Hospitality Marketing, Sales and Advertizing Day 5 6 - hoteliers.pdfLewin’s Force-field analysis,...

S&M 6 Prof. Dr. P. Zamaros 2014 1

Hospitality Marketing, Sales and Advertizing

Day 5

2 S&M 6 Prof. Dr. P. Zamaros 2014

DAY 6

Part 3: The Hoteliers

13. Hotelier behavior base

Purpose: establish the base commanding the behavior of hospitality

outlets

14. Learning about hoteliers

Purpose: develop tools to research hotelier behavioral base (aka

marketing mix)

Activity: learning about hotelier behavior

The behavioral base is the base commanding the behavior of

hospitality outlets.

The behavioral base of the hotelier is the end result of internal

decision-making processes and actions of hoteliers in a

interdependent relationship with a binding external context wherein

exist acting stakeholders notably the guest.



A) Principle

Specifically

• Interdependent or internal decision-making processes and actions

(labor division, production, resource choice, leadership and

management styles) bring about a set of decisions that collectively

constitute a relational marketing mix (after McCarthy albeit in a

form that considers the relational situation of the hotelier) that

aims at creating and presenting products and services to the guest

(but not bringing such products and services to the guest since the

guest is brought to them given that the hotel is bound to a locale) .



A) Principle

• Contextual or external decision-making processes and actions that

comprise guest, B2B (supplier and technological), indirect

(competitor, political, legal, cultural) and which affect relationally

the hotelier, constitute collectively a relational force field (after

Lewin’s Force-field analysis, Porter’s Five Forces and PEST

framework) which is to be found in a single locale (destination and

market structure) that the hotelier is bound to (unlike other

industries which are less bound to a place yet belong to a market

structure)



A) Principle

6

Relational force field

Hotelier behavior

Guest perceptional

base

Hotelier

Behavioral base

Guest behavior

Relational

marketing mix


A) Principle

S&M 6 Prof. Dr. P. Zamaros 2014

Relational

domain

Organizational

behavioral bases Indirect

behaviors

B2B behaviors

7


B) Behavioral base

The most important

decisions within the

marketing program

are taken together

to form the 4 Ps of

the marketing mix

(after McCarthy).


8


B) Behavioral base

An extension is the

7 Ps of the

marketing mix


An other way are

the 4 Cs after

Lauterborn



B) Behavioral base

http://images.google.ch/imgres?imgurl=http://3.bp.blogspot.com/_hsghAhbnV8E/Sa6OtSDxb2I/AAAAAAAAABo/hq8LbGsNQRk/s400/Marketing_Mix_Diagram_-_7Ps_L.jpg&imgrefurl=http://genzmarketing.blogspot.com/2009/03/7ps-of-marketing-mix.html&usg=___cHuNCvrmYm7CekXDMRaMQbf3zo=&h=399&w=400&sz=25&hl=fr&start=17&zoom=1&itbs=1&tbnid=iyrzkL0XhttCdM:&tbnh=124&tbnw=124&prev=/images?q=marketing+mix&hl=fr&rlz=1T4SKPB_enCH391&tbs=isch:1


Or the 7C’s

Schimizu compass

model



B) Behavioral base



The relational

marketing mix

for hoteliers



B) Behavioral base

products & services

product & service provision

distribution channels

direct or indirect offer making

points of sale

the hospitality outlet itself

prices

product & service valuation

promotional mix

analog and digital product & services

awareness




behavioral element determining factor

products & services guest recommendation or need

distribution channels guest need to use quick booking tools

points of sale welcomeness and positive interaction

product prices guest value perception

promotional mix guest sense of homeness


B) Behavioral base

Guest behavior affecting the hotelier’s behavioral base


behavioral element determining factor

products & services scope and choice

distribution channels reliablility and ease of use

points of sale organisational efficiency and discreteness

product prices correct and quality-based

promotional mix guest inclusion, uniqueness, differentiation


B) Behavioral base

Hotelier behavior affecting the guest’s perceptual base

Microeconomic theory makes the typical distinction between perfect

competition (thought of as ideal firms) and imperfect competition

(thought as less than ideal on welfare grounds)

However, given the unfeasibility of perfect competition and inherent

confusion between competition and concurrence, the following

distinction is suggested on non-welfarist grounds :

• Passively competitive hoteliers/markets

• Dynamically competitive hoteliers/markets

• Non competitive hoteliers/markets

14


C) Context - market structure


Features of Passive competitors

• Number of hoteliers present in the market = a lot

• Number of guests present in the market = a lot

• Business/operations share relative to the market = small – firms

supply a small number of hospitality products and services relative to

the overall needs of the market

• Ability to impose a price on guests = none, the hotelier is a price-

taker

15




• Barriers to enter the market = some, as it is costly to set up a SME

even if this is kebab outlet

• Product knowledge by guests = imperfect, the choice being too wide

and guests having their habits

• Degree of product differentiation = none – products and services are

very similar (a pizza is a pizza)

