Promotional Mix-Based on the types of

buyers

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

Personal
Personal Personal
Personal Interaction,
Interaction, Relationship
Relationship
Selling
Selling Building,
Building, Most
Most Expensive
Expensive Promo
Promo Tool
Tool

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

Public
Public Very
Very Believable,
Believable, Dramatize
Dramatize aa Company
Company
Relations
Relations or
or Product,
Product, Underutilized
Underutilized

Direct
Direct Nonpublic,
Nonpublic, Immediate,
Immediate, Customized,
Customized,
Marketing
Marketing Interactive
Interactive

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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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Promotional Mix-Based on the types of
buyers

1. Ultimate Consumers: Advertising is

compulsory, personal selling is optional.

2. Industrial Users: Personal selling is

compulsory, advertising is optional.

3. Wholesalers: Personal selling is more affective

than advertising, sometime might be publishes
journal or magazines.

4.Retailers: Personal selling and advertising both

are effective as it informs about the product.
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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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Main Advertising Objectives

 Informative Advertising
 Persuasive Advertising
 Reminder Advertising

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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

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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 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

It’s a blend of marketing activities

and material that are designed to
intensify the efforts of the
company’s salesforce, induce
intermediaries to stock and sell the
company’s 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
focuson 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 Trade Salesforces
Network
Price cuts Extra Bonuses and
Sales offers commissions other money
Discount Prizes incentives
vouchers Free gifts Gift incentives
Coupons Parties Travel
incentives
Disguised price
cuts Prizes
Additional
services
Free gifts
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

notbe 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 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

Read Public relations text….

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Direct Marketing

It’s 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
Telemarketing
Marketing

Kiosk Direct
Marketing Mail

Direct-Response
Catalog
TV Marketing

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Direct Marketing

Read direct marketing text….

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