1 2002 Edition Vitale and Giglierano Chapter 13 Communicating with the Market Prepared by John T. Drea, Western Illinois University

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2002 Edition

Vitale and Giglierano

Chapter 13Communicating with the Market

Prepared by John T. Drea, Western Illinois University

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Elements of the Promotional Mix

Personal Selling

Advertising

Sales Promotion

Public Relations

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Exhibit 13-1 A Model of the Communication Process

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Basic Terms

• Marketing communications (Marcom)– Methods of communication other than personal selling– When public relations is performed at the corporate level,

what remains is called A & SP (nonpersonal communication).

Marketing communications-Public relations

Advertising & Sales Promotion (A & SP)

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Feedback

Rapidly changing markets frequently require feedback before sales results are available.

Direct response requests (surveys, warranty registrations) can be important, but require an active interest by customers to provide feedback.

Personal selling and relationship marketing are critical to the feedback process – they allow for immediate and personal feedback.

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Message interpretation is subject to…

SelectiveSelectiveExposureExposure

Refers to theactual media

to which a receiver maybe exposed.

SelectiveSelectiveAttentionAttention

Only usefulinformation is seen or heard.It is used to

preventinformationoverload.

SelectiveSelectiveRetentionRetention

Refers to the “storage

function” – the portion of a message retained

that is recalled.

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What Promotion Can and Can’t Do

• Promotion can…– Encourage awareness– Inform about

availability– Persuade trial– Build image– Encourage repurchase– Support selling efforts

• Promotion can’t– Sell products that are

not needed– Substitute for a bad

product or poor marketing strategy.

– Convince customers to go out of their way when a comparable product is available

– Convince customers to pay more than perceived value

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There are three categories of sales promotion.

Sales Sales promotionpromotionfocused onfocused onthe sales the sales

teamteam

Sales Sales promotionpromotionfocused onfocused on

channelchannelintermediariesintermediaries

Sales Sales promotionpromotion

focused on focused on customerscustomers

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Public Relations

• PR defined:– All efforts to obtain the attention and favorable

coverage of the firm’s business by third party media and publics.

• PR activities:– These can include special events, press tours,

public appearances by company executives, participation in media dialog, trade shows or guerilla marketing activities (attention-getting small events to get the company noticed and obtain word-of-mouth)

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Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications

Process Flow StagesProcess Flow Stages Nonpersonal Nonpersonal Communications Can…Communications Can…

•Problem definition•Solution definition•Product specification

•Help identify problems•Provide information for defining solutions•Help customers remember vendors

DEFINITION STAGEDEFINITION STAGEDEFINITION STAGEDEFINITION STAGE

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•Solution provider search•Acquire solution provider(s)

•Provide information on vendors•Provide information on products and partners

SELECTION STAGESELECTION STAGESELECTION STAGESELECTION STAGE

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•Customize as needed•Install/test/train

•Deliver service and training information

DELIVER SOLUTION STAGEDELIVER SOLUTION STAGEDELIVER SOLUTION STAGEDELIVER SOLUTION STAGE

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•Operate solution•Reach end result•Evaluate outcomes•Determine next set of needs

•Provide reinforcement•Deliver service information•Share performance data for evaluation

END GAME STAGEEND GAME STAGEEND GAME STAGEEND GAME STAGE

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Convergence of the

Promotion Mix

Convergence of the

Promotion MixPrint PromotionsPrint Promotions CorporateCorporate

AdvertisingAdvertising

Direct Mail

Direct Mail Sales and

Sales and

Support Lite

rature

Support Lite

rature

Channel

Channel

Promotions

Promotions

Promotional

Promotional

Merchandise

Merchandise

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Types of B2B Print Promotions

Advertising inAdvertising inTrade JournalsTrade JournalsAdvertising inAdvertising in

Trade JournalsTrade Journals

Directory AdvertisingDirectory AdvertisingDirectory AdvertisingDirectory Advertising

Consumer MediaConsumer MediaConsumer MediaConsumer Media

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Corporate Advertising

• Company reputation increases chances of getting a first hearing at a new account.

• Community concessions and subsidies can be enhanced.

• All things being equal, larger and more well-known companies will frequently get the business over a smaller, lesser known competitor

Why use corporate advertising?

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Types of Sales & Support Literature(also called collateral materials)

Catalogs, Catalogs, Product Brochures,Product Brochures,

and Data Sheetsand Data Sheets

CapabilitiesCapabilitiesBrochuresBrochures

Technical Technical Bulletins,Bulletins,

Test Reports, andTest Reports, andApplicationApplicationHistoriesHistories

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Trade Shows

• Determining which trade shows to attend?– Which shows are

important to customers?

– Which shows are important to industry analysts?

– Which shows have the best audience for announcements?

– Which are likely to be attended by the target audience?

• Trade show issues– Who should attend?– Should your company

have an exhibit?– What will the exhibit

be?– How can we capitalize

on the trade show after it is over?

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Internet and Web Communications in Business-to-Business Marketing

The Web is used for two primary functions in B2B marketing:

FacilitatingFacilitatingProduct Sales Product Sales

andandChannel FunctionsChannel Functions

FacilitatingFacilitatingProduct Sales Product Sales

andandChannel FunctionsChannel Functions

CommunicatingCommunicatingwith Customerswith Customers

and Channeland ChannelMembersMembers

CommunicatingCommunicatingwith Customerswith Customers

and Channeland ChannelMembersMembers

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B2B web sites can help buying center members in several ways:

Recognize and Recognize and understand theirunderstand their

problemsproblems

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problemsproblems

Collect and compareCollect and compareinformation aboutinformation about

alternative solutionsalternative solutionsand costsand costs

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problemsproblems



Collect and compare Collect and compare information about information about

alternative suppliers,alternative suppliers,partners, and delivery of partners, and delivery of

valuevalue

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problemsproblems

Provide access to trainingProvide access to trainingmanuals, user manuals,manuals, user manuals,

and troubleshooting guidesand troubleshooting guidesfor use during installation,for use during installation,testing, and product usetesting, and product use



Collect and compare Collect and compare information about information about

alternative suppliers,alternative suppliers,partners, and delivery of partners, and delivery of

valuevalue

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Attracting Visitors to a Web Site

• Banner advertising– “Click-through rates” have declined significantly

• Attract visitors through search engines– Bid for the highest ranking, then pay for each click-

through– Design the web site to achieve higher rankings on

search engines– Purchase key words on search engines – your ad

is displayed when a search is for your key word.

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Other Types of E-Applications

in B2B Communications

Newsletters

Opt-In e-mail

Effective InternetCommunications

On-Line Seminars

NewsletterAdvertising

Documents

1 2002 Edition Vitale and Giglierano Chapter 13 Communicating with the Market Prepared by John T. Drea, Western Illinois University