Chapter 14 Promotion Products: Communication and Promotion Policy and Advertising

Transcript 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.

• 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.

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Integrated Marketing Communications

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Steps in Developing Effective Communication

Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Awareness Knowledge Liking Preference Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens Conviction Purchase ©2003 Pearson Education, Inc.

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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 Message Format Headline, Illustration, Copy, & Color Body Language Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc.

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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.

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Setting the Total Promotion Budget

One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion.

Affordable

Based on What the Company Can Afford

Percentage of Sales

Based on a Certain Percentage of Current or Forecasted Sales

Objective-and-Task

Based on Determining Objectives & Tasks, Then Estimating Costs

Competitive-Parity

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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 Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc.

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Factors in Setting Promotion

Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand.

Mix

Strategy Selected Depends on: Type of Product Market & Product Life-Cycle Stage Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.

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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.

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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.

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What is Advertising?

Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

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Major Advertising Decisions

Message Decisions •Message Strategy •Message Execution Objectives Setting •Communication objectives •Sales Objectives Setting the Budget Campaign Evaluation •Communication Impact •Sales Impact Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens Media Decisions •Reach, Frequency, Impact •Major Media Types •Specific Media Vehicles •Media Timing ©2003 Pearson Education, Inc.

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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.

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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.

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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.

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Message Decisions

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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.

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Campaign Evaluation

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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.

Transcript 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.