Most successful companies are engaged in promotion, one way or another. Some firms use it extensively while others only superficially. In any case, the small business operator must know what promotion is and how it can help him achieve his sales and profit objectives. Promotion may be defined as the attempt to persuade others to participate in an exchange with them. Promotion happens because of the need to inform the customers of the existence of a product or service that may be useful to them.
There is some relation between promotion and customer demand. There are instances where the promotional activities increase the total customer demand for a firm’s products or services. In some cases, a little promotional effort brings tremendous increases in customer demand. Sometimes, however, promotion does little to improve total revenues. These results will depend on the nature of the products or service, the stage of the firms’ development, and the nature of competition. It will be very useful to the small business owner to know how he can use the various types of promotion to his advantage.
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