PowerPoint by:

Ray A. DeCormier, Ph.D.

Central Connecticut State University
Chapter 13:

Business Marketing
Communications:
Advertising and
Sales Promotion
Advertising and sales promotion supplements personal
selling efforts. This chapter considers:

1. The powerful role of social media can assume in business
marketing strategy
2. The decisions that must be made when forming a
business advertising program
3. The business media options, including the powerful role
of Internet marketing communications
4. Ways to measure business advertising effectiveness
5. The role of trade shows in the business communications
mix and how to measure trade show effectiveness
Introduction
Business has learned that not even the best
products sell themselves.

Benefits, problem solutions and cost
efficiencies need to be sold through effective
communications to everyone from users to
influencers to decision makers.

Due to

a. Product complexities (technical),
b. The small number of buyers,
c. The high price products/services, and
d. Extensive negotiation process

The primary communications vehicle for selling
Industrial/Business products/services is the:

SALESPERSON!
OTHER NON-PERSONAL COMPONENTS
There is a need for other non-personal requisites
such as:

Advertising
Catalogs
Internet presence
Trade shows
Promotional spending

All have a unique way of getting the message out,
however, they dont close deals as well as personal
selling!
B2B Social Media
6
Channels of the social web where prospects and businesses
communicate across diverse platforms
Key Platforms:
1. Discussion Forums
2. Blogs
3. Wiki
4. Social Networks

Use of Social Media in B2B
7
Monitor what prospects are saying about the company
Capture interest from prospects looking for products
Coordinate follow-up to social media interactions

Several blogs in five languages

Sponsor several online communities

Support forums: find answers to laptop questions

Online community for consumers to post
innovative ideas for Dell to consider

Customer Decision Journey
The CDJ is the customers decision process in
selecting a particular product
Often find a mismatch between media used and the
touch points at which buyers are best influenced
CDJ includes two critical steps
1. Inspiration: use online channels to find, create and
compare
2. Sharing: relate experiences using a variety of social media

Key: Customer experience includes everything
from discussions on social media to meetings with
sales people. Social media facilitate targeted,
personalized contact across the customer
experience landscape
Be an integral part of an integrated
communication programs

Enhance sales effectiveness

Increase sales efficiency

Create awareness

Create preferences for company, products, etc.

Facilitate interactive marketing communications
Integrated Communication Programs

Integrated Communications is the intertwining
of all communication methods to include:
Advertising
Sales Promotion
Online Media
Public Relations
Personal Selling

Of these promotional techniques, personal
selling is most important in B2B marketing!
ENHANCING SALES EFFECTIVENESS

Combining advertising and personal selling
makes the selling job easier and more
efficient.

People who were aware of the ad thought the
salesperson was more knowledgeable than
companies that dont advertise.

Profits and gross margins also increase
when advertising is employed.
Advertising increases efficiency in two
ways:
1. Serves as a reminder
2. Informs the market about new
products/developments

Advertising is pennies when compared to
$100s for a sales call.
Business advertising creates:

1. Awareness
2. Brand preference
3. Conviction that a brand will meet their
requirements & hopefully
4. Facilitate purchase
14
The Internet has created a two-way
communication process, permitting the
marketer and customer to more rapidly
exchange information.

This flexibility has allowed the marketer to
personalize communications and customize
solutions.


Effective B2B communication needs to be
integrated among all media methods; however,
it does have its limitations. It:

1. Cannot create product preference for many
products.
2. Cannot close a sale!
3. Cannot substitute for personal selling.
4. Can supplement personal selling but not
replace it.



Advertising is only one
aspect of an entire
marketing strategy.

The advertising decision
process begins with
formulating advertising
objectives.

Equally important:
selection and evaluation
of media.
The Decision Stages: Developing
Business-to-Business
Advertising Program
Figure 13.1
Defining Advertising
Objectives
Marketing managers realize:

1.Advertisings mission flows directly
from the overall marketing strategy.
2.Advertisings job is to:
a. Create awareness
b. Provide information
c. Influence attitudes
d. Remind buyers about product and
company

ADVERTISING OBJECTIVES
Advertising objectives must be:
1. Realistic
2. Measurable
3. Specific outcomes during specific times

Example: To be effective, the advertising
campaign shall increase awareness from
15% to 30% during the period from April 1
st

to June 31
st
.
One objective of advertising is to reach influentials
who are often difficult to contact via personal
selling.

Influentials are interested in specific features and
attributes that solve certain problems. Advertising
needs to focus upon that issue.

