Transcript Chapter 15
Chapter Fifteen The Communications Mix: Advertising Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Communications Mix Advertising Sales promotion Merchandising Public relations and publicity Personal selling Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Communications Mix: Defined “All communications between the firm and the target market that increase the tangibility of the product/service mix, that establish or monitor consumer expectations, or that persuade customers to purchase.” Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Communications Strategy To plan, implement, and control persuasive communication with customers Six stages of the communication process: – – – – – – 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Attitudinal Components and Their Impact on Communications Strategy Consumer Stage Effect Stage Strategy Cognitive: the stage of thoughts/beliefs Create awareness, beliefs Provide information, get attention, inform, remind Affective: the stage of emotion Change attitudes and feelings, get involved, evaluate Position, create benefits and image, stir emotions, arouse Conative: the stage of motivation and intention Stimulate and direct desires, adopt Move to action, reinforce expectation, persuade Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Research for the Communications Mix Best results via media research to ensure the investment met good returns – Where are we now? – Why are we there? – Where could we be? – How can we get there? – Are we getting there? Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Push/Pull Strategies Push Pull Push the communication mix through distribution channels which then get to the customer Pull the mix directly to the market/customers who will then go through the distribution channels Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Word-of-Mouth Communication Most powerful in the hospitality industry Communications mix can affect the decision to purchase/not purchase Undercover marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Budgeting the Communications Mix No industry-set standard—too complex What does the budget consist of? – Independent: – Franchise: 2-3% of sales 4% of revenue for national plus 2-3% for own – Major business: 5-6% of forecasted total revenue Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Budgeting the Communications Mix (cont.) Allocation of funds – Five-year change in advertising spent: Direct mail Newspapers Broadcast TV Cable TV Radio Magazines Internet Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition +2.4% -18.8% -15.2% +79.1% -5.6% -9.9% +203.9% © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Budgeting the Communications Mix (cont.) Other methods: – “Zero-based budgets” – “Competitive-level budgets” – “Whatever’s left over method” – “Return on investment” Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Advertising Mass communication that is paid for The most visible element of the communications mix The roles of advertising: – Create awareness, persuade, and reinforce purchase behavior – Hospitality: create and maintain awareness Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Advertising (cont.) What advertising should accomplish: allocate resources to where they will do the most good In hospitality: – – – – Tangibilize the intangible Provide a solution to a problem Differentiate from the competition Create positive effects on the employees executing the promises – Create word-of-mouth Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Advertising (cont.) The use of advertising today – Advertise if you can do it effectively – Don’t advertise if it is not worth the cost – Manage with regard to the firm’s overall strategy Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Advertising (cont.) Evaluating – Pre/post exposure perceptions of the product or brand – Theoretical cost per thousand prospects – Did it work? Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Advertising (cont.) Did it work? – Step one: calculate total communications expense – Step two: calculate net margin per product – Step three: match advertising cost with expected results Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.