1.

Strategic business process used to develop execute and evaluate coordinated measurable persuasive
brand communication program over time with consumers customers prospects employees Associates
and other targeted relief current external and internal audience with the goal of generating both short-
term financial returns and build long-term brand and shareholders value is IMC.

2. The process of planning executive evaluating and controlling the use of various promotional mix
elements to effectively communicate with a target audience is IMC management.

3. Goals to be accomplished by an organizations overall marketing programs such as sales marketing

share and profitability is marketing objective.

4. An organizational function and set of process for creating communicated communicating and
delivering values to customers and for managing customer relationship in way that benefits the
organization and its stakeholder is marketing.

5. The face of promotional planning process that focuses on the product or service offering and the form
itself include the capabilities of the form and its ability to develop and implement a successful IMC
program is called internal analysis.

6. Basic use such as symbols rhymes and associations that facilitate the learning and memory process is
called mnemonics.

7. A model of attitude that view and individual’s evaluation of an objective as being a function of the
belief that he or she has towards the objective of various attributes and the importance of these
attributes is called multi attribute ability model.

8. Qualitative research designs to prove the consumers subconscious and discovered deeply rooted
motives of purchasing a product is motivation research.

9. A learning theory that views the probability of a behavior as being dependent on the outcomes of
consequences associated with it is operant conditioning.

10. Advertising agency personnel who gather information that is relevant to clients product or services
can be used in the development of Creative strategy as well as other aspects of IMC campaign are called
as account planner.

11. An individual who helps conceive the ideas of for advertisement and commercial and write the word
for them is called copywriter.

12. An ad agency setup owned and operated by an advertiser that is responsible for planning and
executing the company's advertising program is in house agent.

13. Simplified or basic decision rules that can be used by a consumer to make a purchase choice such as
by the cheapest brand acceptor is called a heuristic.

14. Large external Agencies that offer Integrated Marketing Communication for a world wide bases are
called as super agencies.

15. A method of segmenting a market by dividing customers into group based on their uses loyality or
buying responses to a product or service is behavioristic segmentation.
16. A type of marketing strategy where by a firm chooses to focus its marketing efforts on one particular
market segment is called __________.

17. The complexity of the learned meanings values norms and Customs shared by members of society is
called a culture.

18. Outcomes of product or services that are tangible and can be directly experienced by a consumer
are called as fictional consequences.

19. And approach to the study of human motivation and behaviour pioneered by Sigmund Reed is called
a psychoanalytic theory.

20. And audit of the advertising Agencies efforts in Planning developing and implementing the clients
communication program is called qualitative audit.

Multiple choice questions tick the right answer.

21. A perpetual process in which consumers choose to attend to some stimuli and not others

A selective binding B selective exposure C selective retention D selective attention.

22. A process whereby consumer choose whether or not to make themselves available to media and
message information is

A. selective comprehension B. selective attention C. selective exposure D. selective retention.

23. The method of compensating ad agency where by the agency receives a free based on the cost of
the work is performed MOS plus an agent agreed on amount for profit is

A. incremental payment B. marginal payment C. cost Plus D. none of the above.

24. A type of marketing strategy whereby a form of a product or service to phone number of market
segments and develop separate marketing strategy for each is

A. cluster marketing B. differentiated marketing C. nice marketing D. Exclusive marketing.

25. Maslow theory of need consists of stages psychological needs safety needs social needs Esteem
needs and a self-actualization.

26 a strategy in which advertising and promotional efforts are targeted at the ultimate consumers to
encourage them to purchase the manufacturer's brand is

A. push strategy B. pull strategy C. push strategy D. pullur strategy.

27 psychological consequences of Purchase Decision consequences that are subjective personal and

A. tangible B. tangible C. intangible D intangible.

28 the reinforcement of successive act that lead to a desired behaviour pattern for response is

A. training B. modelling C. shaping D. influencing.

29. The ability of an individual to perceive a stimulus below the level of conscious awareness is termed
as
A. real perception B. perception C. Sab minimal perception D. Subminimal perception.

30. It's all about image sharing is an ad campaign run by which company

A. arena-multimedia B. TCS C. Wipro D. LNT

Fill in the blanks.

1. A method of determining the budget for advertising and promotion where all other budget
areas are covered and remaining money is a table for allocation affordable market.
2. A term commonly used in advertising to describe support media alternative media.
3. A primary version of a commercial whereby a videotape of the frame of story board is produced
along with an audio soundtrack animatics.
4. The ability to generate unique and appropriate ideas that can be used as solution to
communication problem is advertising creativity.
5. Stop measures of a target audiences status concerning response hierarchy variables such as
awareness knowledge image attribute preference intentions or behaviour these measures are
taken at the beginning or an advertising or promotional campaign to determine the degree to
which a target audience must be changed or removed by a professional campaign is benchmark
measures.
6. A method of determining the budget for advertising and promotion by determining the specific
task that have to be performed and estimating the cost of performing them is build up approach
method.
7. A delayed or lagged effect whereby the impact of advertising on sale can occur during a
subsequent time period is called carryover affect.
8. A service which clips competitors advertising from local print media allowing the company to
monitor that type of advertising that are running for to estimate their advertising expenditure is
called clipping service.
9. The practice of either directly or indirectly name in one or more computers in a advertising
message and usually making a comparison on one or more specific attributes or characteristics
is called comparative advertising.
10. In the difference between the total revenue generated by a product or brand and its total
variable cost is called as contribution margin.
11. A document that is specifies the basic elements of the creative strategies such as the basic
problem or issue the ad must address in the advertising and communication objectives target
audience major selling ideas for key benefits to communicate campaign them or appeal and
supportive information or requirements is called as copy platform.
12. A model that identifies two processes by which communication can lead to Persuasion – Central
and peripheral routes is elaboration likelihood model (ELM).
13. A research technique that involves observing for studying consumer in their natural
environment is called ethnographic research.
14. A model of the process by which the advertising works that assumes a consumer must pass
through a sequence of a step from any cell Awareness to eventual action the Steel includes
awareness interest evaluation trial and adoption is called the hierarchy of effects.
 15. An approach to advertising that focuses on the benefits of characteristics that lead a consumer
to purchase a product or service and dramatic elements to emphasize them is called as inherent
drama.
16. Thought that occurred to a message recipient while reading using and or hearing a
communication is called as cognitive responses.
17. The process by which a credible source influences a message recipient is called internalization.
18. Non personal channels of communication that allow a message to be sent to many individuals at
one time is called as mass media.
19. Communications in which one positive attribute or benefits of a product or services are
presented is called as one-sided messages.
20. A message in which both side of the issue are presented in the communication with argument of
a tourist youth the opposite view point is called as refutational appeal.
21. Phenomenon in which the persuasiveness of a message increases over time is
A. delay fact B. Leg guard effect C. Sleeper effect D. Returns an effective
22. Progression by the consumers thought a learn-feel-do hierarchical response is
A. ELM model B. MAM model C. Innovative model D. Standard learning model.
23. A message in which both good and bad points about a product or claim are presented is
A. dual message B. two-sided message C. one sided message D. none of the above
24. The tendency of television or radio commercial to lose its effectiveness when it is seen and or
heard repeatedly is
A. wareout B. wearout C. wereout D. whareout.
25. The study of nature of meaning is
A. Wordonomics B. Semiotics. C. Synonomics D. Symbolism.
26. SCL response model that attempts to show sales response to various level of advertising and
promotional expenditure is
A. Z-shaped responsive B. S-shaped responsive curve C. U-shaped responsive curve D. X-shaped
responsive curve.
27. The theory that arguments represented at the end of the message are considered to be stronger
and therefore are most likely to be remembered is
A. immediate effect B. regency effect C. reticent affect D. none of the above.
28. A Theory that the first information presented in the message will be the most likely to be
remembered is
A. primary effect B. tree effect C. primary effect D. none of the above
29. A determination of what an advertising message will say or communicate to a target audience is
A. creative strategy B. Communication strategy C. Message strategy D. none of the above.
30. The DAGMAR approach was developed by
A. Russell I Glory B. Russel Arnold C. Russell Covey D. Russell Colle

Fill in the blanks-

1. The actual total cost of placing an ad in a particular media vehicle is called absolute cost.
2. Commercial sports purchase from local television station that generally appear during the time
period adjacent to the network program is call adjacencies.
3. The basic or approach used in an advertising message to attract the attention or interest of
consumer and or influence their feeling towards the product service or cause is called
advertising appeal.
4. The main text portion of a print ad is called body copy.
5. A special space rate or discount offered for advertising in two or more periodicals squad
combination rate.
6. A media scheduling strategy where a continuous pattern of advertising is used over the time
span of the ad campaign is called continuity.
7. A headline that is very straightforward and informative in terms of the message it is presenting
and the target audience it is directed towards is direct headline.
8. A media scheduling pattern in which periods of advertising are alternated with periods of no
advertising is called as flighting.
9. An oversize magazine page or cover that is extended and folded over to fit into the publication is
called gatefolds.
10. Words in the leading position off the advertising the word that will be read first or position to
draw most attention is called as headline.
11. Songs about a brand or a company that usually carry the advertising theme and a simple
message are called as jingle.
12. The physical arrangement of various parts of an advertising including the headline subheads
illustrations body copy and any identifying mark is called as layout.
13. The basic of the central theme aur message idea in an advertising campaign is called as major
selling Idea.
14. The specific goal an advertiser has for the media portion of the advertising program is called as
media objectives.
15. The series of decisions involved in the delivery of an advertising message to prospective
purchasers and 9 users of a product or service is media planning.
16. The specific program Publication or promotional piece is used to carry out an ad message is
called as media vehicle.
17. The preaching of a very specialized market through programming aimed at particular target
audience is narrowcasting.
18. And electronic device that automatically creates a household television during including channel
watched number of minutes of weaving and members of the household who watched it is called
as people meter.
19. The number of copies of a magazine distributor to original subscribers is called as primary
circulation.
20. A media scheduling method that combines flighting and continuous scheduling is called a
pulsing.
21. Computation used by media bias to compare the cost-effectiveness of Broadcast program that
divided the cost of commercial time on a program by the audience rate
A. cost per rating point B. Cost rating point C. Costpoint operating D. Point per cost rating.
22. And arrangement where opportunities to advertise in several different type of media offered by
a single company or a partnership of various media providers
A. cross media advertising. B. Crash media advertising C. Cross media advertising D. None of
these.
23. A cost figure used in periodical based on an advertisement placed one inch Deep and one
column wide is
A. One X inch rate B. Rate per inch C. Daily inch rate D. None of the above.
24. The time segment into which a day is divided by radio and television networks and station for
selling advertising time is
A. day parts B. Datetime C. There be D. seconds.
25. The measure that represents the total delivery or weight of media scheduled during a specific
time period is calculated by multiplying the reach of media schedule by the average frequency is
A. GPR’S B. GRP’S C. GSP’R. D none of these.
26. Plans of action for achieving stated media objectives such as which media will be used for
reaching a target audience how the media budget will be allocated and how advertisement will
be scheduled is
A. media scheduling B. Media planning C. Media strategy D. Media mix
27. A term used in advertising industry to refer to music that is prefabricated multi-purpose and
conventional and can be used in commercials when a particular normative effect is described is
A. point music B. Pindrop C. Needledrop D. none of the above
28. A rate change by newspaper in which discounts are available based on Frequency or bulk
purchase of space
A. close rates structure B. One rate structure C. Flexi rate structure D. None of the above
29. And estimate of the number of readers of a magazine in addition to the original subscriber or
purchaser is
A. total rate B. Pass along rate C. Over rate D. None of the above
30. The ability of a medium to reach a specific target audience is
A. Reachability B. Frequency C. Selectivity D. None of the above
31. A series of drawing used to present the feasible plan or layout of a proposed commercial is
A. layout B. Rough sketch C. Story board D. Script
32. Secondary headlines in print ad
A. minus B. Below heads C. Subheads D. None of the above
33. The Times of earrings with television audience measures are taken are called as
A. Sweepstakes B. Sleep time C. Peak time D. Sweeps periods.
34. An add designed to create curiosity and build excitement and interest in a product or brand
without showing it
A. Teeser advertising B. Taeser advertising C. Teaser advertising D. Tesear advertising.
35. An add that Associates the experience of using the advertised brand with a unique set of
psychological characteristics that would not typically be associated with the brand experience to
the same degree without exposure to the advertisement
A. transactional advertising B. transformational advertising C. Transfer advertising D. None of
the above
36. A buying period that take place prior to the upcoming television season when the network sell a
large part of commercial time is
A. prime market B. Prime market C. Upcoming market D. Upfront market
37. A message or action on the scene in a commercial that is narrated for described by a narrator
who is not visible is
A. voice over B. Background music C. Voiceover D. None of the above
 38. A situation where the coverage of the media exceeds the target audience is
A. over coverage B. Overshooting C. Waste coverage D. None of the above
39. The use of a remote-control device to change channels and switch away from commercial is
A. skipping B. Sleeping C. Zapping D. None of the above
40. The number of persons in the primary target audience that the media by will reach and the
number of times is
A. TPR's B. TRP's C. TSR'p D. None of the above

Fill in the blanks.

1. Advertising that is considered with the propagation of ideas and elucidation of social issues of
public importance in a manner that supports the position and interest of the sponsor scald
advocacy advertising.
2. A form of outdoor advertising where the message appears in the sky in the form of penis pulled
by airplanes skywriting and on believes is called aerial advertising.
3. Development of customized promotional program for individual retail accounts by marketers is
called account specific marketing.
4. A basis for targeting market based on consumer website surfing behavior is called behavioral
targeting.
5. A special packaging that provides consumers with extra quality of merchandise at no extra
charge over the regular price are called bonus packs.
6. The combined use of an audio-visual program and a brand to market a product or service is
called branded entertainment.
7. Image related advertising in which company is linked with charities or non-profit organization as
contributing sponsor is called course related marketing.
8. Advertising testing to ensure receivers comprehend the message and to gorge their reaction on
the same are called comprehension and reaction test.
9. The process by which an individual acquires the skills needed to function in the Marketplace as a
consumer is called consumer socialization process.
10. Advertising designed to promote overall Awareness of a company or enhance its image among
our target audience is called as corporate advertising.
11. Running advertisements to remedy the description for misleading done by previous ad is called
as corrective advertising.
12. A measure used in direct marketing to determine the number of Orders and rated relative to the
cost of running the ad is called as cost for order (CPO).
13. A measure used in on attesting of television commercial by various marketing research
companies to know the percentage of us who can remember seeing a particular commercial is
called as day-after-recall score.
14. TV signal delivery system where buy programming is being from satellite to special receiving
dishes mounted in the home or yard is called as direct broadcasting satellite (DBS).
15. TV commercials that are very long ringing from several minutes to an hour is called as
infomercials.
16. A type of sales position where Emphasis is on performing supportive activities and services
rather than generating or taking order is called as missionary sales.
17. Advertising or other sales presentation that praises the item to be solved using subjective
opinion superlatives or exaggerations vaguely and generally stating no specific facts is called
puffery.
18. An advertising effectiveness methodology designed to measure dilation and constriction of the
pupils of the eye in response to stimuli is called as pupillometric.
19. Cash payments made directly to the retailers and wholesalers Salesforce to encourage them to
sell to promote a manufacturer's product is called as push money.
20. Research method design to track the behavior of consumers from the television set to
supermarket checkout counter is called as single source tracking.
21. An advertising sales promotion and motivational communication medium that employees’
useful articles to merchandise imprinted with an advertiser's name message or logo is termed as
specialty advertising.
22. The use of telephone and voice info service to market advertise promote entertain and inform is
termed as tele media.
23. Floor displays Island showcase electronics sign and other form of advertisement that appear in
train for subway stations Airlines terminals and the like are called as terminal posters.
24. Advertising targeted to target audience is exposed to Commercial transportation facilities
including post taxi train Elevators trolleys airplanes etc. is called as transit advertising.
25. A system for pursuing our site information to web user rather than waiting for them to find the
site in their own is called as webcasting.
26. A measure of degree of brain activity that can be used to assess and individuals reaction to an
advertisement
A. better activity B Mehta activity C. Alpha activity D. None of the above
27. The use of telephone and voice Information Service to market advertise promote entertain and
inform consumers is called
A. videotex B. Audiotex C. Adtex D. None of the above
28. An ad on a webpage that may be hot linked to advertiser site is
A. online Ad B. Banner ad C. Scanner add D. Hyper ad
29. Magazine advertisements where the printed area extend to the edge of the page eliminating
any white margin or border around the ad is called
A. Color pages B. Bleed pages C. Full layout page D. None of the above
30. A web-based publication consisting primarily of periodic articles written and provide in reserve
Technology order is
A. Bolg B. Log C. Blog D. None of the above
31. Coupon offer made to consumers as an inducement to repurchase the brand is
A. bounce back coupon B. Rebuy coupon C. Extra by coupon D. Non of the above
32. Image related advertising in which company is linked with charities or not profit organization as
contributing person is
A. Event marketing B. Cause related marketing C. NGO marketing D. None of the above
33. A speech that promotes a commercial transaction is called
A. Sale speech B. Sales speech C. Commercial speech D. None of the above
34. A method of presenting alternative ideas for an ad campaign by having consumer provide their
responses and or reaction to the Creative Concept is called
A. concept testing B. Copy texting C. Rough add testing D. None of the above
35. A method of presenting advertisements by using a panel of consumers who are representative
of the target audience and provide ratings and/or evaluation of adds
A. Consumer groups B. Consumer teams C. Consumer juries D. None of the above
36. Internet advertising placed on the basis of the content of the web page is
A. site ad B. Add in context C. Contextual ad D. portal ad
37. A type of cell position where the primary Emphasis is on generating new business
A. Innovative sales B. Missionary sales C. Creative selling D. Personal selling
38. A term used in personal selling that refers to the sale of additional product and or services to
the same consumer is
A. Multi product sale B. Many product sales C. Across sells D. Cross-sell
39. The use of specific information about individual customers and or prospects to implement more
effective and Efficient market communication is
A. Database marketing B. meta marketing C. viral marketing D. None of the above
40. A process of direct communication between two person or group such as a salesman and a
customer are
A. Dyadic communication B. By lateral communication C. Mass communication D. None of the
above
41. The moral principles and values that govern the actions and decisions of an individual or group
A. Norms be. Rules see. Culture D. Ethics
42. The tendency for evaluations of one attribute or aspect of a stimulus to distort reactions to its
other attributes or properties is
A. Bulwic effect B. Confusion effect C. Misogynic effect D. Halo effect
43. Coupons attracted to a package that can be removed and redeemed at the time of purchase
A. Reddy coupons B. Now coupons C. Instant coupons D. None of the above
44. An ad that appears in a window on your computer screen while you are waiting for a web page
to load is
A. Interstatial B. Internet add. C. Interstitial D. Intersteeil
45. Testing the effectiveness of a TV commercial bye interest test add into actual TV program in
certain test maker is
A. TV test B. Of-air test C. Con-air test D. none of the above
46. Advertisements that follow up basic Global approach all through themes copy and sometimes
even visual elements may be adjusted is
A. cross culture advertising B. Pattern advertising C. Global Advertising D. None of the above
47. A planning configuration of products that occupy a self section in a store that is used to provide
more efficient shelf space utilisation
A. Layout B. Planograms C. Planeograms D. Shelf space savers
48. A medium using the internet to distribute file for downloading into iPods and other MP3 player
is
A. webcasting B. Broadcasting C. Podcasting D. None of the above
49. Unsolicited commercial email is
A. Scam B. Sapm C. Spma D. Spam
50. A promotion whereby consumers submit their names for consideration in the drawing or a
selection of price and winners are determined purely by chance is
A. lottery B. Swipestakes C. Swepstakes D. Sweepstakes
TOURISM & HOSPITALITY

January 2021
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview 6

Recent Trends and Strategies 16

Growth Drivers 20

Opportunities 29

Key Industry Contacts 33

Appendix 35

2
Executive summary
1 Contribution to GDP
above world average
• According to WTTC, India ranked 10th among
185 countries in terms of travel & tourism’s
total contribution to GDP in 2019. During
2019, contribution of travel & tourism to GDP
was 6.8% of the total economy, about Rs.
13,68,100 crore (US$ 194.30 billion).
• In India, the sector’s direct contribution to
GDP is expected to grow by 7.1% per annum
during 2018-28.
2 Creating higher
employment
• In FY20, 39 million jobs were
created in the tourism sector in
India, which was 8.0% of the
total employment in the country.
3 Recognition
• India ranked 34th on the world travel
and tourism index driven by rich natural
and cultural resources.
• The World Economic Forum ranked
India as the 5th best destination on the
Natural Heritage Index in the world.
3
6 New visa reforms
• Electronic tourist authorisations, known
as e-Tourist Visa, launched by the
Government of India, has resulted in
increase in number of tourist visa
issued in the country. The facility was
extended to citizens of 169 countries
1 6 •
as of December 2019.
During 2019, a total of 2,928,303
tourists arrived on e-Tourist Visa,
registering a growth of 23.6%.
5 Increasing visitor
export
2 5 • Contribution of visitor export to total
export is estimated to increase 5.5%
per annum during 2018-2028.
• International tourists' arrival is
expected to reach 30.5 billion by
2028.
3 4 4 Higher investment
• Travel & tourism’s contribution to capital
investment in India is projected to grow 6.7%
per annum during 2018-28.
• Under the Swadesh Darshan scheme, 77
projects have been sanctioned worth Rs.
6,035.70 crore (US$ 863.60 million).
Advantage India

4
Advantage India

1 Diverse attractions 4 Policy support

► India offers geographical ► India offers geographical
diversity, attractive beaches, 30 diversity, attractive beaches, 30
World Heritage SBPM and 25 bio- World Heritage SBPM and 25
geographic zones. bio-geographic zones.
► The country’s big coastline is ► Campaigns such as Swadesh
dotted with several attractive Darshan, a theme-based tourist
beaches. circuit was launched to harness
the tourism industry’s potential.
► The Ministry of Tourism is
promoting Buddhist Circuit to 1 4 ► The Ministry of Tourism has
increase India’s share in global created a policy for development
tourism market. and promotion of caravan and
caravan camping parks.
ADVANTAGE
2 Robust demand INDIA 3 Attractive opportunities
► By 2020, medical tourism ► India has a diverse portfolio of
industry of India is expected to 2 3 niche tourism products - cruises,
touch US$ 9 billion. adventure, medical, wellness,
► During 2019, 10.89 million sports, MICE, eco-tourism, film,
foreign tourists arrived in the rural & religious tourism.
country. ► Post the pandemic crisis, the
► International tourist arrivals are government plans to tap into
expected to reach 30.5 million by regional tourism by opening doors
2028. for South Asian country tourists.
► Prime Minister Mr. Narendra ► Government is providing free loans
Modi urged people to visit 15 to MSMEs to help them deal with
domestic tourist destinations in the crisis and revive the economy,
India by 2022. including the tourism sector.
Source: DPIIT, ICE 360 Survey 2016, Blue Star Investor Presentation August 2018, *BARC India Universe Update July 2018, Bombay Stock Exchange

5
 Market Overview

MARKET OVERVIEW

6
Evolution of the Indian tourism and hospitality sector
Pre-1990
 The National Tourism Policy
was announced in 1982
 The Government formulated
a comprehensive plan in
1988 to promote tourism.
7
1990-2000
 Various states in India
declared tourism as an
industry
 The Government stressed
on private-public
partnership in the sector
 Government policies give
a fillip to the hotel industry.
2000-05
 A national policy on tourism
was announced in 2002,
focusing on developing a
robust infrastructure
 Online travel portals & low-
cost carrier airlines gave a
boost to domestic tourism.
2015 onwards
 The Government has
undertaken various marketing
initiatives to attract tourists
 e-Tourist Visa was launched; a
total of 2.93 million foreign
tourists arrived on the e-
Tourist Visa in 2019
registering a growth of 23.6%
 Travel and tourism sector
accounted for 8.0% of total
employment opportunities in
2019
 In November 2018, India
attained third position in the
world tourism sector after
China and US.
Segments of tourism and hospitality

 Accommodation could be hotels & motels, apartments, camps, guest houses,

lodge, bed & breakfast establishments, house boats, resorts, cabins & hostels. In
Accommodation addition, tourists also require catering facilities, which includes include hotels,
local restaurants, roadside joints, cafeterias & retail outlets serving food &
beverages

 Comprises airline companies, cruise services, railways, car rentals & more. A
Transportation
tourist’s choice of transport would depend on the travel budget, destination, time,
purpose of the tour & convenience to the point of destination

 Another major component of the travel & tourism industry is ‘attractions’ such
Tourism and as theme parks & natural attractions including scenic locations, cultural &
Attractions
hospitality educational attractions, monuments, events & medical, social or professional
causes

 A fragmented sector with several independent travel agents & many online
businesses. They also sell associated products such as insurance, car hire &
Travel agents currency exchange
 Business travel agencies specialise in making travel & accommodation
arrangements for business travellers & promoting conference trades

Tour operators  Offer customised tours, including travel, accommodation & sightseeing

Source: Dun and Bradstreet’s Report on Tourism in India

8
Emerging tourism and hospitality segments

1 Rural tourism 7 Adventure tourism

1 7
• The aim is to develop interest in • A wide range of adventure sports are
heritage and culture; & promote covered under this category with
visits to village settings to specialised packages
experience & live a relaxed & • The activities include mountaineering,
healthy lifestyle. trekking, bungee jumping, mountain
6 biking, river rafting & rock climbing

2
2 Pilgrimage tourism
• One of the biggest contributor to 6 Medical tourism
tourism industry. India being a
• Tourists seek specialised medical

5
religious hub for different cultures,
attract many tourists every year treatments, mainly ayurvedic, spa &
other therapies

3
• The primary purpose is achieving,
promoting or maintaining good health
3 Eco-tourism
4
& a sense of well-being
• Vast variety of flora & fauna in various
states is a major factor behind their
growing popularity as tourist
destinations. 5 Heritage tourism
• Thenmala in Kerala is the 1st planned
• Tourists visit India for its cultural heritage in
ecotourism destination in India.
various cities
4 Luxury tourism • The country’s rich heritage is amply reflected
in the various temples, majestic forts,
The luxury travel market in India is
pleasure gardens, religious monuments,
expected to grow at rate of 12.8% during
museums, art galleries, urban & rural sites
2015-25, the highest in comparison with
any other BRIC country.

Source: Dun and Bradstreet’s Report on Tourism in India

9
Rising contribution to India’s GDP

Direct Contribution of Travel and Tourism to GDP at Real 2017 Total Contribution of Travel and Tourism to GDP at Real 2019
Prices (US$ billion) Prices (US$ billion)

250.00 CAGR 7.23% 600.00 CAGR 7.02%

500.00
200.00

512.00
194.69
400.00
150.00
300.00
100.00

268.29
247.37
200.00

232.01
98.17

219.72
91.27
87.17

50.00 100.00

0.00 0.00
2016 2017 2018 2028F 2016 2017 2018 2019F 2029F

 India was ranked 34th in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum and contributes almost US$
247 billion to the country’s GDP. It is the third-largest foreign exchange earner for the country.
 Prior to the pandemic, the Indian travel and tourism industry was expected to witness an annual growth rate of 6.9% during 2019-2028 to reach
US$ 460 billion, which would be equal to ~9.9% of India’s GDP in 2028.
 In WTTC’s Economic Impact 2019 report, India’s Travel & Tourism GDP contribution grew by 4.9%, which was the third-highest after China and
Philippines. Additionally, the report also highlights that between 2014 and 2019, India witnessed the strongest growth in the number of jobs created
(6.36 million), followed by China (5.47 million) and the Philippines (2.53 million).
 The tourism & hospitality sector’s direct contribution to GDP is expected to reach Rs. 12.68 trillion (US$ 194.69 billion) in 2028. The Federation of
Associations in Indian Tourism and Hospitality (FAITH) Chairman Mr. Nakul Anand, recently spoke at a conference on the India Tourism Vision
Day stating that Indian tourism is estimated to contribute 9-10% to India's GDP on a direct and indirect basis.

Note: CAGR - Compound Annual Growth Rate, E - Estimated, F -Forecast,

Source: World Travel & Tourism Council’s (WTTC’s) Economic Impact 2019

10
Foreign arrivals expected to rise post pandemic

 During 2019, foreign tourist arrivals (FTAs) in India stood at 10.89 Foreign tourists arriving in India (million)
million, achieving a growth rate of 3.20% y-o-y.
 Growth in tourist arrivals has been due to flexible Government
CAGR 7.96%
policies, developed rail & road infrastructure, ease in availability of e- 12.0
Tourist Visa to foreign tourists. In 2019, arrivals through e-Tourist Visa
increased by 23.6% y-o-y to 2.9 million.

10.89
 The Government is working to achieve 1% share in world's

10.55
10.0

10.18
international tourist arrivals by 2020 and 2% share by 2025.
 In 2020*, FTAs in India stood at 2.46 million.

8.80
8.0
 The Covid-19 pandemic has greatly disrupted the Tourism industry.
Considering this scenario, Mr. Rajesh Magow, MakeMyTrip CEO has
pointed out that for a black swan event like Covid-19, the country must
look to build and grow domestic travel as international tourism will take 6.0
some time to recover.
 Amid the relaxation provided by the government, the Indian
Association of Tour Operators (IATO) has urged the government to 4.0
finalise a roadmap for resumption of international flights and facilitate
e-visas and tourist visas.
2.0

2.46
 Subsequently in November end, India introduced a graded relaxation
of its visa and travel restrictions for more categories of foreign
nationals and Indian nationals.
0.0
 Mr. Dipak Deva, Managing Director of destination management firm
2016 2017 2018 2019 2020*
Travel Corporation India (TCI), stated that the inbound business is
estimated to start returning from October 2021 with normalcy levels
being restored only by 2022.

Note: CY - Calendar Year, E- Estimated, T-Target., FTAs - Foreign Tourist Arrivals, CAGR upto 2019, *- until June 2020
Source: Ministry of Tourism

11
Domestic consumers to lead growth

Share of tourists by expenditure (2019) Expected share of tourists by expenditure (2028F)

11.15%
17%
Domestic spending Domestic spending

Foreign visitor spending Foreign visitor spending

83% 88.85%

 Domestic travel revenue is estimated at US$ 215.38 billion in 2019 and is anticipated to further increase to US$ 405.8 billion by 2028F.

 While the pandemic brought the tourism industry to a halt, the government is at the moment trying to begin with reviving domestic tourism.

 On January 26, 2021, Maharashtra Chief Minister Mr. Uddhav Thackeray inaugurated Balasaheb Thackeray Gorewada International Zoological
Park in Nagpur. It is India’s largest zoological park spread over 564 hectares and expected to attract ~2.5 million tourists a year.

Note: F- Forecasted
Source: World Travel & Tourism Council’s Economic Impact 2019, News Article

12
Rise in foreign exchange

 Tourism is an important source of foreign exchange in India Foreign Exchange Earnings from tourism in India
similar to many other countries. (US$ billion)

 During 2019, India earned foreign exchange of US$ 29.96 billion

35.0
from tourism, recording a y-o-y growth of 4.80%. Foreign
exchange earnings (FEEs) from tourism in India witnessed
growth at a CAGR of 8.96% between 2007 and 2019. 30.0

29.96
 In 2020*, India earned US$ 6.15 billion in foreign exchange of

28.59
27.69
from tourism. 25.0

23.15
20.0

15.0

10.0

5.0

6.15
0.0

2020*
2016

2017

2018

2019
Note: FEE - Foreign Exchange Earnings, *- until March 2020
Source: Ministry of Tourism, Economic Times

13
Rising revenues from leisure and business segments

Segment-wise revenue share (2019) Expected segment-wise revenue share (2028F)

6.00% 5.45%
Leisure Spending Leisure spending

Business spending
Business Spending
94.00% 94.55%

 Share of revenue from leisure travel to total tourism stood around 94.8% in 2019.

 Leisure travel spending reached US$ 234.16 billion in 2019 and is expected to reach US$ 432.3 billion by 2028F.

 Business travel revenue was US$ 12.84 billion in 2019 and is projected to increase to US$ 24.4 billion by 2028F.

Note: F-Forecasted
Source: World Travel & Tourism Council’s (WTTC’s) Economic Impact 2019

14
Major companies across segments

Revenue
Company Segment Other major players
(US$ millions)

675
Online booking 486 512 Yatra.com, cleartrip.com

FY18 FY19 FY20

658 652
Hotel 410 ITC, Oberoi, Marriott

FY18 FY19 FY20

1,771

Tour operators 1,042 978 Raj Travels, Kesari Tours

FY18 FY19 FY20

Source: Respective company website

15
 Recent Trends and Strategies

RECENT TRENDS AND STRATEGIES

16
Notable trends in the tourism industry in India
1 Online travel operators
• Over 70% of air tickets are now
being booked online in the country.
• Several online travel & tour
operators have emerged in India
and are customized options to
consumers.
• In December 2020, Thomas Cook
India, along with its arm SOTC,
collaborated with WelcomHeritage
Hotels to introduce holiday
experiences across India.
2 Wellness tourism/
Staycation
• The widespread practice of Ayurveda,
yoga, siddha and naturopathy
complemented with nation’s spiritual
philosophy makes India a famous
wellness destination. Staycation is
also seen as an emerging trend were
people stay at luxurious hotels to
revive themselves of stress in a
peaceful getaway.
Source: Incredible India, Economic Times, News sources
17
5
1 •
4
2
3 •
3 Cruises
• Government of India has estimated that India would
emerge with a market size of 1.2 million cruise visitors
by 2030-31. The Government is planning to set up five
cruise terminals in the country and increase cruise
ships to 1,000.
• Zen cruises launched its premiere cruise line, Jalesh,
and started its cruise service in India in April 2019.
• In November 2019, Chipsan Aviation introduced
helicopter services from Willingdon Island, Cochin Port.
5 Camping sites
• Promotion of camping sites have been
encouraged with adequate
acknowledgement of its adverse effects on
the environment.
Besides providing unique rewarding
experiences, responsible conduct of
camping can be a major source of
economic opportunity in remote areas as
well as an instrument of conservation.
• The Ministry of Tourism has created a
policy for development and promotion of
caravan and caravan camping parks.
4 Adventure
Adventure tourism is one of the most
popular segments of tourism industry.
Owing to India’s enormous geo-physical
diversity, it has progressed well over the
years. Moreover, the Government has
recognised Adventure tourism as a niche
tourism product to attract tourists with
specific interest.
• Part of India’s tourism policy, almost
every state has definite programme to
identify & promote Adventure tourism.
• On January 25, 2021, Union Tourism and
Culture Minister Mr. Prahlad Singh Patel
announced plan to develop an
international-level infrastructure in Kargil
(Ladakh) to promote adventure tourism
and winter sports.
Strategies adopted… (1/3)
1 2
PROMOTION OF DOMESTIC TOURISM
 Mr. Rupinder Brar, Additional
Director General, Ministry of Tourism
while speaking at a session on
‘Future of Travel, Hospitality and
Tourism Industry and The Way
Forward’ organized by FICCI
highlighted that while the revival of
international tourism would take
some time, domestic tourism will
have the focus.
 In line with this strategy, the
government has announced tourism
projects in various states and have
issued various guidelines to ensure
people’s safety.
Source: Make in India, Company Websites, Ministry of Tourism, KPMG - Expedition 3.0, VC Circle, News sources
18
3
MULTIPLE CHANNELS SPIRITUAL TOURISM
 Players are opting for many  India has long been known as the
channels to maximise sales and seat of spiritualism and India’s
cosmopolitan nature is best
ensure convenience for their
reflected across its pilgrim centres.
customers. For example, Thomas
 India has been recognised as a
Cook & Kuoni India launched their
destination for spiritual tourism for
online portal to compete with domestic and international tourists.
others.
 As spiritual tourism accounted for
 On the other hand, ~60% of the total domestic tourism
in 2019, IHCL (Tata Group’s Indian
makemytrip.com is planning to go
Hotel Company Ltd.) —a leading
for the offline channel to
hotel group—is planning to expand
complement its existing portal and its operations to cater to the
has already launched a mobile app demand in key spiritual
for maximising sales. destinations.
Strategies adopted (2/3)

4 BRANDING

 The launch of several branding and marketing initiatives by the Government of India like Incredible
India and Athiti Devo Bhava provides a focused impetus to growth.

 The Government has launched Incredible India 2.0 campaign to market specific promotional plans.

DATA ANALYTICS AND ARTIFICIAL INTELLIGENCE

5  Companies have started using data analytics to create a 360-degree profile of their customers.

 Makemytrip have started using AI powered chatbots. 25% of its post-sales requests are now
serviced by chatbots.

DEKHOAPNADESH WEBINAR

 The Ministry of Tourism launched DekhoApnaDesh webinar in April 2020 to provide information on
6 the many destinations and the sheer depth and expanse of the culture and heritage of Incredible
India.
 Webinar is available in the public domain along with Ministry’s social media handles-
IncredibleIndia on Instagram and Facebook.
• Until January 23, 2020, 73 webinars have been conducted under the series.

Note: SOPs - Standard Operating Procedures, B&Bs - Bed and Breakfasts

Source: PIB

19
Strategies adopted (3/3)

7 SAATHI INITIATIVE

 The Ministry of Tourism developed an initiative called SAATHI (System for Assessment,
Awareness & Training for Hospitality Industry) by partnering with the Quality Council of India
(QCI) in October 2020.

 The initiative will effectively implement guidelines/SOPs issued with reference to COVID-19 for
safe operations of hotels, restaurants, B&Bs and other units.

M-VISA
8  Indian Government has also released a fresh category of visa, the medical visa or M-visa, to
encourage medical tourism in India.

ONE STOP SOLUTION

 Players are trying to ensure convenience for their customers by providing all services available on
9 a single portal. For example, makemytrip.com and a host of other website provide a
comprehensive basket of offerings which include outbound & inbound travel for leisure and
business trips, hotel and car booking, holiday packages within India and abroad, etc.

Note: SOPs - Standard Operating Procedures, B&Bs - Bed and Breakfasts

Source: PIB

20
 Growth Drivers

GROWTH DRIVERS

21
Growth drivers for the tourism market

2 INFRASTRUCTURE 3 GROWING DEMAND

 More than half of the Ministry of Tourism’s budget
is channelised for funding the development of
destinations, circuits, mega projects as well as
rural tourism infrastructure projects.
 Tourism Ministry is currently developing several
theme-based tourist circuits under Swadesh
Darshan Scheme to promote tourism.
 Domestic expenditure on tourism is expected to
rise due to the growing income of households.
 Several niche offerings such as medical tourism &
eco tourism are expected to create more demand.
 By 2029, India’s tourism sector is expected to reach
Rs. 35 trillion (US$ 488 billion) with a growth of
6.7% and accounting for 9.2% of the total economy.

1 RISING FDI 4 POLICY SUPPORT

 The hotel & tourism sector received
 A web based Public Service Delivery
cumulative FDI inflow of US$ 15.57
System (PSDS) had been launched by
billion between April 2000 and
the Ministry of Tourism to enable all the
September 2020.
applicants seeking approval for hotel
 Carlson group currently has 94
projects and track their applications
operating hotels and is planning to
online on a real time basis.
add about 30 more hotels by end of
2023.
 Hospitality majors are entering into
2 3  The Government will develop 17 iconic
tourist sites in India into world-class
destinations as conveyed in the Union
tie-ups to penetrate deeper into the
Budget 2019-20.
market. Taj & Shangri-La entered
into a strategic alliance.

1 4

Source: Make in India, DPIIT

22
Rise in income and changing demographics boosting demand

 Rising income mean a steady growth in the ability to access GDP Per Capita at Current Prices (US$)
healthcare & related services

 India’s GDP per capita at current prices was US$ 2,171.64 in 3,500 CAGR 7.79%
2019. It is expected to reach US$ 3,209.67 by 2024.

3,209.67
3,000

2,965.51
2,737.15
2,500

2,529.34
2,338.12
2,171.64
2,000

2,037.69
2,014.01
1,761.63
1,639.69
1,500

1,610.36
1,485.60
1,481.56
1,000

500

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024
Source: International Monetary Fund, World Economic Outlook Database, April 2019

23
Increasing spending on tourism

 Domestic expenditure on tourism has grown significantly.

