Marketing for Hospitality and Tourism

Автор: Пользователь скрыл имя, 30 Апреля 2012 в 07:22, реферат

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What is hospitality and tourism marketing? In the hotel industry, marketing and sales are often thought to be the same and no wonder: the sales department is one of the most visible in the hotel. Sales managers provide clients with tours and entertain them in the hotel’s food and beverage outlets. Thus the sales function is highly visible.

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     Managers can conduct informal surveys using small convenience samples. The manager of travel agency can learn what customers like and dislike about travel agencies by conducting informal focus groups, such as inviting small groups to lunch. Thus, secondary data collection, observation, surveys and experiments can be used effectively by small organizations with small budgets. 

  1. Understanding and segmenting customers, consumer markets and consumer buyer behavior
 

     Market segmentation: Markets consists of buyers who differ in one or more ways. They may differ in their wants, resources, locations, buying attitudes and buying practices.

     There is no single way to segment a market. In segmenting consumer market used the geographic, demographic, psychographic and behavioristic variables.

     Geographic segmentation: geographic segmentation calls for dividing the market into different geographic units such as nations, states, regions, counties, cities or neighborhood.

     Demographic segmentation: Demographic segmentation consists of dividing the marketing into groups on demographic variables such as age, life cycle, gender, income, occupation, education, religion, race and nationality. Demographic variables are the most common bases for segmenting customer groups. One reason is that consumer preferences and use rates often closely with demographic variables. Another is that demographic variables are easy to measure.

     Age and life-cycle stage: Consumer preferences change with age. Some companies offer different products to penetrate various age and life-cycle segments.

     For example, McDonald’s offers Happy Meals that include toys aimed at young children. McDonald’s know that 79 percent of the family decisions to eat out are influenced by children.

     Gender: Gender segmentation has long been used in marketing clothing, hair, cosmetics and magazines. It is now used in the hospitality industry. In 1970 women accounted for less than 1 percent of all business travelers.

     Today women represent a very important market segment. Hotel corporations now take women into consideration of designing their hotel rooms. Design changes include lobby bars, fitness facilities, hair dryers and others.

     Psychographic segmentation:  Psychographic segmentation divides buyers into different groups based on social class, lifestyle and personality characteristic.

     Almost every society has some form of social class structure. Social classes are permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

     People coming from the same subculture, social class and occupation may have quite different lifestyles. A lifestyle is a person’s pattern of living as expressed in his or her activities, interests and opinions.

     Each person’s personality influences his or her buying behavior. Personality can be useful in analyzing consumer behavior for some product. For example, a beer company may discover that heavy beer drinkers are sociability and aggressiveness. This information can be used to establish a brand image for the beer and to suggest the type of people to show in an advertisement.

     Behavioral segmentation: In behavioral segmentation buyers are divided into groups based on their knowledge, attitude and use or response to a product. Occasion segmentation

     Market targeting: When evaluating different market segments, a firm must look at three factors: segment size or growth, segment structural attractiveness, and company objectives and resources.  

     Segment size and growth: A company must first collect and analyze data on current segment sales growth rates and expected profitability for various segments. It will be interested in segments that have the right size and growth characteristics. Some companies want to target segments with large current sales, a high growth rate and a high profit margin.

     However, the largest fastest growing segments are not always the most attractive for every company.

     Segment structural attractiveness: A segment might have desirable size and growth and still not offer attractive profits. The company must examine several major structural factors that affect long-run segment attractiveness.

     For example, a segment is less attractive if it already contains many strong and aggressive competitors. The existence of many actual or potential substitute products may limit prices and profits. 

  1. The buyer decision process
 

     Personal characteristics affecting consumer behavior: Consumer purchases are strongly influenced by cultural, social, personal and psychological characteristics.

     Cultural factors: Cultural factors exert the broadest and deepest influence on consumer behavior. We examine the role played by the buyer’s culture, subculture and social class.

     Culture is the most basic determinant of a person’s wants and behavior. It comprises the basic values, perceptions, wants and behaviors that person learns continuously in a society.

     Each culture contains smaller subcultures, or groups of people with shared value systems. Subcultures include nationalities, religions, racial groups and geographic regions. Many subcultures make up important market segments, and marketers often design products to their needs. Example, of three such important subculture groups include Hispanic, African American and Asian consumers.

     Almost every society has some form of social class structure. Social classes are permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

     Social factors: Consumer behavior is also influenced by social factors, including the consumers’ groups, family, social roles and status.

     Groups that have a direct influence and to which a person belongs are called membership groups. They include primary groups, such as family, friends, neighbors, specifically, those with whom there is regular but informal interaction. Secondary groups are more formal and have less regular interaction; they include religious groups, professional associations and trade unions. In some societies, secondary groups may be membership groups.

     Reference groups serve as direct or indirect points of comparison or reference in the forming of a person’s attitudes and behavior. People can also be influenced by aspirational groups to which they do not belong but would like to.

     A person belongs to many groups: family, clubs and organizations. An individual’s position in each group can be defined in terms of role and status. A role consist of the activities that a person is expected to perform according to the persons around him or her. Common roles include son or daughter, wife or husband and managers or workers.

