B2B Advertising & Sales Promotion

colorfuleggnogDéveloppement de logiciels

17 févr. 2014 (il y a 3 années et 3 mois)

61 vue(s)

B2B Advertising

The Role of Advertising

1.
Integrated Communication Programs.

2.
Enhancing Sales Effectiveness.

3.
Increased Sales Efficiency.

4.
Creating Awareness.

Advertising


Cannot be a Substitute for
effective personnel selling.


Cannot, by itself, create
product preference.


Advertising is only
one aspect of the
entire marketing
strategy.


The advertising
decision process
begins with the
formulation of
advertising
objectives.


Equally important is
the evaluation and
selection of the
media.

The Decision Stages for
Developing the Business
-
to
-
Business Advertising Program

Setting Ad Budgets:

Commonly Used Methods

Percentage of Sales


Allocate some percent of sales to
advertising.


Makes advertising a consequence
rather than a determinant of sales and
profits.


Useful only if possess VALID historical
data


Most commonly used method

Setting Ad Budgets:

Commonly Used Methods

Affordability Method


Firm spends on advertising what it
has available to spend


Good cash flow control


Most common with small firms


Sales drive the advertising


Objective
-
Task Method


An attempt to relate advertising costs to
the objective it is to accomplish.


Focuses on the communications effects
of advertising, not on the sales effects.


Generally considered the “best” method.

Setting Ad Budgets:

Commonly Used Methods

Developing the B2B Advertising
Message


Determine advertising objectives.


Evaluate buying criteria of target
audience.


Analyze most appropriate language
for presenting message.

Organizing the Sales Force

Typical Methods of Organizing
the Sales Force


Line Organizations (& Line/Staff)


Functional Organizations


Specialization Organization


Sales Activities


Geographic Areas


Products


Customers

A Simple Line Organization

Salesperson A
Salesperson B
Salesperson C
Sales Manager
A Two
-
Level Line Organization

Salesperson
Region A
Sales Manager
Salesperson
Region B
Sales Manager
Salesperson
Region C
Sales Manager
Sales Manager
Line Organizations


Characteristics


Authority/responsibility for planning/implementing
sales activities lie in hands of sales manager.


Each person has only one boss.

Line Organizations


Advantages


Very simple to understand and use.


Easy to trace accountability.


Relatively inexpensive (only a few highly
-
paid
executives are necessary)


Quick action possible since decision
-
making is in
hands of relatively few people.

Line Organizations


Disadvantages


As organization size increases, problems
become more complex.


Specialized skills often needed.


Many sales managers cannot keep on top of all
functions that relate to sales.


Lack of trained replacements.

Line Organizations


Implications


Best used by small organizations where
operations can be clearly divided into basic
functions of sales, finance, and production.

Line and Staff Organizations


Characteristics


Same as line organization except staff positions
added


Staff positions don’t have authority over line
positions


Advantages


Staff provide sales manager with specialized
skills


Allows sales manager to be more efficient/
effective.


Doesn’t dilute his/her authority/contact
w/salespeople.

A Line & Staff Organization

Market Forecaster
Salespeople
Region A
Sales Manager
Salespeople
Region B
Sales Manager
Salespeople
Region C
Sales Manager
Training Director
Sales Manager
Line and Staff Organizations


Disadvantages


Can be more expensive than a line organization.


Conflicts may arise between line & staff
executives.


Staff executives may attempt to exert authority
over line personnel.


Line executives may ignore the counsel of the
staff

Line and Staff Organizations


Implications


If sales managers find themselves spending less
time working with subordinates and more time
performing planning & evaluating functions, may
want to consider this organization

Functional Organizations


Characteristics


Organization divided by function.


Functional specialists have line authority.


Salespeople report to multiple bosses.


Advantages


Specialist ensure their functions are carried out.


Should improve performance in each functional
area due to the specialization.

A Functional Organization

Salespeople
Region A
Sales Manager
Salespeople
Region B
Sales Manager
Training Director
Salespeople
Region C
Sales Manager
Market Forecaster
Sales Manager
Functional Organizations


Disadvantages


Breakdown in the unity of command due to
conflicting orders


Each salesperson is no longer accountable to
only one boss


Implications


Typically used in large firms that feature
numerous functions and that have the need for
several specialists.

