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12/9/2019
Learning Objectives
Marketing for Hospitality and Tourism 1. Describe a service culture.
Kotler, Bowen and Makens 2. Identify four service characteristics that affect the
marketing of a hospitality or travel product.
3. Explain seven marketing strategies for service
Service Characteristics of Hospitality and Tourism businesses
Marketing
Chapter 1
Marketing for Hospitality and Tourism, 6e © 2014 by Pearson Higher Education, Inc
Kotler, Bowen and Makens Upper Saddle River, New Jersey 07458 • All Rights Reserved
1 2
Characteristics of Service Marketing Steps to Reduce Variability
Invest in good hiring

& training
procedures
Characteristics Standardize Monitor

of Services The service- Customer
performance Satisfaction
process
Marketing for Hospitality and Tourism, 6e © 2014 by Pearson Higher Education, Inc Marketing for Hospitality and Tourism, 6e © 2014 by Pearson Higher Education, Inc
Kotler, Bowen and Makens Upper Saddle River, New Jersey 07458 • All Rights Reserved Kotler, Bowen and Makens Upper Saddle River, New Jersey 07458 • All Rights Reserved
3 4
Types of Marketing
The Service Profit Chain
Satisfied and
Internal productive Greater
service service service value
quality employees
Internal Service Interactive

Marketing Marketing Marketing
Healthy
Satisfied and
service
loyal
profits and
customers
growth
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Recommendations for Improving

Marketing Strategies
Service Quality
1. Listening 6. Surprising customers
Service Service Service Customer

2. Reliability 7. Fair play
Differentiation Quality Productivity Complaints
3. Basic service 8. Teamwork
4. Service design 9. Employee research
5. Recovery 10. Servant leadership
Employees Capacity
Perceived
As Part Of and
Risk
The Product Demand
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Demand Management
Capacity Management
Use Price to Create or Reduce Demand
Involve the Customer in the Service Delivery System
Use Reservations
Cross-Train Employees
Overbook
Use Part-Time Employees

Revenue Management
Rent or Share Extra Facilities and Equipment
Use Queuing
Schedule Downtime During Periods of Low Demand
Shift Demand
Change the Service Delivery System
Create Promotional Events
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Tips for Managing Waiting Lines Key Terms

Interactive marketing Marketing Physical evidence Tangible clues
1. Unoccupied time feels longer than occupied by a service firm that recognizes such as promotional material,
time perceived service quality depends
heavily on the quality of the buyer–
employees of the firm, and the physical
environment of the firm. Physical
seller interaction. evidence is used by a service firm to
make its product more tangible to
Internal marketing Marketing by a customers.
service firm to train effectively and
2. Unfair waits are longer than equitable waits motivate its customer-contact Revenue management A pricing
employees and all the supporting method using price as a means of
service people to work as a team to matching demand with capacity.
provide customer satisfaction.
Service culture definition to look
3. Uncertain Waits Are Longer than Known, Finite Organization image The way a like this. Definition to look like this.
person or group views an organization.
Waits
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Key Terms (cont.)

Service inseparability A major Service-profit chain A model that
characteristic of services; they are shows the relationships between
produced and consumed at the employee satisfaction, customer
same time and cannot be satisfaction, customer retention, value
creation, and profitability.
separated from their providers,
whether the providers are people Service variability A major
or machines. characteristic of services; their quality
may vary greatly, depending on who
Service intangibility A major provides them and when, where, and
characteristic of services; they cannot how they are provided.
be seen, tasted, felt, heard, or smelled
before they are bought.
Service perishability A major

characteristic of services; they cannot
be stored for later use.
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Learning Objectives
Marketing for Hospitality and Tourism 1. List and discuss the importance of the elements of the
company’s microenvironment, including the company,
Kotler, Bowen and Makens suppliers, marketing intermediaries, customers, and
public.
2. Describe the macroenvironmental forces that affect
The Marketing Environment the company’s ability to serve its customers.
Chapter 2 3. Explain how changes in the demographic and
economic environments affect marketing, and
describe the levels of competition.
1 2
Learning Objectives (cont.) Microenvironment

4. Identify the major trends in the firm’s natural and
technological environments.
5. Explain the key changes that occur in the political and
cultural environments.
6. Discuss how companies can be proactive rather than Management
reactive when responding to environmental trends. Orientations
3 4
Analyzing Competitors Levels of Competitors
Companies that
Share of offer similar services Companies that
Market to the same make the same
customers at a product or class of
similar price products
Share of Share of
Heart Mind
Companies that Companies that
supply the same compete for the same
service consumer dollars
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Types of Publics
Intermediaries
Financial Publics
Media Publics
Government Publics
Marketing
Financial
Services Intermediaries
Intermediaries Citizen-Action Publics
Agencies
Local Publics
General Public
Internal Publics
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Macroenvironments Demographic Trends in the US
Changing Age The Changing