Domestic Expenditure on Tourism* (US$ billion)
 It is expected to reach US$ 405.84 billion by 2028 from being at US$
199.63 billion in 2018.
CAGR 7.29%
450.00
 As the lockdown restrictions are now relaxed, many people look
forward to revive themselves with short vacations. Holiday-goers will 400.00

405.84
now prefer private hotel rooms and vacation homes to feel secure
during their trips. 350.00
 To cater to such needs, Marriott International introduced staycation
300.00
offers were guests can choose from a host of curated experiences,
within the hotel.
250.00
 Similarly, IHG Hotels & Resorts also introduced attractive staycation
packages during Diwali across its various chain hotels. 200.00

199.63
186.03
 Oberoi hotels have also introduced staycation packages The exciting

179.33
150.00
offer includes accommodation with flexible check in and check out
timings, daily breakfast, and additional savings on food, beverages
100.00
and laundry services
50.00

0.00
2016 2017 2018 2028F

Note: F - Forecast, *at real 2017 prices converted at USD = Rs. 65.12
Source: WTTC - Travel & Tourism Economic Impact 2019

24
Tourism policy and initiatives give a boost to the industry… (1/3)

Swadesh Darshan
 Based on specific themes, Government has identified 15 circuits which include Krishna Circuit, Buddhist Circuit, Himalayan Circuit,
Northeast Circuit, Coastal Circuit, wildlife circuit and tribal circuit.

 So far, 77 projects for an amount Rs. 6,035.70 crore (US$ 836.60 million) have been sanctioned under the Swadesh Darshan Scheme since
FY15.

 Under Budget 2020-21, the Government has allotted Rs. 1,200 crore (US$ 171.70 million) for the development of tourist circuits under
Swadesh Darshan for entire Northeast.

PRASHAD
 National Mission on Pilgrimage Rejuvenation & Spiritual Augmentation was implemented by the Ministry for enhancing the facilities and
infrastructure provided at pilgrimage centres across the country.
 Under Budget 2020-21, the Government has allocated Rs. 207.55 crore (US$ 29.70 million) for the development of tourist circuits under
PRASHAD.
 As of now, a total of 28 projects have been sanctioned for an amount of Rs. 840.02 crore (US$ 120.19 million) under this scheme.
 On November 4, 2020, the Union Minister of State (IC) for Tourism & Culture Shri. Prahlad Singh Patel inaugurated the “Tourist Facilitation
Centre” facility constructed under the project “Development of Guruvayur, Kerala” (under the PRASHAD Scheme of the Ministry of Tourism)

NIDHI
 The Ministry of Tourism launched the NIDHI portal to understand the geographical spread of the hospitality sector, its size, structure and
existing capacity in the country.
 NIDHI will serve as a common data repository for the Ministry of Tourism, State Departments of Tourism and Industry; this will enable the
Central and State Governments to deliver better support and services including policies and strategies for the tourism sector.
 As of December 31, 2020, 34,399 accommodation units have been registered on the portal.
Note: National Mission on Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive
Source: Union Budget

25
Tourism policy and initiatives give a boost to the industry… (2/3)

National Tourism Policy 2015

 Formulation of National Tourism Policy 2015 was initiated to encourage Indian citizens to explore their own country as well as position the
country as a ‘Must See’ destination for global travellers.
 Under Union Budget 2020-21, Rs. 590 crore (US$ 84.42 million) has been allocated for promotion and publicity of various programmes and
schemes of the Tourism Ministry.

Tourist Police
 In March 2018, Ministry of Tourism initiated State Governments/Union Territory (UT) administrations of India to deploy tourist police.

 In November 2019, Nagaland deployed a separate tourist police.

Tax Incentives
 An investment-linked deduction under Section 35 AD of the Income Tax Act is in place for establishing new hotels under 2-star category and
above across India, thus permitting a 100% deduction in respect of the whole or any expenditure of capital nature.

 In 2019, the Government reduced GST on hotel rooms with tariffs of Rs. 1,001 (US$ 14.32) to Rs. 7,500 (US$ 107.31) per night to 12% and
those above Rs. 7,501 (US$ 107.32) to 18% to increase India’s competitiveness as a tourism destination.

Safety and Security Initiatives

 Ministry of Tourism launched a 24x7 toll free multilingual tourist information helpline in 12 languages to provide information related to travel
in India.

 Ministry of Tourism issued guidelines on Safety and Security for States/UTs along with tips for travelers.

 Launched social media awareness campaign in the spirit of ‘Atithidevo Bhava’ to develop importance of good conduct and behavior towards
tourists.

 Initiative to conduct constant dialogue with States/UTs for drawing ideas for development and promote tourism.
Source: World Travel & Tourism Council, Union Budget 2020 - 21

26
Tourism policy and initiatives give a boost to the industry… (3/3)

Incentives from Ministry of Tourism

 Assistance in large revenue-generating projects.

 Support to public private partnerships (PPP) in infrastructure development such as viability gap funding.

 Under budget 2019-20, Government introduced a Tax Refund for Tourists (TRT) scheme similar to countries like Singapore to encourage
tourists to spend more in India and boost tourism.

Special Boards
 The Ministry has set up Hospitality Development & Promotion Board to monitor and facilitate hotel project clearances/approvals.

Bharat Darshan Tourist Train

• The Indian Railway Catering and Tourism Corporation (IRCTC) runs a series of Bharat Darshan tourist trains aimed at taking people to
various pilgrimages across the country.

E-tourist Visa

 The number of tourists arriving on e-Tourist Visa grew 23.6% y-o-y to 2.36 million in 2019.

 Foreigners travelling to India on e-Tourist Visa will receive a pre-activated BSNL SIM card loaded with talk-time and data.

Jail Tourism Initiative

 On January 26, 2021, the Maharashtra state prison department launched a jail tourism initiative.

 Under this initiative, tourists can visit the 150-year-old Yerawada Central Prison in Pune and experience its historical significance.

 Considering the prison security and COVID-related safety concerns, only 50 people will be allowed to visit the prison everyday.

Source: World Travel & Tourism Council, Union Budget 2020 - 21

27
Continued growth in investments in the tourism sector

 Hilton plans to add 18 hotels pan India by 2021, along with 15 operational Capital investments in the tourism sector (US$ billion)
hotels under its brands—Hampton, Hilton Garden Inn, Conrad, Hilton Hotels
& Resorts and DoubleTree by Hilton. On October 22, 2020, Hilton launched
its first DoubleTree by Hilton brand in Jaipur, Rajasthan. 120.0
CAGR 5.33%
 As of April 2019, Radisson Hotel Group, a global hospitality firm, had plans 100.0
to double its portfolio of hotel in India to 200 by 2022.

95.3
80.0
 OYO Rooms is planning to invest about Rs. 1,400 crore (US$ 200 million) 60.0
towards capital expenditure, technology and leadership in its Indian and
South Asia business. 40.0

47.8
36.6
35.0

34.6
33.7

33.0
 Indian Hotels Company (IHCL) expanded its portfolio by adding 24 hotels

32.2
31.3
20.0

28.9
23.8
with an inventory of over 2,800 keys in FY20. 0.0
 Amatra Hotels and Resorts, a wholly-owned subsidiary of Amatra Group
Holdings, and SDN BHD Malaysia plans to increase the number of keys in
its Indian properties to 250 by the end of March 2020.
 In October 2020, hospitality firm Sarovar Hotels and Resorts announced its
plans to add over 15 properties, mainly in Tier-II and III cities in India, by Collective Government spending on tourism (US$ billion)
end-2021, as part of its expansion plans.
 In November 2020, Taj Group partnered with real estate company Ambuja 6.00
CAGR 7.91%
Neotia Group to launch three new hotels—two in Kolkata and one in Patna.

5.65
5.00
 In January 2021, the Fern Hotels & Resorts India announced plan to open 8
new hotels in the first half of 2021. The new hotels will be opening in Gujarat, 4.00
Maharashtra, Madhya Pradesh and Andhra Pradesh.
3.00
 In January 2021, the Ministry of Tourism Maharashtra signed MoUs with

2.89
2.61
various hospitality firms worth Rs. 2,905 crore (397.70 million) to develop 2.00

2.31
tourism in the state and create 6,754 jobs in the next five years.

1.97
1.88
1.76
1.67
1.00

0.00
2012 2013 2014 2015 2016 2017 2018E 2028F
Note: E - Estimated, F- Forecast
Source: World Travel & Tourism Council’s Economic Impact 2018, 2017, News Article

28
Growth in arrivals through e-tourist visa

 In November 2014, the Government introduced e-Tourist Visa to Growth in arrivals through e-Tourist visa
facilitate arrival of nationals from 43 countries. As of December
2019, the facility was extended to 169 countries.
CAGR 39.44%
3,500,000
 The e-Tourist Visa is part of e-Visa facility which includes e-
Business Visa, e-Conference Visa, e-Medical Visa and e-Medical
Attendant Visa. 3,000,000

 Tourist arrivals through e-Tourist Visa increased at a CAGR of

39.44% during 2016 -19 to reach 2.93 million tourists in 2019. 2,500,000

 Tourist arrivals through e-Visa stood at 0.83 million in 2020*.

2,000,000

1,500,000

1,000,000

1,080,000

1,697,000

2,369,941

2,928,303

837,721
500,000

-
2016 2017 2018 2019 2020*

Note: P- Provisional, *-Until March 2020

Source: Ministry of Tourism

29
 Opportunities

OPPORTUNITIES

30
Niche segments offer good opportunities
Medical tourism
 The presence of world-class
hospitals & skilled medical
professionals makes India a
preferred destination for
medical tourism.
 India’s earning from medical
tourism could exceed US$ 9
billion by 2020.
 Tour operators are teaming up
with hospitals to tap this
market.
 Medical tourism to benefit a lot
post COVID-19 pandemic
owing to rising recognition of
the country for being safe and
for dealing with post Corona
impacts.
Source: Ministry of Tourism, BMI
31
Cruise tourism
 Cruise is one of the most
dynamic & fastest-growing
segments in the global leisure
industry.
 Government of India has
estimated that India would
emerge with a market size of
1.2 million cruise visitors by
2030-31.
 Moreover, India is looking to
take advantage of its 7,500 km
coastline to tap growth
potential of the cruise tourism
segment.
 The cruise terminal in Mumbai
has been allocated Rs. 1,000
crore (US$ 155.55 million).
 India signed a deal of worth
US$ 950 million with Russia for
two upgraded cruises. These
ships are expected to be
delivered by 2022.
Rural tourism
 The potential for development
of rural tourism in India is high
as most of its population reside
in rural areas.
 This can benefit the local
community economically and
socially and facilitate
interaction between tourists
and locals for a mutually
enriching experience.
Ecotourism
 India is often termed as the
hotspot for bio-diversity and its
rich natural heritage is
unparalleled in many ways.
 Such valuable resource base
gives impetus for the practice
of variety of alternate tourism
forms & many of which are
already in existence.
 For example: National parks,
wildlife sanctuaries and
biosphere reserves.
 In January 2021, Old Goa-
based Indian Council of
Agricultural Research-Central
Coastal Agricultural Research
Institute (ICAR-CCARI)
launched the agro-eco tourism
(AET) module as a potential
alternative to regular tourism.
Niche segments offer good opportunities

Medical tourism
 The presence of world-class hospitals & skilled medical professionals makes India a preferred destination for medical tourism.
 India’s earning from medical tourism could exceed US$ 9 billion by 2020.
 Tour operators are teaming up with hospitals to tap this market.
 Medical tourism to benefit a lot post COVID-19 pandemic owing to rising recognition of the country for being safe and for dealing with
post Corona impacts

Cruise tourism
 Cruise is one of the most dynamic & fastest-growing segments in the global leisure industry.
 Government of India has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31.
 Moreover, India is looking to take advantage of its 7,500 km coastline to tap growth potential of the cruise tourism segment.
 The cruise terminal in Mumbai has been allocated Rs. 1,000 crore (US$ 155.55 million).
 India signed a deal of worth US$ 950 million with Russia for two upgraded cruises. These ships are expected to be delivered by 2022.

Rural tourism
 The potential for development of rural tourism in India is high as most of its population reside in rural areas.
 This can benefit the local community economically and socially and facilitate interaction between tourists and locals for a mutually
enriching experience.

Eco tourism
 India is often termed as the hotspot for bio-diversity and its rich natural heritage is unparalleled in many ways.
 Such valuable resource base gives impetus for the practice of variety of alternate tourism forms & many of which are already in
existence.
 For example: National parks, wildlife sanctuaries and biosphere reserves.
 In January 2021, Old Goa-based Indian Council of Agricultural Research-Central Coastal Agricultural Research Institute (ICAR-CCARI)
launched the agro-eco tourism (AET) module as a potential alternative to regular tourism.
Source: Ministry of Tourism, BMI

32
Leading states/UTs in terms of tourists

Uttar Pradesh - Attracted 288.7 million tourists (14.14%) in 2018

Domestic Tourists: 285.07 million

Foreign Tourists: 3.78 million
Maharashtra - Attracted 124.27 million
tourists (7.40%) in 2018 Major attractions - Taj Mahal, Agra Fort, Fatehpur Sikri and Sarnath

Domestic Tourists: 119.19 million

Foreign Tourists: 5.08 million

Major attractions - Ajanta and Ellora

Caves, Shirdi, Ashtavinayak and Matheran

Andhra Pradesh - Attracted 195

million tourists (9.87%) in 2018

Domestic Tourists: 194.76 million

Foreign Tourists: 0.27 million
Karnataka - Attracted 214.50 million
tourists (10.75%) in 2018

Domestic Tourists: 214.30million

Foreign Tourists: 0.50 million
Major attractions - Mysore Palace,
Hampi, Coorg, and Jog falls
Tamil Nadu - Attracted 391.97 million tourists (20.84%) in 2018
Domestic Tourists: 385.90 million
Foreign Tourists: 6.07 million

Major attractions - Meenakshi Temple, Brihadeeswarar Temple,

Yelagiri Hills, Hogenakkal Falls and Vivekananda Memorial

Source: Ministry of Tourism

33
Airlines industry set to fly higher

1
Make in India
 Under the Make in India initiative, the central Government approved the policy giving preference to domestically produced steel and
iron products for Government procurement in May 2017.

2
Special Economic Zones (SEZs)
 The Government approved a significant number of SEZs across the country for the engineering sector.
 Delhi Mumbai Industrial Corridor (DMIC) is being developed across 7 states and is expected to bolster the sector.

3
Focus on power generation and infrastructure
 Governmental infrastructure projects such as Golden Quadrilateral and the North-South and East-West corridors fuelled growth in the
engineering sector.

4
Tariffs and custom duties
 The Government has eliminated tariff protection on capital goods.
 It has reduced custom duties on a range of engineering equipment.

5
Higher passenger traffic
 In FY19, domestic air traffic and International air traffic in India increased 14.1% and 3.4% y-o-y, respectively. By 2020-21,
passenger traffic at Indian airports is expected to increase to 450 million people.
Source: World Travel & Tourism Council

34
Key Industry Contacts

35
Key industry contacts
Agency
Federation of Hotel & Restaurant
Associations of India (FHRAI)
Hotel Association of India (HAI)
36
Contact Information
B-82, 8th Floor, Himalaya House,
23, Kasturba Gandhi Marg,
New Delhi - 110001
Phone: 91-11- 40780780
Fax: 91-11- 40780777
E-mail: fhrai@fhrai.com
Website: https://www.fhrai.com/
B 212-214, Som Dutt Chamber-I,
Bhikaji Cama Place, New Delhi - 110 066
Phone: 91-11-2617 1110/14
Fax: 91-11-2617 1115
E-mail: info@hotelassociationofindia.com
hai@hotelassociationofindia.com
Website: http://www.hotelassociationofindia.com/
Appendix

37
Glossary

 Direct contribution: Spending on accommodation, transportation, attractions and entertainment

 Indirect contribution: Travel and tourism investment spending, and Government collective travel and tourism spending

 Induced contribution: Spending of direct and indirect employees

 GOI: Government of India

 CAGR: Compound Annual Growth Rate

 Rs.: Indian Rupee

 US$: US Dollar

 Wherever applicable, numbers have been rounded off to the nearest whole number

38
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33

2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 73.51 2021* 73.25

Note: As of January 2021

Source: Reserve Bank of India, Average for the year

39
Disclaimer

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40
 01

An Introduction to Integrated
Marketing Communications

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 The Role of Marketing

Advertising & Nonprofit

Promotion Organizations
Inform customers of Solicit donations
a product or service
Offer intangible
Convince them of its social and
ability to satisfy their psychological
wants or needs satisfactions
Help develop and
sustain relationships

1-2
 The Marketing Mix

• The Four Ps
• Product
• Price
• Place
• Promotion

1-3
Building Brands in a Recession

Consumers

Spend less money

Carefully scrutinize purchases
Rethink brand loyalties
Willing to trade off or down
More price sensitive
More value conscious

1-4
 Building Brands in a Recession

Companies

Reduce advertising budgets

Balance discounts/promos w/brand image
Must overcome consumer distrust
Change product marketing focus
Increase online social presence
Look for new ways to remain relevant

1-5
 Advertising Classifications

National

Retail / Local

Primary / Selective Demand

Consumers

Business-to-Business

Professional

Trade
Organizations
1-6
 Forms of Direct Marketing

Direct
Direct Mail Catalogs
Response Ads

Telemarketing Direct Selling

Database Shopping Internet

Management Channels Sales

1-7
 Interactive Marketing

• Interactive media
• Internet
• Kiosks
• Interactive television
• Cell phones
• Other mobile devices

1-8
 Sales Promotion

Marketing activities that provide

extra value or incentives to the…

Sales Ultimate
Force Consumer
Retailers

1-9
 Publicity

A news story,
editorial, or High credibility and
announcement to low cost
a mass audience
Not directly paid for
or run under
identified sponsor

Is sometimes Not always under

unfavorable company control

1-10
 Public Relations

• Management function
• Evaluates public attitudes
• Identifies items of public interest
• Executes a program of action to earn
public understanding and acceptance

• Primary objectives
• Establish and maintain a positive image
of the company among various publics

1-11
 Personal Selling

• Person-to-person communication
• A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea
1-12
 Elements of a Marketing Plan

Detailed situation analysis

Specific marketing objectives

Marketing strategy and program

Program for implementing the strategy

Process for monitoring & evaluating performance

1-13
Promotional Program Situational Analysis

Internal External

Firm’s promotional Customer analysis

organization/capabilities Competitive analysis
Review of previous Environmental analysis
programs and results
Assess firm/brand
image
Assess strengths and
weaknesses of product
or service

1-14
Monitoring, Evaluation, Control

Basic Goals

Determine how well the program

is doing, and why
Problem correction
Continual management feedback
Input for future promotions/strategies

1-15
• The Role of IMC in the
Marketing Process
Marketing & Promotions Process Model

2-2
Marketing Strategy and Analysis

Strategic Marketing Plan

Target
Opportunity Competitive
Market
Analysis Analysis
Selection

2-3
The Target Marketing Process

Identify markets with unfulfilled needs

Determine market segmentation
Select a market to target
Position through marketing strategies

2-4
 Target Market Identification

Isolate Consumers With Similar…

Lifestyles Social class

Geographic
Economic status Age
location

Marital status Needs

2-5
 Bases for Market Segmentation

Demographic Geographic Socioeconomic

Gender Region Income
Age City size Education
Race Metropolitan area Occupation
Life stage Density
Birth era
Household size Psychographic
Residence tenure Personality
Marital status Values/Lifestyle

2-6
Positioning Strategies

Attributes and Benefits

Price/Quality
Use/Application
Product Class
Product Users
Competitors
Cultural Symbols

2-7
 The Marketing Planning Program

Product Distribution
Decisions Channels

Promotional Price
Strategy Decisions

2-8
 Branding Goals

Develop & Build &

Build & enhance foster
maintain attitudes relationships
brand toward the between the
awareness company, consumer
and interest product, or and the
service brand

2-9
 Branding and Packaging Decisions

BRANDING PACKAGING

Brand Advertising Has become Often the

name creates increasingly customers’
commun- and important first
icates maintains exposure
attributes brand to product
and equity
meaning

2-10
 Pricing Decisions

Factors the firm What consumers

must consider give up to buy a
product or service

Costs Time

Demand Mental activity

Competition Behavioral effort

Perceived value

2-11
 Channels and Image

• Channels can impact communication

objectives
• Image
• Store displays
• Point-of-purchase merchandising
• Shelf footage

2-12
 Types of Channels

• Direct
• Driven by direct-response ads,
telemarketing, the Internet
• Often used when selling expensive and
complex products

• Indirect
• Network of wholesalers and/or retailers

2-13
 c3

• Organizing for Advertising and

Promotion: The Role of Ad Agencies
and Other Marketing Communication
Organizations
Participants in the IMC Process

