Business Marketing Business Marketing Communications: Communications:

Advertising and Sales Advertising and Sales PromotionPromotion

Chapter 16Chapter 16

PromotionsPromotions

Why are promotions so important?Why are promotions so important?

The importance of salespeopleThe importance of salespeople• Why?Why?

Other methodsOther methods

The Role of AdvertisingThe Role of Advertising

Integrated Communication ProgramIntegrated Communication Program• Blend with objectivesBlend with objectives

Enhancing Sales EffectivenessEnhancing Sales Effectiveness• Does it help?Does it help?

$$ per salesperson$$ per salesperson Higher ratingsHigher ratings Supplier reputationSupplier reputation Increased brand awarenessIncreased brand awareness Gross marginsGross margins

The Role of AdvertisingThe Role of Advertising

Increasing Sales EfficiencyIncreasing Sales Efficiency• Actual customersActual customers• Potential customersPotential customers

Creating awarenessCreating awareness• UnawarenessUnawareness Awareness Awareness Preference Preference

Interactive Marketing Interactive Marketing CommunicationsCommunications• Impact of the internetImpact of the internet

Limitations of AdvertisingLimitations of Advertising

Managing B2B AdvertisingManaging B2B Advertising

1.1. Set Advertising Objectives and Define Set Advertising Objectives and Define Target MarketTarget Market

2.2. Determine the Advertising BudgetDetermine the Advertising Budget

3.3. Develop the MessageDevelop the Message

4.4. Select the MediaSelect the Media

5.5. Evaluate Advertising EffectivenessEvaluate Advertising Effectiveness

Managing B2B AdvertisingManaging B2B Advertising

Set Advertising Objectives & Define Target Set Advertising Objectives & Define Target MarketMarket• Know what you want to accomplishKnow what you want to accomplish• Written objectivesWritten objectives

Four characteristicsFour characteristics Three common examplesThree common examples

• Brand awarenessBrand awareness• RecognitionRecognition• Buyer attitudesBuyer attitudes

• Target audienceTarget audience• Creative Strategy StatementCreative Strategy Statement

How to position the product?How to position the product?

Managing B2B AdvertisingManaging B2B Advertising Determining the Advertising BudgetDetermining the Advertising Budget

• Two methodsTwo methods Rules of thumbRules of thumb

• When to useWhen to use• TypesTypes• ConsequenceConsequence of sales of sales

Objective-task methodObjective-task method• How it worksHow it works

Establish objectivesEstablish objectives Assess communication neededAssess communication needed Define goals in measurable termsDefine goals in measurable terms Estimate budget needed to achieve goalsEstimate budget needed to achieve goals

• DeterminantDeterminant of sales of sales

• Passing the thresholdPassing the threshold

Managing B2B AdvertisingManaging B2B Advertising

Developing the Advertising MessageDeveloping the Advertising Message• Highlight attributesHighlight attributes• PerceptionPerception

AttentionAttention InterpretationInterpretation

• Example: Technical advertisementsExample: Technical advertisements

• Focus on benefitsFocus on benefits Focus on what customers want andFocus on what customers want and Focus on company’s ability to reach themFocus on company’s ability to reach them

• Marketing researchMarketing research

Managing B2B AdvertisingManaging B2B Advertising

Selecting Advertising Media Selecting Advertising Media • Based on what the target market usesBased on what the target market uses• Business publicationsBusiness publications

Horizontal publicationsHorizontal publications• Ad Age, Marketing NewsAd Age, Marketing News

Vertical publicationsVertical publications• Chemical BusinessChemical Business

Requester publicationsRequester publications• Why?Why?

Managing B2B AdvertisingManaging B2B Advertising

Advertising CostAdvertising Cost• Measuring efficiencyMeasuring efficiency

Cost per thousandCost per thousand Cost of reaching target marketCost of reaching target market

• FrequencyFrequency How often to run the advertisement?How often to run the advertisement?

Direct Marketing ToolsDirect Marketing Tools

Direct MailDirect Mail• BenefitsBenefits

• DisadvantagesDisadvantages

Interactive MarketingInteractive Marketing• Customer Relationship MarketingCustomer Relationship Marketing

Measuring Advertising Measuring Advertising EffectivenessEffectiveness

What benefits does advertising What benefits does advertising provide the company?provide the company?

Measuring Impact on Purchase Measuring Impact on Purchase DecisionDecision• Indirect communicationIndirect communication

Measurement ProgramMeasurement Program• BenchmarkingBenchmarking

Common benchmarksCommon benchmarks

Trade ShowsTrade Shows Magnitude of trade showsMagnitude of trade shows AdvantagesAdvantages Costs- about $250Costs- about $250 International trade showsInternational trade shows Investment returnsInvestment returns Trade show objectivesTrade show objectives

• Identify decision-influencersIdentify decision-influencers• Identify potential customersIdentify potential customers• Create actual salesCreate actual sales• Provide products, services, and company informationProvide products, services, and company information• Learn of potential application problemsLearn of potential application problems• Handle existing customer problemsHandle existing customer problems

Trade ShowsTrade Shows

Selecting the ShowSelecting the Show• Which one to go to?Which one to go to?

Net buying influencesNet buying influences Total buying plansTotal buying plans

• Ask customers?Ask customers?• Lead efficiency modelLead efficiency model

# of sales leads obtained at show# of sales leads obtained at show

Total # of show visitors with plans to buyTotal # of show visitors with plans to buy

Trade ShowsTrade Shows

Managing the ExhibitManaging the Exhibit• Generate interestGenerate interest• Salespeople trainingSalespeople training• Internet usageInternet usage

Evaluating PerformanceEvaluating Performance• AttractionAttraction• ContactContact• Conversation efficiencyConversation efficiency