Structure of Increasing
American
the Diversity
Family
Population
Management
Orientations
A Better
Geographic Educated,
Shifts in More
Population Professional
Population
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Generations in the US Economic Trends in the US
Baby Boomers
Changes Economic The Global

In Income Trends Economy
MIllenials Generation
X
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Natural Environment Trends in the Political Environment
Increased Legislation and Regulation
Growing Shortages
of Raw Materials Changing Government Agency Enforcement
Increased Increased Increased Emphasis on Social Responsibility

Government Pollution
Intervention
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Cultural Environment Environmental Scanning
Determine Determine How

Environmental Information will
Areas to be be Collected
Monitored
Cultural Cultural
Environment Subcultures
Values
Analyze Data and

Implement Data
Use in Planning
Collection Plan
Process
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Key Terms Key Terms (cont.)

Baby boomers The 78 million Economic environment The Financial intermediaries Banks, Macroenvironment The larger
people born between 1946 and 1964. economic environment consists of credit companies, insurance societal forces that affect the whole
factors that affect consumer purchasing companies, and other businesses that microenvironment: competitive,
Demography The study of human power and spending patterns. Markets help finance transactions or insure demographic, economic, natural,
populations in terms of size, density, require both power and people. against the risks associated with the technological, political, and cultural
location, age, sex, race, occupation, Purchasing power depends on current buying and selling of goods. forces.
and other statistics. income, price, saving, and credit;
marketers must be aware of major Generation X A generation of 45 Marketing environment The
Disintermediation The elimination economic trends in income and million people born between 1965 and actors and forces outside marketing
of intermediaries. changing consumer spending patterns. 1976; named Generation X because that affect marketing management’s
they lie in the shadow of the boomers ability to develop and maintain
Echo boomers See Millennials. Environmental management and lack obvious distinguishing successful transactions with its target
Born between 1977 and 1994, these perspective A management characteristics; other names include customers.
children of the baby boomers now perspective in which a firm takes “baby busters,” “shadow generation,” or
number 72 million, dwarfing the Gen aggressive actions to affect the public “yiffies”—young, individualistic, Marketing intermediaries Firms
Xers and almost equal in size to the and forces in its marketing environment freedom-minded few. that help the company to promote, sell,
baby boomer segment. Also known as rather than simply watching and and distribute its goods to final buyers;
Generation Y reacting to it Generation Y See Millennials they include middlemen, physical
distribution firms, marketing service
agencies, and financial intermediaries
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Key Terms (cont.) Key Terms (cont.)

Marketing services agencies Millennials (also called Generation Public Any group that has an actual
Marketing research firms, advertising Y or the echo boomers). Born between or potential interest in or impact on an
agencies, media firms, marketing 1977 and 2000, these children of the organization’s ability to achieve its
consulting firms, and other service baby boomers number 83 million, objectives.
providers that help a company to target dwarfing the Gen Xers and larger even
and promote its products to the right than the baby boomer segment. This Suppliers Firms and individuals that
markets. group includes several age cohorts: provide the resources needed by a
tweens (ages 8 to 12), teens (13 to 18), company and its competitors to
Microenvironment The forces and young adults (the produce goods and services.
close to a company that affect its ability twentysomethings).
to serve its customers: the company,
market channel firms, customer Political environment Laws,
markets, competitors, and the public. government agencies, and pressure
groups that influence and limit the
activities of various organizations and
individuals in society
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Learning Objectives
Marketing for Hospitality and Tourism 1. Explain the importance of information in gaining
insights about the marketplace and customers.
Kotler, Bowen and Makens
2. Explain the concept of the marketing information
system.
Marketing Information Systems and Marketing 3. Outline the marketing research process, including
Research defining the problem and research objectives,
Chapter 3 developing the research plan, implementing the
research plan, and interpreting and reporting the
findings.
4. Explain how companies analyze and use marketing
information.
1 2
Marketing Information System Sources of Marketing Information

Internal Data
Guest History Information

Assessing
Information Guest Information Trends
Needs
Guest Comment Cards
Gathering Developing Listening to and Speaking with Guests

Marketing Marketing
Intelligence Information Automated Systems
Mystery Shoppers
Company Records
Point-of-Sale (POS) Information
3 4
Marketing Intelligence Marketing Research
Identifies and Monitors and

Communicates
Internal Marketing External Defines Evaluates
Sources Intelligence Sources
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Marketing Research Process Marketing Research Objectives
Exploratory
Causal Descriptive
7 8
Developing the Research Plan Research Approaches
Determining Gathering
Specific Secondary
Information Observational
Information
Needs Research
Experimental Survey
Research Research
Designing the Presenting the

Sample Research Plan
9 10
Contact Methods Sampling Plan

How many
Who will be people
surveyed? should be
Mail Telephone surveyed?
Questionnaire Interviewing
Personal Online Interview How should When will the

