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2002 Edition
Vitale and Giglierano
Chapter 13Communicating with the Market
Prepared by John T. Drea, Western Illinois University
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Elements of the Promotional Mix
Personal Selling
Advertising
Sales Promotion
Public Relations
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Exhibit 13-1 A Model of the Communication Process
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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)
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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.
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Message interpretation is subject to…
SelectiveSelectiveExposureExposure
Refers to theactual media
to which a receiver maybe exposed.
SelectiveSelectiveAttentionAttention
Only usefulinformation is seen or heard.It is used to
preventinformationoverload.
SelectiveSelectiveRetentionRetention
Refers to the “storage
function” – the portion of a message retained
that is recalled.
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What Promotion Can and Can’t Do
• Promotion can…– Encourage awareness– Inform about
availability– Persuade trial– Build image– Encourage repurchase– Support selling efforts
• Promotion can’t– 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
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There are three categories of sales promotion.
Sales Sales promotionpromotionfocused onfocused onthe sales the sales
teamteam
Sales Sales promotionpromotionfocused onfocused on
channelchannelintermediariesintermediaries
Sales Sales promotionpromotion
focused on focused on customerscustomers
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Public Relations
• PR defined:– All efforts to obtain the attention and favorable
coverage of the firm’s 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)
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Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications
Process Flow StagesProcess Flow Stages Nonpersonal Nonpersonal Communications Can…Communications Can…
•Problem definition•Solution definition•Product specification
•Help identify problems•Provide information for defining solutions•Help customers remember vendors
DEFINITION STAGEDEFINITION STAGEDEFINITION STAGEDEFINITION STAGE
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Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications
Process Flow StagesProcess Flow Stages Nonpersonal Nonpersonal Communications Can…Communications Can…
•Solution provider search•Acquire solution provider(s)
•Provide information on vendors•Provide information on products and partners
SELECTION STAGESELECTION STAGESELECTION STAGESELECTION STAGE
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Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications
Process Flow StagesProcess Flow Stages Nonpersonal Nonpersonal Communications Can…Communications Can…
•Customize as needed•Install/test/train
•Deliver service and training information
DELIVER SOLUTION STAGEDELIVER SOLUTION STAGEDELIVER SOLUTION STAGEDELIVER SOLUTION STAGE
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Ex 13-3 Buying Decision Processes and Methods of Nonpersonal Communications
Process Flow StagesProcess Flow Stages Nonpersonal Nonpersonal Communications Can…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 STAGEEND GAME STAGEEND GAME STAGEEND GAME STAGE
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Convergence of the
Promotion Mix
Convergence of the
Promotion MixPrint PromotionsPrint Promotions CorporateCorporate
AdvertisingAdvertising
Direct Mail
Direct Mail Sales and
Sales and
Support Lite
rature
Support Lite
rature
Channel
Channel
Promotions
Promotions
Promotional
Promotional
Merchandise
Merchandise
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Types of B2B Print Promotions
Advertising inAdvertising inTrade JournalsTrade JournalsAdvertising inAdvertising in
Trade JournalsTrade Journals
Directory AdvertisingDirectory AdvertisingDirectory AdvertisingDirectory Advertising
Consumer MediaConsumer MediaConsumer MediaConsumer Media
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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?
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Types of Sales & Support Literature(also called collateral materials)
Catalogs, Catalogs, Product Brochures,Product Brochures,
and Data Sheetsand Data Sheets
CapabilitiesCapabilitiesBrochuresBrochures
Technical Technical Bulletins,Bulletins,
Test Reports, andTest Reports, andApplicationApplicationHistoriesHistories
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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?
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Internet and Web Communications in Business-to-Business Marketing
The Web is used for two primary functions in B2B marketing:
FacilitatingFacilitatingProduct Sales Product Sales
andandChannel FunctionsChannel Functions
FacilitatingFacilitatingProduct Sales Product Sales
andandChannel FunctionsChannel Functions
CommunicatingCommunicatingwith Customerswith Customers
and Channeland ChannelMembersMembers
CommunicatingCommunicatingwith Customerswith Customers
and Channeland ChannelMembersMembers
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B2B web sites can help buying center members in several ways:
Recognize and Recognize and understand theirunderstand their
problemsproblems
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B2B web sites can help buying center members in several ways:
Recognize and Recognize and understand theirunderstand their
problemsproblems
Collect and compareCollect and compareinformation aboutinformation about
alternative solutionsalternative solutionsand costsand costs
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B2B web sites can help buying center members in several ways:
Recognize and Recognize and understand theirunderstand their
problemsproblems
Collect and compareCollect and compareinformation aboutinformation about
alternative solutionsalternative solutionsand costsand costs
Collect and compare Collect and compare information about information about
alternative suppliers,alternative suppliers,partners, and delivery of partners, and delivery of
valuevalue
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B2B web sites can help buying center members in several ways:
Recognize and Recognize and understand theirunderstand their
problemsproblems
Provide access to trainingProvide access to trainingmanuals, user manuals,manuals, user manuals,
and troubleshooting guidesand troubleshooting guidesfor use during installation,for use during installation,testing, and product usetesting, and product use
Collect and compareCollect and compareinformation aboutinformation about
alternative solutionsalternative solutionsand costsand costs
Collect and compare Collect and compare information about information about
alternative suppliers,alternative suppliers,partners, and delivery of partners, and delivery of
valuevalue
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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.
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Other Types of E-Applications
in B2B Communications
Newsletters
Opt-In e-mail
Effective InternetCommunications
On-Line Seminars
NewsletterAdvertising