As a marketing manager in your industry discuss and evaluate how you would strategically utilise marketing research and

marketing information as a marketing management tool. In a recent article (Anon, 2010). It was stated that Research is cheap if you want to stay in business, expensive if you dont.

A marketing manager will make numerous decisions strategically and tactically in the process of identifying and satisfying their customer base. The above quote should question if not enhance the need for a manager to understand the importance of marketing research and marketing information, importantly how to use them effectively in defying the link in the marketing variables with the environment and customers.

So how does a marketing manager collect the data? The two main sources are secondary data which is information that already exists that has been collected for another purpose, the benefits out ways the primary data source in cost, time accurately etc. Secondly, primary data is information collected for a specific purpose at hand. The research is often split into two areas, target marketing qualitative and quantitative, and the methodological approach business to business (B2B) and consumer research. Marketing Research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organisation. (Kotler and Armstrong, 2010,129). Wilson (2006) also defines market research as having seven steps see Appendix 1.The role of marketing research is to help tackle or resolve one off problems or issues, assist in making plans and setting objectives for the future, monitor changes in the environment and build up a database or MIS- Marketing Information System that can become a resource for marketing techniques.

As a Marketing Manager, marketing research creates an insight into the pre-conceived motives of a customer base in their buying behaviour and fulfilment. It determines market worth in shares, realistic potential growth and helps measure how effectively

their product/service is priced, advertised with the aid of promotions and the awareness or distribution of a tangible/intangible product.

The method in which the information is obtained can somewhat be systematical as the Marketing Research Process has four steps, defining the problem and research objectives, developing the research plan for collecting information, implementing the research plan, collecting and analyzing the data and lastly interpreting and reporting the findings. defined by ( Armstrong & Kotler, 2007,130). The first step is the most important and yet the hardest to formalise in order to achieve the required end result, the definition of the problem is paramount, see Appendix 2.

The marketing process encourages the organisation to be driven by standards and somewhat a vision in that the goal of serving, satisfying consumers in a professional manner to achieve the monetary and strategic objectives is reached. The current economic climate dictates that all businesses and organisations face severe challenges, marketing managers are at the forefront of decision making that could influence the performance and employment prospects of the company. Ashley Stockwell of Virgin media stated in Marketing Week, The HR and marketing functions have much in common; the employer brand is just as vital to the success of an organisation as the customer brand... When employees get brands, brands get customers. (Mc Ewan, M. 2010, 12).They need to be armed with the correct factual information available when deciding the future of their product or service. Peter Chisnall cited that information is the raw material of management. (Housden, 2010, 3). This is backed up by Marketing information by itself has little value. The value is in the information and how these insights are used to make better marketing decisions. (Kotler and Armstrong, 2010,123).

An assumption could be made that, the method or source of assembling data is less significant than the quality of information. Most companies would gather data from a number of databases and internet sources in order to meet the demands of the project and the process of research. Wilson suggests that marketers develop customer data bases for four reasons, to personalise marketing communications, to improve customer

service, to understand customer behaviour and to assess the effectiveness of the marketing and services activities. (Housden, 2010,19). The information gathered requires additional analysis, either by data mining which is a tool that transforms data into marketing intelligence by identifying and extracting patterns or Customer Relationship Management, this is a software tool to help manage detailed information about individual customers and to manage touch points in order to ma ximise customer loyalty. Identity theft and organisational data losses mean customer confidence has been shaken, ensuring all legislative and regulatory codes are adhered to, is vital to protect the customer.

The growth of the computerised generation has a great impact on the marketing department. The internet is accessible by all of the worldwide population. 60% of adults access internet every day in 2010. The number of adults who brought or ordered goods or services online within the last 12 months reached 31 million in 2010. (www.statistics.gov.uk accessed 03/10/10).

The introduction of social networking sites such as Facebook, Twitter and MySpace are an excellent marketing tool when correctly managed and positioned in the relevant markets. Marketing budgets are more focused on emarketing as growth continues to increase at a rapid pace, service providers are acutely aware of the hours spent surfing for the best offer at a chosen location or property. The internet creates a tool to visualise the service/product without physical contact. It offers many advantages and yet some disadvantages, it can be more cost effective in response rate, quicker in the speed of data of which it collects and the control of customer base is financially targeted. For example 27% of all reservations for accommodation in the Ramada Portrush were derived from website bookings. The marketing manager is armed with these similar statistics above to tailor/shape the marketing plan ensuring budgeted resources for targeting, thereby allowing the maximum return with accurate decision making. A business can be thrown off track by the internet, forgetting what they stand for or indeed what makes them exclusive in attracting customers.

With the use of evolving internet technologies a marketing manager faces new challenges to generate higher levels of economic value in order to gain cost or price premium by competing in a strategic way. Establishments can imitate sales techniques, meet and exceed customers needs. In order for a business to outperform competition it must deliver greater value to guests or offer a product/service at a lower cost. In the current climate adapting both strategic policies may be vital to sustain business levels and if market conditions are correct shoots of growth. In the Hospitality Review it has been written, The Hospitality Industry is one sector that has really changed dramatically with the onset of the digital age and the development of websites. The hotel sector has become heavily dependent on the web as a means of communication with its customer base. However, for the modern business the dedicated website is much more than an on-line brochure, it is one of the main marketing tools and needs to be interactive and effective. (Gault, 2010, 44).

According to Marketing Week in 2008 the Advertising Standards Authority had received 4,500 complaints relating to company websites. In March 2011 a new remit will come into force defined as being anything directly connected with the supply or transfer of goods or services this includes content on company websites and social networks.

So the question remains, how can a marketing manager use the marketing information as a marketing tool? Research and the data base will be used significantly in the PEST and SWOT analysis, to define future strategies. A pest analysis is a business measurement tool which is used to understand market growth or decline. PEST is an acronym for Political, Economic, Social & Technological factors (see Appendix 3, case study approach, Ramada Portrush) which looks at the external factors of the business prior to completing a SWOT analysis. A swot analysis is an acronym for Strengths, Weaknesses, Opportunities & Threats which encompasses half internal and half external factors.

A SWOT analysis measures the business, whereas a PEST analysis measure the market potential and situation indicating growth or decline, also the perceived business potential, suitability and market potential. Pest analysis can be used by the Marketing

Manager for development in business and marketing to help with decision making as it encourages proactive thinking rather than routine actions. If the business continues to evaluate and drive forward innovations but economically may lead to frustration in the results obtained, the marketing manager can use the information to imitate other successful models. In 2005 Watson stated that Ryanair success is attributed to the replication of Southwest Airlines and indeed McDonalds f ast food system is borrowed from the White Castle Chain. A business needs to commit to imitate in a strategic way keeping in mind the resources e.g. marketing a three star establishment with five star standards and products is likely to fail leading to unrealistic expectations.

The technique of emarketing, with regular follow up to convert enquiries or past users of the service needs to be monitored closely. Blogging, this method can provide essential details about the product, it is much easier method to maintain and add new offers, it is interactive, attracting customers to revisit, and the marketing manager needs to maintain the blog with regular entries so that the product/service doesnt become dated. PPC marketing, online advertising that calculates how many clients have clicked on the advertisement; its main advantage over newspapers/magazines is the measurability. Training staff is vital to collate primary data when taking reservations to determine or measure success rate in advertising.

The use of multimedia on YouTube giving information in a highly interactive manner, e.g. on the service provided or a 360 degree tour of the hotel or bedroom. SEO this web service optimises the website according to the search engine requirements with key words entered by the user directs the user to the website ahead of competition. Interflora is taking M&S to court alleging piggy-backing on Google searches. (www.marketingweek.co.uk accessed 03/11/10). Social networking expands the database of target customers and introduces the business to a wider audience. Trip Advisor is a free travel guide and research website that assists customers in gathering travel information, posting opinions of travel related issues and engaging in interactive travel forums. Trip Advisor is an example of consumer generated media. The website services are free to users, who provide most of the content, and the website is

supported by an advertising business model, as a marketing manager the monitoring of this website is vital to ensure that negative feedback is addressed immediately and report any false unbiased reviews. See Appendix 4. The Ramada Portrush is a hotel operating as a core brand Ramada unde r a license franchise agreement (a case study approach Ramada Portrush, see Appendix 5). The utilisation of information is paramount to the success of driving the business forward. All front of house personnel receive regular training to ensure rate parity and collate information accurately to enable the senior managers make marketing decisions, forecast sales, manage websites, occupancy levels, and third party internets with preset commissionable rates. The marketing research information is collated from the database so that the marketing plan and advertising media used was focused on the core business frequenting the hotel. A marketing campaign was produced, Leave the rest to us which was used to target the customer base effectively.