Interviewing the sample survey be
be chosen? given?
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Research Instruments Research Problem Areas
Lack of Qualitative Information
Failing to Look at Segments within a Sample

Research Mechanical
Questionnaires Instruments Devices
Improper Use of Sophisticated Statistical Analysis
Failure to Have the Sample Representative of the Population
13 14

Causal research Marketing Experimental research The Marketing dashboards are like MIS (cont.) Information analysts
research to test hypotheses about gathering of primary data by selecting the instrument panel in a car or plane, process information to make it more
cause-and-effect relationships. matched groups of subjects, giving visually displaying real-time indicators useful. Finally, the MIS distributes
them different treatments, controlling to ensure proper functioning. information to managers in the right
Data warehouses collect data from related factors, and checking for form and at the right time to help in
a variety of sources and store it in a differences in group responses. Marketing information system marketing planning, implementation,
one accessible location. (MIS) A structure of people, equipment, and control.
Exploratory research Marketing and procedures to gather, sort, analyze,
Descriptive research Marketing research to gather preliminary evaluate, and distribute needed, timely, Marketing intelligence Everyday
research to better describe marketing information that will help to better and accurate information to marketing information about developments in the
problems, situations, or markets, such define problems and suggest decision makers. The MIS begins and marketing environment that help
as the market potential for a product or hypotheses. ends with marketing managers, but managers to prepare and adjust
the demographics and attitudes of managers throughout the organization marketing plans.
consumers. Internal data Internal data consist of should be involved in the MIS. First, the
electronic databases and non-electronic MIS interacts with managers to assess Marketing research The
Ethnographic research Trained information and records of consumer their information needs. Next, it systematic design, collection, analysis,
observers interact with and/or observe and market information obtained from develops needed information from and reporting of data and findings
consumers in their natural habitat within the company. internal company records, marketing relevant to a specific marketing
intelligence activities, and the marketing situation facing a company.
research process.
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Key Terms (cont.)

Mystery shoppers Hospitality Secondary data Information that
companies often hire disguised or already exists somewhere, having been
mystery shoppers to pose as collected for another purpose.
customers and report back on their
experience. Survey research The gathering of
primary data by asking people
Observational research The questions about their knowledge,
gathering of primary data by observing attitudes, preferences, and buying
relevant people, actions, and situations. behavior.
Primary data Information collected

for the specific purpose at hand.
Sample (1) A segment of a

population selected for marketing
research to represent the population as
a whole; (2) Offer of a trial amount of a
product to consumers.
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Learning Objectives
Marketing for Hospitality and Tourism 1. Explain the model of buyer behavior.
Kotler, Bowen and Makens 2. Outline the major characteristics affecting consumer
behavior, and list some of the specific cultural, social,
personal, and psychological factors that influence
Consumer Markets and Consumer Buying consumers.
Behavior 3. Explain the buyer decision process and discuss need
Chapter 4 recognition, information search, evaluation of
alternatives, the purchase decision, and
postpurchase behavior.
1 2
Personal Characteristics
Consumer Behavior
Affecting Consumer Behavior
3 4
Cultural Factors Social Factors
Values Perceptions Groups Family

Cultural
Factors
Wants Behaviors
Social Roles Status
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Personal Factors Psychological Characteristics
Age & Life- Economic

Cycle Occupation
Situation
Stage Motivation Perception
Beliefs &
Self- Learning
Lifestyle Personality Attitudes
Concept
7 8
Perceptual Processes The Buyer Decision Process
Evaluation
Need Information
Selective of
Recognition Search
Attention Alternatives
Selective Selective
Retention Distortion
Purchase Postpurchase
Decision Behavior
9 10

Aspirational group A group to Culture The set of basic values, Lifestyle A person’s pattern of living Personality A person’s
which a person wishes to belong. perceptions, wants, and behaviors as expressed in his or her activities, distinguishing psychological
learned by a member of society from interests, and opinions. characteristics that lead to relatively
Attitude A person’s enduring family and other important institutions. consistent and lasting responses to his
favorable or unfavorable cognitive Membership groups Groups that or her environment.
evaluations, emotional feelings, and Family life cycle The stages have a direct influence on a person’s
action tendencies toward some object through which families might pass as behavior and to which a person Reference groups Groups that
or idea. they mature. belongs. have a direct (face-to-face) or indirect
influence on a person’s attitude or
Belief A descriptive thought that a Group Two or more people who Motive (or Drive). A need that is behavior.
person holds about something. interact to accomplish individual or sufficiently pressing to direct a person
mutual goals. to seek satisfaction of that need. Role The activities that a person is
Brand image The set of beliefs expected to perform according to the
consumers hold about a particular Learning Changes in a person’s Opinion leaders People within a persons around him or her.
brand. behavior arising from experience. reference group who, because of
special skills, knowledge, personality, or
Cognitive dissonance Buyer other characteristics, exert influence on
discomfort caused by postpurchase others.
conflict.
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Key Terms (cont.)

