1. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Chapter Fifteen The Communications Mix: Advertising

2. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Communications Mix  Advertising  Sales promotion  Merchandising  Public relations and publicity  Personal selling

3. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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.”

4. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

5. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

6. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Consumer StageEffect StageStrategy Cognitive: the stage of thoughts/beliefs Create awareness, beliefsProvide 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 Attitudinal Components and Their Impact on Communications Strategy

7. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

8. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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?

9. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Push/Pull Strategies Push Push the communication mix through distribution channels which then get to the customer Pull Pull the mix directly to the market/customers who will then go through the distribution channels

10. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Word-of-Mouth Communication  Most powerful in the hospitality industry  Communications mix can affect the decision to purchase/not purchase  Undercover marketing

11. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Budgeting the Communications Mix  No industry-set standard—too complex  What does the budget consist of? –Independent: 2-3% of sales –Franchise:4% of revenue for national plus 2-3% for own –Major business:5-6% of forecasted total revenue

12. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Budgeting the Communications Mix (cont.)  Allocation of funds –Five-year change in advertising spent:  Direct mail+2.4%  Newspapers-18.8%  Broadcast TV-15.2%  Cable TV+79.1%  Radio-5.6%  Magazines-9.9%  Internet+203.9%

13. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Budgeting the Communications Mix (cont.)  Other methods: –“Zero-based budgets” –“Competitive-level budgets” –“Whatever’s left over method” –“Return on investment”

14. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

15. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

16. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

17. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

18. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

19. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Advertising (cont.)  Evaluating –Pre/post exposure perceptions of the product or brand –Theoretical cost per thousand prospects –Did it work?

20. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

21. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition