Transcript 10 Communicatin g to Markets.pp t

Role of
Communication
in Destination
Marketing
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Role of Communication
Communicating with the tourist market means
giving information to potential visitors about
the destination and it requires,
• the form an attractive image of destination
• develop packages of attractions and
amenities
– Attractions alone do not attract visitors
– Also requires effective communication to
potential visitors
The Communication Process
• Total marketing communications programs of a
destination, called its communication mix,
consists of a specific blend of advertising, sales
promotion, public relations, publicity and
personal selling to achieve promotion and
marketing objectives.
• The five basic communication tools are defined
as the followings;
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Communication Tools
• Advertising: any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor.
• Sales promotion: Short-term incentives to encourage
the purchase or sales of a product or service
• Public relations: Building good relations with various
publics by obtaining favorable publicity, developing a
good image, and handling or heading off unfavorable
rumors, stories or events about the destination.
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Communication Tools
• Publicity: It involves various efforts to
publicize specific products or services of any
destination.
• New products: special events such as
festivals, redesigned products such as a
newly renovated hotels; and products that
are popular because of current trends in the
destination are all potential candidates for
publicity.
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Overcoming Problems of Intangibility of
Tourism/Hospitality Products
• It may be difficult to communicate tourism/hospitality
service benefits to customers, especially when the
product is intangible
• Intangibility creates four problems:
– Abstractness
• No one-to-one correspondence with physical objects
– Generality
• Items that comprise a class of objects, persons, or events
– Non-searchability
• Cannot be searched or inspected before purchase
– Mental impalpability (grasp)
• Customers find it hard to grasp benefits of complex,
multidimensional new offerings
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Advertising Strategies for Overcoming Intangibility
Intangibility problem
•
Generality
– objective claims
– subjective claims
•
Non-searchability
•
Abstractness
•
Impalpability
Advertising strategy
Document physical system capacity
Cite past performance statistics
Present actual service delivery incident
Present customer testimonials(witness)
Cite independently audited performance
Display typical customers benefiting
Documentary of step-by-step process,
Case history of what firm did for customer
Narration of customer’s subjective experience
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Using Metaphors to Communicate Value Propositions
• Tangible metaphors help to communicate benefits
of service offerings, for example:
– Allstate insurance —“You’re in good hands”
– Prudential Insurance — uses Rock of Gibraltar as symbol of
corporate strength
• Metaphors communicate value propositions more
dramatically and emphasize key points of
difference
• Highlight how service benefits are actually
provided
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Facilitate Customer Involvement in Production
• When customers are actively involved in service production like
tourism and hospitality, they need training to perform well
• Show product delivery in action such as example self service at
the hotel
• Television and videos engage viewer
• Streaming videos on Web are new channels to reach active
customers
• Advertising and publicity can make customers aware of changes
in service features and delivery systems
– Sales promotions to motivate customers
– Offer incentives to make necessary changes
– Price discounts to encourage self-service on an ongoing basis
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Help Customers to Evaluate Product Offerings
• Customers sometimes may have difficulty
distinguishing one destination from
another
–We have to provide some tangible clues
related to destination service/product
performance
• Some performance attributes lend
themselves better to advertising than
others
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Help Customers to Evaluate Product Offerings
– For example, airlines
• Boast about punctuality
• Do not talk overtly in advertising about
safety, admission that things might go
wrong make prospective travelers nervous
• Use indirect approach: promote pilot
expertise, mechanic’s maintenance skills,
newness of aircraft
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Promote the Contributions of Personnel
• Frontline personnel are central to tourism and
hospitality service delivery especially in highcontact services
– We have to make the service more tangible
and personalized
– We can advertise employees at work to help
customers understand nature of service
encounter
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Promote the Contributions of Personnel
• We can show customers work performed
behind the scenes to ensure good delivery
– To enhance trust, highlight expertise and
commitment of employees whom customers
normally do not normally encounter
– Advertisements must be realistic
– Messages help set customers’ expectations
– Service personnel should be informed about the
content of new advertising campaigns or
brochures before launch
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Setting Communication Objectives
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Checklist for Marketing Communications
Planning: The “5 Ws” Model
• Who is our target audience?
