© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and...

© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.

Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition

Chapter FifteenChapter Fifteen

The Communications Mix: The Communications Mix: AdvertisingAdvertising



The Communications MixThe Communications Mix

AdvertisingAdvertising Sales promotionSales promotion MerchandisingMerchandising Public relations and publicityPublic relations and publicity Personal sellingPersonal selling



The Communications Mix:The Communications Mix:DefinedDefined

““All communications between the firm All communications between the firm and the target market that increase the and the target market that increase the tangibility of the product/service mix, tangibility of the product/service mix, that establish or monitor consumer that establish or monitor consumer expectations, or that persuade customers expectations, or that persuade customers to purchase.”to purchase.”



Communications StrategyCommunications Strategy

To plan, implement, and control To plan, implement, and control persuasive communication with customerspersuasive communication with customers

Six stages of the communication process:Six stages of the communication process:– To whom to say itTo whom to say it– Why to say itWhy to say it– What to sayWhat to say– How to say itHow to say it– How often to say itHow often to say it– Where to say itWhere to say it



Consumer Stage Effect Stage Strategy

Cognitive: the stage of thoughts/beliefs

Create awareness, beliefs Provide information, get attention, inform, remind

Affective: the stage of emotion

Change attitudes and feelings, get involved, evaluate

Position, create benefits and image, stir emotions, arouse

Conative: the stage of motivation and intention

Stimulate and direct desires, adopt

Move to action, reinforce expectation, persuade

Attitudinal Components and Their Impact on Attitudinal Components and Their Impact on Communications StrategyCommunications Strategy



Research for the Research for the Communications MixCommunications Mix

Best results via media research to Best results via media research to ensure the investment met good ensure the investment met good returnsreturns– Where are we now?Where are we now?– Why are we there?Why are we there?– Where could we be?Where could we be?– How can we get there?How can we get there?– Are we getting there?Are we getting there?



Push/Pull StrategiesPush/Pull Strategies

PushPush

Push the communication Push the communication mix through mix through

distribution channels distribution channels which then get to the which then get to the

customercustomer

PullPull

Pull the mix directly to Pull the mix directly to the market/customers the market/customers

who will then go who will then go through the through the

distribution channelsdistribution channels



Word-of-Mouth CommunicationWord-of-Mouth Communication

Most powerful in the hospitality Most powerful in the hospitality industryindustry

Communications mix can affect the Communications mix can affect the decision to purchase/not purchasedecision to purchase/not purchase

Undercover marketingUndercover marketing



Budgeting the Communications Budgeting the Communications MixMix

No industry-set standard—too complexNo industry-set standard—too complex What does the budget consist of?What does the budget consist of?

– Independent: Independent: 2-3% of sales2-3% of sales– Franchise:Franchise: 4% of revenue for 4% of revenue for

national plus 2-3% for national plus 2-3% for

ownown– Major business:Major business: 5-6% of forecasted total 5-6% of forecasted total

revenuerevenue



Budgeting the Communications Budgeting the Communications Mix (cont.)Mix (cont.)

Allocation of fundsAllocation of funds– Five-year change in advertising spent:Five-year change in advertising spent:

Direct mailDirect mail +2.4%+2.4%NewspapersNewspapers -18.8%-18.8%Broadcast TVBroadcast TV -15.2%-15.2%Cable TVCable TV +79.1%+79.1%RadioRadio -5.6%-5.6%MagazinesMagazines -9.9%-9.9% InternetInternet +203.9%+203.9%



Budgeting the Communications Budgeting the Communications Mix (cont.)Mix (cont.)

Other methods:Other methods:– ““Zero-based budgets”Zero-based budgets”– ““Competitive-level budgets”Competitive-level budgets”– ““Whatever’s left over method”Whatever’s left over method”– ““Return on investment”Return on investment”



AdvertisingAdvertising

Mass communication that is paid forMass communication that is paid for The most visible element of the The most visible element of the

communications mixcommunications mix The roles of advertising:The roles of advertising:

– Create awareness, persuade, and Create awareness, persuade, and reinforce purchase behaviorreinforce purchase behavior

– Hospitality: create and maintain Hospitality: create and maintain awarenessawareness



Advertising (cont.)Advertising (cont.)

What advertising should accomplish: What advertising should accomplish: allocate resources to where they will do allocate resources to where they will do the most goodthe most good

In hospitality:In hospitality:– Tangibilize the intangibleTangibilize the intangible– Provide a solution to a problemProvide a solution to a problem– Differentiate from the competitionDifferentiate from the competition– Create positive effects on the employees Create positive effects on the employees

executing the promisesexecuting the promises– Create word-of-mouthCreate word-of-mouth




The use of advertising todayThe use of advertising today– Advertise if you can do it effectivelyAdvertise if you can do it effectively– Don’t advertise if it is not worth the costDon’t advertise if it is not worth the cost– Manage with regard to the firm’s overall Manage with regard to the firm’s overall

strategystrategy




EvaluatingEvaluating– Pre/post exposure perceptions of the Pre/post exposure perceptions of the

product or brandproduct or brand– Theoretical cost per thousand prospectsTheoretical cost per thousand prospects– Did it work?Did it work?




Did it work?Did it work?

– Step one: calculate total Step one: calculate total communications expensecommunications expense

– Step two: calculate net margin per Step two: calculate net margin per productproduct

– Step three: match advertising cost with Step three: match advertising cost with expected resultsexpected results

© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and...

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