B2B MKTG Chapter 13 Communicating with the Market 2002 Edition Vitale and Giglierano Chapter 13 Communicating with the Market Prepared by John T. Drea, Western Illinois University

Elements of the Promotional Mix Personal Selling Advertising Sales Promotion Public Relations

Exhibit 13-1 A Model of the Communication Process

Basic Terms Marketing communications Public relations 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)

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.

Message interpretation is subject to… Selective Exposure Refers to the actual media to which a receiver may be exposed. Selective Attention Only useful information is seen or heard. It is used to prevent information overload. Selective Retention Refers to the “storage function” – the portion of a message retained that is recalled.

What Promotion Can and Can’t Do 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

There are three categories of sales promotion. focused on the sales team Sales promotion focused on channel intermediaries Sales promotion focused on customers

Public Relations PR defined: PR activities: 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)

Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications DEFINITION STAGE Process Flow Stages Nonpersonal Communications Can… Problem definition Solution definition Product specification Help identify problems Provide information for defining solutions Help customers remember vendors

Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications SELECTION STAGE Process Flow Stages Nonpersonal Communications Can… Solution provider search Acquire solution provider(s) Provide information on vendors Provide information on products and partners

DELIVER SOLUTION STAGE Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications DELIVER SOLUTION STAGE Process Flow Stages Nonpersonal Communications Can… Customize as needed Install/test/train Deliver service and training information

Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications END GAME STAGE Process Flow Stages Nonpersonal Communications Can… Operate solution Reach end result Evaluate outcomes Determine next set of needs Provide reinforcement Deliver service information Share performance data for evaluation

Convergence of the Promotion Mix Direct Mail Support Literature Sales and Convergence of the Promotion Mix Print Promotions Corporate Advertising Channel Promotions Promotional Merchandise

Types of B2B Print Promotions Advertising in Trade Journals Directory Advertising Consumer Media

Corporate Advertising Why use 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

Types of Sales & Support Literature (also called collateral materials) Catalogs, Product Brochures, and Data Sheets Capabilities Brochures Technical Bulletins, Test Reports, and Application Histories

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?

Internet and Web Communications in Business-to-Business Marketing The Web is used for two primary functions in B2B marketing: Facilitating Product Sales and Channel Functions Communicating with Customers and Channel Members

B2B web sites can help buying center members in several ways: Recognize and understand their problems

B2B web sites can help buying center members in several ways: Recognize and understand their problems Collect and compare information about alternative solutions and costs

B2B web sites can help buying center members in several ways: Recognize and understand their problems Collect and compare information about alternative solutions and costs Collect and compare information about alternative suppliers, partners, and delivery of value

B2B web sites can help buying center members in several ways: Recognize and understand their problems Collect and compare information about alternative solutions and costs Collect and compare information about alternative suppliers, partners, and delivery of value Provide access to training manuals, user manuals, and troubleshooting guides for use during installation, testing, and product use

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.

Other Types of E-Applications in B2B Communications Newsletter Advertising Newsletters Other Types of E-Applications in B2B Communications On-Line Seminars Opt-In e-mail Effective Internet Communications