Self-concept Self-image, the
complex mental pictures people have of
themselves.
Social classes Relatively

permanent and order divisions in a
society whose members share similar
values, interests, and behaviors.
Subculture A group of people with

shared value systems based on
common life experiences and
situations.
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Learning Objectives
Marketing for Hospitality and Tourism 1. Understand the organizational buying process.
Kotler, Bowen and Makens 2. Identify and discuss the importance of the
participants in the organizational buying process.
3. Identify the major influences on organizational buyers.
Organizational Buyer Behavior of Group Market 4. List the eight stages of the organizational buying
process.
Chapter 5
5. Identify and describe the group markets in the
hospitality industry.
1 2
Participants in the Organizational

The Organizational Buying Process
Buying Process
Complex Users Influencers Deciders

Large Sums
Technical
of Money
Features
Interactions
Economic
among Many
Considerations Approvers Buyers Gatekeepers
People
3 4
Major Influences on
Buyphases
Organizational Buyers
General
Problem Product Supplier
Environmental Organizational Recognition
Need
Description
Specification Search
Influencers
Interpersonal Individual
Proposal Supplier Order-Routine Performance

Solicitations Selection Specification Review
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Group Business Markets Key Terms

Buying center All those individuals General need description The
and groups who participate in the stage in the industrial buying process in
purchasing and decision-making which a company describes the general
process and who share common goals characteristics and quantity of a
Association and the risks arising from the decisions. needed item.
Conventions
Meetings Convention A specialty market Incentive travel A reward that
requiring extensive meeting facilities. It participants receive for achieving or
is usually the annual meeting of an exceeding a goal.
association and includes general
sessions, committee meetings, and Order-routine specification The
special-interest sessions. stage of the industrial buying process in
SMERF which a buyer writes the final order with
Corporate (Social, Military,
Corporate meeting A meeting held
by a corporation for its employees.
the chosen supplier(s), listing the
technical specifications, quantity
Meetings Educational, Religious needed, expected time of delivery,
& Fraternal) Derived demand Organizational return policies, warranties, and so on.
demand that ultimately comes from
(derives from) the demand for
consumer goods.
7 8
Key Terms (cont.)

Organizational buying process Product specification The stage
definition to look like this. Definition to of an industrial buying process in which
look like this. the buying organization decides on and
specifies the best technical product
Performance review The stage of characteristics for a needed item.
an industrial buying process in which a
buyer rates its satisfaction with SMERF SMERF stands for social,
suppliers, deciding whether to continue, military, educational, religious, and
modify, or drop the relationship. fraternal organizations. This group of
specialty markets has a common price-
Problem recognition The stage of sensitive thread.
the industrial buying process in which
someone in a company recognizes a Supplier search The stage of the
problem or need that can be met by industrial buying process in which a
acquiring a good or a service. buyer tries to find the best vendor.
Supplier selection The stage of

the industrial buying process in which a
buyer receives proposals and selects a
supplier or suppliers.
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Learning Objectives
Marketing for Hospitality and Tourism 1. Define the major steps on designing a customer-driven
marketing strategy: market segmentation, targeting,
Kotler, Bowen and Makens and positioning.
2. List and distinguish among the requirements for
effective segmentation: measurability, accessibility,
Market Segmentation, Targeting, and Positioning substantiality, and actionability.
Chapter 6 3. Explain how companies identify attractive market
segments and choose a market-targeting strategy.
4. Illustrate the concept of positioning for competitive
advantage by offering specific examples.
1 2
Target Marketing Market Segmentation
Market Market Market Geographic Demographic

Segmentation Targeting Positioning
Psychographic Behavioral
3 4
Demographic Segmentation Behavioral Segmentation
Occasion
Age and Life-
Cycle Stage Benefits Sought
Gender Income User Status
Usage Rate
Loyalty Status
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Requirements for Effective Segmentation Evaluating Market Segments
Size & Growth

Measurability Accessibility
Effective
Segmentation Company Structural
Substantiality Actionability Objectives & Attractive-
Resources ness
7 8
Selecting Market Segments Positioning Strategy
Effectively
Identifying Selecting
Marketing Competitive
Communicate
Competitive
Undifferentiated Strategies Differentiated Advantages Advantages
Chosen
Position
Concentrated
9 10
Ways to Differentiate
Positioning Errors
Underpositioning
Management
Orientations Confused Over-
Positioning Positioning
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Which Differences?
Perceptual Mapping
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
13 14

