1. 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

2. 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

3. 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 HOA Chapters 16,17,18

4. 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 HOA Chapters 16,17,18

5. 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 HOA Chapters 16,17,18

6. 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 HOA Chapters 16,17,18

7. 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 HOA Chapters 16,17,18

8. 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 HOA Chapters 16,17,18

9. 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

10. 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

11. 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 HOA Chapters 16,17,18

12. 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 HOA Chapters 16,17,18

13. 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 HOA Chapters 16,17,18

14. 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 HOA Chapters 16,17,18

15. 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 HOA Chapters 16,17,18

16. 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

17. 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 HOA Chapters 16,17,18

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