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MODULE-7THE PROMOTIONAL STRATEGIES
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INTRODUCTION
Personal Selling is the dominant tool in the industrial markets
Communication startegy, advertising, sales promotion, andpublicity are important factors.
They can enhance the company's image, build recognition forits products and services.
Advertising and sales promotion have to be coordinated withpersonal selling, so as to bring an effective communicationstrategy.
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USE OF ADVERTISING ININDUSTRIAL MARKETS
Reaching buying influencers:
Reaching buying influencers is often a difficult taskas they constantly move out of their responsibility orchange jobs.
They can be reached by advertising through trademagazines and general business publications.
Creating Awareness:
They alert potential purchasers to problems.
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Enhancing the Sales Call:
Effective planning enhances the sales call and
creats interest. When buyers are exposed to industrials ads, their
opinion of the firm improves. Increasing Sales Efficiency:
For some industrial producers, particularlyproducers of industrial suppliers, ads may be theonly way to reach buyers.
When there is no product differentiation, suppliers
has to remind the buyers about their uniqueness.
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Supporting Channel Members:
The middlemen are involved in the producer's
support activities, resellers as they are positionedso close to their consumers
Industrial ad frequently provide and economical andefficient supplement to personal selling.
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INDUSTRIAL ADVERTISINGMEDIA
General Business and Trade Publications:
Horizontal publications deal with specific functions,taskes, technologies and cut across industry lines
Vertical publications are directed towards a specificindustry and may be read by anyone from personon assembly line to the president.
Directory Advertising:
It is a highly credible medium, and for many buyers,their basic purchasing tool.
The buyers has to purchase directories for use.
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Consumer Media:
It is effective media as it tends to experience a min
of competitionfrom other industrial advertisers. Direct Marketing:
Direct mail-offers huge adventage over the use ofbusiness or trade publications
Telemarketing-it is a marketing communicationstool that employs specialists who utilizetelecommunications and information technology toconduct marketing and sales.
Catalogs and Data Sheets-it is the firms' uniqueability to support the selling function. They use tocompare products, prices applications.data sheetsprovide detailed technical informations.
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THE USE OF SALES PROMOTIONIN INDUSTRIAL MARKET
Trade Shows:Effective use of trade shows depend on the rolethey are to play in the overall promotional mix and how welltrade shows objectives are established.
Premiums, Incentives, and speciality Advertising:promotional
contests and giveaways are less frequently used in industrialmarketing.
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APPROPRIATING ADVERTISINGFUNDS
Variables affecting Advertising and Promotional Budgeting:
Product life cycle
Purchase frequency
Product variables Market share
Customer concentration
Customer base
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Methods used to Set Advertising Budgets:
What we can afford
Objective and task Percentage of expected sales
Experimentation
Desired share of voice
Accept angry proposal
Match competition
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Steps in the Objective task method of appropriating advertisingfunds:
Determine market objectives
Determine advertising objectves
Determine audiance to be reached
Determine reach, frequency and continuity
needs
Determine appropriate media to reachaudiances
Establish other promotional support needs
Determine control measures
Estimate necessary promotional funds toachieve media and communication objectives.
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DEVELOPING MESSAGE
STRATEGY Specifies how advertising objectives are to be achieved by
defining the theme for the communication program and the
company image desired in the market place.
Industrial advertising must provide the reader with useful
information regarding the intangible benefits.
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Industrial message must be formulated on the basis of:
Identifying audience needs
Keep the message to important specifics Case histories
Short stories
Audience participation Straight exposition
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Developing the Media Plan
An effective media plan considers:
Reach-The number of different target audience
to be reached
Frequency-The number of times they have to bereached to have an impact
Continuity-The length of the time the campaign
is to run
Media selection-circulation, editorial content
Scheduling-monthly, weekly or daily publications
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Evaluating the Advertising PlanPre testing Post testing
Markets Tests advertising messagestrategy against various targetaudience to measure reaction
Determine extent to whichcampaign succeeded inreching target market
Motives Determine why buyers behaveas they do and what productbenefits appeal to them
Measure effect of motives
Messages Determines what the messagesays and how well it is said
Determines if ad was seen,remembered and believed
Media Determines the bestcombination of media to reachthe target market
Determines whether the mediaused was effective in reachingthe target market
Scheduling Determines the aspect toreach, continuity and frequency
Determines if scheduling waseffective
Budgeting Determines the optimum levelof expenditures
Evaluates the effectiveness ofthe budgeting starategy
Results Evaluates whether theobjectives were achieved ornot, whether to continue or tochange, and how to spend infuture