Potential Competitors Five Forces Model Technological Environment Sociocultural Environment Risk of Entry by Potential Competitors Ecological Environment Bargaining Power of Suppliers Threat of Substitute Products Regulatory Environment Rivalry Among Established Firms Economic Environment Bargaining Power Of Buyers Political Environment Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Bargaining Power of Buyers Buyers are powerful when: supply industry is composed of many small companies and buyers are few in number and large; e.g., market research firms buyers purchase in large quantities; e.g., Marriott and Amex; MGM Mirage when supply industry depends on the buyers for a large % of its total orders buyers can switch orders between supply companies threat of vertical integration buyers to purchase input from several companies at once Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Bargaining power of suppliers Suppliers are powerful when: few substitutes and important to the company when company’s industry not important to the supplier costly for a company to switch from one supplier to another suppliers use threat of vertically integrating to compete directly with company companies cannot use threat of vertically integrating backward to supply own needs Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Threat of substitute product existence of substitutes presents a strong competitive threat Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Rivalry among established companies Extent of rivalry is a function of the interaction among the following factors: industry competitive structure demand conditions height of exit barriers ego of executives in charge environment Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
8 Trends Trend 1: More visible guest comfort and convenience in the guestroom Trend 2 : An authentic guest experience Trend 3 : Continued brand consolidation with the emphasis on Europe Trend 4 : Increasing brand proliferation Trend 5 : The changing nature of destination Trend 6 : The Increase and influence of social networks in hotel distribution decisions Trend 7: Increase in Environmental action Trend 8: Continued changes in F&B delivery systems Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Guest Room of the Future Video from U-Tube Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Trend 1: More Visible Guest Comfort and Convenience THIS LATEST RUSH TO TECHNOLOGY IS PART OF A LARGER HOTEL TREND TOWARDS MORE VISIBLE GUEST COMFORT AND CONVENIENCE IN THE ROOM. WE GO THROUGH THESE CYCLES EVERY FIVE OR TEN YEARS. REMEMBER HOW EXCITED EVRYONE GOT AT FAX MACHINES IN THE ROOM AND TVS IN THE BATHROOM? HOWEVER, THIS TREND MAY LAST LONGER AND BECOME A PERMANENT PART OF THE HOTEL OFFERING. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Westin Hotel’s “Heavenly Bed” THIS LATEST TREND IN GUESTROOM COMFORT STARTED WITH THE “WESTIN HEAVENLY BED” INTRODUCED BY STARWOODAROUND 2000. TO THE SURPRISE OF ALL THE HOTEL EXPERTS IT WAS WILDLY SUCCESSFUL AND COMPETITORS RUSHEDTO COPY THEM. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Marriott Bedding MARRIOTT HOTELS WAS ONE OF THE LAST BIG HOTEL COMPANIES TO JUMP IN, ORIGINALLY BELIEVING THAT WHAT WAS GOING ON WAS MERELY A FAD THAT WOULD SOON DISAPPEAR. WHEN THEIR PROFITS WERE IMPACTED THEY TOOK NOTE AND DEVELOPED AND INTRODUCED A NEW BEDDING PACKAGE IN 2005 WHICH IS NOW WORKING ITS WAY THROUGH EUROPE IN ALL THEIR BRANDS. WHAT’S NEXT? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
New Offerings A Global Industry Upgrade in Room Comfort Softer Mattresses Silky Sheets Duvets Pillows in all Shapes, sizes and firmness Mood lighting Workout Equipment A Global Industry Upgrade in Room Comfort Aromatherapy Customized Art TO DATE, WE’VE INTRODUCED INTO THE GUESTROOM SOFTER MATTRESSES, SILKY SHEETS, DUVETS, PILLOWS OF ALL SHAPES, SIZES AND FIRMNESS, MOOD LIGHTING, WORKOUT EQUIPMENT, AROMATHERAPY, CUSTOMIZED ART, SOUNDPROOFING, SUPERIOR INTERIOR AIR QUALITY AND FULL-FLOW, RAINFOREST, SHOWERHEADS. IT’S BEEN MOVING DOWN FROM LUXURY TO ECONOMY HOTELS. WHAT WE ARE SEEING LADIES AND GENTLEMEN IS A GLOBAL INDUSTRY UPGRADE IN ROOM COMFORT. IT IS NOT A FAD. Sound proofing Superior interior Air Quality Full-Flow Rainforest Showerheads Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Hyatt Check-in Kiosks Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Trend 2: An Authentic Guest Experience ‘Don’t ask me to adapt to the hotel’s way of operating. I want the hotel to adapt to me.’ Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Trend 3: Continued Brand Consolidation The increasing ownership of many brands by fewer and fewer companies The conversion of an independent hotel to a brand Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Trend 4: Increasing Brand Proliferation Over 30 new brand introductions in the next two years in the US; then migrating globally Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Synergy of Satisfaction If you like us for business then you will love us for leisure – if not in this brand then in one of our others Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ginger Hotels TV ADVERTISEMENT Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Hotel Companies # of properties # of brands CHOICE 5000 10 HILTON 2300 STARWOOD 896 9 MARRIOTT 2900 16 ACCOR 4000 11 IHG 3800 7 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Trend 5: The Changing Nature Of Distribution Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Customers demand for personalization and a travel experience Five Major Forces Customers demand for personalization and a travel experience A shift in customer preferences for communication/ transaction channels and methods The evolution of social networking from small cliques to global networks. The emergence of a non-traditional and dynamically changing mix of distribution partners The shifting of vendor-distribution partner relationships Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Customers have access to more sources of information Trend 6: The Increase and Influence of Social Networks in Hotel Distribution Customers have access to more sources of information Customers can get feedback from others Customer can make reservation through a number of methodologies-from travel agent to cell phone Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Trend 7: Increase in Environmental Action As a citizen of this planet Take care of the environment and society around you Build relationship with the customer Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Green Movement Defining what it actually means to be green from a hotel operations standpoint A clear understanding of the financial impact on the operating statement for going for green We need to determine a way to measure carbon output and the effects each property has on the environment. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Trend 8: Continuing change in F&B delivery systems Variety of outlets and delivery system Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
