How do I promote my value-added product?

Promotion is defined as the act of furthering the growth or development of something and includes activities to prompt or entice customers. The role of promotion is to fill the customer value of communication. Potential buyers need to know that a certain product or service is available and may meet their needs or desires.

Several options exist for promotional strategies including paid-advertising, publicity, sampling, discounting and word of mouth referrals. Each of these promotional strategies has different advantages and disadvantages that should be considered. An effective promotional strategy will most likely include a combination of several of these options.

Paid advertising

Paid advertising is the strategy that is probably first thought of when discussing marketing. Advertising is done to call attention to a product or service. It emphasizes desirable qualities so as to arouse a desire to buy a product or patronize a business. Advertising must be purchased and can be expensive.

You can advertise through many types of media including newspapers, radio, magazines, television, direct mail, point of sale, outdoor (signage and billboards) and the Internet. It is important to consider the advantages and disadvantages of each media type and match the type you use to your target audience.

Publicity

Publicity is non-paid communication about a company or product, although it often requires an investment in time and materials. Publicity is beneficial because it is perceived by consumers as being objective and credible. It is also relatively inexpensive. The major disadvantage of publicity is the lack of control you have over what actually appears in the media.

While at times news agencies may contact you to do a story on your enterprise, you can seek out publicity as well using several methods.

Sampling

Sampling includes providing a free trial of a product or service to customers or potential customers. Sampling can be very effective, especially when selling food products. Although sampling can be expensive upfront, its major advantage is that customers get to try the product without financial risk.

Discounting

The promotional strategy of discounting may be accomplished through coupons, quantity discounts or punch cards. Discounting may help attract price-sensitive customers or entice customers to try your operation for the first time. Discounting can also help you track the effectiveness of paid-advertising if you include a coupon in advertisements. Disadvantages to discounting include difficulty in estimating coupon usage, potential expense in producing and distributing coupons, and profit lost on sales that would have occurred without a coupon.

Word-of-Mouth Referrals

Word-of-mouth referrals are the passing information by verbal means, especially through recommendations in an informal, person-to-person manner. Word-of mouth-referrals can be effective but should not be relied upon as a sole method of promotion, especially in the early years of a business.

It pays however, to work toward positive word-of-mouth referrals. A satisfied customer will tell four or five others about a pleasant experience, while an unsatisfied customer will tell seven to thirteen others. Satisfied customers are also more likely to return, which also saves on the financial bottom line as it costs three to five times more to replace than to keep a customer.

A single promotional strategy which is effective for every enterprise does not exist. Promotion strategies must be developed for your particular situation and target audience. There are, however, several key concepts to keep in mind.

1. Consider what types of promotional strategies will influence your target audience and plan strategies to match.
2. Plan strategies to meet your marketing and financial goals and objectives and that fit your marketing budget.
3. Plan strategies to partner with organizations and other businesses in your area as well the area from which your customers will travel.
4. Include plans for roadside signage to direct customers to your operation if appropriate.
5. Work to build positive word-of-mouth referrals.
6. Take advantage of or seek out publicity when possible.
7. Consider developing a Web site as one component of your marketing strategy.