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RSM250H1 (18)
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Chapter 14

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University of Toronto St. George
Rotman Commerce
Min Zhao

Chapter 14 P.456-457 The Promotion Mix (Marketing communications mix)-consists of the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.  Advertising – Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor.  Sales promotion – Short term incentives to encourage the purchase or sale of a product or service.  Personal selling –Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.  Public relations – Building good customer relations by: obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events  Direct marketing – Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. (i.e. direct mail, telephone, email, direct response tv, internet with specific consumers) P.464-475 Steps in Developing Effective Marketing Communications 1. Identify the target audience May be individuals, groups, special publics or the general public. The target audience will affect the communicator’s decisions on what, when and where to say, and also who to say it. 2. Determining the Communication Objectives -Seeking purchase response (result of long consumer decision-making process) -Buyer-readiness stages-the stages consumers pass through when making a purchase: awareness, knowledge, liking preference, conviction and purchase. -Communicator must lead consumers to take the final step(purchase) by offering promotional prices, add-ons, rebates or premiums. -Good marketing communication: “good deeds followed by good words.” 3. Designing a message -The message should get attention, hold interest, arouse desire, and obtain action (AIDA model) -Message Content (What to say) –figure out an appeal or theme that will produce the desired response. -Three types of appeals: 1. rational appeals – show the product will produce the desired benefits. (i.e. showing product’s quality, economy, value or performance.) 2. emotional appeals – stir up negative or positive emotions that can motivate purchase. Advocates claim the advocates claim they attract more attention and create more belief in the sponser and brand. 3. moral appeals – directed to the audience’s sense of what is right and proper. Often used to urge people to support social causes such as a cleaner environment or aid the disadvantaged. -Message Structure (How to say it) – 3 message structure issues: 1. Whether to draw a conclusion or leave it to the audience. 2. Whether to present the strongest arguments first or last. 3. Whether to present a one-sided argument or two sided argument. -Message Format(how to say it) – Strong format: headline, copy illustration and color. Attention grabbing. Body language. 4. Choosing Media – Select channels of communication (personal or nonpersonal) -Personal communication channels – two or more people communicate directly with each other, including face to face, on the phone, through mail or email, or even through an internet chat. -it allows for personal addressing and feedback. -Word of Mouth influence – communication about a product between target buyers and neighbors, friends, family , or associates. -Personal influence is useful for products that are expensive, risky or highly visible. -opinion leaders – people whose opinions are sought by others. -Buzz marketing – involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities. -Nonpersonal communication Channels – are media that carry messages without personal contact or feedback, including major media, atmospheres, and events. -Major media include print media, broadcast media, display media, and online media. -Atmospheres are designed environments that create or reinforce the buyer’s leanings toward buying a product. -Events are staged occurrences that communicate messages to target audiences. -Nonpersonal communication affects buyers directly, mass media affects buyers indirectly by causing more personal communication. -tv  magazines/other mass media opinion leaders others -should aim their messages directly at opinion leaders, letting them carry the message to others. 5. Selecting the Message Source – the message’s impact on the target audience is also affected by how the audience views the communicator(messages delivered by highly credible sources are more persuasive). 6. Collecting feedback -Post-message delivery, communicator must research its effect on the target audience. -asking how many times they say it, what they recall, their attitudes -measure behavior resulting from the message. Setting the Total Promotion Budget and Mix Happens after planning and sending communications to a target audience. 1. Setting the Total Promotion Budget 4 Common Methods used to set the total budget for advertising. -Affordable Method – Set the promotion budget at the level they think the company can afford. -Often practiced by small businesses -completely ignores the effects of promotion on sales and is placed at last priority -makes long range market planning difficult.
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