Behavioral segmentation Competitors’ strategies When Demographic segmentation Market homogeneity If buyers
Dividing a market into groups based on competitors use segmentation, Dividing the market into groups based have the same tastes, buy a product in
consumers’ knowledge, attitude, use, or undifferentiated marketing can be on demographic variables such as age, the same amounts, and react the same
response to a product. suicidal. Conversely, when competitors gender, family size, family life cycle, way to marketing efforts,
use undifferentiated marketing, a firm income, occupation, education, religion, undifferentiated marketing is
Bifurcated market A market that is can gain an advantage by using race, and nationality. appropriate.
divided into two major market differentiated or concentrated
segments. For example, in developing marketing. Gender segmentation Dividing a Market positioning Formulating
countries often a group of high-end market on the basis of gender. competitive positioning for a product
hotels exists for international visitors Confused positioning Leaving and a detailed marketing mix.
and as a location for social occasions buyers with a confused image of a Geographic segmentation
for high-income locals. A group of low- company. Dividing a market into different Market segmentation Dividing a
end hotels exists for locals and geographic units such as nations, market into direct groups of buyers who
adventurous tourists. Degree of product homogeneity states, regions, counties, cities, or might require separate products or
Undifferentiated marketing is more neighborhoods. marketing mixes.
Competitive advantage An suited for homogeneous products.
advantage over competitors gained by Products that can vary in design, such Income segmentation Dividing a Market targeting Evaluating each
offering consumers greater value either as restaurants and hotels, are more market into different income groups. market segment’s attractiveness and
through lower prices or by providing suited to differentiation or selecting one or more segments to
more benefits that justify higher prices. concentration. enter.
15 16
Key Terms (cont.)

Overpositioning Giving buyers a
too-narrow picture of the company.
Psychographic segmentation
Dividing a market into different groups
based on social class, lifestyle, or
personality characteristics.
Specific product attributes Price

and product features can be used to
position a product.
Underpositioning Failing to
position the company at all.
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Learning Objectives
Marketing for Hospitality and Tourism 1. Understand why internal marketing is an important
part of a marketing program.
2. Explain what a service culture is and why it is
important to have a company where everyone is
focused on serving the customer.
Internal Marketing
3. Describe the three-step process involved in
Chapter 7 implementing an internal marketing program.
4. Explain why the management of nonroutine
transactions can create the image of being an
excellent service provider.
1 2
Internal Marketing Internal Marketing Process
Internal Marketing involves marketing to the

Development Dissemination
firm’s internal customers, its employees Establishment of a Marketing of Marketing
of a Service Approach to Information to
Culture HR Employees
The Moment of Truth occurs when employees

and customers have contact
3 4
New Organizational Structure

Establishment of a Service Culture
Customers
Line Employees
Supervisors
Service Department Heads
Service Organizational
Marketing
Culture Culture
Program General
Managers
Corporate
Focus of
Organizational Team
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Marketing Approach to HR
Nonroutine Transactions
Create Jobs that Attract Good People
• Strong culture prepares employees to handle
nonroutine transactions Improve the Hiring Process
– Service culture provides employees with the proper:

Promote Teamwork
• Attitude
• Knowledge
Emphasize the Importance of Initial Training
• Communication Skills
• Authority
Train Continuously
• Nonroutine transactions are unique
– The ability to handle nonroutine transactions Manage Emotional Labor
separates excellent hospitality companies from

mediocre ones Implement a Reward and Recognition System
7 8
Key Terms
Cast members A term used for Internal marketing Marketing by a
employees. It implies that employees service firm to train effectively and
are part of a team that is performing for motivate its customer-contact
their guests. employees and all the supporting
service people to work as a team to
Cross-training Training employees provide customer satisfaction.
to do two or more jobs within the
organization. Moment of truth Occurs when an
employee and a customer have
Emotional labor The necessary contact.
involvement of the service provider’s
emotions in the delivery of the service. Organizational culture The
pattern of shared values and beliefs
Empowerment When a firm that gives members of an organization
empowers employees, it moves the meaning and provides them with the
authority and responsibility to make rules for behavior in that organization.
decisions to the line employees from
the supervisor. Service culture A system of values
and beliefs in an organization that
reinforces the idea that providing the
customer with quality service is the
principal concern of the business.
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Learning Objectives
Marketing for Hospitality and Tourism 1. Discuss the process and advantages of integrated
marketing communications in communicating
Kotler, Bowen and Makens customer value.
2. Define the five promotion tools and discuss the
Promoting Products: Communication and factors that must be considered in shaping the overall
promotion mix.
Promotion Policy and Advertising
Chapter 8 3. Outline the steps in developing effective marketing
communications.
4. Explain the methods for setting the promotion budget
and factors that affect the design of the promotion
mix.
1 2
Learning Objectives (cont.) The Promotion Mix

5. Define the roles of advertising in the promotion mix.
6. Describe the major decisions in advertising, including
setting objectives and budget; creating the
advertising message; selecting advertising media;
choosing media types, vehicles, and timing; and
evaluating advertising. The Promotion
Mix
3 4
Integrated Marketing Communications Elements in the Communication Process
Sender Encoding Message Decoding Receiver
Media
Noise
Feedback Response
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Steps in Developing Effective

Buyer Readiness States
Communication
Identify the Determine the

Design the
Target Communication
Message Awareness Knowledge Liking
Audience Objectives
Select the Select the

