chapter 9 communicating the offer understand the primary role of marketing communication in...
TRANSCRIPT
Lecture objectives Understand the primary role of marketing
communication in communicating the hospitality offer
Explain the marketing communication process
Evaluate each element of the hospitality communication mix
Understand the role of offline and online promotion
Plan a marketing communication campaign
IntroductionCommunicating the offer known as:
Promotion, the promotional mix, communication, the communication mix, customer communication or marketing communication
The public thinks – wrongly – it is only advertising and selling
Providing pre-encounter marketing mix meets target market needs, communicating offer should raise awareness, influence expectations and ultimately increase sales and profits
Sometimes companies think that marketing communication campaigns can compensate for deficiencies in other elements of the marketing mix
But if the offer does not satisfy customers, marketing communications is a waste of resources leading to problems with unhappy customers and negative word-of-mouth
The Internet has enabled organizations to perform both marketing communication and distribution activities online
Contemporary communications In the past, companies tried to control what was said about their
products/brands by dominating communication channels
Today, companies realize message control is impossible to achieve sophisticated contemporary consumers/customers ability to access information from multiple sources including online
Customer communications: bilateral or multilateral dialogue using face-to-face, phone, email, text, webform, blogs, discussion forums, comparison travel shopping websites and social network communities
Online communications described as: business-to-customer and business-to-consumer communication
(b2c) customers-to-companies (c2b) consumer-to-consumer (c2c)
Companies no longer control product, brand and corporate messaging, and this creates challenges in promoting or protecting a product
Three communication strategiesTo inform
Customers must be aware of marketing offers Need to build brand awareness and product knowledge Awareness of key brands researched Communication objectives raise brand awareness
To persuade Brand-aware consumers still need to be persuaded to buy the
company’s hospitality product Consumers have choice and many competitors to chose from Hospitality marketers need to persuade target audiences to buy their
product instead of the competitors’ offer Marketers stimulate buyer behaviour and offer incentives to book
To build relationships with target audiences Generating repeat and referral sales is crucial Hospitality companies use a combination of online and offline
communications with customers (e.g. loyalty club members) Customer databases hold customer information ICT systems generate automated marketing communications Customer relationship management (CRM) and campaign
management
Target audience
Starting point for communications activity to establish who the target audience is:
In hospitality, the target audience is: end-users intermediaries key people in DMU (decision-making unit)
Different target audiences: have different characteristics have different information needs are exposed to different media, therefore different communication
channels and messaging strategies are used to reach each audience
Marketing communication process
Sender = hospitality organization communicating with target audience Target audience (receiver) = end-users, influencers, decision-makers,
gatekeepers or intermediaries
Target audience is precisely defined to ensure marketing communication reaches the right people cost effectively
Noise = communications from other sources (people and organizations) competing for the target audience’s attention and interfering with the sender’s message
Message = content that sender wants to communicate to the target audience
Media = various communication channels that senders can use to communicate with target audiences
Feedback = audience tells the sender whether communication objectives have been achieved
See Figure 9.1
AIDA
Framework (AIDA) ensure that messaging decisions move audiences towards purchase
AIDA: Attention – the message should grab the target audience’s attention Interest – the message should arouse the target audience’s interest Desire – the message should stimulate desire so that the target audience
wants to experience the product Action – the message should encourage the target audience actually to take
action now, such as call a reservation number, click on a website or make a booking
Message contentMessage content depends on campaign objectives, target audience characteristics, and knowledge of hospitality product
Three types of message:
Rational messages appeal to target audience’s practical mindset effective in markets where end-user has tangible requirements (business
markets) provides factual answers to reassure target audience
Emotional messages explicitly designed to arouse consumers’ passions/interest effective in dining out and leisure markets
Moral messages linked to consumers’ belief and value systems moral message is spiritual or ethical religious organizations’ dedicated hospitality facilities for fellow believers some hotels/restaurants promote their environmental or ethical beliefs
Message format Messages received using our senses – sight, sound, smell, taste and
touch
Message format – actual design of website, advertisement, brochure, press release, sales promotion, PR activity and sales visits
Creativity essential in message formatting to stand out from competing messages
Website format includes page layout, text, visuals, embedded audio or video files, links to external sites, opportunities for interactivity and visitor engagement; crucially, ease of navigation and simple-to-use e-commerce functionality so that potential buyers are able to book
Print advertisements and brochure format includes size, shape, layout, copy and illustrations
