Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.
BUSINESS TO BUSINESS MARKETING
Transcript of BUSINESS TO BUSINESS MARKETING
participate in the lessons
1. continuous work during the semester - work in teams (30 points)
2. presentation in small teams (30 points)
3. written exam (40 points)
BUSINESS TO BUSINESS MARKETING
Group 1: Government Organizations
Group 2: Universities
Group 3: hospitals
Group 4: (private) not-for-profit agencies
Group 5: Profit-oriented companies
What is the aim of their buying?
raw material, semi finished goods, manufacturing equipment, facilities for the offices, land, prestige etc.
How structured is their buying?
Aim and limit of laws, role of company-rules
Who can be supplier of them?
less but larger than in the consumer markets
well defined geographical area e.g. public offices
most of the products are quite individual and have high price
price changes have less effects - the firms charge these to their consumers
closer relationship between business buyer and business seller
Personal selling is very often
Characteristics of business markets
PhD student - Gyor, Szechenyi Istvan University
lecturer and project manager - Edutus College
worked for SMEs - marketing, project management
experience - organizing events, fairs, marketing communication, marketing plans, city marketing plan, etc.
00 – 60 points - Fail (1)
61 – 70 points - Low-pass (2)
71 – 80 points - Satisfactory (3)
81 – 90 points - Good (4)
91 – 100 points - Excellent (5)
the B2B marketing of a company
a subject given by the lecturer
in groups of 2-3
at the end of the semester
during the exam period
3 types of questions:
true or false
essay - short
Business marketing environments
Managing business products/services
Managing business marketing channels
R.Wright: Business-to-business Marketing, A step-by-Step guide, Pearson Education Ltd, 2004, 522 p.
web pages suggested during the class
materials given by the lecturer
WHAT IS MARKETING?
The "father" of marketing (P. Kotler) - 2:26
What is marketing? - CCDVTP and 4/5 Ps
About market (clients and competitors)
Understanding and action together
and activity together
Transactional and relationship
Help the business
What do you think marketing is good for?
WHAT IS B2B MARKETING?
B2B MARKETING IS...
Who can participate in the B2B market?
global and national (regional)
a company sells products or services for other companies or organizations
for-profit and non-profit, government sectors
consumer = owner, employee, organization (not for private use)
What is the B2B market?
The marketing system
B2B marketing is...
where one business markets products or services to another business
for use in that business or
to sell to another businesses
for their own use
B2B marketing ...
means a long term activity
involves working with the enterprise’s customers
means also working with the enterprise’s suppliers and sometimes even with the enterprise’s competitors to solve their problems
The customer is always an organization!!
is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
(American Marketing Association)
Types of marketing
Outbound (Traditional) Marketing
Trade Show Marketing
Social Media Marketing
Direct Mail Marketing
Make a list...
Who can use marketing?
List 5 characteristics of B2B markets!
ACTORS of THE business markets
List 3 ACTORS of B2B markets!
domestic units of federal, state, local and foreign governments
Understand the contractual and legal side of government purchasing federal buying process
Public laws which specify contractual arrangements - Vendors must carefully understand government laws
Knowledge of government requirement needed for effective negotiation
EU legal organizations and institutes
above national governments
effect on international trade
a wide variety of organizations - public and private (hospitals, churches, universities, museums, and not-for-profit agencies)
between business and government
requires the marketers to respond to the needs of the product users (professional staff) and the buyers (purchasing personnel)
Collect the characteristics of the buying process!
Development of need
Methods of offer collecting
Persons and style of negotiating
What is the role of state laws, company-rules?
Who and how makes the decision?
Make the stakeholder analysis of the B2B market!
identify their needs and interests
list their problems
find solutions for the problems
Many different people influence B2B buying decisions, sometimes as
individuals or as part of a committee
Marketers must know who the
are and understand their priorities.
Sales personnel must be flexible and have a good technical
of their products
Interaction with customers
MODEL OF THE ORGANIZATIONAL BUYING PROCESS
Significance of a customer
Purchases within relationships
Number of people involved
Time taken for use
Amount of one purchase
Differences between business and consumer purchases
Firms acquiring needed products can
in one of three ways:
Make the good or provide the service in-house.
