Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Chapter 15 Hospitality Marketing

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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 P’s) Explain how sales are conducted in the hospitality business

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ “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 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 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 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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 SWOT Strengths Weaknesses Opportunities Threats

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Figure 15-2 SWOT Analysis

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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 Figure 15-3 Market Segmentation Process

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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 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 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 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 customer’s 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 Marketing Mix Five P’s Product Price Place/distribution Promotion People

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Pricing Strategies Demand-based Value Negotiated Quantity discount Cash discount Seasonal discount Pricing by priority Price bundling

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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 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 E-Marketing Databases Websites

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Sales Market share RevPar Segmentation Association SMERF Sales quotas

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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