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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     Number  of  channel levels: Distribution channels can be described by the number of channel levels.

     Channel 1 – called a direct marketing channel, has no intermediary level. It consist of manufacturer selling directly to consumers. For example, restaurateur may buy produce directly from the grower at a farmers’  market.

     Channel 2 – retailer. The fisherman`s Pier restaurant in Geelong, Australia purchases its fish from a fisherman`s cooperative.

     Channel 3 - contain two levels. In consumer markets, these are typically a wholesaler and a retailer. This type of channel is used by smaller manufactures.

     Channel 4 – contains three levels. The jobber buys from wholesalers and sells to smaller firms that are not served by larger wholesalers.

     Marketing intermediaries:

     Travel agents: The number of travel agents has been decreasing in recent years due to the growth of direct looking and customer self-booking travel on the internet. Today the majority of airline reservations are booked directly on the airline’s web-site. Almost all airlines have discounted paying commissions to travel agents. This has led agencies to charge a 25$ to 50$ fee for issuing ticket. In addition to selling airline tickets, travel agents book hotel sales and nearly all cruise travel. Hotels typically pay 10% commission to travel agents and 15% to cruise   lines.

     Hotels also send information packages to travel agents including collateral material and hotel news, including updates about hotel packages, promotion and special events. Travel agents are also invited to visit hotel property on familiarization tours. Airlines sometimes assist with these trips by providing free airfare.

     Travel agents like to be paid quickly. Hotels that want travel agent business process commissions rapidly. Hyatt guarantees payment within one week of the guest’s departure. Foreign chains are now paying commissions in the travel agent`s local currency eliminating the need for the agent to go through the costly   process of converting a commission check. On a 50$ commission foreign currency check, the travel agents stands to lose nearly the full amount because most banks charge a minimum of 30$ to 40$ per transaction for processing and converting checks drawn on a foreign bank. Majority of cruise lines do not sell directly to the ultimate consumers but insist that bookings be made through travel agents and tour operators. Many organizations sign an exclusive agreement with one travel agency, and   employees are required to book through this firm.

     Tour wholesalers: Tour wholesalers assemble travel packages. It generally includes transportation and accommodation but may include meals, ground transportation and entertainment. In developing a package, a tour wholesaler contracts with airlines and hotels for a specified number of seats and rooms received a quantity discount. The wholesaler also arranges transportation between the hotel and the airport. Retail travel agents sell these packages. The wholesaler has to provide  a commission  for the travel  agent  and give  consumers a package that  is perceived to be a better value than  could  arrange   on  their  own. Additionally, tour operators have to make a profit for themselves. It is not uncommon for a tour wholesaler to go broke. It`s important that tour wholesalers receive a deposit and get paid promptly. 

     With  the increased numbers of international resorts, tour wholesales are becoming   a powerful member of the distribution channel. It is impossible for travel agents to know every resort. Instead, they rely on catalogs provided by tour wholesalers. If a couple wants to holiday on Saipan, they are given the catalog of a tour operator covering Micronesia. The catalog contains a selection of several luxury hotels, four-star hotels, three-star hotels and tourist hotels. The couple chooses a resort that seems to offer the best value based on the information provided by the tour wholesalers.

     Specialists: Tour Brokers, Motivational Houses, Junket reps: Tour brokers sell  motor coach tours. For hotels coach tour can provide an important source of income. Motor coach tours are very important to museums and historic restorations.   Motivational houses provide incentive travel offered to employees or distributors as a reward for their efforts. Companies often use incentive travel as a prize for employees who achieve their sales goals or for team achieving the highest sales.   Junket reps serve the casino industry for players as intermediaries. Junket reps maintain lists of gamblers who like to visit certain farming areas. They`re paid a commission on the amount casino earns from the players.

     Hotel Representatives: Hotel Representatives sell hotel rooms and hotel services. This is true when the market is a distant one when cult differences may make it hard for an outside to penetrate the market. For example corporate hotel in Houston may find it more effective to hire a hotel representative in Mexico City than to send a sales manager there. A hotel representative receives a straight commission, a commission plus a salary. It takes time for a Hotel representative to learn a company`s products and inform the market about them.

  1. Communicating the offer, Relationship marketing,Internal marketing
 

     Public relation:  Public is an important marketing tool that until recently was treated as a marketing stepchild.  Public relations departments perform the five activities:

  • press relation
  • product publicity
  • corporate communication
  • lobbying
  • counseling
 

     Press relation involves the creation and placing of newsworthy information into the news media to attract attention to a person, product or service.           Product publicity involves publicizing specific products.

      Corporate communication covers internal and external communications and promotes understanding of the organization. Lobbying involves dealing with legislators and government officials to promote or defeat legislation and regulation.

      Counseling involves advising management about public issues and company    positions and image.