Tom Conopy, InterContinental Hotels Group have recognised and invested heavily in their database has stated, Magic, our next generation loyalty database holds around 270 million guest profiles, 48 million Priority Reward Club members.(www.ihgplc.com accessed 13/11/10).

The distribution channels by which customers are booking hotels are changing. It highlights the need for a strong and continued marketing presence on the ground, a continuation of the marketing mix employed by the hotel and represented at both Business to Business and Business to Customer Shows and Events. ING recently posted a 6% rise in revenue partially driven by the relaunch of its Holiday Inn Brand. (www.marketingweek.co.uk accessed 13/11/10) The Ramada Portrush as a brand recognises this, a loyalty scheme called Wyndham Rewards where the guest earns points on booking and staying at a Wyndham Hotel has been in place since 2007. The points are accumulated per stay and when collected can be used to either receive free night stays, airline miles, gift cards from Marks &

Spencer, Argos, etc. The perks as a member can earn the consumer points or airline miles, free room upgrades, early check in and late check out, free snack and drink with a convenient online account access. This marketing tool makes the guest brand loyal and creates a feel good and a value for money factor from a hotel perspective it not only increases guest satisfaction but it updates the current database which can be used periodically for marketing research as required. This marketing tool is widely used throughout all industries; currently Boots is extending its Advantage card to collect points from fifty other brand partners which can be redeem at Boots. Customers used their Advantage Card to treat themselves, not add to their shopping, so there is a lot of emotion around it. Primarily the initiative is about strengthening the offer for existing cardholders rather than recruiting new members. (Marketing Weekly, 2010,4). Brands that use social media can earn positive reviews and create avenues for customers to communicate at any time which pays dividends to the brand. Barnett has written, Brands will retain more customers if the focus of their loyalty programmes is on engagement and building long term relationships. (Barnett,2010,28).

Ramada Portrush talks personally and regularly with cardholders so marketing will be a conversation rather than shouting through above the line advertising. The Business Traveller web site has created a discussion forum for potential customers to evaluate all hotel chains/brands loyalty schemes. (www.businesstraveller.com accessed 06/11/10).

The N.I.T.B. have a responsible role in marketing information, it measures standards and quality through an annual inspection in the domestic market of registered establishments. The internet again plays an important role for them, the web page promotes virtual visits of 360 degree tours, suggested itineraries and tours, business together, has booking engines for places to stay using Tidinet. The N.I.T.B. also provide statistical research information evaluating the Northern Ireland market, they collate information on a monthly basis from businesses and tourist attractions this is then segmented into various reports. These reports are available online and can be used to create marketing plans Northern Ireland spent almost 1.9 million nights on short breaks

at home during 2009, representing a 47% increase (an additional 602,000 nights) on 2008. (www.nitb.com accessed 08/11/10).

A marketing manager needs to realise the elusive marketing potential of social networks. Hilton Worldwide has announced the adopting of Microsoft workplace platforms to enhance team member productivity and embrace corporate social media. (Hospitality Review NI, 2010,43). Most companies are establishing presences on Face book, Twitter etc the true value of these sites remain unclear as the word of mouth generated by them is earned unlike traditional advertising which is purchased. The cost is minimum, it can only succeed if the marketing manager plays an active role in maintaining interest to the individuals who sustain virtual world of mouth conversations. The Hastings Hotel Group has achieved this by creating competitions regularly, allowing their customers to brag online about the places the Hastings duck has visited. Starbucks announced in July, its facebook fan base exceeded ten million people. The company directly links its recent strong performance to its social networking efforts and crowds sourced innovations such as My Starbucks Idea.(www.mckinseyquarterly.com accessed 20/11/10).

Can Facebook be a good marketing tool? Yes, it is a cheap media for advertising, alerting sales offers or the expiration of a promotion which are designed as catalysts to generate virtual word of mouth from the mail receipt to distribute to their friends. A marketing manager needs to subsequently remember that the unpredictable nature of word of mouth and not to diversify what makes it valuable in the first place its authenticity. However not all establishments can benefit from Facebook, the cliental fit for a five star hotel would not appreciate their personal details available to all, if they were indeed a member! As marketing manager, does the business ethically want to openly display individuals details such as young children, tempting the unwanted attention of the internet stalker or worse?

In conclusion there are many effective marketing tools a manager can use from social network sites, targeted direct mail, strategic partnerships, loyalty cards, internet and

email marketing, interactive website, SEO, apps, brand awareness, SMS texting and the database within the organisation. The most common strategic response to the recession is to cut expenses and costs of the marketing department, it could be argued that if this is done the business can lose its market share; employees are a companys greatest asset. They can achieve standard driven results, collate accurate information in databases for market research and adjust pricing tactics when a remit has been set. Employees are at the coal face of industry dealing with guest queries, and have access to important factual knowledge on the business which utilised with additional tools can make a substantial contribution to marketing. All marketing tools used need to be measurable to ensure of ROI, (see Appendix 6) technology is paramount in remaining interactive, ensuring brand effectiveness and remaining in real time around the world with the customer. The success of word of mouth marketing through social networks is emerging as an important tool, this can be used strategically to create value to the guest which is paramount for their retention and for the business. As a marketing manager research will give an understanding of where we are now, a clear view of where we might be in the future and how to seize the opportunities that the future can offer which can be strategically utilised as an important management tool.

APPENDIX 1

WILSONS SEVEN STEPS TO MARKETING RESEARCH

Wilson (2006) defines marketing research to have seven steps; 1. Identification of problems and opportunities. 2. Formulation of research needs/research brief. 3. Selection of research provider/agency/creation of research design/choice or research method. 4. Collection of secondary data 5. Collection of primary data 6. Analysis of data 7. Preparation and presentation of research findings and recommendations. Wilsons process is systemical in delivering the correct procedure to enable the marketing manager to achieve an end result.

APPENDIX 2

MARKETING RESEARCH COMPANIES

The process of collating information for marketing can indeed be financially viable yet expensive if external research consultants are not assigned, if personnel employed internally do not have the required experience or skills to execute the process efficiently. So what areas can marketing research be conducted on? A marketing manager will conduct a full service market research on markets products, promotion, distribution and pricing. Examples of external market research companies/consultants which are available on line: MRS with members in more than 70 countries, it is the worlds largest association serving all those with professional equity in provision or use of market, social and opinion research, and in business intelligence, market analysis, customer insight and consultancy. The Market Research Society UK. (http://www.mrs.org.uk accessed 12/11/10).

The Munro group consists of seven market research firms, each specializing in their own particular fields from analysis to fieldwork, customer satisfaction to employee engagement through to media and business research. It is the reputation in these areas that has led to the Munro group becoming a recognized centre of excellence for research focused marketing services. The Munro Group (www.munroglobal.net accessed 12/11/10).

Toluna is a leading online panel and survey technology provider. Toluna has created toluna.com, a unique online community where 4 million consumers interact by creating and contributing to polls and debates. Additionally, Tolunas innovative community management tool, Panel Portal, enables organisations to generate their own customer insight while Quick Surveys, provides responses to 5-question surveys within hours. Toluna Group (www.toluna-group.com accessed 12/11/10).

APPENDIX 3 Hotel Strengths

CASE STUDY - RAMADA PORTRUSH Hotel Weaknesses

-Limited outside car parking

S.W.O.T Analysis

-Highly experienced and committed senior management team and staff. -Leading hotel in the area and award winning -Internationally branded. -Good physical product with high standards throughout. -Very good reputation for food & beverage -Excellent location within Portrush and North coast. -Market reputation for quality, consistently high standards in delivery. - Good and constituent sales and marketing activity with strong and well developed distribution channels. -Strong customer loyalty. -Good revenue mix of accommodation and food & beverage revenues. -Well established systems, processes and supplier relationships. -Low staff turnover at senior level - Financially sound with support of shareholders

-No leisure facilities (wet or dry) - No private residents lounge - Only 69 bedrooms (peak period problem only) -Trading at a very high volume and rate, limited opportunity for further growth. -Capital expenditure required in certain areas. -Over dependent on the FIT and small group leisure market (no significant commercial or LNR contracted business). -Limited tour and group business due to capacity constraints in peak period. -High turnover of operational staff. - Recruitment and retention of skill kitchen staff (partially a factor of high volumes in restaurant).

