Getting More for Your Money

Getting More for Your Money
Presented By: Amy Lewallen
London High School

Explain how demand is created and what I can do as a consumer to maximize my purchasing power.

​I will

Describe strategies used by businesses to sell goods and services, both in meeting and in creating demand.

Discuss strategies that consumers can use before, during, and after the purchase.

We will.....

Objectives

Open Ended

Explain how demand is created and what I can do as a consumer to maximize my purchasing power.

sales promotion - an incentive offered to customers to increase demand.

Direct Advertising - Distribution of product information directly to consumers.

transit advertising - ads placed on modes of public transportation or in public transportation areas

customer loyalty programs - a program designed to encourage repeat business by providing special discounts and other incentives.

comparison shopping - checking prices, brands, and quality among several sellers to make sure you are getting the best deal

Branding Strategy - caring well-known brand names to attract customers who are loyal to those brands.

Discount Pricing- offering the lowest everyday price possible

advertising - informing consumers about products and encouraging them to buy

target audience - a specific group of people who are likely to buy a product

​Key Terms

Vocabulary

​What are Selling Strategies
Business owners take the risk of bringing products and services to the market. To stay in business, they must sell those products and services to customers and make a profit. Sellers must consider ways to meet demand and create more demand for their products and services.

Meeting Demand - Sellers use many strategies to promote their products and services.
Strategies used to promote sales include:
Making shopping convenient and pleasant for customers.
1. Easily accessible location, making the business clean, comfortable, safe and pleasant to shop at.
2. Offering a wide range of payment options - cash, checks, debit, and credit card options
3. Offering an online store so consumers can shop day or night

Customer Service - businesses depend on employees to provide customer service and promote sales.
1. Build Customer Relationships
2. Make sure customers needs and wants are satisfied.
3. Build Customer Loyalty

Providing the Right Product for the Right Price
1. Know what the customers want and what competitors are selling
2. Have a branding strategy and carry brands that attract customers loyal to those brands
3. Make sure they are selling good quality products at the right price (promotions, discounts, and sales)

Multiple Select

What are 3 strategies businesses can use to meet demand?

• Making shopping convenient for customers

• Making prices high to make a profit

• Providing good customer service and building relationships

• Having a branding strategy that attracts customers who are loyal to the product

Creating Demand

To sell goods, businesses may need to create demand by using various marketing strategies such as advertising and sales promotions.

Types of Advertising
1. Sales Promotions - offering customers coupons, free samples, and customer loyalty programs in return for purchasing a certain item or at a certain store.
2. Newspaper and Magazine Advertising - placing ads in newspapers and magazines allows businesses to reach a large number of people.
3. Television and Radio Advertising - Television ads are expensive, but they can reach millions of people while radio stations offer various formats from news/talk shows to jingles. Both appeal to emotions and specific target audience members.
4. Internet Advertising - the internet allows businesses to communicate with a large number of people. Advertising found on the internet includes Display Advertising, which uses text, pictures, and animation to grab a user's attention. Banner Ads span the top, bottom, or sides of a webpage. Pop-up ads open new windows and "pop" onto the screen in front of the webpage. Social Media marketing uses social networks to promote products through videos, special offers, ect.

Many Online Retailers customize ads to shoppers who have previously visited their website and track user's visits using cookies, which are files created by the website that store info about the web visitor on his/her computer.

Creating Demand

To sell goods, businesses may need to create demand by using various marketing strategies such as advertising and sales promotions.

Types of Advertising - Continued

5. Outdoor Advertising - advertising directed to the masses through billboards and signs. This type of advertising is posted along highways or at store entrances. Many businesses especially entertainment venues, hotels, and restaurants use outdoor advertising.
6. Direct Advertising - advertising that distributes info about a product directly to consumers.
It includes direct mail, such as fliers, catalogs, brochures, and circulars to targeted consumers.
Direct sales or door to door sales is also and example of direct advertising.
Party Plan marketing - a social event where a host offers products for sale to a group of friends
Telemarketing - phone call sales

7. Transit Advertising - Business place ads on public transportation or in public transportation areas.
8. Sales Promotion - are used to entice customers to buy a product - coupons, free samples, or customer loyalty programs/rewards

Poll

What type of advertising do you respond to the most?

• Outdoor Adverting

• Internet Advertising

• TV or Radio Advertising

• Sales Promotions

What are Buying Strategies?

​Before You Shop

1. Comparison shop - comparison shopping involves checking prices, brands, and quality among several sellers to make sure you are getting the best deal. - The internet is a good resource for comparison shopping

2. Plan Your Purchase - Prepare a list of things you need, set a budget, and decide ahead of time what you will purchase. - Planning helps you avoid overspending or buying things you don't need.

3. Pick the best time to shop - Do not shop when your hungry, sad, angry, frustrated, ect. as it can affect your state of mind and purchase choices.

4. Reseach Businesses - Use your local Better Business Bureau to make sure you are shopping at a reputable business. If shopping online, research websites before you place your order.

Open Ended

Why is comparison shopping important?

Buying Strategies

​While you shop

1. Avoid impulse buying - take a list with you when you shop and buy only what is on the list.

2. Read labels - Know ingredients and materials and what they mean.

3. Understand Sale Terminology - Clearance= means the business wants to clear out merchandise. Liquidation means the business wants to sell everything right away but not necessarily at reduced prices.

4. Read Contracts- make sure to read and understand contracts before you sign.

5. Compute Unit Prices - Unit pricing is the cost per unit of an item sold in packages of more than one unit. The lowest unit price for comparable products is the best.

6. Compute total cost - check the total cost plus add ons such as shipping, handling, finance charges before purchasing.

Buying Strategies

​After You Buy

1. Keep Receipts and warranties - you need to keep these in case the product breaks. A warranty is a statement guaranteeing the quality and performance of a product or service.

2. Evaluate your purchase - Are you satisfied? Is the product what you wanted? Are you happy with the service you received? Answering these questions can help you make better decisions in the future.

3. Be loyal - Shop at businesses that have good reputations and have served you well. Tell others about good experiences. If your treated unfairly, share those experiences too.

Open Ended

As a consumer, what are some things that you should do before, during, and after you shop?