Publicity needs a gimmick or storyline that creates interest
Personalcommunication channels
Personal communication refers to people who are directly communicating to each other:
face-to-face in a meeting telephone or via PC/video-conferencing email, text, web collaboration, fax or mail
Advantages to personal communication:
personal interaction – by directly talking with customers and influencers; opportunity for dialogue so customer can ask questions about the brands and products
company can find out more about specific customer needs and wants
Non-personalcommunication channels
Non-personal communication channels include all online and offline print, broadcast and display tools
Non-personal communication channels cannot personalize interaction, and so is not guaranteed to capture the attention and respond to concerns of the target audience
Design and production of mediated communications need specialist suppliers, such as design companies, advertising agencies, print companies and PR agencies
Agencies offer creative expertise in copywriting, graphics, photography, radio, television and online advertising
Agencies provide advice and professional services in delivering marketing communication campaigns
Projecting brand image Quality and design communications material reflect/project desired brand
positioning to target audiences
The colour, photographs, graphic design, style of copywriting and quality of materials used influences consumers’ perception of hospitality brand
Online and offline marketing collateral need to complement each other to project consistent brand position
Intranet technology enables hospitality chains to deliver brand-consistent marketing communications across all units
Brand manual and brand standards provided via intranet digital format, standardized sizes/layouts for logos, brand identities, adverts, print material and signage
Online database of marketing assets: photographs, marketing campaigns and press releases, support current marketing activity (online brand library)
Unit planning a marketing communications campaign accesses the Intranet, customizes promotional material, inputs menus, prices, dates, contact details
Print materialPrint material for individual hospitality units includes:
stationery brochures, tariff and price lists menus and wine lists conference brochures wedding brochures function menus promotional material for the sales team in-room information (hotel facilities and in-room service menus) special product brochures special price promotional flyers newsletters
Print material produced for branded chains includes: corporate directory listing all branded units in the country, region or world corporate leisure breaks brochure corporate conference brochure group business brochure targeting tour operators corporate sales teams’ sales support material corporate newsletters loyalty club leaflets, application forms special promotions
Sales force
Sales includes telesales team and face-to-face contact by sales team
Employing salespeople is expensive, costs include: salary, commission and bonuses; travel and accommodation costs; professional presentation equipment; mobile/laptop to demonstrate products, locations, prices; and administrative support
Personal selling is the most expensive form of marketing communication
Major hotel companies employ extensive worldwide face-to-face sales teams and telesales support
Small hospitality companies do not employ salespeople, but the outward-looking owner/manager can perform this role
Advertising Advertising is any paid-for mass communication in the media, owned by third
parties Advertising reaches wide audiences, but ratio readers, listeners, viewers who
are potential customers is relatively small Therefore, advertising is relatively expensive, and difficult to measure its
effectiveness Company controls message content, message format and message source There are legal, voluntary and social constraints that advertisers need to
recognize Most hospitality advertising is aimed at consumer and business markets
The following media is used in advertising campaigns: online media newspapers, magazines, tourist board publications, guide books broadcast media (radio, cinema and television) outdoor media (billboards and posters) ambient media (buses, taxis, over-ground and underground trains, gas
and petrol stations)
Media selection depends on campaign’s marketing communication objectives, the audience, the medium delivers, and the available budget
Sales promotion and point-of-sale
Primary role sales promotion and point-of-sale material is to stimulate short-term or immediate sales
Hospitality organizations use POS for: new product launches (to attract trial purchase) during low and shoulder periods (to boost demand) customer contact points (to promote in-house offers)
Effective sales promotions are designed in advance
Many sales promotions are bundled products at attractive prices, with more value for customer
Design and pricing of packaged sales promotions must be: carefully targeted competitive (competitors will plan their own sales promotion) costed – both the level of the discount and the promotional costs creative! for a fixed time period only
Public relations (PR) Aim of PR is to generate positive publicity in media; ‘free’ publicity, because
space and time are not bought
Effort, creativity and networking required to generate media coverage is not cheap
PR profession (structured career pathway, formal examinations)
Major hospitality corporations employ PR managers in head offices
Corporate PR role includes: managing publicity aimed at financial stakeholders and political bodies crisis management (e.g. when a case of food poisoning is reported in the
media) promoting corporate image and specific brands
PR needs activities, events, ‘human interest stories’ that generate brand awareness and raise brand image
Success measured by print column inches and air time minutes, but sales generated by PR are difficult to measure
Sponsorship Sponsorship used with PR to obtain publicity
