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

Promotion Marketing Communication Platforms Direct Marketing PR & Publicity Events/ experiences Advertising Personal Selling

THE PLANNING PROCESS Identify 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, 2008 www.businessinfoline.com , May 20, 2009 The division of an average B2B marketing communication spend Activity USA (in billion $) India (in lakhs, INR) Trade Shows/ Events 17.3 803 Internet 5.5 124 Magazines 10.8 277 Publicity/ PR 10.5 270 Direct Mail 9.4 110 Dealer/ Distributor Material 5.2 186

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 16 th 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.

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

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 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

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

Marketing Communication

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