Promotional Mix

Marketing means anticipating, and meeting customers needs

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Integrated Marketing
Communications
Advertising

Personal selling

Sales promotion

Public relations

Direct marketing
BASIC ADAPTABLE
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Setting the Promotion Mix

Advertising
Advertising

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

Personal
Personal
Selling
Selling
Sales
Sales
Promotion
Promotion
Public
Public
Relations
Relations
Direct
Direct
Marketing
Marketing

Personal
Personal Interaction,
Interaction, Relationship
Relationship
Building,
Building, Most
Most Expensive
Expensive Promo
Promo Tool
Tool
Wide
Wide Assortment
Assortment of
of Tools,
Tools, Rewards
Rewards
Quick
Quick Response,
Response, Efforts
Efforts Short-Lived
Short-Lived
Very
Very Believable,
Believable, Dramatize
Dramatize aa Company
Company
or
or Product,
Product, Underutilized
Underutilized
Nonpublic,
Nonpublic, Immediate,
Immediate, Customized,
Customized,
Interactive
Interactive

Factors in Setting Promotion Mix

Buyer State
Liking, Preferences, and Conviction
Purchase

Product-Life-Cycle Stage
Introduction
Growth
Mature
Decline

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

Advertising
Its function is to inform consumers
about product differences, new
products and application
possibilities.

Advertising
It plays a role in the competitive
process by firstly bringing
differences in products or services
to the attention of the consumer.
Secondly, it persuades consumers
to prefer on companys product to
those of another.
Thirdly, It creates value by its
communication strategy.
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Main Advertising Objectives

Informative Advertising
Persuasive Advertising
Reminder Advertising

Characteristics of Advertising
One way communication
It deals with thousands of
consumers and each one receives
the same mesage.
Depends on symbols: brand logos
Low-cost mass communication
Persuasive communication

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 Secondchance selling
Marketing share
Product-specific objectives

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Personal Selling
Cross-selling
offering a customer the opportunity to purchase
allied products that go beyond the obvious core
products

Up-selling
upgrading price and profit margins by selling
higher-priced products

Second-chance 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 number
of potential customers.
More costly on a per-customer
basis.
A bad salesperson can damage a
relationship

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Sales Promotion
Sales Promotion consists of shortterm incentives to encourage the
purchase or sales of a product.

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Sales Promotion
Its a blend of marketing activities
and material that are designed to
intensify the efforts of the
companys salesforce, induce
intermediaries to stock and sell the
companys product, and/or
persuade consumers to buy the
product 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 aimed
at three target groups, namely
consumers (consumer promotion),
salespeople (salesforce promotion)
and intermediaries (trade
promotion)

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Consumers
Price cuts
Sales offers
Discount
vouchers
Coupons
Disguised price
cuts
Additional
services
Free gifts
Prizes

Trade
Network
Extra
commissions
Prizes
Free gifts
Parties

Salesforces
Bonuses and
other money
incentives
Gift incentives
Travel
incentives
Prizes

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Effective sales promotion

Short duration
Dificult to imitate by competitors
Difficult to predict
Directed at and restricted to specific
segments

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Effective sales promotion

Short duration: customers must not
be able to postpone buying
decisions . If the promotion is too
long, customers will also perceive it
as part of the standard price.

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Effective sales promotion

Difficult to imitate by competitors
for example airlines that arranege
co-operative promotions linking a
particular hotel, car rental company
or restaurant

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Effective sales promotion

Difficult to predict if customers
can predict sales promotions, they
may simply postpone their buying
decision.

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Effective sales promotion

Directed at and restricted to specific
segments this is to avoid the diluition of
total sales revenue which occurs if
unnecessary incentives are offered to all
customers, some of whom intended to
buy without the added incentive. For this
reason airlines that offer sales promotions
on overseas trips would specify a
minimum stay at the destination (often 7
days or more), to avoid having business
travellers 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) to
handle all or some portion of the
selling 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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Mass Marketing and Direct Marketing

Most Mass Marketing
Involves One-Way
Communications
Aimed At Consumers.

Direct Marketing
Involves Two-Way
Interactions With
Customers.
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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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Forms of Direct Marketing

Face-to-Face
Selling
Online
Marketing

Telemarketing

Kiosk
Marketing
Direct-Response
TV Marketing

Direct
Mail
Catalog

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Direct Marketing
Read direct marketing text.

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