Purchase it from another organization.
Lease it from another organization.
Producing the item may be cheapest route, but most firms cannot make all of the products they need.
Many companies purchase many of the goods they need.
Companies can spread out costs through leasing.
The case against…
Lowered dependence and risk
The case for…
Dimensions of ‘high-involvement’ (bonds, ties and links)
Uncertainty and risk reduction
Return on investment
Are close relationships always a good idea?
1. History matters
3. Issue importance
4. Repetitive purchases
5. Time involved (urgent need)
business purchase vs. consumer purchases
Buying centers are different in function of buying situation!
Buying center is the collection of organizational actors involved in the purchase!
Buying is not an event, it is an organizational decision-making process, the result of which is a contractual obligation.
Buying represent a complex set of activities engaged by many members of the buying organization and result in a commitment to purchase goods and services from a vendor.
The BUYING DECISION PROCESS
B2B - B2C
finished consumer products
to end customers
selling to an other organization
for own use
B2B and B2C in retail market
electronic tills to a retailer store
shelving to Tesco
computer system for own use to a computer store
display racks to a retailer store
refrigerator to an elector inc retailer store for selling
confectionery to Tesco
computers to a computer store to sell them
fashion clothes to a retailer store
B2B: goods or services are sold for any use other than personal consumption
Products to be incorporated into other products, used, consumed, or resold
The nature of the customer and how the product is used distinguishes business and consumer goods marketing
What Distinguishes B2B from B2C?
B2B versus B2C Marketing
The growth of B2B markets
role of governments (ministers and business people)
national governments working together
the pace of technology
B2B market survey
226 business-to-business marketers
North America and Europe
representative sample of enterprises
average revenues of $5 billion per annum and with an average of 24,000 employees
Does your organization market its products/services mainly to other businesses or directly to consumers?
Characteristics of business markets
Barriers to trade
Levels of B2B markets
Laws of business markets
tendency of harmonization
bigger quantity of national laws than international regulations
influence all the members of the supply chain
affect costs and resources
Council of the EU
European Court of Justice
European Court of Human Rights
Google, Facebook Must Abide By Rules
World trade bodies:
World Trade Organization (WTO)
Organization for Economic Cooperation and Development (OECD)
G7-G8 group of countries
International Monetary Found (IMF)
World Bank Group
How do the WTO, World Bank and IMF work?
National laws and regulations:
economic and business laws
regulation about promotion, etc.
Barrier to trade
subsidies for export or domestic products
taxation (VAT differences)
Free trade agreements
EU-Chile Association Agreement
EU-Korea Free Trade Agreement
EU-Mexico Economic Partnership, Political Cooperation and Cooperation Agreement
EU-South Africa Trade, Development and Co-operation Agreement (TDCA)
FTA in negotiations:
EU-ASEAN - Free Trade Agreement
EU-Canada Comprehensive Economic and Trade Agreement (CETA)
EU-GCC Free Trade Agreement ( with the countries of the Gulf Co-operation Council (GCC))
EU-India Free Trade Agreement
EU-Malaysia Free Trade Agreement
EU-Singapore Free Trade Agreement
EU-Ukraine Free Trade Agreement
Stages of economic integration around the World
List some B2B advantages and disadvantages of EU membership!
huge market, single market
possibilities to research and experience
removal of formal and informal barriers
free movement of goods, services, people and business
single currency (euro) - comparing cost and price is easier
loss of national sovereignty
central decision making about macro-economic factors (interest rates)
restrictions for non-EU countries
Euro does not reflect national needs
different needs (economic and social) by member countries
How do you think the type of economic system influences the B2B market?
B2B market(ing) trends
COMPONENTS OF THE BUSINESS MARKET
Individuals and firms that acquire products to support, directly or indirectly, production of other goods and services.
Largest segment of the business market.
Retailers or wholesalers that purchase products for resale to others.
Also called resellers, marketing intermediaries that operate in the trade sector.
