Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Chapter 14 Promotion Products: Communication and Promotion Policy and Advertising Establish image Change image Generate sales Send messages to publics Inform, Persuade, Remind customers about products Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Integrated Marketing Communications Advertising Personal selling Sales promotion Public relations Direct marketing Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Steps in Developing Effective Communication Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Steps in Developing Effective Communication Awareness Knowledge Liking Preference Conviction Purchase Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

Steps in Developing Effective Communication Step 3. Designing a Message Steps in Developing Effective Communication Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Headline, Illustration, Copy, & Color Body Language Attention Interest Desire Action Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

Steps in Developing Effective Communication Step 4. Select the Communication Channels Steps in Developing Effective Communication Step 5. Selecting the Message Source Personal Communication Channels Face to Face, Telephone, Presentation Non Personal Communication Channels Print, Broadcast and Display Media Step 6. Measure the Communication’s Results Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

Setting the Total Promotion Budget Affordable Based on What the Company Can Afford Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion. Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Competitive-Parity Based on the Competitor’s Promotion Budget Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

Setting the Promotion Mix Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive 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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

Factors in Setting Promotion Mix Strategy Selected Depends on: Type of Product-Market & Product Life-Cycle Stage Push Strategy Pull Strategy Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand. Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Message Decisions Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

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 Media Decisions 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 ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Promotion HOA380 Chapters 16,17,18

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 Campaign Evaluation Measuring the Communication Effect Measuring the Sales Effect Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458