3-2
Advertising Dept. Under a Centralized System

President

Research
and Human
Production Finance Marketing
develop- resources
ment

Marketing Product
Advertising Sales
research planning

3-3
 Decentralized Advertising System

Corporate

Production Finance Marketing R&D Human

Resources

Sales Product Marketing

Management services

Brand Advertising Marketing

Manager Dept Research

Ad agency
Sales promotion
Brand
Manager Package design

Ad agency Merchandising

3-4
 Full-Service Agencies

Planning Performing
Full range of advertising research
marketing
communication Creating
Selecting media
advertising
and promotion
services Producing
advertising

Strategic market Interactive

planning capabilities
Nonadvertising
services Sales
Package design
promotions

Direct Public relations

marketing and publicity

3-5
 Agency Services

Account Marketing Creative Mgmt &

Services Services Services Finance

The link Research Creation, Accounting

between department execution
agency and of ads Finance
client May include
account Copywriter Human
Managed planners artists, resources
by the other New
account Media dept. specialists
obtains business
executive generation
media
space, time

3-6
 Creative Boutiques

Creative Provide only

Boutiques creative services

May subcontract from

full-service agencies

Strength is turning out

creative work quickly

3-7
 Media Buying

Media
Specialize in buying media,
Specialist
especially broadcast time
Companies

Agencies and clients develop

media strategy

Media buying organizations

implement strategies, and
buy time and space

3-8
Agency Compensation Methods

Commissions from media

Fee, cost, and incentive-based systems

Percentage charges

3-9
 Evaluating Agencies

Financial Audit Qualitative Audit

Verify costs, expenses Planning

Personnel hours billed Program development

Payments to media Implementation

Payments to suppliers Results achieved

3-10
Direct Marketing Agency Activities

Direct-Marketing Agency Services

Database
Media services
management

Direct mail Creative capabilities

Research Production

3-11
Sales Promotion Agencies

Promotional planning

Creative research

Tie-in coordination

Fulfillment

Premium design and

manufacturing

Catalog production

Contest/sweepstakes
management
3-12
Functions Performed by Public Relations Firms

Strategy Public Special

development affairs events

Generating News releases, Managing

publicity communication crisis

Coordination
Lobbying Research w/promotional
areas

3-13
Functions Performed by Interactive Agencies

Interactive Media Creation

Websites
Banner ads
Search engine optimization
Mobile marketing
Social media campaigns
Digital media

3-14
 Collateral Services

• Typical collateral services

• Marketing research
• Package design
• Consultants
• Photographers
• Printers
• Video production
• Event marketing

3-15
CB & IMC CHAP - 4
 Consumer Decision Making

Decision Stage Psychological Process

Problem recognition Motivation

Information search Perception

Alternative evaluation Attitude formation

Purchase decision Integration

Post-purchase evaluation Learning

4-2
 Sources of Problem Recognition

New Needs
Out of Stock Dissatisfaction
or Wants

Related Products, Market-Induced New

Purchases Recognition Products

4-3
Maslow’s Hierarchy of Needs

Self-
actualization
needs
(self-development
and realization)

Esteem needs
(self-esteem,
recognition, status)

Social needs
(sense of belonging, love)

Safety needs
(security, protection)

Physiological needs
(hunger, thirst)

4-4
The Perception Process

Receive

Select

Organize

Interpret

4-5
 What is a sensation?

Taste Hearing
Immediate,
direct response
of the senses
Smell Touch

Sight

4-6
The Selective Perception Process

Selective Exposure

Selective Attention

Selective Comprehension

Selective Retention

4-7
 Evaluation of Alternatives

All Available Brands

Brand A Brand B Brand C Brand D Brand E

Brand F Brand G Brand H Brand I Brand J

Brand K Brand L Brand M Brand N Brand O

Evoked Set of Brands

Brand B Brand E

Brand F Brand I

Brand M
4-8
Two Forms of Evaluation Criteria

Evaluative Criteria

Objective Subjective

Price Style
Warranty Appearance
Service Image

4-9
 Consumers Have Many Attitudes

Individuals Products

Ads Brands
Attitudes
Toward
Media Companies

Retailers Organizations

4-10
 Ways to Change Attitudes

Change beliefs about an important attribute

Change perceptions of the

value of an attribute

Add a new attribute to the

attitude formation mix

Change perceptions or beliefs about

a competing brand

4-11
 The Decision Process

Pre- Post
Decision
evaluation evaluation

Integration Purchase Satisfaction

processes intention

Dis-
Heuristics
Brand loyalty satisfaction

Affect referral
decision rule Cognitive
dissonance

4-12
 How Consumers Learn

Thinking Conditioning Modeling

Based on Based on Based on

intellectual conditioning emulation
evaluation and through (copying) of
problem association or behavior of
solving reinforcement/ others
punishment

4-13
 Situational Determinants

Purchase
Situation
Usage Communications
Situation Situation

4-14
The Nature of Communication

5-1
Message Development

Content

Design Structure

5-2
 Communication Channels

Personal Nonpersonal
Channels Channels

Word of Personal Print Broadcast

Mouth Selling Media Media

5-3
 Field of Experience Overlap

Different Worlds

Sender Receiver
Experience Experience

Moderate Commonality
Receiver
Sender Experience
Experience

High Commonality
Receiver
Receiver Experience
Sender
Experience
Experience

5-4
 Successful Communication

Select an appropriate source

Develop a properly encoded message

Select appropriate channel for target audience

Receive feedback

5-5
Identifying the Target Audience

Mass Markets and Audiences

Markets Segments

Niche Markets

Individual &
Group
Audiences

5-6
The Response Process

5-7
Alternative Response Hierarchies

Topical Involvement
High Low
Learning Low involvement
model model
Perceived product

High
Cognitive Cognitive
differentiation

Affective
Conative

Dissonance/ Conative
attribution model
Low

Conative
Affective Affective
Cognitive

5-8
 The FCB Planning Model

Thinking Feeling

Involvement 1 2
High

Informative Affective
The Thinker The Feeler

3 4
Involvement

Habit Self-
Low

Formation Satisfaction
The Doer The Reactor

5-9
 Developing Promotional Strategies

• Ad options based on the FCB grid

• Rational versus emotional appeals
• Increasing involvement levels
• Evaluation of a think-type product on the
basis of feelings
5-10
A Model of Cognitive Response

5-11
 Cognitive Response Categories

Product/Message Thoughts

Counterarguments Support arguments

Source-Oriented Thoughts

Source derogation Source bolstering

Ad Execution Thoughts

Thoughts about Affect attitude

the ad itself toward the ad
5-12
Elaboration Likelihood Model (ELM)

Focuses on the way consumers respond to persuasive

messages, based on the amount and nature of elaboration
or processing of information

Routes to Attitude Change

Central route – Peripheral route –

ability and
motivation to process
a message is high and
close attention is paid
to message content
ability and
motivation to process
a message is low;
receiver focuses more
on peripheral cues
than on message
content

5-13
How Advertising Works

5-14
 06

Source, Message, and

Channel Factors

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Promotional Planning Elements

Promotional Planning

1 2 3 4
Receiver Channel Message Source
Comprehension Presentation Yielding Attention

Can the Which media What type of Who will be

receiver will increase message will effective in
comprehend presentation? create getting
the ad? favorable consumers’
attitudes? attention?

6-2
Source Attributes & Receiver Processing Modes

6-3
 Source Credibility

Ethical

Knowledgeable Trustworthy

Skillful Source Experienced

Believable Unbiased

Honest

6-4
 Limitations of Credible Sources

• High- and low-credibility sources

• Equally effective when arguing for a
position opposing their own best interest
• Sleeper effect
• Persuasiveness increases over time
6-5
 Source Attractiveness

Similarity Familiarity Likeability

Resemblance Knowledge of the Affection for the

between the source through source resulting
source and repeated or from physical
recipient of the prolonged appearance,
message exposure behavior, or
personal traits

6-6
Advertising Risks of Using Celebrities

The celebrity may overshadow

the product being endorsed

The celebrity may be overexposed,

reducing his or her credibility

The target audience may not be

receptive to celebrity endorsers

The celebrity’s behavior may pose

a risk to the company

6-7
 Choosing a Celebrity Endorser

Match
Trust
w/audience

Match w/product Risk

Factors

Image Familiarity

Cost Likability

6-8
 Q-Score = Star Power

• Q-Score Formula
• The percent of
those who say “one
of my favorites”

• Divided by the
percent who have
heard of him/her

Lance Armstrong
6-9
 Source Power

Perceived Perceived Perceived

control concern scrutiny

Compliance

6-10
 Message Appeal Choices

Appeal to the logical, Appeal to the feelings

rational minds of and emotions of
consumers consumers

Appeal to both

6-11
 Message Appeal Options

Comparative Fear Humor

Ads Appeals Appeals

• Especially • May stress • Can attract and

useful for new physical danger hold attention
brands or threats to
health
• Often the best
• Often used for remembered
brands with • May identify • Puts consumers
small market social threats
in a positive
share
• Can backfire if mood
• Used often in level of threat
political is too high
advertising

6-12
 Humor Appeals

Pros Cons
Aids attention and Does not aid persuasion in
awareness general

May aid retention of the May harm recall and

message comprehension

Creates a positive mood May harm complex copy

and enhances persuasion registration

May aid name and simple Does not aid source

copy registration credibility

May serve as a distracter, Not effective in bringing

reducing counterarguing about sales

May wear out faster than

non-humorous ads
6-13
Personal vs. Non-personal Channels

Personal Non-personal
Selling Advertising

•Flexible • Geared to
•Powerful large audience
•Real time • Static

6-14
Differences in Information Processing

Self-Paced Externally
Media Paced Media

• Newspapers • Radio

• Magazines vs. • Television

• Direct Mail

• Internet

6-15
 07

Establishing Objectives
and Budgeting for the
Promotional Program

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Characteristics of Objectives

Specific

Attainable Measurable

Realistic Quantifiable

7-2
Sales vs. Communications Objectives

Sales Communications
Objectives Objectives

• Primary goal is • Increased brand

increased sales knowledge, interest,
• Requires economic favorable attitudes
justification and image
• Should produce • Immediate response
quantifiable results not expected
• Goal is creating
favorable
predispositions
7-3
 Factors Influencing Sales

Technology
Competition

The
Advertising economy
& promotion

Product
quality
Distribution
Price

7-4
Communications Effects Pyramid

5% Use

20% Trial

25% Preference

40% Liking

70% Knowledge/comprehension

90% Awareness

7-5
GfK Purchase Funnel

7-6
 The DAGMAR Approach

Define Awareness

Advertising
Goals for Comprehension

Measuring Conviction
Advertising
Results Action

7-7
 Advertising-Based View of Marketing

Ads

Acting on Consumers

7-8
Marginal Analysis

7-9
 Budget Adjustments

Increase If cost is less than the

Spending marginal revenue generated

Hold If the cost is equal to the

Spending marginal revenue generated

Decrease If the cost is more than the

Spending marginal revenue generated

7-10
 Sales Response Models

A. Concave-Downward B. S-Shaped Response

Response Curve Function
Incremental Sales

Incremental Sales

Initial Spending

High Spending
Middle Level

Little Effect
Little Effect

High Effect
Range A Range B Range C
Advertising Expenditures Advertising Expenditures

7-11
Factors Influencing Advertising Budgets

Product Hidden product

life cycle qualities

Product Product
durability price

Purchase
Differentiation frequency

7-12
Top-Down vs. Bottom-Up Budgeting

7-13
 Build-Up Approaches

• Objective and Task Method

• Define communications objectives to be
accomplished
• Determine specific strategies and tasks
needed to attain them
• Estimate costs associated with
performance of these strategies and tasks

7-14
Implementing the Objective and Task Approach

Isolate objectives

Determine tasks required

Estimate required expenditures

Monitor

Reevaluate objectives

7-15
 08

Creative Strategy:
Planning and Development

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Advertising Creativity

Determining what the

Creative
advertising message will say
Strategy
or communicate

Determining how the

Creative
message strategy will be
Tactics executed

8-2
 Determinants of Creativity

Divergence Relevance

Originality Ad-to-consumer
Flexibility Brand-to-consumer
Elaboration
Synthesis
Artistic Value

8-3
Creative Personnel

Unconventional

Abstract

Less structured

Less organized

Intuitive

8-4
 Young’s Creative Process

Get raw material and data, and

Immersion
immerse yourself in the problem

Take the information, work it over,

Digestion
wrestle with it in your mind

Turn the information over to the

Incubation
subconscious to do the work

Illumination “Eureka! I have it!” phenomenon

Study the idea, evaluate it,

Verification
reshape it for practical usefulness

8-5
Wallas’ Creative Process Model

Illumination Preparation
Seeing the Gathering
Solution Information

The
Creative
Process

Verification Incubation
Refining Setting
the Idea Problem
Aside

8-6
 Getting Creative Input

Use the
Read anything product to
Listen to what
related to the become
people are
product or familiar
talking about
market with it

Conduct
studies of Ask everyone
Work in and
product, involved for
learn about the
service, information
client’s
audience
business

8-7
 Input Verification and Revision

•Evaluate ideas
•Reject the inappropriate
Objective
•Refine the remaining
•Give ideas final expression

•Directed focus groups

•Message communication studies
Techniques
•Portfolio tests
•Viewer reaction profiles

8-8
 An Advertising Campaign

Integrated

Interrelated Marketing Coordinated

Communication
Activities

In Different Centered on a Over a Time

Media Theme or Idea Period

8-9
 The Creative Brief

• Basic problem or issue the advertising

must address
• Advertising and communications
objectives
• Target audience
• Major selling idea or key benefits
to communicate
• Creative strategy statement
• Supporting information and
requirements

8-10
 Marketing Information Flow

Knowledge
of vital
marketing
information

Client/agency Internal agency

communication communication

Client gatekeepers Agency gatekeeper Creative staff

(Brand manager) (Account manager)

Internal client
decision Agency gatekeeper Art is created
to share decision on sharing
information client info with staff
with agency

8-11
Search for a Major Selling Idea

Finding the Use a Unique

inherent drama Selling Position

Seeking the
Major Idea

Positioning Create a Brand

Image

8-12
The Unique Selling Proposition (USP)

Benefit Unique Potent

Buy this Must be Promise

product/serv unique to must be
ice and you this brand or strong
get this claim; rivals enough to
benefit can't or don't move mass
offer it millions

8-13
Positioning

Establish a particular
place in the
customer’s mind for
the product or service

Based on product
attributes/benefits,
price/quality, use or
application, type of
user, or problem
solved

8-14
 09

Creative Strategy:
Implementation and Evaluation

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Appeals and Execution Style

The approach used to attract

the attention of consumers
Advertising
Appeals To influence consumer
feelings toward a product,
service, or cause

The way an appeal is turned

into an advertising message
Execution
Style
The way the message is
presented to the consumer

9-2
Informational/Rational Appeals

Feature
Focus on the dominant product traits

Competitive
Makes comparisons to other brands
Price
Makes price offer the dominant point
News
News announcement about the product
Popularity
Stresses the brand’s popularity

9-3
Appealing to Personal States or Feelings

Personal Social-Based
Safety Recognition
Security Status
Fear Respect
Love, Affection Involvement
Embarrassment
Happiness, Joy
Affiliation
Nostalgia
Rejection
Sentiment
Acceptance
Excitement Approval
Sorrow, Grief

9-4
 Transformational Ads

Feelings Images
The ads
create . . .
Meanings Beliefs

Richer Warmer
It makes the
product use
More experience. . . More
Exciting Enjoyable

9-5
Levels of Relationships With Brands

Emotions

Personality

Product Benefits

9-6
 Ad Execution Techniques

Straight sell Animation

Scientific/Technical Personality Symbol

Demonstration Imagery

Comparison Dramatization

Testimonial Humor

Slice of life Combinations

9-7
Basic Components of Print Advertising

Headline
Words in the Leading Position of the Ad

Subheads
Smaller Than the Headline, Larger Than the Copy

Body Copy
The Main Text Portion of a Print Ad

Visual Elements
Illustrations Such As Drawings or Photos

Layout
How Elements Are Blended Into a Finished Ad

9-8
 The Power of Audio in Commercials

• Audio elements
• Voices
• Music
• Sound effects
• Presentation methods
• Voiceover
• Needledrop
• Jingles

9-9
Production Stages for TV Commercials

All work before actual

Preproduction
shooting, recording

Period of filming, taping, or

Production
recording

Work after spot is filmed or

Postproduction recorded

9-10
 Client Evaluation and Approval

• Client-side approvals
• Advertising or communications manager
• Product or brand managers
• Marketing director or vice president
• Legal department
• President or CEO
• Board of directors

9-11
 Preproduction Tasks

Select a director

Choose
Preproduction
production
meeting
company

Preproduction

Production
Bidding
timetable

Cost estimation
and timing

9-12
 Production Tasks

Production

Location Timing Talent

9-13
 Postproduction Tasks

Editing Processing

Release/ Sound
shipping effects
Postproduction
Audio/video
Duplicating
mixing

Approvals Opticals

9-14
 10

Media Planning and Strategy

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Developing a Media Plan

Analyze the market

Establish media objectives

Develop/implement media strategy

Evaluate performance

10-2
 Using Index Numbers

Index Number
Percentage of users
in a demographic segment
Index = Percentage of population X 100
in the same segment

10-3
Using the Brand Development Index

Brand Development Index

Percentage of brand to total

U.S. sales in market
BDI = X 100
Percentage of total U.S.
population in market

10-4
Using the Category Development Index

Category Development Index

Percentage of total product

category sales in market
CDI = X 100
Percentage of total U.S.
population in market

10-5
Using BDI and CDI

10-6
 Developing Media Strategies

• Criteria to consider during plan development

• The media mix
• Target market coverage
• Geographic coverage
• Scheduling
• Reach and frequency
• Recency
• Creative aspects and mood
• Flexibility
• Budget

10-7
 Scheduling Methods

Continuity

Flighting

Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

10-8
 Ratings Points

• Gross ratings points (GRPs)

• GRP = Reach X Frequency

• Target ratings points (TRPs)

• The number of people in the primary
target audience the media buy will reach
• The number of times they will be reached

10-9
Marketing Factors Determining Frequency

Marketing
Factors

Brand Brand Usage

Loyalty Share Cycle

Brand Share of Purchase Target

History Voice Cycles Group

10-10
Message Factors Determining Frequency

Message Message Complexity

or Creative
Factors Message Uniqueness

New vs. Continuing Campaigns

Image Versus Product Sell

Message Variation

Wearout

Advertising Units

10-11
Media Factors Determining Frequency

Clutter

Repeat
Scheduling
Exposure
Media
Factors
Editorial
Attentiveness
Environment
Number of
Media Used

10-12
Determining Relative Cost of Print Media

Cost per thousand (CPM)

Cost of ad space
CPM = (absolute cost) X 1,000
Circulation

10-13
Determining Relative Cost of Broadcast Media

Cost per rating point (CPRP)

Cost of commercial time

CPRP = Program rating

10-14
Determining Newspaper Advertising Costs

Daily Inch Rate

Cost of ad space x 1,000

Circulation

10-15
 11

Evaluation of Media: Television and

Radio

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Television Advantages

Creativity and Impact

Coverage and Cost Effectiveness

Captivity and Attention

Selectivity and Flexibility

11-2
 Television Limitations

Fleeting Cost
Message

Limited Low
Attention Selectivity
Negative
Zipping Factors
Clutter
Zapping
Negative
Distrust
Evaluation

11-3
 Network versus Spot

Affiliated stations
that are linked
Network
Purchase transactions
are simplified

Commercials shown
Spot & on local stations
Local
May be local or “national
spot” commercials

11-4
 Syndicated Programs

Off-network syndication
Sold and are “reruns”
distributed
station by
station First-run syndications
are also featured

Advertiser-
Programs sold to stations in
supported or return for air time
bartered

11-5
 Methods of Buying Time

Spot
Sponsorship Participations
Announcements

1. Advertiser 1. Participating 1. May be

assumes sponsors purchased
responsibility share the cost by daypart
for the 2. May occur or adjacency
production regularly or
and perhaps sporadically
content
3. Advertiser
2. Sponsor has doesn’t do
control and production
can
capitalize on 4. Participants
a show’s lack control
prestige over content

11-6
Common Television Dayparts

11-7
 Advertising on Cable Television

Advantages Limitations

1. National, regional, 1. Overshadowed by

and local available major networks
2. Audience
2. Highly selective fragmentation
“narrowcasting”
3. Lacks penetration
3. Low cost in major markets
4. Flexibility

