1. The Marketing and Sales Division
Chapter 11

2. Chapter 11 Objectives Define Marketing Terms in Hospitality.
Explain the function of a feasibility study and situation analysis.
Understand the components of a Marketing Plan and its purpose.
Describe the organization of the department.
Understand the business of sales.
Explain the need of advertising in hospitality.

3. Marketing Terms
Objective 1

4. Marketing & Sales Terms
Markets
Identified groups of current or potential guests
Market Segments
Groups with similar buying characteristics
Market Mix
Various segments that the hotel tends to attract
Marketing Strategy
Tools used to attract the correct market mix

5. Modern Marketing Emphasis
Marketing was once just the selling of products
Marketing became more consumer-oriented during the Great Depression
Now, marketing is not only the selling of goods and services but also the advertising of what is available.

6. The Sale of Hospitality
Hospitality Industry sells products and services
Services are intangible and harder to market
Good marketing will promote the image and position well above the competition

7. Planning for Guest Needs
Objective 2

8. Planning for Guest Needs
Feasibility Study
analysis of the proposed hospitality facility to determine the best chance for success.
Components of the Feasibility Study
Location
Most important element in the success of property
Population living or working in the surrounding area
Ease to get in/out of establishment

9. Planning for Guest Needs (cont.)
Components of the Feasibility Study (cont.)
Demographics
Age, Marital Status, Income, Number of Children
Marketers identify preferences of these guests
Competition
Financial Success of Competition
SWOT Analysis of competition
Financial Analysis
Estimation of expected revenues and profits

10. Planning for Guest Needs (cont.)
Situation Analysis
Collection of data to determine the likes and dislikes of a property after it is opened.
Situation Analysis Components
The Product
The goods and services that the property sells
Looks at physical and psychological factors
The Market
Analysis of the make-up of the guests you have

11. Planning for Guest Needs (cont.)
Situation Analysis Components (cont.)
The Competition
SWOT Analysis of each Competitor
Commonalities and differences between you and them
Segmentation
Determining segments to fulfill the property’s needs and marketing to those segments
Evaluation
On-going analysis to improve property

12. Marketing Planning Process
Objective 3

13. The Marketing Plan
The Marketing Plan uses the Situation Analysis to determine who to sell to and how.
Marketing Plans keep sales accountable and focused on the correct business.
Elements of the Marketing Plan
Mission Statement
Clearly states what the property is and which markets it intends to serve

14. The Marketing Plan (cont.)
Elements of the Marketing Plan (cont.)
Situation Analysis
Comparison to competition in rates, occupancy, etc.
Comparative Statistics
Use of actual business volumes to create projections for the future and determine the focus to meet those projections in terms of booking goals and pace.

15. The Marketing Plan (cont.)
Elements of the Marketing Plan (cont.)
Action Plans
Determination of monthly plans to meet goals while assigning responsibility of those sales activities
Promotional Calendar
Timeline in which advertising and promotions will be offered during the upcoming year
Catering Plan
Action plans for the catering aspect of the business

16. Organization of Marketing
Objective 4

17. Organization of Marketing
Director of Sales & Marketing
Director of Convention Services
Convention Service Manager
PR Manager
Revenue Manager
Reservations Staff
Director of Sales
Sales Managers

18. Organization of Marketing (cont.)
Depends on property size and needs
DOSM typically reports to the General Mgr.
May oversee following positions
Director of Sales or ADOS
Revenue Manager
PR Manager
Convention Services Manager

19. Interdepartmental Relationships
Sales team will sell the various products within the property
Must relay all information to each department
Food & Beverage
Front Office and Reservations
Banquets

20. Bringing in Business
Besides internal communication, sales team must find the business from the outside
Methods of Sales
Personal Contact
Guest reaches out to the property directly
Property initiates contact to the guest or customer
Advertising, Internet Marketing

21. Bringing in Business Methods of Sales (cont.)
Companies and Associations
Sales efforts to companies who travel or host groups
Sales efforts to Associations who have seminars, annual conventions and trade shows
Travel Agents
Agreements to earn reservations through an agent
3rd Parties
Wholesale parties via agency or website

22. Hotels & Airlines Similarities between Hotels & Airlines
Product is perishable. An unsold room or seat can never be used again.
Frequent Traveler Rewards target business travelers to earn loyalty
Both have advance purchase and discounts
Both use Yield Management to maximize profits

23. The Business of Selling
Objective 5

24. The Business of Selling
Operation depends on a successful sales team
Rooms Business is most profitable for hotel
Considers two types – group and transient
Transient can be corporate or leisure business
Hotel should have a good mix of business

25. The Business of Selling (cont.)
Types of Rooms Business
Conventions
Events ranging from 100 to 100,000 people
Put on by companies, associations, or organizations
Contract Rooms
Contract in which a company guarantees a certain number of rooms everyday at the hotel
Heavily Discounted due to volume

26. The Business of Selling (cont.)
Types of Rooms Business (cont.)
Business Meetings
Local companies which use hotel for various meetings
Training, Meetings, Incentive Trips
Tour Groups
Leisure and Business Travelers using packages
Transient Business
Business Travelers coming in to conduct business

27. The Business of Selling (cont.)
Public Space
Meeting space and Ballrooms
F&B Business
Catering, Restaurants and Lounges
Internal Selling
Employees selling higher priced items for profit
Personal Selling
Sales Team selling to the outside

28. Rating Systems
Classifications of hotels based on amenities, product and services
AAA Diamond Rating
Mobil Star Rating
Ratings are a form of advertising and if rating improves or decreases it can affect business levels

29. Advertising, Promotions, Public Relations
Objective 6

30. Advertising Newspapers Magazine Radio
Targeted Audience, consistent circulation
Short Life
Magazine
High quality production, color, prestige
Longer life and still a targeted audience
Radio
Local saturation, targeted, short life

31. Advertising (cont.) Television Internet Sites Social Media
Appeals to sight and sound, targeted, repeats
Expensive to produce
Internet Sites
Photo, Video, Virtual Tours
Easy to Update
Social Media
Ways to connect with guests but monitor often

32. Advertising (cont.) Outdoor Ads Direct Mail
Billboards along state highways
Exterior Signage
Direct Mail
Mailing of brochures, coupons, ads
Targeted Audience and can be personalized
Uses frequent guest memberships

33. Special Promotions Coupons Product Sampling Contests
Discounted or Free Stays
Can be used in multiple advertising options
Product Sampling
Trying of a new menu item to entice guests
Contests
A way to increase sales for time of contest
Prizes should be cost effective

34. Special Promotions (cont.)
Packages
Increased room rates which include amenities that are minimum cost to hotel
Weekend Package including Champagne, Meals
Business Package including technology
Premiums
Giving something free for those paying premium
Gift Certificates

35. Special Promotions (cont.)
Discounting
A way to entice new guests to increase sales
Must track the ROI
Bonus Offers
Buy something and get a bonus
Free Dessert, 4th entrée free

36. Public Relations Fostering a good relationship with the Public
Creates a public image for the property
Media
Editorial Coverage about property
Community
Charity work in the local area
Employees
Assists in selling efforts