All domestic levels (federal, state, local) and foreign governments
Public and private institutions - such as hospitals, churches, colleges and universities, and museums
associations, trade unions, interest groups, societies, tursts, etc.
above governments (World Bank)
independent non-profit organizations
The major manufacturing centers in Western Europe extend in a north-south band from Britain to Italy.
Manufacturing Centers in Western Europe
What is region?
an area which a regional economist can study
an area considered as a unit for geographical, functional, social, or cultural reasons (earth sciences / physical geography)
an administrative division of a country (politics)
a part of the earth characterized by distinctive animal or plant life (ecology)
Regions of Hungary
The subject of business marketing - product
Market trading types
B2B trading forms; organizational types
commercial enterprises - private sector
public limited company (PLC)
overseer regulated industry
national and local government
quasi-autonomous, non-governmental organizations (quangos)
not-for profit organizations (NFP)
non-governmental agencies (NGO)
BUSINESS MARKETING is
MARKETING OF GOODS AND SERVICES TO: Companies, Government Bodies, Institutions (i.e. hospitals), Non-Profit Organizations (i.e. American Red Cross)
PRODUCING THEIR PRODUCTS AND/OR TO FACILITATE THEIR OPERATIONS
What can you use he B2B products for?
What are the main forms of using B2B products?
(e.g., components are combined into sub-assemblies and become part of the finished product)
For use in
, but not part of the finished product
What & why do companies buy?
2. Products and services
Promise & package
To customers’ problems
B2B PRODUCT IS:
anything that satisfies a need or want in exchange for some form of payment offered to the organizational customer for its own use or to be sold to another organization for its own use
product or service or their combinations
idea or concept
person or place
written, sung, played, performed things
a smell, taste, shape
the whole organization and its product
Main product/service categories
government capital expenditure
materials and parts - entering goods
supplies and running services - facilitating goods
energy or waste management services
transport, distribution, storage services
Become part of the finished product
Cost assigned to the manufacturing process
Typically depreciated over time
Support organizational operations
Handled as overhead expenses
1 Entering Goods
Farm products & natural products
Only processed as necessary for handling & transport
Require extensive processing
Manufactured Materials & Parts
Any product that has undergone extensive processing prior to purchase
Major long-term investment items
Buildings, land, fixed equipment, etc.
Less expensive & short-lived
Not considered part of fixed plant
Portable tools, PC’s, etc.
3 Facilitating Products
Any supplies necessary to maintain the organization’s operations
Maintenance & Repair support
FIRE SERVICE COMPANY
installation and service
What kind of marketing assets and communication can this company use?
Importance of products/services for the buyer
cost of products/services
lengths and complexity of the negotiation and contracts
different demand and benefits of B2B customers
Adding VALUE to the products
Value added process:
primary added value
supplementary added value
What is waste?
Toyota (Taiichi Ohno) define waste as; “anything other than the minimum amount of equipment, materials, parts, and working time absolutely essential to production.”
Another definition of waste is; “anything other than the absolute minimum resources of materials, machines, and manpower required to add value to the product.” (Hay 1988)
every activity should be considered to be waste unless it; Meets an explicit customer requirement or Cannot be shown to be performed more economically
basic form, starting point
minimum level of benefit
Primary added value:
creativity, innovation, design
new product/service development
choice of product, customized, standardized, integrated products
features and benefits
help, advice, skill level
price, payment terms, leasing
location, point of purchase
Supplementary added value:
strategic relationship commitments
customer relationship policies
help,advice, skill level
access to information
management and consultancy services
Other questions about B2B products
new product development
What is the difference between
goods and services?
What are the advantages and disadvantages of...
new product development (innovation)
Business marketing channels - place
Business relationship as marriage?
Interaction and interdependence
Portfolio of relationships
Links, ties and bonds
If a company does NOT have a good it needs for production, how can the company have it?
scale producer company - a carton box
scale producer - advertisement in the box (leaflet)
fire safety company - transferring the mechanics
INFLUENCES ON PURCHASE DECISIONS
2 Organizational Factors
Successful marketers understand their customers’
organizational structures, policies, and purchasing systems.
