the home business and attracts customers.
Choose forms of advertising and the distribution method by their appropriateness to your business. Remember to use a mix of advertising methods. Experts say to not spend your entire advertising budget on one type of media. Take advantage of every opportunity to promote your business. Promotion can be done through news stories of your grand opening or local radio news programs.
Computer marketing. The newest form of advertising and marketing is on-line. It is estimated that over $1 trillion worth of commerce will be done over the Internet by the year 2002, and that most of the products sold will be by entrepreneurs. Advertising can be done for little cost on local bulletin boards and community pages, to sizable monthly fees for sophisticated marketing services. To sell on-line you will need to establish an attractive web page with quality pictures and exact descriptions of your products. You will also need to be ready to accept credit card orders. An advantage to marketing this way will be your access to a much larger market.
Word of mouth. Word-of-mouth advertising can be a powerful medium for a home based business opportunity in the local area. It is sincere, believable and unsolicited. It is also uncontrollable, so you will want to make sure that it is positive advertising. It is largely up to you to make sure that your product and the experience your customers tell others about is the kind of advertising you want. Be professional and prompt, meet deadlines, keep appointments, and do not accept more work than you can deliver. These good business practices and friendly hospitality will enhance your business and make people want to come back. It takes time to build a reputation.
Brochures/Hand-Out Flyers. A brochure or flyer can be small, inexpensive and attractive and is an excellent method to advertise your business. Get advice from a printer or hire a graphic designer to help with the layout of pictures, text and lettering. Do not invest money in these items if you did not consider how either will be used or who it will be used for and it is constructed in such a way that it will be opened, read and responded to. They have many uses but are wasted if not well planned.
Direct mail. Mailing brochures or letters to businesses or people likely to become customers may be helpful when you first open your business. Mailing again at regular intervals throughout the year also may help but you must keep an up-to-date mailing list. Direct mail is most effectively used on clients within a 50 mile radius of your business if it is only used to advertise and not for orders. If orders are taken, distance is no object. It adds a personal touch as a direct communication between you and your customer. Mailing can be expensive and should be weighed with the other options.
Bulletin boards. Post professional looking brochures, flyers or business cards on public bulletin boards in restaurants, grocery stores, laundromats, apartment complexes, schools or anywhere visible to your target market. It is common courtesy to ask permission to post. Some locations specify where posters can be used or may not permit their use.
Newspapers. Contact the local editors and tell them about your new service or product. An editor may want to do a feature story, especially about your grand opening. Getting an article may be easier if you can tie into the activities of a charitable organization, a benevolent group or a community activity. Include a black and white picture and send along a news release. An article like this is promotion and not advertising, but may be very effective.
Newspaper advertising should be done on a consistent basis. People need to see your ad several times before it will stick in their minds. Ask to have your ad placed in the same place each week and preferably on a page that is highly read. Placement does make a significant difference in whether or not an ad is noticed. Color and size also make a difference but do cost more.
Classified ads are usually inexpensive and appropriate for a small business. Run ads in local newspapers and shoppers’ guides in your community.
Shows and displays. Depending on your type of business, it may be appropriate to display some of your work in a public library or bank along with your business cards for people to take. You can also use road signs.
Other businesses. You may want to advertise in a business that is complementary to yours. For example, a fabric store for alterations or gourmet food store for cooking classes. This type of advertising benefits both businesses.
Yellow pages. Check with the phone company for the time of printing for the next book. Be sure to get your business name in the white pages and consider a yellow page ad. A listing in the yellow pages can be helpful but may have a charge, so check with your local phone company. Always consider your customer. Would a potential customer consult the yellow pages looking for your type of product or service?
Local radio and TV. Many radio stations have local talk shows. Call the directors and see if they are interested in discussing your new business. Radio ads give you the flexibility to choose the audience that will hear your advertisement. This can be done by choosing the station and time of day the ad is broadcast. The radio sales agent can help you to design your ad to meet your goals.
Television ads can be effective but are very expensive to produce and run. Local cable companies may provide low cost space on their cable access page. Distribution can also be accomplished via television. Shows like QVC and other home shopping shows are popular and effective, but you must have a significant supply on hand that can be shipped immediately. Infomercials are also gaining in popularity but are very expensive to produce and air.
Specialties. You may want to offer matchbooks, pens, calendars, decals, balloons or other tokens of appreciation for doing business. Many of these items have long-term use and make good seasonal gifts. You could print stickers or labels to attach to every product. However, labels may be expensive. Weigh the cost and the advantages of the items depending on your particular business.
Telemarketing. Telemarketing is a sales approach that is done entirely by the phone. It may be selling to customers who call or calling potential customers.
Selling on Consignment. You may choose to sell on consignment, where the retail store displays your products, advertises and sells them for you. For this service, they charge a flat fee of 30 to 50 percent of the selling price. The store generally pays its consignors once a month for merchandise sold. A consignment store should reflect a neat and friendly yet businesslike appearance. Other merchandise in the store should be similar in quality to yours. The store owner should be able to suggest realistic selling prices for your products.
Since you own the products until they are sold, the store is not responsible for theft or damage. Another disadvantage is that your money is tied up in the merchandise until it is sold. It’s in your inventory, not the store’s. If an item does not sell, it may be returned to you in less than salable condition or be out of date. Inspect written agreements carefully. Make sure to include all of the details you find necessary to protect your investment, including length of shelf time.
Chamber of Commerce. Joining the local chamber of commerce and other professional organizations is a good opportunity to make valuable contacts and participate in community activities. It also helps makes your business visible.
Additional ideas and information can be obtained from the following:
Read magazines, trade journals and observe competitor ads in newspapers.
Talk with public relations people and others who promote products and services to find out the best ways to advertise your business.
Attend trade shows. The wholesalers and distributors have excellent ideas on what they would do if they were in your shoes. If you are wholesaling, visit with your suppliers. Gain contacts to meet with others who are in a business similar to yours. If you are not in their market or potential market, many will be glad to share their expertise.
Consult people in the franchise business or in unrelated franchises if you are considering this form of business. Determine how they reach their clientele and learn their repeat sales techniques and the preferences of those customers.
Depending on the suitability of your business, don’t overlook parades, mall shows, gallery shows, street fairs, summer festivals and county fairs.
Plan your advertising based on a set budget. This can be determined by spending:
The same amount as last year.
What the competition does.
A percentage of your sales.
To meet your objectives (example: increase sales by 10 percent).
Regular, steady, targeted advertising attracts more customers than splashy, appeal-to-no-one advertisements. Zero in on your specific target audience with cost-effective advertising. Plan an appropriate advertising theme using the name of your business and featuring a logo (if you have one). People tend to remember and trade where there are catchy (not overly cute) names, slogans and logos.
