ABSTRACT
Corporate image is often the key point of differentiation between competing companies. An organization’s image relates to how people perceive it and if its public think well of it they are more likely to do business with it
distributors may be given incentives or offered corporate hospitality
n Community related stakeholders may be targeted by sponsorship of local events or teams to build profile
n Customer-related stakeholders might be given no quibble guarantees, served by well-trained front line staff and the organization might develop alliances with ethical charities
(Creates instant recognition)
(Stationery, leaflets, annual reports, etc.)
(Use of signage, uniforms and livery, also its reputation for service/quality)
(How the organization is perceived in the minds of its public)
Apart from the functional role of packaging, which is to provide a container for products, packaging communicates the product name and brand image
These in-store display methods can influence consumers to purchase. Manufacturers create in-store display material to remind customers of their products
Some retailers depend heavily on having a consistent layout, shop design and the way products are displayed, which is part of their corporate image
n Development of the corporate image – the face of the company
n Communication of that image
n Activities where the image is used
n Exhibitions and conferences
n Press conferences, press releases and publicity stunts
n Sponsorship
} The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics ~
In many B2B marketing situations, organizations have a sales force that visits the customer. With exhibitions, road shows, seminar and conferences, customers come to see the supplier
These opportunities bring the two parties together and often generate sales leads that can be followed up at a later date
Conferences and seminars are good opportunities for staff to mix with clients and other influencers in their industry. They provide a ‘softer sell’ than exhibitions and the emphasis is on seeing and being seen or getting kudos by staff speaking at a conference
Press conferences are often used for very high profile product launches
Publicity stunts are often used to make organizations more newsworthy and are used to generate press coverage
Sponsorship can be used to put an organization’s name across to a variety of publics and promote an image
Organizations can sponsor the arts, sporting events or individual sportspeople and even television programmes
Organizations are usually interested in the type of sponsorship that either attracts publicity and media coverage, or puts their name in front of their target audience in an interesting way
For sponsorship to work, it should be in keeping with the organization or its brand image
A press release can be used to obtain editorial space, but it has to be considered interesting and usable before an editorial team will use it
n Feature your organization’s logo at the top
n Have a main heading ‘press release’
n Show the date of the release or the embargo date
n Have a headline
n Be typed in double spacing and have wide margins
n Only use one side of the paper
n Indicate if more copy follows on the next page
n Clearly mark the end of the release
n Contain contact details for further enquiries
n Contain additional ‘background notes for the editor’
who, why, what, when, where and how. They should contain interesting quotes and use factual, not flowery, language
The most important facts should go at
the top of the story with lesser
detail at the end
n Builds corporate personality n Hard to control the published message n Credibility is strong n No guarantees of coverage n Supports other promotional elements n Communication has a short life n Fairly low cost n Can be difficult to measure effectiveness n Newsworthy if linked to celebrities n Can become newsworthy for the wrong reasons
The type of incentive chosen depends on the promotional objective
n Encourage trial of product – to overcome any negative perceptions, encourage brand switching
n Extend existing customer base – by reducing the cost of brand switching
n Prompt customers to change brand
n Generate bulk buying – your consumers are less likely to switch brands if they have residual stock of your product
n Overcome seasonal dips in sales – giving better value for buying now
n Encourage trade to stock product – as helps in pushing products to consumers
Sales promotion is often described as ‘A short-term tactical marketing tool that gives customers additional reasons or incentives to purchase’
n Price reductions
n Coupons/money-off vouchers
n Entry to competitions/free prize draws
n Free goods
n X per cent free
n 3 for the price of 2
n BOGOF – buy one get one free
n Free samples or gifts
n Guarantees or extended warranties
n £x goes to y charity, if you purchase
n Reward points/tokens against a free gift
n Refunds or free gifts on a mail-in basis
n Discount on bulk orders
n Free supplies
n Incentives
n Free prize draw competitions
n Deferred invoicing
n Merchandising and display material
n Can provide a short-term sales lift n Can encourage consumers to brand switch n Can gain better store presence n Can be over-subscribed and cause fulfilment n Can be creative and forge links with problems
other brands n Can reduce sales income in the long term n Can generate good quality customer
information
n Generate sales – by generating action, store visit or online orders
n Build up sales leads – for sales people to follow at a later stage
n Invite recipients to visit a store – to gain information
n Build the company database – to use for future communication
n Remind people that an offer closes by a certain date – linking communication with sales promotions
n Direct mail n Door drops n Selling via catalogues/brochures/websites n Direct response advertising in the press n Direct response advertising on television n Telemarketing
n Easy to measure response n Many negative associations with this method n Precise targeting possible n Direct response mechanisms are costly to n Can send customized message administer n Short lead times n Costly systems needed to process information n Good method for controlling message gathered
While personal selling does occur in consumer marketing, mainly for larger, complex purchases such as financial services, cars, computer equipment, it is used much more in Business-to-Business marketing situations because of the nature of the customers and the purchases
n Order taker – where the sales person takes a passive role
n Pre-order caller – building relationships and giving information, e.g. medical representatives
n Order supporter – the main skill may be technical knowledge, e.g. B2B software supplier
n Order getter – where the sales person has to sell the product
n Opening the sale – introduction, making appointments
n Demonstrating the product
n Handling objections – turning negatives into positives
n Negotiating – offering other services or agreeing to price discounts for bulk orders
n Closing the sale
n Two-way interaction n Costly to maintain a sales force n Sales people obtain market information n Training and updating of sales teams also costly n Good client relationships are profitable n Lack of control of individual sales staff
n PR can be evaluated by the amount of print or broadcast media coverage
n Sales promotion campaigns with ‘coupons’ can be coded and redeemed vouchers counted
n Exhibition leads can be counted and leads that convert to business can be calculated against exhibition costs
n Response rates from direct marketing campaigns can be counted and sales conversions evaluated against the cost of the mailshot exercise
n This unit focused on a variety of below the line communication methods. In particular, it examined the role of corporate identity, public relations, exhibitions, sponsorship, sales promotion, direct marketing and personal selling
n For assessment purposes it is advisable to collect a range of below the line examples (from both trade and consumer sectors) that you can refer to in relevant questions
n Be sure to be able to apply how below the line activities could be used in different contexts. Be prepared to answer questions on the role of corporate identity, branding and how logos are used to communicate with customers
n Look at ways that mail shots and press releases are used so that you can apply these approaches
n Finally, ensure that you understand how exhibitions and sponsorship work, as these topics may be used as the context for writing a letter or report
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