ADVERTISING, SALES PROMOTION AND PUBLICITY IN INDUSTRIAL MARKETING

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ADVERTISEMENT & PROMOTION STRATEGY

Advertisement , sales promotion , publicity play a very imp role . If they are proper planned & controlled ,they can enhance the company image , build recognition for its product & services , reach unknown or inaccessible buying influencers & generate new sales prospects . Thus it is imp for industrial marketers to understand how these variable support the selling function.
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USE OF ADVERTISEMENT IN INDUSTRIAL MARKETING

Reaching buying influencers : they are the people

who constantly moving out of their areas of responsibility , changing jobs so they can be reached through ads.they identify themselves , making it possible for sales people to contact them. Creating Awareness : industrial advertisement is an effective means of creating awareness of the industrial supplier ,as well as the supplier market offering.

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Contd.
Enhancing the sales call : by arousing interest in the

supplier offering & by helping to create supplier preference . Means when buyer are exposed to firms industrial ads ,their opinions of the firm improves result in higher sales per call. Increase overall sales efficiency Supporting channel members: manufacture who use middleman want to know what profit they can expect on a product ,& what the producer is doing in the way of consumer advertisement & other promotional support services

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INDUSTRIAL ADVERTISING MEDIA

General business & trade publications : they are of two

types horizontal or vertical publication .horizontal deals with specific functions , tasks or technologies & cut across industry lines . vertical are directed toward specific industry & read by almost anyone from person on assembly line to president. Directory advertising : every state has an industrial directory & there are also a number of private one.it is highly credible medium & for many buyers & their basic purchasing tool.
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Contd.
Consumer media : TV is the medium of reaching small

businessman ,who are the mass audience . where market coverage is limited geographically ,consumer media may also provide an excellent way of reaching a market.

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CONTD..
Direct marketing : it include direct mail ,

telemarketing , catalogs , data sheets to reach their markets. Direct mail : it is low in cost , highly selective , flexible with regard to timing & offer considerable space for telling the full story disadvantage: direct mail is wasteful if prospects are not clearly identified . so they must be directed toward specific target audience whose name , job titles are known .
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Telemarketing : it is a marketing communication tool

that employs trained specialist who utilize telecommunication & information technologies to conduct marketing & sales activities Catalogs & data sheets :catalog provide buyer a basis of comparison with other companies product once a decision has been made to purchase a particular product . DATA SHEET provide teachniqual information on product dimension , efficiency , performance data , cost saving to assist customer in decision making
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USE OF SALES PROMOTION IN THE INDUSTRIAL MARKETING

Promotion in the form of Trade Shows, Premium incentives etc. play an important role in the overall communication strategy of an industrial firm.

Sales

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TRADE SHOWS
Trade Show exhibits a major part of the Marketing communication activities and are used to support both selling and other marketing activities. Yearly trade show participation can range from six to twelve a year, depending on the size of the firm.
A company may allocate as much as 35% of its annual promotional budget to trade show expenditures .

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TRADE SHOWS
Trade Shows offer manufacturers as well as the Distributors and other vendors, an opportunity to display their products or describe their services to customers, distributors, suppliers, and the press.

Not only Trade Shows enhance the firms ability to increase overall company awareness and generate sales leads, they are effective means of: Reaching a relatively larger audience. Reducing the number of sales calls needed to close a sale.
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TRADE SHOWS
The effective use of trade shows depends on the role they are to play in the overall promotional mix and how well trade show objectives are established. Trade shows can as well be a costly means of communicating with the market. The average cost per visitor reached, including personal travel, living and salary expenses, and preshow costs for 1985-1987 was $116.00, which was a 30% over the 1984 average .

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TRADE SHOWS
The marketer must not only set specific trade show objectives, he must specify the target market to be reached, and how funds are to be allocated. Setting Specific Objectives: Specific objectives are important for deciding which shows to attend, what should be achieved at shows, and how much of the promotional budget to allocate for trade show expenses.

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TRADE SHOWS
To support selling objectives, trade shows are useful for identifying prospects, gaining access to key decision makers; disseminating information on products, services, and company personnel; and actually selling products. To support nonselling objectives, trade shows are viable vehicle for obtaining information regarding competitors proposed products and prices, influencing distributors, testing & evaluating customer reactions to products, and maintaining & enhancing corporate morale.

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TRADE SHOWS
Reaching The Target Audience: In considering the cost of visitor reached, it is important for the firm to participate in those shows that will be frequented by members of its target audience. Most exhibitions, now rely on registration cards to determine trade show participation and develop a profile of show attendees.

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TRADE SHOWS
Other methods include an examination of post trade show effectiveness, such as the number of qualified leads, the number of leads converted to sales, & the number of key prospects reached.

To plan their trade show strategy to fit the needs of their target audience, many marketers also conduct a preshow survey of target prospects to determine: o which shows they plan to attend o what they hope to gain from attending

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TRADE SHOWS
Allocating Funds: According to the Hunt Chemicals trade show strategy, the trade show budget may not only call for an allocation of funds for actual show exhibits, it may include advertising before and during the show, a preshow direct-mail campaign, and a relevant giveaway. How much should be allocated for trade show expenses, then, depends on the objectives as well as the strategies for achieving the objectives.

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Premiums, Incentives, and Specialty Advertising

Premiums, Incentives, and Specialty Advertising:
While Promotional contests and giveaways are quite common in consumer market, they are also used, though less frequently, in industrial marketing. In contrast to Premiums which are items of value & normally closely related to the products they intended to sell, specialty advertising consists of useful, low-cost giveaways such as calendars, baseball caps, or other gifts given to the prospects by salespersons & as these items contain the firms name & address somewhere, it is also classified as an advertising.

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CONTD
Care must also be taken regarding the manner of distribution of the specialty advertising so that the offering will neither be misunderstood nor offensive. For example, specialty items can be included as part of a proposal or offered to several members of the buying firm. When offered to a prospect, they should be presented in a way that does not appear pressure or obligate the prospect.

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Use Of Publicity In The Industrial Market

Publicity is a highly effective promotional tool.

When favourable editorial material about a company or its products placed in the media,it generates sales leads and brings better relationships with customers.
Industrial customers rate technical editorial material in trade journals as an important source of information in the buying process. Technical articles ,reffered to as signed articles in trade publications are excellent vehicles for reading industrial customers.

Industrial buyers recognize that most editors of trade journals have technical knowledge in the field & are able to evaluate the usefulness of information for their readers
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Benefits of using signed Articles

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INTRODUCTION
To communicate something about the company and its products.
Careful consideration of :
The advertising budget The target audiences to be reached The message strategy.

Convey specific and technical information regarding the characteristics of a particular product.
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Advertising objective
Firms overall corporate and marketing objective.
Sets the direction for its desired business performance. Strategies and actions are necessary. Not in terms of increasing sales.

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Rule of Thumb
Used where advertising is a small percentage of the

total communication budget. Relates the expenditure to the measure of company activity in a consistent way. It violates the basic marketing principle of generating the sales through demand.

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Objective Task
A logical method for establishing the advertising

allocation . It forces the firm to accomplish the objectives. It is difficult to allocate the amount of fund needed for specific objectives to be achieved.

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Steps in the Objective- Task

Steps
Determine marketing objectives

Examples
Introduce a new product, increase market share

Determine advertising objectives

Determine audiences to be reached Determine reach, frequency, and continuity needs Determine appropriate media to reach audiences Establish other promotional support needs
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Increase product awareness, generate sales leads

Engineers, production, purchasing How wide is the market, how often must the message be repeated to have impact Business or trade publications Publicity, incentives, data sheets

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Contd
Steps
Determine control measures Estimate necessary promotional funds to achieve media and communication objectives

Examples
Pre testing and post testing Computer simulation of media costs

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What is a message strategy?

Message strategy specifies how advertising objectives are to be achieved by defining the theme for the communication program and the company image (positioning) desired in the market place. The message strategy is like a foundation for all marketing. It needs to be strong or the marketing efforts will fall apart. It consists of a positioning statement and three support points. They address key target market problems by stating a benefit; i.e. why the target market should care about your product, service or company. A message strategy can be extremely detailed and is like a recipe for all marketing communication.
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During making purchase industrial buyer are more concerned about the problem solving benefits and about the abilities of the product to improve operations Message strategy makes it easier to deliver the same message across all marketing media including Websites, brochures, advertisements and presentations to investors, industry analysts and prospects. Consistent execution of the same message is a critical factor in successful marketing

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Industrial Advertising Industrial advertising provide the reader with information regarding intangible benefits.

Consumer Advertising must In consumer marketplace useful products , services and ads the make promises for strong emotional desires.

Industry buying criteria generally Emotions such as fear, center on technical rather than anxiety, frustration and status emotional issues. attainment plays a large role in the buyers mind. Advertising messages must be formulated on the basis of how the suppliers products can assist in solving customer problems and relate to the need of the particular target audience.
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 Identifying Audience Needs Determining the requirements of the audiences to be reached is the key element in developing message strategy. For instance, in one study of industrial cooling system purchases, operating cost and energy savings were of major concern to production engineers, while heating and air conditioning consultants were more concerned with plant noise levels. To reach the production engineers, then, message objectives might have been stated in terms of : Advertise Acme Widgets economical operating cost and maintenance advantages compared to the XYZ product.

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 Keep the message to important specifics Industrial buyers tend to purchase on the basis of a few specifics. Thus, advertising messages should be developed around what is really important, emphasizing the major concerns of the audience as they relate to their business needs or objectives. Advertising messages can be developed around : Case histories, testimonials, short stories, audience participation or straight exposition

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Ingredients to successful advertising

1 The successful ad has a high degree of visual magnetism

2
3 4 5

The successful ad select the right audience

The successful ad invites the reader into the scene The successful ad promises a reward The successful ad talks person to person

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 Case Histories

Case Histories use the experience of the user and show readers how they can benefit by purchasing from the supplier. This approach is quite useful when an audience can be reached through very specialized trade journals since reader tend to share common experiences.
Testimonials Testimonials are similar to case histories except that those giving testimonials are usually chosen from well known companies.

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 Short Stories

While research has shown that only a small percentage of industrial companies use the strictly comparative format of advertising, when communication strategy is enhanced through comparison to competitors, short stories are often effective.
Audience Participation Audience Participation is a unique way to get readers involved in the advertising message. This approach involves asking readers to complete quizzes or mathematical calculations to obtain some of the messages information.

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 Straight Exposition

The most commonly used message approach, one that is generally respected by industrial buyers, is the straight exposition. This approach uses a straight forward narration regarding the companys product and its uses. In developing the advertising message it must be remembered that buyers tend to screen out messages that are inconsistent with their attitudes, needs and beliefs. They also tend to interpret information so that it conforms to their beliefs. Thus, unless the message is carefully designed around the needs of the target audience, it will be disregarded or improperly interpreted.

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DEVELOPING THE MEDIA PLAN.

Reach: The number of different target audiences to be reached Frequency: The number of times they should be reached for the message to have impact

Continuity: The length of time the campaign is to run example: Watch Borg-Warner

Media selection: Selection of the appropriate media focuses

on the target audiences to be reached, and the efficiency with which the media can be utilized to maximize reach,frequency,and continuity goals within budgetary constraints.
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Circulation, editorial content and cost:-

Selection also depends on circulation, editorial content and the cost of advertising space. Thus media planner must carefully assess these variables. To define the audiences of particular publication accurately, media planners use the circulation audits of business publications. There organization like the audit bureau of circulation which audit the circulation of their member business.

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Controlled Circulation: Business and trade publications are circulated on the paid basis or a control basis. When a publication is available on a paid basis the recipient pays the subscription price to receive it. Control circulation are free and are mailed to a selected list of individual chosen by the publisher

on the basis of their unique position to influence purchase decision. Thus, user of controlled circulation publications can more accurately evaluate which target markets their publication reach & if their expenses have been properly incurred.
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Scheduling: It is the business or trade publication depend on if

they are monthly, weekly or daily. It also depends on the objective of the advertising program if the advertising objective is to achieve recognition, scheduling might call for a steady year round campaign. If it is to introduce a new product scheduling might call for a heavier advertising at the beginning of the campaigns with regular intervals through out the year to keep influencers reminded of the products existence.
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Evaluating The Advertising Plan

To ensure that advertising objectives are being achieved & that money is being spent wisely, the effectiveness of the advertising program must be evaluated.

Measuring the effectiveness of the message of the message before it is implemented is called pretesting

Determining the effectiveness of the plan after it has been implemented is known as posttesting"

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Evaluating The Advertising Plan (Contd.)

The Need for Preplanning

Evaluating the effectiveness of the advertising plan involves careful consideration of the elements to be evaluated, the data to be collected, and how the data are to be analyzed.

For example, while it is very difficult for IBM to measure whether advertising goals have been attained, because the name IBM washes over all its advertising, IBM develops its advertising program by first researching specific market areas, establishing advertising objectives based on research findings, and then pre- & posttesting the effectiveness of its program. How IBM assess its B-to-B advertising
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Evaluating The Advertising Plan (Contd.)

Industrial Advertising Agencies

A no. of advertising agencies have begun to specialize in the area of industrial advertising. The no. of agencies that offer services on a per job basis has also increased. These agencies assist the industrial advertiser with various aspects of the communication plan

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Primary Areas of Advertising Evaluation

Protesting Markets
Testing advertising message strategy against various target audience to measure reaction. Determines why buyers behave as they do & what product benefits appeal to them Determines what the message says & how well it is said- includes copy, headlines, illustrations, and typography Determines the best combination of media to reach target market; includes space and time elementsusually done through computer simulation

Posttesting
Determines extent to which campaign suceeded in reaching target markets Measure effect of motives

Motives

Message

Determines if ad was seen, remembered, believed.

Media

Determines if scheduling was effective.

Scheduling
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Determines the aspects of reach, frequency, and continuity

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Determines if scheduling was effective

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Primary Areas of Advertising Evaluation (Contd.)

Protesting Budgeting
Determines the optimum level of expenditures-usually done through computer simulation

Posttesting
Evaluates effectiveness of budgeting strategy Evaluates whether objectives were achieved. Determine whether to continue, what to change, how much to spend in the future

Overall Results

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The Integrated Promotion Plan

A well conceived industrial communication plan must be artfully integrated if communication objectives are to be achieved most effectively. Action plans to be developed in writing Industrial advertising requires a lot more focus than commercial advertising because (a.) non-commissionable to agencies (b.) More Technical and Requires experts. Components of a well designed Marketing Communication Plan What is to be Communicated? When it is to be Communicated? Through What Media it is to be Communicated? Advantages of a well written Marketing Communication plan Easy to illustrate Easy to understand Easy to implement
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