Business Marketing Communications: Advertising and Sales Promotion Chapter 16

Promotions Why are promotions so important? Why are promotions so important? The importance of salespeople The importance of salespeople Why?Why? Other methods Other methods

The Role of Advertising Integrated Communication Program Integrated Communication Program Blend with objectivesBlend with objectives Enhancing Sales Effectiveness Enhancing Sales Effectiveness Does it help?Does it help? $$ per salesperson $$ per salesperson Higher ratings Higher ratings Supplier reputation Supplier reputation Increased brand awareness Increased brand awareness Gross margins Gross margins

The Role of Advertising Increasing Sales Efficiency Increasing Sales Efficiency Actual customersActual customers Potential customersPotential customers Creating awareness Creating awareness Unawareness  Awareness  PreferenceUnawareness  Awareness  Preference Interactive Marketing Communications Interactive Marketing Communications Impact of the internetImpact of the internet Limitations of Advertising Limitations of Advertising

Managing B2B Advertising 1. Set Advertising Objectives and Define Target Market 2. Determine the Advertising Budget 3. Develop the Message 4. Select the Media 5. Evaluate Advertising Effectiveness

Managing B2B Advertising Set Advertising Objectives & Define Target Market Set Advertising Objectives & Define Target Market Know what you want to accomplishKnow what you want to accomplish Written objectivesWritten objectives Four characteristics Four characteristics Three common examples Three 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 Advertising Determining the Advertising Budget Determining the Advertising Budget Two methodsTwo methods Rules of thumb Rules of thumb When to useWhen to use TypesTypes Consequence of salesConsequence of sales Objective-task method Objective-task method How it worksHow it works Establish objectives Establish objectives Assess communication needed Assess communication needed Define goals in measurable terms Define goals in measurable terms Estimate budget needed to achieve goals Estimate budget needed to achieve goals Determinant of salesDeterminant of sales Passing the thresholdPassing the threshold

Managing B2B Advertising Developing the Advertising Message Developing the Advertising Message Highlight attributesHighlight attributes PerceptionPerception Attention Attention Interpretation Interpretation Example: Technical advertisementsExample: Technical advertisements Focus on benefitsFocus on benefits Focus on what customers want and Focus on what customers want and Focus on company’s ability to reach them Focus on company’s ability to reach them Marketing researchMarketing research

Managing 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 publications Horizontal publications Ad Age, Marketing NewsAd Age, Marketing News Vertical publications Vertical publications Chemical BusinessChemical Business Requester publications Requester publications Why?Why?

Managing B2B Advertising Advertising Cost Advertising Cost Measuring efficiencyMeasuring efficiency Cost per thousand Cost per thousand Cost of reaching target market Cost of reaching target market FrequencyFrequency How often to run the advertisement? How often to run the advertisement?

Direct Marketing Tools Direct Mail Direct Mail BenefitsBenefits DisadvantagesDisadvantages Interactive Marketing Interactive Marketing Customer Relationship MarketingCustomer Relationship Marketing

Measuring Advertising Effectiveness What benefits does advertising provide the company? What benefits does advertising provide the company? Measuring Impact on Purchase Decision Measuring Impact on Purchase Decision Indirect communicationIndirect communication Measurement Program Measurement Program BenchmarkingBenchmarking Common benchmarks Common benchmarks

Trade Shows Magnitude of trade shows Magnitude of trade shows Advantages Advantages Costs- about $250 Costs- about $250 International trade shows International trade shows Investment returns Investment returns Trade show objectives Trade 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 Shows Selecting the Show Selecting the Show Which one to go to?Which one to go to? Net buying influences Net buying influences Total buying plans Total 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 buy

Trade Shows Managing the Exhibit Managing the Exhibit Generate interestGenerate interest Salespeople trainingSalespeople training Internet usageInternet usage Evaluating Performance Evaluating Performance AttractionAttraction ContactContact Conversation efficiencyConversation efficiency