Collect
Communication Message
Feedback Preference Conviction Purchase
Channels Source
7 8
Designing the Message Communication Channels
Message
Content
Communication
Personal Channels Nonpersonal
Message Message
Format Structure
9 10
Setting the Total Promotion Budget Objective and Task Method
Percentage Determine Estimate the

Affordable Define Tasks to Costs of
Budget of Sales Specific Achieve Performing
Objectives
Methods Objectives Tasks
Competitive Objective
Parity and Task
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Advertising Personal Selling
Benefits Drawbacks Benefits Drawbacks
Seems Legitimate Impersonal Builds Buyer Preference Long-Term Commitment
Allows Repetition One-Way Communication Fosters Relationships Most Expensive Tool
Builds Long-Term Image Easily Ignored
Low Cost per Exposure Can Be Very Costly
13 14
Sales Promotion Public Relations
Benefits Drawbacks
Attract Customer Attention Effects are Short-Lived

Encourage Immediate Short-Term More Public Better
Purchase Believable Relations Reach
May Not Build Brand
Can Boost Sagging Sales Preference
15 16
Direct Marketing Promotion Mix Strategies
Nonpublic Immediate Type of Product Push vs. Pull

& Market Strategy
Promotion Mix
Strategies
Buyer Readiness Product Life-
State Cycle Stage
Customized Interactive
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Major Decisions in Advertising Advertising Objectives
Advertising
Informative Objectives Persuasive
Reminder
19 20
Setting an Advertising Budget Creating the Advertising Message
Stage in the Product Life Cycle

Message Message Message
Strategy Execution Decisions
Competition and Clutter
Market Share
Advertising Frequency Message

Message Evaluation
Generation and
Product Differentiation Selection
21 22
Message Execution Major Steps in Media Selection

Slice of Life
Lifestyle
Fantasy Choosing
Deciding Selecting
Among Deciding
Mood or Image on Reach,
Major
Specific
on Media
Frequency Media
Media Timing
Musical & Impact
Types
Vehicles
Personality
Technical Expertise
Scientific Evidence
Testimonial Evidence
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Evaluating Advertising Effectiveness Key Terms

Advertising Any paid form of Direct marketing Direct
nonpersonal presentation and connections with carefully targeted
promotion of ideas, goods, or services individual consumers to both obtain an
by an identified sponsor. immediate response and cultivate
lasting customer relationships: the use
Atmosphere Designed of direct mail, the telephone, direct-
Communication Measure Sales Effect

environments that create or reinforce a
buyer’s leanings toward consumption of
response television, e-mail, the
Internet, and other tools to
Effect a product. communicate directly with specific
consumers.
Continuity Scheduling ads evenly
within a given period. Direct rating The advertiser
exposes a consumer panel to
Copy testing A process performed alternative ads and asks them to rate
Awareness Effect before or after an ad is printed or the ads.
broadcast.
25 26

Events Occurrences staged to Laboratory test This test uses Portfolio tests Consumers view or Recall tests The advertiser asks
communicate messages to target equipment to measure consumers’ listen to a portfolio of advertisements, people who have been exposed to
audiences, such as news conferences physiological reactions to an ad: taking as much time as they need. magazines or television programs to
or grand openings. heartbeat, blood pressure, pupil recall everything they can about the
dilation, and perspiration. Promotion mix The specific mix of advertisers and products that they saw.
Informative advertising advertising, personal selling, sales
Advertising used to inform consumers Media Nonpersonal communications promotion, and public relations a Recognition tests The researcher
about a new product or feature to build channels, including print media company uses to pursue its advertising asks readers of, for instance, a given
primary demand. (newspaper, magazines, direct mail), and marketing objectives. issue of a magazine to point out what
broadcast media (radio, television), and they have seen.
Integrated marketing display media (billboards, signs, Public relations Building good
communications Under this posters). relations with the company’s various Reminder advertising Advertising
concept the company carefully publics by obtaining favorable publicity, used to keep consumers thinking about
integrates its many communications Personal selling Personal building up a good corporate image, a product.
channels to deliver a clear, consistent, presentation by the firm’s sales force to and handling or heading off unfavorable
and compelling message about the make sales and build customer rumors, stories, and events. Sales promotion Short-term
organization and its brands. relationships. incentives to encourage the purchase
Pulsing Scheduling ads unevenly or sale of a product or service.
over a given period.
27 28
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Learning Objectives
Marketing for Hospitality and Tourism 1. Explain the role and nature of personal selling and the
role of the sales force.
2. Describe the basics of managing the sales force, and
explain how to set sales force strategy, how to pick a
structure—territorial, product, customer, or complex—
Professional Sales and how to ensure that sales force size is appropriate.
Chapter 9 3. Identify the key issues in recruiting, selecting,
training, and compensating salespeople.
1 2
Learning Objectives (cont.) Managing Professional Sales

