1. Business Marketing Integrated Marketing Communications & CRM Dr. Dawne Martin November 8, 2011

2. Learning Objectives To understand how integrated marketing communications is used in the business-to- business context To identify the difference between business- to-business communications and consumer communication To understand how the role and goals of business-to-business communication varies

3. Customer Relationship Management (CRM) “…process that addresses all aspects of identifying customers, creating customer knowledge, building customer relationships and shaping their perceptions of the organization and its products” (p.304) –Determining how to deliver value –Determining how customer’s wish to interact –Setting appropriate expectations

4. Integrated Marketing Communications Strategic, two-way communications targeted at specific customers (and their information needs) and their needs, all coordinated through a variety of media Roles of Business-to-Business Marketing Communication –Create and Strengthen Image –Create Favorable Climate for Sales People –Generate Sales Leads –Close Sales

5. IMC Planning Process Set communications goals-- strategic & tactical –Determine audience –Determine information & desired action Strategic goals: What do you want it to do? Tactical goals: Desired outcomes for specific communications Action goals Place messages in appropriate media Measure results Make adjustments to messages or media

7. Goals Strategic goals -- what will the overall communications strategy accomplish? Tactical goals & Action -- desired outcome for specific communications? Positioning Customer Retention Generating Direct Sales Generating Requests for Information Generating Trade Show Attendance Generating Leads for Sales Force Gathering Additional Information Supporting Channels of Distribution

8. Hierarchy of Effects Awareness Interest Knowledge Liking Preference Purchase Publicity, direct marketing, advertising, trade shows, internet Telemarketing, direct marketing, publicity & PR, personal selling, internet Personal Selling, direct response, telemarketing, internet

9. Prospecting Funnel Anderson & Narus, Business Marketing Management, Prentice Hall, 1999 Communications Objectives Leads Inquires Prospects New Customers Established Accounts Loyal/Profitable Customers Cost & Impact of Promotion Tools Awareness Interest Evaluation Trail Adoption Social Media, Media Advertising Event Marketing Publicity Brochures, Direct- Mail, Catalogs, Fax Marketing, Disk & CD Demos WWW Sites, Videos, Trade Shows, Demo Centers, Telemarketing, Field Sales, Strategic Accounts Programs Cost & Impact High Cost & Impact

10. Communications Strategies Customer relationship communication: strengthen customer relationships, meet growth objectives –Proactive Communications Identify all communications opportunities Focus on need to minimize costs of acquisition –Make dialog easy –Make it easy to respond Customer acquisition communication –Convenience buyer to receive the communication

11. COMMUNICATION TOOL KIT 1.ADVERTISING—Directed to a general audience, primarily through trade publications, the web, television, radio, billboards 2.DIRECT MARKETING—Directed to a specific audience to generate leads and generate sales through the mail, by fax or Internet and catalogs 3.PUBLIC RELATIONS—Focuses on relationships to create goodwill and support relationships 4.INTERNET & Social Media —User groups, website information and support and e-mail for communicating 5.TRADE SHOWS—Exhibits and demonstrates products and services in a public venue with personal interaction 6.TELEMARKETING—Inbound and outbound electronic communication allowing greater feedback opportunities 7.PERSONAL SELLING—Adaptable selling method established by one-on-one contact 8.MARKETING RESEARCH—Capturing information that will enable stronger customer relationships 10-11

12. Create or Strengthen Image Create Favorable Climate for Salespeople Generate Sales Leads Close Sales THE ROLES OF ADVERTISING Exhibit 10-6 10-12

13. WHERE MARKETING COMMUNICATION DOLLARS ARE SPENT 24.8% Direct Marketing Market Research Online Marketing Premiums & Incentives Public Relations 4.2% 5.8% 3.1% Sales Force Management Other Advertising Trade Shows Sales Promotion 18.0% 16.9% 4.4% 4.2% 4.3% 5.8% 7.7% 24.8% 3.1% 10.8% 18.0% 16.9% 4.4% 4.2% 4.3% 5.8% 7.7% 24.8% 3.1% 1 0.8% Exhibit 10-8 10-13

14. THE BUDGET BREAKDOWN METHOD (Allocates Total Available Budget) TOTAL AVAILABLE BUDGET FUNDS Trade Show Mail Radio Magazines Newspaper Internet Sales Force Allocated to: Exhibit 10-10 10-14

15. THE BUDGET BUILDUP (Creates Total Budget) Trade Shows Mail Radio Magazines Newspaper Internet Sales Force How Much is Needed for Objective Creates Total Budget Exhibit 10-10 10-15

16. Budget Time How can Maria justify the increase in budget she has requested? What information does she need to support her trade show expenditures? How can she address the comments about trade shows made by the national sales manager, Shelly Tap.

17. Questions Advertisers use cost per thousand (CPM) measure as a standard for first-cut comparisons across different media. CPM numbers might run $45 for a jazzy color ad in a trade magazine, $450 for a direct-mail program and $4500 for a telephone effort. Brief outline why mail and telephone costs are often justified, despite the apparent advantage of print media.

18. Summary Communications must be coordinated across all media types Different media work better for various communications objectives More B2B advertising expenditures are moving to consumer media (like TV)