Marketing for Hospitality and Tourism

Kotler, Bowen and Makens

Promoting Products: Communication and

Promotion Policy and Advertising
Chapter 13

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.
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

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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.

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Kotler, Bowen and Makens

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elation

The Promotion Mix

Public
R

n
it o
og
The Promotion
m
n
i
ertrios
AdvMix
P
s
le
a
S

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Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

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Integrated Marketing
Communications

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

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Elements in the Communication

Process
Sender

Encoding

Message

Decoding

Receiver

Media

Noise

Feedback

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Response

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Steps in Developing Effective

Communication
Identify
Identify the
the
Target
Target
Audience
Audience

Select
Select the
the
Communication
Communication
Channels
Channels

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Kotler, Bowen and Makens

Determine
Determine the
the
Communication
Communication
Objectives
Objectives

Select
Select the
the
Message
Message
Source
Source

Design
Design the
the
Message
Message

Collect
Collect
Feedback
Feedback

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Buyer Readiness States

Awareness

Preference

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Knowledge

Conviction

Liking

Purchase

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Designing the Message

Message
Content

Message
Format

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Message
Structure

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Communication Channels

Personal

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Communicati
on
Channels

Nonpersona
l

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Setting the Total Promotion Budget

Affordable
Competitiv
e Parity

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Budget
Methods

Percentag
e of Sales
Objective
and Task

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Objective and Task Method

Define
Define
Specific
Specific
Objectives
Objectives

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Determine
Determine
Tasks
Tasks to
to
Achieve
Achieve
Objectives
Objectives

Estimate
Estimate the
the
Costs
Costs of
of
Performing
Performing
Tasks
Tasks

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Advertising
Benefits

Drawbacks

Seems Legitimate

Impersonal

Allows Repetition

One-Way Communication

Builds Long-Term Image

Easily Ignored

Low Cost per Exposure

Can Be Very Costly

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2014 by Pearson Higher Education, Inc

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Personal Selling
Benefits

Drawbacks

Builds Buyer Preference

Long-Term Commitment

Fosters Relationships

Most Expensive Tool

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Sales Promotion
Benefits

Drawbacks

Attract Customer Attention

Effects are Short-Lived

Encourage Immediate
Purchase

Short-Term

Can Boost Sagging Sales

May Not Build Brand

Preference

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2014 by Pearson Higher Education, Inc

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Public Relations

More
Believable

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Public
Relations

Better
Reach

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Direct Marketing

Nonpublic

Customize
d

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Immediat
e

Interactive

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Promotion Mix Strategies

Type of
Product &
Market
Buyer
Readiness
State

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Promotion
Mix
Strategies

Push vs. Pull

Strategy
Product LifeCycle Stage

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Major Decisions in Advertising

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2014 by Pearson Higher Education, Inc

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Advertising Objectives

Informativ
e

Advertisi
ng
Objective
s

Persuasive

Reminder

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Setting an Advertising Budget

Stage in the Product Life Cycle
Competition and Clutter
Market Share
Advertising Frequency
Product Differentiation
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Creating the Advertising Message

Message
Strategy

Message
Generation

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Message
Execution

Message
Decisions

Message
Evaluation
and
Selection
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Message Execution
Slice of Life
Lifestyle
Fantasy
Mood or Image
Musical
Personality
Technical Expertise
Scientific Evidence
Testimonial Evidence
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Major Steps in Media Selection

Deciding
Deciding
on
on Reach,
Reach,
Frequency
Frequency
&
& Impact
Impact

Choosing
Choosing
Among
Among
Major
Major
Media
Media
Types
Types

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Selecting
Selecting
Specific
Specific
Media
Media
Vehicles
Vehicles

Deciding
Deciding
on
on Media
Media
Timing
Timing

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Evaluating Advertising Effectiveness

Communicatio
n Effect

Measure

Sales Effect

Awareness
Effect

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2014 by Pearson Higher Education, Inc

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Key Terms
Advertising Any paid form of

Direct marketing Direct

nonpersonal presentation and

promotion of ideas, goods, or services
by an identified sponsor.

connections with carefully targeted

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

Atmosphere Designed environments

that create or reinforce a buyers
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.

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Direct rating The advertiser exposes

a consumer panel to alternative ads
and asks them to rate the ads.

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Key Terms (cont.)

Events Occurrences staged to

Laboratory test This test uses

communicate messages to target

audiences, such as news conferences
or grand openings.

equipment to measure consumers

physiological reactions to an ad:
heartbeat, blood pressure, pupil
dilation, and perspiration.

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.

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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 firms sales force to
make sales and build customer
relationships.

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Key Terms (cont.)

Portfolio tests Consumers view or

Recall tests The advertiser asks

listen to a portfolio of advertisements,

taking as much time as they need.

people who have been exposed to

magazines or television programs to
recall everything they can about the
advertisers and products that they saw.

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 companys 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.

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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.

2014 by Pearson Higher Education, Inc

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