Adv & sales promo

7/27/2019 Adv & sales promo

1/57

PowerPoint by:

Ray A. DeCormier, Ph.D.

Central Connecticut State University

Chapter 13:

Business Marketing

Communications:Advertising andSales Promotion


2/57

Advertising and sales promotion supplements personalselling efforts. This chapter considers:1. The powerful role of social media can assume in business

marketing strategy2. The decisions that must be made when forming abusiness advertising program3. The business media options, including the powerful roleof Internet marketing communications4. Ways to measure business advertising effectiveness5. The role of trade shows in the business communicationsmix and how to measure trade show effectiveness


3/57

Introduction

Business has learned that not even the bestproducts sell themselves.

Benefits, problem solutions and costefficiencies need to be sold through effectivecommunications to everyone from users to

influencers to decision makers.


4/57

Due to

a. Product complexities (technical),

b. The small number of buyers,c. The high price products/services, andd. Extensive negotiation process

The primary communications vehicle for sellingIndustrial/Business products/services is the:

SALESPERSON!


5/57

OTHER NON-PERSONAL COMPONENTS

There is a need for other non-personal requisitessuch as:

Advertising

Catalogs Internet presence

Trade shows

Promotional spending

All have a unique way of getting the message out,however, they dont close deals as well as personalselling!


6/57

B2B Social Media

6

Channels of the social web where prospects and businesses

communicate across diverse platforms

Key Platforms:

1. Discussion Forums

2. Blogs

3. Wiki

4. Social Networks


7/57

Use of Social Media in B2B

7

Monitor what prospects are saying about the company

Capture interest from prospects looking for products

Coordinate follow-up to social media interactions


8/57


9/57

Customer Decision Journey

The CDJ is the customers decision process inselecting a particular product

Often find a mismatch between media used and the

touch points at which buyers are best influenced

CDJ includes two critical steps

1. Inspiration: use online channels to find, create and

compare

2. Sharing: relate experiences using a variety of social media

Key: Customer experience includes everything

from discussions on social media to meetings with

sales people. Social media facilitate targeted,

personalized contact across the customer


10/57

Be an integral part of an integratedcommunication programs

Enhance sales effectiveness

Increase sales efficiency

Create awareness

Create preferences for company, products, etc.

Facilitate interactive marketing communications


11/57

Integrated Communication Programs

Integrated Communications is the intertwiningof all communication methods to include:

Advertising

Sales Promotion Online Media

Public Relations

Personal Selling

Of these promotional techniques, personalselling is most important in B2B marketing!


12/57

ENHANCING SALES EFFECTIVENESS

Combining advertising and personal selling

makes the selling job easier and more

efficient.

People who were aware of the ad thought the

salesperson was more knowledgeable than

companies that dont advertise.

Profits and gross margins also increase

when advertising is employed.


13/57

Advertising increases efficiency in two

ways:

1.Serves as a reminder

2. Informs the market about newproducts/developments

Advertising is pennies when compared to

$100s for a sales call.


14/57

Business advertising creates:1. Awareness2. Brand preference3. Conviction that a brand will meet theirrequirements & hopefully4. Facilitate purchase

14


15/57

The Internet has created a two-waycommunication process, permitting the

marketer and customer to more rapidly

exchange information.

This flexibility has allowed the marketer to

personalize communications and customize

solutions.


16/57

Effective B2B communication needs to beintegrated among all media methods; however,it does have its limitations. It:1. Cannot create product preference for manyproducts.2. Cannot close a sale!3. Cannot substitute for personal selling.4.Can supplement personal selling but notreplace it.

S


17/57

Advertising is only oneaspect of an entiremarketing strategy.

The advertising decisionprocess begins withformulating advertisingobjectives.

Equally important:selection and evaluationof media.

The Decision Stages: Developing

Business-to-Business

Advertising Program

Figure 13.1


18/57


19/57

ADVERTISING OBJECTIVES

Advertising objectives must be:

1. Realistic

2. Measurable

3. Specific outcomes during specific times

Example: To be effective, the advertising

campaign shall increase awareness from15% to 30% during the period from April 1st

to June 31st.


20/57

One objective of advertising is to reach influentialswho are often difficult to contact via personalselling.

Influentials are interested in specific features andattributes that solve certain problems. Advertisingneeds to focus upon that issue.

Marketers must understand who the target marketis and how to reach them for an advertisingcampaign to be effective.


21/57

Creative Strategy Statements

Provide guidelines for the company andadvertising agency to position (or reposition) theproduct.

All creative efforts should include:

1. Copy

2.Theme

3. Color, design, etc.4.Media

5.Tactics


22/57

Managers tend to employ the following ruleof thumb:

1. Allocate some percent of sales toadvertising

2. However, this is a dysfunctional rule!


23/57

Advertisings purpose is to inform and influence sales,but it is not to create sales.

A dysfunctional policy of tying advertising budgets to% of sales defeats the purpose.

For example: If there are no sales, then is there no advertising

budget? If sales are declining, do you cut advertising costs too?

Does that make sense?


24/57

A better approach for allocating advertisingcosts is to relate them to advertisingobjectives. The Objective-Task Method focuses on thecommunications effects of advertising Not on the sales effects.


25/57

1. Establish objectives in terms of sales volume,market share, profit contribution and market

segments.

2. Assess all communication functions to realizethese objectives.

3. Define specific measurements required to meetthese objectives such as market share.

4. Estimate the budget needed to accomplish them.


26/57

How much is enough? Advertising costs is like owning an old gold mine.It can return millions, or be a bottomless pit. The only way to assure success is to establish andmeasure against goals. Another matter is the political side of the decision.The concern here is that internal politics oftendetermine budgets, not the technique-drivenprocess.


27/57

Passing the Threshold

In order for a message to be heard, it isnecessary to repeat it often.

Of course, the question is: How often?

Research suggests that advertising must

pass through a certain threshold before ameaningful message can be understood bythe market to move product fromawareness to preference.


28/57

Passing the Threshold

A small budget is not enough

A large budget is like throwing money away

Because budgeting advertising is so important,marketing managers should:

1. Set clear objectives

2. Evaluate tasks required 3. Compare costs against industry norms

4. Allocate a proper budget

5. Design an effective advertising message


29/57

DEVELOPINGTHE MESSAGE

Three Considerations:

Perception

Benefits focus

Understanding buyer motivations


30/57

Developing B2B Advertising Message

1. Determine advertising objectives

2. Evaluate target audiences buying

criteria3. Analyze most appropriate language,

format and style to present message.

4. Then consider the message!


31/57

PERCEPTION, PERCEPTION, PERCEPTION

In business, perception is almost the same as truth.

The message needs to attract the right person.

In most cases, that is the decision maker.

For an advertising messages to be considered, it has to:

Attract the right persons attention, &

Be interpreted properly.

For example, techies respond to technical ads and non-techies

respond better to non-technical ads.


32/57

Industrial buyers focus on solutions to businessproblems that considers:

a. A better way to accomplish tasks

b. A less expensive way to manufacture something

c. A new approach to either make or save the companymoney

d. A different way to free up time


33/57


34/57

Effective Ads

Effective ads are:

A. Logical

B. RationalC. Provide a clear description of the product

D. Present product benefits clearly

E. Details product qualityF. Provide performance measures


35/57

B2B media are selected by target audiences

Should we use trade publications, direct mail,Internet or all of them?

What is the best way to spend advertisingmoney to generate the desired response(customer contacts)?


36/57

Shifting of Advertising to Digital

Form

B2B marketers are always looking for ways tocommunicate better with customers & prospects.

Use of Internet microsites (specialized web pages

that prospects jump to from an email or PR piecethat contain videos) is providing excellent results.

Use of online videos help customers and prospects

from around the world solve their businessproblems.

Videos are particularly effective for telling the story

and producing serious leads.


37/57

Using proper key words or key phrases within the siteis an absolute necessity for driving leads to that site.Ideas for successful Internet advertising include:1. Make sure site is search-crawler friendly2. Good key words must tie into solutions sought3. Create a relevant, targeted keyword list that reflectsproblem, product, etc.4. Write clear, compelling ads that use key words and

isolate your value proposition5. Track results and measure everything


38/57

Business Publications

There are more than 2700 businesspublicationsselecting the right ones is

another difficult task.

Horizontal Publications are directed at the

specific task, function or technology

regardless of industry.

Vertical Publications are oriented to

readers in a specific industry.


39/57


Many trade publications are requester publications.

This is where the reader is interested in a certainsubject and receives a certain publication for free inexchange for demographic information such as title,function and buying responsibilities.

Advertisers know who their desired audience are!


40/57

Cost of Advertising

Companies need to allocate an advertisingbudget for:


Sales Promotions

Direct Marketing (mail & e-mail)

Internet Advertising


41/57

Include:

Cost/1000 contact is one consideration

Circulation based on the TARGET audience

Does the medium also have Internet viewing?