F&B Delivery Systems Eliminate Food and beverage completely Focus food and beverage on only one key market segment/one key meal period Lobby breakfast Lobby delicatessen/general store Outsource some or all of food and beverage Dial for delivery Restaurant lease/manage/franchise Self-service Buffets, barbecues, vending Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Beverage Air at IH-M&RS Show 2007 Kitchen Video Beverage Air at IH-M&RS Show 2007 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
8 Trends Trend 1: More visible guest comfort and convenience in the guestroom Trend 2 : An authentic guest experience Trend 3 : Continued brand consolidation with the emphasis on Europe Trend 4 : Increasing brand proliferation Trend 5 : The changing nature of destination Trend 6 : The Increase and influence of social networks in hotel distribution decisions Trend 7: Increase in Environmental action Trend 8: Continued changes in F&B delivery systems Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Tourism Trends for Europe http://www.etc-corporate.org/modules.php?name Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Tourism Trends in Europe Number of older age categories will rapidly increase. Seniors will be healthier and will have higher incomes than in the past. Many will enjoy earlier retirement The average number of persons per household will decrease further with higher disposable incomes and spending power Health-consciousness will increase still further The average level of education is increasing Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Tourism Trends in Europe Modern society exerts increasing pressure on peoples’ daily lives, and stimulates the wish for more leisure time and relaxation – which will have an adverse effect on the increase of free disposable incomes. The increase in the number of days of paid leave has come to a halt More sophisticated consumers are increasingly self-assured regarding their needs and rights. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Tourism Trends in Europe Lifestyles in Western society change gradually The penetration of the internet – and its use for information and the purchasing of tourism products and services – will continue to increase The increasing availability of high-speed trains and low-cost carriers will influence classical travel flows. Road traffic more congestion Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Tourism Trends in Europe Environmental consciousness will continue to increase Acts of terrorism, regional wars, pollution, and other crises have unfortunately become facts of daily life, and influence the need to feel safe and secure Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Trend Site on Web http://www.htrends.com/trends-detail-sid-26299.html http://yumsugar.com/236915 http://www.trendsresearch.com/institut.html Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Industry Trend Resources Stomach competence (Book: GDI/Lebensmittel Zeitung) www.stomachcompetence.ch FoodService Europe (Magazines/Online-Archive) www.cafe-future.net Horizons FS Limited (Research/Consulting Company) www.horizonsforsuccess.com Facts & figures, thoughts and knowledge derive from three sources. 1. The brand new book ‚Stomach competence‘ about growth strategies in saturated food markets. 2. Industry data from our magazines food-service and FoodService Europe stored in our very helpful online archives and 3. Research material from Peter Backman and his company Horizons in London. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Changing Consumers Video: Consumer of tomorrow Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Social Environment Activities Interests Opinions Demographics Work Family Themselves Age Hobbies Home Social issues Education Social events Job Politics Income Vacation Community Business Occupation Entertainment Recreation Economics Family Size Club membership Fashion Dwelling Food Products Geography Shopping Media Future City size Sports Achievements Culture Life cycle stage Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
VALS Survey http://www.sric-bi.com/vals/presurvey.shtml The VALSTM system, originally developed by SRI International is now owned and operated by SRI Consulting Business Intelligence (SRIC-BI). The U.S. VALS system, Japan-VALS, and U.K. VALS have proven to be effective tools for categorizing American, Japanese, and U.K. consumers into various segments based on psychological characteristics and four key demographics. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Successful, sophisticated Value personal growth Segment Lifestyle Characteristics Psychological Customer Innovators Successful, sophisticated Value personal growth Wide intellectual interests Varied leisure activities Well informed, concerned with social issues Highly social Politically very active Optimistic Self-confident Involved Outgoing Growth oriented Open to change Established & emerging leaders in business & government Enjoy the “finer things” Receptive to new products, technologies, distribution Skeptical of advertising Frequent readers of a wide variety of publications Light TV viewers Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Moderately active in community and politics Segment Lifestyle Characteristics Psychological Customer Thinkers Moderately active in community and politics Leisure centers on home Value education & travel Health conscious Politically moderate and tolerant Mature Satisfied Reflective Open-minded Intrinsically motivated Value order, knowledge and responsibility Little interest in image or prestige Above average customers of products for the home Like educational and public affairs programming on TV Read widely and often Look for value & durability Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Lives center on career & family Have formal social relations Segment Lifestyle Characteristics Psychological Customer Achievers Lives center on career & family Have formal social relations Avoid excess change or stimulation May emphasize work at the expense of recreation Politically conservative Moderate Goal oriented Conventional Deliberate In control Attracted to premium products Prime target for a variety of products Average TV watchers Read business, news and self-help publications Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Like the new, offbeat and risky Segment Lifestyle Characteristics Psychological Customer Experiencers Like the new, offbeat and risky Like exercise, socializing, sports and outdoors Concerned about image Unconforming, but admire wealth, power and fame Politically apathetic Extraverted Unconventional Active Impetuous Energetic Enthusiastic and impulsive Follow fashion and fads Spend much of disposable income on socializing Buy on impulse Attend to advertising Listen to rock music Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Respect