1. Integrated Communication Programs. 2. Enhancing Sales Effectiveness. 3. Increased Sales Efficiency. 4. Creating Awareness. Advertising Cannot be a Substitute for effective personnel selling. Cannot, by itself, create product preference. 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. The Decision Stages for Developing the Business-to- Business Advertising Program Setting Ad Budgets: Commonly Used Methods Percentage of Sales Allocate some percent of sales to advertising. Makes advertising a consequence rather than a determinant of sales and profits. Useful only if possess VALID historical data Most commonly used method Setting Ad Budgets: Commonly Used Methods Affordability Method Firm spends on advertising what it has available to spend Good cash flow control Most common with small firms Sales drive the advertising
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. Generally considered the best method. Setting Ad Budgets: Commonly Used Methods Developing the B2B Advertising Message Determine advertising objectives. Evaluate buying criteria of target audience. Analyze most appropriate language for presenting message. Organizing the Sales Force Typical Methods of Organizing the Sales Force Line Organizations (& Line/Staff) Functional Organizations Specialization Organization Sales Activities Geographic Areas Products Customers A Simple Line Organization Salesperson A Salesperson B Salesperson C Sales Manager A Two-Level Line Organization Salesperson Region A Sales Manager Salesperson Region B Sales Manager Salesperson Region C Sales Manager Sales Manager Line Organizations Characteristics Authority/responsibility for planning/implementing sales activities lie in hands of sales manager. Each person has only one boss. Line Organizations Advantages Very simple to understand and use. Easy to trace accountability. Relatively inexpensive (only a few highly-paid executives are necessary) Quick action possible since decision-making is in hands of relatively few people. Line Organizations Disadvantages As organization size increases, problems become more complex. Specialized skills often needed. Many sales managers cannot keep on top of all functions that relate to sales. Lack of trained replacements. Line Organizations Implications Best used by small organizations where operations can be clearly divided into basic functions of sales, finance, and production. Line and Staff Organizations Characteristics Same as line organization except staff positions added Staff positions dont have authority over line positions Advantages Staff provide sales manager with specialized skills Allows sales manager to be more efficient/ effective. Doesnt dilute his/her authority/contact w/salespeople. A Line & Staff Organization Market Forecaster Salespeople Region A Sales Manager Salespeople Region B Sales Manager Salespeople Region C Sales Manager Training Director Sales Manager Line and Staff Organizations Disadvantages Can be more expensive than a line organization. Conflicts may arise between line & staff executives. Staff executives may attempt to exert authority over line personnel. Line executives may ignore the counsel of the staff Line and Staff Organizations Implications If sales managers find themselves spending less time working with subordinates and more time performing planning & evaluating functions, may want to consider this organization Functional Organizations Characteristics Organization divided by function. Functional specialists have line authority. Salespeople report to multiple bosses. Advantages Specialist ensure their functions are carried out. Should improve performance in each functional area due to the specialization. A Functional Organization Salespeople Region A Sales Manager Salespeople Region B Sales Manager Training Director Salespeople Region C Sales Manager Market Forecaster Sales Manager