B2B Marketing Communications

B2B Promotion Mix • Four More Ps:

–Personal Selling –Paid Advertising –Sales Promotion –Publicity

What’s different about industrial promotion?
• Differences due to:
– Products are more technical – Fewer buyers – Buyer location – Long, complex buying process

• Therefore, advertising, sales promotion and publicity play support roles to sales.

What else is different about industrial promotion?
• Not much mass media. • Mostly print advertising • Messages logical/factual, vs. emotional • May need different promotion to different organizations, or even people within a single organization.

Available Promotional Tools I
• General Business Publications: Forbes • Trade Publications
– Horizontal: Job/Function focused: purchasing – Vertical: Industry focused: steel, agriculture

• Industrial Directories: Thomas Register • Trade Shows • Catalogs

Available Promotional Tools II
• • • • • • • • Direct Mail Videos Technical Reports Web Sites/Internet Samples Publicity Novelties Telemarketing

Spending Promotional Dollars
• • • • • • • • Specialized business pubs: 23% Trade shows, exhibits, displays: 18% Direct Mail: 10% Electronic Media/Internet: 9% Publicity/Public Relations: 7% General Magazines: 6% Dealer/Distributor Material: 5% Directories, Yellow Pages: 5%

Cost/Effectiveness of Promo Mix
Cost/Contact High Effectiveness

Field Salesperson Inside Salesperson (Telemarketing)

High

Medium

Trade Shows Direct Mail Catalogs/Manuals Trade Journals
Medium

Low

Other Advertising

Low

Review of Buying Process
• Problem Awareness: Sr. Mgmt/Current Users; use
Trade Shows and Trade Publication Advertising

• Solution Identification/ Information Search:
Techies; use Catalogs, Samples, Trade Journal Advertising, Sales Force (defense)

• Evaluate Alternatives: Purchasing Mgrs.; use
Comparative Adv., Testimonials, Sales, Tech Reports, Publicity

• Decide/Purchase: SALES: negotiate, persuade, adapt • Post-Purchase Evaluation: Advertising, inside
sales, direct mail

Why businesses should advertise.
• Can reach people in the buying center that sales can’t reach • Good tool for prospecting (1-800; reply card) • Can lay groundwork for salesperson’s call
– Creating awareness – Providing general information

Why businesses should advertise.
• Can reduce cost of sales call • Motivate/support intermediaries/distributors • Can create pull for customer’s products, leading to increased derived demand • Can convey desired image

Print Media
• Advantages
– Not fleeting like broadcast – Can include technical information – Buyer can go back and see again – Buyer can go through at own pace & focus on what she/he is interested

• Disadvantages
– Can’t possibly include all pertinent information – May not be seen – Difficult to assess effectiveness (like all adv.)

Advertising Objectives
• Express as sales or market share (easy to measure) • Could also use awareness levels or changes in attitudes, beliefs, or perceptions • Might just be reminder (esp. in decline) • Post-sale reassurance (reduce cognitive dissonance) • BE SPECIFIC: Time and Audience • Unfortunately, most managers don’t know or understand their objectives

See how many objectives this IBM ad targets ☺

IBM ad.flv

Advertising Objectives II
Objective
Awareness

Strategy
Corporate Generic Preemptive Brand Image Positioning Unique Appeal to action

Characteristics
Diffuse, Long Term Benefits; Low Persuasion Informative, not comparative Establish superiority. Informative, moderate persuasion Focus on benefits, not competitors Emotion, moderate persuasion Focus on differentiation vs. competition. High/moderate persuasion What comp. Does not do. Hi persuasion Incentive to act. High persuasion

Knowledge Liking Preference Conviction Purchase

How much to spend?
High Standardized Products Broad product line Superior product quality High price Low Customized Products Narrow product line Lower product quality Low/Average price

The Message
• Need visual magnetism: get attention
– Color, contrast, angles, straight lines, oddities, …

• • • •

Select the right audience Invite reader into the scene: identify with ad Promise reward (benefits, good performance) Back up promise: support claim
– Testimonials, tech standards, …

The Message ….contd
• Organize ad to present message in logical sequence • Speak to reader as an individual, personalize, keep simple, ACTIVE VOICE
– Avoid Clichés

• Easy to read • What vs. where or who: Focus on product or service first, not the company (except…) • Reflect company’s character & personality
– Be consistent, takes long time to develop and maintain image

• General B. Publications (Forbes, Business
Week)
– Good for products with broad appeal to large # of customers, who are geographically dispersed. – Good to project image to business community. – May be best to reach upper level management. – Cost up to TEN TIMES price of trade journal ads.

Choosing Media …

Choosing Media …

• Trade Journals (Modern Metal, Purchasing Today)
– – – – Special Interest. Knowledgeable readers. Vertical vs. Horizontal. Useful for directing specific, technical messages Can reach technical people who read these journals

Choosing Media …contd…
• Industrial Directories (Thomas Register)
– List suppliers of variety of product types – Also Catalogs, like Sweet’s

• Telemarketing
– Incoming and outgoing – Complaints, inquiries, orders, service requests

• WWW
– Catalogs, orders, email, phone directories, information on company and products

• Direct Mail: Brochures, Intro letters

Evaluating Advertising
• Compare outcomes to goals. • Look at bottom-line increases in sales. Be sure to account for other factors (pricing, sales efforts, competitor actions) • Nonlinear relationship, diminishing returns • Time lag can be months • Was target audience reached? • Which medium was most effective? $/sale • Effect of adv on audience attitude, awareness, recall, behavioral intent (to buy)

Sales Promotion
• • • • • • • Supplements and complements sales Samples Contests for distributors Advertising Specialties: Trinkets and Trash Trade Shows, conventions Catalogs Distribute Technical Reports

Trade Shows

Benefits of Trade Shows
• Formal exhibition of products • Opportunity to make lots of contacts at once • Good for customers to ask questions and compare competitors • Introduce/demonstrate products • Build awareness • Make personal contacts • Parity with competitors • Recruit employees, reps, and distributors

Tips while participating in Trade Shows
• • • • • • • • • • Need to identify goals Measure effectiveness Know which shows to focus on Displays and Literature: Location, Quantity/Quality Static Displays: Well trained salespeople. Attention-Getters: Contests, Shows, Games, Gimmicks Audiovisual Presentations: Tapes, Computers, Films Live Product Demonstrations: 10 Minutes ± Be on MUST SEE list Take-Aways: Literature, brochures, samples

Catalogs
• Contain information on the company’s line of products. • Might include price lists & warranties. • Can customize • Use Direct Mail, Trade Shows, Sales to distribute • Put on-line • Publish in industry directories

Technical Reports
• Describe product and its use • Gives fairly detailed specifications (customer understanding, no trade secrets) • Graphs, charts, illustrations • May give results of product testing • Distribute via direct mail, trade shows, sales

Publicity
• • • • • • • • • “FREE” (or at least less than advertising) Credibility: Objective 3rd Party Events: Seminars, etc Sponsorships (even sponsor lunch, tour, etc) Press releases Press conferences Public speaking (CEO invited…Bill Gates) Article Writing in trade journals Supplemental Role: Inform about new products;
Generate inquiries; Increase awareness