Business MarketingIntegrated Marketing

Communications & CRM

Dr. Dawne Martin

November 8, 2011

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

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

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

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

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

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

Prospecting FunnelAnderson & Narus, Business Marketing Management,

Prentice Hall, 1999Communications

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

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

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

Create or Strengthen Image

Create FavorableClimate for Salespeople

Generate Sales Leads

• Close Sales

THE ROLES OF ADVERTISING

Exhibit 10-6

10-12

WHERE MARKETING COMMUNICATION DOLLARS ARE SPENT

24.8%

Direct Marketing

MarketResearch

OnlineMarketing

Premiums & Incentives

PublicRelations

4.2%

5.8%

3.1%

Sales ForceManagement

Other

Advertising

TradeShows

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%

10.8%

Exhibit 10-8

10-13

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

THE BUDGET BUILDUP(Creates Total Budget)

Trade Shows

Mail

Radio

Magazines

Newspaper

Internet

Sales Force

How Much is Needed for Objective

Creates Total BudgetExhibit 10-10

10-15

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.

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.

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)