Universty Of Gonder

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT MARKETING MANAGEMENT
COURSE TITLE –BUSINESS MARKETING
COURSE CODE-MKTM3091
GUORP ASSIGNMENT
NAME------------------------------------------------------------------------------ID

1. Sara Siraj --------------------------------------------------------------------02088/11

2. Lakey Atalay -----------------------------------------------------------------02591/11

3. Yabsra Bzualem ------------------------------------------------------------02165/11

4. Samrawit Bedlu-------------------------------------------------------------02143/11

5. Woldemariam Derbew----------------------------------------------------02139/11

6. Sara Habtamu ---------------------------------------------------------------02094/11

7. Ruth Assefa ------------------------------------------------------------------02112/11

8. Wubshet Girma -------------------------------------------------------------02150/11

9. Yesuf Ali -----------------------------------------------------------------------02172/11

10. Yirga Mekete ------------------------------------------------------------------02087/11

11. Tesfaye Alemu ----------------------------------------------------------------02188/11

12. Yeshak Samuel ----------------------------------------------------------------05911/10

13. Temesgen Wbe ---------------------------------------------------------------06006/10

Summation date

Submited to Mr.DAreskedar A

GONDER ETHIOPIA
1.Discuss in detail the role of promotion in industrial marketing?
Meaning of Promotion
“What is Promotion?” Promotion is a marketing tool, used as a strategy to communicate
between the sellers and buyers. Through this, the seller tries to influence and convince the
buyers to buy their products or services. It assists in spreading the word about the product or
services or company to the people. The company uses this process to improve its public image.
This technique of marketing creates an interest in the mindset of the customers and can also
retain them as a loyal customer.
Promotion is a fundamental component of the marketing mix, which has 4 Ps: product, price,
place, and promotion. It is also an essential element promotional plan or mix, which includes
advertising, sales promotion, direct marketing, public relation, etc.,
Some methods of this procedure contain an offer, coupon discounts, free sample distribution,
trial offer, buy two items in the price of one, contest, festival discounts, etc. The promotion of a
product is important to help companies improve their sales because customers’ reaction
towards discounts and offers are impulsive. In other words, promotion is a marketing tool that
involves enlightening the customers about the goods and services offered by an organization.

1.Role of Advertising in Industrial Marketing

Advertising- refers to any form of presentation and promotion of ideas, goods or services.
Through advertising, you can inform, make known, persuade or stimulate the consumption of
the product or service. is the most preferred promotional tool in the consumer market  rather
than in the industrial market. It is preferred less by the industrial  marketers compared
to personal selling as they get to meet the customers  personally and understand their needs
better in personal selling. But still  advertising is used to a good extent by the industrial
marketers to assist their  sales force and intermediaries to generate more leads. Advertising
plays an  important role in industrial marketing strategy by supporting and supplementing
personal selling efforts. The advertising budget for industrial goods is far less compared to that
of consumer goods.
Before understanding the role of advertising in industrial marketing, we must be  aware that
there are certain forces that shape and influence organizational buying decisions. Industrial
purchasing decisions are typically joint decisions  that insist an industrial marketer to focus on
all the individuals involved for a  particular purchase. Studies have also shown that an industrial
salesperson does not reach even six to seven out of ten purchase decision influencers. In such
cases, advertisement that becomes the only means of communicating fills the  gap by reaching
important buying influencers who are sometimes inaccessible to  the industrial sales force. It
facilitates the company by enhancing its brand image, increase the salesperson’s opportunity to
create a sale.
Objectives of Industrial Advertising
Any industrial marketer uses advertising as a promotional tool as it performs so many functions
that help him to achieve the following objectives:
1. Create awareness: The industrial advertising creates awareness about a supplier or his
products to the potential industrial buyers who are unaware about the availability of
their products in the industrial markets.
2. Reaching inaccessible places: There are places that are not reachable by the company
sales force and there are important decision makers for purchase of industrial products
who cannot be met by the sales force.
3. Improve sales: Advertising helps salespersons to improve their sales by increasing their
sales efficiency and effectiveness as people are already aware of
4.  their company, products, etc.
5. Reduce cost: A single advertising reaches a vast number of people that comes out
cheaper than a single salesperson meeting so many people personally and explaining
them in details about the company’s products.
Effectiveness of Industrial Advertising
The evaluation of industrial advertising is a very complex task. Its effectiveness is measured by
evaluating its performance against the advertising objectives.  Advertising is said to be effective
if its objectives are reached with the given amount of budget specified for it.
Limitations of Industrial Advertising
The limitations of industrial advertising are:

 Industrial advertising cannot substitute personal selling but it can definitely support,
supplement and complement that effort.

 Advertising can and should be used only for creating awareness and providing
information. Its purpose would be lost and the cost increases if it tries to give all the
details. Providing exhaustive information, objection handling, convincing and converting
a prospect into a customer that consumes lot of time should be allowed to be handled
by the direct sales force team.

 Advertising cannot create any product preference as this requires liv demonstration
with explanation.
  Advertising cannot achieve the task of creating conviction and purchase.  Such tasks are
achieved by personal selling.

