WEDNESDAY 1 APRIL

MARKET RESEARCH

MARKET MIX

MARKET RESEARCH

• CONDUCTED BY BUSINESS TO SEEK INFORMATION ON CONSUMER BEHAVIOUR

• WHY DO WE NEED THIS?

1. ANALYSE TRENDS IN MARKET PLACE

2. LIFESTYLE PREFERENCES & CHANGES

3. CUSTOMER PREFERENCES

4. IDENTIFY OPPORTUNITES IN THE MARKET

5. EVALUATE MARKETING PERFORMANCE

MARKET RESEARCH• WHO DOES IT?

1. BY BUSINESSES THEMSELVES – THOSE THAT HAVE SUBSTANTIAL MARKETING BUDGETS2. BY PROFESSIONAL MARKET RESEARCH COMPANIES eg – ROY MORGAN, GALAXY, NEWSPOLL, AC NIELSEN etc

• HOW IS IT DONE?1. TELEPHONE INTERVIEWS2. ON LINE RESEARCH & SURVEY REQUEST3. DOOR TO DOOR4. SHOPPING MALLS5. WHILST SHOPPING/STAYING IN HOTEL

MARKET RESEARCH• MARKETING INFORMATION SYSTEM – MIS IN HOTELS

RESEARCH INCLUDE-

1. SALES ANALYSIS – DOGS, STARS, QUESTION MARKS, CASH COWS – WHY AND HOW IT HAPPENED

2. MYSTERY SHOPPER – MARRIOTT BRAND STANDARDS & MYSTERY DINER/SHOPPER – EATABILITY.COM, TRIP ADVISOR

3. FREE LOCAL COUNCIL SERVICES – SURVEYS THAT IS DONE BY LOCAL COUNCILS TO INCLUDE BUSINESS TRENDS AND PSYCHOGRAPHIC INFORMATION.4. INTERNAL GUEST FEEDBACK QUESTIONAIRE5. TRADE MAGAZINES

MARKET RESEARCH

6. SITE INSPECTIONS OF YOUR COMPETITOR HOTELS7. TRADE SHOWS AND INDUSTRY SEMINARS – SYDNEY ON SALE, AIME, WORLDS LARGEST BUFFET, ETC8. UPDATING INDUSTRY KNOWLEDGE – WEBSITES, TWITTERS, BLOGS, 9. MARKET INTELLIGENCE – GIVEN BY YOU AND I, SUPPLIERS,CUSTOMERS IN HOTELS Information on the market the hotel services that helps managers to make informed decisions

SOME COMMON QUESTIONS: - IS MY MARKET SEGMENTATION CORRECT?WHAT TRENDS ARE HAPPENING THAT WILL INFLUENCE AND CHANGE MY MARKET SHAREIF I RAISED PRICE BY 10% AND ADVERTISING BY 20% WHAT IS IMPACT ON SALES?

MARKET RESEARCH

COCA COLA – CASE STUDY ON MARKET RESEARCH

15 MINUTES – IN GROUPS

MARKET MIX

THE FOUR P’S OF MARKETING IN A HOTEL:

4 Ps Vs 4 CsPRODUCT – Hotel – C- Customer Needs & Wants

PRICE – Cost of Service being provided – C – Cost to customer

PLACE– Where to communicate your hotel’s benefits to potential guests– C – Convenience to the customer and customer service overall

PROMOTION- Activities aimed to communicate the merit of the product – C – Communication

SEE HAND OUT

PRODUCT

• Product – The way we present our hotel and it’s facilities to the guest – making the facilities benefecial and desirable to the target market – eg Internet, Kids Corner, Club Lounge etc – Market driven

• Hotel Room as a product – Core product is a comfortable room to stay the night – Actual product – service quality level, features, lighting, brand name etc- Augmented product – Additional customer benefits such as loyalty membership, VIP upgrade – it aims to exceed customer expectations

Core Product - Room

Actual Product – Comfort, Lighting, style etc

Augmented Product – Benefits such as upgrade, breakfast included,loyalty cards etc

PROMOTION• How the market that you are servicing (– Eg. Corporates, Groups)

are being informed of your hotel and specials that you are offering–public relation activities(charities, social networking etc ) or promotional activities such as advertising, shop a docket, displays, editorials, word of mouth, or internet feedback sites namely Trip Advisor, Eatability.com.au, Best Restaurants.com.au etc

Promotional activities are dependent on budget, marketing strategies and reach of promotional activities

• Current effective promotional methods are:- Twitter – online voice- Linkedin – XING – professional on line networking business people- Blogger – Wordpress- Digital PR – Press box is a free PR distribution site- Web 2.0- Social sharing on your website with links

PROMOTION

• TWITTER - Twitter is a free social networking and blogging service that allows its users to send and read other users' updates.

