Advertising Cost Strategy for Competitive Advantage in Indian Hospitality Industry - A Study of Recent Trends
Posted: 20 Sep 2009
Date Written: June 10, 2009
Hotel Advertising necessitates the preparation of a budget, which focuses on the future long-term benefits and involves accurate planning and implementation especially with many co branding and tie in activities. Then advertising has become part of business strategy. Benefit theory being the essence of advertising, should match the objectives of the firm with the general environment, competitive advantages vis-a-vis the strategic functional areas like Marketing, Finance, and Human Resource Management etc. When the advertising activity is identified as a key functional strategic area in the hotels, the advertising cost requires to be closely monitored to minimize waste and maximize the utility/ technicality of the allocation. The advertising budget estimates the future advertising expenditure that will be used to implement managerial decisions to maintain or improve profit results. In this research, effort has been made to zero in the most EFFECTIVE AND PROFTIBLE advertising cost strategy adopted by the hotel industry. Hospitality industry applications are taken with hotel strategies here. The author has taken 250 samples from India and has found that 'Pay out planning method - advertising cost as per expected rate of return' remains the popular method of advertising cost plans. Also, planning for long term advertising has resulted in a cost advantage in competition.
Keywords: Advertising cost strategy, Advertising strategies in hotels, Competitive advantage and advertising
JEL Classification: G30, G32
Suggested Citation: Suggested Citation