Frequency and scheduling is anothercomplicated issue


42/57

Direct Mail is commonly used for:

a. Image, product and service promotion

b. Sales force support by providing leadsc. Distribution channel communicationsd. Getting pertinent information directly to influencials

Direct mail is efficient providing the list is good. Much direct mail is considered junk mail.


43/57

Direct mail is 10 times more expensive than e-mail E-mail campaigns often yield more responses andresults are quicker

Example: 1/3 of all responses were generated within24hrs. Many firms integrate their CRM programs with e-mail Many firms provide an e-mail alert service and/or ane-mail newsletter


44/57

In order to successfully accomplish this, it isimportant to have all the systems in place first.

They include:

a. E-mail acknowledgementsb. Order entry

c. Order fulfillment

d. Money exchanges

e. Follow-up contact

f. Q&A service

g. Troubleshooting systems


45/57

MEASURING EFFECTIVENESS

Rarely do ads result in immediatebusiness.

But, it does create awareness hopefully

leading to preference.Measurements can be direct or indirect.

Direct communication is measured by:

percent awareness.

Indirect communications are measured

by: word-of-mouth and understood

perceptions.

Five Primary Areas for


46/57

1. Sound measurementprogram entails substantialadvanced planning.

2. The advertising strategist

must determine:

What is to be measured

How to measure it

In what sequence

3. Establish benchmarks inpre-evaluation phase

y

Evaluating Advertising

Figure 13.2


47/57

Knowledge Recognition Recall Awareness Preference Motivation

It is not always possible to measureeffects on actual sales.


48/57

Trade Shows

Another important form of promotion istrade shows.

Effective selling message can be delivered toa relatively large and targeted audience atone time.

Firm can identify potential clients and

provide sales personnel with qualified leads.

Trade shows can also be used to introducenew products.


49/57

Customers can get hands-on experience with product

in one-on-one selling situation. Company can enhance general goodwill.

Company often benefits from free publicity.

Trade shows allow competitors to look at each other.

International business can be facilitated resulting inquicker entry into foreign markets.

Many sales are also made at these shows too! Cost of meeting prospects is around $250 which is

much less than making a personal sales call.


50/57

Trade-Show Communications Strategy

To develop an effective trade show communicationsstrategy, certain questions need to be addressed:

What functions should trade show perform in

total marketing communications program? To whom should trade show marketing effort be

directed? What is companys appropriate communication

mix at the show? How should trade show investments be audited?


51/57

Trade Show Objectives

1. Discover decision influencers.

2. Identify potential customers.

3. Provide company product, service and information.

4. Try to discover product application problems.5. Create sales.

6. Handle customer problems.

7. Build corporate image.

8. Gather competitive intelligence.

9. Enhance sales force morale.


52/57

Challenge Question: What trade show to

attend?

Answer: Attend trade shows that are attendedby prospective customers.

To find trade shows, use leading trade showdirectories such as:

a. American Trade Show Directoryb. ExhibitNet.com databasec. Exhibit Surveys, Inc.


53/57

SELECTING/EVALUATING TRADE SHOWS

Exhibit Surveys, Inc. publishes data on:

Net Buying Influences

Measures percentage of show audience that have

decision authority for product types being

exhibited

Total Buying Plan

Measures percentage of audience planning to buy

exhibited products within 12 months


54/57

Lead Generation

Trade shows are probably most important for leadgeneration.

Attaining leads is so important to companies

because without them, a company cannot survive.

There is a natural turnover of customers so acompany has to constantly be looking for new

business.

Its just a way of life.


55/57

Trade shows are different than personal sellingeven though one is selling never-the-less.

The trade show is more theatrical, and contact is

very short (5-10 min.), therefore the process is to:

Sell the product first,

Sell the company next,

Sell the salesperson last.

This is opposite to traditional selling situations.


56/57

Flows Tactical Activities

Show Attendees

Target Audience

Attracted To Booth

Contact w/Salesperson

Sales Leads

Pre-Show &At-Show

ImpersonalPromotional

Activities

Personal

PromotionalActivities

Source: Gopalakrishna & Lilien, A Three-Stage Model of Industrial Trade Show Performance,

Working Paper #20, Marketing Science 14 (Winter 1995) :pp.22-42


57/57

Measuring the Success

Companies need to set measurable goals inadvance of the trade show including:

a.Number of leadsb.Likely effect on salesc.Potential effect on new accountsd.Effect on corporate image

e.Expenditures that tie into an adequate ROI

Documents

Adv & sales promo