Lenrning Objectives: Communications and the Promotional Mix 1.Define the term promotional mix. 2.List the five elements of the promotional mix. 3.List and explain the nine elements of the communications process. 4.Explain the difference between explicit and implicit communications. 5.List the principal goals of promotion. 6.Explain the relationship of the promotional mix and the marketing mix.

Learning Objectives: Chapter 14 Communications and the Promotional Mix 1.Define the terms advertising, personal selling, sales promotion, merchandising, public relations and publicity. 2.List the advantages and disadvantages of each of the five promotional mix elements. 3.Identify the factors that affect the promotional mix.

The Basic Model of Communications Sender Message and Medium Receiver Encoding Decoding Noise Feedback

Five Promotional Mix Elements Advertising Personal selling (sales) Public relations and publicity Sales promotion Merchandising

The Difference between Explicit and Implicit Communications Explicit communications: definite messages given to customers through the use of language, either oral or written (i.e., through the five promotional mix elements) Implicit communications: promotional cues or messages conveyed through body language or by another non-verbal means.

Three Principal Goals of Promotion To inform. To persuade. To remind. RIP acronym = Remind - Inform - Persuade

Definitions of Individual Promotional Mix Elements Advertising: Any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor. Personal selling: Oral conversations, either by telephone or face-to-face, between sales persons and prospective customers.

Definitions of Individual Promotional Mix Elements Sales promotion: Approaches other than advertising, personal selling, and public relations and publicity where customers are given a short-term inducement to make an immediate purchase. Merchandising: Materials used in-house to stimulate sales.

Definitions of Individual Promotional Mix Elements Public relations: All the activities that a hospitality and travel organization engages in to maintain or improve its relationship with other organizations and individuals. Publicity: One public relations technique that involves non-paid communication of information about an organizations services.

Advantages of Advertising Low cost per contact. Ability to reach potential visitors where sales staff cannot. Great scope for creative versatility and dramatization of messages. Ability to create images that sales staff cannot. Non-threatening nature of non-personal presentation. Prestige and impressiveness of mass-media advertising.

Disadvantages of Advertising Inability to close sales. Advertising clutter. Ability for visitor to ignore advertising messages. Difficulties in getting immediate response and action. Difficulties in getting quick feedback and in adjusting messages. Difficulties in measuring effectiveness. Relatively high waste factor.

Advantages of Personal Selling (Sales) Ability to close sales. Ability to hold the prospects attention. Immediate feedback and two-way communications. Presentations can be tailored to the prospects needs. Ability to precisely target the prospect. Ability to get immediate action.

Disadvantages of Personal Selling (Sales) High cost per contact. Inability to reach some customers as effectively.

Advantages of Sales Promotions Sales promotions have some of the advantages of advertising and sales. Ability to get quick feedback. Ability to add excitement to what is being offered by the destination. Flexible timing. Efficiency.

Disadvantages of Sales Promotions Many sales promotions only provide short- term benefits. Ineffective in building long-term loyalty for the destination. Inability to be used in the long term without other promotional mix elements. Often misused by tourism and hospitality organizations (e.g., coupons).

Advantages of Merchandising Merchandising materials can stimulate impulse purchases and higher per capita spending. Provides support for advertising campaigns.

Disadvantages of Merchandising Not very effective in building long-term loyalty for the destination. May contribute to visual clutter. May not be noticed by visitors or potential visitors.

Advantages of Public Relations and Publicity Relatively low cost. Effective because not seen as a commercial message. Credibility and implied endorsements (e.g., articles by travel critics). Prestige and impressiveness of mass-media coverage (e.g., feature articles). Added excitement and dramatization. Maintenance of a public presence.

Disadvantages of Public Relations and Publicity Difficulties in arranging consistent coverage of the destination. Lack of control over what gets printed or said.

Factors that Affect the Promotional Mix Target markets Marketing objectives Competition and promotional practices Promotional budget available