Market Pricing Unit IV

MARKET PRICING ELEMENTS OF MARKETING: Product Price Promotion

Competencies for Revenue Management 1. Explain the concept of revenue management, and discuss how managers can maximize revenue by using forecast information in capacity management, discount allocation, and duration control. 2. Discuss common formulas managers use to measure and manage revenue.

Competencies for Revenue Management 3. Explain how revenue management decisions are affected by group room sales, transient room sales, other revenue opportunities, local and area-wide activities, special events, and fair market share forecasting. 4. Discuss the revenue manager’s role and position, summarize typical revenue meetings, outline potential tactics to use in periods of high and low demand, discuss revenue management tactics, and explain how revenue management software helps hotel managers.

Benefits of Revenue Management Improved forecasting Improved seasonal pricing and inventory decisions Identification of new market segments Identification of market segment demands Enhanced coordination between the front office and sales divisions Determination of discounting activity

Benefits of Revenue Management Improved development of short-term and long-term business plans. Establishment of a value-based rate structure Increased business and profits Savings in labor costs and other operating expenses. Initiation of consistent guest-contact scripting

Heritage Institute of Hotel & Tourism Sale Close The concluding phase of every sale is known as CLOSE. Steps are: Assumption close Choice close Narrative close Minor point close Physical action close Asking the customer Heritage Institute of Hotel & Tourism 7

Ten commandments of a good salesman Speak to people Smile at people Call people by name (Remembering) Be friendly and helpful Be cordial Be genuinely interested in people Praise Considerate with others’ feelings Be thoughtful of others’ opinion Be alert to give service Heritage Institute of Hotel & Tourism 8

Qualities of a sales person Recognize customers motive for buying. Product Knowledge (Know what you are selling and what are the USP ). Direct conversation for the sales leads. Understand to whom you are selling. 9

MARKETING Marketing is the planning and execution of the production, pricing, promotion and distribution of goods and services to create exchanges that achieve individual and business objectives. You meet their needs. They are aware that you meet their needs. They are motivated to buy from you. They are motivated to keep buying from you.

MARKETING Sell the Benefits: Customers won’t buy from you if they can’t receive benefits from doing so. Customers always ask: “what’s in it for me?”