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

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

3 Exhibit 13-1 A Model of the Communication Process

4 Basic Terms 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 -P-Public relations Advertising & Sales Promotion (A & SP)

5 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.

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

7 What Promotion Can and Can’t Do Promotion can… –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

8 There are three categories of sales promotion. Salespromotion focused on the sales teamSalespromotion focused on channelintermediaries Salespromotion customers

9 Public Relations PR defined: –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)

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

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

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

13 Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications 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 END GAME STAGE

14 Convergence of the Promotion Mix Print Promotions CorporateAdvertising Direct Mail Sales and Support Literature ChannelPromotions PromotionalMerchandise

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

16 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 Why use corporate advertising?

17 Types of Sales & Support Literature (also called collateral materials) Catalogs, Product Brochures, and Data Sheets CapabilitiesBrochuresTechnicalBulletins, Test Reports, and ApplicationHistories

18 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?

19 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 Facilitating Product Sales and Channel Functions Communicating with Customers and Channel MembersCommunicating with Customers and Channel Members

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

21 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

22 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

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

24 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.

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