Chapter 13

Promoting Products: Communication and Promotion Policy and Advertising

Chapter 13

Kotler, Bowen and Makens

Marketing for Hospitality and Tourism

Marketing for Hospitality and Tourism, 6eKotler, Bowen and Makens

© 2014 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

Learning Objectives

1. Discuss the process and advantages of integrated marketing communications in communicating customer value.

2. Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.

3. Outline the steps in developing effective marketing communications.

4. Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.



Learning Objectives (cont.)

5. Define the roles of advertising in the promotion mix.

6. Describe the major decisions in advertising, including setting objectives and budget; creating the advertising message; selecting advertising media; choosing media types, vehicles, and timing; and evaluating advertising.



The Promotion Mix

The PromotionMix



Integrated Marketing Communications



Media

Elements in the Communication Process

Sender Encoding Message Decoding Receiver

Feedback Response

Noise



Steps in Developing EffectiveCommunication

Collect Feedback

Select the Message Source

Identify the Target

Audience

Determine the Communication

Objectives

Design the Message

Select the Communication

Channels



Buyer Readiness States

PurchaseConviction

Awareness Knowledge Liking

Preference



Designing the Message

MessageContent

MessageStructure

MessageFormat



Communication Channels

Personal Nonpersonal

Communication

Channels



Setting the Total Promotion Budget

Competitive Parity

Objective and Task

Affordable Percentage of SalesBudget

Methods



Objective and Task Method

Define Specific

Objectives

Determine Tasks to Achieve

Objectives

Estimate the Costs of

Performing Tasks



Advertising

Benefits

Seems Legitimate

Allows Repetition

Builds Long-Term Image

Low Cost per Exposure

Drawbacks

Impersonal

One-Way Communication

Easily Ignored

Can Be Very Costly



Personal Selling

Benefits

Builds Buyer Preference

Fosters Relationships

Drawbacks

Long-Term Commitment

Most Expensive Tool



Sales Promotion

Benefits

Attract Customer Attention

Encourage Immediate Purchase

Can Boost Sagging Sales

Drawbacks

Effects are Short-Lived

Short-Term

May Not Build Brand Preference



Public Relations

More Believable

Better Reach

Public Relations



Direct Marketing

Nonpublic Immediate

Customized Interactive



Promotion Mix Strategies

Buyer Readiness

StateProduct Life-Cycle Stage

Type of Product &

MarketPush vs. Pull

StrategyPromotion Mix

Strategies



Major Decisions in Advertising



Advertising Objectives

Reminder

Informative Persuasive

Advertising

Objectives



Setting an Advertising Budget

Stage in the Product Life Cycle

Competition and Clutter

Market Share

Advertising Frequency

Product Differentiation



Creating the Advertising Message

Message Evaluation

and Selection

Message Generation

Message Strategy

Message Execution

Message Decisions



Message ExecutionSlice of Life

LifestyleFantasy

Mood or ImageMusical

PersonalityTechnical ExpertiseScientific Evidence

Testimonial Evidence



Major Steps in Media Selection

Deciding on Media Timing

Selecting Specific Media

Vehicles

Choosing Among Major Media Types

Deciding on Reach, Frequency & Impact



Evaluating Advertising Effectiveness

Awareness Effect

Communication Effect Sales EffectMeasure



Key Terms

Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Atmosphere Designed environments that create or reinforce a buyer’s leanings toward consumption of a product.

Continuity Scheduling ads evenly within a given period.

Copy testing A process performed before or after an ad is printed or broadcast.

Direct marketing Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships: the use of direct mail, the telephone, direct-response television, e-mail, the Internet, and other tools to communicate directly with specific consumers.

Direct rating The advertiser exposes a consumer panel to alternative ads and asks them to rate the ads.



Key Terms (cont.)

Events Occurrences staged to communicate messages to target audiences, such as news conferences or grand openings.

Informative advertising Advertising used to inform consumers about a new product or feature to build primary demand.

Integrated marketing communications Under this concept the company carefully integrates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands.

Laboratory test This test uses equipment to measure consumers’ physiological reactions to an ad: heartbeat, blood pressure, pupil dilation, and perspiration.

Media Nonpersonal communications channels, including print media (newspaper, magazines, direct mail), broadcast media (radio, television), and display media (billboards, signs, posters).

Personal selling Personal presentation by the firm’s sales force to make sales and build customer relationships.



Key Terms (cont.)

Portfolio tests Consumers view or listen to a portfolio of advertisements, taking as much time as they need.

Promotion mix The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

Public relations Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Pulsing Scheduling ads unevenly over a given period.

Recall tests The advertiser asks people who have been exposed to magazines or television programs to recall everything they can about the advertisers and products that they saw.

Recognition tests The researcher asks readers of, for instance, a given issue of a magazine to point out what they have seen.

Reminder advertising Advertising used to keep consumers thinking about a product.

Sales promotion Short-term incentives to encourage the purchase or sale of a product or service.

Documents

Chapter 13