11-8
TV Audience Measures

Share of Audience

Program Rating

11-9
Advantages of Radio

Cost and Efficiency

Receptivity

Selectivity

Flexibility

Mental Imagery

Integrated Marketing

11-10
Limitations of Radio

Creative Limitations

Audience Fragmentation

Chaotic Buying

Limited Research Data

Limited Listener Attention

Digital Media Competition

Clutter

11-11
 Buying Radio Time

Three national networks

Network
Radio Over 100 regional/area networks

A multitude of syndicated programs

About 20% of all spots

Spot
Radio Allows great flexibility, targeting

Purchase transaction can be difficult

Nearly 80% of advertisers are local

Local
Radio Local CATV is becoming competitive

11-12
Radio Time Classifications

11-13
 12

Evaluation of Print Media

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

The Role of Magazines and Newspapers

Reader sets Not

the pace intrusive

Selective High-
audience involvement

High
readership

12-2
 Classifications of Magazines

Consumer Farm Business

12-3
Advantages of Magazines

Selectivity

Reproduction Quality

Creative Flexibility

Permanence

Prestige

Receptivity, Engagement

Services

12-4
 Creative Flexibility

Bleed Pages

Creative
Inserts
Space

Gatefolds Pop-Ups

Cover
Positions
12-5
Special Services Offered by Magazines

•Retailer alerts
•Consumer research studies
•Split runs
•Personalized messages to
tightly targeted audiences

12-6
Disadvantages of Magazines

Costs

Limited Reach

Limited Frequency

Long Lead Time

Clutter

Competition

12-7
 Magazine Circulation

Primary
Circulation

Total Guaranteed
Audience Circulation

Controlled Circulation
Circulation Verification

Pass-Along
Readership
12-8
Cost Elements of Advertising Space

Circulation

Size of the ad

Position in the publication

Editions chosen

Production requirements

Insertion number/frequency

Use of color

12-9
 Types of Newspapers

Daily National
Special-audience
Weekly Supplements

12-10
 Types of Newspaper Advertising

• Local (mostly retail)

Display Ads
• National or general

Classified • Small items arranged by topic

Ads • Rates based on size, duration

Special Ads • Legal notices - public reports

and Inserts • Notices by people and/or
organizations
• Political ads
• Circulars, catalogs, brochures

12-11
Newspaper Advantages and Limitations

Advantages Disadvantages
Extensive penetration Low production quality

Flexibility Short life span

Geographic selectivity Lack of selectivity

Involvement, acceptance Clutter

Services offered Limited use of color

12-12
 Purchasing Newspaper Space

• General rates
• Advertisers are outside
the newspaper’s designated
market area
• Includes national advertisers
• Are up to 75% higher than local rates
• Retail or local rates
• Advertisers conduct business within the
designated market

12-13
 Newspaper Advertising Rates

Standard Sales by
Advertising Units Column Inch
One inch by 1 inch deep by
2 1/16 inches wide 1 column width

Fits in all newspapers

Column widths vary
that use this format size

Column width affects ad

Simplifies rate quotes
size, shape, cost

Simplifies production Complicated purchasing

process and placement process

12-14
 13

Support Media

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 The Role of Support Media

To reach those people in the target

audience that primary media (TV,
print, etc.) may not have effectively
reached and to reinforce, or support,
their messages.

13-2
Out-of-Home Advertising Media

13-3
 In-Store Media

• Typical in-store media

• In-store ads
• Aisle displays
• Store leaflets
• Shopping cart
signage
• In-store TV

13-4
 Transit Advertising

Inside Cards Outside Posters

Station, Platform, Terminal Posters

13-5
 Pros of Outdoor Advertising

Wide local coverage Creation of awareness

High frequency Efficiency

Geographic flexibility Sales effectiveness

Creativity Production capability

Timeliness

13-6
 Cons of Outdoor Advertising

Waste coverage High cost

Limited message ability Measurement problems
Wearout Image problems

13-7
Transit Advertising

Advantages
Exposure

Frequency

Disadvantages
Reach

Mood of the Audience

13-8
Pros and Cons of Promotional Products

Advantages Disadvantages
Selectivity Poor image

Flexibility Saturation

Frequency Lead Time

Cost

Goodwill

High recall

Augmentation

13-9
 Pros and Cons of Yellow Pages

Advantages Disadvantages
Wide Availability Market Fragmentation

Action Oriented Timeliness

Low Cost Lack of Creativity

Frequency Lead Times

Non-Intrusiveness Clutter

Trust Size Requirements

13-10
 Advertising in Movie Theaters

Advantages Disadvantages
High Exposure Irritation

Emotional attachment Cost

Cost

Attention

Lack of Clutter

Proximity

Segmentation
13-11
 Nontraditional Support Media

Product
Placements
Product
Others
Integration

Branded
Entertainment

Ad-Supported
Advertainment
VOD
Content
Sponsorship

13-12
 Branded Entertainment
Advantages Disadvantages
High Exposure High Absolute Cost

High Frequency Time of Exposure

Media Support Limited Appeal

Source Association Lack of Control

Low Cost/High Recall Public Reactions

Bypass Regulations Competition

Viewer Acceptance Negative Placements

Targeting Clutter
13-13
 Other Media

Parking lot
ads

Videogame Gas station

ads pump ads

Place-based
Others
media

13-14
 14

Direct Marketing

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Direct Marketing Defined

…an interactive system of marketing which

uses one or more advertising media to effect
a measurable response and/or transaction
at any location

Print
Interactive TV

Telemarketing Direct Mail

The Internet Other Media

14-2
 Growth of Direct Marketing

Miscellaneous Consumer
Catalogs
factors Credit Cards

Changing Changing
Technological
Structure of Structure of
Advances
Markets Society

14-3
Direct Marketing Combines With…

Public
Advertising Relations

Direct
Marketing
Support Personal
Media Selling
Sales
Promotions

14-4
Objectives of Database Marketing

Improve Selection of
Market Segments

Stimulate Repeat
Purchases

Objectives
Cross-selling Other
Products

Customer Relationship
Management

14-5
 Direct Marketing Strategies

One-Step Two-Step

• The medium is used • May use one medium

directly to obtain an to obtain inquiry and
order qualify prospect
• Often uses toll-free • Follow-up with a
phone orders and second medium to
credit card payments complete the sale

14-6
Direct-Response versus Support Ads

Direct- Product/service offered

response
Sales response solicited
advertising
Toll-free numbers included
TV spots, infomercials,
home shopping shows

Reader’s Digest asks you to watch

Support mailbox for sweepstakes entry
advertising Supports other advertising

14-7
 Telemarketing

Used by Supports Big industry,

for-profit & one- and but
charitable two-step decreasing
organizations marketing sales

Potential for Impacted by

Annoys
fraud and Do Not Call
consumers
deception lists

14-8
Forms of Direct Selling

Repetitive
person-to-person

Nonrepetitive
person-to-person

Party Plans

14-9
Direct Marketing Advantages

Selective reach

Segmentation
Frequency potential

Testing

Timing

Personalization

Costs
Measures of effectiveness

14-10
Direct Marketing Disadvantages

Accuracy

Image Content
factors support

Do Not Rising
Contact lists costs

14-11
 15

The Internet and

Interactive Media

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

Internet Communications Objectives

Create
Awareness
Gain Generate
Consideration Interest

Create Buzz
Objectives Disseminate
Information

Create an
Stimulate Trial Image
Create a Strong
Brand

15-2
 E-Commerce

Direct selling of goods and services

through the Internet
May be primary or secondary objective
15-3
Internet Advertising Models

15-4
 Internet Search Advertising

• Search Engine Marketing

• The entire set of techniques and
strategies used to direct visitors from
search engines to marketing web sites
• Paid Placement
• Text-only ads targeted to keyword search
results on search engines
• Offered through programs such as Google
AdWords, Yahoo Search, or Microsoft Bing
• Sometimes referred to as paid placement,
pay-per-click, cost-per-click advertising

15-5
 Internet Search Advertising

• Behavioral Targeting
• Targeting online ads to consumers based on
their Web searching behavior
• Contextually Targeted Ads
• Text ads targeted to the content of web pages
using programs such as Google AdSense and
Yahoo Search Content
• Placement of ads determined by content of the
web page where they are shown
• Organic Search Optimization
• Using a range of techniques to improve how well
a site or page is listed in search engines for
specific topics
15-6
 Paid Search

• Online search-based advertising

• Advertiser pays only when a Web surfer clicks on
their link from a search engine page
• Search ads appear in a specified, sponsors-only
area near the search results for that phrase
• Advertisers bid on search keywords
• Prices for popular search terms
• Background check - $1.18 per click
• Car loan - $1.34 per click
• Refinance - $4.46 per click
• Mesothelioma - $50 per click

15-7
 Rich Media

A broad range of interactive digital media

that exhibit dynamic motion, taking advantage
of enhanced sensory features such as video,
audio, and animation

Online Commercials

Video on Demand

Webisodes

Other Forms

15-8
Web 2.0 – The Social Media Landscape

15-9
 Examples of Social Media

Social networking MySpace, Facebook, Twitter

Creativity work •Video (youtube)
sharing •Photos (Flickr)
•Music (Jamendo)
User-sponsored blogs Cnet.com
Company-sponsored •Blogs
sites •Cause/help sites (Dove
Campaign for Real Beauty)
Business networking LinkedIn
Collaborative Wikipedia
Commerce Ebay, Amazon
communities

15-10
 Personal Selling on the Internet

Cheaper than personal selling

May Replace
Personal Selling
Greater potential reach

May Enhance Primary source of information

Personal Selling
Efforts Valuable source of leads

Stimulates trial Improves 1-on-1 relationships

Cross-selling Prospects request sales calls

15-11
 Direct Mail (Email)

Electronic version
Highly targeted
of regular mail

Tries to reach those Relies on

w/specific needs email lists
15-12
Infomercials and Home-Shopping

Infomercials

Program content similar

to television, cable or
satellite

Web allows greater

audience interaction

Online retailers include

QVC, HSN, ShopNBC

15-13
Measures of Internet Effectiveness

Frequency to
Conversion Radios

Post-click Cost per

Clicks
conversions conversion
Unique Average Ad exposure
visitors frequency time
Ad interaction View-through
Visits
rate rate
Webpage Offline Cross-media
eye tracking sales lift models
15-14
 16

Sales Promotion

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Sales Promotion

A direct inducement that offers

an extra value or incentive for
the product to the sales force,
distributors, or ultimate consumer
with the primary objective of
creating an immediate sale

16-2
 Sales Promotion Vehicles
Consumer-Oriented Trade-Oriented
Samples Contests, incentives

Coupons Trade allowances

Premiums POP displays

Contests/sweepstakes Sales training programs

Refunds/rebates Trade shows

Bonus Packs Cooperative advertising

Price-off deals

Frequency programs

Event marketing
16-3
Reasons for Sales Promotion Increases

Growing power of retailers

Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmented consumer markets
Short-term focus of marketers
Increased accountability
Competition
Clutter
16-4
 Sale Promotion Concerns

• Negative impact of sales promotions

• Fewer dollars to build brand equity
• Encourages consumers to purchase on
the basis of price
• Detracts from the value of the brand
16-5
Objectives of Consumer-Oriented Promotions

Increase
consumption of an
established brand

Obtain trial Defend (maintain)

and purchase current customers

Enhance IMC
Target a
efforts and build
specific segment
brand equity

16-6
 Sampling

Sampling Works Best When

The product
can be broken
The products into a small The purchase
are of piece or size cycle is
relatively low that reflects relatively
unit value the full short
features and
benefits

16-7
 Pros and Cons of Coupons

Advantages Disadvantages
Appeals to price Hard to tell how many
sensitive consumers consumers will use
them and when
Can offer discounts
without retailer Often used by loyal
cooperation consumers who would
purchase anyway
Effective way to induce
trial of products Low redemption rates
and high costs
Defends market share
and encourages Misredemption
repurchase and fraud
16-8
 Types of Coupons

In/On-Pack In-Store

Bounce-back Tear-off pads

Cross-ruff Handouts

Instant Dispensers

Register printout

16-9
 Premiums

An offer of an item, merchandise, or

service, free or at a low cost, that is
an extra incentive for customers

Types of Premiums

Self-liquidating:
Free:
consumer required to
Only requires purchase
pay some or all of the
of the product
cost of the premium

16-10
More Consumer-Oriented Promotions

Price-off Deals

Contests and
sweepstakes

Refunds and
rebates

Bonus packs

Loyalty programs

Event marketing

16-11
 Trade Oriented Promotions

Obtain distribution for new

products
Objectives
Maintain support for
established brands

Encourage display of
products

Build retail inventories

16-12
Types of Trade Oriented Promotions

Contests and incentives

Co-op Advertising
Types
Trade allowances

POP displays Buying

Sales training Promotional

Trade shows
Slotting

16-13
 Cooperative Advertising

• Trade-oriented cooperative advertising

• The cost of advertising is shared by more
than one party
• Forms
• Horizontal
• Ingredient-sponsored
• Vertical

16-14
The Sales Promotion Trap

16-15
 17

Public Relations, Publicity, and

Corporate Advertising

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Public Relations Defined

A management function

Which evaluates public attitudes

And identifies the policies and procedures

Of an organization with the public interest

And executes a program of action (& communication)

To earn public understanding and acceptance

17-2
Public Relations Management Stages

Determination and
evaluation of public
attitudes

Identification of policies
PR and procedures

Development and
execution of the
program

17-3
Integration of PR into the Promotional Mix

Separate Functions
Marketing Public
Department Relations

Coordinated and Equal

Marketing Public
Department Relations

Integrated
Marketing Public
Department Relations

17-4
Marketing Public Relations Functions

Build market excitement before media ads break

Defend products at risk, give consumers reason to buy

Create ad news where there is no product news

Introduce a product with little or no advertising

Provide a value-added customer service

Build brand-to-customer bonds

Influence the influentials

Improve ROI

17-5
 Benefits of MPR

A cost-effective way to Breaks though the

reach the market clutter

Highly targeted way to Circumvents resistance

conduct public relations to sales efforts

Endorsements by Improved media

independent third involvement
parties w/customers

Achievement of Creates influence

credibility among opinion leaders

Makes advertising
Improved ROI
messages more credible

17-6
 Disadvantages of MRP

Lack of control over media

Difficult to tie in slogans or other

advertising devices

Media time and space aren’t

guaranteed

No standards for effective

measurement

17-7
 The Process of Public Relations

Determining and Evaluating Public Attitudes

Establishing a PR Plan

Developing and Executing a PR Program

Measuring Program Effectiveness

17-8
 Implementing the PR Program

Press
Releases

Press
Interviews
Conferences

PR Tools

The
Exclusives
Internet
Community
Involvement

17-9
 Advantages of Public Relations

Credibility

Image Cost
Building Savings

PR
Provides
Avoidance
Selectivity
of Clutter
Lead
Generation

17-10
Potential Problems of Public Relations

Potential for incomplete

communication process

Potential Receiver not making

Problems connection to the source

Lack of coordination with

marketing dept.

Inconsistent, redundant
communications

17-11
 Publicity versus Public Relations

Publicity:
The generation of news about a person,
product, or service that appears in the media

A short-term strategy

A subset of public relations

Not always positive

Often originates outside the firm

17-12
 Pros and Cons of Publicity

Advantages Disadvantages

Substantial credibility Timing difficult or

impossible to control

News value Inaccuracy, omission,

or distortion
may result
Significant word-of-
mouth

Perception of media
endorsement

17-13
 Corporate Advertising

An extension of the PR
function

Does not promote a specific

product or service

Promotes the organization

Assuming a
Image Seeks
position on an
enhancement involvement
issue or cause

17-14
Types of Corporate Advertising

Image
General Image Ads
Advertising
Positioning Ads
Event
Sponsorships
Sponsorship
Recruitment
Advocacy
Financial Support
Advertising

Cause-related
Advertising

17-15
 18

Measuring the Effectiveness

of the Promotional Program

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Reasons to Measure Effectiveness

Advantages Disadvantages

Avoid costly mistakes Cost of measurement

Evaluate alternative
Research problems
strategies

Increase efficiency in Disagreement on

general what to test

Determine if objectives Objections of creatives

are achieved

Time

18-2
Testing Methods

18-3
 Test Points

1.Concept Testing

2.Rough Testing
Occurs at
Various Stages 3.Finished art or
commercial pretesting

4.Market testing
(posttesting)

18-4
 Concept Testing

Objective Explores consumers’ responses to ad

concepts expressed in words, pictures, or
symbols

Method Alternatives are exposed to consumers

who match the target audience
Reactions & evaluations sought through
focus groups, direct questioning, surveys
Sample sizes depend on the number of
concepts and consensus of responses

Output Qualitative and/or quantitative data

evaluating and comparing alternative
concepts

18-5
 Focus Groups

• Appeal
• Results easily obtained, observable, immediate
• Multiple issues can be examined
• In-depth feedback is obtained
• Drawbacks
• Results not quantifiable
• Sample size too small
• Group influence may bias responses
• Some members may dominate discussion
• Participants become instant “experts”
• Members may not represent target market
• Results may be given too much weight

18-6
Rough Art, Copy, & Commercial Testing

Comprehension and Reaction Tests

Consumer Juries

Advantages Disadvantages
Consumer may become
Control
self-appointed expert
Number of ads that can be
Cost effectiveness evaluated is limited
Endorsements by A halo effect is possible
independent third parties
Preference for ad types
Achievement of credibility may overshadow objectivity

18-7
 Rough Testing Terms

Animatic Rough

Terms Photomatic Rough

Live-action Rough

18-8
 Pretesting Finished Print Ads

A laboratory method
Portfolio
Includes test and control ads
Tests
Portfolio test have problems

Readability Based on syllables per 100 words

Tests Other factors also considered

Dummy Sent to random sample homes

Advertising
Vehicles Product interest may bias results

18-9
Pretesting Finished Broadcast Ads

Theater Physiological
Tests Measures
On-Air
Tests

18-10
Physiological Measures

Pupil dilation

Galvanic skin
response

Eye tracking

Brain waves

18-11
 Market Testing of Ads

Inquiry Tests Recognition Tests

Testing

Tracking Studies Recall Tests

18-12
Starch Ad Recognition Scores

Noting Score

Brand-associated Score

Read Most Score

18-13
Posttests of Broadcast Commercials

Day after recall Persuasive

tests measures

Tracking
Diagnostics
studies
Testing

Single-source Comprehensive
tracking measures

Test marketing

18-14
 Essentials of Effective Testing

Establish communications objectives

Use a consumer response model

Use both pretests and posttests

Use multiple measures

Understand & implement proper research

18-15
 21

Evaluating the Social, Ethical,

and Economic Aspects of
Advertising and Promotion

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

Advertising and Promotion Viewpoints

Provides information to consumers

Encourages higher standard of living

Proponent
arguments Promotes competition

Helps new firms enter a market

Creates jobs

More propaganda than information

Critic Creates consumer needs, faults
arguments
Promotes materialism, insecurity,
and greed

21-2
Ethics in Advertising and Promotion

Ethics: Moral principles and values that

govern the actions and decisions
of an individual or group

A marketing or Marketers must

Not all issues promotion decide the
can be action may be appropriate-
regulated legal but not ness of their
ethical actions

21-3
Untruthful or Deceptive Advertising

Consumers Industry Problems

Don’t trust advertising Deliberately untruthful

Rely on word of mouth False and misleading claims

Find ads intrusive Faulty sweepstakes

Find relevance too low Providing too little info

Trust websites slightly more Puffery and embellishment

21-4
Advertising as Offensive or in Bad Taste

Objectionable Sexual
Shock ads
products appeals

Condoms
Feminine
hygiene
products
Women’s
undergarments
Hemorrhoid
products

21-5
What is your opinion of this ad?

Is this woman portrayed

as a sex object?

Does this ad contain

cues that are sexually
suggestive?

Does this ad present an

image of sexual
submissiveness?

21-6
Attitudes Toward Sex in Advertising

21-7
 Advertising and Children

Children's TV
Watching Behavior

Children watch an 80% of ads targeted to

average of 22 hours children cover:
of TV per week •Toys
They see up to 30,155 •Cereal
commercials per year •Candy
•Fast food

21-8
Perspectives on Ads for Children

Advocates Argue That Children:

Lack the knowledge and Cannot differentiate

skills to evaluate between programs and
advertising claims commercials

Marketers Argue that Children:

Must acquire skills

Must learn
needed to function in
through socialization
the marketplace

21-9
 Other Areas of Concern

• Areas of potential concern

• Cable television programming
• Internet ads
• Ads encouraging children to call 900
numbers
• An increase in toy-based programs
• Marketing of violent films, music, games
• Advertising and promotions in schools by
companies like Coca-Cola

21-10
Social and Cultural Consequences

Does advertising
encourage materialism?

