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CHAPTER 1
What is Hospitality Marketing?
1.1 Marketing Basics
1.2 Hotel Marketing: A competitive Industry
1.3 The Importance of Hospitality Marketing
HOSPITALITY MARKETING
• Internet reservations for hotels are now routine (1)
• “W” Hotels are featuring high tech wireless amenities (2)
• Hilton Hotels announced plans for the first luxury hotel in space (6)
Hospitality!
• Travelers want a clean room and someone to keep it clean. (10)
• Customers want quality food and someone to prepare and serve it well. (11)
Marketing Mix
1. Product: what a business offers customers to satisfy needs
2. Price: the amount that customers pay $ $ $
3. Promotion: combination of methods used to inform customers of the products
4. Distribution: method used to get the product or service to a customer (12)
Functions of Marketing
Marketing-information management Financing
Pricing
PromotionProduct/Service management
Distribution
KEY MARKETING FUNCTIONS
Selling
Survey, historyPayment plans, upgrades, budgeting, cash flow
Value and cost of products, supply & demand pricing
Images, Informing customers, advertising, P/R
Designing, developing, improving product, stay competitive
Getting product to customer, service
Determine & satisfy needs, get money
(COMPLETE HAND OUT) (14)
FUNCTIONS OF MARKETING
1. Marketing Information Management: gathering and using information about customers
2. Financing-acquiring and budgeting financial resources to stay in business and payment plans for customers
3. Pricing-determining the value and cost of goods and services, supply and demand in travel industry determines this most of the time
FUNCTIONS OF MARKETING
4. Promotion-informing customers about the products, services, images, ideas, advertising, publicity, public relations
5. Product/Service management-designing, developing, maintaining, improving products or services to meet the needs of customers
6. Distribution-means of getting a company’s products and services to the customer in the best way
7. Selling-communicating directly with the customers to determine and then satisfy their needs
Yield Management• Yield management
is the practice of varying the price of a room based on current demand. An example would be high rates in the summer for a motel room on the beach and low rates during the winter time for the same room. (15)
PRIME OBJECTIVE
The prime objective of hospitality marketing is attracting and pleasing
the customer. (1)
Lesson 1.2 Hotel Marketing: A competitive Industry
Know Your Customer
• A lodging establishment must know their customers. (8)
• Most hotels and motels conduct marketing research. (9)
• Many use a survey or quality-quiz, usually at check-out time. (10)
Demographics
The characteristics of a target market such as age, income, gender, and level of education. (11)
SERVICE MARKETING
1. Hospitality industry involves Service Marketing because they sell to the ultimate consumer. (12)
2. Service Marketing usually only gets one chance to make a good impression. (14)
3. Hotel managers know that there is usually a nearby hotel about the same price and about the same service that is willing to try a little harder to earn the customers dollar.
INTANGIBLE PRODUCTS
• The hospitality industry sells intangible products: comfortable feeling, warm, safe, clean, individual attention by the staff. (12)
Amenities
• Amenities are those services or items offered to guests for convenience and comfort. (16)
• Amenities can be bed size, TV, air conditioning, phone service, movies-on-demand, desks, two-line phones, computer service, laundry, room service, etc. (17)
Jobs and Money!
• Travel and tourism is good for the economy. (5)
• You are a part of travel and tourism every time you eat at a restaurant. (4)
• Travel and tourism provides over 18 million jobs for Americans (3)
• Travel and tourism is the third largest retail industry in the US (1)
Lodging Facilities
1. Lodging facilities operate 24 hr a day, seven days a week. (9)
2. Hotel employees are responsible for providing a comfortable and enjoyable stay for their customers. (8)
Some management positions for hotels – General manager-responsible for all
operations (10)– Front Office manager-reservations,
room assignments, (10)– Executive housekeeper-supervises
all. Housekeeping staff, ensures all rooms are clean and comfortable(10)
– Food and Beverage manager-oversees all meals, drinks, banquets, meetings(10)
Some management positions for hotels
– Sales Director-supervise the sales staff, corporate accounts, special events, conventions(10)
– Human Resources Manager-recruiting, hiring, training, and employee benefits(10)
– Operations manager-keeps thing running, security, heat and air, electrical, grounds, safety(10)
– Financial manager-hotel receipts, expenditures, daily audits (10)
HOUSE DIVIDED
• A typical hotel or restaurant has 2 divisions:– Front of the House which involves any area
which the general public or guest has access.
Guest rooms, meeting rooms, gift shop, pool– Back of the House which involves any area
which is usually not seen or frequented by the guests
Human resources, accounting, housekeeping
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