INDUSTRIAL COMMUNICATION: ADVERTISING, 1

SALES PROMOTION, PUBLICITY

AND DIRECT MARKETING
ADVERTISING, SALES PROMOTION, DIRECT MARKETING, AND
PUBLICITY ARE MAINLY USED TO CREATE AWARENSESS,
ENHANCE COMPANY REPUTATION, DISSEMINATE INFORMATION
ON PRODUCTS, OR GENERATE LEADS FOR THE SALES PEOPLE.
PERSONAL SELLING IS OFTEN THE MOST IMPORTANT ELEMENT
OF THE INDUSTRIAL MARKETER’S COMMUNICATION STRATEGY,
BECAUSE OF THE TECHNICAL COMPLEXITY OF MANY
INDUSTRIAL PRODUCTS AND THE EXTENSIVE NEGOTIATING
PROCESS INVOLVED IN SELLING OF INDUSTRIAL GOODS OR
SERVICES.
DEVELOPING THE INDUSTRIAL COMMUNICATION PROGRAMME:
THE MAJOR STEPS IN ARE: (i) DETERMINE THE COMMUNICATION
OBJECTIVES; (ii) IDENTIFY THE TARGET AUDIENCE; (iii)
DETERMINE THE PROMOTIONAL BUDGET; (iv) DEVELOP THE
MESSAGE STRATEGY; (v) SELECT THE MEDIA; (vi) EVALUATE
THE PROMOTION’S RESULTS; (vii) INTEGRATE THE
PROMOTIONAL PROGRAMME.
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(THE COMMUNICATION 1) DETERMINING OBJECTIVES
THE PURPOSE OF THE COMMUNICATION PROGRAMME (OR
PLAN) IS TO MOVE THE POTENTIAL BUYER FROM
UNAWARENESS TO BUYING ACTION. FOR THE PURPOSE OF
DETERMINING COMMUNICATION OBJECTIVES, WE MUST LOOK
AT THREE STAGES OF BUYER BEHAVIOUR: (i) BUYER’S
AWARENESS LEVELS; (ii) CHANGES IN BUYERS’ ATTITUDES; AND
(iii) BUYING ACTION. THESE STAGES OF BUYING ARE DESCRIBED
BY DIFFERENT MODELS, CALLED RESPONSE HIERARCHY
MODELS.
A MIX OF COMMUNICATION MEDIA IS REQUIRED TO ACHIEVE
CERTAIN COMMUNICATION OBJECTIVES.
(2) IDENTIFYING THE TARGET AUDIENCE:
FIRST, IDENTIFY THE BUYING ORGANISATIONS BASED ON THE
TARGET MARKET SEGMENTS. THE SECOND LEVEL IS THE
IDENTIFICATION OF THE ATTITUDES AND BUYING FACTORS
USED BY THE BUYING CENTRE (OR BUYING COMMITTEE)
MEMBERS IN THE ORGANISATIONS IDENTIFIED IN THE FIRST
LEVEL.
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IT IS IMPORTANT TO ASSESS THE TARGET AUDIENCE’S
CURRENT IMAGE OF THE MARKETING COMPANY, ITS PRODUCTS,
AND ITS COMPETITIORS. THE COMPANY MANAGEMENT SHOULD
THEN PROPOSE A DESIRED IMAGE IN CONTRAST TO THE
CURRENT IMAGE.
(3) DETERMINING THE PROMOTIONAL BUDGET:
THERE ARE FOUR COMMON METHODS USED TO SET A
PROMOTION BUDGET. THESE ARE: (i) AFFORDABLE METHOD, (ii)
PERCENTAGE-OF-SALES METHOD, (iii) COMPETITIVE-PARITY
METHOD, AND (iv) OBJECTIVE-TASK METHOD.
(4) DEVELOPING THE MESSAGE STRATEGY:
THE MESSAGE (OR THEME, OR APPEAL) IS DEVELOPED TO
DETERMINE “WHAT TO SAY” TO THE TARGET AUDIENCE SO AS
TO ACHIEVE THE DESIRED RESULTS.
IN INDUSTRIAL MARKETING, THE MOST COMMON WAY OF
DEVELOPING THE MESSAGE OF APPEAL IS THROUGH RATIONAL
APPEAL. FIRST, TYPICAL INDUSTRIAL BUYERS ARE FAIRLY
WELL-INFORMED OR KNOWLEDGEABLE.
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SECONDLY INSTEAD OF THE MESSAGE DISCUSSING PRODUCT
FEATURES, THE MESSAGE SHOULD FOCUS ON CUSTOMER
BENEFITS.
(5) SELECTING THE MEDIA:
SELECTION OF THE APPROPRIATE MEDIA DEPENDS ON THE
TARGET AUDIENCE TO BE REACHED, THE STATEMENT OF THE
COMMUNICATION OBJECTIVES, AND THE PROMOTIONAL
BUDGET.
INDUSTRIAL MARKETERS’ RANKINGS ON THE EFFECTIVENESS
OF PROMOTIONAL MEDIA:
RANKING PROMOTIONAL MEDIA INDEX OF
EFFECTIVENESS
1. PERSONAL SELLING (SALES CALLS) 100
2. CATALOGUES, SPECIFICATION SHEETS 46
3. DIRECT MAIL 39
4. ADVERTISING 38
5. TRADE SHOWS AND EXHIBITIONS 35
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RANKING PROMOTIONAL MEDIA INDEX OF
EFFECTIVENESS
6. SAMPLES, DEMONSTRATIONS. 34
7. PUBLICITY AND PUBLIC RELATIONS 31
8. CUSTOMER ENTERTAINMENT 26
9. PROMOTIONAL NOVELTIES (GIFTS) 24

(6) EVALUATING THE PROMOTION’S RESULTS:

AFTER IMPLEMENTING THE PROMOTIONAL PLAN IT IS
NECESSARY FOR THE INDUSTRIAL MARKETER TO EVALUATE ITS
IMPACT ON THE TARGET AUDIENCE. AN EVALUATION IS DONE BY
MEASURING THE AWARENESS, ATTIDTUDE AND ACTUAL
PURCHASE BEFORE AND AFTER THE PROMOTIONAL PLAN IS
IMPLEMENTED.
(7) INTEGRATING THE PROMOTIONAL PROGRAMME:
MANY COMPANIES HAVE RECOGNISED THE IMPORTANCE OF
INTEGRATING THE PROMOTIIONAL PLAN AND ARE ADOPTING THE
CONCEPT OF INTEGRATED MARKETING COMMUNICATIONS (IMC).
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THE BASIC OBJECTIVE IN INTEGRATING THE VARIOUS
COMMUNICATION TOOLS IS TO PROVIDE CLARITY,
CONSISTENCY, MAXIMUM IMPACT, AND COST-EFFECTIVENESS
TO THE COMPANY’S COMMUNICATION PLAN. TO ACHIEVE
THIS OBJECTIVE, THE FOLLOWING POINTS ARE SUGGESTED:
1. THE COMPANY SHOULD APPOINT A HEAD OF
COMMUNICATION.
2. THE COMPANY SHOULD BUILD A DATA BASE BY MEASURING
THE RESULTS OF THE PROMOTIONAL PLAN IN RELATION TO
THE COMMUNICATION GOALS, THE COST EFFECTIVENESS OF
PROMOTIONAL MEDIA, AND THE MESSAGE CONSISTENCY.
3. CONDUCT TRAINING PROGRAMMES FOR ALL THE PERSONS
HANDLING VARIOUS COMMUNICATION TOOLS SO THAT THEY
THINK OF INTEGRATING THE PROMOTIONAL/
COMMUNICATION PROGRAMME.
 RELATIVE SPENDING

ADVERTISING
SALES PROMOTION

PERSONAL SELLING

DIRECT MARKETING

PUBLICITY
AND P.R.