Does advertising make

people buy things
they don’t need?

Is advertising just
a reflection of society?

21-11
 Advertising and Stereotyping

Portrayal of women to
reflect their changing role
in society

Criticisms of Portrayal of
Gender
women as
stereotyping Advertising sex objects
With Regard to
Stereotyping

Ethnic
Sexual
stereotyping/
orientation
representation

21-12
Do Advertisers Control the Media?

Ads are the primary source of revenue for

newspapers, magazines, television and radio

Media’s dependence on ads for revenue makes

them vulnerable to control by advertisers

Advertisers may exert control over media by

biasing editorial content, limiting coverage of
certain issues, or influencing program content

21-13
Can Media Resist Advertisers?

Media must report the news

fairly and accurately to retain
public confidence

Advertisers need the media

more than the media need
any one advertiser

Media maintain separation

between news and business
departments “The Wall”

21-14
Economic Effects of Advertising

Makes consumers aware

of products and services

Provides consumers with

information to use to
make purchase decisions

Encourages consumption,
fosters economic growth

Leads to economies of
scale & lower prices

21-15
Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Introduction: Marketing for Hospitality and

Tourism
Chapter 1
 Purpose of a Business

Satisfied &
Create & Customer
Orientation Profitable
Maintain
Customers

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 What is Marketing?
Marketing is the process by which companies
create value for customers and society, resulting
in strong customer relationships which capture
value from the customers in return.

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 Marketing Mix

Product Place
(Distribution)

Price Promotion
(Sales & Advertising)

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 Tourism Marketing

Hospitality Tourism Travel

Industry Marketing Industry

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 The Marketing Process

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 Core Customer & Marketplace Concepts

Needs, Wants Marketing Value &

& Demands Offerings Satisfaction

Exchanges &
Markets
Relationships

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 Needs, Wants & Demands

Needs

Demands Wants

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 Marketing Offerings

Customer wants
and needs are
fulfilled through
some combination
of tangible and
intangible
products and
services
Illustration 1-7

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 Value & Satisfaction

Customer Customer Customer

Value Satisfaction Expectations

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Exchanges & Relationships and Markets

MARKET

Exchange vs. Relationships

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 Marketing Management Orientations

Management
Orientations

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 Marketing 3.0 (cont.)

Participation &
Collaboration

Marketing
3.0

Creative Society Globalization

13

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 Customer Value-Building Tools

Financial Benefits

Structural Social &

Ties, Social & Financial
Financial Benefits
Benefits

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Building Profitable Customer Relationships

Low Frequency High Frequency

Try to get these These are your best

High Profitability customers to come customers, reward
more often them

These customers will

Some of these guests
follow promotions –
have the potential to
Low Profitability ensure your
become more
promotions make
profitable
money
Table 1-1

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 Guidelines for Customer Relationships
1. Target fewer, more profitable customers
2. Relate in deeper, more meaningful ways
3. Create dialogues with customers via online
social networks
4. Invite customers to play a more active role in
shaping products and brand messages

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 Lifetime Value of the Customer
• Losing a customer means losing more than a
single sale.
– It means losing the entire stream of purchases that
the customer would make over a lifetime of
patronage
• A company can lose money on a specific
transaction but still benefit greatly from a long-
term relationship
– This is one of the reasons successful companies
empower employees to resolve customer
complaints
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 Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Service Characteristics of Hospitality and Tourism

Marketing
Chapter 2
 Characteristics of Service Marketing

Characteristics
of Services

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 Steps to Reduce Variability

Invest in good hiring

& training
procedures

Standardize Monitor
The service- Customer
performance Satisfaction
process

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 The Service Profit Chain

Satisfied and
Internal productive Greater
service service service value
quality employees

Healthy
Satisfied and
service
loyal
profits and
customers
growth

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 Types of Marketing

Internal Service Interactive

Marketing Marketing Marketing

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 Marketing Strategies

Service Service Service Customer

Differentiation Quality Productivity Complaints

Employees Capacity
Perceived
As Part Of and
Risk
The Product Demand

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 Recommendations for Improving
Service Quality
1. Listening 6. Surprising customers
2. Reliability 7. Fair play
3. Basic service 8. Teamwork
4. Service design 9. Employee research
5. Recovery 10. Servant leadership

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 Capacity Management

Involve the Customer in the Service Delivery System

Cross-Train Employees

Use Part-Time Employees

Rent or Share Extra Facilities and Equipment

Schedule Downtime During Periods of Low Demand

Change the Service Delivery System

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 Demand Management
Use Price to Create or Reduce Demand

Use Reservations

Overbook

Revenue Management

Use Queuing

Shift Demand

Create Promotional Events

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 Tips for Managing Waiting Lines
1. Unoccupied time feels longer than occupied
time

2. Unfair waits are longer than equitable waits

3. Uncertain Waits Are Longer than Known, Finite

Waits

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

The Role of Marketing in Strategic Planning

Chapter 3
 Characteristics of a High-
Performance Business

Stakeholders Processes

Resources Organization

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 Defining the Corporate Mission
• A hospitality organization exists to accomplish
something

• According to Peter Drucker, ask:

– What is our business?
– Who is the customer?
– What do customers value?
– What should our business be?

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 Developing Growth Strategies

Market Market
Product
Concentration Development
Development
Strategy Strategy

Diversification Integrative
Growth Growth

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 Diversification Growth

Concentric
Diversification

Conglomerate Horizontal
Diversification Diversification

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 Integrative Growth

Backward

Horizontal Forward

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 Customer-Driven Marketing Strategy

Market Market
Segmentation Targeting

Market Market
Differentiation Positioning

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 Developing an Integrated Marketing Mix

4 Ps 4 Cs

Product Customer Solution

Price Customer Cost

Place Convenience

Promotion Communication

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 Managing the Marketing Process

Implemen-
Analysis Planning Control
tation

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 SWOT Analysis

Internal Environmental Analysis

Strengths Weaknesses

External Environmental Analysis

Opportunities Threats

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 Goal Formulation Strategies

Overall Cost Differentiation Focus

Leadership

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

The Marketing Environment

Chapter 4
 Microenvironment

Management
Orientations

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 Analyzing Competitors

Share of
Market

Share of Share of
Heart Mind

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 Levels of Competitors

Companies that
offer similar services Companies that
to the same make the same
customers at a product or class of
similar price products

Companies that Companies that

supply the same compete for the same
service consumer dollars

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 Intermediaries

Marketing
Financial
Services Intermediaries
Intermediaries
Agencies

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 Types of Publics
Financial Publics

Media Publics

Government Publics

Citizen-Action Publics

Local Publics

General Public

Internal Publics

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 Macroenvironments

Management
Orientations

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 Demographic Trends in the US

Changing Age The Changing

Structure of Increasing
American
the Diversity
Family
Population

A Better
Geographic Educated,
Shifts in More
Population Professional
Population

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 Generations in the US

Baby Boomers

MIllenials Generation
X

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 Economic Trends in the US

Changes Economic The Global

In Income Trends Economy

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 Natural Environment

Growing Shortages
of Raw Materials

Increased Increased
Government Pollution
Intervention

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 Trends in the Political Environment

Increased Legislation and Regulation

Changing Government Agency Enforcement

Increased Emphasis on Social Responsibility

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 Cultural Environment

Cultural Cultural
Environment Subcultures
Values

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 Environmental Scanning

Determine Determine How

Environmental Information will
Areas to be be Collected
Monitored

Analyze Data and

Implement Data
Use in Planning
Collection Plan
Process

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Marketing Information Systems and Marketing

Research
Chapter 5
 Marketing Information System

Assessing
Information
Needs

Gathering Developing
Marketing Marketing
Intelligence Information

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 Sources of Marketing Information
Internal Data

Guest History Information

Guest Information Trends

Guest Comment Cards

Listening to and Speaking with Guests

Automated Systems

Mystery Shoppers

Company Records

Point-of-Sale (POS) Information

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 Marketing Intelligence

Internal Marketing External

Sources Intelligence Sources

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 Marketing Research

Identifies and Monitors and

Communicates
Defines Evaluates

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 Marketing Research Process

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 Marketing Research Objectives

Exploratory

Causal Descriptive

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 Developing the Research Plan

Determining Gathering
Specific Secondary
Information Information
Needs

Designing the Presenting the

Sample Research Plan

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 Research Approaches

Observational
Research

Experimental Survey
Research Research

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 Contact Methods

Mail Telephone
Questionnaire Interviewing

Personal Online Interview

Interviewing

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 Sampling Plan
How many
Who will be people
surveyed? should be
surveyed?

How should When will the

the sample survey be
be chosen? given?

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 Research Instruments

Research Mechanical
Questionnaires Instruments Devices

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 Research Problem Areas

Lack of Qualitative Information

Failing to Look at Segments within a Sample

Improper Use of Sophisticated Statistical Analysis

Failure to Have the Sample Representative of the Population

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Consumer Markets and Consumer Buying

Behavior
Chapter 6
 Consumer Behavior

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 Personal Characteristics
Affecting Consumer Behavior

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 Cultural Factors

Values Perceptions
Cultural
Factors
Wants Behaviors

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 Social Factors

Groups Family

Social Roles Status

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 Personal Factors

Age & Life- Economic

Cycle Occupation
Situation
Stage

Self-
Lifestyle Personality
Concept

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 Psychological Characteristics

Motivation Perception

Beliefs &
Learning
Attitudes

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 Perceptual Processes

Selective
Attention

Selective Selective
Retention Distortion

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 The Buyer Decision Process

Evaluation
Need Information
of
Recognition Search
Alternatives

Purchase Postpurchase
Decision Behavior

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Organizational Buyer Behavior of Group Market

Chapter 7
 The Organizational Buying Process

Complex
Large Sums
Technical
of Money
Features

Interactions
Economic
among Many
Considerations
People

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 Participants in the Organizational
Buying Process

Users Influencers Deciders

Approvers Buyers Gatekeepers

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 Major Influences on
Organizational Buyers

Environmental Organizational
Influencers
Interpersonal Individual

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 Buyphases

General
Problem Product Supplier
Need
Recognition Specification Search
Description

Proposal Supplier Order-Routine Performance

Solicitations Selection Specification Review

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 Group Business Markets

Association
Conventions
Meetings

SMERF
Corporate (Social, Military,
Meetings Educational, Religious
& Fraternal)

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Market Segmentation, Targeting, and Positioning

Chapter 8
 Target Marketing

Market Market Market

Segmentation Targeting Positioning

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 Market Segmentation

Geographic Demographic

Psychographic Behavioral

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 Demographic Segmentation

Age and Life-

Cycle Stage

Gender Income

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 Behavioral Segmentation

Occasion

Benefits Sought

User Status

Usage Rate

Loyalty Status

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Requirements for Effective Segmentation

Measurability Accessibility
Effective
Segmentation
Substantiality Actionability

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 Evaluating Market Segments

Size & Growth

Company Structural
Objectives & Attractive-
Resources ness

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 Selecting Market Segments

Marketing
Undifferentiated Strategies Differentiated

Concentrated

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 Positioning Strategy

Effectively
Identifying Selecting
Communicate
Competitive Competitive
Chosen
Advantages Advantages
Position

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 Ways to Differentiate

Management
Orientations

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 Positioning Errors

Underpositioning

Confused Over-
Positioning Positioning

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 Which Differences?
Important

Distinctive

Superior

Communicable

Preemptive

Affordable

Profitable

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 Perceptual Mapping

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Designing and Managing Products

Chapter 9
 What is a Product?

A product is anything that can be offered to a

market for attention, acquisition, use, or
consumption that might satisfy a want or
need.

It includes physical objects, services, places,

organizations, and ideas.

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 Product Levels

Facilitating
Core Products Products

Supporting Augmented
Products Products

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 Augmented Product

Accessibility Atmosphere
Augmented
Product
Customer Customer
Participation Interaction

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 Atmosphere’s Effect on
Purchase Behavior
Attention- Message-
Creating Creating
Medium Medium

Effect- Mood-
Creating Creating
Medium Medium

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 Customer Interaction with the
Service Delivery System

Joining Consumption Detachment

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 Elements of Branding Strategy

Brand Equity

Brand Brand
Portfolios Positioning

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 Brand Positioning

Beliefs and Values

Benefits

Attributes

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 New Product Development

Concept
Idea Idea Marketing
Development
Generation Screening Strategy
and Testing

Business Product Test

Commercialization
Analysis Development Marketing

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 Idea Generation

External Internal
Environment Sources
Idea
Generation
External Crowdsourcing
Sources

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 Commercialization

Commercialization
Decisions

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 Product Life Cycle

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 Product Deletion

Phase-Out

Drop It Run-Out

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Internal Marketing
Chapter 10
 Internal Marketing

Internal Marketing involves marketing to the

firm’s internal customers, its employees

The Moment of Truth occurs when employees

and customers have contact

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 Internal Marketing Process

Development Dissemination
Establishment of a Marketing of Marketing
of a Service Approach to Information to
Culture HR Employees

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 Establishment of a Service Culture

Service
Service Organizational
Marketing
Culture Culture
Program

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 New Organizational Structure

Customers
Line Employees
Supervisors
Department Heads
General
Managers
Corporate

Focus of
Organizational Team

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 Nonroutine Transactions
• Strong culture prepares employees to handle
nonroutine transactions
– Service culture provides employees with the proper:
• Attitude
• Knowledge
• Communication Skills
• Authority

• Nonroutine transactions are unique

– The ability to handle nonroutine transactions
separates excellent hospitality companies from
mediocre ones
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 Marketing Approach to HR
Create Jobs that Attract Good People

Improve the Hiring Process

Promote Teamwork

Emphasize the Importance of Initial Training

Train Continuously

Manage Emotional Labor

Implement a Reward and Recognition System

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Marketing for Hospitality and Tourism
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Pricing Products: Pricing Considerations,

Approaches, and Strategy
Chapter 11
 Price
Simply defined:
Price is the amount of money charged for a
product or service

Broadly defined:
Price is the sum of values consumers
exchange for the benefits of having or using
the product or service

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 Common Pricing Mistakes

Is Too Cost- Fails to Reflect

Oriented Market Changes
Mistakes
Include Pricing
Does Not That:
Account for the Is Not Varied
Marketing Mix Enough

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Factors to Consider When Setting Prices

Factors that
Internal Affect External
Factors Pricing Factors
Decisions

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 Internal Factors

Internal Factors

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 Marketing Objectives

Current
Market-Share
Survival Profit
Leadership
Maximization

Product-
Other
Quality
Objectives
Leadership

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 External Factors

The Nature of
Market & Demand

Consumer
Competition
Perceptions
of Price &
Value

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 Price-Demand Relationship

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 Determinants of Price Elasticity

Buyers are The Product is

The Product is High in Quality,
Less Price
Unique Prestige or
Sensitive Exclusiveness
When:

Substitute Products
are Hard to Find

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 Factors Affecting Price Sensitivity

Substitute Business
Unique Awareness Expenditure
Value Effect Effect Effect

Total Price
End-Benefit
Expenditure Quality
Effect
Effect Effect

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 Approaches to Pricing

Cost-Base Break-Even
Pricing Pricing

Value-Based Competition-
Pricing Based Pricing

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 New Product Pricing Strategies

Prestige
Pricing

Market- Market-
Penetration Skimming
Pricing Pricing

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 Existing Product Pricing Strategies

Existing Price-
Product-
Product
Bundle Pricing Adjustment
Pricing Strategies Strategies

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 Price-Adjustment Strategies

Discount Discriminatory Revenue

Pricing and Pricing Management
Allowances

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 Psychological Pricing

Promotional Psychological
Pricing Value Pricing
Pricing

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 Price Changes

Initiating
Price
Changes

Price
Price Cuts Increases

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Distribution Channels
Chapter 12
 Supply Chain

• The Supply Chain consists of Upstream and

Downstream partners
– Upstream partners are firms that supply what is
needed to create a product or service
– Downstream partners connect the firm with its
customers
• A better approach is to think of the supply chain
as a Value Delivery Network where all parties
partner with each to improve the performance of
the entire system

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 Distribution Channel Functions

Information Promotion Contact Matching

Physical
Negotiation Financing Risk Taking
Distribution

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 Major Hospitality Distribution Channels

Hospitality
Distribution
Channels

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 Vertical Marketing Systems

Corporate
VMS

Contractual Administered
VMS VMS

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 Contractual VMS

Contractual
Franchises VMS Alliances

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 Advantages and Disadvantages
of Franchises
Advantages
Brand recognition
Less chance of failure
Premade ads and marketing plans
Faster business growth
Help with site selection
Architectural plans
Support for operational systems
National contracts with suppliers
Product development
Consulting
Help with financing
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Disadvantages
Fees and royalties are required
Limits the products and recipes
Requirements for operating hours
Required to offer certain products
A poorly operated company can
negatively affect the reputation of the
entire chain
Franchisor’s performance affects
franchisees
Some franchisees may benefit more
than others
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 Other Management Systems

Horizontal Other Multichannel

Marketing Management Marketing
Systems Systems Systems

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 Evaluating Channel Alternatives

Economic
Feasibility of Control
the Channel Criteria
Member

Levels of
Costs
Sales

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 Business Location

Understanding Conducting a
the Marketing Regional
Strategy & Analysis
Target Market

Selecting an
Choosing
Area Within
Individual Sites
that Region

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Promoting Products: Communication and

Promotion Policy and Advertising
Chapter 13
 The Promotion Mix

The Promotion
Mix

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 Integrated Marketing Communications

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Elements in the Communication Process

Sender Encoding Message Decoding Receiver

Media

Noise

Feedback Response

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 Steps in Developing Effective
Communication

Identify the Determine the

Design the
Target Communication
Message
Audience Objectives

Select the Select the

Collect
Communication Message
Feedback
Channels Source

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 Buyer Readiness States

Awareness Knowledge Liking

Preference Conviction Purchase

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 Designing the Message

Message
Content

Message Message
Format Structure

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 Communication Channels

Communication
Personal Channels Nonpersonal

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 Setting the Total Promotion Budget

Percentage
Affordable
Budget of Sales
Methods
Competitive Objective
Parity and Task

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 Objective and Task Method

Determine Estimate the

Define Tasks to Costs of
Specific Achieve Performing
Objectives Objectives 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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 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 Short-Term
Purchase
May Not Build Brand
Can Boost Sagging Sales Preference

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 Public Relations

More Public Better

Believable Relations Reach

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 Direct Marketing

Nonpublic Immediate

Customized Interactive

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 Promotion Mix Strategies

Type of Product Push vs. Pull

& Market Strategy
Promotion Mix
Strategies
Buyer Readiness Product Life-
State Cycle Stage

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 Major Decisions in Advertising

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 Advertising Objectives

Advertising
Informative Objectives 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 Message Message

Strategy Execution Decisions

Message
Message Evaluation
Generation 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

Choosing
Deciding Selecting
Among Deciding
on Reach, Specific
Major on Media
Frequency Media
Media Timing
& Impact Vehicles
Types

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 Evaluating Advertising Effectiveness

Communication Measure Sales Effect

Effect

Awareness Effect

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Promoting Products: Public Relations and Sales

Promotion
Chapter 14
 Public Relations Activities

Press Relations

Product Publicity

Corporate Communications

Lobbying

Counseling

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 The Public Relations Process

Establishing Defining the

Research Market Target
Objectives Audience

Choosing
the PR Implementing Evaluating
Message & the PR Plan the Results
Vehicles

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 Marketing Public Relations Objectives

Build Build
Awareness Credibility
PR
Objectives
Stimulate Lower
Sales Force Promotion Costs

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 Evaluating PR Results

Awareness/
Exposures Evaluating Comprehension/
PR Results Attitude Change

Sales-and-Profit
Contribution

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 Build Public Relations Around

The Owner/
Operator

Product or Location
Service

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 Dos of Crisis Management

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 Don’ts of Crisis Management

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 Sales Promotions

Set Sales Select Sales Develop Sales

Promotion Promotion Promotion
Objectives Tools Program

Pretest and
Evaluate the
Implement the
Results
Plan

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 Consumer Promotion Tools
Samples

