1

Communicating with the

B2B Markets

2

Elements of the Promotional Mix

Personal Selling

Advertising

Sales Promotion

Public Relations

3

Exhibit 13-1 A Model of the Communication Process

4

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)

5

Feedback

Rapidly changing markets frequently require feedback

before sales results are available.

Direct response requests (surveys, warranty

registrations) can be important, but require an active

interest by customers to provide feedback.

Personal selling and relationship marketing are critical

to the feedback process they allow for immediate and personal feedback.

6

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.

7

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

8

There are three categories of sales promotion.

Sales

promotion

focused on

the sales

team

Sales

promotion

focused on

channel

intermediaries

Sales

promotion

focused on

customers

9

The Role of Advertising

Integrated Communication Programs.

Enhancing Sales Effectiveness.

Increased Sales Efficiency.

Creating Awareness.

Interactive Marketing Communications.

Advertising Cannot

Substitute for effective personnel selling.

Advertising along cannot create product preference.

10

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

11

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.

12

B2B Advertising Message Development

Determine advertising objectives.

Evaluate the buying criteria of the target audience.

Analyze the most appropriate language for presenting the message.

13

Developing the Message

Perception

Focus on Benefits

Understanding Buyer

Motivations

14

The Power of

Internet Marketing Communications

1. Integrate the Internet into Media Plans.

2. Capture the Economies of the Internet.

3. Make Real-Time Changes.

4. Create Unlimited Shelf Space for Products.

5. Reach Customers on a Global Scale.

6. Build One-to-One Relationships with

Customers.

15

The Primary Areas for

Advertising Evaluation

1. A sound measurement

program entails substantial

advanced planning.

2. The advertising strategist

must determine;

1. what is to be measured,

2. how,

3. in what sequence.

3. A pre-evaluation phase is

required to establish a

benchmark.

16

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.

17

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?

18

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.

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20

21

22

23

24

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)

25

Ex 13-3 Buying Decision Processes and

Methods of Nonpersonal Communications

Process Flow Stages Nonpersonal

Communications Can

Problem definition Solution definition Product specification

Help identify problems

Provide information for defining solutions

Help customers remember vendors

DEFINITION STAGE

26

Ex 13-3 Buying Decision Processes and

Methods of Nonpersonal Communications

Process Flow Stages Nonpersonal

Communications Can

Solution provider search

Acquire solution provider(s)

Provide information on vendors

Provide information on products and

partners

SELECTION STAGE

27

Ex 13-3 Buying Decision Processes and

Methods of Nonpersonal Communications

Process Flow Stages Nonpersonal

Communications Can

Customize as needed

Install/test/train

Deliver service and training information

DELIVER SOLUTION STAGE

28

Ex 13-3 Buying Decision Processes and

Methods of Nonpersonal Communications

Process Flow Stages Nonpersonal

Communications Can

Operate solution Reach end result Evaluate outcomes Determine next set of needs

Provide reinforcement Deliver service information

Share performance data for evaluation

END GAME STAGE

29

Convergence

of the

Promotion Mix Print Promotions

Corporate

Advertising

30

Types of B2B Print Promotions

Advertising in

Trade Journals

Directory Advertising

Consumer Media

31

Corporate Advertising

Company reputation increases chances of getting a first hearing at a new account.

Community concessions and subsidies can be enhanced.

All things being equal, larger and more well-known companies will frequently get the business over a smaller, lesser known competitor

Why use corporate advertising?

32

Types of Sales & Support Literature (also called collateral materials)

Catalogs,

Product Brochures,

and Data Sheets

Capabilities

Brochures

Technical

Bulletins,

Test Reports, and

Application

Histories

33

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?

34

Internet and Web Communications in

Business-to-Business Marketing

The Web is used for two primary functions in B2B marketing:

Facilitating

Product Sales

and

Channel Functions

Communicating

with Customers

and Channel

Members

35

B2B web sites can help buying

center members in several ways:

Recognize and

understand their

problems

36

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

37

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

Collect and compare

information about

alternative suppliers,

partners, and delivery of

value

38

B2B web sites can help buying

center members in several ways:

Recognize and

understand their

problems

Provide access to training

manuals, user manuals,

and troubleshooting guides

for use during installation,

testing, and product use

Collect and compare

information about

alternative solutions

and costs

Collect and compare

information about

alternative suppliers,

partners, and delivery of

value

39

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 click-through

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.

40

Other Types of E-

Applications

in B2B

Communications

Newsletters

Opt-In e-mail

Effective Internet

Communications

On-Line

Seminars

Newsletter

Advertising