Transcript Chapter 14
Chapter 14 Promotion Products: Communication and Promotion Policy and Advertising • • • • • 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