Promotional Methods Used By the Small and Medium Sized Enterprises

Name

DDBA 8110 - Business Operations: Systems Perspectives in Global Organizations

Walden University

2022

Promotional Methods Used By the Small and Medium Sized Enterprises

The sales promotion methods chosen by a firm should have a target market whose it is going to

at particular time. As explained by in Inyanga (1998), the promoter (Banks inclusive) may focus

attention on final consumers of his products/brand to encourage them to buy a particular product

brand. It is important to state here that sales promotion programmes should be undertaken after

the firm has considered the following issues:

Surveying the items that current customers are purchasing, which items are purchased most

frequently, or only occasionally? Do you have enough of the most popular items on hand? Are

there other products, supplies, or equipment that you should have in stock? The message is

simple—find out! From a customer's point of view, there is nothing more frustrating than

travelling across town to obtain needed merchandise only to be disappointed by learning you

happen to be "out of stock." When this happens (and it does), a cardinal business rule has been

broken, with costly consequences. By not carrying the products or services desired, customers

are compelled to look elsewhere. Even worse, alert competitors will do everything they can to

add your customers to their customer base Ziegler (1999).

Advertising is the economical and informational incentives, which are offered by firms to

buyers or distributors (Paul, 1999). It emerged as a reaction by manufacturers’ marketers, and

marketing strategies alike to find a short term solution to the problems of excess stock of goods

which are available in variables manufacturer’s warehouses but are not demanded by consumers

and organization (Aham, 2008). There are several media used when advertising for instance,

radio can be used to reach as many people owning this device as possible, television, magazines,

journals and newspapers can be used as modes of advertising.

Kotler (1997) expresses that free samples to prospect customers consist of adverse collection of

incentive tools, mostly short-term, designed to stimulate quicker and/or greater purchase of

particular brand, products, or service by consumers or the traders. In a similar fashion,

road shows according to Ndupu (1999), cited by Anah (2008), opined that as always been of the

variable strategies of making quick sales and help to establish brander names and ginger trail

purchases.

A newsletter is an excellent way to maintain contact with your customers, particularly your

regular customers. A newsletter both personalizes your advertising strategy and looks

professional. Your newsletter might incorporate some of the following ideas. Give the newsletter

a practical focus by including information based on frequently asked questions (e.g., keep

readers abreast of current or impending legislative rulings on the sale of selected pesticides, and

provide information on the correct application of fertilizers or the safe handling, use, and

disposal of dangerous chemicals) Ziegler (1999). Discuss those items you wish to promote,

particularly over-stocked or slow-moving products. Promote your firm by becoming involved

with the community and supporting special programs, attending seminars, or devising in-store

demonstrations. The point is simple attract customers by developing a positive image as an

educated, responsible, and concerned member of the local community. A newsletter offering

practical solutions to environmentally sensitive issues will also go a long way towards making

that image credible.

According to Ndupu (1999), to stay ahead, businesses will need to distinguish themselves,

primarily with superior service. No business can survive long without satisfied customers.

Consider these sobering statistics. In their book, "Customer Centered Growth", Whiteley and

Hessan (1996) note that 96 percent of unhappy customers never complain and 90 percent of them

will never return. In addition, most unhappy customers will tell their individual stories to at least

nine other people and 13 percent of those unhappy (former) customers will tell their stories to

over 20 people.

Commercialisation on the hand is described as any form of non personal communication

through the mass media that is paid for by an identified sponsor (Nwokoye, 1999). This agrees

with Baker (2002) who explained that commercialisation is any paid form of non-personal

presentation and promotion of ideas, goods or services by an identified sponsor.

Personal selling offers responses to consumers to be aware of the existence of a product; sales

promotion gives the consumer the reason to make the purchase. In a bid to out sell competitors,

retailers offer gifts to customers who would rather buy or purchase a product which they will get

something free rather than to by another product and achieve nothing. This is also useful in times

of slow or sluggish sales (Nwokoye, 1999).

2.3.3 Effectiveness of the Various Promotional Strategies in Improving the Enterprises

Performance.

Giving free samples to customers as a form of promotional strategy, enables the prospect client

have confidence with the product and feel appreciated hence creates the desire to have or buy

more of the product. This form of promotional enables the client to inform others on benefits of

the particular product Bielder, (2008).

Commercialisation as a promotional strategy reaches a huge number of people depending on

the media used. For example, commercial breaks during a favourite program enables people get

knowledge of new products in the market hence attracted to it Bielder, (2008)

Personal selling on the other hand, ensures face to face and close contact of the of the seller with

the buyer hence assisting in maintaining the relationship and the customer who again acts as a

good will ambassador to the business by promoting it even more to others, Ziegler (1999).

Aham, (2008) asserts that enormous human and material resources are devoted to advertising.

Advertising is everywhere in today's world, so that, as Pope Paul VI remarked, "No one now can

escape the influence of advertising." Even people who are not themselves exposed to particular

forms of advertising confront a society, a culture other people — affected for good or ill by

advertising messages and techniques of every sort.

According to Bielder, (2008) advertising is a waste of time, talent and money an essentially

parasitic activity. In this view, not only does advertising have no value of its own, but its

influence is entirely harmful and corrupting for individuals and society.