     Each role carries a status reflecting the general esteem given to it by society. People often choose products that show their status in society.

     Personal factors: A buyers decisions are also influenced by personal characteristics such as age and life-cycle stage, occupation, economic situation, lifestyle, personality and self-concept.

     The types of goods and services people buy change during their lifetimes. Preferences for a leisure activities, travel destinations, food and entertainment are often age related.

     Buying behavior is also shaped by the family life-cycle stages. Young unmarried persons usually have few financial burdens, and they spend a good portion of their discretionary income on entertainment. Young married people without children have high discretionary incomes and dine out frequently. In fact, they have a higher frequency of dining out than any other group.

     A person’s occupation affects the goods and services bought. For example, business executives purchase meals from a full-service restaurant, whereas clerical employees may bring their lunch or purchase lunch from a nearby quick-service restaurant. Employees of some consulting firms are not allowed to eat in fast-food restaurants.

     A person’s economic situation greatly affects product choice and the decision to purchase a particular product. Consumers cut back on restaurant meals, entertainment and vacations during recessions. They trade down in their choice of restaurants or menu items and eat out less frequently.

     People coming from the same subculture, social class and occupation may have quite different lifestyles. A lifestyle is a person’s pattern of living as expressed in his or her activities, interests and opinions.

     Each person’s personality influences his or her buying behavior. Personality can be useful in analyzing consumer behavior for some product. For example, a beer company may discover that heavy beer drinkers are sociability and aggressiveness. This information can be used to establish a brand image for the beer and to suggest the type of people to show in an advertisement.

     Psychological factors: A person’s buying choices are also influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes.

     Motivation: A person has many needs at any given time. Some are biological, arising from hunger, thirst and discomfort. Others are psychological, such as the need for recognition, esteem or belonging. Most of the needs are not strong enough to motivate a person to act at a given point in time. A need become a motive when it is aroused to a sufficient level of intensity.

     Perception: A motivated person is ready to act. How that person acts is influenced by his or her perception of the situation. In the same situation, two people with the same motivation may act quite differently based on how they perceive conditions. Why do people have different perceptions of the same situation? All of us experience a stimulus by the flow of information through our five senses: sight, hearing, smell, touch and taste. However, each of us receives, organizes and interprets this sensory information in an individual way. Perception is the process by which an individual selects, organizes and interprets information to create a meaningful picture of the world.

     Beliefs and attitudes: A belief is a descriptive thought that a person holds about something. A customer may believe that Adam’s Mark Hotels have the best facilities than any other hotel. People have attitudes about almost everything: religion, politics, clothes, music and food. Attitude put people into a frame of mind for liking or disliking things and moving toward or away from them.

     The buyer decision process: consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision and post purchase behavior.

     Need recognition: At this stage, marketers must determine the factors and situations that trigger consumer problem recognition. They should research consumers to find out what kinds of needs or problems led them to purchase an item, what brought these needs about, and how they led consumers to choose this particular product.

     Information search: An aroused consumer may or may not search for more information. If the consumer’s drive is strong and satisfying product is near at hand, the consumer is likely to buy it at the moment. If not, the consumer may simply store the need in memory and search for relevant information.

     Evaluation of alternatives: There is no simple and single evaluation process used by all consumers or even by one consumer in all buying situations. Some basic concepts help explain consumer evaluation process. First, we assume that each consumer sees a product as a bundle of product attributes. The most attention is paid to attributes connected with their needs. Second, the consumer attaches different degrees of importance to each attribute. Third, the consumer develops a set of beliefs about where each brand stands on each attribute. Fourth, the consumer is assumed to have a utility function for each attribute.

     Purchase decision: The consumer forms a purchase intention based on factors such as expected family income, expected price, and expected benefits from the product. When the consumer is about to act, unexpected situations may arise to change the purchase intention.

     Post purchase behavior: Following a purchase, the consumer will be satisfied or dissatisfied. If the product matches expectations, the consumer will be satisfied. If it falls short, the consumer will experience dissatisfaction. 

  1. Market environment, Market segmentation, targeting and positioning
 

     The marketing environment is made up of a microenvironment and macro environment. Microenvironment consists of factors close to the company that affect its customer, company, and marketing channels. The macroenvironment consists of larger societal forces that affect whole microenvironment (demographic, economic, natural, technological and political).   The company’s microenvironment:

     The company: Marketing managers must work closely with the top management and various company departments. The finance department is concerned with funding to carry out marketing plan. Account department measures revenues and costs to help marketers to achieve goals. All managers should think consumers and provide superior customer value and satisfaction.  Existing competitors: Every company faces a broad range of existing competitors. The marketing concept holds a successful company must satisfy the needs and wants of consumers better than its competitors. A large restaurants chain can use its buying power to purchase national advertising, spreading the cost while small individually owned restaurants are able to adjust quickly to local trends and offer menu of local character.          In general a company should monitor the following while analyzing competitors:

  • Share of market
  • Share of mind
  • Share of heart. Name the company from whom you would prefer to buy the product.

