B2B Advertising

Why Advertise? I know half my advertising works; I just don’t know which half. -- John Wannamaker The moral being, we can’t always see when advertising works, but it does by influencing action.

The Role of Advertising 1.Creating awareness 2.Strengthening attitudes 3.Lead buyers to an action 4.Influencing financial performance

The 2 Elements of Advertising The creative plan –The content of the message The media plan –The channel (means) of communication

Advertising Decision Stages Determine objectives Determine creative plan Select media Measure performance

Positioning Objectives Develop the brand Create favorable climate for sales calls Support other communication channels Stimulate derived demand Project healthy financial image Support distributors

Action Objectives Generate leads for salespeople Increase attendance at a trade show Increase distribution of catalogs Increase website visits Secure investment Generate sales

Content Advise Focus on the target customer’s buying criteria Speak in the customer’s language Avoid too much information Avoid corporate “chest-pounding” Make sure to tell a story – how the customer benefits

Media Selection Criteria Which media do target customers expose themselves to the most? Reach –Number that see the ad Frequency –Number of times an individual buyer sees an ad Cost per thousand –Cost of an ad divided by the number of readers (in thousands)

Setting Ad Budgets: Commonly Used Methods Percentage of Sales Allocate some percent of sales to advertising. Makes advertising a consequence rather than a determinant of sales and profits. Useful only if possess VALID historical data Most commonly used method

Setting Ad Budgets: Commonly Used Methods Affordability Method Firm spends on advertising what it has available to spend Good cash flow control Most common with small firms Sales drive the advertising

Objective-Task Method An attempt to relate advertising costs to the objective it is to accomplish. Focuses on the communications effects of advertising, not on the sales effects. Generally considered the “best” method. Setting Ad Budgets: Commonly Used Methods

Recall Inquiries Position Reach Frequency Cost per thousand Evaluation Measures