Advertising Cost Strategy for Competitive Advantage in Indian Hospitality Industry - A Study of Recent Trends

Posted: 20 Sep 2009

See all articles by Padma Srinivasan

Padma Srinivasan

Manipal University, Bangalore Campus

Date Written: June 10, 2009

Abstract

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

Srinivasan, Padma, Advertising Cost Strategy for Competitive Advantage in Indian Hospitality Industry - A Study of Recent Trends (June 10, 2009). Available at SSRN: https://ssrn.com/abstract=1417282

Padma Srinivasan (Contact Author)

Manipal University, Bangalore Campus ( email )

Bangalore, Karnataka
India

HOME PAGE: http://www.manipal.edu

Do you want regular updates from SSRN on Twitter?

Paper statistics

Abstract Views
1,968
PlumX Metrics