2. Direct Marketing in Industrial Marketing

Direct Marketing is a recent activity that has come up and is used extensively by the industrial
marketers. The various tools used in direct marketing are direct mails, telemarketing and
online marketing channels. A direct marketing  channel does not involve any intermediary
and the sale is done by the  company by directly contacting the target customer. As the cost
involved in direct marketing activity is much less compared to the cost of company sales force
directly meeting the customers, many industrial organizations prefer this tool. This tool aids the
sales force to gain entry into prospective customer’s office where prospective customers are
identified beforehand and are informed about the company products.
 Direct Mail
 Telemarketing
 Online Marketing Channels
 Internet shopping.
 Internet

3.Personal Selling in Industrial Marketing

Personal selling is one of the oldest forms of promotion. It involves the use of a sales force who
orally communicates about the company’s products or services to the potential buyers with an
intention to make a sale. Personal selling is the primary demand stimulating force in the
industrial marketer’s promotional mix. Its role is very dominant in industrial markets because of
less number of potential customer’s present compared to the consumer markets and the large
amount of money purchases involved. As the cost per sale through personal selling  is too high,
industrial marketers have to carefully manage and integrate  personal selling into
organization’s marketing mix.
Personal Selling Process
There are different steps that are involved in a selling process and the salesperson has a
significant role to play in each of the steps. It is the role of the salesperson that helps the
organization to increase its sale and reach its objectives. It therefore becomes important to
understand their role during each of the steps in order to further enhance their performance
and clinch any deal successfully.
1. Prospecting:  Prospecting is the first step in the sales process that refers to identifying a
list of potential organizational buyers. Communicating:  This step involves the sales
professionals communicating with the organizational buyers and trying to understand
 their current needs, their current use of products, identifying key decision makers
among the buyers, planning and creating a sales presentation to address the identified
and likely concerns of the prospect, and setting call objectives.
2. Handling Objections:  The course of objection handling includes the prospective buyers
holding, inspecting or testing the product directly.
3. Selling:  Selling is the process of delivering the products or services to the customer’s
satisfaction and receiving the payment after adequately addressing any of their final
objections or obstacles.
4. Servicing:  The industrial marketers should provide their customers with efficient service
from the point of sale till the goods are delivered and also after the post-sale.  
Advantages and Disadvantages of Personal Selling
advantages are:

 Personal selling is a one-to-one activity where customers get personal attention. This
gives an opportunity to understand the customer needs better and make an effective
sale

 The marketing manager can customize the sales message accordingly depending upon
the needs and types of customers

 As there is two-way communication process in personal selling,  the sales team has a

good opportunity to respond directly and  promptly to any of the customer’s queries
and concerns
disadvantages
personal selling like the cost of employing a sales force (recruiting and maintaining) is
expensive. In addition to the basic pay package, they need to be offered incentives in order to
achieve sales. Other supplementary support to make sales calls like car, travel, mobile phone
etc. also adds on to the cost. In addition, a sales person can meet only one customer at a time
that makes it a costly affair of reaching a large audience.

4. Publicity and Public Relations in Industrial Marketing

Publicity
When any significant news about a product is made known to the people through a published
medium like radio, television, newspaper or otherwise, such kind of act is known is
publicity. Publicity has very high credibility in the eyes of organizational buyers as the sponsor
does not pay anything for publicity and it is not a part of any promotional program.  It is the
least costly promotional alternative available for the company that is very.
Public Relations
Public Relations Department is located at the top level of the company and it deals with
everybody i.e. customers, suppliers, shareholder, employees, legislators, government and
press. And the important job of this department is to maintain relations with people and build a
good image about the company in their eyes (e.g. if any new product is launched by any
company, the MD or Chairman calls for a press conference and explains about the product and
its features and release in the market)
Public Relations is much broader in scope than publicity. It comprises of a range of programs
that are planned to promote a good image about a company or its individual products.

5. Sales Promotion or Merchandising in industrial marketing

Sales promotion refers to a set of techniques, incentives or activities to stimulate the influx of
people and maximize the purchase or sale of a product or service.
The primary forms of merchandising are: setting up tasting stands, giving away advertising
items that carry the logo or brand of the company such a:  T-Shirts, caps, key chains, raffles,
games, promotional packages, promotions at POS, etc.
The sales promotion can also be of 3 types, according to the blog Business Promotion:
1. Commercial Promotion: aims to get the support of the reseller and increase their desire
to sell.
2. Promotion for the sales force: aims to stimulate the sales force and achieve more
effective results in the sales colors of the group.
3. Promotion to establish a franchise with the consumer: aims to promote product
positioning and a sales message in the deal.

