Learning Objectives: Chapter 15 Advertising

1. Learning Objectives: Chapter 15Advertising • Describe the steps involved in planning the advertising effort. • List the three categories into which advertising objectives can usually be divided. • Explain the difference between consumer and trade advertising. • Explain the three components of advertising message strategy and list the alternative creative formats. • Explain the seven factors considered when selecting advertising media.

2. Learning Objectives: Chapter 15Advertising • List the advertising media alternatives. • Describe the advantages and disadvantages of various advertising media alternatives. • Explain how the hospitality and travel industry uses different advertising media. • Describe the role of advertising agencies and the advantages of using them.

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

4. Steps in Planning Advertising • Select advertising media. • Decide on timing of advertisements. • Pretest advertisements. • Prepare final advertising plan and budget. • Measure and evaluate advertising success.

5. Categories of Advertising Objectives 1. Informative advertising. 2. Persuasive advertising. 3. Reminder advertising. RIP acronym = Remind - Inform - Persuade

6. 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 organization’s image or position.

7. Advertising Objectives 2. Persuasive advertising: • To increase customer preference for the organization’s 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.

8. Advertising Objectives 3. Reminder advertising: • To remind customers about where they can book the organization’s 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 organization’s services. • To remind customers of the existence of the organization.

9. 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.

10. 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.

11. 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.

12. 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.

13. Media Evaluation Criteria • Costs. • Reach. • Frequency. • Waste. • Lead time and flexibility. • Clutter and dominance. • Message permanence. • Persuasive impact and mood.

14. 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.

15. 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.

16. 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.

17. 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. Magazine Advertising: Disadvantages

18. 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.

19. Television Advertising: Limitations • High total cost. • Short life span. • Inability to transmit detailed information. • Clutter. • Relatively high waste factor.

20. Radio Advertising: Advantages • Relatively low cost. • Audience selectivity. • High frequency. • Short lead times (flexibility). • Exploits time-of-day and day-of-week factors.

21. Radio Advertising: Disadvantages • No visual communications. • Can’t transmit complex messages or detailed information. • Short life span. • Clutter. • Shared attention.

22. 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.

23. Direct Mail Advertising: Disadvantages • “Junk mail” syndrome and high discard rate. • Relatively high total cost. • Limitations on creative format.

24. Outdoor Advertising: Advantages • High reach and good frequency. • Geographic selectivity. • Relatively uncluttered. • Long life span. • Large size.

25. Outdoor Advertising: Disadvantages • High waste factor and inability to target. • Relatively long lead times. • Can’t transmit complex messages or detailed information. • Not prestigious. • Limitations on creative format. • Inability to schedule to exploit day-of-work or time-of-day factors.

26. Interactive Media: Advantages • Cost effectiveness. • Easy to modify. • Interactive content. • International reach. • Expanding market. • Constant availability. • Ease of traffic measurement.

27. Interactive Media: Disadvantages • Privacy concerns. • Partial market coverage. • Navigation problems. • Loss of control.

28. 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.

29. Roles of Advertising Agencies • Advertising planning. • Creative services. • Media services. • Research services. • Sales promotion and merchandising services.

30. 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.