Advertising and promotion

The total demand for the goods or services offered by any small firm can be divided into established demand1 and newly created demand, sometimes called promoted demand2.

Established demand is that volume of sales which comes without conscious outside promotion by the firm. People buy because they have had positive experiences with the firm's products, find the firm conveniently3 placed, or are attracted4 by the firm's appearance.

Newly created or promoted demand by contrast, is the volume of sales that results from firm's engaging5 in various types of activities to draw people to the firm. Promoted demand customers, if pleased, can become established customers. Those firms that supplement6 established demand with promoted demand show much better sales volume and profits. Almost without exception, additional advertising and promotion brings in greater sales volume.

All the activities that go into the development of sales can be grouped under the title promotion of sales. This promotion can use either direct or indirect methods. Every small firm owner should think about using some of the following types of sales promotion.

Direct promotion methods

Indirect promotion methods

1. advertising

1. public relations

2. publicity7

2. customer relations

3. displays

3. customer services

4. special event sales

4. product styling and packaging

5. manufacturer's aids

5. community goodwill8

6. personal selling

7. sales promotion campaigns

ADVERTISING can be defined as commercial messages to the public designed to inform potential and established customers and to encourage sales for the advertiser. Advertising can be either institutional (designed to sell the firm's name) or direct-action (designed to sell the firm's product or service).

TYPES OF ADVERTISING MEDIA. Among the media generally used in advertising are: television, radio, newspapers, magazines, outdoor billboards, specialty advertising (distribution of such items as notebooks, pencils, calendars, blotters, gummed labels, telephone pads, shopping bags), public transportation, yellow pages, direct mail, other media (catalogues, samples, handouts, leaflets, etc.)

MEASURING ADVERTISING EFFECTIVENESS. Whenever possible, every advertising program undertaken should be checked9 for its effectiveness. Some of the ways the small firms can do this are:

1. Advertise one item in one ad only. By having no references to the item on the sales floor and then counting10 The calls and requests, ad results can be identified.

2. Place identical ads with identifying marks in two separate publications. The reader is asked to bring the ad to the firm to obtain a special price or prize. Count how many ads come in from each source.

3. Omit11 a regular advertising project for intermittent12 And watch for any change in sales.

4. Check sales results when a new advertisement is placed.

PUBLICITY has always been described as advertising that is not paid for. It includes such things as public news items about the owner of the firm that tend to brighten the firm's image or make friends for the business.

DISPLAYS are a one-site method of sales promotion. Products that are not normally considered impulse items13 Are often sold through an effective display in the windows or on the sales floor. Displays enable the merchant to add changes, interest, and brightness to the standard layout, and when well done can do much to increase sales.

SPECIAL EVENT SALES Special events to directly promote sales have become a well-established feature14 of most consumer goods businesses. The firm's anniversary, the firm's president's birthday, the addition of a new service for customers, the start of the spring and fall seasons, and so on, can all be used as occasions15 to promote sales. Major holidays, of course, are ideal for sales.

MANUFACTURER'S AIDS are any form of assistance provided by the manufacturer to small wholesalers and retailers for promoting sales. These aids may take the form of national advertising of the products involved16, assignment of trained personnel to demonstrate the use of a product such as cookware in the particular store, provision of attractive window and floor displays, or monetary contributions to an advertising program.

PERSONAL SELLING means all those activities and characteristics of the individual salesperson which make successful sales. Fundamental to all good personal selling is a thorough knowledge of the merchandise. Personality, human psychology are also important.

The four basic steps in making any sale have been summarized as follows: 1. Gaining17 The prospective customer's attention and interest, 2. Creating desire and overcoming objections, 3. Presenting various solutions, 4. Closing the sale.

SALES PROMOTION CAMPAIGNS are usually built around a central idea. The campaign may last a day, a week, or even several months. It may be seasonal or associated with a business opening or anniversary, a new product, or the introduction of a new service. The opening of a new department, a new location, or a national or historic commemoration can also be the basis for a campaign.

When the theme is chosen, the campaign itself must be carefully planned. The list that follows outlines a number of important campaign elements: a basic promotion idea or philosophy must be developed, promotion objectives should be drawn up, various elements of the campaign – advertising, display, and public relations should be studied, responsibilities should be assigned to employees, the program of activities should be scheduled, using a calendar and a timetable, individual promotions should be reviewed after the campaign, critiques should be written and filed for the future reference.

PUBLIC RELATIONS. A firm's public relations determine its image, or popular reputation, in the general community. The nature of its public relations, good or bad, is reflected in the community's attitude and goodwill toward the firm. Good public relations are cumulative net result, which is more easily destroyed than built. It is the responsibility of every person associated with the firm. Every act of the firm's representatives contributes to the overall image of the firm.

CUSTOMER RELATIONS build sales independently and also contribute to the total image of the firm. Satisfied, happy customers are the best form of advertising and promotion.

CUSTOMER SERVICES can be a part of both public relations and good customer relations. Many customers want special services and seek out firms that supply them. Examples are air-conditioned stores, night hours for shopping, credit accounts, delivery service, and lines of merchandise not generally available. Pricing policies are sometimes adjusted for particular customer groups as a part of service. Firms selling industrial products have found that the most valued customer services are on-time deliveries, conformity to specifications of products sold, and efficient accounting procedures.

PRODUCT STYLING AND PACKAGING are obvious aids in developing sales volume. When similar products are offered in various styles, customers seek choices. Packaging can be an equal attraction.

COMMUNITY GOODWILL. Every owner should be aware of the importance of the goodwill of the public to the firm's success. Every proposed business policy should first be analyzed in terms of its effect upon the company's image. No firm with tarnished18 goodwill will be very successful in a community. Potential purchasers stay away from such firms, sales fall, service becomes more difficult to maintain, and as a result the circle gets smaller. Failure is the ultimate19 result.

All the sales promotion methods reflect a conviction20 That the customer is the most important part of any successful business. There can be no profit in the absence of sales. Efforts to keep present customers happy and to constantly attract new ones are essential to continued profits and growth.


Notes: 1. сформированный спрос; 2. пропагандистский спрос; 3. удобно; 4. привлекать, притягивать; пленять; 5. заниматься; вовлекать; 6. дополнять; дополнение, добавление;

7. пропаганда, паблисити; 8. доброжелательность общества; 9. проверять; 10. считать;

11. пренебрегать, упускать, пропускать; не включать; 12. прерывистый; 13. импульсивные товары; 14. особенность, характерная черта; 15. случай, возможность; 16. вовлекать, включать; 17. добиваться; достигать; 18. пятнать, порочить; 19. конечный, окончательной;

20. убежденность, уверенность

1. Match the words with their definitions.


1) The wants of buyers in the market.

2) To get or obtain something wanted.

3) The business of attracting public attention and of encouraging general feelings of goodwill towards a product or service in order to sell it.

4) A single article or class of articles in a list, account, inventory, etc.

5) The advantage possessed by an established business over a new business. The attractive force that brings in customers.

6) Make sure that smth or smb is correct, safe, making progress.

7) Say all numbers one after another up to a particular number.

8) Do not include smth in an activity or piece of work, deliberately or accidentally.

9) Smth happening or appearing occasionally or at regular intervals rather than constantly or continuously.

10) A particular part of smth or characteristic that it has, which you notice because it seems important or interesting.

2. Supply the sentences with the missing words.


1) The amount of fuel is displayed... on a gauge.

2) I tried desperately to... his attention.

3) It was considered inappropriate for a former President to... in commerce.

4) They had to get a job to... the family income.

5) The Oval Office will be used for ceremonial ... .

6) The business seemed to... an enormous amount of sales.

7) It turned into a witch-hunt that... the names of many of the country's intellectuals.

8) He knew this action was necessary for the... success of the talks.

9) Nothing would budge him from his... that he could run a newspaper successfully.

3. Complete each of the sentences by using the past form of one of the verbs on the left and combining it with one of the words on the right. Use each verb once only. Some words on the rig/it are used more than once.

Cut get back through

Deal keep down forward

Find put out with

Read think over

1) By accident the switchboard operator... her... in the middle of our conversation.

2) After testing everything they finally... ... what was wrong with the machine.

3) They ... costs... by using less expensive materials.

4) The Finance Department... ... the query about discounts.

5) He ... the figures... to her so that she could be sure that he had the quantities exactly right.

6) She ... ... an interesting proposal at the meeting.

7) They ... the offer... for a week before making a decision.

8) After ringing up three times I finally... ... to head office.

4. As you study English, notice how some adverbs form common partnerships with other words, for example:

Each product is thoroughly tested. This process is widely used.

If You want to use English in a natural way, you should note down and learn expressions like these. From the following list choose a suitable adverb to complete each sentence. Use each adverb once only.

Absolutely conveniently eventually financially

Satisfactorily specially widely

1) Our new office is... located in the middle of the town.

2) I hope the negotiations will be concluded... .

3) This credit card is... accepted so I take it everywhere.

4) Make sure you're... insured when you go to the States.

5) The accountant had to check that the company was... sound.

6) You have been... selected to try out our latest product.

7) I'm sure the Government's policy will... cause a recession.

8) Get this software... free when you buy one of our computers.

5. Look at the following sentences:

Each price the company might charge will lead to a different level of demand.

The same price increase results in a large drop in demand.

Now complete the sentences below matching cause with effect.

1) Price increases can... to... .

2) A sales decrease may... in... .

3) Doubling of the advertising budget should... to... .

4) A gradual decline in the market sector has... in... .

5) A reduction in staff salaries will... to... .


Staff motivation falls

Fall in demand


Sales increase

Share price drop

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