Understanding Tourism Understanding Tourism and Leisure Advertisingand Leisure Advertising

Advertising and PromotionAdvertising and Promotion

in the tourism and hospitality in the tourism and hospitality industryindustry

• We live in a marketing and media-driven world.We live in a marketing and media-driven world.

• Any organization involved in the leisure and Any organization involved in the leisure and tourism business; tourism business;

– arts centers, museums, sports clubs and small hotels arts centers, museums, sports clubs and small hotels to the largest theme parks, airlines and cruise to the largest theme parks, airlines and cruise companies, companies,

is interested in advertising. is interested in advertising.

AdvertisingAdvertising

• Advertising is expensive.Advertising is expensive.• Its impact is difficult to judge and it takes a Its impact is difficult to judge and it takes a

time before it has any influence on the time before it has any influence on the customers.customers.

• Difficult to define exactly what advertising Difficult to define exactly what advertising does in the marketplace.does in the marketplace.

• Many companies think that they should cut Many companies think that they should cut expenditure on advertising and redirect it into expenditure on advertising and redirect it into sales promotions, direct mail, public relations sales promotions, direct mail, public relations and other forms of marketing and other forms of marketing communications.communications.

• Advertising is not an expensive but, Advertising is not an expensive but, rather, is a strategic activity which rather, is a strategic activity which should be regarded as an investment should be regarded as an investment in the product or brand.in the product or brand.

• Reducing advertising spend may Reducing advertising spend may yield short-term savings but may well yield short-term savings but may well lead to long-term loss of market lead to long-term loss of market share.share.

ExampleExampleAdidasAdidas

• In the late 1970s Adidas cut advertising spend In the late 1970s Adidas cut advertising spend on its sports shoes and found that the brand on its sports shoes and found that the brand was not strong enough to maintain market was not strong enough to maintain market share in the face of new competitors.share in the face of new competitors.

• It has struggled to recover its former position.It has struggled to recover its former position.• Advertising must be sustained to maintain a Advertising must be sustained to maintain a

brand’s market presence since people only buy brand’s market presence since people only buy those products they talk about.those products they talk about.

• ““out of sight is out of mind for the customerout of sight is out of mind for the customer””

• Effective advertising cannot guarantee Effective advertising cannot guarantee success, but it certainly increases its success, but it certainly increases its chances.chances.

– What is good advertising?What is good advertising?– What makes a well-planned advertising strategy?What makes a well-planned advertising strategy?– What is the role of advertising research in the What is the role of advertising research in the

creative process?creative process?– What are the implications for tourism and leisure What are the implications for tourism and leisure

advertisers of the changing global marketing advertisers of the changing global marketing environment?environment?

Book : Advertising in Book : Advertising in Tourism and LeisureTourism and Leisure

Nigel Morgan and Annette Nigel Morgan and Annette PritchardPritchard

ContentsContents• Advertising CreationAdvertising Creation

– Understanding tourism and leisure advertisingUnderstanding tourism and leisure advertising– What makes good advertising?What makes good advertising?– Planning the complete campaignPlanning the complete campaign– Advertising researchAdvertising research

• Advertising ChallengesAdvertising Challenges• The dynamic advertising environmentThe dynamic advertising environment• Matching markets and advertising appealsMatching markets and advertising appeals• Creativity and advertising opportunitiesCreativity and advertising opportunities

• Advertising BrandsAdvertising Brands• Building powerful tourism and leisure brandsBuilding powerful tourism and leisure brands• Advertising and brand positioningAdvertising and brand positioning• Advertising destination brandsAdvertising destination brands

• Advertising FuturesAdvertising Futures• New advertising vistasNew advertising vistas

Understanding Tourism Understanding Tourism and Leisure Advertisingand Leisure Advertising

Chapter oneChapter one

The chapter outlinesThe chapter outlines

• Marketing and promotion in tourism and Marketing and promotion in tourism and leisure today.leisure today.

• Marketing communications, promotion Marketing communications, promotion management and advertising strategy.management and advertising strategy.

• The importance of advertising in tourism The importance of advertising in tourism and leisure marketing.and leisure marketing.

• How advertising works in tourism and How advertising works in tourism and leisure.leisure.