Some firms have centralized
, others delegate it throughout the units.
Many companies use
to avoid depending too heavily on a sole supplier.
1 Environmental Factors
considerations influence business buying decisions.
The Role of the Professional Buyer
Many organizations rely on
, often called
, who implement systematic buying procedures.
Firms usually buy expense items with little delay but carefully consider capital purchases.
May rely on systems integration, centralization of the procurement function
Channels of distribution in B2B markets
building customer relations
focused and specialized attention
direct sales, personal selling
CRM - customer relationship management
What is the role of the internet in the direct and indirect B2B distribution?
Combination of direct and indirect distribution
quality of the selling outlet is less important
supplier usually call on the customer
few outlet is needed
location is less important
buying ambience is less important
wholesaler is used in lesser extent
Managing the supply chain relationship
Efficient Consumer Response (ECR):
A supply chain management system
requires the sharing of the retailer's sales and advertising information with the supplier
used to generate orders shipped from the supplier based upon projected customer demand
The goal is to reduce inventory and associated handling costs at the retailer.
Collaborative planning, forecasting and replenishment (CPFR):
manufacturers and suppliers agree on sales forecasts
to establish pre-set order amounts
to reduce out-of-stock situations
shows comparison between different trade-offs
suppy chain efficiency can be measured
electronic data interchange (EDI)
Just in time (JIT)
activity based costing
History of JIT:
Henry Ford - Just in Time principles to manage inventory in the Ford Automobile Company during the early part of the 20th Century
Taiichi Onho of the Toyota Manufacturing Company developed Just in Time strategy as a means of competitive advantage during the post World War II period in Japan
Taiichi Onho identified waste as the primary evil.
The categories of waste identified included
inventory or waste associated with keeping dead stock
time spent by workers waiting for materials to appear in the assembly line
time spend on transportation or movement
workers spending more time than necessary processing an item
waste associated with defective items
Can a close relationship cause a problem?
Why is it important to have a close relationship?
Who can participate in purchase the decision making process?
Example: Law freezing cable rates or introduction of new product by a competitor will affect demand.
Natural disasters, such as Hurricane Katrina.
What kind of environmental factors can influence the decisions?
Give us some examples!
backward - firm looks back along the supply chain and controls the suppliers
forward - company looks forward along the distribution channel and acquires the purchasers or products
a B2B firm merges with an other B2B company
same or similar products
equivalent channel level
buying up less powerful companies
in every level of the channel
A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.
What kind of activities, processes can be outsourced?
Factors to consider in partnership
total commitment of the management
strategic fit (objectives, strategies)
Price on the b2b market
relationship between price, value and volume
relationships between price, perceived value and volume, or quantity
value price - value can be different for a person and an other person
maximize customer acceptance and company sales and profits
Tell us some examples:
higher price - higher value
higher price - small quantity
low price - big quantity
B2B Pricing Strategy Matrix
What Is Customer Value?
the perceived worth of the benefits received by a customer in exchange for the total cost of the offer, taking into consideration available competitive offers and prices
in terms of utility - not product or service
a trade-off between benefits and costs
Types of value
propositions by the B2B seller:
The suppliers list every perceived benefit delivered by their product or service.
Favourable points of difference:
Based on the customer's awareness of alternatives, this requires the supplier to have knowledge of alternatives to his own offers.
The suppliers need to make their offers superior on key elements of value that are most relevant to the customers. The supplier's offer must demonstrate and document their superior performance. In addition, the offer must clearly display the supplier's understanding of their customers' business problems.
PRICE = COST + PROFIT
Price communicates the value positioning of the product.
Maximum current profit
Maximum market share –
Maximum market skimming
Product quality leadership
What influences Price Sensitivity?
