2. 3.04-UNDERSTAND DESTINATION MARKETING STRATEGIES. Unit 3-Understand hospitality marketing

3. Marketing The process of DEVELOPING, PROMOTING, PRICING, and DISTRIBUTING products and services in order to satisfy customers’ needs and wants. Interactive Marketing-Two way communication with customers. Typically moving towards online transactions. -Example-Booking a tour on a website

4. Market The group of ALL potential customers. Businesses must understand who their potential customers are

5. Target market The SPECIFIC segment of a total market that a company desires to have as customers and toward whom it directs its marketing efforts.

6. Niche Market A niche market is the division of the market on which a specific product is focused.  product features, price range and quality are aimed at satisfying specific market needs.  Example: a 3 day cruise offering several culinary classes for women who enjoy cooking.

7. Market segmentation DIVIDING the entire market into SMALLER groups having similar characteristics. Demographic segmentation Geographic segmentation Every business must decide which customers it can serve in order to be successful.

8. Demographic segmentation Based on vital statistics of the population. Age Race Gender Education level Income level Occupation NO MATTER WHAT…YOU WILL ALWAYS BE A PART OF A DEMOGRAPHIC BREAKDOWN!

9. Geographic segmentation Example: A cruise highlighting an Alaskan tour.

10. Marketing mix A combination of decisions a business must make in order to best reach its target market; known as “the four Ps” of marketing. Product Place Price Promotion

11. Product Will it be a hotel or restaurant? What is the concept of the restaurant or hotel? Will it be a luxury resort or a place with fewer amenities? Marketers must decide what is in DEMAND and bring those products and services to the consumer.

12. How and where will products be offered to customers? What is the most efficient method of transportation? How to arrive and depart locations. Key places to visit in a specific traveler destination. Products/services MUST be available at the right time and location. Place

13. Price Example: Motel that positions itself when emphasizing good value and low rates. Determining a value to charge… Many hotels use revenue management software to help calculate the best price to charge for guest rooms.

14. Promotion Communication that IPR’s customers of the goods and services available to them. I-Inform, P-Persuade, R-Remind -Main goal is to create product demand Advertising Sales Promotion

15. Advertising Any PAID form of NONPERSONAL presentation of ideas, goods, or services made by an IDENTIFIED SPONSOR. Example: Promotional brochures provide customers with information about vacation packages

16. Radio Popular with consumers in homes, cars, and places of work Reaches approximately 96 percent of all people age 12 and over in a given week Prime advertising slots are during morning and afternoon commutes to and from work. Universally used medium Short preparation and lead time Low cost for selective local audiences

17. Direct Mail Little wasted circulation Flexible and versatile Design, message, audience, and cost can be closely regulated. Used by small, specialty retailers Results can be easily evaluated. - Any printed advertising/postcard distributed directly to potential customers and former guest by mail.

18. Social Media Blogger/Tumblr Email Facebook Instagram LinkedIn Twitter

19. Sales Promotion Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service varied. Example: “enter to win a free night’s stay”

20. Personal Selling PERSONALIZED, TWO-WAY COMMUNICATION with a customer in the process of exchanging merchandise for money or credit.  Major form of promotion  Very expensive because it requires individuals to make contact with potential customers  Selling directly to end users (travelers)

21. Unique selling proposition A unique selling proposition, which defines your company’s unique position in the marketplace, is an often overlooked but very important element of creating a business that customers love. Very important component of hospitality and tourism due to stimulate interest in different products. Differentiation is the foundation of a USP.

22. Determining customer needs and wants Travel agents must determine needs and wants of customers. Once they understand needs and wants travel agents help customers by creating positive image and explaining benefits and attributes of a product/service.  Example: “Where are you interested in going on your cruise?”

23. Suggestion Selling/Standing Room Only Suggestion Selling-Recommending tours, plans or trips to clients based on their needs and wants.  Asking guest if they want to prefer a suite instead of a king single room.  Clients wanting to tour different states at their own leisurely pace. Standing Room Only- The method of closing the sale that is used when a product is in short supply or when the price will be going up in the near future. Booking the trip as soon as possible before the dates fill up.

24. Handling Objections Objections: Honest reasons a customer hesitates to buy.  May be spoken or unspoken (hidden)  May relate to the product, price, store, time, salesperson, or need  May occur at any point in the sale  To handle an objection, listen, acknowledge, restate, and then answer the objection.  Example: Once an objection is raised, a sales person often needs to obtain a contract for large business conferences.