7/4/2020

“I don’t know who you are. I don’t know your

company. I don’t know your company’s product.
Chapter 14 I don’t know what your company stands for. I
don’t know your company’s customers. I don’t
know your company’s record. I don’t know your
Promoting company’s reputation. Now— what was it you
Products: wanted to sell me?”
Communication -McGraw–Hill Publications

and Promotion
Policy and
Advertising
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition ©2006 Pearson Education, Inc. Marketing
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Promotion Mix
Chapter Objectives
• Outline the six steps in developing effective • A promotion mix is a company’s total
communications marketing communications program and
it consists of a specific blend of:
• Define the ways of setting a total promotional
budget
– Advertising
• Explain each promotional tool and the factors – Sales Promotions
in setting the promotion mix – Public Relations
– Personal Selling
• Describe the major decisions in advertising
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
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Bowen,andandMakens
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1
 7/4/2020

The Communication Process Buyer Readiness States

1. Identify the target audience
2. Determine the communication
objective

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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The Communication Process

The Communication Process
Design the message • Select Communication Channels

• Message Content • Personal Communication Channels

• Nonpersonal Communication Channels
• Message Structure
• Select the Message Source
• Message Format

• Measure Communication Results

• Message Source
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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 7/4/2020

Establishing the Total Marketing Nature of Each Promotion Tool

Communications Budget
Reach Many Buyers, Repeat Message
• Affordable Method – based on what the Advertising Many Times, Impersonal, Expensive
company can afford
Personal Personal Interaction, Relationship
• Percentage of Sales Method – based on a Selling Building, Most Expensive Promo Tool

percentage of current or forecasted sales Sales Wide Assortment of Tools, Rewards

Promotion Quick Response, Efforts Short-Lived
• Competitive Parity Method – based on Public Very Believable, Dramatize a Company
competitors’ budgets
Relations or Product, Underutilized

• Objective and Task Method – based on Direct Nonpublic, Immediate, Customized,

objectives, tasks, and estimated costs Marketing Interactive

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

Factors in Setting the Push vs. Pull Strategy

Promotion Mix
• Type of Product and Market

• Push vs. Pull Strategy

• Buyer Readiness State

• Product Life-Cycle Stage

©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

3
 7/4/2020

Advertising 2003 Top Advertisers

• Advertising is any paid form of 1. McDonald’s Corp $1,368,000,000
nonpersonal presentation and
promotion of ideas, goods, or services 2. Cendant Corp
by an identified sponsor $773,000,000

3. Yum Brands $761,000,000

4. Burger King $524,000,000

©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

Major Decisions in Setting the Objectives

Advertising
• Informative advertising is used to inform
• Setting the Objectives consumers about a new product or feature to
build primary demand
• Setting the Advertising Budget • Persuasive advertising is used as
competition increases and a company’s
• Message Decisions objective becomes building selective demand
• Reminder advertising is used for mature
• Media Decisions products since it keeps consumers thinking
about the product
• Campaign Evaluation
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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 7/4/2020

Major Advertising Decisions Setting the Advertising Budget

• Specific factors to be considered

when setting an advertising budget:

– Stage in the product life cycle

– Competition and clutter
– Market share
– Advertising frequency
– Product differentiation
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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Setting the Advertising Budget Message Decisions

• General factors to consider:
• Message Generation
– Strategic versus Tactical Budgets
– Overall Promotional Budget • Message Evaluation and
– Consistency Selection
– Opportunities to Stretch the Budget
– The Final Budget
• Message Execution

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

5
 7/4/2020

Execution Styles Media Decisions

• Slice of Life • Personality • Deciding on Reach, Frequency, and Impact
• Lifestyle • Technical Expertise • Choosing Among Major Media Types

• Fantasy • Scientific Evidence • Selecting Specific Media Vehicles

• Mood or Image • Testimonial Evidence • Deciding on Media Timing

• Musical
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

Profiles of Major Media Types Campaign Evaluation

• Measuring the Communication Effect

• Measuring the Sales Effect

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

6
 7/4/2020

Best Practices Key Terms

• How does an advertising agency work?
• Advertising
– Full-service Ad Agencies
• Atmosphere
– Specialized Ad Agencies
• Channel conflict
– Special Location Agencies
• Events
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

Key Terms
• Informative advertising

• Media

• Promotion mix

• Reminder advertising
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens