Role of Advertising and Sales Promotion in B2B marketing

Elements of the Promotional Mix

Personal Selling Advertising

Sales Promotion Public Relations

Basic Terms
Marketing communications (Marcom)
Methods of communication other than personal selling When public relations is performed at the corporate level, what remains is called A & SP (nonpersonal communication).

Marketing communications -Public relations Advertising & Sales Promotion (A & SP)

The Role of Advertising

1. Integrated Communication Programs to spread information on
Benefits Problem Solutions Cost Efficiencies

2. 3. 4. 5.

Enhancing Sales Effectiveness. Increased Sales Efficiency. Creating Awareness. Interactive Marketing Communications.

Advertising Cannot
Substitute for effective personnel selling. Advertising along cannot create product preference.

Advertising helps in
Increasing Sales Effectiveness Increasing Sales Efficiencies Creating awareness and product pull Interactive Communications especially over the web

The Decision Stages for Developing the Business-toBusiness Advertising Program Advertising is only one aspect of the entire marketing strategy. The advertising decision process begins with the formulation of advertising objectives. Equally important is the evaluation and selection of the media.

Determining Advertising Expenditures

Percent of Sales
Allocate some percent of sales to advertising. Makes advertising a consequence rather than a determinant 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.

B2B Advertising Message

Development
Determine advertising objectives. Evaluate the buying criteria of the target audience. Analyze the most appropriate language for presenting the message.

Developing the Message

Perception
Focus on Benefits Understanding Buyer Motivations

Grab Attention Enable Customer to Intrepret Focus on Problem Solutions, Benefits and Cost Efficiencies

Message interpretation is subject to

Selective Exposure
Refers to the actual media to which a receiver may be exposed.

Selective Attention
Only useful information is seen or heard. It is used to prevent information overload.

Selective Retention
Refers to the storage function the portion of a message retained that is recalled.

The Primary Areas for Advertising Evaluation

1. A sound measurement program entails substantial advanced planning. 2. The advertising strategist must determine;
1. 2. 3. what is to be measured, how, in what sequence.

3. A pre-evaluation phase is required to establish a benchmark.

The Power of Internet Marketing Communications

1. 2. 3. 4. Integrate the Internet into Media Plans. Capture the Economies of the Internet. Make Real-Time Changes. Create Unlimited Shelf Space for Products. 5. Reach Customers on a Global Scale. 6. Build One-to-One Relationships with Customers.

B2B web sites can help buying center members in several ways:
Recognize and understand their problems

B2B web sites can help buying center members in several ways:
Recognize and understand their problems Collect and compare information about alternative solutions and costs

B2B web sites can help buying center members in several ways:
Recognize and understand their problems Collect and compare information about alternative suppliers, partners, and delivery of value Collect and compare information about alternative solutions and costs

B2B web sites can help buying center members in several ways:
Recognize and understand their problems Collect and compare information about alternative suppliers, partners, and delivery of value Collect and compare information about alternative solutions and costs Provide access to training manuals, user manuals, and troubleshooting guides for use during installation, testing, and product use

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 clickthrough Design the web site to achieve higher rankings on search engines Purchase key words on search engines your ad is displayed when a search is for your key word.

Newsletters

Newsletter Advertising

On-Line Seminars

Other Types of E-Applications in B2B Communicatio ns

Effective Internet Communications

Opt-In e-mail

What Promotion Can and Cant Do

Promotion can
Encourage awareness Inform about availability Persuade trial Build image Encourage repurchase Support selling efforts

Promotion cant
Sell products that are not needed Substitute for a bad product or poor marketing strategy. Convince customers to go out of their way when a comparable product is available Convince customers to pay more than perceived value

Trade Shows: Strategy Benefits

An effective selling message can be delivered to a relatively large and interested audience at one time. New products can be introduced to a mass audience. Customers can get hands-on experience with the product in a one-on-one selling situation. Potential customers can be identified, providing sales personnel with qualified leads. General goodwill can be enhanced. Free publicity is often generated for the company.

Trade-Show Communications Strategy

1. What functions should the trade show perform in the 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 investmentaudit policy be? How should audits be carried out? 5. In a Trade Show Product Company Individual while it is opposite in Personal Selling

Trade Shows
Determining which trade shows to attend? Which shows are important to customers? Which shows are important to industry analysts? Which shows have the best audience for announcements? Which are likely to be attended by the target audience? Trade show issues Who should attend? Should your company have an exhibit? What will the exhibit be? How can we capitalize on the trade show after it is over?

Important Measures by Exhibit Surveys

Net Buying Influences Measures the percentage of the show audience that has decision authority for the types of products being exhibited. Total Buying Plan Measures the percentage of the audience planning to buy the products being exhibited with the next 12 months.

There are three categories of sales promotion.

Sales promotion focused on the sales team
Sales promotion focused on customers

Sales promotion focused on channel intermediaries

Public Relations
PR defined:
All efforts to obtain the attention and favorable coverage of the firms business by third party media and publics.

PR activities:
These can include special events, press tours, public appearances by company executives, participation in media dialog, trade shows or guerilla marketing activities (attention-getting small events to get the company noticed and obtain word-of-mouth)

Buying Decision Processes and Methods of Nonpersonal Communications

DEFINITION STAGE
Process Flow Stages Problem definition Solution definition Product specification Nonpersonal Communications Can Help identify problems Provide information for defining solutions Help customers remember vendors

Buying Decision Processes and Methods of Nonpersonal Communications

SELECTION STAGE
Process Flow Stages Solution provider search Acquire solution provider(s) Nonpersonal Communications Can Provide information on vendors Provide information on products and partners

Buying Decision Processes and Methods of Nonpersonal Communications

DELIVER SOLUTION STAGE
Nonpersonal Communications Can Deliver service and training information

Process Flow Stages Customize as needed Install/test/train

Buying Decision Processes and Methods of Nonpersonal Communications

END GAME STAGE
Process Flow Stages Operate solution Reach end result Evaluate outcomes Determine next set of needs Nonpersonal Communications Can Provide reinforcement Deliver service information Share performance data for evaluation

Print Promotions

Convergence of the Promotion Mix

Corporate Advertising

Types of B2B Print Promotions

Advertising in Trade Journals

Directory Advertising

Consumer Media

Types of Sales & Support Literature

(also called collateral materials)
Technical Bulletins, Test Reports, and Application Histories

Catalogs, Product Brochures, and Data Sheets

Capabilities Brochures