Flashcards in Communication Deck (11)
Give a short overview of the communication instruments
- Public relation (create trust for brand)
- Sales promotion/exhibition/conferences (starting personal contact)
- Personal sales (convincing potential customers)
What does AIDA stand for?
A - Awareness
I - Interest
D - Desire
A - Action
How can companies decide their communication budget?
- They can relate previous revenue to potential spending
- Budget communication spending on market peculiarities
Important questions to ask:
- How many % of the raget group should know about the product?
- How efficient will an ad campaign be?
- How often do we have to have ad campaigns to gain the wanted awareness level?
- How much money do we have to spend on the required ads?
What is tier marketing?
Innovation marketing (meet customer growth needs) - Relationship marketing - function marketing
What is the difference between a push and a pull-strategy?
Push - taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase
Pull - Involves motivating customers to seek out your brand in an active process
What are the opportunities of value chain marketing for ingredient suppliers?
- Leaving anonymity
- chances to differentiate from competition
- Reducing dangers of substitution
- Increasing customer loyality, supplier relationships
- Gathering market intelligence
- Positive image in later market stages, brand value
- Overcoming resistances by clients towards innovations
- Increasing market strength towards clients (OEMs)
What are the risks of value chain marketing for ingredient suppliers?
- Image problems when OEMs (orginal equipment manufacturer) or distributors misbehave
- Cost- and time-intensive work
- Higher commitment to quality assurance
- Clearly defines target for competitive actions
- Overstocking markets with proprietary brands
- Ressistance by clients
Value Chain Marketing may generate opposition by direct customers. What are the market resistances of value chain srategies?
- Resistance against using the related product (Lacking incentives, strong supplier ties, high set-up costs, Lacking know-how)
- Resistance against the application value chain marketing (opposition to marketing concepts, limiting sourcing freedom, opposition to know how advantage, danger of being bought)
What are the reasons for increasing the emotional appeal in B2B advertisements?
- The percieved similarity of products increases
- Not all "factual" advertising info can be processed by the target persons due to high amount of info load in daily working routines
- Private life elements interferes with the buying-center members, that effect organizational buying behaviour and buying decisions
Why are trade shows and exhibitions so important?
- Promotion (Advertisement)
- Check out competition
- Evaluate potentail customers (Public relations)
- Market orientation
- Information exchange
Trade shows enables customers toview, experience and understand the products in face-to-face interaction with the sellers