1. Advertising’s positive effect on Sales

2. The Case For Sales Calls
CONS:
PROS:
In face-to-face discussion a person selects only the portions that don’t conflict with what he already thinks
Not all salesmen are good story- tellers
You can only talk to those who will listen
Average salesmen see 50 different people
Cannot reach hidden buying influences
Asking for order
Probing
Dealing with objections
Let’s take the case for sales calls. They can probe, ask for the order, and deal with
objections. There isn’t an BtoB ad in the world that can do that.
But on the downside… there are some problems.
A person tends to select only those portions of the sales call that don’t conflict
with what the customer already thinks.
Not all salespeople are good story tellers. If you have 15 sales people,
you probably have 15 different versions of what it means to do business with
your company.
If you aren’t face-to-face or on the phone…nothing is happening to effect
your customers attitudes and behavior. You can only talk to someone who
will listen. Remember this the next time you see your salespeople screwing
around with their databases. They may be organizing, but they aren’t selling.
The average industrial salesperson only sees different people in a year’s
time. That’s shocking, but not bad. They are calling on those that can give them
the order, but nothing is working on the hidden buying influences. Those that
can say no… who you never know or see.

3. The Case For Advertising
PROS:
CONS:
Communicates uniform sales message to entire market
Customer reads sales message on his/her own terms
Constant cost-inexpensive
Enhances memory and aids every salesman and distributor
Reach hidden buying influences
Can’t probe
Can’t close
Misunderstood – under utilized
Now, let’s give an equal look at advertising,
What advertising can do is…
It communicates a uniform sales message to your entire market.
The customer reads the message on his own terms. This is no small point.
Because the customer can choose to not read the ad, if he chooses to read it,
the ad becomes meaningful information. In effect he is lifting the information off
the page and putting it in his head. It is a constant cost it is relatively inexpensive.
And because it enhances memory, it works in all your sales peoples territory.
Compare this to the similar cost of hiring a salesperson. He or she will do the
job in their own territory, but nowhere else.
Lastly, advertising can reach hidden buying influences.
What it can’t do is…
1. Probe
2. Close
3. And because it is misunderstood, it is underutilized.

4. Cambridge Psychological Society Simulated the Ideal Situation
Key Decision Makers
All Salesmen Called In
Presentations Made
The ideal situation was simulated at the Cambridge Psychological Society.
They did the equivalent of media days, where all the key decision makers
were put in a room, all competing sales people called in to make their
presentations, and a decision promised in two-weeks.
After two-weeks...
After two weeks….

5. … less than 10% of the specific points discussed were remembered
42% of “what was remembered” was
substantially incorrect
At an average cost of $300 per industrial sales call, increasing retention and identifying the best use of a sales person’s time is paramount
Less than 10% of the specific points were remembered, and 42% of what
was remembered was substantially incorrect.
So we all have sales forces out doing their jobs, spending on average $300
per face-to-face call in the hopes that maybe 5% of what they say will be
remembered.
This is not the most efficient way to reach our markets.
Source: Government Product News average cost per sales call

6. How do you increase retention & preference?

7. Professor Morrill’s Research
It was done in a very extensive way to finally answer the question.
What am I getting for the money I am spending on advertising?
Over a 4-year period, the researchers looked at 1000 advertising schedules
covering 90 different industrial product lines. They conducted over 100,000
interviews at 30,000 buying locations.
The purpose was to find common effects on all types of industrial products.
The point was to head off the comment from skeptics, “Yea it’s interesting,
but my product is different”. It isn’t different, selling is selling and
marketing is marketing.
Source: Harvard University, John E. Morrill; Industrial Advertising Pays Off

8. Two Identical Groups were Studied on the following metrics
Magazines read
Sales calls
Purchases
Attitudes
Morrill conducted 100,000 interviews at 30,000 buying locations, asking
influential buyers about specific manufacturers/suppliers. For instance:
What were the attitudes of the influential buyers toward various manufacturers?
How much of this product was purchased at each location?
How many sales calls from the manufacturer did the influential buyer receive?
And finally, what magazines the buyers read.
Using a statistical weighting process, a computer created two groups, which could
be compared with each other -- these two groups were identical in every known
way but one -- the fact of advertising exposure. Therefore, if there were specific
differences between the exposed and unexposed groups -- with all other things
being equal -- then the value of advertising could be established.
Source: Harvard University, John E. Morrill; Industrial Advertising Pays Off

9. When the only variable was Advertising....
Magazines read
Sales calls
Purchases
Attitudes
Advertising
Magazines read
Sales calls
Purchases
Attitudes
Advertising
Magazines read
Sales calls
Purchases
Attitudes
Advertising
To illustrate, pretend your company was part of the study. Let’s say you
only advertised in one magazine. By separating the customers into two
groups, exposed and unexposed, and if the exposed group bought more,
with the product the same, then you can see the value of advertising.
Source: Harvard University, John E. Morrill; Industrial Advertising Pays Off

