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B2B Advertising

The Role of Advertising


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