Price – quality
Unique value effect
the changes in demand with unit change in price
If there is little or no change in demand, it is said to be
If there is significant change in demand, then it is said to be
Demand is less elastic when
There are few or no substitutes
Buyers readily do not notice the higher price
Buyers are slow to change their buying habits
Buyers think that the higher prices are justified
Price and quantity
Target return pricing
Perceived value pricing
Going rate pricing
Sealed bid pricing
Discounts and Allowances:
Off – season
Trade in allowance
Loss leader pricing
Special event pricing
Low interest financing
Longer payment terms
Warranties and service contracts
Different pricing at different locations
Could be in terms of barter,counter trade and foreign currency
Product Mix Pricing:
Product line pricing
Optional feature pricing
Captive product pricing
Two part pricing
By product pricing
Product bundling pricing
Initiating Price cuts:
Excess plant capacity
Initiating price increases:
When demand exceeds supply
When costs go up
Reduce/remove discounts and rebates
Indirect price increases:
Shrinking pack size for same price
Substituting less expensive raw materials
Reducing product features
Removing product services
Using less expensive packaging material
Reducing the no. of packs and sizes offered
Creating new economy brands
How to respond to competitors price:
Maintain price and add value
Increase price and quality
Launch a low price fighter
What kind of pricing strategies do you know?
promotion on b2b markets
The AIDA model
the decision making process of the costumers
effectiveness of B2B promotion
different decision making process on the B2B market
Budget and costs of B2B promotions
smaller target group - less expenses
personal selling is important
specialized and targeted campaignes
Characteristics of B2B ads
Layouts and design should be simple
Specific promise - percentages, exact details of the product, savings in dollars, etc.
The consumer is interested in the product, not in pictures that are not closely connected with it (woman, baby, puppy)
Buyers like testimonials
People are busy - selective, the headline is important
Relevant information and pictures
Mentioning people and stories can be useful
Global campaigns - cultural differences
B2B online promotion
CMS, Content Management Systems (Joomla!, Drupal, Wordpress )
Search Engine Optimization
E-mail marketing, newsletters
Social media - facebook page
Web statistics, measures, web analysis
Forums, bulletin board
Online call center - integrated client programs
Online advertisement campaignes
10 B2B Companies That Create Exceptional Conten:
Intercom's Balanced Blog
Deloitte's Killer How-to Guides
Gild's Awesome Thought Leadership Content
Kuno Creative's Killer Marketing Ebooks
Eloqua's Amazing Infographics
FireRock's Powerful Pinterest Content
Cisco's Fantastic Videos
GE Aviations' Engaging Presence
GoToMeeting's (Citrix) Terrific Twitter Content
VMWare's Killer Community Content
Best B2B promotions
Web Marketing Association - Best B2B ad Internet Advertising Awards
Ten of the best B2B campaigns
11 Examples of Killer B2B Content Marketing Campaigns
What can be the goals of a B2B campaigne?
Plan a B2B marketing promotion campaigne for one of the following companies - list assets
Goals and objectives of the promotion
Promotional Strategy & Tactics
Make a list of advertising tools.
What tools can you use for advertising your product?
Advertising is defined as any form of paid communication or promotion for product, service and idea.
Advertisement is not only used by companies but in many cases by museum, government and charitable organizations.
The focus of advertising to create reason for purchase
Promotion is an incentive tool used to drive up short term sales.
Can be launched directed at consumer or trade.
The focus of promotion is to create an incentive to buy.
Consumer incentives could be samples, coupons, free trial and demonstration.
Trade incentive could be price off, free goods and allowances.
Sales force incentive could be convention, trade shows, competition among sales people.
Companies need to have a constant interaction with customers, employees and different stakeholders. This servicing of relation is done by the public relation office.
Public relation is to handle press releases, support product publicity, create and maintain the corporate image, handle matters with lawmakers, guide management with respect to public issues.
The communication establishes through a direct channel without using any intermediaries is referred to as direct marketing.
Direct marketing can be used to deliver message or service.
Direct marketing saves time, makes an experience personal and pleasant.
Direct marketing reduces cost for companies.
Face to face selling, direct mail, catalog marketing, telemarketing, TV and kiosks are media for direct marketing.
Types of advertising
Printed (newspapers, magazines, brochures, fliers, direct mails, etc.)
