Business Communication
ADVERTISING, Trade Shows, and
Personal Selling
What are the primary source of
communication to Buyers?
• Advertising and Sales Promotion
• Managing the Personal Selling
• Catalog
• Trade Magazines,
• Trade Shows
• Direct Mail
• Website
• E-mail
• SMS
What is integrated communication?
• Integrating personal and non personal
communication – some of them are one way,
two way, and instantly
How do you cut through the clutter
and move the prospective customer
further along the purchase process?
Addressable/
Customized
Mass
Broadcast- Two-way Two-way
one-way with time lag instantaneous
message in response in response
Why we need advertising?
• Can reach to unidentified buying influential
• Rupee sales call higher than ad
Advertising’s Role
• Integrated Communication Programs
• Enhancing Sales Effectiveness
• Increased Sales Efficiency
• Creating Awareness
• Interactive Marketing Communications
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What Advertisement
Communicate?
• Besides focus on user's benefits of the
company reputation, facilitates the
salesperson’s job by increasing awareness of
the company, its product, products’ benefit
• What ultimately leads to?
• Brand awareness – MS up, profit up; in fact
some study shows gross margin ranges from 4
to 6 times higher with ad compared to non-ad
Are You alone in the field? So what
you need to do?
• Remind actual and potential buyer, make
aware about new product and services.
Average cost of business call is Rs 3000/-
compared to Ad which cost few rupees
• 61% design engineers relating an enquiry card
from a trade journal indicated that they were
unaware about company before the ad
Ad illustrate product benefit– how it
helps prospects?
• Request for more information and you can
collect information about prospect’
application, interest and how potential they
are as customer
• What are the limitation of ad ?
• It can not substitute for effective personal
selling
• Normally, can not create product preference.
How ad is managed?
The Decision Stages: Developing
Business-to-Business Advertising
Program
Advertising is only one aspect of
entire marketing strategy.
The advertising decision process
begins with formulating
advertising objectives.
Equally important: selection and
evaluation of media.
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So what role ad objective play?
• Awareness
• Provide information
• Influence attitude
• Remind buyer about company and product
Why written objective is
necessary?
• Objective must say specific outcome eg.
Creating awareness amongst 30% Design
Engineer (target aud)
• Define the DMU to be reached; creative
strategic statement provide guidelines for the
Company and the Agency
What is the rule of thumb in
budget?
• 1% of sales or competition
• Unfortunately too persuasive thought even
when ad is very important element
Best way is set Objective-Task
• O: Specific marketing objective – Volume, MS,
Cost, Mkt seg
• A: Access consumer in performing these
objectives
• M: Measurable communication to achieve
Mktg obj
• B: Estimate Budget to accomplish these goal
How can you overcome perceptual
barrier in communication?
• Screen out message that are inconsistent with
buyer attitude, need and belief --- how
message will appeal to them
• Appeal on benefit, understanding buyer’s
motivation by MR
Any idea how much copy factor
contributes to ad’s success or
failure?
• 80%; focus ads on reader’s needs rather than
advertiser’s needs
What horizontal and vertical
publication?
• Horizontal: Purchase journal; read by specific
DMU– sp task force, technical and other
functions whatever be the industry
• Vertical: Rubber journal Read by all DMU;
foreman to President within specific industry
• You can also communicate by direct mail –
Mailing list, Database etc
Exhibition and Trade Show
• Place of E&TS in non-personal selling
Effective sales message can be delivered to a
larger audience at one time
Develop qualified leads
Cost per contact is lower than sales call
Provide customers with hands-on experience
Enhances good will
Free publicity
Trade show effectiveness
• Many Trade show leads result in a sale
• Cost to close a trade show generated sales
lead is lower than that of personal sales call
• Reaches prospect sales persons may not
ordinarily see
Role and Planning Trade Show
Strategy
• Setting Objectives
• Selecting the shows
• Managing the Exhibit
• Evaluating Trade Show performance
Managing the Personal
Selling Function
Selling Center—Primary Goals
Acquiring and processing pertinent
marketing-related information
Executing effective selling strategies
Managing
Business
Marketing
Relationships
Fig. 17.2
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Relationship Quality—Two Dimensions
• Trust in salesperson
• Satisfaction with salesperson’s
service and knowledge
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B2B Sales Force Management
• Organizing the sales force
• Managing key accounts
• Distinguishing characteristics of high-
performing account managers
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Organizing the Personal Selling Effort
Geographical Organization
• Most common form
• If reduces travel distance and time between customers, this method usually
minimizes costs.
• Major disadvantage of geographical sales organization: each salesperson
must be able to perform all selling tasks for all firm’s products and for all
customers in territory.
Product Organization
• Salespersons specialize in relatively narrow components of total product
line.
• Prime benefit: enables sales force to develop deeper product knowledge
level--enhances value of firm’s total offering to customers
Market-Centered Organization
• Salespeople learn specific requirements of industry or customer type;
salespeople better prepared to identify and respond to buying influentials.
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The Cycle of Account Management Success
Prioritize
Relationship
Building as
Internal Key Role Develop
Reputation Strong
Enhanced Internal
Links
Forge Multiple
Successful
Connections in
Engagement
Client
Outcome
Organization
Manage Client Initiate
Relationships at Involvement
Multiple Levels with Client
Identify Resources
Early Involvement
Internally Aligned
in Client
with the Client Partner with Engagement
Client to
Shape New Business
Proposal
Knowledge of Knowledge of
Profitability Competitive
Strategies 27
Drivers
Sales Force Administration
Recruitment and Selection
Training
Supervision and Motivation
Evaluation and Control
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Orville Walker Jr., Gilbert Churchill Jr., and Neil Ford define motivation as:
The amount of effort the salesperson “desires to expend on each of the activities or
tasks associated with his (her) job, such as calling on potential new accounts, planning
sales presentations, and filling out reports.”
Determinants
of
Salespeople’s
Performance
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Two Types of Rewards
• Internally mediated rewards
• Externally mediated rewards
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Job Satisfaction: Managerial Implications
Salespeople have higher job satisfaction levels when:
• They perceive that first-line supervisors closely direct
and monitor activities.
• Management provides them with assistance and support
needed to meet unusual and non-routine problems.
• They perceive themselves to have an active part in
determining company policies and standards that affect
their jobs.
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Critical Sales Management Task: Deploying Sales Force
Deployment Decisions Facing Sales Organizations
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Three Important Sales Territory Traits
Potential: measure of total business opportunity
(commissions or compensation) for all salespeople in
particular market
Concentration: degree to which potential confined to
few larger accounts in territory
Geographic Dispersion: if high, sales effort will be
wasted in travel time.
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Sales Resource Opportunity Grid
• Deployment analysis
matches sales resources
to market opportunities.
• Sales resource
opportunity grid can
classify industrial firm’s
PCU portfolio.
• PCU opportunity: total
potential that PCU
represents for all sellers
• Sales organization
strength includes
competitive advantages
or distinctive
competencies that firm
enjoys within PCU.
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WHAT WE HAVE LEARNT?