Centralized vs. Decentralized?

Factors That Influence


Size of Sales Force


As sales force size increases, the need to
decentralize increases.


Span
-
of
-
control problems emerge


More field managers will be necessary


Decentralization more feasible


Organizing by Sales Activities


Characteristics


Usually employ simple line organizations


Separate selling functions (present account
maintenance and new account development)


Advantages


Allows salespeople to become proficient in their
respective sales functions.


Places special emphasis on searching out and
selling new accounts.

Line Organization Structured
by Sales Activities

Salesperson A
Salesperson B
Account Development
Manager
Salesperson C
Salesperson D
Salesperson E
Account Maintenance
Manager
Sales Manager
Organizing by Sales Activities


Disadvantages


Customers may resent being turned over to a
different salesperson.


Salespeople may want to cultivate the accounts
they have developed.

Organizing by Sales Activities


Implications


Use when there is a large turnover of customers


Use when there is a significant difference in the
skills needed in each separate area


Use when fast growth through new account
acquisition is deemed necessary

Organizing by Geographic Areas


Characteristics


Sales force is reorganized on a geographic basis


Salespeople sell all the company’s present
products to all customers within their assigned
territories

Line Organization Structured by
Geographic Area

Salespeople
Dallas Division
Sales Manager
W estern Reg ion
Sales Man ag er
Salespeople
Ch icag o Division
Sales Manager
Cen tral Reg ion
Sales Man ag er
Salespeople
New York Division
Sales Manager
Eastern Reg ion
Sales Man ag er
Nation al
Sales Man ag er
Organizing by Geographic Areas


Advantages


Salespeople and managers become more
familiar with their territories


Local problems may be solved more quickly


Sales force can rapidly react to changes in the
local competitive environment


Can provide better service at lower cost


Lower chance for customer confusion

Organizing by Geographic Areas


Disadvantages


Diversity/magnitude of product line may limit
salesperson’s knowledge of any one product


Duplication of overhead expense


Greater level of salesperson control (which
products to push, which customers to service)


Implications


Best used if product line is relatively
homogeneous


Best used if customers are widely dispersed

Organizing by Products


Characteristics


Sales force is reorganized on a product basis


Salespeople specialize in particular products
carried by the sales organization

Sales Force Organized by
Products

Advertising
Manager
Product A
Salespeople
Product A
Sales Manager
Product B
Salespeople
Product B
Sales Manager
Marketing Services
Manager
Sales Manager
Organizing by Products


Advantages


Each product line receives a higher degree of
specialized attention


Allows for decentralization of both authority &
responsibility for each product line


Allows decisions to be made closer to the
problems with any particular product line

Organizing by Products


Disadvantages


If specialization occurs above salesperson level,
additional overhead expense may be suffered.


More than 1 salesperson may be calling on
customers


Difficult to maintain a consistent image

Organizing by Products


Implications


Best used if product line is relatively
heterogeneous


Best used if have a wide variety of customers
with quite different needs


Best used if products are technically complex


Broad, in
-
depth knowledge of product essential
for the sales task

Organizing by Customers


Characteristics


Sales force is reorganized on a customer basis


Salespeople specialize in selling to/ servicing
particular customer types

Sales Force Organized by
Customers

Industrial Manager
Farms
Industrial Manager
Construction
Industrial Manager
Mining
Industrial
Sales Manager
Retail Manager
JC Penney's
Retail Manager
Sears
Retail
Sales Manager
Organizing by Customers


Advantages


Most consumer oriented approach


Organization of sales force is based on customer
needs


Control remains at the management level (which
customers to call on, etc)


Allows salespeople to specialize in customer
needs

Organizing by Customers


Disadvantages


Potential for overlapping territories is high


Hence, overhead costs may rise


Salespeople must become knowledgeable about
company’s entire line of products

Organizing by Customers


Implications


Customers in a given market buy several
different products/lines from single supplier


Same buying factors apply across product lines


Significant proportion of income is derived from
a small number of accounts who require high
service levels