Eemt Exercise
Promotion
Chapter Fourteen: Communicating Customer Value:
IMC Strategy
Chapter Fifteen: Advertising and Public Relations
Chapter Sixteen: Personal Selling and Sales
Promotion
SBMT 5030
Prof. Joseph Salvacruz
Department of Marketing
HKUST
Topic Outline
The nature of integrated marketing communication
The communication process and steps in developing
effective marketing communication
Setting the promotion budget and factors that affect the
design of the promotion mix
Promotion mix tools for communicating customer value
Major decisions involved in developing an advertising
program
Role of public relations in the promotion mix
Role of company’s salespeople in creating value
Personal selling and sales promotion
SBMT 5030 – Marketing Management & Strategy
JC Salvacruz
2
Promotion in the Marketing Mix
Target
Market
Product
Place
Personal
Selling
Promotion
Mass
Selling
Advertising
SBMT 5030 – Marketing Management & Strategy
JC Salvacruz
Price
Sales
Promotion
Publicity
3
Definitions
Integrated Marketing Communications
The concept under which a company carefully
integrates and coordinates its many
communications channels to deliver a clear,
consistent, and compelling message about the
organization and its products.
Marketing Communications Mix
The specific mix of advertising, personal selling,
sales promotion, and public relations a company
uses to pursue its advertising and marketing
objectives.
SBMT 5030 – Marketing Management & Strategy
JC Salvacruz
4
The Communication Process
SBMT 5030 – Marketing Management & Strategy
JC Salvacruz
5
What does promotion accomplish?
Price
Promotion and the Demand Curve
Price
Price
D2
D1
D
0
0
Quantity
A. To be more inelastic
Promotion efforts may be
targeted to make demand
for the firm’s products
more inelastic and so more
resistant to counter-moves
by the competition.
SBMT 5030 – Marketing Management & Strategy
D
Quantity
B. to the right
Promotion efforts may be
targeted to increase the
demand for the firm’s
products.
JC Salvacruz
D
D
0
Quantity
C. Both to the right
and more inelastic
Promotion efforts may be
targeted to both increase
demand for the firm’s
products and to make
demand more inelastic
6
Product Class Promotion
Also known as
Generic
Promotion
SBMT 5030 – Marketing Management & Strategy
JC Salvacruz
7
Developing Effective Communication
Step 1: Identifying the TARGET AUDIENCE
Affects decisions related to what, how, when, and where
message will be said, as well as who will say it
Step 2: Determining Communication Objectives (response
sought)
Marketers seek a purchase response that results from a
consumer decision-making process that includes the
stages of buyer readiness
Awareness
Knowledge
SBMT 5030 – Marketing Management & Strategy
Liking
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Preference
Conviction
Purchase
8
Developing Effective Communication
Step 3: Designing a Message
AIDA framework guides message design
Promotion Objectives
Informing
Persuading
Reminding
SBMT 5030 – Marketing Management & Strategy
Adoption Process
AIDA Model
Awareness
Interest
Evaluation
Trial
Decision
Confirmation
Attention
Interest
{
JC Salvacruz
}
Desire
}
Action
9
Developing Effective Communication
Message content
What
to say
contains appeals or themes designed to produce
desired results
Rational appeals
Emotional appeals
Love, pride, joy, humor, fear, guilt, shame
Moral appeals
SBMT 5030 – Marketing Management & Strategy
JC Salvacruz
10
Developing Effective Communication
Message Structure
How
to say it
Key decisions are required with respect to three
message structure issues:
Whether or not to draw a conclusion
One-sided vs....
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