1. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Chapter Eight Understanding Organizational Customers

2. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Generic Organizational Market  Groups may have a common purpose, but meeting planners must satisfy all wants and needs  Meeting planners

3. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

4. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Planning the Event 1. Buy time 2. Assess the needs 3. Set measurable goals 4. Develop a plan 5. Resolve the meeting 6. Execute the meeting 7. Evaluate the results

5. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Corporate Travel Market  Corporate travel manager coordinates travel/leisure for employees  Third largest controllable expense for U.S. companies  Desirable market for hotels  Must know the needs of the client  Working with the corporate travel market: –Know the volume to better negotiate price –Understand travel patterns –Control costs

6. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

7. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

8. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

9. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Corporate Meeting Markets  Most common type: management meetings/seminars  Planner must please the organization and the site  Hotel/site must please the client  High expectations on both sides

10. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Conference Centers  Carefully designed facilities to meet the needs of this market  Designed to serve this specific market  May have complete meeting packages (CMP)  International Association of Conference Center Guidelines: –>60% of available meeting space designed to conferences –Conference rooms separate from living/leisure areas –24-hour access needed for clients –>60% of total revenue must be conference related

11. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Incentive Market  Incentive travel is a management tool where meeting, lodging, and entertainment for the group is a reward for the organizational achievement of goals and objectives  Focus on an “extraordinary experience”  Incentive houses can provide planning services

12. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Association, Convention, and Trade Show Markets  Overlap and have similar needs –Association: people meeting for social reasons, usually small and professionally oriented –Convention: usually annual, focus on information distribution –Trade shows: focus on selling products, involves exhibitors

13. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Convention Centers and Convention and Visitors Bureaus  Convention centers: usually in large cities and free-standing  Convention and visitors bureaus (CVBs) –Can be a vehicle for planning convention events –Non-profit –Constituents pay annual fees

14. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

15. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Airline Crew Market  House airline employees and crew on a contractual basis  May be reimbursed per diem  Hotels must cost out revenues and weigh advantages/ disadvantages  Have specific needs –Tight schedules –Odd hours –Quiet rooms  Influenced by: –Supply/demand in hotel marketplace –Unions

16. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The SMERF and Government Markets  SMERF: A segment of organizational customers that don’t fit into other categories  Both usually low rated, but good in slow periods  SMERF includes: –Social –Military –Education –Religious –Fraternal organizations

17. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Group Tour and Travel Market  Group tour –Now is quite heterogeneous –Hotel accommodations are most important  Motorcoach Tour –Usually mature travelers –40% stay overnight –Ad hoc groups –Respond to the needs of the group and individuals

18. © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition