Chapter 14 Promoting Products Communication and Promotion Policy

Chapter 14 Promoting Products: Communication and Promotion Policy and Advertising © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and Makens

“I don’t know who you are. 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? ” -Mc. Graw–Hill Publications © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

The Communication Process 1. Identify the target audience 2. Determine the communication objective © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Buyer Readiness States © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Push vs. Pull Strategy © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

2003 Top Advertisers 1. Mc. Donald’s Corp $1, 368, 000 2. Cendant Corp $773, 000 3. Yum Brands $761, 000 4. Burger King $524, 000 © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Major Advertising Decisions © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Message Decisions • Message Generation • Message Evaluation and Selection • Message Execution © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Execution Styles • Slice of Life • Personality • Lifestyle • Technical Expertise • Fantasy • Scientific Evidence • Mood or Image • Testimonial Evidence • Musical © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. 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 for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Profiles of Major Media Types © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Campaign Evaluation • Measuring the Communication Effect • Measuring the Sales Effect © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Best Practices • How does an advertising agency work? – Full-service Ad Agencies – Specialized Ad Agencies – Special Location Agencies © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Key Terms • Advertising • Atmosphere • Channel conflict • Events © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens

Key Terms • Informative advertising • Media • Promotion mix • Reminder advertising © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4 th edition Kotler, Bowen, and. Makens