MODULE-7 THE PROMOTIONAL STRATEGIES

INTRODUCTION

Personal Selling is the dominant tool in the industrial markets Communication startegy, advertising, sales promotion, and publicity are important factors. They can enhance the company's image, build recognition for its products and services. Advertising and sales promotion have to be coordinated with personal selling, so as to bring an effective communication strategy.

USE OF ADVERTISING IN INDUSTRIAL MARKETS

Reaching buying influencers:

Reaching buying influencers is often a difficult task as they constantly move out of their responsibility or change jobs. They can be reached by advertising through trade magazines and general business publications. They alert potential purchasers to problems.

Creating Awareness:

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. For some industrial producers, particularly producers of industrial suppliers, ads may be the only way to reach buyers. When there is no product differentiation, suppliers has to remind the buyers about their uniqueness.

Increasing Sales Efficiency:

Supporting Channel Members:

The middlemen are involved in the producer's support activities, resellers as they are positioned so close to their consumers Industrial ad frequently provide and economical and efficient supplement to personal selling.

INDUSTRIAL ADVERTISING MEDIA

General Business and Trade Publications:

Horizontal publications deal with specific functions, taskes, technologies and cut across industry lines Vertical publications are directed towards a specific industry and may be read by anyone from person on assembly line to the president. It is a highly credible medium, and for many buyers, their basic purchasing tool. The buyers has to purchase directories for use.

Directory Advertising:

Consumer Media:

It is effective media as it tends to experience a min of competitionfrom other industrial advertisers. Direct mail-offers huge adventage over the use of business or trade publications Telemarketing-it is a marketing communications tool that employs specialists who utilize telecommunications and information technology to conduct marketing and sales. Catalogs and Data Sheets-it is the firms' unique ability to support the selling function. They use to compare products, prices applications.data sheets provide detailed technical informations.

Direct Marketing:

THE USE OF SALES PROMOTION IN INDUSTRIAL MARKET

Trade Shows:Effective use of trade shows depend on the role they are to play in the overall promotional mix and how well trade shows objectives are established. Premiums, Incentives, and speciality Advertising:promotional contests and giveaways are less frequently used in industrial marketing.

APPROPRIATING ADVERTISING FUNDS

Variables affecting Advertising and Promotional Budgeting:

Product life cycle Purchase frequency Product variables Market share Customer concentration Customer base

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

Steps in the Objective task method of appropriating advertising funds:

Determine market objectives Determine advertising objectves Determine audiance to be reached Determine reach, frequency and continuity needs Determine appropriate media to reach audiances Establish other promotional support needs Determine control measures Estimate necessary promotional funds to achieve media and communication objectives.

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.

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

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 be reached 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

Evaluating the Advertising Plan

Pre testing Markets Tests advertising message strategy against various target audience to measure reaction Determine why buyers behave as they do and what product benefits appeal to them Determines what the message says and how well it is said Determines the best combination of media to reach the target market Post testing Determine extent to which campaign succeeded in reching target market Measure effect of motives

Motives

Messages Media

Determines if ad was seen, remembered and believed Determines whether the media used was effective in reaching the target market

Scheduling Budgeting Results

Determines the aspect to Determines if scheduling was reach, continuity and frequency effective Determines the optimum level of expenditures Evaluates the effectiveness of the budgeting starategy Evaluates whether the objectives were achieved or not, whether to continue or to change, and how to spend in future