rules and trust authority figures Segment Lifestyle Characteristics Psychological Customer Believers Respect rules and trust authority figures Enjoy settled, comfortable, predictable existence Socialize within family and established groups Politically conservative Reasonably well informed Traditional Conforming Cautious Moralistic Settled Buy American Slow to change habits Look for bargains Watch TV more than average Read retirement, home and garden and general interest magazines Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Unconcerned about exercise and nutrition Segment Lifestyle Characteristics Psychological Customer Strivers Narrow interests Not well educated Unconcerned about exercise and nutrition Politically apathetic Reward-oriented Unsure Impulsive Trendy Limited discretionary income but carry credit balances Spend on clothing and personal care products Prefer TV to reading Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Prefer “hands on” activities Segment Lifestyle Characteristics Psychological Customer Makers Enjoy outdoors Prefer “hands on” activities Spend leisure with family and close friends Avoid joining organizations except unions Distrust politicians, foreigners and big business Practical Self-sufficient Constructive Committed Satisfied Shop for comfort, durability, value Unimpressed by luxuries Buy the basics Listen to radio Read auto, home mechanics, fishing, outdoors magazines Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Limited interests and activities Segment Lifestyle Characteristics Psychological Customer Survivors Limited interests and activities Prime concerns are safety and security Burdened with health problems Conservative and traditional Not innovative Narrowly focused Risk averse Conservative Brand loyal Use coupons and watch for sales Trust advertising Watch TV often Read tabloids and women’s magazines Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Product Service Sub-strategy Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Segmentation Variables Geographic segmentation Most widely used in hospitality MSA and DMA Demographic segmentation Easily measured and classified Psychographic segmentation Based on self-concepts, lifestyle behaviors, and personality traits Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Segmentation Variables (cont.) Usage segmentation: Purpose Frequency Monetary value Recency REM Timing Nature of purchase Where they go Purchase occasion Heavy, medium, and light users Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Segmentation Variables (cont.) Benefit segmentation Price segmentation Between product class Within product class International segmentation Fine-tuning segments Become more specific and concentrated Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Segmentation Using Multivariate Analysis Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Methodology for Multivariate Procedures The Multivariate Section presents an overview of the findings of the multivariate analysis used to develop a more detailed understanding of the attitudinal differences of the population under study. A variety of statistical techniques and procedures were used to develop this understanding. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Factors of Importance Ratings Serves the type of food I Like Offers Healthy Choices Serves Generous Portions Location is Convenient Provides Exhibition Style Cooking A place for the family A good place to go with friends Service is Relaxed, not hurried Has Pleasant Decor Clean & Appetizing Has Fresh Food The Restaurant is always clean The Food Always Looks Appetizing Clean Dinning Spaces Good Service/Staff Service is always prompt and efficient Server is knowledgeable about the food Has Friendly Staff Good Price Value Reasonable prices Good Value for Money Food preparation and taste The Food is Prepared Just the Way I Like It The Food Taste Great Consistent food and right variety Food is Constant Time After Time Has the right variety of food for me Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Multivariate Analysis Cluster Name Percentage of Total Sample Limited Experience at brand 10.4% Friends, Family & Fun 31.9% Selection & Service 30.5% Consistency 10.7% Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Limited KFH Experience Clean & Appetizing Good Service/Staff Good Price Value Food preparation and taste Consistent food and right variety Serves the type of food I Like Offers Healthy Choices Serves Generous Portions Location is Convenient Provides Exhibition Style Cooking A place for the family A good place to go with friends Service is Relaxed, not hurried Has Pleasant Decor J Cluster II Friends Family & Fun N = 339 31.9% A I K H M E D F N B C Cluster I Limited KFH Experience N=110 10.7% L G Cluster IV Consistency N = 114 10.7% Cluster III Selection & Service N=324 30.5% Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D Dimension 1 vs. Dimension 2
Cluster 1: Limited Brand Experience n=110 (10.4%) Cluster Characteristics Management Implications The restaurant is always clean (9.35)D This is part of the basic service package and needs to be highlighted in the way that the customer can easily see. For example, clean restaurants, clean staff uniforms, non cluttered hostess stand, and of course a clean parking area. Overall, it’s a place I will visit again (9.10)D Since members of this group have desire to visit again, they must be reminded to do so, especially given that they are susceptible to the coupons of competitors. One possible idea for this group is the use of “bounce back coupons.” Food always looks appetizing (9.10)D This is very much related to the appearance of cleanliness as well as to presentation of plates. Continue use of different colors on garnishes on the plates. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Cluster 1: Limited Brand Experience n=110 (10.4%) Cluster Characteristics Management Implications Service is always prompt and efficient (8.75)D To convey the promptness and efficiency of service, even when the restaurant is extremely busy, customers must be informed of wait times, visited on a frequent basis to fill bread and water, and told when order will be ready. It is also critical that members of this group not wait long for their check Influenced by coupons (33.6%)B and direct mailings (14.5%)D to try new restaurants As mentioned earlier, “bounce back “ type coupons will be popular with some members of this group and direct mail should be used to remind customers to come back. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Cluster 2: Friends, Family & Fun n=339 (31.9%) Cluster Characteristics Management Implications Service is relaxed, not hurried (8.91)ACD In order to capture this feeling, wait staff should ask consumers at their tables if they are under time pressure. This will enable services to provide less hurried service. It is also important that when visiting every table staffs are focused only on that table and not looking what they have to do for other tables. Location is convenient (8.61)ACD Convenient location relates to ease of getting to the restaurant, ease of parking, and the like. Management should examine potential barriers at each restaurant that create artificial barriers Serves generous portions (8.21)ACD Research shows that smaller plates provide the perception of bigger portions. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Cluster 2: Friends, Family & Fun n=339 (31.9%) Cluster Characteristics Management Implications A place for the family (7.98)ACD Because members of this group had the most children, it is not surprising that this is an important feature. Kids menus, kids placemats would be useful for this Group. A good place for special occasions (7.95)ACDs The fact that this group rates these variables important versus other guests suggests that this group is looking for “the experience.” They are a large group and King Fish needs to make sure that they have activities in which members of Group II can partake. A good place to get a drink (7.01)ACD Provides exhibition style cooking (6.82)ACD Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Cluster 3: Selection & Service n=324 (30.5%) Cluster Characteristics Management Implications Serves the type of food I like (9.61)ABD Given the extensive menu offered, it is not surprising that this is an important feature. However, the menu at times may seem overwhelming. To highlight the right items, it is important for employees to first determine the type of seafood they like (e.g., by taste, texture, “fishiness”) and then direct them to this particular section of the menu. This will also ensure that members of this group believe that restaurant “offers the right variety of foods for me.” Service is always prompt and efficient (9.31)ABD Similar to Group I, this is an important attribute for visitors to restaurant. To convey the promptness and efficiency of service, even when the restaurant is extremely busy, customers must be informed of wait times, visited on a frequent basis to fill bread and water, and told when order will be ready. It is also critical that members of this group not wait long for their check. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Cluster 3: Selection & Service n=324 (30.5%) Cluster Characteristics Management Implications Has friendly staff (9.27)ABD This feature suggests the need to hire for attitude not necessarily knowledge or experience. Both knowledge and experience can be taught, friendliness is innate. Has the right variety of foods for me (9.38)ABD These three attributes are all related to the feature “serves the type of food I like.” As mentioned, it becomes the role of the staff to not just become “order takers” but become “sales people” and “fish experts.” 44,2% (top two box) of the members of this segment would like to see restaurant offer new seasonal seafood specials. (This percentage is higher than other three groups.) In addition, 32.7% (top two box) would like to see nutritional information. Server is knowledgeable about the food (9.24)ABD Offers healthy choices (8.56)ABD Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Cluster 4: Consistency n=114 (10.7%) Cluster Characteristics Management Implications Food tastes great (8.74) These important features indicate that members of this group really just want a consistent experience. Overall it is a place I will visit again (8.55 Food is prepared just the way I like it (8.50) Overall it is a place I am satisfied with (8.44) Food is consistent time after time (8.06)A Has the right variety of foods for me (7.62)A Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Cluster 4: Consistency n=114 (10.7%) Cluster Characteristics Management Implications Provides exhibition style cooking (4.33)C Although this feature was rated higher by members of this group compared to members of Group III, it is still rated relatively low. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Carvel Ice Cream Work on possible segmentation strategy for Carvel Ice Cream Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
customer loyalty; life-time value Components of a product; GAP model Efficiency Quality Innovation Customer Responsive Size Infrastructure Manufacturing R&D Marketing How to create customer loyalty; life-time value Components of a product; GAP model Taco Bell The components of the loyalty circle Franchise Materials Management Human Resources Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Efficiency Communication Sub-strategy Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Word of Mouth The One Number Firms Should Be Concerned About Critical in services because of variability and heterogeneity – customers discount advertising, PR, and the like WOM comes from friend, associate, family member Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Word of Mouth - continues Questions to ask: How likely is it that you would recommend _______ to a friend or colleague? use a 0 to 10 scale Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Word of Mouth - continues Net Promoter: calculate % of people who respond with a 9 or 10 (promoters) % of people who respond with a 0 – 6 (detractors) Net Promoter Score = Promoters – Detractors (E-Bay, Amazon, USAA 75% - 80% Median 400 firms in 28 industries was 16%) Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Life-Time Value Case Pre Assignment Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Assignment Calculate the life-time value incremental customer for Jellystone Resort Campground Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Life Time Value Incremental Customer Jellystone Resort Campground Need to Know the following Sale price Fixed cost Variable cost Average stay Lifetime Customers visit Return customers Total customers Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Assignment Calculate the value of word of mouth recommendation for Jellystone Resort Campground – both positive and negative Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Word of Mouth: Incremental Customer Need to know the following Likelihood that customer will refer Number of people to whom the recommendation will be made Percent of referrals that are empathetic (i.e., have the ability to act on what they hear) Probability of those who are empathetic who will buy the service LVIC Formula: WOM = (a*b*c*d*e) Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Negative Word of Mouth: Incremental Customer Need to know the following Number of people dissatisfied customers tells Percent of people that are empathetic (i.e., have the ability to act on what they hear) LVIC Formula (a*b*c) = $ Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
