Tourism and Hospitality Marketing TOUR 2006 Lecturer: Grace Lee Email: [email protected].

Tourism and Hospitality

Marketing

TOUR 2006

Lecturer: Grace Lee

Email: [email protected]

Lecture Eight Marketing Communications

Overview

• The communication process• Promotion mix• Public relations

Introduction Information about products must be communicated to target markets

– Promotional messages should explain why products should be chosen in preference to products offered by competitors

Introduction • Employees and consumers gain optimum

outcomes when valuable information is exchanged.

Introduction

Communication within an organisation

= Internal Marketing

Communication with external groups

= Public Relations (PR)

The Communication Process

• A message sent by a source is designed to stimulate a response from the receiver

• An encoded message passes through a medium and is then decoded

The Communication Process• In perfect communication, the meaning

should be interpreted by the receiver in the way intended by the sender

• Various forms of noise can intervene and disrupt the communication process

Perception

• Perception is the process by which people select, organise and interpret information

• In marketing, it is important to understand the types of stimuli that can break through perceptual filters– Size– Contrast– Colour – Position– Movement

Communication Objectives

• A message may be designed to achieve different responses:– Cognitive = awareness and understanding – Affective = emotions and feelings– Behavioural = actions

Message Design

• Rational appeals describe solutions associated with product benefits

• Emotional appeals relate to feelings associated with decision-making

Implicit meanings may be conveyed by gestures, body language and the physical design of settings

Message Design

• AIDA model (Attention, Interest, Desire, Action

• Message content: to figure out an appeal or theme– Rational, emotional, moral

• Message structure: questioning vs. conclusion; one vs. two-sided argument; strong argument first or last.

• Message format• Message source: celebrity vs. animal

Communication Channels

• Personal communication channels:– Word-of-mouth influence– Role of opinion leaders

• Nonpersonal communication channels– Media: print, broadcast, display– Atmosphere: designed environment– Events: Press conferences, grand openings,

public tours

Promotional Mix (Communication Tools)1. Advertising• includes any paid form of presentation and promotion of

a product or service

2. Personal Selling• requires face-to-face or other interpersonal activities

between sellers and buyers and it is more about creating durable relationships than mere selling (Hughes & Fill, 2006).

• Mårtenson (1994) describes the advantage of using personal selling is its flexibility and adaptability towards receivers, but it is at the same time very costly.

3. Sales Promotion• It concerns, according to Mårtenson (1994), incentives

that hopefully encourage purchase of a product or a service and Hughes and Fill (2006) further say that it is often used as a complement to advertising.

• These incentives are mass distributed through discounts, samples, or loyalty bonuses. Smith and Taylor (2002) link the expansion of sales promotion in terms of loyalty programs to the movement towards more focus on relationship marketing.

4. Public Relations• Include relations an organization has with external public

and it is used to create a company image in the market (Hughes & Fill, 2006). Smith and Taylor (2002) say that PR in terms of news or press releases published by someone other than the organization itself is often considered as free marketing since there is no cost.

• The message delivered is also often considered to be more credible than regular advertising. However, organizations lose control of the message as it is up to an editor to format and retell the message through own interpretations.

5. Direct Marketing• It is the delivery of information concerning a product or

service directly aimed at a person or company or

advertisements that allow direct response to the

advertiser (Smith & Taylor, 2002).

• According to Hughes and Fill (2006), databases are

created to store relevant information about customers

in order to define profiles and target chosen groups at

a later point in time. Relationships can be built, but it is

costly and sometimes viewed as intrusive.

• The tools can be used separately, or combined together, depends on your objectives

• All tools are appropriate for all types of goods and services; both in the consumer and the business-to-business market.

• The major tools are in turn supported by other means of communication. These are exemplified as sponsorship, exhibitions, corporate identity, packaging, and point-of-sale promotions. Examples:

Factors affecting the promotional mix• Cost – the availability of sufficient funds• Creativity – an ability to use skills and

initiative• The type of product • Characteristics of the target market

Internal Marketing

Formal communication with staff– Departmental meetings and newsletters

Informal communication with staff– Social events and casual interaction between

management and employees

Skyrail Rainforest Cableway - Staff performance appraisal at a tourist venture

Internal Marketing

Staff should feel valued – involvement in decisions should be encouraged

Product knowledge is essential - gaining personal experience of products should be encouraged.

Satisfied and knowledgeable employees will help create satisfied customers

Public Relations

• Communication with groups which may influence an organisation’s ability to achieve its objectives through:– Publicity– Lobbying– Counselling

External publics

• It is important to maintain good relations with groups such as:– Politicians– Members of the business community– Trade intermediaries– Local residents– The media

Managing Public Relations

• Continuous activities – to achieve long-term positive relationships

• Pre-planned, short term activities – to gain recognition for events and achievements

• Unpredictable, short-term activities – managing unexpected events that capture public attention

Media relations

• Understanding the best way to communicate information to media organisations

• Structural characteristics will determine the nature and frequency of media contacts

Press Release

• Used to distribute important, newsworthy information to media outlets

• Should follow a consistent format and clearly identify:– The organisation– The most important information– A contact person

Press Conference

• Invitations to specific media representatives• Content or format must justify media

attendance• Requires considerable planning to gain

maximum benefits

Facility visits

• Invitations to sales staff, industry colleagues and the media to gain first-hand experience of tourism products

• May be organised by destination marketing organisations

• Require support of local industry suppliers to facilitate transport and accommodation

Evaluating Public Relations

• “Clippings” indicate the amount of media coverage generated by a PR campaign but no indication of who was exposed to the messages and whether they had any impact.

• Attitudinal change should be measured by conducting research before and after the campaign.

Required Readings

• Hsu et al. (2008) chapter 8• E-readings 22, 23