Hospitality Promotion

Unit Essential Question What are the various promotional strategies used in travel and tourism?

Essential Question 1 What are the four types of promotion and how do they relate to the promotional mix?

What is promotion? Any form of communication used by a business to inform, persuade, or remind people about its products and improve its image. There are two forms of promotion: –Product –Institutional

Types of Promotion Advertising Publicity Sales Promotion Personal Selling

Sales Promotion Usually involves short term activities. Offers some type of incentive to make a purchase. Can be successfully used in all channels of distribution.

Personal Selling Oral presentations to one or more potential buyers with the intent of making a sale. The responsibility of sales personnel. The most flexible and individualized type of promotion available.

Strategies for Success Partnerships –Transportation – Airlines, car rental agencies, cruise lines, etc. –Credit cards – MasterCard, Visa, Dinners Club, American Express, etc. Intermediaries –Travel agents –Tour operators

Promotional Mix Promotional Mix: The combination of advertising, publicity, sales promotions and personal selling strategies.

Essential Question 2 What is personal selling and how is it accomplished?

What is Selling? Helping Customers make satisfying buying decisions - The kind they will be happy with after the sale.

Goals of Selling To ensure customer satisfaction so the firm can count on repeat business. To help customers decide on purchases.

Feature - Benefit Selling The concept that a salesperson needs to match the features of each product to a customer’s needs and wants. –Product Features: A physical characteristic or quality of a good or service that explains what it is. Tangible Product Feature: Physical characteristics of a product. Extended Product Features: Although not always physically part of the product, important in the purchase decision.

Feature - Benefit Selling The concept that a salesperson needs to match the features of each product to a customer’s needs and wants. –Customer Benefits: Advantages or personal satisfaction a customer will get from a good or service. How does the feature help the product’s performance? How does the performance information give the customer a personal reason to buy the product?

Essential Question 3 What takes place during each phase of the sales process?

Steps of A Sale 1. Pre-approach: Looking for customers and getting ready for the sale. 2. Approaching the customer: Actually greeting the customer face-to-face. 3. Determining needs: Learning what a customer is looking for.

Steps of A Sale 4. Presenting the product: Educating the customer about the product’s features and benefits. 5. Handling questions and objections: –Learning why the customer is reluctant to buy. –Providing information to remove that uncertainty. –Helping the customer make a satisfying buying decision.

Steps of A Sale 6. Closing the sale: Getting the customer’s positive agreement to buy. 7. Suggestion selling: Suggesting that the customer buy additional merchandise or services. 8. Reassuring and following up: Helping a customer feel that he or she has made a wise purchase.

Essential Question 4 What is advertising and publicity and how do they compare and contrast?

Advertising Paid presentation of ideas, goods, or services directed toward a mass audience.

Types of Advertising Product: –Creates an interest in the product. –Introduces new products and businesses. –Explains a product. –Supports personal selling efforts. –Creates new markets. Institutional: –Creates a favorable impression and goodwill for a business or an organization. –Presents information about the companies role in the community.

Advertising (Print Media) Newspaper Finance News Magazines TIMES

Advertising (Print Media) Direct Mail Outdoor Advertising

Advertising (Print Media) Directories Transit Advertising

Advertising (Print Media) Other print media.

Advertising (Broadcast Media) Television

Advertising (Broadcast Media) Radio Internet

Publicity Builds a business’ image. Publicity is free. Not much control over the message being sent to the public.

Types of Publicity News Releases Feature Articles Photos Press Conference Public Relations

Essential Question 5 What are the various types of sales promotions used in hospitality marketing?

Sales Promotion Usually involves short term activities. Offers some type of incentive to make a purchase. Can be successfully used in all channels of distribution.

Types of Sales Promotion Licensing: Partnering with another business, organization or celebrity to license, for a fee, their logo, trademark, name and likeness, personal endorsement, etc. to be used in promoting the hotel or restaurant. –Example: A celebrity endorses a particular restaurant or hotel.

Types of Sales Promotion Promotional Tie-Ins: Promotional arrangements between two or more companies who combine their resources to do a promotion that will result in increased sales for each partner. –Example: Carnival Cruise Lines offers a discount if you fly Delta Air Lines. Visual Merchandising: Floor, window, and counter displays as well as the business layout and general ambience.

Types of Sales Promotion Premiums & Incentives: –Coupons: Offers a discount on a product or service. –Contests or games: May involve writing a short story or essay about a product or organization where the winner gets an all expense paid trip. –Sweepstakes: A good example would be McDonalds’ Monopoly game. –Rebates: A portion of the purchase price is returned to the customer. –Specialty Items: Low-cost items such as pens, key chains, and calendars.