PROMOTIONAL TOOLS
CONSUMER MARKETS
RELATIVE SPENDING

PERSONAL SELLING

DIRECT MARKETING

SALES PROMOTION

ADVERTISING

PUBLICITY
AND P.R.
PROMOTIONAL TOOLS
INDUSTRIAL MARKETS
7
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FUNCTIONS PERFOMED BY INDUSTRIAL ADVERTISING:
THEY ARE:
CREATING AWARENESS:
INDUSTRIAL ADVERTISING IS AN EFFECTIVE MEANS TO CREATE
AWARENESS AMONG POTENTIAL BUYERS ABOUT THE
INDUSTRIAL SUPPLIER AND ITS PRODUCTS.
REACHING MEMBERS OF BUYING CENTRE:
INDUSTRIAL ADVERTISING IS AN EFFECTIVE MEANS OF
REACHING THE INACCESSIBLE OR UNKNOWN BUYING CENTRE
MEMBERS, SUCH AS QUALITY CONTROL MANAGER, R&D
MANAGER, OR PRODUCTION ENGINEER.
INCREASING SALES EFFECIENCY AND EFFECTIVENESS:
WHEN BUYERS ARE MORE AWRE OF AN INDUSTRIAL
MARKETING FIRM, ITS PRODUCTS AND ITS REPUTATION
THROUGH ADVERTISEMENTS, SALES PEOPLE ARE MORE
EFFECTIVE.
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EFFECIENCT REMINDING:
WHERE THERE IS LITTLE OR NO PRODUCT DIFFERENTIATION
BETWEEN MANY INDUSTRIAL PRODUCTS, THE BUYERS ARE
REMINDED ECONOMICALLY THROUGH ADVERTISING ABOUT
THE FIRM’S SERVICE CAPABILITYES (e.g. RELIABLE SERVICE OR
DEPENDABILITY OF TIMELY SUPPLIES).
SALES LEAD GENERATION:
THE INDUSTRIAL MARKETER CAN GENERATE A LIST OF
POTENTIAL BUYERS (CALLED SALES LEADS) AFTER
SCRUTINISNG THE NAMES OF ALL THOSE WHO RESPONDED TO
THE ADVERTISEMNTS.
SUPPORTING DISTRIBUTION CHANNEL MEMBERS:
INDUSTRIAL ADVERTISING FREQUENTLY PROVIDES AN
ECONOMICAL AND EFFICIENT SUPPORT TO SELLING EFFORTS
OF DEALERS OR DISTRIBUTORS.
MEDIA USED FOR INDUSTRIAL ADVERTISING:
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GENERAL BUSINESS PUBLICATIONS AND TRADE JOURNALS/
PUBLICATIONS:
TRADE PUBLICATIONS ARE OF TWO TYPES – HORIZONTAL AND
VERTICAL. HORIZONTAL PUBLICATIONS ARE DIRECTED AT
INDIVIDUALS WORKING IN A PARTICULAR OCCUPATION,
ORGANISATIONAL FUNCTION, OR A PARTICULAR TECHNOLOGY,
WHICH CUTS ACROSS VARIOUS INDUSTRIES.
VERTICAL PUBLICATIONS:
ARE DIRECTED AT INDIVIDUALS WORKING IN A SPECIFIC
INDUSTRY. TEXTILE TREND, IRON AND STEEL AGE, AND
CHEMICAL. WEEK ARE SOME OF EXAMPLES OF VERTICAL
PUBLICATIONS WHICH CONTAIN ARTICLES AND
ADVERTISEMENTS OF INTEREST TO ALL THE INDIVIDUALS IN A
SPECIFIC INDUSTRY.
INDUSTRIAL DIRECTORIES:
(YELLOW PAGES), WHICH ARE BUYER’S GUIDES, ARE USEFUL
FOR ADVERTISING, AND COMPANY LISTING.