Market Opportunities
-Growth in off season occupancy -Shoulder season Group Tour business

Market Threats
-Continued economic recession and reduced Public Sector expenditure and jobs, leading to pressure on what is already a very high ADR achieved by the hotel. Reduced meetings and events and residual personal disposal income. -Continuation of low interest rates in the UK (impact on non wage guests of which the hotel has a high profile) -Further hotel competition locally in the upper 3 star hotel. -Continuation dilapidation and blight of Portrush as a destination. -Political stability in NI. - Financial stability of the Republic of Ireland.

APPENDIX 4

TRIP ADVISOR

Tripadvisor is the world's biggest travel site, with 35 million reviews, all written by consumers, on its pages. It is influential with many travelers using the site before deciding where to go on holiday. It faces legal action, after more than 400 hotels and restaurants approached KwikChex.com, a firm which helps companies manage their online reputations. (www.telegraph.co.uk accessed 19/11/10).

APPENDIX 5

THE RAMADA HOTEL PORTRUSH

The Ramada Portrush is a 69 bedroom hotel, with N.I.T.B. three star classification. The seasonability of the hotel was a major factor in achieving room rates, 100% occupancy was obtained over the summer months, special events, etc. Over 60% of staying guests pay the Rate of the Day, this ends to be higher yielding rate which is flexed appropriately depending on demand, during high season the rate tends to be nearer to full rates and not accepting the initial rate quoted, this is now a firmly established practice e.g. Queens University, Diners, Farmers Union, NICSSA, Membership Plus etc this provided the consumer/guest with a discount to entitle them to 50% off Rack Rate or 10% off the Rate of the Day or Promotional Rate, this perk was monitored closely to ensure that on peak periods the quantity of bookings were restricted, fixed blackout periods, are in place were no bookings were taken to ensure the revenue generated did not affect rev. par. The question arises if discount is always given how does a hotel sustain and cover costs and generate profitability? The Ramada Portrush operates similar to the airline business, advance purchase rates are available online with limited availability the closer to the allocated day the rate of the day will either fluctuate or decline depending on the remaining rooms to be sold, with

the hotel having fixed costs and limited controllable costs it is sometimes paramount that a sale/enquiry is converted within a pricing range. Many other hotels such as the Premier Inn that offers a 29.99 per room rate would operate in a similar way. (www.premierinn.com accessed 04/11/10]. In February, the InterContinental Hotels Group attempted to take the guesswork out of hotel room prices by launching a new system that allows it to forecast global demand and conduct price sensitivity modeling, called a price optimization module. (www.smartplanet.com accessed 08/11/10).

APPENDIX 6

ROI -

RETURN ON INVESTMENT

As a marketing manager the marketing expenditure on advertising etc must be accountable and measurable, one could argue that the intangible methods and the production of intangible outcomes does not lend to easily to the measurement of productivity or return. Marketing ROI is the net return from a marketing investment divided by the costs of the market investment. ROI is calculated as a percentage. In simple terms, the calculation is: (Profit Investment) Investment NMC Net Marketing Contribution NMC =Net Sales-Cost of goods sold Marketing Expenses ROS Marketing Return on Sales = Marketing ROS =Net marketing Contribution Net Sales Marketing ROI = Net Marketing Contribution Net Marketing Expenses

Below are a list of measures & metrics that Robert Lesser has citied in 2010, that act as indicators of the health of the lead generation process, the sales channel and lead conversion.

Marketing Lead Quality (Sales assessment of Marketing) - Rate of discarded leads - Direct sales and/or channel satisfaction with lead quality

Sales Quality (Customer assessment of Sales) - Ability of sales to contact the lead as requested by the lead - Sales effectiveness in reaching leads - Rate of consideration - Prospect & customer satisfaction

Sales Cycle or Lag Time (Process tracking) - Aging of leads - Average time-to-conversion to sale

Win / Loss (Results tracking & benchmarking) - Conversion rate - Deal share vs. competitors - Rate of consideration - Average revenue/profit per close - % deal at price parity, premium or discount (www.lenskold.com accessed 08/11/10)

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