• Degree of product substitution = quasi perfect since hospitality

products are similar

16




• Degree of state intervention = none affecting directly to the hotelier

but since the salaries are low because of the quasi perfect situation,

there is min wage legislation pushing up costs and considering the

lack of product differentiation, hoteliers are induced to behave non-

competitively

• Competitive elements = accidental location, word-of-mouth

reputation, demographic growth, decor, in-house service and ratings

17




• Examples = agricultural industry (not food industry), hospitality

industry (not fast food) according to star classification

18




Features of Dynamic competitors

• Number of hoteliers present in the market = quite a few with the

number decreasing as the number of stars increase

• Number of guests present in the market = quite a few

• Business/operations share relative to the market = small to

important depending on the number of stars but small compared to

passive competitors

• Ability to impose a price on guests = yes; the firm is a price maker

19




• Barriers to enter the market = the need for important capital

investments to set up large ventures and to select the location

makes that a few such hospitality outlets are being built

• Product knowledge by guests = imperfect because the choosing one

brand makes that the others can be unknown

• Degree of product differentiation = very important – there is plenty

research for new products or the provision of exclusive services

• Degree of product substitution = limited because the geographic

location of the hotelier is key to differentiation

20




• Degree of state intervention = little – only to streamline investments

• Competitive elements: decided locations, new/improved products,

marketing efforts (30% annual turnover), share valuation

• Examples: luxury and boutique hotels, top rated restaurants, unique

hotels

21




22




8th

wonder

of the

world

http://topfoodfacts.com/worlds-most-beautiful-restaurant-views/

23




Mardan

palace

24




Palazzo

by

Venitian:

largest

single

building

hotel –

4’000

rooms

Features of Non-competitors

• Number of firms present in the market = lot of passive competitors

clustered in associative oligopolies & cartels, or a few given the

exclusive location and sometimes just one as a monopoly

• Number of guests present in the market = a lot to quite a few

depending on the type (passive, dynamic, or monopoly)

• Business/operations share relative to the market = important

• Ability to impose a price on consumers = yes as the passive hotelier

becomes a price maker through collusion – e.g. price of set meals

25




• Barriers to enter the market = large capital investments

• Product knowledge by guests = imperfect so long the choices are

branded or linked to particular (jet set) destinations but given the

high social status, the is ample knowledge of luxuries

• Degree of product differentiation = limited; the franchise system

renders it impossible

• Degree of product substitution = perfect since the products are very

similar unless the hotelier is in a monopoly position

26




• Degree of state intervention = quasi none (unlike cartels which risk

being fined for their non-competitive behavior)

• Competitive element: quasi absent as there is no need for

competition since just a few hoteliers (organised in chains,

franchises, associations) dominate the market

• Examples: fast food, various hotel and restaurant associations,

unique hotel locations

27




The fast food

industry: a very

viable business

28




29




Amangiri:

perfectly

secluded

30




http://www.homedsgn.com/2011/05/18/amangiri-luxury-resort-hotel-in-canyon-point-utah/

Saffire

Freycinet:

perfectly

secluded

31




Behavioral analysis

32

mindset passive dynamic non-competitor

set barriers to

entry none via marketing

via capital

investments

developing

competitive

elements

in-house,

accidental

marketing,

products,

strategic

none – already

present, extreme

differentiation


C) Typical behaviors


Strategies in response to globalization trends:

• Defenders: are mainly oriented to the domestic markets and its

needs. Example: small regional hotels and restaurants

• Explorers: seek business opportunities in foreign markets.

Example: high-end hotels and restaurants

• Controllers: seek to dominate in foreign and overseas markets.

Example: food industry (Coke, MacDonald's)

• Integrators: seek to create a world wise web of relationships.

Example: international chains, franchises



D) Typical behaviors

Behavioral analysis

34

mindset defender explorer controller integrator

Level of

global

penetration

None Select

markets

Multi-market

presence

Wide market

presence

Ethnic

cultures and

local markets

Acknowledged Explored Controlled Unified


D) Typical behaviors


35

14. Learning about the hotelier

A) Relational marketing mix self-search tools


products & supply

What do we sell


To whom do we sell

points of sale

Where do we sell

prices

At what price should we sell

promotional mix

How do we sell

36


A) Relational marketing mix research tools


products & supply

What do they sell: identify the comprehensive and segmented array of products &

services


To whom do they sell: identify the analog and digital means for making direct or

indirect offers to segments of guests

points of sale

Where do they sell: identify the idiosyncrasies of the hospitality outlet itself

prices

At what price should they sell: identify how product & service prices stand in the

market and what guests get for such prices

promotional mix

How do they sell: identify analog and digital product & services awareness means

and communication means

37


B) Market structure research tools


Market structure identification

• Number of hoteliers

• Market share

• Number of guests

• Knowledge of guests about the outlet

• Product type and degree of subsititiution

• Degree of market and product differentiation

• Competitive elements

38


B) Globalisation strategy research tools


Globalisation-trends response

• Level of global penetration = chain or franchise scope

• Attitide towards cultures and communities

39


Activities


With the aim of learning about hoteliers carry out the following:

• Select a hospitality outlet

• Use the suggested framework to identify the behavioral base (p36)

• Identify behavior (slide day 1 p18)

• Use the suggested framework to identify market structures (p37)

• Identify behavior (p32)

• Use the suggested framework to Identify globalisation strategy (p33)

• Identify behavior (p34)

Hospitality Marketing, Sales and Advertizing Day 5 6 - hoteliers.pdfLewin’s Force-field analysis,...

Documents

Transcript of Hospitality Marketing, Sales and Advertizing Day 5 6 - hoteliers.pdfLewin’s Force-field analysis,...