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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Chapter 15Hospitality Marketing

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

After Reading and Studying This

Chapter, You Should Be Able to: Define marketing

Describe the steps in the marketing system

Describe the importance of marketing to the hospitalityindustry

Name the four aspects of the SWOT analysis and how theycan be used for strategic planning

Explain the marketing segmentation process Name and describe the marketing mix (five Ps)

Explain how sales are conducted in the hospitality business

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Official Definition of

Marketing A social and management process by

which individuals and groups obtain

what they need and want throughcreating and exchanging value withothers.

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Hospitality Marketing

Includes: Finding out what guest wants and

needs are

Providing the guest with solutions

Creating guests and keeping themcoming back

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Hospitality is Unique Products are:

Perishable

Intangible

Interrelated

Guests can become brand loyal

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Marketing is About Place (location) Distribution (making the product readily

available) Pricing (the cost and profit margins) Product image (how the product is

perceived) Promotion (communication to the market) Relationship marketing

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Strategic Planning Market Demand

Economic

Social

Political

Technological

Competitor Analysis

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

SWOT Strengths

Weaknesses

Opportunities

Threats

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Figure 15-2

SWOT Analysis

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Marketing Segmentation

Process Divide into segments

Profile segments Analyze segments

Formulate strategyfor each segment

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Figure 15-3

Market Segmentation Process

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Target Markets Demographics

Age Gender Income Social class Occupation Family structure Geography Ethnicity

Usage Lifestyle

Family life cycle

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Figure 15-4

Illustration of a Target Market

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Positioning Statement Better than the competition

Different than the competition

Opposite of the competition

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Brand Marketing Brand defined Brand identity

Easy to remember Associated with value Positive connotation Easily recognized Looks good in color and in black and white

Catch the customers eye Usable, pleasant and non-offensive Easy to pronounce and spell

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Marketing Mix Five Ps

Product

Price Place/distribution

Promotion

People

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Pricing Strategies Demand-based

Value

Negotiated Quantity discount

Cash discount

Seasonal discount

Pricing by priority

Price bundling

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Forms of Marketing

Sales promotion

Advertising Direct selling

Public relations

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Figure 15-5

Effect Promotion Has on the Buying Process

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

E-Marketing Databases Websites

Email www.expedia.com www.hotwire.com www.travelocity.com www.hotels.com www.gotrooms.com

http://www.expedia.com/http://www.hotwire.com/http://www.travelocity.com/http://www.hotels.com/http://www.gotrooms.com/http://www.gotrooms.com/http://www.hotels.com/http://www.travelocity.com/http://www.hotwire.com/http://www.expedia.com/

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Sales Market share

RevPar

Segmentation Association

SMERF

Sales quotas

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Trends Strong growth potential for industry with

economic growth

Increase in creative marketing Globalization

Increased importance of retaining guests

Bounce-back effect from 9/11 Continued increase in Internet sales