Chief 賈儒慶 曹思漢 黃敬琮 林鴻儒 鄭鈞瑋 姚文宜 Amber Inn & Suites, Inc. Final Report

Executive Summary Define the problem Prepare one presentation on April 11 that describes Initiative expenditures and outcomes for each of the past 2 years. Plan initiatives and budgetary need for fiscal 2005 & Target The CEO Mr. James announced that his goal for the company was to achieve profitability with two year. Answer Amber Inn should be more focused on business traveler.

Reasons According to Amber’s Inn executives, the company is positioned as a limited service hotel between economy and full-service hotels. (Page 310) Suitable for business travelers. According to Exhibit 6, the major customers of Amber Inn are business travelers. 3. Purpose of trip Business79.8%81.8%

Reasons Average payment per room night Business Traveler: $96 / per room night (higher) Leisure Traveler: $89 / per room night (Page ) Average yearly income from a business man:$81,100 (higher) Average yearly income from a household man:$72,600 (Page ) According to Exhibit 6, less account receivable problems with business traveler. 5. Type of trip and payment Business traveler paid for by the company 65.7%67.7%

Reasons According to Exhibit 6, 8. Reason for choosing Close to next day’s activity47.5%47.0% Personal preference based on previous experience 48.1%49.1% Stayed here before40.9%41.2%

Activity 1 Marketing Budget for next year: Should be more focused on business traveler Media Magazine  Maintain the budget of magazines related to business. Maintain 1/2 budget of Newspaper  Maintain the same budget as 2005 shown in Exhibit 7. Outdoor  Cut the budget. Spot TV  Cut the budget. Cable Networks  Cut the budget. Radio  Cut the budget. Internet  Maintain the same budget as 2005 shown in Exhibit 7. We can save about $5,500,000 based on Exhibit 7.

Activity 2 Promote the frontier strategy which focuses on the business segment. Business Traveler Vacation Traveler Existing Area Frontier Area

Estimation With activities 1 and 2, the lodging revenue of Amber Inn can be increased by 7% based on 2005 of Exhibit 4, Lodging revenue: $422,625 x (100% + 7%) = $452,208 Total Expense: $438,317 x (100% + 3%) = $451,466 (The Expense includes the AD cost down in activity 1 and frontier marketing expense) Net Income: $452,208 - $451,466 = $742

Teaching Note Setting Reasonable Communication Objectives Developing An Integrated Marketing Communication Mix The information requirements of potential buyers The nature of the offering The nature of the target markets The capacity of the organization Marketing Web Sites and Integrated Marketing Communications Purpose of Marketing Web Sites Leveraging Advertising and Personal Selling with Promotional Web Sites Communication Mix Budgeting Communication Budget Allocation Advertising Budget Allocation Sales-Force Budget Allocation Evaluation and Control of the Communication Process

Teaching Note The Five M’s of Advertising Mission What are the objectives? Money How much can be spent? Message Media What medias should be used? Measurement Advertising Objectives Informative Persuasive Reminder Reinforcement