     Publicity: Publicity is a direct function of public relations. Publicity is the task of securing editorial and news space, as opposed to paid space, in print and broadcast media to promote a product or a service. Publicity is a popular PR tool and used  to assist in the launch of new products. Companies can use  publicity to build a positive image with specific target markets or stakeholders.               For example, McDonald’s sponsors special neighborhood events in Hispanic and black communities for good causes and  in this way build a good company image.

     The public relation process: Effective PR is the result of a process. This process must be integrated with the firm’s marketing strategy.

     The PR process consist of the following steps: research, establishing the market objectives, defining the target audience, choosing the PR messages and vehicles, implementing the PR plan, and evaluating the result.                                                                                                                            

     Sales promotion: Sales promotion consists of short-term incentives to encourage the purchase or sale of a product or service. Sales promotion includes a variety of promotional tools designed to stimulate earlier or stronger market response. It includes consumer promotion (samples, coupons,  price-of, premiums, contests, demonstrations), trade promotion-buying allowances (free goods, cooperative advertising and push money) and sales force promotion (bonuses and contests).

     In using sales promotions, a company must set objectives, select the right tools, develop the best program, pretest and implement it, and evaluate the results.

        Setting sales promotion objectives: Sales promotion objectives vary widely. The objective may be to entice consumers to try a new product, lure consumers away from competitors, or hold and reward loyal customers.

      Selecting sales promotion tools: The main consumer promotion tools include samples, coupons, premiums, point-of-purchase displays, sweepstakes, and games.

      Samples are offers of a trial amount of a product. Some samples are free. For others, the company charges a small amount to offset its cost.

      The Inn on the Park in Houston invited potential customers and influential community members to stay in the luxury hotel at no charge.

     The promotion accomplished two objectives: (1) salespeople were aided in selling corporate contracts because many of their potential customers had experienced the hotel; and (2) positive word-of-mouth about the hotel was created. Sampling is the most effective but also the most expensive way to introduce a new product. 

  1.   Promoting Products:

    Communication and Promotion Policy and Advertising 

     The internet has created a new marketing phenomenon called viral marketing. Viral marketing has two major features.

       The first is that people are pushing the message to others. The second is they are often pushing it to people they know and asking them to push it to people they know. Many people delete e-mail advertisements without opening them and often spam filters prevent some people from even receiving the advertisements. With viral marketing the message is coming from a friend, so it is opened.

     Integrated marketing communication:

     The new marketing communication landscape: Several major factors are changing the face of today’s marketing communications. First, consumers are changing. In this digital, wireless age, they are better informed. Rather than relying on marketer – supplied information, they can use the internet and other technologies to seek out information on their own.  Second, marketing strategies are changing. Finally, sweeping changes in communication technology are causing remarkable changes in the ways in which companies and customer communicate with each other.

     The shifting marketing communications model: Television, magazines and other mass media remain very important, their dominance is declining. Advertisers are now adding a broad selection of more specialized and highly targeted media to reach smaller customer segments. The new media range from specialty magazines, cable television channels and video on demand to internet catalogs, e-mail in television programs and video games.

     Marketers will increasingly abandon traditional mass media in favor of promise if new technologies – from Web-sites and e-mail to cell phone content and video on demand. Some TV programs are not even on cable or network, they’re being created just for internet viewing.

     The need for integrated marketing communication: Today more companies are adopting the concept of integrated marketing communications (IMC). IMC calls for recognizing all contact points where the customer may encounter the company and its brands. Each brand contact will deliver a message, whether good, bad or indifferent. IMC ties together all the company’s messages and images. The company’s television and print advertisements have the same message, look and feel as its e-mail and personal selling communications.

     Steps in developing effective communications: There are six steps in developing effective communications.

  1. identify the target audience
  2. determine the communication objectives
  3. design the message
  4. select the communication channels
  5. select the message source
  6. measure the communication’s results process.
 

     Identifying the target audience – a marketing communicator starts with a clear target audience in mind. The audience may be potential buyers and current users, those who make the buying decision   or those who influence it.

      Determining the communication objectives:  Once a target audience has been defined, the marketing communicator must decide what response is sought. In most cases, the final response is purchase. But purchase is the result of a long process of consumer decision making.

     The target audience may be in any of six buyer readiness states: awareness, knowledge, liking, preference, conviction or purchase.

     Knowledge – the target audience might be aware of the company or product but know little.

     Liking – If target audience members know the product, how do they feel about it? For example, dislike very much, dislike somewhat, indifferent, like somewhat.

     Preference – a target audience might like the product but not prefer it to others.

     Conviction – a target audience might prefer the product but not develop a conviction about buying the product. Marketers have a responsibility to turn favorable attitude into conviction because conviction is closely linked with purchase.

     Purchase – some members of the target audience might have conviction but not quite get around to making the purchased. They may wait for more information or plan to act later.

     Designing the Message: Ideally, the message should get attention, hold interest, arouse desire and obtain action.