10. Differentials of Exposed over Unexposed
Buyers’ Opinions About a Company &
it’s Sales Force were Positively Affected
Differentials of Exposed over Unexposed
Preferred as Supplier %
Willing to Consider %
Leads in Quality %
Leads in Price %
Leads in Delivery %
Best Technical Assistance %
Sales Lead Product Knowledge +63%
Most Enthusiastic Sales %
Share of Market (customers) +19%
Share of Market (dollars) +9%
The proportion of exposed buyers naming this company as the preferred supplier was 23% greater than the proportion of unexposed buyers.
So what the Morrill Study found was that the exposed group of customers had a
completely different view, and behavior towards the manufacturer than the
unexposed group did. Preferred as supplier =+23%, Lead in delivery = +20%,
Best technical assistance = +43%, salesman led in product knowledge =+63%
Most enthusiastic sales = +100^% differential.
But wait a minute… it’s the same product, the same salesperson, yet the
exposed group has completely different attitudes and behavior than the
unexposed. What gives?
Source: Harvard University, John E. Morrill; Industrial Advertising Pays Off

11. The Further Case for Advertising
The total marketing effort from beginning to
end consists of the following steps 1 2 3 4 5
Create Awareness
Demonstrate Competitive Advantage
Make Specific Recommendations
Close
Customer Service and Follow-up
Let’s look at advertising a little deeper.
I maintain that to market or sell anything, you have to do these things, in
order. They can happen in a flash, but they have to happen and this is
so important, that I would ask… can you think of anything in the marketing
function that doesn’t fall anywhere in these five functions.
1. Create Awareness: They can’t buy what they don’t know exists.
2. Demonstrate Competitive Advantage: This is making sure that your
product is understood, seen, demonstrated, and compared to competitive
alternatives. This of course means salescalls, shows, and advertising.
3. Make Specific Recommendations: This is the proposal, the written bid,
but also information that is contained in a good ad.
4. Close: We all know what this is… it’s getting the order.
5. Follow-up and service: Many people think that advertising has no role
here, but in fact it does. Think of the last big item you bought. Don’t you
always read or watch the commercial? It reinforces the purchase
decision you made.

12. Marketing Logic Grid 100% TOTAL % of marketing dollars
Steps required to
complete the sale
% of the
marketing effort
Personal
(sales calls)
Non-Personal
(advertising)
What % of your marketing
$ and effort are spent in
each of these areas?
Build Basic Awareness
Demonstrate Competitive
Advantage
Make Specific
Recommendations
Get the Order
Customer Follow-up
And Service
(Do this on paper or a flip chart).
Imagine that you are the marketing director for a new product introduction.
Thinking linearly, how much would you allocate to the single function of
creating awareness? (say..20%)
Now, how much would you allocate to demonstrating competitive aware-
ness? (say… 25%)
Making a specific recommendation? (30%)
Closing?(10%)
Follow-up and service? (15%)
Is this logical? Because these are the only things you can spend your money
on, doesn’t it make sense to plan it this way?
100%
100’s in a year
100,000’s in a year
TOTAL

13. When your marketing dollars are spent entirely on personal sales calls….
The next slide depicts a typical allocation of marketing efforts based on the essentials:
Creating Awareness
Demonstrating a Competitive Advantage
Making Recommendations
Closing
Service and Follow-up
It also depicts what happens when all of the marketing dollars are spent on your sales force. You are ultimately asking your sales force to do what advertising does best
Building Awareness

14. Steps required to Complete a sale
Marketing Logic Grid – Steps to Complete the Sale
% of marketing dollars
Steps required to Complete a sale
% of Marketing
effort
Personal
(Sales Calls)
Non-Personal
(Advertising)
Build Basic
Awareness
20%
20%
80%
Demonstrate
Competitive Advantage
25%
30%
70%
Make Specific
Recommendations
20%
60%
40%
After you have gotten them to allocate the percentage of their resources
Okay, now let’s look at this in a linear fashion. You have said that you want to allocate 20% of
your marketing resources to creating awareness. How would you allocate this as a percentage
of 100%. Since the only issue is creating awareness, doesn’t it make sense to spend them in
print simply because you can reach the most buyers at the lowest cost? (suggest 20-80%)
Demonstrate Competitive Advantage: This is a little more personal, includes trade shows and
demonstrations, but aren’t well-crafted ads really demonstrating competitive advantage?(suggest 30-70%
Make Specific Recommendations: This is rhe formal proposal, usually presented. More of
a personal job (suggest 60-40%)
Close: This is the salesman’s job, no industrial ad is going to do this. (100-0%)
Follow-up & Service: Most people think this is a personal job, and a lot is. But think about it, don’t
you read the ads of the products you just bought for yourself? Why? You are reinforcing the fact
that you made a good buying decision. Print can do some of this.
Now, let’s assume the 4th quarter doesn’t look good. You do what most companies do, cut the ad
budget. You have just lost control of your marketing. In the best of worlds, all of your resources migrate
to the personal side, and you hope your salespeople now create awareness and demonstrate competitive
advantage. But the reality is that they won’t. They will close and make recommendations. So while your
spending your most important dollars doing what your people do not do best, your competition is spending
their dollars on what everyone does best. Over time, you lose!
20%
100% 0%
Get the Order
Customer Follow-up
& Service
15%
70%
30%
100%
TOTAL
100’s in a year
100,000’s in a year

15. Advertising
Builds positive impressions on many levels for companies and allows sales people to concentrate where their abilities will have the biggest influence