How Might We Ask Questions to Get WOM Information? How likely are you to recommend ____ to your friends? “0 – 10” How many friends are you likely to tell when you have a very positive experience? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Assignment Calculate the value of promotion for Jellystone Resort Campground Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Impact of Promotion to Increase Word of Mouth: Jellystone Resort Campground What we know: Mailed 1000 postcards 10% off a 2 night stay and same discount for friends they brought with them Need to bring post card with you to get discount 200 people returned with card 50 came with card that was passed on to them by original receiver What is value of this promotion? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Impact of Promotion to Increase Word of Mouth: Jellystone Resort Campground What we need to know: # of redemptions Revenue per customer per day Discount Length of stay Number of new comers New customer revenue Life time value of new comers What program cost loss revenue = 250 * $35* 2 = $17,500 (no discount) 250 *$31.50*2 = $15,750 (discount) difference: $1, 750 + cost of mailing Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
The Communications Mix Advertising Sales promotion Merchandising Public relations and publicity Personal selling Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
The Communications Mix: Defined “All communications between the firm and the target market that increase the tangibility of the product/service mix, that establish or monitor consumer expectations, or that persuade customers to purchase.” Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Communications Strategy To plan, implement, and control persuasive communication with customers Six stages of the communication process: To whom to say it Why to say it What to say How to say it How often to say it Where to say it Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Attitudinal Components and Their Impact on Communications Strategy Consumer Stage Effect Stage Strategy Cognitive: the stage of thoughts/beliefs Create awareness, beliefs Provide information, get attention, inform, remind Affective: the stage of emotion Change attitudes and feelings, get involved, evaluate Position, create benefits and image, stir emotions, arouse Conative: the stage of motivation and intention Stimulate and direct desires, adopt Move to action, reinforce expectation, persuade Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of WOM Buzz Marketing: Viral Marketing: Community Marketing: Using high-profile entertainment or news to get people to talk about your brand. Viral Marketing: Creating entertaining or informative messages that are designed to be passed along in an exponential fashion, often electronically or by email. Community Marketing: Forming or supporting niche communities that are likely to share interests about the brand (such as user groups, fan clubs, and discussion forums); providing tools, content, and information to support those communities. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of WOM Grassroots Marketing: Evangelist Marketing: Organizing and motivating volunteers to engage in personal or local outreach. Evangelist Marketing: Cultivating evangelists, advocates, or volunteers who are encouraged to take a leadership role in actively spreading the word on your behalf. Product Seeding: Placing the right product into the right hands at the right time, providing information or samples to influential individuals. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of WOM Influencer Marketing: Cause Marketing: Identifying key communities and opinion leaders who are likely to talk about products and have the ability to influence the opinions of others. Cause Marketing: Supporting social causes to earn respect and support from people who feel strongly about the cause. Conversation Creation: Interesting or fun advertising, emails, catch phrases, entertainment, or promotions designed to start word of mouth activity. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of WOM Brand Blogging: Referral Programs: Creating Blogs and participating in the blogosphere, in the spirit of open, transparent communications; sharing information of value that the Blog community may talk about. Referral Programs: Creating tools that enable satisfied customers to refer their friends. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
How to Create WOM Encouraging communications Giving people something to talk about Creating communities and connecting people Working with influential communities Creating evangelist or advocate programs Researching and listening to customer feedback Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
How to Create WOM Engaging in transparent conversation Co-creation and information sharing Blogs Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
http://www.subservientchicken.com/ Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Video: Undercover marketing Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Janet Johnson, Vice President of Communications, Marqui, Inc. Blog Word of the year in 2004 Defined by Merriam-Webster as “a web-site that contains an online personal journal with reflections, comments, and other hyperlinks.” Survey by the Pew Internet and American Life Project revealed that 27 percent of adults who go online in the United States read blogs. Janet Johnson, Vice President of Communications, Marqui, Inc. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Janet Johnson, Vice President of Communications, Marqui, Inc. Blog More than 28% of journalists now rely on blogs for reporting and research, according to a survey by EURO RSCG Magnet and Columbia University, with 53% of surveyed journalists revealing they gleaned story ideas from blogs and 36% saying they used blogs to locate sources Janet Johnson, Vice President of Communications, Marqui, Inc. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
What a blog should be used for Provide product or service information, talk about your market, explore the vision of your management or leadership team, provide opportunity for customers to share their stories Janet Johnson, Vice President of Communications, Marqui, Inc. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Examples of Blogs www.thelobby.com http://www.blogs.marriott.com/ http://behospitable.com/ http://www.hamptonlandmarks.com/ http://www.homewoodstories.com/ Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Positioning Strategy Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Product Positioning The way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds usually relative to something. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Positioning - Continued: Market position differences by market segment or season (e.g., business travel versus leisure travel) Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Positioning Must create an image, differentiate itself, and promise a benefit Positioning approaches: By attribute, feature, or customer benefit By price/quality With respect to use or application According to users or class of users With respect to a product class Vis-à-vis the competition Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Checklist for Evaluating Positioning Strategy Does it say who you are and what you stand for? Does it create a mental picture? Does it set you apart and show how you are different? Does it preempt a benefit niche and capitalize on an advantage? Does it turn any liability into an asset? Does it have benefits for the target market you are trying to reach? Does it provide tangible evidence or clues? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Checklist for Evaluating Positioning Strategy Does it feature the one or two things that your target market wants most? Is it consistent with strategy—for instance, does it expand or exchange usage patterns? Create new awareness? Project the right image? Does it have credibility? Does it make a promise you can keep? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ways to Position # 1. Positioning by attribute Associating a product with an attribute, a product feature, or a customer feature e.g., Hyundai low price, Volvo safety, BMW handling Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Vintage Building Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ways to Position # 2. Positioning by how customer uses your product or service Arm & Hammer baking soda as odor-destroying agent in refrigerators Long distance phone line “Reach out and touch someone” Campbell’s Soup for use at lunch, Gatorade as sports drink Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ways to Position # 2. Positioning by how customer uses your product or service – continued Positioning to business travelers versus leisure travelers e.g, baby shampoo, Miller Lite beer Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ways to Position # 3. Positioning by price/value Higher price used to signal higher quality to the consumer Does not have to been high price; especially if one considers definition of quality- “design to work as it is supposed to work” Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ways to Position # 4. Positioning with respect to product class e.g, 7-Up as the “un-cola;” Caress as a bath oil rather than a hand soap Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ways to Position # 5. Positioning with respect to competitor Used to exploit the dominant position of a competitor (e.g., Avis, we are number two) Sometimes it is not important how good customers think you are, it is just important that they believe you are better than the competitor Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Positioning Maps Using Excel Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Example: Importance Question Next, please think for a moment about the reason for visiting a specific hotel in Las Vegas for gambling. Please tell me how important each reason is for you in your decision to visit one specific property over another. Please use a 1 to 10 scale, where a “1” means the reason is not at all important and a “10” means the reason is very important in your decision to choose one establishment over another for gambling. You may use any number on this 1 to 10 scale. [Ask questions in random order] How important is…_______________…in your decision to choose one place to visit over another? It is a place my friends like to go Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Example: Attitude Question Now I am going to read you a list of features that may or may not describe some of the hotels in the Las Vegas area. We’ll use a 1 to 10 scale, where a 1 means it “does not describe the hotel at all” and a 10 means “describes the hotel perfectly”. If you have not been to the hotel personally, please base your answers on what you have heard, or what you believe to be true. [Ask questions in random order] How well does this feature describe…(brand to be rated)? It is a place my friends like to go Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Steps to Developing a Positioning Strategy Identify the competitors From customer’s point of view Different competitors in different segments Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Best Way to Define True Competitors Ask 50 – 100 customers at check-in, “If you did not stay here tonight, where would you stay?” Those hotels who, if they took a pricing action, would force you to take a pricing action Where do you currently “walk” guests? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Best Way to Define True Competitors Based upon a definition of the core customer; different competitors for different segments Avoid emotional opinions Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Steps to Developing a Positioning Strategy Determine how the competitors are perceived and evaluated Determine the competitors’ positions Critical to also have reference points for data analysis Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Matrix of Competitive Advantages Example: Casino high Slot Club Friendly Staff Value of Promotions Brand Feel Safe Service Package Level of Importance Price Good Entertainment Non Smoking low Relative Performance Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Index of Competitive Strength The competitive advantages and disadvantages which are shown in the matrix of competitive advantages can be condensed into one single index, the index of competitive strength. All relative performances of the product on the individual factors are weighted with their importance and summed up. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Calculation of Competitive Index Sum the importance ratings for all features and multiply by the number of scale points. (The numbers are in column A in Table on next page) For each attribute, multiple average importance x average performance. Answers in Column C Sum all numbers in column C Calculate the CSI as -- Total C/Total in A Repeat steps for competitor's: see columns D and E Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Calculation of Competitive Index Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
53.16 Caesar $189 47.91 Bally $185 $180 $179 59.97 Rio 63.92 Boulder 43.41 Circus Circus $159 54.3 Fiesta $155 52.07 Excalibur $140 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Exercise Develop positioning maps for coffee shop data on the next slide What the positioning map show you? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
customer loyalty; life-time value Components of a product; GAP model Efficiency Quality Innovation Customer Responsive Size Infrastructure Manufacturing R&D Marketing How to create customer loyalty; life-time value Components of a product; GAP model Taco Bell Market Intelligence Franchise Materials Management Human Resources Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Innovation Case Study Taco Bell Case questions: Critically analyze the actions taken by Taco Bell between 1983- 1994 Given the speed and magnitude of change, why did not Taco Bell go “out of control” Can Taco Bell’s major competitors copy the Taco Bell strategy? Why or why not Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Case Questions: Taco Bell What explains the degree of Taco Bell’s success in contrast to its competitors? Describe the process of change at Taco Bell and comment on whether it helped, hindered, or was essential to success. Can the strategy lead to a competitive advantage? What is next for Taco Bell? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Taco Bell Video Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
customer loyalty; life-time value Components of a product; GAP model Efficiency Quality Innovation Customer Responsive Size Infrastructure Manufacturing R&D Marketing How to create customer loyalty; life-time value Components of a product; GAP model Taco Bell Market Intelligence Franchise Materials Management Human Resources Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Understand the Customer Using Marketing Research/ Intelligence Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Definition of Marketing Research The systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems (and opportunities) in marketing. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Steps In the Research Process 1. Decision Problem 2. Research Problem 5. Determine Research Design 4. Review Secondary Data 3. What Do We Expect To Know 6. Data Collection Methods and Forms 7. Design Sample 8. Implement the Field Work Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Steps In the Research Process: con’t 9. Field Control 10. Field Supervision 11. Field Interviewers 12. Field Quality Checks 14. Editing 13. Validation 17. Code Verification 18. Keypunch 16. Coding 15. Code Building 20. Clean Data 19. Keypunch Verification 21. Analyze Data 22. Write Report Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Sources of Research Full Service Suppliers Consultants Advertising Agencies University Data Tabulation Houses Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Research Design Exploratory Descriptive Casual Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Research Design: Exploratory Research Literature Search Focus Groups In-depth Interviews Analysis of selected cases Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Research Design: Descriptive Research Purpose To describe characteristics of certain groups Estimate the % of people in a specified population who behave in a certain way Make predictions Require clear specifications of who, what, where, when, why, and how Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Research Design: Descriptive Research Types of Descriptive Studies Longitudinal Analysis True Advantages can look at changes in individuals collect lots of classification material accurate participants selected systematically Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Research Design: Descriptive Research- con’t Types of Descriptive Studies Longitudinal Analysis Omnibus Advantages can ask certain people certain questions smaller surveys Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Research Design: Descriptive Research- con’t Types of Descriptive Studies Cross-Sectional Analysis Provides snapshot of variables at a specific point in time example is a sample survey Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Research Design: Casual Research X causes Y Three kinds of evidence to support inferences of causality Concomitant Variation Time order of occurrence Elimination of other possible causal factors Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Research Design: Casual Research Use Experiments to Provide Evidence Laboratory Field Experiments Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Causal Research: types of Q A magazine company printed various cover designs and asked people in its office to indicate the design they like best. This experiment measured the effects of cover design on preference. The same company printed magazines with the two most popular cover designs, shipped these magazines to newsstands in different cities, and measured sales for each design. This experiment also measured the effects of cover design on sales. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of Data Nominal Ordinal Interval Ratio Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of Data - Nominal Measurement in which numbers are simply assigned to objects or classes of objects solely for the purpose of identification Only appropriate measure of central tendency is the mode Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Example – Nominal Data Which of the soft drinks on the following list do you like? Check all that apply: ____ Coke ____ Dr. Pepper ____ Mountain Dew ____ Pepsi ____ Seven Up Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of Data - Ordinal Numerals assigned reflect order as well as identity The median and the mode are appropriate measures of central tendency Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Example – Ordinal Data Please rank the soft drinks on the following list according to your degree of liking for each, assigning your most preferred drink rank = 1 and your least preferred drink rank = 5. ____ Coke ____ Dr. Pepper ____ Mountain Dew ____ Pepsi ____ Seven Up Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of Data - Interval Numerals convey information about the magnitude of the differences between the objects; we can determine how much more one category is than another Appropriate measures of central tendency are the mean, median, and mode Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Example – Interval Data Please indicate your degree of liking for each of the soft drinks on the following list by checking the appropriate position on the scale: Dislike a lot Like a lot 1 2 3 4 5 6 7 Coke Dr. Pepper Mountain Dew Pepsi Seven Up Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of Interval Scales Likert-type scales: “Below are a list of benefits that a luxury hotel could offer to entice you to be loyal to that hotel. For each benefit listed, please indicate the impact that feature would have on your loyalty. Use a 1 to 7 scale, where “1” means the feature will have no impact on your loyalty and “7” means the feature will have a great impact on your loyalty. Use any number from 1 to 7” Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
My rule of thumb for scales Minimum scale range 1 to 7 Tend to use 1 to 10 Include ‘No opinion’ option Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of Data - Ratio Similar to interval, but there is a natural 0 point The 0 point indicates an absence of the attribute Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Example – Ratio Data During your next 10 visits to the supermarket, please indicate the number of 2-liter bottles of each of the following beverages that you would purchase. ____ Coca-Cola ____ Dr. Pepper ____ Mountain Dew ____ Pepsi ____ Seven Up Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Types of Data Generated Awareness, Trial, Usage (ATU) Behavior Intentions Attitudes and opinions Demographic information Service failure and value recovery Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Measuring Attitude, Trial, and Usage (ATU) Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Measuring ATU Awareness/Knowledge or ATU (awareness, trial, and usage): what respondents do and do not know about some object or phenomenon Unaided: brand name not mentioned Aided: consumers specifically asked if they recall brand Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Measuring ATU a. Please think for the moment about fast food restaurants located in your area. Which restaurants can you name? b. FOR THOSE NOT MENTIONED ASK: Before this interview, have you heard of READ NON-CIRCLED BRANDS. c. FOR BRANDS CIRCLED IN a or B ASK: In the last six months have you been to READ BRAND. d. FOR BRANDS CIRCLED IN C ASK: In the last three months have you been to: READ BRAND. e. FOR BRANDS CIRCLED IN D ASK: How many times have you been to BRAND in the last 30 days? Unaided Aided Six Months Three Months Last 30 Days a b c d e McDonald’s 1 1 1 1 _________ Burger King 2 2 2 2 _________ In and Ou 3 3 3 3 _________ Other Mentions (WRITE IN) ___________ Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Measuring Behaviors Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Behavior The measure of behavior involves four distinct elements: the action: the behavior one is trying to measure; e.g., purchase of a hotel room the target: the thing at which a behavior is directed; e.g., purchase of a Marriott hotel room the context: e.g., staying at a Marriott for business vs. staying at a Marriott for pleasure the time: e.g., perhaps if late at night stay not at a Marriott, but first place you find Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Behavior Behavior: what subjects have done or are doing Involves the development of a description of the purchase or use activity, either past or present, with respect to some or all of the characteristics listed below: Purchase/Use Behavior What How much How Where When In what situation Who Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Behavior How many nights have you stayed overnight at a resort in the continental U.S. for vacation or personal reasons in the last 12 months? __________________ How many nights have you stayed overnight at a hotel outside of the continental U.S. (including Hawaii and the Caribbean) for vacation or personal reasons in the last 12 months? __________________ Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Behavior While traveling for leisure in the last 12 months, how many nights did you stay at: READ EACH BRAND. IF ZERO, PLEASE WRITE “0”. Crowne Plaza _____ Sheraton _____ Four Seasons_____ Marriott _____ Hilton _____ Westin _____ Hyatt _____ Ritz-Carlton ___ Other brands ____ Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - Be Aware Of Situational Factors Wrong! What kind of wine did you last buy? Correct! What kind of wine did you last buy when you went out on a romantic date? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - Response Choices Should Have All Possible Answers Wrong! How many times did you eat lunch last week? 1 2 3 4 5 6 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - Response Choices Should Have All Possible Answers Correct! How many times did you eat lunch last week? 1 2 3 4 5 6 7 8 - Did Not Eat Lunch Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - Make Items Clear and Precise Wrong! How frequently do you drink coffee? Extremely often………………. 1 Very Often…………………….. 2 Not too often………………..… 3 Never………………………….. 4 Correct! Within the last 7 days, how many 8 oz. cups of coffee did you drink? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - Response Choices Should Not Overlap Wrong! How many times do you eat breakfast in the Dining Commons? 0-3 4-6 6-7 Correct! 1-3 4-5 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - Respondents Must Be Competent To Answer Questions Wrong! How many kilometers from home are you away from the nearest McDonald’s? Correct! During normal traffic conditions, how many minutes does it take you to drive to the nearest McDonald’s from your home? Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - State Explicit Alternatives Wrong! Would you buy pasta-in-a-jar if available in a store where you normally shop? Correct! If pasta-in-a-jar and the canned pasta product you currently use were both available in the store where normally shop, would you: A) Buy only the canned pasta product B) Buy only the pasta-in-a-jar product C) Buy both products Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Measuring Demographic Questions Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - Ask demographic questions in non-threatening ways Wrong! How much do you make per year? Correct! 1. What is your annual household income: 1. $50,000 or less (skip to Q1a) 2. $50,001 or more (skip to Q1b) Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Ex: - Ask demographic questions in non-threatening ways Q1a. Is that : 1. Under $20,000 2. $20,000 - $30,000 3. $30,001 - $40,000 4. $40,001 - $50,000 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Exercise Work on developing questionnaire for CIC Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
customer loyalty; life-time value Components of a product; GAP model Efficiency Quality Innovation Customer Responsive Size Infrastructure Manufacturing R&D Marketing How to create customer loyalty; life-time value Components of a product; GAP model Taco Bell Market Intelligence Franchise Materials Management Human Resources Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Size Noodles Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Questions for Noodles Case See pages 14 and 15 of case Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Objectives Introduce Strategic Marketing System Model – the Framework for the class Review definition of marketing and discuss the future of marketing Review the buyer purchase model Discuss how to calculate the life time value of the customer and the value of WOM and why this is important Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Objectives Discuss market positioning Discuss a framework for developing a marketing plan Review communication strategies Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Carvel Ice Cream Incorporates class material (negates 5 forces model, SWOT, presents measures to show success, etc.) Originality Likelihood of success Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
not at all 1 2 3 4 5 6 7 does extremely well #1 #2 #3 #4 #5 Creativity Originality Incorporates class information This group had fun Will build a CA Presents measures to monitor success TOTAL Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D
Presentations Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D