Tuesday, 5 March 2013

Starting a business – advertising and promotions using traditional and social media

Promotion refers to the methods you use to communicate your product(s) and/or service(s) to your customers, target market, and the general public.

Typical promotion strategies include:
  • Advertising
  • Selling
  • Sales promotion
  • Public relations
  • Social media (which can incorporate elements of all of the above)
In today’s post, I’ll cover:
  • How to select the best mix of promotion strategies
  • Examples of and key considerations in implementing each type of strategy
  • Legal precautions
Selecting a Mix of Promotion Strategies

As part of selecting your promotion strategies, it is essential to:
  • Understand your target market – different target markets are likely to have a preference for different types of promotions (e.g., younger people may be more in tune with social media)
  • Ascertain which promotion strategies align best to the features of your brand and value proposition you want to communicate (e.g., you would not want to market luxury goods on a battler TV program)
  • Calculate the relative cost to reach a single member of your target market under different promotion strategies (i.e., the cost of the promotion, divided by the total reach of the promotion vehicle, times the percentage of the total reach that represents your target market)
  • Select the mix of promotion strategies that will generate the most effective outcomes at the lowest cost per member of your target market successfully reached