• What do we need to communicate and
achieve?
• How should we communicate this?
• Where should we communicate this?
• When do communications need to take place?
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Target Audience: 3 Broad Categories
• Prospects
–Employ traditional communication
mix because prospects are not known
in advance
• Users
–More cost-effective channels
• Employees
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Target Audience: 3 Broad Categories
• Employees
– Secondary audience for communication
campaigns through public media
– Communications may be directed
specifically at employees as part of
internal marketing campaign, not
accessible to customers
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The Marketing
Communications Mix
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Marketing Communications Mix
• Numerous forms of communication
• Different forms have distinctive
capabilities
–Types of messages that can be conveyed
–Market segments most likely to be
exposed to them
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Marketing Communications Mix
• Two types of communication
– Personal communications: personalized messages
that move in both directions between two parties
– Impersonal communications: messages move in only
one direction
• Technology creates gray area between both
– For example, combine word processing technology
with information from database to create impression
of personalization; interactive software; voice
recognition technology
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Marketing Communications Mix
for Tourism (1)
Personal
communications
Selling
*
Advertising
Broadcast
Sales promotion
Sampling
Customer
service
Print
Coupons
Training
Internet
Sign-up
rebates
Telemarketing
Outdoor
Gifts
Direct mail
Prize
promotions
Word of
(other customers)
mouth
Word-of-mouth
Key: * Denotes communications originating from outside the organization
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Marketing Communications Mix for Tourism (2)
*
Publicity &
public relations
Instructional
manuals
Press
releases/kits
Websites
Signage
Press
conferences
Manuals
Interior decor
Special Events
Brochures
Vehicles
Sponsorship
Interactive
software
Equipment
Trade Shows,
exhibitions
Voice mail
Stationery
Media-initiated
coverage
Corporate design
Uniforms
Key: * Denotes communications originating from outside the organization
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Sources of Messages Received by Target Audience
Front-line staff
Messages originating
within organization
Sources
Messages originating
outside organization
Service outlets
Advertising
Sales promotions
Direct marketing
Personal selling
Public relations
Word of mouth
A
U
D
I
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N
C
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Media editorial
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Messages Transmitted through
Production Channels (1)
• Developed within organization and transmitted through
production channels that deliver the service itself
• Customer service from front-line staff
–Shape customer’s perceptions of service experience
and the firm
–Responsible for delivering supplementary services such
as providing information, receiving payment, resolving
problems, etc.
–Firm may require customer service staff to cross-sell
additional services
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Messages Transmitted through
Production Channels (2)
• Customer training
–Familiarize customers with service product and teach
them how to use it to their best advantage via
familiarization tours to the destination
• Service outlets at the hotels
–Planned and unintended messages reach customers
through the medium of the service delivery
environment itself
–Servicescape: Physical design of service outlet
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Messages through Marketing Channels:
Trade Shows
• Stimulate extensive media coverage
• Many prospective buyers come to shows (Travel
Agencies)
• Opportunity to learn about latest offerings from wide
array of suppliers
–Environment is very competitive
–Compare and contrast
–Question company reps
• Physical evidence displayed through exhibits, samples,
demonstrations
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Communication Strategy
•
The communication process has 6
broad stages
–
–
–
–
–
–
To whom to say it
Why to say it
What to say
How to say it
How often to say it
Where to say it
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Communications Strategy
To whom to say it
Why say it
– Define the target
market
– Research
– Wants and needs
clearly identified
– Expect it to have a
certain effect
– What needs to be
accomplished
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Communications Strategy
•
What to say
–
–
Methods chosen
need to achieve
the strategic
objective
Consumer
adoption process
model
• How to say it
– The execution stage
– Communication that
most accurately
accomplishes the
goals consistent
with the target
market
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Communications Strategy
•
How often to say it • Where to say it
– Using the various
– Consumercomponents
of
the
driven and
communications
budget-driven
