MARKETING COMMUNICATION
MARKETING COMMUNICATION
Kotler defines Marketing Communication as“ The means by which firms attempt to inform, persuade and remind customers – directly or indirectly – about the products or brands that they sell”
Further, Integrated Marketing Communications (IMC) is a concept of marketing communications processes that evaluates the strategic roles of a variety of communication platforms and combines them effectively to maximise impact of the message on the recipient of that message
PromotionMarketing Communication
Platforms
Direct MarketingPR & Publicity
Events/ experiences
Advertising Personal Selling
THE PLANNING PROCESSIdentify target audience
Determine objectives
Design communication
Select channels
Establish budget
Decide on media mix
Measure results
Manage IMC
Further
Like consumer communication, industrial marketing communication is also based on the potential market, buying habits of potential users, advertising objectives, budgets, etc
However, there are some distinguishing characteristics that make industrial communication different from the consumer field
Industrial Marketing
• Usually lacks the hooplah and exaggeration
• From a buyer’s perspective, the motive is usually driven by profit
• Communication through personal selling is more focused on than advertising
• Targets a relatively limited market hence choice of media is even more critical
• Is more information driven
Consumer Marketing
• Is targeted via hype and dramatic expression
• The motive for the consumer here is usually personal gratification of some sort
• Usually, advertising is considered the primary form of communication
• Usually targeted at a much broader consumer base
• Is usually more emotion driven
Source: Business Marketing Association, USA, 2008www.businessinfoline.com, May 20, 2009
Activity USA (in billion $) India (in lakhs, INR)
Trade Shows/ Events
17.3 803
Internet 5.5 124Magazines 10.8 277Publicity/ PR 10.5 270Direct Mail 9.4 110Dealer/ Distributor Material
5.2 186
The division of an average B2B marketing communication spend
Some of the most commonly used platforms in Industrial marketing communication are: Personal Selling Advertising Trade Shows/ exhibitions Direct Mailers/ catalogs Internet which is slowly gaining prominence
PERSONAL SELLING One of the most frequently used and effective ways in
industrial communication Involves managing the sales force of the organisation
Selecting & recruiting Training Assigning Goals Providing support – on and off field Compensation and rewards system Daily supervision and stimulation
SPECIFICALLY, INDUSTRIAL SALESMEN… Fewness of customers but large size of each average sale makes
training very crucial for this sales force Either class room training or informal individual training Typical sources for salesmen are:- Trade journals, Technical &
business schools, non-selling divisions of the business and newspaper, competitors are secondary options
Assignment of tasks usually takes the form of territories, with or without key accounts
Compensation follows more or less the same pattern as any sales force
ADVERTISING Definition – Any paid form of non-personal presentation
and promotion of ideas, good or services by an identified sponsor
Role of Advertising To increase sales effectiveness To generate awareness For IMC
OBJECTIVES OF INDUSTRIAL ADVERTISING To inform
Fact driven, has an interested reader, can be attractive, colourful, etc
To bring in inquiries/ orders usually from new customers To induce trial orders
To get into the Buyer’s Resource File Most industrial companies maintain a record of all the firms
selling the articles that they need
To reduce selling expense Salesmen visit can be more expensive and at times, prohibitive
To establish recognition and reputation Especially for relatively new players
To motivate distributors To create preference, loyalty, support in the value chain
To influence the end consumer For products where the brand name matters to the end
consumer. E.g. Intel processor
FURTHER OBJECTIVES OF INDUSTRIAL ADVERTISING
DESIGNING THE MESSAGE What do I want to communicate? Advertising Objectives
Message generation and evaluation Key message, positioning, information to be inserted
Development of the idea and execution Copy, visuals, other effects, material to be used - based on the medium Buyer considerations – first time/ repeat/ what is in it for him?
What am I communicating through? Choice of media – Trade journals, newspaper, catalog, etc Frequency, Reach and Impact
BUDGETS MATTER… Industrial Advertising, like mentioned earlier, is relatively
smaller as compared to consumer advertising However, typically, these methods are followed:
% of Sales method – either on past sales or estimated sales Object Task method – specific task driven Combination of both –where a top limit is imposed in the
form of a maximum % of expected sales that can be spent
TRADE SHOWS AND EXHIBITIONS Offers the manufacturer an opportunity to display or
demonstrate his products to a larger number of prospects Some of the benefits of such shows are:
Meeting potential customers Making direct sales Building prospect lists Introducing new products Demonstrating non-portable equipment Checking competition Establishing new representatives or dealers
GIFTS INDIA 2009 GIFTS INDIA 2009 is the India's Largest Trade Show on Corporate & Personal
Gifts & Premiums Running in its 16th year now Exhibitor Product Profile
Gift Wrappers, Cutlery, Artifacts, Labels, Promotional Caps & Wear, Watches, Glassware, Folders, Wallets, Bags, Appliances, Gold Coins, Toiletries, Crystal wares, Souvenirs, Trolleys, Table Planners, Cameras, Crockery, Silverware, Bone China, Wall Clocks, Diaries, Calendars, Planners, Key chains, Leather Briefcases & Portfolio holders, Festival Decoration Products, Handicrafts, Promotional Toys, Gold & Diamond Jewellery, Antiques & Decorative Products
Visitor Profile Buying Groups, Distributors, General Merchandise Buyers, Catalog Houses, Dollar Stores,
Gift Buyers, Theme/Amusement Park Buyers, Chain Stores, Drug Stores, Premium/Incentive Buyers, Variety Store Owners, Department Stores, Importers/Exporters, Specialty Stores, Wholesalers, Discount Stores, Jewelry Buyers, Supermarket/Grocery Buyers, Boutique Stores, Surplus/Outdoor Stores.
