Chapter Eleven Communicating via Advertising, Public Relations, and Trade Shows

11-2 Learning Objectives Advertising Set goals for advertising Develop advertising strategies to achieve those goals Measuring advertising performance Public Relations Describe two forms of public relations Trade Shows Show selection How to get most from a trade show

11-3 Overview of Advertising The biggest part of the marketing communication budget is devoted to advertising The primary objective of business advertising is to talk to large groups ( potential investors in the company, influencers of government regulation, and even buyers ) Advertising influences action by: 1.Creating awareness of the company’s products, services and brands 2.Strengthening attitudes – its power varies by the individual, by attitude strength, and by environmental factors; Individuals that have not yet formed an attitude, or whose attitudes are weakly held, are likely to be more easily influenced – those having strong, long-held attitudes, much less so. 3.Leading directly to action

11-4 The Four Key Advertising Objectives Positioning Objective Action Objective Audience Objectives Performance Objectives

11-5 Positioning Objectives Develop the brand personality Create climate for personal sales calls Support other communication channels Stimulate derived demand Project financially healthy image Support distributors or other sellers Create favorable image among difficult-to-match influencers.

11-6 Action Objectives Generate leads for field or telemarketing salespeople Increase attendance at a trade show Increase distribution of catalogs Secure investment in company through sale of equities Generate sales

11-7 Advertising Strategy The Creative PlanThe Media Plan The Content of the Message OR What We Want To Say The Channel of Communication OR How We Will Deliver What We Say

11-8 Advertising Strategy Both plans should result from objectives set for the advertising communication Creative plan – advertising appeal ( the underlying motivation or reasons for the audience to pay attention to the advertising message ) 1.Rational appeal – the use of good logic and sound reasoning (price, quality and durability) 2.Emotional appeal – the use of various states of emotion (happiness, joy, sadness or fear) to attract the audience’s attention 3.Social appeal – the use of socially desirable messages (minimizing damage to the environment) Media plan – a function of cost and access. Each medium has its communication advantages and disadvantages ( television, radio, outdoor advertising, magazines and Internet)

11-9 Measuring Advertising Performance Any attempt to evaluate advertising effectiveness must compare results to objectives Recall – Measure attention and memory impact: did the ad attract attention? Was it remembered? Inquiries – An action measure: did the ad cause readers to take actions? Position – Measure attitude change: did the ad change the market’s attitudes toward our product? Reach – Readership audit (reach is the total number of buyers that see an ad): does this magazine reach our desired audience? CPM (cost per thousand) – Use CPM to guide media selection (divide cost by readership, expressed in thousands): how does the reach of this magazine compare to the reach of a similar magazine, relative to how much each charges?

11-10 Measuring Advertising Performance THE MEASURE:DETERMINED BY: RECALLSurveys/Focus groups INQUIRESCard/Coupon Response, 800- Number Response POSITIONPre- & Post-advertising Attitude Surveys REACHEstimate Your Readers Based On Total Circulation/ Readership Audits CPM (cost per 1000)Divide Cost of Ad by Readership Expressed in 1000s

11-11 Public Relations Public relations – building and maintaining a positive image / reputation for the firm A good image is always desirable. -In good times, a favorable reputation aids all of the firm’s efforts – from recruiting the best employees to marketing its products -In crisis, a long-standing positive reputation helps to blunt criticism and aid the firm in dealing with the problem Two forms of PR -Publicity: the generation of news about a person, product, or organization that appears in broadcast or electronic media; there is no charge for publicity by the media, but no obligation to use it. Nor can the marketer control how much information is used. -Public affairs: part of PR that deals with community groups

11-12 Writing News Release: a checklist A news release (press release) is a brief memo or report containing news information, such as the announcement of a new product, award, or change in management. Identify yourself and provide contact information Provide a release date for a newspiece Use a wide margins and spaces Keep it short, one page is preferred Proof the copy, avoid any typos and mistakes Don’t follow up about receiving the release – editors don’t like to be pressured Don’t ask for tear sheets – don’t expect the editor to send you a copy Don’t promise advertising for a free editorial Send thank you for running the article

11-13 Tips for delivering a winning news release 1.Make sure your subject is newsworthy 2.Include samples when/where /if possible 3.Produce 3-minute demo DVD to accompany release

11-14 Trade Shows A trade show – a formal exhibition for companies to introduce and demonstrate their products to potential customers, and may ultimately lead to sales Why trade show? 1.Some visitors to trade shows may not purchase the products on the day of the visit, but they can be excellent leads for future business 2.An opportunity to recruit distributors for the company’s products 3.Enables participants to monitor the competition since competitors’ products will also be on display there Resemble and differ from Ad -Planned in the same way with the same types of concerns and audience focus as ad -A pleasant diversion with a strong social component, combines demonstrations with in-person/hands-on experience, and benefits from the ability to provide tailored presentations

11-15 What trade shows mean to B2B? 1.Buyers depend on trade shows for information and demonstration 2.Trade shows provide opportunities for dialogue 3.Trade shows reach new prospects 4.Trade shows strengthen customer relationships 5.Trade press relationships can be developed Trade shows provide an effective way to visit with current customers, create new customers and strengthen relationships with the press.

11-16 Trade shows selection questions Will the quality of the show audience be significant? Net Buying Influence is percentage of show audience that influences buying decisions Total Buying Plans is percentage of show audience planning purchases within next twelve months Will there be significant press coverage generated? Will there be a large number of competitors at the show? More is better. What is the type of show that best suits my needs? Trade Association Conventions For-Profit Shows Produced by Exhibition Companies Regional vs. National vs. Global Shows Horizontal vs. Vertical Shows

11-17 Getting the most from a trade show Pre show promotion –> show management –> post-show follow up 1.SELECT BEST TYPE OF SHOW TO FIT YOUR BUDGET AND OBJECTIVES 2.DEVELOP A PRESHOW PROMOTION CAMPAIGN—Direct mail, advertising, special invitations 3.PLAN FOR SHOW MANAGEMENT—The attention getter, the message, the close 4.COMPLETE POSTSHOW FOLLOW-UP—Lead follow-up, communication 5.MEASURE EXHIBIT PERFORMANCE—Compare objectives to results, visitors and sales