Coupons
Premiums

Patronage Rewards

Point-of-Purchase (POP) Displays

Contests

Sweepstakes
Games

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Professional Sales
Chapter 15
 Managing Professional Sales

Nature of Hospitality Sales

Sales Force Objectives

Sales Force Structure and Size

Organizing the Sales Department

Recruiting and Training a Professional Sales Force

Managing the Sales Force

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 Nature of Hospitality Sales

Prospecting Targeting Communicating Selling

Maintaining
Information
Servicing Allocating Strategic
Gathering
Partnerships

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 Sales Force Objectives

Sales Force
Objectives

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 Sales Volume

Selected Sales Price /

Segments Volume Margin Mix

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 Sales Force Structure

Territorial

Market Segment

Market Channel

Customer Structured

Combination Structured

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 Sales Force Size

Group Establish Calculate the

Customers Desirable Call Total
into Size Frequencies Workload
Classes

Determine the Calculate the

Average Sales Number of Sales
Calls per Representatives
Representative Needed

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 Organizing the Sales Department

Inside Sales Field Sales

Force Force

Technical Sales Tele- Commissioned Salaried Sales

Support Assistants marketers Reps Force

Team Sales

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 Recruiting and Training a
Professional Sales Force

Importance of Careful Selection

Choose Characteristics that Match the Culture

Match Career Acquisitions with Corporate Objectives

Train the Sales Force

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 Types of Sales Force Training

Product/
Types of Policies,
Service
Sales Force Procedures &
Training Planning

Sales Techniques

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 Managing the Sales Force

Grow
Prevent Grow Key Selected
Erosion of Accounts Marginal
Key Accounts Accounts

Eliminate Provide Lower- Obtain New

Selected Cost Sales Support Business from
Marginal to Selected Selected
Accounts Marginal Accounts Prospects

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 Principles of Personal Selling

Prospecting Presentation
& Preapproach Approach &
Qualifying Demonstration

Overcoming Follow-Up/
Negotiating Closing
Objections Maintenance

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 Motivating a Professional Sales Force

Motivating
Supplementary
Compensation a Sales Motivators
Force

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 Evaluation and Control of a
Professional Sales Force
Set Sales Quotas

Develop Norms for Salespeople

Use Sales Time Efficiently

Manage Trade Shows

Other Control Techniques

Formally Evaluate Performance

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Direct and Online Marketing: Building Customer

Relationships
Chapter 16
 Direct Marketing
• Many companies are adopting Direct Marketing
as a primary marketing approach
– Direct marketers usually seek a direct, immediate,
and measureable consumer response

• Direct Marketing consists of connecting

directly with carefully targeted individual
consumers to both obtain an immediate
response and cultivate lasting customer
relationships
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 Benefits of Direct Selling

Benefits to Customers Benefits to Companies

Powerful Tool for Building Customer

Convenient, Easy & Private
Relationships

Ready Access to a Wealth of Can Target Small Groups or

Products Individual Consumers
Systems & Products that Better Can Tailor Products and Services to
Serve Guest Needs Specific Customer Tastes

Interactive & Immediate Low-Cost, Efficient & Speedy

Alternative for Reaching Markets

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 Customer Databases

Business to Customer Business to

Consumer Databases Business

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 Direct Marketing Builds Relationships

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 Customer Value-Binding Approaches

Structural Ties, Social Benefits &

Financial Benefits

Social Benefits & Financial

Benefits

Financial Benefits

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 Types of Customers

Low Frequency High Frequency

High Try to get these customers These are your best

Profitability to come more often customers, reward them

These customers follow

Some of these guests have
Low promotions – make sure
the potential to become more
Profitability your promotions make
profitable
money

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 Traditional Forms of Direct Marketing

Direct Mail

Kiosk Telephone

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 Digital Direct Marketing Technologies

Mobile Phone
E-Mail
Digital Direct Marketing
Marketing
Podcasts & Technologies Interactive TV
Vodcasts (iTV)

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 Online Marketing Domains

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Setting up an Online Marketing Presence

Placing Ads Creating or

Creating a & Participating
Website Promotions in Social
Online Networks

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Marketing for Hospitality and Tourism
Kotler, Bowen and Makens

Destination Marketing
Chapter 17
 Benefits of Tourism

Direct Employment

Support Industries and Professions

Multiplier Effect

State and Local Tax Revenues

Exports of Locally Made Products

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 Sustainable Tourism

Industry & Sustainable Carbon-

Community Tourism Neutral
Cooperation (Ecotourism) Vacations

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 Events and Attractions

Sports Events
Events
Biking & Marathon Events

Waterfront Attractions
Attractions
Casinos as Attractions

Stopover
Tourism

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 Psychological Determinants of Demand

Sexual
Prestige Escape Education
Opportunity

Social Family Self-

Relaxation
Interaction Bonding Discovery

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 Other Types of Tourism

Agritourism Space Tourism

Types of
Hiking & Pilgrimages Volunteer Vacationing
Tourism
Medical Tourism Genealogical Tourism

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 Classification of Visitor Segments

Group- Visitor Independent

Inclusive Tour
(GIT)
Segments Traveler (IT)

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 Individual Mass Tourists
Explorers
Drifters
Visiting Friends/Relatives
Business Travelers
Pleasure Travelers
Business & Pleasure Travelers
Tag-Along Visitors
Grief Travelers
Education and Religious Travelers
Pass-Through Tourists
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 Functions of
National Tourism Organizations
Flow of Research Data

Representation in Markets

Organization of Workshops & Trade Shows

Familiarization Trips

Participation in Joint Marketing Schemes

Support for New or Small Businesses

Customer Assistance & Protection

General Education

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Online Advertising
Benefits and How-To’s of Online Advertising
The world of online advertising is a revolving door of changes: updated search
algorithms, shifting market trends, changing consumer interests, introduction of new
and better technologies, etc.… This is how advertising always is; there’s always
something new. In this light, there are a series of factors which make it impossible to
continue doing the things the same way. In order to continually be on the cutting edge
of online advertising and to be able to build to best strategies, continual training and
realization of experiments and tests within the current market is required. If you do
this, you’ll have the best campaigns for your business.

The advantages of online

advertising
In order to ensure communication with the target audience and the success of an
advertising strategy, one must invest in online advertising.
The advantages offered by the internet as support for different types of campaigns
(including the fact that there are more and more people using the internet each day)
means nearly every business to wants to leave their mark on the digital world. So,
what are the pros for considering advertising online?
• Impact: In addition to the possibility of heavy segmentation that the internet offers,
all the different medias out there (plus the different peak hours each one has),
provides the potential for making a large impact on the campaign’s target market.
• Optimal measuring: Thanks to the wonderful tools that exist on the
internet, online advertising campaigns can easily measure progress. This differs
from more traditional advertising means in that 'those' metrics are approximated or
limited towards a small portion of the audience. Online advertising metrics, on the
other hand, are incredibly precise.
• Time saver: Even though both ‘online’ and ‘offline’ advertising require time to plan
out a campaign strategy, the execution of online advertising campaigns goes
much faster. In just a matter of minutes, you can have your ads ready across
multiple different platforms and then published moments later.
• Flexibility: Online advertising is characterized, amongst other things, for being
incredibly flexible. You can use any combination of texts, images and/or videos to
reach your target market at any point in their day-to-day lives. If posted on the
right network at the right time, the possibilities are endless. Moreover, options for
native advertising have become practically infinite and are some of the more
‘appreciated’ types of ads by consumers. So long as you have a computer and
internet access, all of the can be done from anywhere in the world!
• Low cost: If you compare the budget for a high impact ‘offline’ marketing
campaign with that of online marketing campaign, the costs of running and online
campaign becomes pretty inexpensive.
• User interaction: The internet also acts as an a aid which allows for direct user
interaction. As opposed to other means of communication, business don’t just
share messages, rather they become receptors, allowing them to hear what their
customers have to say. This two-way street helps companies have a much more
fluid line of communication and to learn more about their clientele’s interests. Even
though this requires more attention on a company’s side, the advantages are
worth it in the end.
• Speed: the rate at which information moves online is another element which
makes online advertising a force to be reckoned with. Although you have to
always be monitoring the metrics, with a good strategy, you can see results with
incredible speed.
• Segmentation: the internet’s ability to reach the target audience via segmentation
by age, interests, sex or other predetermined socioeconomic conditions is
unprecedented. In order to find the right clients, you can simply launch an
advertising campaign focused specifically on the type of person who meets a
handful of pre-established requirements.
Online Advertising Glossary
ad blocking – the blocking of Web advertisements, typically the image in graphical Web
advertisements.
advertising network – a network representing many Web sites in selling advertising,
allowing advertising buyers to reach broad audiences relatively easily through run-of-
category and run-of-network buys.
banner ad – a graphical web advertising unit, typically measuring 468 pixels wide and 60
pixels tall (i.e. 468×60).
banner blindness – the tendency of web visitors to ignore banner ads, even when the
banner ads contain information visitors are actively looking for.
beyond the banner – online advertising not involving standard GIF and JPEG banner ads.
button ad – a graphical advertising unit, smaller than a banner ad.
caching – the storage of Web files for later re-use at a point more quickly accessed by the
end user.
click-through – the process of clicking through an online advertisement to the advertiser’s
destination.
click-through rate (CTR) – The average number of click-throughs per hundred ad
impressions, expressed as a percentage.
contextual advertising – a method of serving advertisements based on the content (i.e.,
overall context or theme) of a web page.
conversion rate – the percentage of visitors who take a desired action.
cookie – information stored on a user’s computer by a Web site so preferences are
remembered on future requests.
cost-per-action (CPA) – online advertising payment model in which payment is based solely
on qualifying actions such as sales or registrations.
cost-per-click (CPC) – the cost or cost-equivalent paid per click-through.
cost per lead (CPL) – online advertising payment model in which payment is based on the
number of qualifying leads generated.
CPM – cost per thousand impressions.
customer acquisition cost – the cost associated with acquiring a new customer.
eCPM – effective cost per thousand impressions (technically, “effective cost per mille”).
frequency cap – restriction on the amount of times a specific visitor is shown a particular
advertisement.
hit – request of a file from a Web server.
house ad – self-promotional ad a company runs on its media outlets to put unsold inventory
to use.
HTML banner – a banner ad using HTML elements, often including interactive forms,
instead of (or in addition to) standard graphical elements.
hybrid model – a combination of two or more online marketing payment models.
impression – a single instance of an online advertisement being displayed.*
interstitial – an advertisement that loads between two content pages.
keyword – a word used in a performing a search.
keyword research – the search for keywords related to your Web site, and the analysis of
which ones yield the highest return on investment (ROI).
keyword marketing – putting your message in front of people who are searching using
particular keywords and keyphrases.
page view – request to load a single HTML page.
pay per click (PPC) – online advertising payment model in which payment is based solely
on qualifying click-throughs.
pay per lead (PPL) – online advertising payment model in which payment is based solely on
qualifying leads.
pay per sale (PPS) – online advertising payment model in which payment is based solely on
qualifying sales.
pop-up ad – an ad that displays in a new browser window.
pop-under ad – an ad that displays in a new browser window behind the current browser
window.
rate card – document detailing prices for various ad placement options.
rectangle ad – any one of the large, rectangular banner sizes suggested by the IAB.
rep firm – ad sales partner specializing primarily in single-site sales.
rich media – new media that offers an enhanced experience relative to older, mainstream
formats.
run-of-network (RON) – ad buying option in which ad placements may appear on any pages
on sites within an ad network.
run-of-site (ROS) – ad buying option in which ad placements may appear on any pages on
sites within an ad network.
search retargeting – the use of a site visitor’s search history as a basis for the ads that the
visitor will see.
self-serve advertising – advertising that can be purchased without the assistance of a sales
representative.
skyscraper ad – an online ad significantly taller than the 120×240 vertical banner.
sponsorship – advertising that seeks to establish a deeper association and integration
between an advertiser and a publisher, often involving coordinated beyond-the-banner
placements.
stickiness – the amount of time spent at a site over a given time period.
surround session – advertising sequence in which a visitor receives ads from one advertiser
throughout an entire site visit.
text ad – advertisement using text-based hyperlinks.
trick banner – a banner ad that attempts to trick people into clicking, often by imitating an
operating system message.
underdelivery – delivery of less impressions, visitors, or conversions than contracted for a
specified period of time.
unique visitors – individuals who have visited a Web site (or network) at least once in a fixed
time frame, typically a 30 day period.
vertical banner – a banner ad measuring 120 pixels wide and 240 pixels tall.
Web site traffic – the amount of visitors and visits a Web site receives.

Online advertising figures and

statistics
Even though the presence of many companies has already been well established
online, there are still some businesses that are reluctant to invest in online
advertising. Is this you? After learning about the different advantages online
advertising offers, we think the data and stats below can help further convince you to
take the final step.
1. 84% of mobile platform advertisers believe that they offer a positive experience for
their users. Just under 50% of users agree.
2. 61% of consumers refuse to return to a website with which they had a bad user
experience. 40% confirm they end up visiting their main competitors’ sites.
3. The online world is already completely dominated by mobile devices and all new
data consumption come from these devices.
4. The average amount of time internet users spend on social medias is 2 hours per
day.
5. On average, companies respond to just 1 out of every 8 messages received on
social medias within any give 72-hour period.
6. Businesses that use social medias as a part of their online advertising strategies
get a 129% higher conversion rate.
7. Companies who both write and comment on reviews on social medias see a 69%
increase in their customers's buying behavior.
8. It’s predicted that by 2019 videos will take up 80% of internet traffic.
9. Almost a third of newsletter subscribers read newsletters on their phones.
10. The CTR of native advertising ads is more than twice as much as classic online
advertising: 33% on phones and 16% written.
11. Retargeting increases the willingness of a buyer’s purchase 70% of the time.
12. Less than 30% of small businesses use web analysis tools.
13. Company directors estimate investments in online marketing will increase about
14.7% next year.
14. The top 4 online marketing sources that offer the highest budget increase are:
email marketing (61% of businesses have invested more), social medias (up to
49% of businesses), mobile marketing (40%) and SEO (38%).
15. For each dollar invested in email marketing strategies, the average ROI business
yield is $40.

What does the future of online

advertising look like?
All that you’ve seen until now is either all that has happened or is happening.
However, as we previously mentioned, the world of online advertising is forever
changing. This leads us to ask ourselves: where we are going? What will the future
of online advertising look like for your company? There are various current trends that
seem to give light to these questions; it makes you wonder how much things will
change in just a few years.
• Agencies specialized in data analysis. It’s estimated that up to 10% of money
invested on advertising worldwide ends up getting spent on ads no one ever sees.
In this light, the future will include agencies specialized in data control, the
blocking of fraudulent traffic and the elimination of this excessive spending.
• SEO Marketing App. This technique aims to bring together two different concepts
necessary for achieving a higher number of users for any app. On one side is
ASO, which works to position an app within the top positions on mobile market
places (i.e. the App Store, Google Play Store, etc…), and the on the other side is
SEO. The latter seeks to make an app show up within the top positions of search
engines when users type in certain keywords.
• Advertising on Instagram and Facebook. The biggest social network in the
world is also the owner of Instagram. Currently, Facebook is promoting the
combined use of both platforms in order to create campaigns which work between
themselves and we will surely be seeing more of this in the coming years.
• Virtual Social Networks. If the social medias of today didn’t seem like they could
go any further a few years ago, now, with the arrival of virtual reality, a whole new
world is about to begin. With a personalized experience for each user, the world
of online advertising will have a field day with the endless innovative possibilities
at their disposal.
• Artificial intelligence applied to campaigns. Automatization exists among many
online marketing processes. The future is promising on the improvement of this
aspect, which would also allow for more fluid client communication and improved
use of time.
Online advertising is the present, but the future of online communications promises
a great number of resources necessary to be a cutting-edge company that effectively
connects with their target market.

Types of Online Advertising

• 1. Native Advertising: This term is associated with more unconventional online
advertising. In other words, it uses a strategy which shies away from banner
formats or sponsored content in an attempt to win a user’s trust by offering them
solutions to their problems. There are many tools you can use but the easiest of
 them all is to create a blog. In your blog, talk about topics related to the sector, but
not solely about advertising; include something useful and interesting for your
users. From there, using SEO, email marketing and lead nurturing, you can
successfully offer the right content in whichever stage of the sales funnel potential
clients may find themselves. The best thing about these formats is that they’re in
no way intrusive and, therefore, are more highly valued by both the general public
and by those who resort to using ad blockers.
• 2. SEM (Search Engine Marketing): With this type of campaign, the goal is to
achieve increased brand awareness in a very short amount of time. All it takes is
an ad with a title, a description and a call to action; not to mention, make sure to
heavily rely on the use of keywords. Depending on the quality of the website and
the established CPC, the ad will be shown when users type in your preselected
keywords into a search engine. In this case, a bid (usually) based on CPC is
established.
• 3. Display Advertising: Among the more ‘visual’ online advertising formats are
display ads. They are called this because they, generally, contain images or
videos and are published on designated places within any given website. It could
be a blog, journal or a site aimed at a specific group. The purchase can be direct
or through platforms such as Google Adwords. The cost is estimated by way of
CPC or CPM
• 4. Mobile Advertising: Although there are many formats of mobile advertising, it’s
recommended that all advertising campaigns should also be adapted to mobile
platforms or at least follow a responsive typology which allows for pages to be
formatted to the size of any given screen. Nowadays, everyone has a phone
and/or a tablet that they constantly use. Moreover, they use these devices to
access the internet. In fact, as of 2016, Google said mobile traffic has now
surpassed that of desktop computers. Therefore, if you’re still not investing in
mobile platforms, it’s time to take the plunge. Not only will you get both a better
reach and an improved user interaction but, in a complimentary way, you’ll
improve your SEO by way of Google’s Mobile First algorithm in ads you show on
your own website.
• 5. Social Ads: Social media is an incredibly important part our everyday lives; it is
made up of channels through when people connect multiple times a day and
where they frequently communicate, share and give opinions. Creating ad
campaigns on these platforms, therefore, is necessary for generating brand
awareness and for acquiring potential new clients. Furthermore, thanks to wide
segmentation possibilities social networks offer, they can also be the perfect
places to launch new products/services geared towards very specific audiences.
Moreover, regardless if your goal is to make conversions or to implement a
branding strategy, Social Ads are a great choice!
• 6. Retargeting and Remarketing: Reminding repeat customers/users who have
shown interest in your company is a solid strategy for making conversions.
Remarketing works to make your banner appear on the whichever website those
who have previously visited your website are actively visiting (provided that these
sites offer remarketing spaces). These types of ads are good for making sales but
also are helpful in gaining brand awareness, which improves a company’s
 presence within the consumer’s buying process. It can be purchased through
search engine advertising management tools such as Google Adwords. The price,
in this case, is usually established by CPC metrics.
• 7. Email Marketing: This format of marketing isn’t anything new but
it has resurfaced with a renewed potency. This type of campaign in Spain yields
among the highest numbers of conversions in Europe. Thanks to the many
automatization tools available, you can achieve highly profitable conversion goals.
Finally, If you consider that getting a new client it is over 7 times more expensive
than maintaining a current one, you can be sure that email marketing is a grand
idea.
• 8. Digital Signage: Although the name may be not as well known, it’s slowly
creeping in to the lives of users and will soon to be a shared reality in the coming
years. To put a definition with the name, we could say that this is the technological
evolution of traditional outdoor advertising. They are used on billboards, MUPIs,
window displays, telephone booths or any other stand that has a screen. The
efficiency of this type of advertising resides in its capability to grab the attention of
potential clients during the most mundane parts of their day.
• 9. Videos Marketing: Video content is an incredibly entertaining resource for
users. This being said, using videos as an advertising strategy is an fantastic idea.
Another idea is to partner up with YouTubers who feature and discuss your
product/service (similar to native advertising). You can also come up with original
video content to help you get a better and more organic position on SEO.
Furthermore, by sharing these videos, you can gain more direct web traffic and
increase your chances of one or more of them going viral. With videos, there are
countless possibilities, even more so if you bear in mind that soon, if not already,
an estimated 80% of the internet will be video-based content.
These are the types of advertising which exist right now. However, they could easily
multiply in the coming years. With the combined progress of technology and the
internet, we could see growth in the number of future business advertising options.

Facebook Ads
What are Facebook Ads and what are the advantages of Advertising on
Facebook?