Marketers must understand who the target market
is and how to reach them for an advertising
campaign to be effective.
Creative Strategy Statements
Provide guidelines for the company and
advertising agency to position (or reposition) the
product.

All creative efforts should include:
1. Copy
2. Theme
3. Color, design, etc.
4.Media
5. Tactics
Managers tend to employ the following rule
of thumb:

1. Allocate some percent of sales to
advertising

2. However, this is a dysfunctional rule!


Advertisings purpose is to inform and influence sales,
but it is not to create sales.

A dysfunctional policy of tying advertising budgets to
% of sales defeats the purpose.

For example:
If there are no sales, then is there no advertising
budget?
If sales are declining, do you cut advertising costs too?

Does that make sense?
A better approach for allocating advertising
costs is to relate them to advertising
objectives.

The Objective-Task Method focuses on the
communications effects of advertising

Not on the sales effects.



1. Establish objectives in terms of sales volume,
market share, profit contribution and market
segments.

2. Assess all communication functions to realize
these objectives.

3. Define specific measurements required to meet
these objectives such as market share.

4. Estimate the budget needed to accomplish them.

How much is enough?

Advertising costs is like owning an old gold mine.
It can return millions, or be a bottomless pit.

The only way to assure success is to establish and
measure against goals.

Another matter is the political side of the decision.
The concern here is that internal politics often
determine budgets, not the technique-driven
process.

Passing the Threshold
In order for a message to be heard, it is
necessary to repeat it often.

Of course, the question is: How often?

Research suggests that advertising must
pass through a certain threshold before a
meaningful message can be understood by
the market to move product from
awareness to preference.
Passing the Threshold
A small budget is not enough
A large budget is like throwing money away

Because budgeting advertising is so important,
marketing managers should:
1. Set clear objectives
2. Evaluate tasks required
3. Compare costs against industry norms
4. Allocate a proper budget
5. Design an effective advertising message
DEVELOPING THE MESSAGE
Three Considerations:

Perception

Benefits focus

Understanding buyer motivations
Developing B2B Advertising Message


1. Determine advertising objectives
2. Evaluate target audiences buying
criteria
3. Analyze most appropriate language,
format and style to present message.
4. Then consider the message!
PERCEPTION, PERCEPTION, PERCEPTION
In business, perception is almost the same as truth.

The message needs to attract the right person.

In most cases, that is the decision maker.

For an advertising messages to be considered, it has to:
Attract the right persons attention, &
Be interpreted properly.

For example, techies respond to technical ads and non-techies
respond better to non-technical ads.

Industrial buyers focus on solutions to business
problems that considers:

a. A better way to accomplish tasks

b. A less expensive way to manufacture something

c. A new approach to either make or save the company
money

d. A different way to free up time

Of all the challenges, this is one of the most
difficult to understand.

Understanding the buyer is a very complex
matter because the standard rules change as
the environment changes.

One way to address this problem is to employ
marketing research to delineate influencers
criteria for buying in each segment.
Effective Ads
Effective ads are:

A. Logical
B. Rational
C. Provide a clear description of the product
D. Present product benefits clearly
E. Details product quality
F. Provide performance measures
B2B media are selected by target audiences

Should we use trade publications, direct mail,
Internet or all of them?

What is the best way to spend advertising
money to generate the desired response
(customer contacts)?
Shifting of Advertising to Digital
Form
B2B marketers are always looking for ways to
communicate better with customers & prospects.

Use of Internet microsites (specialized web pages
that prospects jump to from an email or PR piece
that contain videos) is providing excellent results.

Use of online videos help customers and prospects
from around the world solve their business
problems.

Videos are particularly effective for telling the story
and producing serious leads.
Using proper key words or key phrases within the site
is an absolute necessity for driving leads to that site.
Ideas for successful Internet advertising include:

1. Make sure site is search-crawler friendly
2. Good key words must tie into solutions sought
3. Create a relevant, targeted keyword list that reflects
problem, product, etc.
4. Write clear, compelling ads that use key words and
isolate your value proposition
5. Track results and measure everything

Business Publications
There are more than 2700 business
publicationsselecting the right ones is
another difficult task.

Horizontal Publications are directed at the
specific task, function or technology
regardless of industry.

Vertical Publications are oriented to
readers in a specific industry.
Business Publications
Many trade publications are requester publications.

This is where the reader is interested in a certain
subject and receives a certain publication for free in
exchange for demographic information such as title,
function and buying responsibilities.