Outdoor (billboard, kiosk, transit, trade show, events, etc.)
Broadcast (TV, Radio, Internet, etc.)
Other (infilm promo, celebrity endorsement, games, etc.)
Forms of advertising
point of purchase
Promotion and Public Relations Assets and Tools
Part of the operational marketing
Strictly based on the strategic marketing
The visible side of marketing
For the consumers (customers)
Against the competitors
Classical tools of the marketing (4P)
Product, Price, Place, Promotion
Place in the Marketing mix
Rossiter & Percy (1987) identified four key objectives:
Creating a primary demand or market.
Creating brand awareness.
Enhancing attitudes and influencing intentions.
(after Schramm, 1955)
A discussion, comment and analysis of the issue(s) being communicated.
A mechanism for clarification of points and issues – perhaps through focus groups.
A critical response to the message, which could be translated, for example, into a boycott of a product or service.
A positive response to the message, for example, an increase in purchases.
Can be described as the interruptions or distortions that influence the communications process or understanding of the message. Noise can be:
Can be described as:
A paid for communication vehicle that is intended to inform, influence and/or persuade one or more individuals (to take action).
Selective product or service
Product or service range
Types of Advertising
Local and regional newspapers
Trade and professional magazines
Internet - Online
Types of Advertising Media
Strategically located near high-density areas. Thus high visibility.
Can be static or moving – changing from one advertisement to another.
Can incorporate lighting and effects.
Can vary in size.
Can be restricted by local government – location, size and subject.
Outdoor or Billboard Advertising
A pavement advertisement by the Victoria Health Authority in Australia.
Others – even pavements
Pop - up
Internet or Online
Credit card fraud
Cloning of sites
Quality and delivery of goods purchased
Trust in suppliers
Spamming – (US 9 million per month 2003)
Viruses – worms and Trojan horses
Failure of computing networks
Also known as shockvertising.
Can be described as:
The inclusion of frightening, visceral, offensive, taboo and emotion-provoking imagery and words to promote a product, service, concept or idea.’
Can be used to cut through the communication clutter.
But society can become immune to ‘issues’ and offensive media advertising.
‘Direct marketing focuses on using a database to communicate (and sometimes distribute) directly to customers so as to attract a direct response.’
An example of ‘distribution’ cited above is online airline ‘tickets’.
Organizations have the opportunity to track single and/or segmented groups of customers via their database
Opportunity for a ‘dialogue’
Opportunity for enhanced customization
Advantages of Direct Marketing
Door drops (door-to-door distribution)
Door-to- door selling
Bank/credit card statements
Direct Marketing Techniques
Word of mouth
‘…people like to share their experiences with one another…..and when those are favourable, the recommendations can snowball, resulting in runaway success…..[this can be dubbed] self-generating demand.’
Dye, R. (2000) The buzz on buzz. Harvard Business Review, Vol 78 No 6. pp:139 – 148.
Also know as Viral or Contagion Marketing
‘…these viral ambassadors can be valuable, low-cost avenues for building existing relationships, recruiting new customers and keeping old customers happy for life’
Blackshaw, P. (2001) Viral consumers. Executive Excellence. July Vol 18 No 7. p: 20.
This is where a product or service appears within a television programme or movie
It is also known as:
Product or Brand Integration
Overcome Noise – attempts to break through the clutter.
Local and global reach.
Cost-effectiveness and frequency.
Helps to build a brand’s awareness – exposure for new brands. Reinforces current brands.
Positive association – ‘think of wearing the same Omega watch as James Bond?’
Helps to build brand loyalty – develops from the positive association. Buy the watch and become loyal to the brand.
James Bond and Product Placement
Goldeneye (1995) BMW replaced Aston Martin. BMW introduced their new two-seat convertible, the Z-3. The Z-3 was launched three months after the movie’s release and was supported by a series of James Bond-themed television ads in the US. The result:
12 months worth of orders
Through the movie the Z-3 achieved global recognition
Tomorrow Never Dies (1997) – some £20 million of product placement included:
BMW – cars and bikes
Ericsson mobile phones
Avis care rental
Value to BMW estimated at over US$100 million
‘Sponsorship is a contribution to an activity by a commercial organization in cash, or in kind, with the expectation of achieving corporate and marketing objectives.’