Currently, Facebook is the social network with the highest number of active
users in the world. So, don't let the opportunity to advertise with Facebook Ads slip
by!
To talk about Facebook’s stats means also talking about its success too. By the end
of 2016, there were approximately 1.23 billion active Facebook users each day.
Monthly data shows Facebook has already reached 2 billion users, showing an
increase from 18% in 2015 to 23% in 2016.
Facebook Ads are very much booming right now. It’s not just a fad, nor is it by sheer
coincidence that a large portion of businesses chose to use Facebook Ads. The
target audiences of practically every business can be found on Facebook, offering a
quick, economic and effective way of reaching users with promotional messages. Ads
can be incredibly personalized and, thanks to the information Facebook gathers
about its users, you can even create campaigns oriented towards a very precise
target audience. From there, the success you can have by using Facebook Ads is
nearly limitless.

What is advertising on Facebook

(i.e. Facebook Ads)
Launching an advertising campaign on Facebook means promoting your
business, product or service throughout the entirety of the vast network. Thanks to
Facebook’s advertising tools, you can easily set up an attractive Facebook Ad! All it
takes is a message with a eye-catching picture/video that can capture the attention of
your audience. If you have tried other ways of online advertising such as Google
Adwords in remarketing, you will see there aren’t any big differences between the
formats.
To make Facebook Ads means both having a budget to invest in ads and having a
message to share with your audience. Although you can make sponsored ads
focused on all Facebook users, the recommendation is to have your target
audience well-defined in order to best segment the campaign and get the best
results.

Why should your business use

Facebook Ads?
There are many reasons why you should implement a Facebook Ads strategy. In
fact, Facebook Ads have a ton of advantages you should be aware of:
• Audience segmentation. Thanks to the data Facebook gathers about its users,
it’s actually quite easy to segment the ads you want to create. No matter the target
audience, you’ll find it on Facebook. From there, you’ll be able to exclusively go
to them.
• Going viral. Even though you pay per click with each ad, users can help you save
lots of money if they share your ad with their friends. That is, the reach of
Facebook Ads is not limited to just the payment, it also has the capacity for greater
impact based on the behavior of your potential clients.
• Interactive ads. Beyond just promoting your products and services, you can also
launch interactive ad campaigns which allow you to acquire important data
regarding your audience. A good example might be a raffle for an upcoming leads
campaign.
• Price. Facebook Ads are highly economical. You only pay per click and/or
conversion earned.
• Measurement. Pretty much everyone who invests in advertising wants to know
how to spend their money and how to measure their investment's efficiency. With
 Facebook Ads, this data will come quite easily thanks to the integrated statistics
panel offered completely free of charge.

What kinds of ads are there on

Facebook?
On Facebook, you can promote just about anything. Everything from an external
page, to an app, to an event or even a specific place. However, before launching a
Facebook Ad, it’s important to define the ad’s primary objective. Only in this way can
you adequately decide how you will pay and the type of campaign you should run.
Based on your objectives, you should utilize some kind of Facebook Ad. Although
you will find out about the different types of campaigns that exists within Facebook in
the following section, you should also define whether you will pay per click (CPC) or if
you will pay per impression (CPM).
CPC is ideal if you are going to generate traffic towards Facebook or towards an
external website, looking for visits or conversions. CPM, however, is better if you
intend to simply increase the overall brand visibility.

Types of campaigns you can

launch using Facebook Ads
Although you already know what Facebook Ads and their advantages are, there’s still
one more important thing left to discuss before you launch a Facebook Ad
campaign: the types of advertising that exist on Facebook. Though it may appear
to be something pretty simple, there are actually up to 14 different types of paid ads
available. Let's check them out:
• 1. Promote your posts. This Ad aims to promote your website or Facebook page.
• 2. Promote you page. This Ad is positioned to raise awareness regarding your
website.
• 3. Reach people near your business. This Ad is an ad focused on appearing to
users who are geographically close to your business. Just an address will be
sufficient in order to configure the ad and, then, you should start to see more
visits.
• 4. Increase brand recognition/awareness. In this case, the Ad acts as a
‘corporate ad’ which aims to reach the people most likely to pay attention to your
company.
• 5. Attract people to your website. This Ad offers the advertiser the possibility of
getting more traffic to their website.
• 6. Increase App downloads. As the name implies, this Ad invites users to
download a specific App.
• 7. Increase the number of attendees at your event. This ad aims to promote a
specific event with the end goal being to increase the number of event
participants.
• 8. Increase the number of a video’s views. This Ad is aimed towards ads that
utilize a video. The end goal of this kind of ad is to increase the number of the
video’s views.
• 9. Generate potential clients. This model of Facebook Ads is geared towards
acquiring leads.
• 10. Boost the number of conversions on your website. With this type of Ad, the
intention is to increase the conversions of a specific marketing action.
• 11. Increase App interaction. If you want more users to either use or interact with
your app, this is the Facebook Ad for you.
• 12. Get people to use a special offer. This type of Facebook Ad aims to
promote a special offer just for Facebook users.
• 13. Promote a catalogue of products. If you have a catalogue of products or
services that you want people to know about, this Ad is your best bet!
• 14. Get people to personally visit your business. This Facebook Ad is geared
towards people who are geographically close to your business’s location with the
goal of increasing the number of in-person visits.

What are Twitter Ads?

Advertising on Twitter, simply put, is promoting your company’s advertising
content on Twitter – hence Twitter Ads. Even though all Twitter Ads are tagged
with the phrase, “Promoted”, they look like every other non-sponsored tweet. The
goal of launching a promotional campaign on Twitter is to increase the reach of your
posts. At the same time, and thanks to social medias’ ability to segment audiences
extremely well, you can focus on getting those users who comply with your target
audience.
Twitter Ads works similarly to advertising on Google AdWords. However, in lieu
of establishing pay/cost per click (PPC/CPC respectively), a ‘cost per engagement’
(CPE) formula is implemented. This simply means that you only pay when users
interact with an Ad; in other words, when a user clicks on it, expands it, RTs it,
favorites it or responds to it.

Types of Twitter Advertising

Campaigns
Twitter is a worldwide social network where any business could find their target
audience. For this reason, there are different kinds of campaigns you should be
aware of. At any rate, and before deciding on anything, we recommend you clearly
identify and analyze your business goals. Then, you will be able to increase your ROI
(return on investment) by the end of the campaign.
• Followers: if you wish to be seen more on Twitter and increase your number of
followers, this is the type of campaign you’ll want to use.
• Clicks to your website/for making conversions: if you plan to use Twitter as a
means to generate more visits to your website, or perhaps increase your number
of conversions, this campaign is the one for you.
• Interactions: this campaign is Twitter’s biggest weapon if your plan is to increase
brand awareness and make some noise online.
• Downloading/Use of Apps: if you have an App you want users to either know
about or use more, this campaign is your best bet.
• Lead Generation Cards: these cards allow you to get leads on Twitter so that,
later, you can create targeted promotional campaigns. Additionally, this type of
campaign could suffice as a means to obtain users’ emails; they will not have
leave the platform in order to give you their info.
• Video Playback: this campaign is ideal for launching video content on Twitter and
also holds the most potential for going viral.
• Personalized: this is the most ‘frequent’ type of campaign Twitter Ads offers. It’s
perfect for advanced users or for businesses that want to combine the better parts
of various options.

The Top 5 Advantages for Using

Twitter Ads
You’ve surely read about the advantages of social medias more than once in your
lifetime. However, in this case, we want to specifically tell you about the advantages
of Twitter Ads campaigns. Twitter’s characteristics include some “pros” which other
social media platforms either don’t have as much success with or don’t have at all.
Want to find out what they are?
• Immediacy: Twitter is the ‘microblogging’ social network and is primarily
characterized by its shortness. On Twitter, the “here and now” is what’s important.
In this sense, the obtained results (assuming everything is well-planned) come
quickly.
• Effective Business Goals: thanks to the different types of campaigns offered
by Twitter Ads, (in addition to its massive network of users), it’s quite easy to put
together attainable business goals with the help of Twitter Ads. As an added
bonus, you can also measure the progress/statistics of your ads.
• User integration: even though advertised tweets are tagged with the word
“Promoted”, (which is clearly visible amongst ‘organic tweets’), they are
seamlessly integrated within a user’s timeline and offer the same reactionary
options as non-promoted tweets (e.g. RT, like, etc.)
• Multi-display and mobile version: Twitter allows for a perfect viewing experience
regardless of the screen size/type; it's also perfectly optimized for cell phones.
This is extremely relevant today and it will be even more so in the future since,
every day, there are more and more people using their phones instead of their
computers.
• Better CTR: various studies have concluded that Twitter Ads have a better CTR
maintained over time. Compared to the rest of the social media networks, Twitter
Ads seem to be more effective in this field. This could be due to the fact that there
are less companies taking advantage of Twitter than there are with other social
networks (which are already quite saturated).
Good practices for increasing ROI
with Twitter Ads
In general, your ROI allows you to measure the efficiency of any given advertising
investment and Twitter Ads is no exception; advertisers want to get the best results
too! In this sense, there are many recommended practices for
implementing your Twitter Ads strategy. Now, let’s go over some of the elements we
think you should keep in mind.
• 1. The ‘now’ of social media. What’s important with Twitter is the here and now.
If you take advantage of this immediacy and include, for example, mentions of
current happenings on your feed, offers that ‘only last for a few more hours’ or
breaking news, the ROI of your Twitter Ads will increase.
• 2. Power in numbers. Although "twenty" and "20" are exactly the same thing,
visually speaking, the number itself has more power (even more so if you’re
referencing a discount or a percentage of a discount). The recommendation is
to always use this option; consequently, it also means using less characters than
writing out the full word. Needless to say, carefully choosing each character on
Twitter is of the upmost importance.
• 3. Newness makes magic on Twitter. If something is new, there’s a much bigger
chance of it doing extremely well if you're using Twitter Ads. Therefore, make
sure to keep your audience in the loop when you talk about something new and
exciting!
• 4. Chance triumphs in micro-blogging. Practically everyone likes to try their luck
to win the lottery/raffles; furthermore, on Twitter, these types of publications are
also well received. So, if your business goals fit this type of campaign, don’t
hesitate to it to better your ROI!
• 5. Questions and/or polls: another helpful Twitter tool is in relation to interaction
and generating engagement. Any type of general question/poll which requires a
response on the user’s part can help to achieve both your business’s objective(s)
and to increase your overall brand awareness.
• 6. A picture is worth more than a thousand words with Twitter Cards: Twitter
allows you to integrate more formats than just text with the help Twitter Cards.
With Twitter Cards, you can include any kind of necessary information in order to
improve engagement or increase the ROI of your Ad. Tweets that have extended
formats get 52% more RTs and 313% more interaction.

What are Instagram Ads?

Instagram currently has more than 1000 million active users. This, however, is
just one impressive stat: it’s also the second most used social network (behind
Facebook) and the fastest growing network in recent years.
Nowadays, advertising on Instagram is an absolute must for most companies
• According to Statista.com, there are over 107,2 million Instagram users in the United
States alone; a number only expected to grow.
• Over 40 billion pictures have been posted on Instagram…so far.
• About 59% of internet users 18-29 years old use Instagram and about 33% of internet
users 30-49 years old use Instagram.
• Instagram has undoubtedly become the perfect place for discovering new content:
articles, videos, pictures of friends, the daily lives of celebrities, brand posts, etc.
• Instagram’s platform allows us to carry out campaigns tailored to each stage of the
conversion funnel.
With such numbers, it’s clear that Instagram Ads are a force to be reckoned with in
order to reach your target market and to improve your business’s goals, sales and
brand awareness.

What are Instagram Ads?

Instagram Ads are a way for companies to advertise themselves by way of pictures
and visual content on Instagram. There are many different ways to create these
campaigns, something which we will discuss more in depth in the coming paragraphs.
Launching an Instagram Ads campaign requires you to have a Facebook
advertising account (if you already use Facebook for promotional purposes, you can
use the same login), or you can open “Instagram for Business” account. Instagram
Ads are managed via Instagram Ads Manager or Facebook Power Editor.

What kinds of Instagram Ads are there and where are they
shown?
Although Instagram Ads are promotions on social media, not all of them work the
same way. Therefore, it’s important you have a solid understanding of the basic
concepts before starting a campaign. Instagram Ads appear on the newsfeeds of
users you have selected to be a part of your target audience. These posts will be
clearly labeled as “Sponsored”. In order to decide if an ad will be shown or not, a
selection criteria, based on bids and user relevance, is followed.
In addition to this, it’s important to be familiar with the different types of Instagram
Ads which are at your disposal. Depending on your business’s goals, some ads may
prove to be more helpful or relevant than others:
1. Ads with pictures: as the name suggests, these advertisements are ads which also
include a photographical element. The visual aspect of Instagram is crucial and, thanks to
the clean platform interface, any image can be converted into a much more attractive
format.
2. Ads with videos: if you want to offer a full user experience, video-based Instagram Ads
are a fantastic option. The rest of the parameters remain the same but, as the name
suggests, instead of a picture, a video is shown to the target market.
3. Sequential Ads: if what you’re needing is to show your target audience a series of
pictures or videos, this type of Instagram Ad is your best bet.
Types of Instagram Ads according to your Goals
Once you have understood what kind of Instagram Ads there are and where they
are shown, you can begin to take the next step in the creation of your own Instagram
Ads. The next step deals with understanding what kinds of campaigns you can run
based on your business’s goals and objectives:
• Awareness: this type of campaign is geared towards brand awareness. If you intend to
further increase your reach, as well as the frequency of how often users ‘remember’ you,
 we recommend to use this type of campaign. This campaign is also well-suited for local
dispersion.
• Consideration: we recommend this type of campaign in order to achieve objectives
related to getting clicks on your website and for presenting yourself as a worthy adversary
during the consideration stage of the buyer’s journey. You can also improve your reach
and rate of interaction within your target market.
• Conversion: if what you’re looking for is App interaction, content downloads, lead
acquisition or sales accrual, this campaign is without a doubt the best option.
In addition to the types of Instagram Ad campaigns and the different kinds of Ads
available, it’s very important to have your business goals and the best-suited
platforms before creating your Instagram Ads.

How to propel your brand forward

with Instagram Ads
Once you have fully grasped the way Instagram Ads work, it’s helpful to know how
you can use them to your benefit, thus propelling your business forward. Now, we’ll
explain some of the benefits in store for your company if you chose to use Instagram
Ads:
• Improve your visual impact: getting your target audience’s attention by way of an
advantageous position on their newsfeeds is rather easy on Instagram - even more so
you if launch campaigns with high quality pictures and video.
• Branding: due to the importance of the ‘visual’ element of Instagram Ads, advertising
campaigns can be an enormous help to your company’s overall brand awareness within
your target audience.
• Community growth: Instagram Ads can also help you grow your brand’s community.
This means promoting a new line of direct communication which, in turn, could increase
the frequency of sales as well as improve brand association within your target market.
• Intentional marketing actions: ads can also become a tool for furthering certain
marketing strategies; you can use them as a means to introduce new products, offer a
secondary service or even allow your clients to get a free product sample.
• Contests/Giveaways: Everyone likes a good contest. That being said, contests and
giveaways are perfect for getting leads that, later, can be worked into an email marketing
strategy. As an added bonus, contests and giveaways also helps to boost your brand
awareness.

LinkedIn Ads
What are LinkedIn Ads and what advantages does advertising on LinkedIn hold
in store for your business, product or service?
LinkedIn Ads can be highly effective both for reaching a professional target audience
or for B2B campaigns. LinkedIn, as you may already know, is the quintessential and
professional social network on a global scale. With this said, make sure to dedicate a
part of your budget towards advertising on LinkedIn!
Though LinkedIn doesn’t have nearly as many users as Facebook has, profiles found
on LinkedIn are exclusively those of professionals; profiles like these are almost
impossible to identify in the same capacity on other social media platforms.
As time goes on, it becomes more and more challenging to stand out as a
business without the aid of LinkedIn Ads.

What are LinkedIn Ads?

LinkedIn Ads, as the name implies, are paid advertisements shared on
LinkedIn. There are three main types of LinkedIn ads available that can be adapted
to any company objective or goal. In order to have success with LinkedIn Ads, it’s
necessary to have your goals well defined.
Furthermore, it behooves each company to analyze whether or not LinkedIn Ads are
actually the right medium for achieving their goals. To squeeze the most out of the
best, professional social media platform in the world is not easy but, if you strategize
well, it can yield incredible results.

12 Advantages for Advertising with

LinkedIn Ads
• LinkedIn and LinkedIn Ads have unique traits which make them different from
the other social networks. If you advertise with LinkedIn Ads, these traits act as an
added advantage for your company.
• Business opportunities. LinkedIn Ads can help you reach both professionals
and/or people within the same sector who are a part of their company’s decision-
making process. It’s a wonderful opportunity to connect with a well-defined and
specified target audience.
• Connect with professionals and leaders within your field. It’s not always easy
to promote campaigns towards those within the same field. However, with
LinkedIn Ads, the process is simplified!
• Give and receive recommendations from your 'Connections'. LinkedIn also
offers the option of exchanging recommendations and opinions between
‘Connections’ (i.e. contacts). This is a surefire way of improving
both your reputation and that of others.
• Opinions, discussions and forums. There are tons of specialized groups on
LinkedIn focused on what truly interests people within a given target market. You
too can join these groups! As a part of these communities, you can learn about the
most recent innovations within your sector, positioning yourself to be an up-to-date
and informed person within your area of expertise.
• Find the perfect people. LinkedIn Ads are perfect for reaching clients, contacting
providers and for recruiting new ‘talent’ for your company.
• Promotion of your products and/or services. LinkedIn Ads make it easy for you
to showcase your products/services to a sector clearly defined as your target
market.
• Track profile visits. LinkedIn Ads will often generate visits and direct contacts via
your profile. Thanks to LinkedIn’s integrated statistics software, these actions are
easily trackable.
• Networking and traffic. Networking is LinkedIn’s greatest strength. Furthermore,
if you decide to share quality content with your connections, you can also direct
quality traffic towards your website and/or blog.
• Job listings. Even though job listings can be found on other websites as well, on
LinkedIn you can review the profiles of those who match specific qualities who are
already using the network as digital supplement to their résumé. This being said, it
would be hard not to find the right candidates on LinkedIn.
• Professionals who offer diverse expertise. LinkedIn is full of people with
varying expertise within your sector. You can learn from them as well as use them
as reference for implementing new ideas and for improving your own company.
• Connect with other social medias or with your blog. LinkedIn can also be used
as an added source of connection. It can easily integrate into your website and
can greatly complement it as well. At the same time, it can serve to help as an
extra aid in generating content on other social networks.
• Promotion of courses, seminars and conferences. If you’re going to host a
specific training course, LinkedIn is the best place to recruit people and/or those
interested in attending.

The cost of LinkedIn Ads (the

secret is in optimization)
Some companies that have tried out LinkedIn Ads (without knowing much about the
way they work) have come to the conclusion that LinkedIn Ads are “expensive”. With
that said, we want to explain more in detail what the minimum budget requirements
are. Additionally, we what to call attention to the fact that the key to achieve success
here is in the optimization.
The minimums available on LinkedIn Ads:
• Daily budget of $10.00: per campaign.
• Total budget of $10.00: per campaign (an optional feature of sponsored content)
• Minimum bid of $2.00: per CPC or CPM.
What do these prices mean for LinkedIn Ads? In other words, it means you cannot
spend more than $10.00 a day, nor can you create a campaign for less. At the same
time, it is established that, at least, the CPC/per 1,000 impressions would be equal
$2.00.
This may seem to be quite expensive if you compare LinkedIn Ads with other
social networks. But remember, the most important part is not that you pay per
click/impression, but that you run a successful campaign. How do you run a
successful campaign? Maximal optimization of bids and focusing the budget towards
ads that will provide the best results.

3 Types of LinkedIn Ad Campaigns

• Sponsored content. These are ads which promote content. Using special links,
they can be posted on LinkedIn, your blog, your website or on any other platform.
The goal here is to increase brand awareness; we want to get people talking about
you/your business and to be contacted/followed by people interested in the sector.
• Sponsored InMail. These Ads can be used to send personalized messages to a
specified audience by way of LinkedIn Messaging. This service is very useful for
offering specialized content that could result in leads and, through the presentation
of your company’s products/services, conversions.
• Text Ads. If you're familiar with Google Ads, or you’ve created an ad on another
social network before, then you already know how LinkedIn Ads work: They center
on creating an attractive text ad that helps to lead members of your target market
to your website, to a product landing page or to any other pertinent webpage
designed to help you get leads and/or make conversions.