Hospitality PromotionHospitality Promotion

Unit Essential QuestionUnit Essential Question

What are the various What are the various promotional strategies promotional strategies used in travel and used in travel and tourism?tourism?

Essential Question 1Essential Question 1

What are the four types of What are the four types of promotion and how do they promotion and how do they relate to the promotional mix?relate to the promotional mix?

What is promotion?What is promotion?

Any form of communication used by a business to inform, persuade, or remind people about its products and improve its image.

There are two forms of promotion:– Product

– Institutional

Types of PromotionTypes of Promotion

AdvertisingPublicitySales PromotionPersonal Selling

Sales PromotionSales Promotion

Usually involves short term activities.Offers some type of incentive to make

a purchase.Can be successfully used in all

channels of distribution.

Personal SellingPersonal SellingOral presentations to one or more

potential buyers with the intent of making a sale.

The responsibility of sales personnel.The most flexible and individualized

type of promotion available.

Strategies for SuccessStrategies for SuccessPartnerships

– Transportation – Airlines, car rental agencies, cruise lines, etc.

– Credit cards – MasterCard, Visa, Dinners Club, American Express, etc.

Intermediaries– Travel agents– Tour operators

Promotional MixPromotional MixPromotional Mix: The combination

of advertising, publicity, sales promotions and personal selling strategies.

Essential Question 2Essential Question 2

What is personal selling and What is personal selling and how is it accomplished?how is it accomplished?

What is Selling?What is Selling?

Helping Customers make satisfying buying decisions - The kind they will be happy with after the sale.

Goals of SellingGoals of Selling

To ensure customer satisfaction so the firm can count on repeat business.

To help customers decide on purchases.

Feature - Benefit SellingFeature - Benefit Selling

The concept that a salesperson needs to match the features of each product to a customer’s needs and wants.– Product Features: A physical characteristic or

quality of a good or service that explains what it is.• Tangible Product Feature: Physical characteristics of a

product.

• Extended Product Features: Although not always physically part of the product, important in the purchase decision.

Feature - Benefit SellingFeature - Benefit Selling

The concept that a salesperson needs to match the features of each product to a customer’s needs and wants.– Customer Benefits: Advantages or personal satisfaction

a customer will get from a good or service.• How does the feature help the product’s performance?

• How does the performance information give the customer a personal reason to buy the product?

Essential Question 3Essential Question 3

What takes place during each What takes place during each phase of the sales process?phase of the sales process?

Steps of A SaleSteps of A Sale

1. Pre-approach: Looking for customers and getting ready for the sale.

2. Approaching the customer: Actually greeting the customer face-to-face.

3. Determining needs: Learning what a customer is looking for.

Steps of A SaleSteps of A Sale

4. Presenting the product: Educating the customer about the product’s features and benefits.

5. Handling questions and objections:– Learning why the customer is reluctant to buy.

– Providing information to remove that uncertainty.

– Helping the customer make a satisfying buying decision.

Steps of A SaleSteps of A Sale

6. Closing the sale: Getting the customer’s positive agreement to buy.

7. Suggestion selling: Suggesting that the customer buy additional merchandise or services.

8. Reassuring and following up: Helping a customer feel that he or she has made a wise purchase.

Essential Question 4Essential Question 4

What is advertising and What is advertising and publicity and how do they publicity and how do they compare and contrast?compare and contrast?

AdvertisingAdvertising

Paid presentation of ideas, goods, or services directed toward a mass audience.

Types of AdvertisingTypes of AdvertisingProduct:

– Creates an interest in the product.

– Introduces new products and businesses.

– Explains a product.

– Supports personal selling efforts.

– Creates new markets.

Institutional:– Creates a favorable impression and goodwill for a

business or an organization.

– Presents information about the companies role in the community.

Advertising Advertising (Print Media)(Print Media)

Newspaper

Finance News

Magazines

TIMES

Advertising Advertising (Print Media)(Print Media)

Direct Mail

Outdoor Advertising

Advertising Advertising (Print Media)(Print Media)

Directories

Transit Advertising

Advertising Advertising (Print Media)(Print Media)

Other print media.

Advertising Advertising (Broadcast Media)(Broadcast Media)

Television

Advertising Advertising (Broadcast Media)(Broadcast Media)

Radio

Internet

PublicityPublicity

Builds a business’ image.Publicity is free.Not much control over the message

being sent to the public.

Types of PublicityTypes of PublicityNews ReleasesFeature ArticlesPhotosPress ConferencePublic Relations

Essential Question 5Essential Question 5

What are the various types of What are the various types of sales promotions used in sales promotions used in hospitality marketing?hospitality marketing?

Sales PromotionSales Promotion

Usually involves short term activities.Offers some type of incentive to make

a purchase.Can be successfully used in all

channels of distribution.

Types of Sales PromotionTypes of Sales Promotion

Licensing : Partnering with another business, organization or celebrity to license, for a fee, their logo, trademark, name and likeness, personal endorsement, etc. to be used in promoting the hotel or restaurant.– Example: A celebrity endorses a particular

restaurant or hotel.

Types of Sales PromotionTypes of Sales Promotion

Promotional Tie-Ins: Promotional arrangements between two or more companies who combine their resources to do a promotion that will result in increased sales for each partner.– Example: Carnival Cruise Lines offers a discount

if you fly Delta Air Lines.

Visual Merchandising: Floor, window, and counter displays as well as the business layout and general ambience.

Types of Sales PromotionTypes of Sales Promotion Premiums & Incentives:

– Coupons: Offers a discount on a product or service.

– Contests or games: May involve writing a short story or essay about a product or organization where the winner gets an all expense paid trip.

– Sweepstakes: A good example would be McDonalds’ Monopoly game.

– Rebates: A portion of the purchase price is returned to the customer.

– Specialty Items: Low-cost items such as pens, key chains, and calendars.