Chapter 15 Hospitality Marketing

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to:

Define marketing Describe the steps in the marketing system Describe the importance of marketing to the hospitality industry Name the four aspects of the SWOT analysis and how they can be used for strategic planning Explain the marketing segmentation process Name and describe the marketing mix (five Ps) Explain how sales are conducted in the hospitality business
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Official Definition of Marketing

A social and management process by which individuals and groups obtain what they need and want through creating and exchanging value with others.

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Hospitality Marketing Includes:

Finding out what guest wants and needs are Providing the guest with solutions Creating guests and keeping them coming back

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Hospitality is Unique

Products are:

Perishable Intangible Interrelated

Guests can become brand loyal

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Marketing is About

Place (location) Distribution (making the product readily available) Pricing (the cost and profit margins) Product image (how the product is perceived) Promotion (communication to the market) Relationship marketing
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Strategic Planning

Market Demand

Economic Social Political Technological

Competitor Analysis

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

SWOT

Strengths Weaknesses Opportunities Threats

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Figure 15-2
SWOT Analysis

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Marketing Segmentation Process

Divide into segments Profile segments Analyze segments Formulate strategy for each segment

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Figure 15-3

Market Segmentation Process

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Target Markets

Demographics

Age Gender Income Social class Occupation Family structure Geography Ethnicity

Usage

Lifestyle Family life cycle

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Figure 15-4

Illustration of a Target Market

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Positioning Statement

Better than the competition Different than the competition Opposite of the competition

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Brand Marketing

Brand defined Brand identity

Easy to remember Associated with value Positive connotation Easily recognized Looks good in color and in black and white Catch the customers eye Usable, pleasant and non-offensive Easy to pronounce and spell

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Marketing Mix

Five Ps

Product Price Place/distribution Promotion People

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Pricing Strategies

Demand-based Value Negotiated Quantity discount Cash discount Seasonal discount Pricing by priority Price bundling
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Forms of Marketing

Sales promotion Advertising Direct selling Public relations

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Figure 15-5

Effect Promotion Has on the Buying Process

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

E-Marketing

Databases Websites Email www.expedia.com www.hotwire.com www.travelocity.com www.hotels.com www.gotrooms.com

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Sales

Market share RevPar Segmentation

Association SMERF

Sales quotas
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Trends

Strong growth potential for industry with economic growth Increase in creative marketing Globalization Increased importance of retaining guests Bounce-back effect from 9/11 Continued increase in Internet sales
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker