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Topics: Marketing, Sales, Sales promotion Pages: 25 (1667 words) Published: March 12, 2013
Promotion
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

JC Salvacruz

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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