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Promotional Mix

Marketing means anticipating, and meeting customers needs

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Integrated Marketing Communications

Personal selling

Public relations

Direct marketing

Sales promotion

Advertising

BASIC ADAPTABLE

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AdvertisingAdvertising

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

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Factors in Setting Promotion Mix

� Buyer State� Liking, Preferences, and Conviction� Purchase

� Product-Life-Cycle Stage� Introduction� Growth� Mature� Decline

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Advertising

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

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

Advertising

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Advertising

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 company’s product tothose of another.

Thirdly, It creates value by itscommunication strategy.

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Main Advertising Objectives

� Informative Advertising

� Persuasive Advertising

� Reminder Advertising

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Characteristics 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

It’s a blend of marketing activitiesand material that are designed tointensify the efforts of thecompany’s salesforce, induce intermediaries to stock and sell thecompany’s 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 Company’s 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

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Direct Marketing

It’s 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

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