     Emotional appeals attempt to provoke emotions that motivate purchase. These include fear, guilt and shame appeals that entice people to do things that they should (brush their teeth, buy new tires) or stop doing things they shouldn’t (smoke, drink too much). 

     In a print ad, the communicator has to decide on the headline, copy, illustration, color, size, shape, and movement.  If the message is to be carried on TV or in person, all these elements must be planned. Presenters plan their facial expressions, gestures, dress, posture, and hairstyle. If the message is carried on the product or its package, the communicator has to watch texture, scent, color, size, shape.

     Selecting communication channels: The two broad types of communication channels are personal and nonpersonal.

     In personal communication channels, two or more people communicate directly with each other. They might communicate face to face, person to audience, over the telephone or even through the mail.

     Nonpersonal communication channels are media that carry messages without personal contact on feedback. They include media, atmospheres, and events. Major media consists of print media (newspapers, magazine, direct mail), broadcast media (radio and TV) and display media - (billboards, signs, posters).

     Measuring the Results of the communication: After sending the message must evaluate its effect on the target audience. This involves asking the target audience whether they remember the message, how many times they saw it. The communicator would also like to measure behavior resulting from the message: how many people bought a product, talked to others about it or visited the store.

     Managing and coordinating integrated marketing communications:

     Advertising has shortcomings although it reaches many people quickly; advertising is impersonal and can not be as persuasive as company salesperson. Advertising is able to carry on only a one – way communication with the audience and the audience doesn’t feel it has to pay attention or respond. In addition, advertising can be very costly. Although some forms such as newspaper and radio advertising can be done on small budgets, other forms, such as network TV advertising, require very large budgets.

     Personal selling is the most effective tool at certain stage of the buying process, particularly in building buyer preference, conviction and purchase. Compared with advertising personal selling has several unique qualities. It involves personal interaction between two or more people, allowing each observe the other’s needs and characteristics and make quick adjustments. With personal selling the buyer usually feels a greater need to listen and respond, even if the response is a polite “no thank you”.

     Sales promotion includes an assortment of tools, coupons, contests. They attract consumer attention and provide information that may lead the consumer to buy the product. Advertising says “buy our product” sales promotion says: “buy it now”.

     Public relations have several advantages one is believability. News stories, features, events seem more real and believability to readers than do ads. Public relations can reach many prospects who avoid salespeople and advertisements. Companies provide interesting stories on videotape for use on and during periods of light viewing, such as early morning.

     Direct marketing: Direct mail and catalogs, telephone marketing online marketing and others share four destructive characteristics. Direct marketing is nonpublic. The message is normally directed to a specific person. Direct marketing is immediate and customized message can be prepared very quickly and can be tailored to appeal to specific customers. Finally direct marketing is interactive.  

  1.   Promoting Products: Public Relations and Sales Promotion
 

     Public relation: Public is an important marketing tool that until recently was treated as a marketing stepchild.  Public relations departments perform the five activities:

  • press relation
  • product publicity
  • corporate communication
  • lobbying
  • counseling
 

     Press relation involves the creation and placing of newsworthy information into the news media to attract attention to a person, product or service.           Product publicity involves publicizing specific products.

      Corporate communication covers internal and external communications and promotes understanding of the organization. Lobbying involves dealing with legislators and government officials to promote or defeat legislation and regulation.

      Counseling involves advising management about public issues and company    positions and image.

     Publicity: Publicity is a direct function of public relations. Publicity is the task of securing editorial and news space, as opposed to paid space, in print and broadcast media to promote a product or a service. Publicity is a popular PR tool and used to assist in the launch of new products. Companies can use publicity to build a positive image with specific target markets or stakeholders. For example, McDonald’s sponsors special neighborhood events in Hispanic and black communities for good causes and in this way build a good company image.

     The public relation process: Effective PR is the result of a process. This process must be integrated with the firm’s marketing strategy. One common misconception about PR and publicity is that quantity is more important than quality. Some PR firms measure success by the number of articles placed in media. As an other marketing efforts, public relations should be meaningful to the target market.

     The PR process consist of the following steps: research, establishing the market objectives, defining the target audience, choosing the PR messages and vehicles, implementing the PR plan, and evaluating the result.                                                                                                                              

     Sales promotion: Sales promotion consists of short-term incentives to encourage the purchase or sale of a product or service. Sales promotion includes a variety of promotional tools designed to stimulate earlier or stronger market response. It includes consumer promotion (samples, coupons, price-of, premiums, contests, demonstrations), trade promotion-buying allowances (free goods, cooperative advertising and push money) and sales force promotion (bonuses and contests).

     In using sales promotions, a company must set objectives, select the right tools, develop the best program, pretest and implement it, and evaluate the results. Setting sales promotion objectives: Sales promotion objectives vary widely. The objective may be to entice consumers to try a new product, lure consumers away from competitors, or hold and reward loyal customers.

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