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ADVERTISING AGENCIES:
WHILE MOST ADVERTISING AGENCIES CONCENTRATE ON
MARKETING PROMOTION OF CONSUMER PRODUCTS, THERE ARE
SOME AGENCIES THAT SPECIALISE IN INDUSTRIAL MARKETING
PROMOTION.
WHAT MAKES AN INDUSTRIAL ADVERTISEMENT STAND OUT?
THE MAJOR GUIDELINES TO BE FOLLOWED FOR AN EFFECTIVE
INDUSTRIAL ADVERTISMENT ARE AS FOLLOWS:
1. THE INDUSTRIAL PRODUCT’S UPS (UNIQUE SELLING
PROPOSITION) SHOULD BE CLEARLY REFLECTED IN THE
HEADLINES.
2. THE COPY (i.e. WRITE-UP) OF THE ADVERTISEMENT, SHOULD
DESCRIBE THE BENEFITS OFFERED TO CUSTOMERS IN A SIMPLE
LANGUAGE.
3. A PHOTOGRAPH OF THE PRODUCT OR OF THE RELEVANT
SERVICE SHOULD APPEAR PROMINENTLY IN THE
ADVERTISMENT.
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4. AT THE BOTTOM OF THE ADVERTISEMENT, THE ADDRESSES
AND TELEPHONE NUMBERS OF THE COMPANY’S MARKETING
OFFICES AND/OR THAT OF AUTHORISED DEALERS SHOULD
APPEAR. THE COMPANY’S NAME SHOULD ALSO APPEAR IN
BOLD LETTERS AT THE BOTTOM.
THE IMPORTANCE OF SALES PROMOTION, PUBLIC RELATIONS,
PUBLICITY AND DIRECT MARKETING IN INDUSTRAIL MARKETING:
SALES PROMOTION/ BUSINESS PROMOTION:
THE METHODS USED IN INDUSTRIAL MARKETING FOR SALES
PROMOTION (MORE COMMONLY REFERRED TO AS BUSINESS
PROMOTION) ARE (i) TRADE SHOWS (OR EXHIBITIONS), (ii)
CATALOGUES, (iii) SALES CONTESTS, (iv) PROMOTIONAL
NOVELTIES (OR GIFTS), (v) ENTERTAINMENT, (vi) PROMOTIONAL
LETTERS, (vii) SEMINARS, AND (viii) DEMONSTRATIONS.
PUBLICITY AND PUBLIC RELATIONS:
THE PUBLIC RELATIONS (PR) DEPARTMENT ACHIEVES ITS
OBJECTIVE OF MANAGING GOOD RELATIONS WITH THE PEOPLE
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PLACING NEWSWORTHY INFORMATION INTO THE MEDIA,
INTERNAL AND EXTERNAL COMMUNICATIONS, DEALING WITH
LEGISLATORS (MLAs/MPs) TO PROMOTE OR DEFEAT A
PARTICULAR BILL OR REGULATION, AND ADVISING THE TOP
MANAGEMENT ABOUT PUBLIC ISSUES.
ROLE OF DIRECT MARKETING:
INDUSTRIAL MARKETERS ARE INCREASINGLY USING DIRECT
MARKETING TOOLS SUCH AS DIRECT MAIL, TELEMARKETING
AND ONLINE MARKETING CHANNELS. DIRECT MARKETING
ATTEMPTS TO ACHIEVE DIRECT SALE WITHOUT USING AN
INTERMEDIARY BETWEEN THE COMPANY AND ITS CUSTOMER.
TO REDUCE THE MARKETING COSTS, INDUSTRIAL MARKETERS
FIRST USE DIRECT MARKETING TOOLS LIKE DIRECT MAIL AND
TELEMARKETING TO IDENTIFY AND CREATE INTEREST WITH
POTENTIAL OR NEW CUSTOMERS, BEFORE SALES PERSONS
VISIT THEM.