4. Discuss supervising salespeople, including directing, Nature of Hospitality Sales
motivation, and evaluating performance.
5. Apply the principles of the personal selling process, and Sales Force Objectives
outline the steps in the selling process: qualifying,
preapproach and approach, presentation and Sales Force Structure and Size
demonstration, handling objections, closing, and
follow-up. Organizing the Sales Department
Recruiting and Training a Professional Sales Force
Managing the Sales Force
3 4
Nature of Hospitality Sales Sales Force Objectives
Prospecting Targeting Communicating Selling
Sales Force
Objectives
Maintaining
Information
Servicing Allocating Strategic
Gathering
Partnerships
5 6
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Sales Volume Sales Force Structure
Territorial
Market Segment
Selected Sales Price /
Segments Volume Margin Mix Market Channel
Customer Structured
Combination Structured
7 8
Sales Force Size Organizing the Sales Department
Group Establish Calculate the Inside Sales Field Sales

Customers
into Size
Desirable Call Total Force Force
Frequencies Workload
Classes
Technical Sales Tele- Commissioned Salaried Sales

Support Assistants marketers Reps Force
Determine the Calculate the

Average Sales Number of Sales
Calls per Representatives Team Sales
Representative Needed
9 10
Recruiting and Training a

Types of Sales Force Training
Professional Sales Force
Importance of Careful Selection
Product/
Types of Policies,
Choose Characteristics that Match the Culture Sales Force Procedures &
Service
Training Planning
Match Career Acquisitions with Corporate Objectives
Sales Techniques
Train the Sales Force
11 12
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Managing the Sales Force Principles of Personal Selling

Grow
Prevent Grow Key Selected
Erosion of Accounts Marginal
Key Accounts Accounts Prospecting Presentation
& Preapproach Approach &
Qualifying Demonstration
Eliminate Provide Lower- Obtain New Overcoming Follow-Up/

Selected Cost Sales Support Business from Negotiating Closing
Objections Maintenance
Marginal to Selected Selected
Accounts Marginal Accounts Prospects
13 14
Evaluation and Control of a

Motivating a Professional Sales Force
Professional Sales Force
Set Sales Quotas
Develop Norms for Salespeople

Motivating
Supplementary
Compensation a Sales Motivators
Use Sales Time Efficiently
Force
Manage Trade Shows
Other Control Techniques
Formally Evaluate Performance
15 16
Key Terms
Allocating Sales representatives Selling Sales representatives know
decide on which customers to allocate the art of salesmanship: approaching,
scarce products to. presenting, answering objections, and
closing sales.
Communicating Sales
representatives communicate Servicing Sales representatives
information about the company’s provide various services to the
products and services. customers: consulting on their
problems, rendering technical
Information gathering Sales assistance, arranging financing, and
representatives conduct market expediting delivery.
research and intelligence work and fill
in a call report. Targeting Sales representatives
decide how to allocate their scarce time
Prospecting The process of among prospects and customers.
searching for new accounts.
17
3
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Learning Objectives
1. Define direct marketing and discuss its benefits to
Marketing for Hospitality and Tourism customers and companies.
Kotler, Bowen and Makens 2. Identify and discuss the major forms of direct
marketing.
3. Explain how companies have responded to the Internet
Direct and Online Marketing: Building Customer and other powerful new technologies with online
Relationships marketing strategies.
Chapter 10 4. Discuss how companies go about conducting online
marketing to profitably deliver more value to
customers.
5. Understand how databases can be used to develop
direct marketing campaigns.
1 2
Direct Marketing Benefits of Direct Selling

• Many companies are adopting Direct Marketing Benefits to Customers Benefits to Companies
as a primary marketing approach
– Direct marketers usually seek a direct, immediate, Convenient, Easy & Private
Powerful Tool for Building Customer
Relationships
and measureable consumer response
Ready Access to a Wealth of Can Target Small Groups or
Products Individual Consumers
• Direct Marketing consists of connecting Systems & Products that Better Can Tailor Products and Services to
Serve Guest Needs
directly with carefully targeted individual Specific Customer Tastes
consumers to both obtain an immediate Interactive & Immediate Low-Cost, Efficient & Speedy
response and cultivate lasting customer Alternative for Reaching Markets
relationships
3 4
Customer Databases Direct Marketing Builds Relationships
Business to Customer Business to

Consumer Databases Business
5 6
1
12/9/2019
Customer Value-Binding Approaches Types of Customers
Structural Ties, Social Benefits &

Low Frequency High Frequency
Financial Benefits
High Try to get these customers These are your best

Profitability to come more often customers, reward them
Social Benefits & Financial
Benefits These customers follow
Some of these guests have
Low promotions – make sure
the potential to become more
Profitability your promotions make
profitable
money
Financial Benefits
7 8
Traditional Forms of Direct Marketing Digital Direct Marketing Technologies
Direct Mail Mobile Phone

E-Mail
Digital Direct Marketing
Marketing
Kiosk Telephone Podcasts & Technologies Interactive TV
Vodcasts (iTV)
9 10
Online Marketing Domains Setting up an Online Marketing Presence
Placing Ads Creating or

Creating a & Participating
Website Promotions in Social
Online Networks
11 12
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Banners Banner-shaped ads found Consumer to business (C2B) Customer database An organized Direct marketing Direct
at the top, bottom, left, right, or center online marketing Online and collection of comprehensive data about communications with carefully targeted
of a Web page. exchanges in which consumers search individual customers or prospects, individual consumers to obtain an
out sellers, learn about their offers, and including geographic, demographic, immediate response and cultivate
Business to business (B2B) initiate purchases, sometimes even psychographic, and behavioral data. lasting customer relationships.
online marketing Using B2B driving transaction terms.
trading networks, auction sites, spot Data warehouse A central E-commerce The general term for a
exchanges, online product catalogs, Consumer to consumer (C2C) repository of an organization’s buying and selling process that is
barter sites, and other online resources online marketing Online customer information. supported by electronic means,
to reach new customers, serve current exchanges of goods and information primarily the Intranet.
customers more effectively, and obtain between final consumers. Direct-mail marketing Direct
buying effectiveness and better prices. marketing through single mailings that Integrated direct marketing (IDM)
Corporate (or brand) Web site include letters, ads, samples, foldouts, Direct-marketing campaigns that use
Business to consumer (B2C) Web sites that seek to build customer and other “salespeople with wings” sent many vehicles and multiple stages to
online marketing The online selling goodwill and to supplement other sales to prospects on mailing lists. improve response rates and profits.
of goods and services to final channels rather than to sell the
consumers. company’s product directly.
13 14

Internet The vast and burgeoning Online marketing Company efforts Telephone marketing Using the
global web of computer networks with to market products and services and telephone to sell directly to customers.
no central management or ownership. build customer relationships over the
Internet. Viral marketing The Internet
Interstitials Online display ads that version of word-of-mouth marketing—
appear between screen changes on a Pop-unders New windows that Web sites, videos, e-mail messages, or
Web site, especially while a new screen evade pop-up blockers by appearing other marketing events that are so
is loading. behind the page being viewed. infectious that customers will want to
pass them along to friends.
Marketing Web site Web sites Pop-ups Online ads that appear
designed to engage consumers in an suddenly in a new window in front of
interaction that will move them closer to the window being viewed.
a purchase or other marketing
outcome. Search-related ads (or
contextual advertising) Text-based
Online advertising Advertising that ads and links that appear alongside
appears while consumers are surfing search engine results on sites such as
the Web, including display ads, search- Google and Yahoo!.
related ads, online classifieds, and
other forms.
15 16

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12/9/2019

Characteristics of Service Marketing Steps to Reduce Variability

Invest in good hiring

Characteristics Standardize Monitor

Internal Service Interactive

Recommendations for Improving

Service Service Service Customer

Use Part-Time Employees

Tips for Managing Waiting Lines Key Terms

Key Terms (cont.)

Service perishability A major

Learning Objectives (cont.) Microenvironment

Analyzing Competitors Levels of Competitors

Macroenvironments Demographic Trends in the US

Changing Age The Changing

Generations in the US Economic Trends in the US

Changes Economic The Global

Natural Environment Trends in the Political Environment

Increased Legislation and Regulation

Increased Increased Increased Emphasis on Social Responsibility

Cultural Environment Environmental Scanning

Determine Determine How

Analyze Data and

Key Terms Key Terms (cont.)

Key Terms (cont.) Key Terms (cont.)

Marketing Information System Sources of Marketing Information

Guest History Information

Gathering Developing Listening to and Speaking with Guests

Point-of-Sale (POS) Information

Marketing Intelligence Marketing Research

Identifies and Monitors and

Marketing Research Process Marketing Research Objectives

Developing the Research Plan Research Approaches

Designing the Presenting the

Contact Methods Sampling Plan

Personal Online Interview How should When will the

Research Instruments Research Problem Areas

Lack of Qualitative Information

Failing to Look at Segments within a Sample

Failure to Have the Sample Representative of the Population

Key Terms Key Terms (cont.)

Key Terms (cont.)

Primary data Information collected

Sample (1) A segment of a

Cultural Factors Social Factors

Values Perceptions Groups Family

Social Roles Status

Personal Factors Psychological Characteristics

Age & Life- Economic

Perceptual Processes The Buyer Decision Process

Key Terms Key Terms (cont.)

Key Terms (cont.)

Social classes Relatively

Subculture A group of people with

Participants in the Organizational

Complex Users Influencers Deciders

Proposal Supplier Order-Routine Performance

Group Business Markets Key Terms

Key Terms (cont.)

Supplier selection The stage of

Target Marketing Market Segmentation

Market Market Market Geographic Demographic

Demographic Segmentation Behavioral Segmentation