©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker CHAPTERCHAPTER CHAPTERCHAPTER 13 Marketing, Human Resources, and Culture

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Defining Marketing Marketing… –Finding out what guests’ wants and needs are –Providing the customer with solutions –“Creating customers and keeping them coming back”

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Marketing Orientation Marketing Orientation… –Customer needs –Understanding customers –Marketing research –Frequent reviews –Long-term planning

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Marketing Orientation Marketing Orientation (cont.)… –Customers’ perceptions –Interdepartmental cooperation –Cooperation with complimentary organizations –Change is inevitable –The scope of business is broadly set –Measurement and evaluation

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Environmental Scanning Scanning… –Economic –Social –Political –Technological

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Market Planning Planning… –Market assessment Is there a need for a product –Market demand Who are the users and how many –Competitor analysis Who are they What are they doing ?

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Positioning Positioning… –Establishing a distinctive place in the market and in the minds of potential guests –Examples Four Seasons Motel 6

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Marketing Goals and Objectives Marketing… –Specific goals for total enterprise and departments –Example Increase occupancy by 8%

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Marketing Mix Marketing Mix… –Place –Product –Price –Promotion –Partnership –Packaging –Programming –People

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Place Place… –Physical Plant –“Location, Location, Location” Ellsworth Statler –Atmosphere

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Product Product… –Must meet the customer’s needs and wants –Example Courtyard Inns by Marriott –Feedback from customers is critical –Product life cycle

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Price Price… –Price = Value –Guests perception of equity –Determined in two ways Comparative approach Cost-plus approach $$$

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Promotion Promotion… –Advertising –Sales promotions –Merchandising –Personal selling –Public relations A New Year’s Eve Party!

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Partnerships and Packaging Partnerships… –Two or more hospitality/tourism organizations come together Packaging… –Combine items or activities and sell them as a group –“Happy Meals” by McDonalds

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Programming and People Programming… –Camp Hyatt –Disney Institute People… –“Yes I Can” by Radisson –Empowering employees

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Sales Sales… –Different than marketing Focus is on product or service for sale –Sales department is organized based on organization –Sales blitzes

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker What is Human Resource Management? Human Resources… –Attracting –Selecting –Orienting –Training –Developing –Evaluating

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Job Descriptions Descriptions… –Based on task analysis –Listing of the activities and outcomes expected of a person performing a job –Can be used as a legal document –Lists specific knowledge, qualifications, and skills

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Productivity Standards Standards… –Sales divided by labor costs –Example Sales of $55,000 Labor costs of $11,000 Productivity equals 5 –For every dollar in labor –$5 in sales was generated

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Recruitment and Selection Recruitment and Selection… –Internal promotion –Employee referrals –Applicant files –Transfers within the company –Advertising –Colleges and Universities –Government-sponsored employment services

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Interviewing What They Are Looking For? Interviewing… –Dress –Mannerisms –Attentiveness –Attitude –Interest –Answers to questions

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Interviewing What Should You Do? Interviewing (cont.)… –Dress in a businesslike manner –Arrive early and smile –Stress your strengths –Do homework on the company –Ask appropriate questions –Write a thank-you note

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Selection Selection… –Several interviews –Testing –References –Medical examination Drug screening test

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Orientation Orientation… –Corporation’s history –Benefits –Safety and fire prevention –Introduction of organizational chart –Rules and procedures

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Training Training… –Apprentice training –Simulation training –Certification training –On-the-job training –Off-the-job training

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Performance Appraisal Appraisal… –Comparison of employee’s work with standards –Positive attributes Feedback to employees Use as personal development plan Establishing rationale for promotion/raise Helping establish objectives for training

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Performance Appraisal Appraisal (cont.)… –Common distortions Recent behavior influence Halo effect Like-me syndrome

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Compensation Compensation… –Total reward system including wages and benefits –Wages = hourly workers –Salaries = management/supervisor positions –Fair Labor Standards Act (FLSA)

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Employee Retention Retention… –Turnover equals the number of workers replaced in a given time period by the average number of employees needed to run the business –Replacement costs = $2,000-$5,000 per person –Industry turnover is better than 100% per year

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Issues in Human Resources Issues… –Equal Employment Opportunity (EEO) –Sexual harassment –ADA –Cultural diversity

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Trends in Marketing and Human Resources Trends… –Market orientation of human resources –Proactive in employment and staffing –Use of the Internet –Use of structured interviews –Relationship marketing –Partnering