Advertisers know who their desired audience are!
Cost of Advertising
Companies need to allocate an advertising
budget for:

Business Publications
Sales Promotions
Direct Marketing (mail & e-mail)
Internet Advertising

Include:

Cost/1000 contact is one consideration

Circulation based on the TARGET audience

Does the medium also have Internet viewing?

Frequency and scheduling is another
complicated issue
Direct Mail is commonly used for:

a. Image, product and service promotion
b. Sales force support by providing leads
c. Distribution channel communications
d. Getting pertinent information directly to influencials

Direct mail is efficient providing the list is good.
Much direct mail is considered junk mail.
Direct mail is 10 times more expensive than e-mail

E-mail campaigns often yield more responses and
results are quicker
Example: 1/3 of all responses were generated within
24hrs.

Many firms integrate their CRM programs with e-mail

Many firms provide an e-mail alert service and/or an
e-mail newsletter
In order to successfully accomplish this, it is
important to have all the systems in place first.

They include:
a. E-mail acknowledgements
b. Order entry
c. Order fulfillment
d. Money exchanges
e. Follow-up contact
f. Q&A service
g. Troubleshooting systems
MEASURING EFFECTIVENESS

Rarely do ads result in immediate
business.
But, it does create awareness hopefully
leading to preference.
Measurements can be direct or indirect.
Direct communication is measured by:
percent awareness.
Indirect communications are measured
by: word-of-mouth and understood
perceptions.
1. Sound measurement
program entails substantial
advanced planning.

2. The advertising strategist
must determine:
What is to be measured
How to measure it
In what sequence

3. Establish benchmarks in
pre-evaluation phase
Five Primary Areas for
Evaluating Advertising
Figure 13.2
Knowledge
Recognition
Recall
Awareness
Preference
Motivation

It is not always possible to measure
effects on actual sales.
Trade Shows
Another important form of promotion is
trade shows.

Effective selling message can be delivered to
a relatively large and targeted audience at
one time.

Firm can identify potential clients and
provide sales personnel with qualified leads.

Trade shows can also be used to introduce
new products.

Customers can get hands-on experience with product
in one-on-one selling situation.

Company can enhance general goodwill.

Company often benefits from free publicity.

Trade shows allow competitors to look at each other.

International business can be facilitated resulting in
quicker entry into foreign markets.

Many sales are also made at these shows too!

Cost of meeting prospects is around $250 which is
much less than making a personal sales call.
Trade-Show Communications Strategy
To develop an effective trade show communications
strategy, certain questions need to be addressed:

What functions should trade show perform in
total marketing communications program?
To whom should trade show marketing effort be
directed?
What is companys appropriate communication
mix at the show?
How should trade show investments be audited?
Trade Show Objectives
1. Discover decision influencers.
2. Identify potential customers.
3. Provide company product, service and information.
4. Try to discover product application problems.
5. Create sales.
6. Handle customer problems.
7. Build corporate image.
8. Gather competitive intelligence.
9. Enhance sales force morale.

Challenge Question: What trade show to
attend?

Answer: Attend trade shows that are attended
by prospective customers.

To find trade shows, use leading trade show
directories such as:
a. American Trade Show Directory
b. ExhibitNet.com database
c. Exhibit Surveys, Inc.
SELECTING/EVALUATING TRADE SHOWS
Exhibit Surveys, Inc. publishes data on:

Net Buying Influences
Measures percentage of show audience that have
decision authority for product types being
exhibited

Total Buying Plan
Measures percentage of audience planning to buy
exhibited products within 12 months
Lead Generation
Trade shows are probably most important for lead
generation.

Attaining leads is so important to companies
because without them, a company cannot survive.

There is a natural turnover of customers so a
company has to constantly be looking for new
business.

Its just a way of life.
Trade shows are different than personal selling
even though one is selling never-the-less.

The trade show is more theatrical, and contact is
very short (5-10 min.), therefore the process is to:

Sell the product first,
Sell the company next,
Sell the salesperson last.

This is opposite to traditional selling situations.
Flows Tactical Activities
Show Attendees
Target Audience
Attracted To Booth
Contact w/Salesperson
Sales Leads
Pre-Show &
At-Show
Impersonal
Promotional
Activities
Personal
Promotional
Activities
Source: Gopalakrishna & Lilien, A Three-Stage Model of Industrial Trade Show Performance,
Working Paper #20, Marketing Science 14 (Winter 1995) :pp.22-42
Measuring the Success
Companies need to set measurable goals in
advance of the trade show including:

a.Number of leads
b.Likely effect on sales
c.Potential effect on new accounts
d.Effect on corporate image
e.Expenditures that tie into an adequate ROI