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