mix
– Select appropriate
media
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Communications Strategy
•
Push/pull strategies
–
Push strategy
Marketing communication efforts to
intermediaries, who then push the product to their
customer base
–
Pull strategy
–
Marketing communication efforts directly to the
consumer, who purchases the product directly or
through an intermediary
Both are common in the communications industry
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Word of Mouth (WOM) Communication
• Most powerful form of communication
• Products cannot be tested before
purchase so outside advice is important
• Elements of the communication mix
can influence WOM
• In this way, what we do has more
impact than what we say
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Word of Mouth (WOM) Communication
•
Impact of word of mouth
–
–
–
–
–
Should give people something interesting
to talk about
Create communities and networks to
connect people
Work with influential communities
Create advocate programs
Blogs
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Word of Mouth (WOM) Communication
•
Measuring word of mouth
–
Lifetime value of a customer based on:
•
•
•
•
Gross profit on an average purchase
Average number of purchases a customer
makes each year
Average number of years customer will
continue to purchase
Probability that customer will continue to
purchase
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The Communication Process
Design the message
• Message Content
• Message Structure
• Message Format
• Message Source
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The Communication Process
• Select Communication Channels
• Personal Communication Channels
• Non-personal Communication Channels
• Select the Message Source
• Measure Communication Results
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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
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Nature of Each Promotion Tool
Advertising
Reach Many Buyers, Repeat Message Many
Times, Impersonal, Expensive
Personal
Selling
Personal Interaction, Relationship Building,
Most Expensive Promotional Tool
Sales
Promotion
Wide Assortment of Tools, Rewards Quick
Response, Efforts Short-Lived
Public
Relations
Very Believable, Dramatize a Company or
Product, Underutilized
Direct
Marketing
Nonpublic, Immediate, Customized,
Interactive
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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
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Messages through Marketing Channels:
Advertising
• Build awareness, inform, persuade, and remind
• Challenge: How does a firm stand out from the crowd?
–TV, radio broadcasts, newspapers, magazines,
Internet, many physical facilities, transit vehicles—
all cluttered with ads
–Wide array of paid advertising media
–Ads reinforced by direct marketing tools
• Research suggests that less than half of all ads
generate a positive return on their investment
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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
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Setting Advertising Objectives
Informative Advertising
Inform Consumers or
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Reminder Advertising
Keeps Consumers Thinking
About a Product
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Advertising
•
Ideally, will accomplish:
–
–
–
–
–
Tangibilize the service element
Promise a benefit that can provide
solutions to problems
Differentiate the property from that of the
competition
Have positive effects on employees who
must execute the promises
Capitalize (benefit) on word of mouth
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Advertising
Collateral material
– Promotional
materials such as
brochures, direct
mail, and other
forms of advertising
that are used to
inform customers
and create interest
Merchandising
– A tool used in the
marketing
communications mix to
reach identified target
markets
– Primarily an in-house
marketing technique
used to stimulate sales
of additional products
or services on premise
– A long-term goal is
increasing customer
satisfaction
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Merchandising
• merchandising is any practice which contributes
to the sale of products to a retail consumer
• replica jerseys, keychains, a wide range of
clothing, sports equipment, posters and wall
plaques are the examples
Basic rules of merchandising:
– Have a purpose beyond sales projections
– Compatibility and consistency
– Practicality
– Consistency
– Simplicity
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Merchandising
•
Examples of good merchandising
–
–
–
Business centers in hotels that cater
to business travelers
Pizza on finer hotels’ room service
menus
Mini bars in guest rooms
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Major Decisions in Advertising
• Setting the Objectives
• Setting the Advertising Budget
• Message Decisions
• Media Decisions
• Campaign Evaluation
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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
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Profiles of Major Media Types
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
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Kotler, Bowen, and Makens
Messages through Marketing Channels:
Direct Marketing (1)
• Mailings, recorded telephone messages,
faxes, e-mail
• Potential to send personalized messages
to highly targeted micro-segments
– Need detailed database of information
about customers and prospects
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Messages through Marketing Channels:
Direct Marketing (2)
• Advance in on-demand technologies empower consumers to
decide how and when they prefer to be reached, and by
whom
– For example, e-mail spam filters, pop-up blockers
– Permission marketing: customers encouraged to “raise
their hands” and agree to learn more about a company
and its products in anticipation of receiving something of
value
– Enables firms to build strong relationships with customers
– For example, people invited to register at a firm’s website
and specify what type of information they like to receive
via e-mail
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Messages through Marketing Channels:
Sales Promotion (1)
Defined as “communication attached to an
incentive”
Should be specific to a time period, price, or
customer group
Motivates customers to use a specific service
sooner, in greater volume with each
purchase, or more frequently
Provides a “competitive edge” during periods
when demand would be weak
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Messages through Marketing Channels:
Sales Promotion (2)
Speeds up introduction and acceptance of new
services
Interesting sales promotions can generate
attention and put firm in favorable light
(especially if interesting results publicized)
For example, SAS International Hotels—if a hotel
had vacant rooms, guests older 65 years old could
get a discount equivalent to their years
When a guest announced his age as 102 and asked
to be paid 2 % of the room rate in return for
staying the night, he received it—and got a game
of tennis with the general manager!
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Messages through Marketing Channels:
Public Relations
 PR/publicity involves efforts to stimulate positive
interest in an organization and its products through
third parties
For example, press conferences, news releases,
sponsorships
 Corporate PR specialists teach senior managers how
to present themselves well at public events,
especially when faced with hostile questioning
 Unusual activities can present an opportunity to
promote company’s expertise
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Public Relations (PR)
•
•
PR effort can steer in a positive or
negative way
Press release is a prepared document
for release to selected media containing
information or “news” about a firm
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Public Relations
Undertaking public
relations
–
–
–
An ongoing task that is an
important part of the
marketing planning
Happens at corporate,
property or unit level
Employee and
management belonging
to public organizations
contributes in some
manner to PR
Planning public relations
–
–
–
–
Identify a purpose and
know the target markets
Consider the benefit to the
customer
Know the correct media to
reach the target market
prospects
Establish relationships with
editors and writers and
other media
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Major Activities of PR Departments
•
•
•
•
•
Press Relations
Product Publicity
Corporate Communication
Lobbying
Counseling
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Publicity
• Extensive mention in the news media or by
word of mouth or other means of
communication, and messages about firm
disseminated through various media to attract
public notice
• Product Related Publicity
– Assist in the Launch of New Products.
– Assist in Repositioning a Mature Product
– Build Up Interest in a Product Category
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Publicity
- Publicity is created to
generate continued
positive coverage of a
firm
- Have a targeted purpose
and an evaluation postpublicity
- Publicity helps with
promotions
- Starts with inviting
media to cover a specific
event
- Press releases of
background information
are made available at the
event
- PR works the event,
pitching to the media
- Follow-up calls and thank
you
- Program evaluation
- Make provisions for the
unexpected; crisis
management teams
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Major Tools in Marketing PR
Identity
Media
News
Events
Speeches
Publications
Public Service
Activities
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Discussion Questions
• Find several advertisements for a hospitality or
travel organisation. Then visit their web site. Is the
communication provided on the web site
congruent with and support their print adverstising
and broadcast advertising? Explain your answers.
• Recently, a number of restaurants have shifted
some of their promotional budget from advertising
to public relations. What benefits does public
relations offer that would make the restaurants
spend more?
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Thanks for
attention
Orhan İçöz
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