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Ch13 Adv and Sales Prom
Ch13 Adv and Sales Prom
Advertising and sales promotion supplements personal selling efforts. This chapter considers:
The powerful role of social media can assume in business marketing strategy 2. The decisions that must be made when forming a business advertising program 3. The business media options, including the powerful role of Internet marketing communications 4. Ways to measure business advertising effectiveness 5. The role of trade shows in the business communications mix and how to measure trade show effectiveness
1.
Introduction
Business has learned that not even the best
efficiencies need to be sold through effective communications to everyone from users to influencers to decision makers.
a. b. c. d.
Due to Product complexities (technical), The small number of buyers, The high price products/services, and Extensive negotiation process
SALESPERSON!
There is a need for other non-personal requisites such as: Advertising Catalogs Internet presence Trade shows Promotional spending
All have a unique way of getting the message out, however, they dont close deals as well as personal selling!
The CDJ is the customers decision process in selecting a particular product Often find a mismatch between media used and the touch points at which buyers are best influenced CDJ includes two critical steps
1. Inspiration: use online channels to find, create and compare 2. Sharing: relate experiences using a variety of social media
Key: Customer experience includes everything from discussions on social media to meetings with sales people. Social media facilitate targeted, personalized contact across the customer
Be an integral part of an integrated communication programs Enhance sales effectiveness Increase sales efficiency Create awareness Create preferences for company, products, etc. Facilitate interactive marketing communications
advertising and personal selling makes the selling job easier and more efficient.
People
who were aware of the ad thought the salesperson was more knowledgeable than companies that dont advertise.
and gross margins also increase when advertising is employed.
Profits
Advertising
1.
2.
3. 4.
14
The
Internet has created a two-way communication process, permitting the marketer and customer to more rapidly exchange information.
flexibility has allowed the marketer to personalize communications and customize solutions.
This
Effective B2B communication needs to be integrated among all media methods; however, it does have its limitations. It:
1. Cannot
create product preference for many products. 2. Cannot close a sale! 3. Cannot substitute for personal selling. 4. Can supplement personal selling but not replace it.
Advertising is only one aspect of an entire marketing strategy. The advertising decision process begins with formulating advertising objectives.
Figure 13.1
1. Advertisings
mission flows directly from the overall marketing strategy. 2. Advertisings job is to:
a. b. c. d. Create awareness Provide information Influence attitudes Remind buyers about product and company
ADVERTISING OBJECTIVES
Advertising
1. Realistic
2. Measurable 3. Specific
Example:
To be effective, the advertising campaign shall increase awareness from 15% to 30% during the period from April 1st to June 31st.
One objective of advertising is to reach influentials who are often difficult to contact via personal selling. Influentials are interested in specific features and attributes that solve certain problems. Advertising needs to focus upon that issue.
Marketers must understand who the target market is and how to reach them for an advertising campaign to be effective.
1. Copy
2. Theme 3. Color, design, etc.
4. Media
5. Tactics
2.
Advertisings purpose is to inform and influence sales, but it is not to create sales. A dysfunctional policy of tying advertising budgets to % of sales defeats the purpose. For example: If there are no sales, then is there no advertising budget? If sales are declining, do you cut advertising costs too? Does that make sense?
A better approach for allocating advertising costs is to relate them to advertising objectives. The Objective-Task Method focuses on the communications effects of advertising Not on the sales effects.
1.
Establish objectives in terms of sales volume, market share, profit contribution and market segments. Assess all communication functions to realize these objectives. Define specific measurements required to meet these objectives such as market share. Estimate the budget needed to accomplish them.
2.
3.
4.
The only way to assure success is to establish and measure against goals.
Another matter is the political side of the decision. The concern here is that internal politics often determine budgets, not the technique-driven process.
pass through a certain threshold before a meaningful message can be understood by the market to move product from awareness to preference.
1. 2.
3.
4.
Determine advertising objectives Evaluate target audiences buying criteria Analyze most appropriate language, format and style to present message. Then consider the message!
In business, perception is almost the same as truth. The message needs to attract the right person. In most cases, that is the decision maker. For an advertising messages to be considered, it has to: Attract the right persons attention, & Be interpreted properly. For example, techies respond to technical ads and non-techies respond better to non-technical ads.