Berrett, T.(1993) The sponsorship of amateur sport – government, national sport organization and corporate perspectives. Society and Leisure, 16. pp: 323 – 346.
Potential benefits of sponsorship
The value of the association itself – for example, arts festivals or a charity. Thus can enhance reputations.
Exposure – can be global. (the global audience for Formula 1 racing)
Different from traditional advertising and marketing. Can be used to breakthrough the clutter of traditional techniques.
Creation of favourable association. The physical and emotional link with the sponsored organization.
Overcomes cultural barriers. Consider Sport, Arts and Music.
Wide and multiple target audience appeal.
Can overcome legal barriers – For example, tobacco sponsorship and Formula 1 (although this too is changing).
Growth of sponsorship
SP can be used to:
Promote a new product or service.
Reinvigorate interest in an established product or service.
Discount a product or service due to, for example, overstocking or to increase off-peak sales.
Types of SP:
Extra value offers
More product for the same price
Addition products added to the pack
Buy One Get One Free
Special offer bins or shelves
Can be B2B or B2C
Can be large events
Can be niche markets
Attendees are receptive to what exhibitors have to market
Cost of lead generation is relatively low
Value of exhibitions:
The Chartered Institute of Public Relations (UK) define it as:
‘………the planned and sustained effort to establish and maintain goodwill and mutual understanding between the organization and its publics.’
What is PR?
In other words...
They have a direct relationship with the organization or individual
Individuals or organizations that may be influenced by the actions of an organization or individual. For example, proposed regulations.
Even these have PR:
the British Secret Intelligence Service (SIS)
Why do they need PR?
Scope of PR
Market or supply chain relations
New product and service launches
The creation of a range of products that reflect an organization’s brand. These are in turn marketed to raise the profile of the original brand.
A university – everything from pens to umbrellas.
A movie – consider the Star Wars™ sagas. Everything from the book – the making of – to toys not only promotes the movie but is also revenue generating.
A City – reflects the city’s past and present.
An airline – from postcards of planes to videos.
Food manufacturers – Heinz™ produce a range from watches to footballs. All with the distinctive logo
setting the objectives
setting the budget
selecting the media
making the AD
timing and presentation
Process of advertisement planning
Józsa et al, 2005
Advertising budget is affected by:
types of the product/services
life cycle stage of the product
sustainability of the product
market share and competition
expected frequency of presentations
consumers' interest and habits
own production or agencies
What factors determine the costs of the ADs?
How much do you think USA companies spent on B2B promotion?
B2B promotion/ads expenditure
4% of company revenue
Buyers have more control over the purchase process
Trade shows are the biggest line item on a b-to-b marketers budget, with nearly 20% of spend being committed to live events
B2C product company marketers expect social media to make up 24.4% of their total marketing budgets in the next 5 years.
B2B services companies are upping 5-year forecasts for projected social media spend from 19.1% share of spend to an estimated 20% projected share. Conversely, B2B product companies have dropped their current share of spend to 5% (from 6.2%), but also plan to cut 5-year spending projections for social media by as much as 15%.
SEO is a more popular area for increased activity among B2B than B2C respondents (67% vs. 62%), while those with 3 or more years of experience (74%) are more likely than the average to indicate increased activities in this channel. By contrast, those new to social media are more likely than experienced social media marketers to say they will increase email marketing this year (64% vs. 57%).
Total business-to-business (B2B) revenue will exceed
The B2B market is forecast to reach nearly
by 2018, with the US and China key growth markets.
Trade shows will grow at a 4.4% by using social media to complement the sustained appeal of face-to-face meetings. In a world of social media and digital communications, exhibition companies also need to remain relevant. Innovative integration of social media and the lasting appeal of the exhibition will help trade shows revenue rise more than US$7bn to US$37.6bn in 2018.