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MARKETING COMMUNICATIONS: The Role of Advertising and Sales Promotions

Prepared by Simon Hudson, Haskayne School of Business University of Calgary

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Topics
Role of promotion within marketing Various marketing promotion tools used in tourism and hospitality The communication process Importance of integrated marketing communications (IMC) Stages involved in an integrated marketing communications campaign plan Role of advertising in the promotional mix Sales promotion objectives and techniques used in tourism and hospitality Types of joint promotions
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Marketing Promotion Tools

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Marketing Promotion Tools

Promotional mix
a companys total marketing communications program

Marketing communications
an all-encompassing term (and activity) that includes communication via any and all of the marketing mix elements.
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The Communication Process

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How Communication Works

AIDA model
an all-encompassing term (and activity) that includes communication via any and all of the marketing mix elements

DAGMAR model
a hierarchies of effects model that stands for defining advertising goals for measured advertising results

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Growth of Integrated Marketing Communications (IMC)

IMC
the unification of all marketing communications tools, as well as corporate and brand messages, so they send a consistent, persuasive message to target audiences

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IMC Campaign
Situation Analysis
a business review that summarizes all the relevant information available about the product, the company, the competitive environment, the industry, and the consumers

SWOT Analysis
builds on a situation analysis by evaluating the significance of the research; assesses the companys and products strengths, weaknesses, opportunities, and threats
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IMC Campaign
Concept testing
testing new product concepts with a group of target consumers to find out if the concept has strong consumer appeal

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IMC Campaign
Media mix
combination of traditional media vehicles (print, broadcast, etc.); non-traditional media (electronic media, unexpected places like the floors of stores); and marketing communication tools such as public relations, direct marketing, and sales promotion, used to reach the target audiences
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IMC Campaign
Zero-based planning
the practice of analyzing the strengths and weaknesses of the various marketing communications tools and then matching them to the problem identified in the situation analysis

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IMC Campaign
Return-on-investment goals
working out the expected profit returns based on the costs of reaching a customer or group of customers this calculation is also called break-even analysis or payout planning

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IMC Campaign Evaluation

Recall Test
a test that evaluates the memorability of an advertisement by contacting members of the audience and asking what they remember about the advertisement

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IMC Campaign Evaluation

Recognition Test
a test that evaluates the memorability of an advertisement by contacting members of the audience, showing them the ad, and then asking whether they remember having seen it before

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IMC Campaign Evaluation

Persuasion Test
a test that evaluates the effectiveness of an advertisement by measuring whether the ad affects consumers intentions to buy a brand

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Push and Pull Promotional Strategies

Push strategy
a promotion strategy that calls for using the sales force and trade promotion to push the product through channels; the producer promotes the product to wholesalers, the wholesalers promote to retailers, and the retailers to consumers

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Push and Pull Promotional Strategies

Pull strategy
a promotion strategy that calls for spending a large amount on advertising and consumer promotion to build up consumer demand; if successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers
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Push and Pull Promotional Strategies

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Tourism Advertising
Advertising
any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor, using mass media to persuade or influence an audience

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Developing an Advertising Program

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Setting the Objective

Advertising Objective
a specific communication task to be accomplished with a specific target audience during a specific period of time

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Setting the Budget

Objective and task method
developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks

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Setting the Budget

Affordable method
setting the promotion budget at what management thinks the company can afford

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Setting the Budget

Percentage of Sale method
setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of sales price

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Setting the Budget

Competitive parity method
setting the promotion budget to match competitors outlay

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Advertising Agency Decisions

Full-service agency
an advertising agency that provides the four major staff functions:
account management creative services media planning and buying account planning
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Advertising Agency Decisions

Specialized agency
an advertising agency that specializes in certain functions (e.g., writing copy, producing art, media buying), audiences (e.g., minority, youth), or industries (e.g., health care, computers, leisure)

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Message Strategies
Slice of life
shows people using the product in a normal setting

Fantasy
creates a wonder world around the product or its use

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Message Strategies
Mood or image
builds a mood or image around the product or service, such as beauty, love or serenity Example: Yukon ad

Lifestyle
shows how a product fits with a lifestyle
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Message Strategies
Musical
shows one or more people or cartoon characters singing a song about a product Example: Delta Airlines We love to Fly campaign, & British Airways World Images campaign

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Message Strategies
Testimonial Evidence
uses celebrities we admire, created characters (McDonalds Ronald McDonald for example), experts we respect, or someone just like us whose advice we might seek out to speak on behalf of the product to build credibility

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Message Strategies
Technical Expertise
the company shows its expertise with the products Example: The Holiday Inn ad

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Media Strategy
The media plan section in an advertising plan includes:
media objectives (reach and frequency) media strategies (targeting, continuity, timing) media selection (the specific vehicles) geographic strategies, schedules, and the media budget
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Media Strategy
Vehicles (see Table 8.5)
Print media Broadcast media Out of home Other media:
direct mail, exhibitions, sponsorship, POP displays, ambient media, Internet

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Ambient advertising
Ambient advertising
includes place-based advertising and uses new, unexpected ways of getting messages across one of the fastest growing sectors of media Examples:
ads on the back of grocery receipts, on gas pumps, in elevators, on ATM screens, on shop floors, on washroom walls, on toilet paper

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Sales Promotions
Sales Promotions
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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Joint Promotions
two or more organizations that have similar target markets combine their resources to their mutual advantage this collaboration can reduce the cost of the incentives offered

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