* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download chapter 11 - courses.psu.edu
Youth marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Market penetration wikipedia , lookup
Digital marketing wikipedia , lookup
Product planning wikipedia , lookup
Multi-level marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Social media marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Ambush marketing wikipedia , lookup
Advertising wikipedia , lookup
Social media and television wikipedia , lookup
Targeted advertising wikipedia , lookup
Target audience wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Sales process engineering wikipedia , lookup
Marketing channel wikipedia , lookup
Personal branding wikipedia , lookup
Audience measurement wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Global marketing wikipedia , lookup
Advertising management wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
CHAPTER 11 ADVERTISING AND SALES PROMOTION STRATEGY Important Topics of This Chapter Business Vs Consumer Promotion Strategy Types of Business promotion Setting Goals and Objectives for Business Promotion Plans Creating a Promotion Plan for Business market Promotional Budgeting Techniques Implementation of Promotion Mix: Media selection Role of Advertising Agencies in Business Market Business Publicity Trade Shows and Exhibits Measuring the Effectiveness of Business Promotion Campaign Business Vs Consumer Promotional Strategy Very important to communicate with buyers Major emphasis on personal selling Major media are trade journals, direct mail and industrial/business directories Advertising aimed at professional buyers Packaging is for protection Large budget with personal selling efforts Partnership/alliances are more important The Goals of Business Promotion Building awareness Inducing trial Increasing market share Stimulating sales Buying space with distributor Intensifying usage Aiding the sales staff Confirming purchase decision Setting Objectives for Businessto-Business Promotion Plans Marketing professionals are responsible for strategically setting marketing mix (4Ps), and that includes details of each element. In the case of promotion “P,” that responsibility includes setting details of promotion mix. As presented in Chapter 10 (Selling), business-to-business promotion relies heavily on personal selling. Why is that? The majority of our efforts and resources for business-to-business promotion typically go to personal sales. Some of the reasons include: Need to develop personal relationship and trust. Complexity of product or service. Need for early supplier involvement in development stage. Great importance of customer satisfaction. Continuous need for customer-need monitoring and communication. Setting Objectives for Businessto-Business Promotion Plans But business marketers do utilize other promotion mix elements, often to support personal selling. Advertising, publicity, and sales promotion support personal selling by: Creating awareness Generating leads Reinforcing company image Creating interest Reaching buying center influencers previously unidentified or inaccessible to salesperson It is probably fair to say that most business-to-business marketers are more expert with personal selling element of promotion mix than with its advertising, publicity, and sales promotion elements. That makes this chapter all the more important! Creating a Promotional Plan for Business Markets Setting Objectives • sales • Market share • ROI Developing a budget Implementing the Promotional Mix • Business Advertising: Product appeal. Greater emphasis on direct mail.. Print media. Broadcast media. Greater emphasis on personal selling. Internet and Web page communication. Promotional Strategy in Business Marketing Personal Selling Advertising Sales Promotion-trade shows, catalogs, POP Publicity and public relations Sales Promotion Advertising specialty items: Calendars – Desk clocks – Calculator notepads Pens – Desktop business card holders Posters – Travel alarm clocks Tape measures Mugs If company name is on item that is handy to buying center influencers, is it effective as goodwill or as a reminder? Steps in Creating a Promotional Plan in Business Market Setting objectives Developing promotional budget Developing and implementing promotional mix Measuring effectiveness of promotional program Following up and modifying promotional campaign, if necessary Effective promotion helps sales; ineffective promotion can waste money and even damage company image. Promotional Budget-Setting Techniques Percentage of anticipated sales Affordable/Arbitrary (most common) Competitive parity/Market share Objective-and-task (most common) Implementing Promotion Mix: Media Selection Advertising: A good ad often is similar to a sales call: • Opener (headline) to catch interest • Body to convey information and benefits • Call for action to close Ad’s connection to customer’s buying and adoption process should be clear. • A good ad: Is memorable Is consistent with company’s image Interests the right target audience Is easy to read Provides evidence of customer value Motivates reader to want to learn more Provides easy way for reader to learn more Implementing Promotion Mix: Media Selection (cont.) Print Media • Horizontal Publications-have similar functions Industrial Maintenance and Plant Operations • Vertical Publications-deals with single industry Frozen Food Field, Mechanical Contractor • Professional Publications Medical and Engineering Journals • Industrial Trade Directories Thomas Register of American Manufacturers • General Business Publications Fortune, Business Week, The Wall Street Journal Implementing Promotion Mix: Media Selection: Print Media Publication Type Examples Horizontal Design Engineering, Purchasing Vertical Chemical Industry News, Mechanical Contractor Professional Architectural Digest, Dental Technology Industrial Thomas Register of American Manufacturers General Business Fortune, Business Week Implementing Promotion Mix: Media Selection (cont.) Broadcast Media • It is popular in recent years Direct Marketing • Cost effective • Targeting the right customers Direct mail Data sheets Business catalogues Telemarketing Media selection: Broadcast Media Radio and TV are sometimes used where market is highly geographically concentrated and product is of interest to broad range of business users. A roller bearing company in Ohio may use radio ads during morning commute in highly industrialized city to reach buying center influencers in local industries where roller bearings are used. IBM, Hewlett-Packard, Xerox, or FedEx may use TV spot during “Dilbert,” which is watched by professionals from a wide range of industries, i.e., potential customers. Broadcast media would not be likely vehicle if products were only used by a few companies in target area (which is often the case). Media Selection: Direct Marketing Business-to-business direct marketing is big business-Approximately $1 trillion/year. Types: Direct mail Telemarketing E-mail/Internet Role of Advertising Agencies in Business Market Advertising agencies work on advertising strategy and campaigns, prepare copy and layouts, study markets, select media, and carry out actual physical production of advertisement and its placement in selected media. Agencies do not always understand technology and particular buying process in business markets. Even when using advertising professionals, marketer must assure ad strategy and content is appropriate and effective. How can you do that? When using an agency, marketer is responsible for: Creating and measuring ad and campaign objectives. Understanding target market’s adoption process. Understanding how ad campaign fits into integrated promotion mix that moves potential buyer through each step in adoption process and supports continued customer satisfaction and repurchase. Testing ads. Role of Advertising Agencies in Business Market (cont.) Many business marketers don’t formally test advertising effectiveness (as strange as that may seem!). Agencies are paid for their ad production costs, plus a percentage (~15%) of every media placement. If a marketer relies on the agency to recommend placements, there may be a conflict of interest. Some marketers are asking agencies to accept payment based on ad and campaign performance (pre- and post-testing). Agencies are resisting. Business Publicity Press Releases Exclusive Features Press Conference Press Kits Business Publicity (cont.) Publicity can: Help build or add to company’s visibility or image. Introduce a new product, service, or improvement. Provide salespeople with easier entry into office of current or prospective customers. Good publicity doesn’t just happen; it is managed. PR department will create relationships with appropriate media representatives and provide them with newsworthy information presented from the company’s perspective. If all goes well, that is how it will appear. Because media are not paid to present publicity, there is little control over how it is presented. Marketers tend to have more influence with media outlets they regularly use to advertise. Business Publicity (cont.) Techniques for getting in the news: Press releases Exclusive features Press conferences Press kits Getting free publicity is nice, but it leaves you at mercy of poor placements, poor wording, or intentional negative spin. Use it with caution. Trade Shows and Exhibits Trade shows are often large component of total business marketing promotion budget allocation (behind personal selling and, possibly, trade journal advertising). Trade shows (large and small, industry-specific and general) are regularly scheduled in cities all across the world. COMDEX, the U.S. computer industry trade show, brings together 2,200+ companies and 220,000 attendees. Trade Shows and Exhibits Like all marketing expenditures, trade shows need to have measurable objectives and a budget. Using your business judgment, estimate the costs for a company in your area to exhibit at the annual “Manufacturing Week” trade show in Chicago. Expenses include: – – – – Space rental Hotel Display booth Shipping (2-way) Set-up/dismantle (union rate) – Air travel for four – VCR – Meals – Entertainment – Catalogs to pass out to attendees – Chairs, tables, carpet rental Trade Shows and Exhibits Measuring the Effectiveness of Business Promotion Campaign Pre-testing: • Measuring the awareness Post-testing: • • • • • • Aided recall Unaided recall Recognition Comprehension Believability Brand awareness