• Advertising messages and the audience.Advertising messages and the audience.

Marketing and promotion in Marketing and promotion in tourism and leisure todaytourism and leisure today

• Advertising plays an important and Advertising plays an important and limited role within the process of limited role within the process of marketing.marketing.

• Good marketers see their business Good marketers see their business from the customer’s viewpoint and from the customer’s viewpoint and organize their entire enterprise to organize their entire enterprise to develop relationships with the develop relationships with the customer based on trust.customer based on trust.

• Marketing is the ability to develop a mix of Marketing is the ability to develop a mix of marketing strategies to influence marketing strategies to influence customers to buy products and services.customers to buy products and services.

• This mix consist of a set of four decisions;This mix consist of a set of four decisions;1.1. Product decisionsProduct decisions2.2. Pricing decisionsPricing decisions3.3. Distribution decisionsDistribution decisions4.4. Promotional decisionsPromotional decisions

The productThe product

• ??

• A tour packageA tour package

• An airline seatAn airline seat

• A destinationA destination

• A hotelA hotel

• A mealA meal

• The productThe product should provide benefits should provide benefits to the customer.to the customer.

• The priceThe price ensures the product is ensures the product is priced at a level that reflects priced at a level that reflects consumer value.consumer value.

• The distribution component The distribution component ensures access ensures access to the product in the right place at the right to the product in the right place at the right time in sufficient quantities to meet time in sufficient quantities to meet customer needs.customer needs.

• The promotional componentsThe promotional components communicates communicates (through advertising, publicity, personal (through advertising, publicity, personal selling and sales promotions) the product’s selling and sales promotions) the product’s ability to satisfy the customer’s needs.ability to satisfy the customer’s needs.

Marketing communications, Marketing communications, promotion management and promotion management and

advertising strategyadvertising strategy

•Marketing communicationsMarketing communications– Organizations communicate with a Organizations communicate with a

variety of audiences to;variety of audiences to;– InformInform– Persuade Persuade - influence- influence– Induce action – Induce action – encourage action.encourage action.

??

– InformInformTo inform prospective customers To inform prospective customers

about their products.about their products.– PersuadePersuade

To persuade them to prefer certain To persuade them to prefer certain brands, products or services.brands, products or services.

– Induce actionInduce actionTo induce customer action so buying To induce customer action so buying

behavior is directed towards their behavior is directed towards their offering and purchase faster.offering and purchase faster.

This could be achieved byThis could be achieved by::

• AdvertisingAdvertising• Sales promotionsSales promotions• SalespeopleSalespeople• Point-of-purchase displaysPoint-of-purchase displays• Direct mailingsDirect mailings• Product packagingProduct packaging• Event marketingEvent marketing• Public relationsPublic relations

Promotional ManagementPromotional Management

Promotional management: Promotional management: promotional elements (mix)promotional elements (mix)

– Media advertisingMedia advertising– Public relationsPublic relations– Personal sellingPersonal selling– Sales promotionSales promotion– Price discountingPrice discounting– Distribution channelsDistribution channels– Familiarization tripsFamiliarization trips– Exhibitions and showsExhibitions and shows– Sales literatureSales literature– Merchandising and point-of-sale displaysMerchandising and point-of-sale displays– Direct mailDirect mail– Sponsorship/special eventsSponsorship/special events

Media advertisingMedia advertising

• Television, press, radio, billboards Television, press, radio, billboards and the Internet; tourist board travel and the Internet; tourist board travel related guides, books and brochures related guides, books and brochures that sell advertising space.that sell advertising space.

Public relationsPublic relations

• All media exposure appearing as All media exposure appearing as editorial, not as paid for advertising editorial, not as paid for advertising space. space.

Personal sellingPersonal selling

• Meetings, workshops, telephone Meetings, workshops, telephone contact aimed at distributors and contact aimed at distributors and trade purchasing to sell on to end trade purchasing to sell on to end users; also aimed at consumers, e.g. users; also aimed at consumers, e.g. at travel agentsat travel agents

Sales promotionSales promotion

• Short-term incentives to induce Short-term incentives to induce purchase – aimed at salespeople, purchase – aimed at salespeople, distributors and consumers.distributors and consumers.

Price discountingPrice discounting

• A common form of sales promotion – A common form of sales promotion – aimed at retailers and consumers.aimed at retailers and consumers.

Distribution channelsDistribution channels

• Systems by which consumers access Systems by which consumers access products and services, including products and services, including computers networks.computers networks.

Familiarization trips- fam Familiarization trips- fam triptrip

• Educates and raises product Educates and raises product awareness through sampling – aimed awareness through sampling – aimed at wholesalers, retailers and opinion at wholesalers, retailers and opinion formers (journalists).formers (journalists).

Exhibitions and showsExhibitions and shows

• Venues for display and distribution Venues for display and distribution aimed at wholesalers, retailers and aimed at wholesalers, retailers and consumers.consumers.

Sales literatureSales literature

• Brochures, leaflets, and other print Brochures, leaflets, and other print used as a selling and booking tool.used as a selling and booking tool.

Merchandising and point-of-Merchandising and point-of-sale displayssale displays

• Atmospherics, store layout, posters, Atmospherics, store layout, posters, displays and other material to create displays and other material to create image.image.

Direct mailDirect mail

• Part of the wider activity of direct Part of the wider activity of direct marketing.marketing.

Sponsorship/special eventsSponsorship/special events

• Sports and music events.Sports and music events.

• Promotional management is:Promotional management is:– The coordination of all the elements, The coordination of all the elements, – Setting objectives and budgets,Setting objectives and budgets,– Designing programs,Designing programs,– Evaluating performance,Evaluating performance,– Taking correction action.Taking correction action.

Advertising : PromotionAdvertising : Promotion

• Advertising is only one element of Advertising is only one element of the promotional mix.the promotional mix.

• Advertising is defined and is taken to Advertising is defined and is taken to mean either mass communication via mean either mass communication via newspapers, magazines, radio, newspapers, magazines, radio, television, billboards, the Internet, television, billboards, the Internet, oror direct-to-consumerdirect-to-consumer communication communication via direct mail.via direct mail.

• Promotion:Promotion: can be a short-term can be a short-term activity, but also, when seen at a activity, but also, when seen at a strategic level, it is mid- and long-strategic level, it is mid- and long-term investment aimed at building term investment aimed at building up a consistent and credible up a consistent and credible corporate or destination identity.corporate or destination identity.

The importance of advertising in The importance of advertising in tourism and leisure marketingtourism and leisure marketing

• In the tourism and hospitality sectors, where the In the tourism and hospitality sectors, where the product is a “service” promotion is more vital product is a “service” promotion is more vital than other industries.than other industries.

• The tourism product is The tourism product is “intangible”, “intangible”, “inseparable”, “variable” and “perishable”.“inseparable”, “variable” and “perishable”.– There is nothing There is nothing tangibletangible for the customer to examine for the customer to examine

beforehand or to take away afterwards.beforehand or to take away afterwards.– The service is The service is inseparableinseparable from its production. from its production.– The experience is The experience is variablevariable and subject to factors beyond and subject to factors beyond

marketer’s control.marketer’s control.– The product is The product is perishableperishable and can not be stored for sale. and can not be stored for sale.

• The customer buys a holiday on the The customer buys a holiday on the basis of symbolic expectations basis of symbolic expectations established promotionally through established promotionally through words, pictures, sounds ..etc.words, pictures, sounds ..etc.

• Tourism experiences are constructed Tourism experiences are constructed in our imagination through in our imagination through advertising and the media.advertising and the media.

• The tourism product is also a The tourism product is also a discretionary (optional) productdiscretionary (optional) product, , which will be competing for both the which will be competing for both the customer’s time and money against customer’s time and money against essential items of expenditure and essential items of expenditure and other discretionary purchases.other discretionary purchases.

• These 5 attributes These 5 attributes “intangible”, “intangible”, “inseparable”, “variable”, “inseparable”, “variable”, “perishable” and ““perishable” and “discretionary”discretionary” mean that the skill in tourism and mean that the skill in tourism and leisure marketing lies in creating leisure marketing lies in creating the the perceived valueperceived value of the product. of the product.

How advertising works in tourism How advertising works in tourism and leisureand leisure• Advertising is a process of Advertising is a process of

communicationcommunication..

