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MODULE-7THE PROMOTIONAL STRATEGIES

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INTRODUCTION

Personal Selling is the dominant tool in the industrial markets

Communication startegy, advertising, sales promotion, andpublicity are important factors.

They can enhance the company's image, build recognition forits products and services.

Advertising and sales promotion have to be coordinated withpersonal selling, so as to bring an effective communicationstrategy.

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USE OF ADVERTISING ININDUSTRIAL MARKETS

Reaching buying influencers:

Reaching buying influencers is often a difficult taskas they constantly move out of their responsibility orchange jobs.

They can be reached by advertising through trademagazines and general business publications.

Creating Awareness:

They alert potential purchasers to problems.

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Enhancing the Sales Call:

Effective planning enhances the sales call and

creats interest. When buyers are exposed to industrials ads, their

opinion of the firm improves. Increasing Sales Efficiency:

For some industrial producers, particularlyproducers of industrial suppliers, ads may be theonly way to reach buyers.

When there is no product differentiation, suppliers

has to remind the buyers about their uniqueness.

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Supporting Channel Members:

The middlemen are involved in the producer's

support activities, resellers as they are positionedso close to their consumers

Industrial ad frequently provide and economical andefficient supplement to personal selling.

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INDUSTRIAL ADVERTISINGMEDIA

General Business and Trade Publications:

Horizontal publications deal with specific functions,taskes, technologies and cut across industry lines

Vertical publications are directed towards a specificindustry and may be read by anyone from personon assembly line to the president.

Directory Advertising:

It is a highly credible medium, and for many buyers,their basic purchasing tool.

The buyers has to purchase directories for use.

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Consumer Media:

It is effective media as it tends to experience a min

of competitionfrom other industrial advertisers. Direct Marketing:

Direct mail-offers huge adventage over the use ofbusiness or trade publications

Telemarketing-it is a marketing communicationstool that employs specialists who utilizetelecommunications and information technology toconduct marketing and sales.

Catalogs and Data Sheets-it is the firms' uniqueability to support the selling function. They use tocompare products, prices applications.data sheetsprovide detailed technical informations.

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THE USE OF SALES PROMOTIONIN INDUSTRIAL MARKET

Trade Shows:Effective use of trade shows depend on the rolethey are to play in the overall promotional mix and how welltrade shows objectives are established.

Premiums, Incentives, and speciality Advertising:promotional

contests and giveaways are less frequently used in industrialmarketing.

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APPROPRIATING ADVERTISINGFUNDS

Variables affecting Advertising and Promotional Budgeting:

Product life cycle

Purchase frequency

Product variables Market share

Customer concentration

Customer base

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Methods used to Set Advertising Budgets:

What we can afford

Objective and task Percentage of expected sales

Experimentation

Desired share of voice

Accept angry proposal

Match competition

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Steps in the Objective task method of appropriating advertisingfunds:

Determine market objectives

Determine advertising objectves

Determine audiance to be reached

Determine reach, frequency and continuity

needs

Determine appropriate media to reachaudiances

Establish other promotional support needs

Determine control measures

Estimate necessary promotional funds toachieve media and communication objectives.

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DEVELOPING MESSAGE

STRATEGY Specifies how advertising objectives are to be achieved by

defining the theme for the communication program and the

company image desired in the market place.

Industrial advertising must provide the reader with useful

information regarding the intangible benefits.

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Industrial message must be formulated on the basis of:

Identifying audience needs

Keep the message to important specifics Case histories

Short stories

Audience participation Straight exposition

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Developing the Media Plan

An effective media plan considers:

Reach-The number of different target audience

to be reached

Frequency-The number of times they have to bereached to have an impact

Continuity-The length of the time the campaign

is to run

Media selection-circulation, editorial content

Scheduling-monthly, weekly or daily publications

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Evaluating the Advertising PlanPre testing Post testing

Markets Tests advertising messagestrategy against various targetaudience to measure reaction

Determine extent to whichcampaign succeeded inreching target market

Motives Determine why buyers behaveas they do and what productbenefits appeal to them

Measure effect of motives

Messages Determines what the messagesays and how well it is said

Determines if ad was seen,remembered and believed

Media Determines the bestcombination of media to reachthe target market

Determines whether the mediaused was effective in reachingthe target market

Scheduling Determines the aspect toreach, continuity and frequency

Determines if scheduling waseffective

Budgeting Determines the optimum levelof expenditures

Evaluates the effectiveness ofthe budgeting starategy

Results Evaluates whether theobjectives were achieved ornot, whether to continue or tochange, and how to spend infuture