Professional Documents
Culture Documents
9.advertising & Sales Promotion
9.advertising & Sales Promotion
9.advertising & Sales Promotion
INDUSTRIAL ADVERTISING
Any paid form of non personal presentation by an identified sponsor( of industrial goods,services or ideas ) Its management is like that of consumer goods advertising, in that the advertiser must --Measure his potential market --Study buying habits and motives of possible users --Determine advertising objectives --Setup budget --Select media --Prepare and place Ads
If it can show above Will help in salesmen tasks Salesman can convince buyers that company is desirable source of supply
4.When introducing new product or improved product Go to customer's customer to convince him to specify this product in his order OBJECTIVES
Advertising-A marketing tool User to know what tasks it is suited for and what for he wi II use it
Overall company objective Goals of marketing activity Objectives of advertising Advertising goals vary from company to company and time to time
Some general objectives are 1.To Inform Primary objectives of all advertisers is to inform about his products and services More important in industrial goods since bought on factual basis If industrial advertisement is read, it is read carefully, as a part of the job, to stay informed.( not emotional or only for pleasure) It should contain more facts. Facts should be precise, documented and provable. Facts should be solid. 2.To bring in orders
3. To get enquiries Every industrial advertisement has this objective Enquiry expected from Not currently user of this product Current users not conversant with other uses Users or prospects where salesman has failed to gain access
Trade journals generally referred when buyer's product processes or product lines are changed or has to buy unfamiliar products. 5.To reach personnel inaccessible to salesman When cant contact all persons-Research scientists/Engineers, Outside directors Very large number of persons, who influence buying e.g. Steel mill Ad may convince them of product virtues at least to the extent that they don't seriously object to recommendation 6.To provide supporting programme to Salesman Important objective-Prepare prospective customer to salesman Already informed-New products, how profitably used, company's position and policies, hence saves salesman's time to close the order
Advertising company's salesman are received more cordially as compared to others. It can open many closed doors. More appropriate when new prospects or new industry is to be reached. 7. To reduce selling expense Reduces salesman's work hence cut costs Regular contacts necessary otherwise even loyal customers leave. Salesman's visit expensive. Advertisement (Low cost per contact) keeps touch When goodwill is to be built or keep product dominant in customer eyes, ad is more effective 8. To help get news items Even in Trade journals,news is read more than ads When new product or new usage of old product Heavy & consistent-get editorial attention
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9.To establish recognition and reputation Straight product advertising doesn't help Company reputation and Brand recognition required, since more familiar brands specified People in plant no less Distributor less profit
10.To motivate distributors To get middleman's sufficient time and effort ( Since competitors products also handled) Advertisement copy-Directed to middlemen of advantages, wide margins, large scale potential, rapid turnover or relatively small investments Enquiries from advertisement-may be forwarded, can refer names in ad Cooperative promotion-Subsidised,name printed on catalogue
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General considerations
Not all objectives in every campaign Advertising objectives change from time to time Different companies have different objectives Several objectives could be in one campaign but weightage may be different Goals must be clearly understood and advertising tools should be effectively used
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ADVERTISING BUDGET Half the money spent on advertising is waste but no one knows which half. How much to spend on advertising? 1. % of sales method
Some firms-- % of expected sales or last year Neither assure-It will result in greater profit or will attain non profit marketing objective 2. Task method
Some firms-Based on tasks,advertisement is expected to do Decide the tasks-Budget the costs Management will decide-Which tasks worth the cost and within financial resources Better method
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Budget determination by tasks Management imposes limit as % of sales It can vary with changed circumstances Amount to be spent
APPEALS USED 1.Economy- Does not mean low selling price(Low cost in use) 2.Quality- Catchall appeal 3. Efficiency 4.Dependability 5. Power 6.Strength 7.Durability 8.Accuracy 9.Service 10.Complete line 11.Experience Patronage appeals 12.Popularity
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Which appeal? Choice will depend upon 1.The particular characteristics of the featured product that distinguish it from other products of the same kind 2.General plan of personal sales force 3. Types of functional group of people in customer's firm, the ad is designed to influence 4.The part of overall job assigned to advertisement Purchase-Attractive, quick to read-Company, product,services Plant people-Clear descriptions Design-Specific details-Capacity, circuits etc
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INDUSTRIAL ADVERTISING COPY Orientation Fundamental difference-In point of view from consumer advertising Consumer-Reads for pleasure Industrial consumer-Primary to help him Reads in company time Read intensively Want facts Art work and catch phrases-To increase readability
Contents 1.Nature and distinctive characteristics of the product 2.Advantages over competing products 3.Adaptability to buyer's needs
