Tourism and Hospitality Marketing TOUR 2006 Grace Lee

Lecture Nine Promotion Overview Advertising Sales promotion Personal selling Sales management

Introduction It is important to adopt an integrated approach to tourism promotion. Advertising, public relations, sales promotion and personal selling should be used in combination to optimise outcomes and to make the most effective use of a promotion budget.

Advertising An advertiser controls the way a message is communicated to target markets: –When it appears –Where it appears Scheduling must take into account of when consumers make their purchase decision.

Advertising Advertising decisions should be informed by knowledge of the media habits of the target market. Advertisements are placed in print and broadcast media and should: - attract attention - create interest - foster desire - inspire action

Advertising The choice of medium will be affected by: –Costs (of production and purchasing space or air time) –Lead time –Reach, frequency and permanence –Waste Virgin Blue - The advertising mix

Advertising in Newspapers Newspapers offer good frequency and short lead times Many newspapers serve local markets so assist geographical segmentation Their tangibility makes it possible to cut out coupons and information that it is useful to retain.

Advertising in Magazines Magazines offer high reproduction quality but have longer lead times than newspapers. Detailed readership profiles assist target marketing and help reduce waste.

Advertising on Radio Radio is suitable for small businesses that wish to reach local markets It is affordable and ads can be produced at short notice. Messages can be reinforced through frequent exposure Schedules can reflect temporal changes in audience profiles

Advertising on Television Television is a powerful medium that can create emotional reactions. Television can deliver national exposure. It is expensive to produce television commercials and to buy air time.

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Outdoor Advertising Reach and frequency is determined by location. It is difficult to present complex messages. Outdoor advertising can be used to support other promotional activities.

Interactive Media Advertisers can quickly respond to changing conditions. Consumers can control the information acquisition process by downloading what they want at times that suit them. A web page has become essential for all tourism businesses, offering promotional messages 24 hours a day.

Advertising Agencies Advertising agencies offer: Creativity Production skills Media expertise Establishing a good working relationship is essential. It should involve clear communication between client and agency and be based on mutual respect.

Advertising Evaluation Re-testing helps determine whether an advertisement is likely to convey the desired information. Before and after surveys should be used to measure the overall impact of an advertising campaign to determine if it has changed levels of awareness, interest, attitudes and preferences.

Brochures Brochures are produced by all sectors of the tourism industry. They can play an important role at each stage of the tourism process: –offering tangible evidence of the experience, prior to purchase –providing reference information during the consumption phase –serving as a tangible reminder of the tourism experience

Sales Promotion Sales promotion is used to generate short- term increases in demand. Incentives for staff include bonuses. Incentives for consumers include price reductions.

Merchandising Merchandising involves the provision of products that carry an organisation’s name or logo. They can be given or sold to intermediaries, consumers and the public to serve as an enduring, tangible link with the supplier.

Exhibitions Tourism organisations purchase space to display products and facilitate negotiations with prospective buyers. The design of tourism exhibitions and the programming of entertainment often produces a festive environment.

Personal Selling Personal selling involves person-to-person communication between a sales person and a prospective customer. The salesperson can make an offer that responds to needs identified during the conversation.

Personal Selling The personal selling process involves: –Prospecting –Pre-approach –Approach –Presentation –Negotiation –Closing the sale –Follow-up

Sales Management A company’s sales effort requires: –Planning –Organising –Controlling –Evaluating Sales teams may be organised based on: –Geographical territory –Products –Markets

Tourism Promotion Participation in cooperative promotion campaigns offers considerable benefits for tourism organisations. All sectors of tourism gain if destination demand is increased through collaborative efforts. Promotion budgets can be reduced if satisfied tourists become advocates for a destination when they return home.

Your Term Please form your groups and prepare a skeleton Christmas promotion plan for the followings: A five star hotel in Hong Kong A small hotel in France (Southern part) A resort hotel in Hainan Island

Required Readings Hsu et al. (2008) chapter 9 E-readings 24, 25, 26