Major component in financing sports, arts, cultural activities and events
Football teams, tennis stars, golf tournaments, music festivals, art exhibitions, literary events, etc., depend on other organizations for financial support
Hospitality companies provide financial donations or complimentary services such as accommodation in sponsorship arrangement for publicity
Sponsored activities promote the name of sponsor on clothes, equipment, posters and vehicles during the event
Sponsorship is the focus of a marketing communications campaign
Key customers invited to sponsored event as VIPs
Cost of sponsorship linked to media coverage generated
Direct marketing Direct marketing (DM) is direct-to-consumer communication direct mail,
door drops, SMS (text messaging), email promotions
DM informs and persuades customers to respond to offer
DM in larger companies use loyalty club data for regular communications; also popular with smaller hospitality businesses
Leaflets, newsletters and seasonal greeting cards are cost effective and help maintain customer relationships
DM is powerful marketing communication tool: company has complete control of the message, medium and timing of
its delivery customers and prospective customers are precisely targeted message easily personalized removes intermediaries and commissions impact of the DM campaign has immediate results costs and return from a DM campaign can be measured
Planning marketingcommunication campaigns
1. Set objectives2. Set budget3. Define target audience4. Agree marketing communication
strategies and tactics5. Plan implementation6. Measure results of the campaign
Marketing communication budgets
Affordable small hospitality operators make promotional decisions on what is
affordable owners respond to media offers, make judgments on ‘gut instinct’
Percentage of sales many hospitality businesses set marketing budgets as a percentage of
last year’s or next year’s sales ‘norm’ for marketing costs depends on hospitality sector problem that communication budget is not linked to business needs
Marketing communication budgets (continued)
Competitive parity major hospitality brands fight for market share significant marketing communication activity aware of competitors communication campaigns competitive parity budget concept based on spending a similar amount
of money on marketing communication activity as competitors if competitor tries to increase share of voice (SOV) by increasing
budget, then competitors match increase in spending to maintain their SOV
Objective and task objective and task approach adopts systematic method by setting
objectives and agreeing the marketing communications tasks needed to deliver those objectives
costs are calculated on communication activities marketing communication budget agreed too complex for smaller companies preferred method of larger organizations
Push and pull strategies Alternative strategies for managing sales via intermediaries
Push strategy prioritizes intermediaries as the main target audience
Marketing communication activities focus on intermediaries who expected to influence end-users buy brand
Pull strategy prioritizes marketing communication activity to end-users
Aims to make brand customer’s first choice by direct decision, or when discussing requirements with intermediary
See Figure 9.7
Measuring the results Effective measurement of results based on setting measurable marketing
communication objectives
Marketing research measurements (brand awareness/image) companies employ market research agencies to establish current levels of
awareness and image before campaign starts provides benchmark setting a measurable objective during/after campaign, agency uses same research methods to establish changes
in levels of brand awareness and brand image
Response measurement and ROI measurable behavioural response as measure of effectiveness calls to the contact centre, website visitors, coupon redemptions, competition
entries, bookings many people/processes involved in monitoring and reporting behavioural
response reservations department, or the telesales bureau, record number of bookings online promotions and bookings are easily monitored using appropriate
technology advertisements ask consumers to quote a code when calling for more information
However, some campaigns stimulate lots of interest and few sales – so conversion ratio of turning enquiries into bookings is critical
Conclusion
Marketers are responsible for communicating the hospitality offer
Most visible part of marketing
Managing a communication campaign involves:
agreeing available budget
setting campaign objectives
delivering a consistent message across all elements of campaign
creativity increases effectiveness of campaign
agencies provide professional, specialist marketing communication services
marketing communication activities should be measured and evaluated
References and further reading Chaffey, D., Ellis-Chadwick, F., Johnston, K. and Mayer, R. (2006). Internet
Marketing: Strategy, Implementation and Practice (3rd ed.). Prentice Hall. Lander, N. (2009). ‘Beware the Small Print’. Financial Times, April 25/26, Arts and
Weekend, p. 4. McCabe, S. (2009). Marketing Communications in Tourism and Hospitality:
Concepts, Strategies and Cases. Butterworth-Heinemann. Morgan, N. and Pritchard, A. (2000). Advertising in Tourism and Leisure. Butterworth-
Heinemann. Reich, A. Z. (1997). Marketing Management for the Hospitality Industry. John Wiley Shoard, C. (2007). ‘I have a lot of curiosity’. Financial Times, June 23/24, Life and Arts,
p. 3. Smith, P. R. (1995). Marketing Communication: An Integrated Approach. Kogan Page TRI HotStats. (2010). TRI Hospitality Consulting. London: TRI. Wai-sum Siu, W.-S. and Fung, M.-Y. (1998). ‘Hotel advertisements in China: a content
analysis’. Journal of Professional Services Marketing (now published as: Services Marketing Quarterly), 17 (2), pp. 99–108.
Yeshin, T. (1998). Integrated Marketing Communications. Butterworth-Heinemann. Zeithaml, V. A. and Bitner, M. J. (2003). Services Marketing (3rd ed.). McGraw-Hill.