• LINKED IN - LinkedIn is a business-oriented social networking site

• BLOG - A personal or corporate website in the form of an online journal, with new entries appearing in sequence as they are written.

• DIGITAL PR - Digital PR is also a new style of pr not just an agency – IT IS INTERNET PUBLIC RELATIONS FOR FREE”

PRICE• Defined as the money charged for use of a product or

service- pricing is determined by positioning

It is about differentiating the product in the mind of the customer Identify possible competitive advantage to build the position E.g. value add for existing prices

A motel may charge less per room and is matched by the service it provides compared to a 5* hotel

The range of products and services offered and market position will influence the price charged – also dependent on competition, consumer buying power, strength of dollar and economy – it is hence critical to know your hotel’s market

PLACE

• Locations where your hotel is promoted – where we communicate to reach the right target segments for the hotel – Could be direct marketing, sales promotions, personal selling, public relations and advertising

• Eg. A three * hotel due to limited budget may develop and promote their website as their means to promote their hotel to the market or could promote the hotel at strategic locations such as airport, transport hubs etc.

MEASURING MARKET SUCCESS

• HOW IS MARKETING SUCCESS MEASURED?

1. GUEST FEEDBACK

2. INCREASED MARKET SHARE (REVPAR) – WHAT IS THIS? –see hand out

3. INCREASED REVENUE

4. MEASUREMENT OF INCREASE IN ACTIVITIES AS A DIRECT RESULT OF MARKETING Eg – Weekend Packages

• • VOILÀ is a frequent guest loyalty programme created specifically for independent hotel groups by

Hospitality Marketing Concepts, a proven leader in the hospitality industry for nearly 20 years.• VOILÀ can be customized to the unique needs of any hotel or group.•  • Only one factor levels the playing field with the mega-brands: LOYALTY

• Every hotel is competing for guests and their bookings right now. Boutique hotels and independent chains contending with mega-hotel brands and third-party booking sites are especially feeling the impact. But there’s a cost-efficient, often overlooked way for hoteliers to reach a broader range of travellers and encourage repeat stays: LOYALTY PROGRAMMES.

• WHY LOYALTY PAYS• VOILÀ Hotel Rewards is a loyalty programme specifically designed for independent four- and five-star hotels and

hotel groups. Hotels maintain their unique identity while enjoying the increased exposure provided by being part of a worldwide network of like-minded, luxury properties. VOILÀ essentially levels the playing field with some of your biggest competitors – the mega-brands. Valued guests are introduced to your hotels and encouraged to book future stays directly at hotels participating in the programme. Allowing guests to select the hotels they prefer, while earning and being rewarded for their loyalty, has repeatedly proved effective.

• A 2009 study of independent hotels by Boutique Hotel Advisors found that one out of every three guests said their loyalty programme played an important factor in where they stayed. In fact, loyalty programmes ranked second only to name recognition in being the deciding factor in whether a hotel guest booked a stay.

• And yet another study published in a recent issue of Cornell Hospitality Quarterly found a "…significant and positive relationship between non-payroll marketing expenditures, such as loyalty programs, and Net Operating Income (NOI). Loyalty, rather than satisfaction, has become the key strategic goal for many service organizations, including hospitality.“

• MINIMAL COST. IMMEASURABLE GAINS.• VOILÀ is a turnkey solution that provides hotels everything they need to develop their own successful loyalty

programme. We deliver an agile, robust CRM system that interfaces directly with a hotel’s CRS. We increase geographic reach through on-demand and complimentary marketing opportunities allowing hotels to deliver targeted messages to a wide array of other VOILÀ hotel members around the world. We keep things simple with a pay-as-you-go revenue system. We support hotels through every step of the process -- from implementation to member support, from maintaining leading edge technology to optimizing the success of your frequent guest program.