Industrial buyers focus on solutions to business problems that considers: A better way to accomplish tasks A less expensive way to manufacture something A new approach to either make or save the company money A different way to free up time
a. b. c.
d.
One way to address this problem is to employ marketing research to delineate influencers criteria for buying in each segment.
Effective Ads
Effective ads are: A. Logical
B. Rational
C. Provide a clear description of the product D. Present product benefits clearly E. Details product quality F. Provide performance measures
B2B marketers are always looking for ways to communicate better with customers & prospects. Use of Internet microsites (specialized web pages that prospects jump to from an email or PR piece that contain videos) is providing excellent results. Use of online videos help customers and prospects from around the world solve their business problems. Videos are particularly effective for telling the story and producing serious leads.
Using proper key words or key phrases within the site is an absolute necessity for driving leads to that site. Ideas for successful Internet advertising include: Make sure site is search-crawler friendly Good key words must tie into solutions sought Create a relevant, targeted keyword list that reflects problem, product, etc. Write clear, compelling ads that use key words and isolate your value proposition Track results and measure everything
1. 2. 3. 4. 5.
Business Publications
There are more than 2700 business publicationsselecting the right ones is another difficult task. Horizontal Publications are directed at the specific task, function or technology regardless of industry. Vertical Publications are oriented to readers in a specific industry.
Business Publications
Many trade publications are requester publications.
This is where the reader is interested in a certain
subject and receives a certain publication for free in exchange for demographic information such as title, function and buying responsibilities.
Advertisers know who their desired audience are!
Cost of Advertising
Companies need to allocate an advertising
budget for:
Business Publications Sales Promotions Direct Marketing (mail & e-mail) Internet Advertising
Include:
Cost/1000 contact is one consideration Circulation based on the TARGET audience
a. Image, product and service promotion b. Sales force support by providing leads c. Distribution channel communications d. Getting pertinent information directly to influencials
Direct mail is efficient providing the list is good. Much direct mail is considered junk mail.
In order to successfully accomplish this, it is important to have all the systems in place first.
They include: a. E-mail acknowledgements b. Order entry c. Order fulfillment d. Money exchanges e. Follow-up contact f. Q&A service g. Troubleshooting systems
MEASURING EFFECTIVENESS
Rarely
do ads result in immediate business. But, it does create awareness hopefully leading to preference. Measurements can be direct or indirect. Direct communication is measured by: percent awareness. Indirect communications are measured by: word-of-mouth and understood
perceptions.
1.
Sound measurement program entails substantial advanced planning. The advertising strategist must determine: What is to be measured How to measure it In what sequence
2.
3.
Figure 13.2
Trade Shows
Another important form of promotion is
trade shows.
Effective selling message can be delivered to
Customers can get hands-on experience with product in one-on-one selling situation.
To develop an effective trade show communications strategy, certain questions need to be addressed:
What functions should trade show perform in total marketing communications program? To whom should trade show marketing effort be directed? What is companys appropriate communication mix at the show? How should trade show investments be audited?
5.
6. 7. 8. 9.
Discover decision influencers. Identify potential customers. Provide company product, service and information. Try to discover product application problems. Create sales. Handle customer problems. Build corporate image. Gather competitive intelligence. Enhance sales force morale.
Challenge Question: What trade show to attend? Answer: Attend trade shows that are attended by prospective customers. To find trade shows, use leading trade show directories such as: American Trade Show Directory ExhibitNet.com database Exhibit Surveys, Inc.
a. b. c.
Lead Generation
Trade shows are probably most important for lead
generation.
Attaining leads is so important to companies
Trade shows are different than personal selling even though one is selling never-the-less. The trade show is more theatrical, and contact is very short (5-10 min.), therefore the process is to: Sell the product first, Sell the company next, Sell the salesperson last. This is opposite to traditional selling situations.
Flows
Show Attendees
Tactical Activities
Pre-Show & At-Show Impersonal Promotional Activities Personal Promotional Activities
Contact w/Salesperson
Sales Leads
Source: Gopalakrishna & Lilien, A Three-Stage Model of Industrial Trade Show Performance, Working Paper #20, Marketing Science 14 (Winter 1995) :pp.22-42