     Managers often fail to identify its competitors correctly. The manager of Houston seafood restaurants said that his restaurant had no competition because there were no other seafood restaurants within several miles. Several months later the restaurant went out of business. Customers decided to spend their money at competitors, either by driving farther to other seafood restaurants or by dining at nearby non-seafood restaurant.       

     Suppliers: Suppliers are firms or individuals that provide the resources needed by the company to produce its goods and services. Some hotels have contracted with restaurants companies to supply their food and beverage services. The New York, New York in Las Vegas has contracted with ARC restaurant to manage its restaurants. These hotels are bringing branded restaurants to their hotels to create value for their guests. Outsourcing of food and beverage allows the hotel to concentrate on lodging while letting food and beverage specialists handle this area within the hotel.        Marketing intermediaries: Marketing intermediaries help the company promote sell and distribute its goods to the final buyers. They include travel agents, wholesale tour operators and hotel representatives.      Disintermediation - internet-distributing products online.        Marketing services agencies are suppliers that help the firm to implement its marketing strategy and tactics. These suppliers include PR (public relations), advertising agencies and direct mail houses.      Financial intermediaries include banks, credit companies, insurance companies that finance and insure risks.  Customers - individuals who buy your products and services. For funerals, weddings, resellers buy product to resell it again tour operator buys airline seats, hotel rooms, tickets to the museums to make a tourists package for reselling.  Publics - a group that has an impact on Companies ability to achieve its goals. We identify seven types of publics.

  1. Media publics- TV, newspaper, magazines
  2. Financial – banks, stockholders
  3. Government public – the company lawyers
  4. Citizen- action public-environment groups, minority groups
  5. Local publics – include neighborhood residents and community organizations
  6. General public- a company needs to be concerned about the general public`s attitude toward its products and activities.
  7. Internal public- workers, managers, volunteers, broad of directors

     The company’s macroenvironment:           Future competitors: Two forces affect the competition to enter and exit markets. Entry barriers prevent firms from getting into a business and barriers to exit prevent them from leaving. Low barriers to entry characterize the restaurant industry. It takes a relatively small amount of capital to get started in the restaurant industry. This makes it hard to predict future competition because a large pool of organizations and individuals can open restaurant.        Hotels have moderately high barriers of entry, due to the cost of building a hotel. Large capital investment required to build a hotel becomes a sunk cost. If the hotels cannot meet their debt payments, taxes, the hotel may operate at a loss rather than close their doors.            Demographic environment: Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics. Now the population is 6.6 billion but by the year 2030 it will grow to 8.1 billion. Changes in the world demographic environment have major implications for business. For example, consider Chine. Chinese government limited families to one child each. As a result, Chinese children are known as prince and princess. 1 emperor has 6 people who are taking care of them-grandparents and parents. Because of 1 child policy close to 75% of all Chinese families will be childless. Either because they choose to have no children or their child decides not to leave with the family. The result will be that Chinese will travel and senior living.           The U.S. population contains several groups:

  • Baby boomers
  • Generation X
  • The millennial

     The baby boomers:   The post World War baby boom produced 78 million baby boomers, born between 1946 and 1964. Over the years, the baby boomers have been one of the most powerful forces shaping the marketing environment. These baby-boomers do not feel old. They spent billions of dollars on travel, looking for active vacations where they can have adventure or explore, polar bear sighting expedition in northern Canada. Butterfield and Robinson developed biking tours for these baby-boomers.             Generation X:  Generation X people who were born between 1965 and 1976. They grown up during the period of recession and they have more cautious economic outlook. They care about the environment. Hotels and environment that are taking initiatives to be environmentally responsible are attractive this group. This group will research products before purchasing it. They prefer quality. They spend on business hotel and mid priced hotel. They like to eat organic food.    Millennial s–born between 1997 and 2000. These groups include several age cohorts: tweens (ages 8 to 12), teens (13 to 18) and young adults (twentysomethings). The younger millennials are just beginning to wield their buying power. The older one graduated from university and expands their career, earning and spending. One thing all of the Millennials have in common is their fluency and comfort with computer, digital and internet technology.       Economic environment:            Changes in income: Along with rising incomes in some segments have come increased financial burdens. The increase is gasoline prices created financial pressures for consumers. They now face repaying debts, increased household and family expenses, and saving for children`s college payment and retirement. This reduction income created hard times for the restaurant industry.               The global economy: Today travel industry operates in a global environment. When the exchange rate between the Euro and the US $ favors the euro, fewer travelers from America go to Europe. Americans spend their vacation in Mexico and South America. Argentina, Chile and Uruguay are all among tourist destinations that attract million of visitors. This is because of economic consequences of currency exchange.           Natural environment: In many cities of the world, air and water pollution have reached dangerous levels- the possibility of global warming and many environmentalists fear that we soon will be buried in our own trash.    Marketers should be aware of several trends in the natural environment:

  • growing shortages of raw materials
  • increased pollution
  • increased government intervention in natural resource management

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