• Ads should persuade and suggest things Ads should persuade and suggest things that the consumer may not previously that the consumer may not previously have considered and the persuasion have considered and the persuasion process is achieved through ads.process is achieved through ads.

• Advertising must create immediate and Advertising must create immediate and measurable effects.measurable effects.

• When effective, advertising When effective, advertising (communication) moves customers along (communication) moves customers along a way from “a way from “awareness of a productawareness of a product” to ” to ““reinforcing post-purchase satisfaction”reinforcing post-purchase satisfaction”::– Stage 1- Awareness Stage 1- Awareness – Stage 2 – ComprehensionStage 2 – Comprehension– Stage 3 – AcceptanceStage 3 – Acceptance– Stage 4- PreferenceStage 4- Preference– Stage 5 – PurchaseStage 5 – Purchase– Stage 6 - Reinforcement Stage 6 - Reinforcement

– Stage 1- AwarenessStage 1- Awareness•Target market Target market to be awareto be aware product. product.

– Stage 2 – ComprehensionStage 2 – Comprehension•Potential customers Potential customers to understandto understand its its

features and benefits.features and benefits.

– Stage 3 – AcceptanceStage 3 – Acceptance•Potential customers Potential customers must decidemust decide that the that the

product can meet their needs. Advertising product can meet their needs. Advertising plays a vital role here.plays a vital role here.

– Stage 4- PreferenceStage 4- Preference• Advertising must offer for Potential customers a Advertising must offer for Potential customers a

compelling reason compelling reason to thinkto think that the product meets that the product meets their needs.their needs.

– Stage 5 – PurchaseStage 5 – Purchase• Advertising motivates customers to action or to buy Advertising motivates customers to action or to buy

the product. This objective is always linked to sales the product. This objective is always linked to sales promotions. promotions.

– Stage 6 - Reinforcement Stage 6 - Reinforcement • To confirm customers’ choices and create a sense of To confirm customers’ choices and create a sense of

satisfaction about their actions or purchase.satisfaction about their actions or purchase.

How advertising worksHow advertising works??

• A 4 key models are used in planing A 4 key models are used in planing advertising today:advertising today:

1.1. Sales response.Sales response.

2.2. Persuasion.Persuasion.

3.3. Involvement.Involvement.

4.4. Saliency.Saliency.

1. Sales response model1. Sales response model

• It is a very simple It is a very simple price-based price-based model.model.

• Encourages the purchase of a Encourages the purchase of a product purely on the basis of its product purely on the basis of its price.price.

22 . .Persuasion modelPersuasion model

• It takes the advertisement as a starting It takes the advertisement as a starting point.point.

• And, if it is effectively compiled, its impact And, if it is effectively compiled, its impact and message should persuade the and message should persuade the audience that the product presented is the audience that the product presented is the best one.best one.

• Brand advantage is secured by Brand advantage is secured by highlighting a specific benefit of a product.highlighting a specific benefit of a product.– Brand: product characteristics + added valuesBrand: product characteristics + added values

33 . . Involvement modelInvolvement model

• It aims to interest and engage the It aims to interest and engage the consumer.consumer.

• Once the interest is there, a Once the interest is there, a relationship relationship is created with the audienceis created with the audience – to feel – to feel good about the product.good about the product.

• The next step is the commitment to the The next step is the commitment to the product, resulting in increased sales.product, resulting in increased sales.

44 . .Saliency modelSaliency model

• It depends on It depends on innovative innovative brand – brand – product- awareness.product- awareness.

• It moves the audience emotionally It moves the audience emotionally closer to the brand product.closer to the brand product.

• Generates a feeling of “Generates a feeling of “that product that product is for meis for me”.”.

ConclusionConclusion

• Advertising role is not to increase Advertising role is not to increase sales but its value lies in;sales but its value lies in;– Improving the consumer’s attitude Improving the consumer’s attitude

towards brands.towards brands.– Leading to long-term sales.Leading to long-term sales.– The real effect of advertising is not at The real effect of advertising is not at

the point of sale but at the point of the point of sale but at the point of ‘consumption’.‘consumption’.

Advertising messages and the Advertising messages and the audienceaudience..