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a.As to claims made of product b.As to delivery and fulfilment of contract c.As to servicing and repair and replacement
Long copy will not disinterest reader provided it is of interest and practical value Sequence of elements Short headlines--Presents an interesting and intriguing idea with enough significance to make reader pursue idea further Explanation or amplification of headline--With limited specific appeals how his need will be fulfilled Copy--Contents as above Finally--Reader urged for some action; Specific courses of action suggested
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Company name Once confidence,will buy Efforts & expenses to establish brand name not required On diversification, brand name create confusion and make promotional task difficult
Brand name Easy to correlate Brand can bring reputation or even lose it Excellent headline attraction Editorial type copy more effective Legal requirements--General prohibition on false claims
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MEDIA Medium is a vehicle through which advertisers message is carried to its audience Limited scope--Trade journals, General management publications Catalogues, Direct mail, exhibits Choice of media--Depends upon audience to reach
Different magazines
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PUBLICITY Non personal stimulation of demand for a product, services or business unit, by planting commercially significant news about it in a published medium, or obtaining favourable presentation of it on Radio, television or stage, that is not paid for by the sponsor Activity supplement to advertising
Publicity more effective than advertising--People read more news Some--influence editors Some--Editors look for material worth the news Some--indifferent to publicity When market concentrated and easily reached Product is fabricated material or process material which can't be identified in end product
Monopoly position--To protect from competition
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Some--Very powerful tool Company made known to potential customers Enhances prestige Introduction of new product New development or improvement in existing product Easy access to salesman,more effective, less costly Techniques of securing publicity Wants to publicise Technical information of products General merits of products Publicity function to individual For newsworthy information from company & industry and pass on to the press Write technical articles
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Write books
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SALES PROMOTION Sales promotion are those marketing activities, other than personal selling, advertising & publicity that stimulate consumer purchasing and dealer effectiveness
In Industrial marketing, generally the following sales promotion activities are used
1.Scheme for traders
3.By giving incentives to consumers (Cartons back) 1.EXHIBITIONS & INDUSTRIAL SHOWS It offers manufacturers, an opportunity to display and demonstrate his products to a large number of prospects, within a short period of time, which otherwise would not be possible because of widespread nature of his market Exhibitor's obiective Since it is usually hard to trace sales that result from this type of promotion, the show's value to the exhibitor must often be measured in terms of more limited objectives as under Meeting potential customers Making direct sales Building prospects list Discovering new applications for existing products Introducing new products
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Demonstrating non portable equipments Meeting competitive effort Hiring personnel Establishing new representatives or dealers Scheduling trade shows Problem--When products sold to several industries
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Planning and operating the exhibit Proper selection and dramatising the theme Preparation and display of headlines, illustrations Background of booth Operations--By sales Take help from technical Samples, give aways Follow up Mail what is asked for, Salesman visit Critically review--Design, layout,registration,handling of traffic, presentation, accuracy Analyse and redefine objectives, usefulness
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Sampling To introduce new product To gain prospects attention and interest To gain an entry ( Medical rep ) Overdoing this is expensive but it should be viewed as incremental expense By mailing--may not examine some--by coupon through ad some--small cost Correspondance
Auxiliary promotional device To be handled carefully by a person who has complete knowledge of the subject
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Direct mail Specialised form of correspondaftce Objectives-- Wide, varied 1.Quick distribution of new product 2.Build prestige for company name
Catalogues
It is basic promotional tool. It is a sort of written material, describing the characteristics of a product, to place in the hands of prospective customers It is one of the largest item in sales promotion budget Objectives To get orders To develop recognition by buyers To get request for detailed information To get invitation to bid or to solicit business To get specification adopted To get product recommendations To help get approval
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Advertising novelties It is the necessary means of promotion. Advertising novelties are small,interesting or personally useful items on which are imprinted the name and advertising message of the issuing company It should meet four requirements 1.Inexpensive--Expensive may be viewed differently. Give to maximum people, concerned persons 2.Unusual and eye catching 3.Multiple impact--Advertising message should be seen by a number of people over a period of time 4.Useful
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Entertainment to customers Very important Depends upon product May be viewed negatively
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