Learning Objectives: Chapter 15 Advertising

1. Describe the steps involved in planning the advertising effort. 2. List the three categories into which advertising objectives can usually be divided. 3. Explain the difference between consumer and trade advertising. 4. Explain the three components of advertising message strategy and list the alternative creative formats. 5. Explain the seven factors considered when selecting advertising media.

Learning Objectives: Chapter 15 Advertising

6. List the advertising media alternatives. 7. Describe the advantages and disadvantages of various advertising media alternatives. 8. Explain how the hospitality and travel industry uses different advertising media. 9. Describe the role of advertising agencies and the advantages of using them.

Steps in Planning Advertising

1. 2. 3. 4.

Set advertising objectives. Decide on in-house advertising or agency. Establish a tentative advertising budget. Consider cooperative advertising (partnership). 5. Decide on advertising message strategy: Message idea Copy platform Message or creative format

Steps in Planning Advertising

6. 7. 8. 9. 10.

Select advertising media. Decide on timing of advertisements. Pretest advertisements. Prepare final advertising plan and budget. Measure and evaluate advertising success.

Categories of Advertising Objectives

1. Informative advertising. 2. Persuasive advertising. 3. Reminder advertising. RIP acronym = Remind - Inform - Persuade

Advertising Objectives
1. Informative advertising:  To create awareness of the organization.  To explain the characteristics of the organization.  To correct false impressions about the organization.  To reduce peoples apprehensions or fears about visiting the organization.  To build or enhance the organizations image or position.

Advertising Objectives

2. Persuasive advertising:  To increase customer preference for the organizations services.  To increase customer loyalty to the organization.  To encourage customers to switch from using a competitive organization.  To convince customers to book at the organization now or in the future.  To change customers perceptions.

Advertising Objectives

3. Reminder advertising:  To remind customers about where they can book the organizations services.  To remind customers about facilities or services that are unique to the sponsoring organization.  To remind customers about when they should book or reserve the organizations services.  To remind customers of the existence of the organization.

Difference between Consumer and Trade Advertising

 Consumer advertising: aimed at the customers who will actually use the hospitality and travel services being promoted.  Trade advertising: aimed at the travel trade intermediaries who will influence customers buying decisions.

Advertising Message Strategy

 The advertising message strategy describes what is to be communicated and how it is to be communicated. It consists of the: Message idea: the main theme, appeal, or benefit to be communicated in the message. Copy platform: a written statement that fully describes the message idea. Message or creative format: a broad creative approach used to communicate the message idea to the target audiences.

Message or Creative Formats

       

Testimonial. Slice of life. Analogy, association and symbolism. Trick photography or exaggerated situations. Word plays or made-up phrases. Honest Twist. Fear. Comparisons.

Advertising Media Selection Considerations

 Target markets and their reading, viewing, and listening habits.  Positioning approach, promotional goals, and advertising objectives.  Media evaluation criteria.  Relative strengths and weaknesses of each media alternative.  Creative requirements.  Competitive media placements.  Approximate total advertising budget available.

Media Evaluation Criteria

       

Costs. Reach. Frequency. Waste. Lead time and flexibility. Clutter and dominance. Message permanence. Persuasive impact and mood.

Newspaper Advertising: Advantages

        

High reach. High geographic concentration. Good frequency. Tangibility. Short lead times (flexibility). Relatively low cost. Ability to communicate detailed information. Ability to place in most appropriate location. Ability to schedule to exploit day-of-week factors.

Newspaper Advertising: Disadvantages

 High waste factor and inability to target.  Limitations on creative format.  Relatively poor reproduction quality.  Clutter.  Short life span.  High cost of national coverage.

Magazine Advertising: Advantages

     

Tangibility. High audience selectivity. Good reproduction quality. Long life span and good pass-along rate. Prestige and credibility. Ability to communicate detailed information.

Magazine Advertising: Disadvantages

 Limitations on creative format.  Clutter.  Low reach.  Low frequency.  Long lead times.

 Relatively expensive.  Difficulties in geographic targeting.  Inability to schedule to exploit day-of-week factors.

Television Advertising: Advantages

Potentially high reach. High persuasive impact. Availability of uniform national coverage. Exploits day-of-week and time-of-day factors.  Some geographic and demographic selectivity.    

Television Advertising: Limitations

    

High total cost. Short life span. Inability to transmit detailed information. Clutter. Relatively high waste factor.

Radio Advertising: Advantages

    

Relatively low cost. Audience selectivity. High frequency. Short lead times (flexibility). Exploits time-of-day and day-of-week factors.

Radio Advertising: Disadvantages

 No visual communications.  Cant transmit complex messages or detailed information.  Short life span.  Clutter.  Shared attention.

Direct Mail Advertising: Advantages

       

Audience selectivity. Highly flexible. Relatively uncluttered. High level of personalization. Ability to measure response. Tangibility. Low minimum cost. Short lead times.

Direct Mail Advertising: Disadvantages

 Junk mail syndrome and high discard rate.  Relatively high total cost.  Limitations on creative format.

Outdoor Advertising: Advantages

    

High reach and good frequency. Geographic selectivity. Relatively uncluttered. Long life span. Large size.

Outdoor Advertising: Disadvantages

 High waste factor and inability to target.  Relatively long lead times.  Cant transmit complex messages or detailed information.  Not prestigious.  Limitations on creative format.  Inability to schedule to exploit day-ofwork or time-of-day factors.

Interactive Media: Advantages

      

Cost effectiveness. Easy to modify. Interactive content. International reach. Expanding market. Constant availability. Ease of traffic measurement.

Interactive Media: Disadvantages

   

Privacy concerns. Partial market coverage. Navigation problems. Loss of control.

How the Hospitality and Travel Industry Uses Advertising Media

 Fast-food companies tend to focus upon and emphasize television advertising.  Airlines tend to place an emphasis on newspaper advertising.  Hotel companies tend to use a combination of media.  Everyone is moving toward more advertising on the World Wide Web.

Roles of Advertising Agencies

    

Advertising planning. Creative services. Media services. Research services. Sales promotion and merchandising services.

Advantages of Using Advertising Agencies

 Employ the best creative minds in advertising.  Have accumulated experience from working with a wide diversity of clients; have a broader perspective and are more objective.  May save the organization money.  Agencies are more familiar with media and media vehicles.