2. Discuss in detail the process of business promotion?

Process Business Promotion
Pull in a customer base before your grand opening by following these new business marketing
steps.
How can you let people know your business is on its way to success before it even opens its
doors? Here are seven simple strategies, ranging from deciding where you want to take your
business and spreading the word via various media outlets to handing out samples of your
product to potential clients.
1. Develop a marketing plan – Where are you now and where do you want to be? A new
business marketing plan should be formulated well in advance of your company’s grand
 opening. Once you have your marketing plan developed, you can begin to initiate the
steps of new business promotion, even before the doors open.
2. Leverage blogging and social networks – If you blog daily, talk about your business
before it officially opens. You can either create a blog on your company’s website, or if
you already have a following on a personal website, then feel free to direct media
attention to your new business endeavor. If it could help you, try using YouTube to get
the word out about your business. For example, if you are opening a new florist shop in
town, consider videotaping yourself putting together a wedding floral arrangement.
3. Be passionate about what you do – ven before you open the doors to your business,
you should set a friendly tone. When calling potential clients, smile! It will actually alter
the tone of your voice.
4. Know that branding is more than a logo – Branding works wonders for customers’
perceptions of your business. You can indeed begin your branding efforts before you
open your doors. Put your logo on promotional products, business cards, and magnets.
Your very first advertisement in the local paper or online should reflect your branding
strategy.
5. Use words in a new way – Are there any industry words you could use creatively when
spreading the word about your business? Avoid using jargon or acronyms, and rather
work to brainstorm unique slogans.
6. Incorporate promotional products – Targeted promotional products can be a
worthwhile investment that will pay off exponentially. For example, if you sell wholesale
candles, consider sending a lighter with your logo to prospective clients. This will ensure
that you stand out from your competitors while you simultaneously establish your
brand in the eyes of your future clients.
7. Send samples to local businesses with whom you have a synergy – Think about other
local businesses that are not competitors of yours, but share the same client base. For
example, if you want to start a dog bakery, meet with the owners of doggie daycares
and play clubs. You can distribute free samples through these companies and watch
your customer base grow quickly.
A good business owner is constantly handling new business marketing – even before the doors
of the business open. By employing these strategies before your grand opening, you are well on
your way to profitable success!

3.Discuss in detail the objectives of promotion for business marketing

The objectives of any marketing promotion are based on the goals and strategies of the
company launching the project. In general, the marketing objectives of promotional efforts are
aimed at attracting new customers, increasing sales, raising awareness, or expanding market
penetration. The scope of an initiative is typically based on the company’s advertising budget.
Increase Business
Marketing promotions are used primarily to attract new customers to a business. This
can be done through a variety of promotional actions, such as running targeted
advertising campaigns, holding special events, or launching a social media blitz. The
objective is to reach potential new customers and give them an incentive to patronize
your business.
Increase Sales
Once people become customers of a business, another promotional marketing objective
is to encourage them to increase their spending. An example of this marketing objective
in practice is the use of a customer “rewards” card that tracks what the customer
purchases and generates coupons for similar products. In this sense, the objective of the
marketing tactic is to get customers to buy additional products, or more expensive
products, than the ones that initially brought them to your business.
Encourage Repeat Business
The objective of retention marketing promotion is to turn one-time customers into
repeat customers. This can be done through collecting customer contact information
and putting the one-time buyers on a direct-mail or email advertising list. These
customers then receive special offers, advance notice of sales, special perks, and “two-
for-one” offers designed to keep them coming back.
Brand Awareness
To keep its name in front of consumers and reinforce its image, a small business should
have a marketing objective of building brand awareness. This can be accomplished in
part by being consistent in all marketing messages and using inexpensive promotional
products. An example: give-away items such as refrigerator magnets, ink pens, coffee
cups and calendars imprinted with the company logo or image. People who take these
items have a constant message in front of them, bolstering brand awareness of the
business.
New Product Introduction
The objective of promoting a new product launch through marketing initiatives is to
expand a company’s reach into new markets, while still retaining its existing customer
base. An example of this approach is a cleaning company that expands its services to
include handyman-type home repairs. The objective of the marketing promotion would
be to attract new customers seeking home repair services, while cross-selling existing
customers who already use the company for their cleaning needs.
 Marketing Promotional Objectives
An objective represents targets that need to be reached to achieve the company’s aims. These
objectives can affect the way businesses operate. Business organisations can achieve their set
objectives in short periods or/and long periods. These are known as short-run objectives and
long-run objectives. A short-run objective lasts up to one year, and it is used to achieve long-run
objectives. A long-run objective last up to three or five years, and they are quite difficult to
reach.
Marketing objectives are objective that can help to decide where share of the market- size and
revenue is needed to achieve the company’s mission and objectives. Marketing objectives also
decides how the elements of marketing mix can help achieve these in each customer segment.
Here are some examples of marketing objectives:
 To increase sales revenue
 2. To increase market share
 To maintain/improve product and brand image
 To give quality assurance
Promotional objectives are objectives that are used to draw customer’s attention to a product
or service, or even a business. Here are some examples of promotional objectives:
 To make consumers aware of a product or service
 2. To remind existing customers of a product so, they might re-purchase the product
 To show their product is better than, that of a competitor
 To reach a targeted audience which might be geologically dispersed
 To develop or improve the image of the business to achieve its promotional objectives, a
business has to set its promotional strategy. A well-known mnemonic used to describe a
promotional strategy deigned to persuade a customer to make a purchase is AIDA. Here
is an explanation of AIDA: