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Chapter 14
Promotion Products: Communication
and Promotion Policy and Advertising
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Establish image
Change image
Generate sales
Send messages to public
Inform, Persuade, Remind customers about
products
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
1
Integrated Marketing
Communications
Advertising
Personal selling
Sales promotion
Public relations
Direct marketing
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
2
Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
3
Steps in Developing Effective
Communication
Step 3. Designing a Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
Message Format
Headline, Illustration,
Copy, & Color
Body Language
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
4
Steps in Developing Effective
Communication
Step 4. Select the Communication Channels
Personal Communication Channels
Face to Face, Telephone, Presentation
Non Personal Communication Channels
Print, Broadcast and Display Media
Step 5. Selecting the Message Source
Step 6. Measure the Communication’s Results
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
5
Setting the Total Promotion
Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.
Affordable
Percentage of Sales
Based on What the
Company Can Afford
Based on a Certain Percentage
of Current or Forecasted Sales
Objective-and-Task
Competitive-Parity
Based on Determining
Objectives & Tasks, Then
Estimating Costs
Based on the Competitor’s
Promotion Budget
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
6
Setting the Promotion Mix
Advertising
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Personal
Selling
Sales
Promotion
Public
Relations
Direct
Marketing
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
7
Factors in Setting Promotion
Mix
Strategy that
Calls for
Spending A Lot
on Advertising
and Consumer
Promotion to
Build Up (Pull)
Consumer
Demand.
Strategy
Selected
Depends
on:
Type of
ProductMarket &
Product
Life-Cycle
Stage
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
Strategy that
Calls for Using
the Salesforce
and Trade
Promotion to
Push the
Product Through
the Channels.
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
8
Factors in Setting Promotion
Mix (cont’d)
• Buyer Readiness State
– Awareness
– Liking, Preferences, and Conviction
– Purchase
• Product-Life-Cycle Stage
–
–
–
–
Introduction
Growth
Mature
Decline
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
9
Manage the Integrated Marketing
Communication Process
The wide range of communication tools, messages and
audiences makes it imperative that companies move toward
integrated marketing communications (IMC).
• A concept of marketing communications planning that
recognizes the added value of a comprehensive plan that
evaluates the strategic roles of a variety of communications
disciplines- for example, general advertising, direct response,
sales promotion and public relations-and combines these
disciplines to provide clarity, consistency, and maximum
communications’ impact through the seamless integration of
discrete messages.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
10
What is Advertising?
Advertising is Any Paid Form of
Nonpersonal Presentation and
Promotion of Ideas, Goods, or
Services by an Identified
Sponsor.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
11
Major Advertising Decisions
Message Decisions
•Message Strategy
•Message Execution
Objectives Setting
•Communication
objectives
•Sales Objectives
Setting the
Budget
Campaign Evaluation
•Communication Impact
•Sales Impact
Media Decisions
•Reach, Frequency, Impact
•Major Media Types
•Specific Media Vehicles
•Media Timing
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
12
Setting Advertising Objectives
Informative Advertising
Inform Consumers or
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Reminder Advertising
Keeps Consumers Thinking
About a Product
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
13
Setting the Advertising Budget
• Company specific factors to be
considered when setting the
advertising budget:
– Stage in the product life cycle,
– Competition and clutter,
– Market share,
– Advertising frequency,
– Product differentiation.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
14
Setting the Advertising Budget
• General factors to be considered when
setting the advertising budget:
– Strategic versus tactical budgets,
– Overall promotional budget,
– Consistency,
– Opportunities to stretch the budget,
– The final budget.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
15
Message Decisions
Message
Generation
Message Evaluation
&
Selection
Message Execution
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
16
Media Decisions
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
17
Campaign Evaluation
Measuring
the
Communication Effect
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
Measuring
the
Sales Effect
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
18