Chapter 13

Promotion Products:

• Establish image
• Change image
• Generate sales
• Send messages to public
• Inform, Persuade, Remind customers about
products

1
 Promotional Objectives
• Communicating Information
• Positioning Products
– Positioning is the process of establishing an
identifiable brand image in the minds of
consumers
• Adding Value
• Increasing Sales Volume

2
 Promotion Products
• A company has a good product is not
enough. It will not generate any sales unless
the consumers are aware of the product’s
existence and also can access to the
product. This is where Promotion comes to
play its part. Promotion helps to get the
message of the product out so consumers
are aware of it and want to purchase it.
3
 Elements in the
Basic Communications Process
• Sender
• Encoding
• Message
• Decoding
• Receiver
• Response
• Noise
• Feedback
 Integrated Marketing
Communication(IMC)
• Integrated marketing communication refers
to integrating all the methods of brand
promotion to promote a particular product
or service among target customers.
• In integrated marketing communication, all
aspects of marketing communication work
together for increased sales and maximum
cost effectiveness.
5
 Integrated Marketing
Communications
Advertising Personal selling

Sales promotion
Public relations

Direct marketing

6
 Major Promotion Tools

1) Advertising: any paid form of non-personal presentation

and promotion of ideas, goods, or services by an identified
sponsor.
2) Sales promotion: short-term incentives to encourage
purchase or sales of a product or service.
3) Public relations: building good relations with the
company's various publics by obtaining favorable publicity,
developing a good corporate image, and handling or heading off
unfavorable rumors, stories, and events.
4)Personal selling: oral presentation in a convention with one or
more prospective purchasers for the purpose of making sales.
5)Direct Marketing- Direct marketing uses consumer-direct channels
to reach and deliver offerings to consumers without intermediaries 7
 Steps in Developing Effective
Marketing Communications

1. Identify target audience

2. Determine objectives of communication
3. Design the message
4. Select communication channels
5. Selecting the message source
6. Measure communication’s results
 Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives

Buyer Readiness Stages

Awareness
Knowledge

Liking

Preference

Conviction
Purchase
Purchase

9
 Steps in Developing Effective
Communication
Step 3. Designing a Message

Message Content
Rational Appeals
Emotional Appeals Message Structure
Moral Appeals Draw Conclusions
Argument Type Message Format
Argument Order Headline, Illustration,
Copy, & Color
Body Language

10
 Steps in Developing Effective
Communication

Step 4. Select the Communication Channels

Personal Communication Channels Non Personal Communication Channels

Face to Face, Telephone, Presentation Print, Broadcast and Display Media

Step 5. Selecting the Message Source

Step 6. Measure the Communication’s Results

11
 Setting the Total Promotion
Budget
One of the Hardest Marketing Decisions
Facing a Company is How Much to Spend on
Promotion.
Affordable Percentage
Percentage of
of Sales
Sales
Based on What the Based
BasedononaaCertain
CertainPercentage
Percentage
Company Can Afford of
ofCurrent
Currentor
orForecasted
ForecastedSales
Sales

Objective-and-Task
Objective-and-Task Competitive-Parity
Competitive-Parity
Based
BasedononDetermining
Determining Based
Basedon
onthe
theCompetitor’s
Competitor’s
Objectives
Objectives&&Tasks,
Tasks,Then
Then Promotion
PromotionBudget
Budget
Estimating
EstimatingCosts
Costs

12
Factors in Setting Promotion
Mix
Strategy
Selected
Strategy that Depends Strategy that
Calls for on: Calls for Using
Spending A the Salesforce
Lot on Type of
Product- and Trade
Advertising Promotion to
and Market &
Push the
Consumer Product Product
Promotion to Life-Cycle Through the
Build Up Stage Channels.
(Pull)
Consumer 13
 Factors in Setting Promotion
Mix (cont’d)
• Product-Life-Cycle Stage
– Introduction
– Growth
– Mature
– Decline

14
 What is Advertising?

Advertising is Any Paid

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

15
 Major Advertising Decisions
Message Decisions
•Message Strategy
•Message Execution

Objectives Setting the

Setting Budget Campaign Evaluation
•Communication •Communication Impact
objectives •Sales Impact
•Sales Objectives

Media Decisions
•Reach, Frequency, Impact
•Major Media Types
•Specific Media Vehicles
•Media Timing

16
 Setting Advertising Objectives
Informative Advertising
Inform Consumers or
Persuasive Advertising
Build Primary Demand Build Selective Demand

Reminder Advertising
Keeps Consumers Thinking
About a Product

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 17
 Setting the Advertising Budget
• Company specific factors to be
considered when setting the
advertising budget:
– Stage in the product life cycle,
– Competition and clutter,
– Market share,
– Advertising frequency,
– Product differentiation.
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 Message Decisions

Message
Generation

Message Evaluation
&
Selection

Message Execution

19
 Media Decisions
Step 1. Decide on Reach, Frequency,
and Impact

Step 2. Choosing Among Major Media Types

Media Habits of Target Consumers,
Nature of the Product, Types of Message, Cost

Step 3. Selecting Specific Media Vehicles

Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media Timing

Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing

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 Campaign Evaluation

Measuring Measuring
the the
Communication Effect Sales Effect

21
 What Is a Sales Promotion?
Short-term promotional activity
designed to stimulate consumer
buying or cooperation from
distributors, sales agents or other
members of the trade

22
 Sales Promotion

Major Consumer-Promotion Tools

• Samples • Free trials
• Coupons • Product warranties
• Contests/Sweepstakes • Point-of-purchase
• Bonus packs displays and
• Loyalty program demonstrations
• Cash refunds (rebates)
• Premiums
 What Is Publicity?

Promotional tool in which

information about a company
or product is transmitted by
general mass media
Publicity is free
Publicity can be good or bad

24
 What Is Public Relations?

Company-influenced publicity
directed at building goodwill
with the public or dealing with
unfavorable events

25
 Public Relations

Major Public Relations Tools

• Publications • Speeches
• Events • Public-service activities
• Sponsorships
• News
 Direct Marketing
• Direct marketing uses consumer-direct
channels to reach and deliver offerings to
consumers without intermediaries.
• Direct marketing is growing and offers
consumers key benefits.
• Firms are recognizing the importance of
integrated direct marketing efforts.
 Public Relations

Major Direct Marketing Tools

• Face-to-face selling • Direct-response
• Direct mail TV marketing
• Catalog marketing • Kiosk marketing
• Telemarketing • E-marketing
 Personal Selling
Direct person-to-person communication whereby a
seller attempts to assist and/or persuade perspective
buyers to purchase a product or service

• Advantages of personal selling • Disadvantages of personal selling

– Direct contact between buyer and – High costs per contact
seller allows for more flexibility – Expensive way to reach large
– Can tailor sales message to specific audiences
needs of customers
– Allows for more direct and immediate – Difficult to have consistent and
feedback uniform message delivered to all
– Sales efforts can be targeted to customers
specific markets and customers who
are best prospects.