IIJS INDIA
TRANSEC INDIA EXPO OBJECTIVES: NETWORKING/CLIENT ACQUISITION
TranSec India Expo has been meticulously developed as the event of choice for the transport security industry, to enable you to stand out in a crowded and competitive marketplace, where potential customers and strategic collaborators are not always within easy reach.
The event is ideal for interacting and engaging with existing and future clients, in an environment which is business-focused, knowledge-driven, and which encourages networking and outreach opportunities.
Electronica and Productronica India 2009 OBJECTIVES: INDUSTRY INFORMATION DRIVEN, PRODUCT UPDATES Held at Bangalore International Exhibition Centre(BIEC), Bangalore, Karnataka,
India, the Electronica India and Productronica India 2009 is recognized as one of the leading South Asia's trade fair.
Organized by MMI India Private Limited, the event is vested on approximately 16,000 square meter area.
For 4 days, the event is highly attended by many pioneer companies from all over the world and proves to be effective in exhibiting sensors, switches, semiconductors, cables, passive components etc.
It is one of the most pivotal event for Components and Production technologies of the electronics industry.
ROLE IN IMC Clear objectives that the trade show needs to achieve
Display/ Demonstration/ Launch/ Establish Presence/ build value chain Who is the show targeting?
Is it customer driven? Industry driven? Vendor driven?
What percentage of the communication mix needs to be allocated to it? To be supported by pre & during advertising, catalogs, mailers, etc
What is the budget? Space rent, design & execution, personnel, follow-up operation
How will the investment be measured? Follow up with every customer inquiry by the salesmen Critical review of design, execution, competition analysis, efficiency of
personnel Review of cost v/s gain from the show. No. of visitors, results of follow
up, cost of results attained, etc
DIRECT MAILERS Direct Mail involves sending an offer, announcement,
reminder to a group of relevant audience – flyers, fold-outs, sometimes CDs, diskettes, etc
Permits target market selectivity Can be personalized but requires database efficiency Can be made interactive as well – web response, phone
number, coupons Response can be measured
CASE STUDIES
ABOUT SKF SKF Group is the leading global supplier of products, solutions and services
within rolling bearings, seals, services and lubrication systems. Services include technical support, maintenance services, condition
monitoring and training. SKF was founded in 1907 and today, SKF is represented in more than 130
countries. The company has more than 100 manufacturing sites and about 15,000
distributor locations. SKF also has a widely used e-business marketplace and an efficient global
distribution system
INDUSTRIES THEY SERVE Aerospace – actuation bearings for companies like the Original
Equipment Manufacturers (OEM) to the Maintenance Repair Overhaul (MRO)
Agriculture Medical Care Bicycles and Cars – especially bearings for mountain bikes Food industry –seals and greases for heating and freezing
equipments Home appliances – dishwashers, air conditioners, washing
machines, etc
SKF KNOWLEDGE CONFERENCE The SKF knowledge conference is an annual feature that
targets B2B customers The objectives:
to position SKF as a world knowledge leader always at the forefront of developing sustainable, cutting edge technology driven products
To showcase SKF products To create a platform for addressing of customer marketplace
problems & queries To strengthen relationships with customers
SKF KNOWLEDGE CONFERENCE
Brief – Classy, Minimalistic, Information driven & High end technology, Enough free space for support product information material
Attended by about 400 top clients from across India Represented by worldwide CEO Tom Johnston 3 -day event – First day is reserved for Technical Press
SKF KNOWLEDGE CONFERENCE
SKF KNOWLEDGE CONFERENCE SKF spends about INR 1.2 crores on the event This is approximately 1% of its annual turnover in India In addition to the conference, the communication is
supported by: Pre-conference communication
E-mailer One – Approx. a month prior asking clients to block their dates
E-mailer Two – Details of the conference and registration Emailer Three – Descriptive itinerary Emailer Four – Post event - Thank you and feedback In addition, on registration, every client gets a couriered copy of the
conference as well with all the details and itinerary
SKF KNOWLEDGE CONFERENCE
BLUE STAR Blue Star Galaxy
Display product range Customer interaction:
architects, engineers, etc. New product positioning &
details
BLUE STAR Blue Star Factory Launch
Launch of the new factory State-of –the art facilities Awareness Platform for interaction Factory live demo
Thank you