Session 20 Advertising and Business Marketing

8/3/2019 Session 20 Advertising and Business Marketing

1/33

Role of Advertising and Sales

Promotion in B2B marketing


2/33

Elements of the PromotionalMix

Personal Selling

Advertising

Sales Promotion

Public Relations


3/33

Basic Terms

Marketing communications (Marcom)

Methods of communication other than personal selling

When public relations is performed at the corporate level, whatremains is called A & SP (nonpersonal communication).

Marketing communications

-Public relations

Advertising & Sales Promotion (A & SP)


4/33

The Role of Advertising

1. Integrated CommunicationPrograms to spread information on

Benefits

Problem Solutions

Cost Efficiencies

2. Enhancing Sales Effectiveness.

3. Increased Sales Efficiency.4. Creating Awareness.

5. Interactive Marketing

Communications.


5/33

Advertising Cannot

Substitute for effective personnelselling.

Advertising along cannot createproduct preference.


6/33

Advertising helps in

Increasing Sales Effectiveness

Increasing Sales Efficiencies

Creating awareness and product pull Interactive Communications especially

over the web


7/33

Advertising is only oneaspect of the entiremarketing strategy.

The advertising decision

process begins with theformulation ofadvertising objectives.

Equally important is the

evaluation and selectionof the media.

The Decision Stages forDeveloping the Business-to-

Business Advertising Program


8/33

Determining AdvertisingExpenditures

Percent of Sales

Allocate some percent of sales to advertising.

Makes advertising a consequence rather than adeterminant of sales and profits.

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.


9/33

B2B Advertising MessageDevelopment

Determine advertising objectives.

Evaluate the buying criteria of thetarget audience.

Analyze the most appropriate languagefor presenting the message.


10/33

Developing the Message

Focus on Benefits

Understanding Buyer Motivations

Perception

Grab AttentionEnable Customer to IntrepretFocus on Problem Solutions, Benefits and Cost

Efficiencies


11/33

Message interpretation is subject

toSelectiveExposure

Refers to theactual media

to which areceiver maybe exposed.

SelectiveAttention

Only usefulinformation isseen or heard.It is used to

preventinformationoverload.

SelectiveRetention

Refers to thestorage

function theportion of amessageretained

that is recalled.


12/33

The Primary Areas forAdvertising Evaluation

1. A sound measurementprogram entailssubstantial advancedplanning.

2. The advertisingstrategist mustdetermine;

1. what is to bemeasured,

2. how,3. in what sequence.

3. A pre-evaluationphase is required to

establish abenchmark.


13/33

The Power ofInternet Marketing Communications

1. Integrate the Internet into Media Plans.

2. Capture the Economies of the Internet.

3. Make Real-Time Changes.4. Create Unlimited Shelf Space for

Products.

5. Reach Customers on a Global Scale.6. Build One-to-One Relationships with

Customers.


14/33

B2B web sites can help buying

center members in several ways:

Recognize andunderstand their

problems


15/33




problems

Collect and compareinformation about

alternative solutionsand costs


16/33




problems



Collect and compare

information aboutalternative suppliers,partners, and delivery of

value


17/33




problems

Provide access to trainingmanuals, user manuals,

and troubleshooting guidesfor use during installation,testing, and product use




alternative suppliers,partners, and delivery of

value


18/33

Attracting Visitors to a Web Site

Banner advertising

Click-through rates have declined significantly

Attract visitors through search engines

Bid for the highest ranking, then pay for each click-through

Design the web site to achieve higher rankings onsearch engines

Purchase key words on search engines your ad isdisplayed when a search is for your key word.


19/33

Other Types ofE-Applications

in B2BCommunicatio

ns

Newsletters

Opt-In e-mail

Effective InternetCommunications

On-LineSeminars

Newsletter

Advertising


20/33

What Promotion Canand CantDo

Promotion can

Encourage awareness

Inform aboutavailability

Persuade trial

Build image

Encourage repurchase

Support selling efforts

Promotion cant Sell products that are

not needed

Substitute for a bad

product or poormarketing strategy.

Convince customers togo out of their waywhen a comparableproduct is available

Convince customers topay more thanperceived value


21/33

Trade Shows: Strategy Benefits

An effective selling message can be delivered to arelatively large and interested audience at onetime.

New products can be introduced to a massaudience.

Customers can get hands-on experience with theproduct in a one-on-one selling situation.

Potential customers can be identified, providingsales personnel with qualified leads.

General goodwill can be enhanced.

Free publicity is often generated for the company.


22/33

Trade-Show CommunicationsStrategy

1. What functions should the trade show perform inthe total marketing communications program?

2. To whom should the marketing effort at trade

shows be directed?3. What is the appropriate show mix for the

company?

4. What should the trade show investmentauditpolicy be? How should audits be carried out?

5. In a Trade Show Product CompanyIndividual while it is opposite in Personal Selling


23/33

Trade Shows

Determining whichtrade shows to attend?

Which shows areimportant tocustomers?

Which shows areimportant to industryanalysts?

Which shows have

the best audience forannouncements?

Which are likely to beattended by the targetaudience?

Trade show issues Who should attend?

Should your companyhave an exhibit?

What will the exhibitbe?

How can we capitalizeon the trade show

after it is over?


24/33

Important Measures by ExhibitSurveys

Net Buying Influences

Measures the percentage of the showaudience that has decision authority forthe types of products being exhibited.

Total Buying Plan

Measures the percentage of the audienceplanning to buy the products beingexhibited with the next 12 months.


25/33

There are three categories of salespromotion.

Salespromotionfocused on

the sales

team

Salespromotionfocused on

channel

intermediaries

Sales

promotionfocused oncustomers


26/33

Public Relations

PR defined: All efforts to obtain the attention and favorable

coverage of the firms business by third party mediaand publics.

PR activities: These can include special events, press tours, public

appearances by company executives, participation inmedia dialog, trade shows or guerilla marketing

activities (attention-getting small events to get thecompany noticed and obtain word-of-mouth)


27/33

Buying Decision Processes and Methods ofNonpersonal Communications

Process Flow Stages NonpersonalCommunications Can

Problem definitionSolution definitionProduct specification

Help identifyproblemsProvide informationfor defining solutionsHelp customers

remember vendors

DEFINITION STAGE


28/33



Solution providersearchAcquire solutionprovider(s)

Provide informationon vendorsProvide informationon products andpartners

SELECTION STAGE


29/33



Customize asneededInstall/test/train

Deliver service andtraining information

DELIVER SOLUTION STAGE


30/33



Operate solutionReach end resultEvaluate outcomesDetermine next setof needs

Provide reinforcementDeliver serviceinformationShare performancedata for evaluation

END GAME STAGE


31/33

Convergence

of thePromotion

Mix

Print PromotionsCorporateAdvertising


32/33

Types of B2B Print Promotions

Advertising inTrade Journals

Directory Advertising

Consumer Media


33/33

Types of Sales & SupportLiterature

(also called collateral materials)

Catalogs,Product Brochures,and Data Sheets

CapabilitiesBrochures

TechnicalBulletins,

Test Reports, andApplicationHistories

Documents

Session 20 Advertising and Business Marketing