Communication

Question 1

Give a short overview of the communication instruments

Answer 1

• Public relation (create trust for brand)
• Advertisement
• Sales promotion/exhibition/conferences (starting personal contact)
• Personal sales (convincing potential customers)

Question 2

What does AIDA stand for?

Answer 2

A - Awareness
I - Interest
D - Desire
A - Action

Question 3

How can companies decide their communication budget?

Answer 3

• 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?

Question 4

What is tier marketing?

Answer 4

Innovation marketing (meet customer growth needs) - Relationship marketing - function marketing

Question 5

What is the difference between a push and a pull-strategy?

Answer 5

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

Question 6

What are the opportunities of value chain marketing for ingredient suppliers?

Answer 6

• 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)

Question 7

What are the risks of value chain marketing for ingredient suppliers?

Answer 7

• 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

Question 8

Value Chain Marketing may generate opposition by direct customers. What are the market resistances of value chain srategies?

Answer 8

• 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)

Question 9

What are the reasons for increasing the emotional appeal in B2B advertisements?

Answer 9

• 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

Question 10

Why are trade shows and exhibitions so important?

Answer 10

• 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

Question 11

What are the Key Performance Indicators (KPIs) to measure trade show success?

Answer 11

• Success in reaching target groups (Nu. of visitors, type of visitors)
• Attractiveness of the exhibition stand
• Behaviour of visitors (Analysis of visitor’s movements)
• Achievement of non-economical targets (info brokerage, attitudes, interest in products)
• Achievement of economical targets (orders recieved, revenues)