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Chapter 14
Promoting
Products:
Communication
and Promotion
Policy and
Advertising
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
“I don’t know who you are. I don’t know your
company. I don’t know your company’s product.
I don’t know what your company stands for. I
don’t know your company’s customers. I don’t
know your company’s record. I don’t know your
company’s reputation. Now— what was it you
wanted to sell me?”
-McGraw–Hill Publications
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Outline the six steps in developing effective
communications
• Define the ways of setting a total promotional
budget
• Explain each promotional tool and the factors
in setting the promotion mix
• Describe the major decisions in advertising
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Promotion Mix
• A promotion mix is a company’s total
marketing communications program and
it consists of a specific blend of:
– Advertising
– Sales Promotions
– Public Relations
– Personal Selling
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
The Communication Process
1. Identify the target audience
2. Determine the communication
objective
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Buyer Readiness States
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
The Communication Process
Design the message
•
Message Content
•
Message Structure
•
Message Format
•
Message Source
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
The Communication Process
•
Select Communication Channels
•
•
Personal Communication Channels
Nonpersonal Communication Channels
•
Select the Message Source
•
Measure Communication Results
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Establishing the Total Marketing
Communications Budget
•
Affordable Method – based on what the
company can afford
•
Percentage of Sales Method – based on a
percentage of current or forecasted sales
•
Competitive Parity Method – based on
competitors’ budgets
•
Objective and Task Method – based on
objectives, tasks, and estimated costs
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Nature of Each Promotion Tool
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
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
Marketing
Marketing
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Kotler,
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Factors in Setting the
Promotion Mix
• Type of Product and Market
• Push vs. Pull Strategy
• Buyer Readiness State
• Product Life-Cycle Stage
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Push vs. Pull Strategy
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Advertising
• Advertising is any paid form of
nonpersonal presentation and
promotion of ideas, goods, or services
by an identified sponsor
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
2003 Top Advertisers
1. McDonald’s Corp
$1,368,000,000
2. Cendant Corp
$773,000,000
3. Yum Brands
$761,000,000
4. Burger King
$524,000,000
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Major Decisions in
Advertising
• Setting the Objectives
• Setting the Advertising Budget
• Message Decisions
• Media Decisions
• Campaign Evaluation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Setting the Objectives
• Informative advertising is used to inform
consumers about a new product or feature to
build primary demand
• Persuasive advertising is used as
competition increases and a company’s
objective becomes building selective demand
• Reminder advertising is used for mature
products since it keeps consumers thinking
about the product
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Major Advertising Decisions
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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and Tourism,
4th edition
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Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Setting the Advertising Budget
• Specific factors to be considered
when setting an advertising budget:
– Stage in the product life cycle
– Competition and clutter
– Market share
– Advertising frequency
– Product differentiation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Setting the Advertising Budget
• General factors to consider:
– Strategic versus Tactical Budgets
– Overall Promotional Budget
– Consistency
– Opportunities to Stretch the Budget
– The Final Budget
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Message Decisions
• Message Generation
• Message Evaluation and
Selection
• Message Execution
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Media Decisions
• Deciding on Reach, Frequency, and Impact
• Choosing Among Major Media Types
• Selecting Specific Media Vehicles
• Deciding on Media Timing
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Profiles of Major Media Types
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Campaign Evaluation
• Measuring the Communication Effect
• Measuring the Sales Effect
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Key Terms
• Advertising
• Atmosphere
• Channel conflict
• Events
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Key Terms
• Informative advertising
• Media
• Promotion mix
• Reminder advertising
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens