1Promotional Mix

Marketing means anticipating, and meeting customers needs

2Integrated Marketing Communications

Personal selling

Public relations

Direct marketing

Sales promotion

Advertising

BASIC ADAPTABLE

3AdvertisingAdvertising

Personal Selling

Personal Selling

SalesPromotion

SalesPromotion

PublicRelations

PublicRelations

DirectMarketing

DirectMarketing

Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive

Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive

Personal Interaction, Relationship Building, Most Expensive Promo Tool

Personal Interaction, Relationship Building, Most Expensive Promo Tool

Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived

Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived

Very Believable, Dramatize a Company or Product, Underutilized

Very Believable, Dramatize a Company or Product, Underutilized

Nonpublic, Immediate, Customized, Interactive

Nonpublic, Immediate, Customized, Interactive

Setting the Promotion Mix

4Factors in Setting Promotion Mix

Buyer State Liking, Preferences, and Conviction Purchase

Product-Life-Cycle Stage Introduction Growth Mature Decline

5Advertising

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

6Its function is to inform consumersabout product differences, newproducts and applicationpossibilities.

Advertising

7Advertising

It plays a role in the competitiveprocess by firstly bringingdifferences in products or servicesto the attention of the consumer.

Secondly, it persuades consumersto prefer on companys product tothose of another.

Thirdly, It creates value by itscommunication strategy.

8Main Advertising Objectives Informative Advertising

Persuasive Advertising

Reminder Advertising

9Characteristics of Advertising

One way communication

It deals with thousands ofconsumers and each one receivesthe same mesage.

Depends on symbols: brand logos

Low-cost mass communication

Persuasive communication

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Advertising media

Newspapers

Magazines

Television

Direct mail

Radio

Etc

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Personal Selling

Involves Two-Way, Personal Communication Between Salespeople and Individual Customers:

face to face,

by telephone,

through video conferencing,

or by other means

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Personal Selling

A personalized form of communication in which a seller presents the features and benefits of a product to a buyer for the purpose of making a sale

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Personal Selling

Roles:

Increase marketing intelligence

Locating and maintaining customers

Generating sales at point of purchase

Relationship marketing

Provide detailed and up-to-date information to the travel trade

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Personal Selling

Objectives

Sales volume

Cross-selling, Up-selling, and Second-chance selling

Marketing share

Product-specific objectives

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Personal Selling CrossCross--sellingselling

offering a customer the opportunity to purchase allied products that go beyond the obvious core products

UpUp--sellingselling

upgrading price and profit margins by selling higher-priced products

SecondSecond--chance sellingchance selling

trying to sell additional services to a customer who has already booked services

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Personal Selling: Sales management

The management of the sales force and personal selling efforts to achieve desired sales objectives

Roles include: recruiting

training

motivating/rewarding

sales planning

evaluating sales performance

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Personal Selling disadvantages

Can only deal with a small numberof potential customers.

More costly on a per-customerbasis.

A bad salesperson can damage a relationship

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Sales Promotion

Sales Promotion consists of short-term incentives to encourage the purchase or sales of a product.

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Sales Promotion

Its a blend of marketing activitiesand material that are designed tointensify the efforts of thecompanys salesforce, induce intermediaries to stock and sell thecompanys product, and/orpersuade consumers to buy theproduct limited in time period

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Sales Promotion

A technique used to increase the value of its product by offering an extra incentive to purchase the product

Short-term incentives to encourage the purchase or sales of product or service

Directed at consumer (samples, coupons, rebates, contests, demonstrations) and trade (free goods, contests, family trips)

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Sales Promotion

Increase short-term sales or help build long-term market share.

Get consumers to try a new product Attract customers away from a competitor In general, sales promotion should focus

on consumer relationship building.

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Sales Promotion

Sales promotion methods are aimedat three target groups, namelyconsumers (consumer promotion), salespeople (salesforce promotion) and intermediaries (tradepromotion)

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Bonuses andother moneyincentives

Gift incentives

Travelincentives

Prizes

Extra commissions

Prizes

Free gifts

Parties

Price cuts

Sales offers

Discountvouchers

Coupons

Disguised pricecuts

Additionalservices

Free gifts

Prizes

SalesforcesTradeNetwork

Consumers

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Effective sales promotion

Short duration

Dificult to imitate by competitors

Difficult to predict

Directed at and restricted to specificsegments

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Effective sales promotion

Short duration: customers must notbe able to postpone buyingdecisions . If the promotion is too long, customers will also perceive itas part of the standard price.

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Effective sales promotion

Difficult to imitate by competitors for example airlines that arranegeco-operative promotions linking a particular hotel, car rental companyor restaurant

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Effective sales promotion

Difficult to predict if customerscan predict sales promotions, theymay simply postpone their buyingdecision.

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Effective sales promotion

Directed at and restricted to specificsegments this is to avoid the diluition oftotal sales revenue which occurs ifunnecessary incentives are offered to allcustomers, some of whom intended tobuy without the added incentive. For thisreason airlines that offer sales promotionson overseas trips would specify a minimum stay at the destination (often 7 days or more), to avoid having businesstravellers using the promotion.

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Public Relations

Public Relations Involves Building Good Relations With the Companys Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.

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Public Relations

The activities that a tourism or hospitality organization uses to maintain or improve its relationship with other organizations or individuals

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Public Relations

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Functions of PR Departments

Establishing corporate identity

Government relations

Crisis management

Internal communications

Customer relations

Press Relations Product Publicity Corporate Communication Lobbying Counseling

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Public Relations

Build Awareness, comprehension, positive attitude.

Build Credibility Stimulate the Sales Force and Channel

Intermediaries Sales-and-Profit Contribution

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Public Relations Techniques Available to the Tourism and Hospitality Industry

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Public Relations

Read Public relations text.

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Direct Marketing

Its the use of advertising methods(for example, mail, mass media, telephone or intecative devices) tohandle all or some portion of theselling process handked by personal, face to face contact.

Consider Internet Impact

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Direct Marketing

Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.

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Most Mass Marketing Involves One-WayCommunications Aimed At Consumers.

Mass Marketing and Direct Marketing

Direct Marketing Involves Two-WayInteractions WithCustomers.

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Advantages of Direct Marketing

Precision targeting

Personalization

Flexibility

Privacy

Measurability

Low cost

Detailed knowledge of consumers

Fast or immediate response

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Direct Mail

KioskMarketing

OnlineMarketing

Telemarketing

Direct-ResponseTV Marketing

Catalog

Face-to-Face Selling

Forms of Direct Marketing

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Direct Marketing

Read direct marketing text.