“ENTREP reviewer”

ELEMENT: 2
2.1

QUALITY CUSTOMER SERVICE

 It is a fundamental aspect of all hospitality business, whether budget or luxury.
 It is about ensuring customers leave your premises pleased with the experience they received.

THE CUSTOMER
 A person on the receiving end of what the business offers.
 Someone who is willing to pay a fair price for a quality product and wants to be neither over-charged nor
under-served.
 Is not dependent on us, we are dependent on them.
 Is not interruption to our work; they are the sole reason for it.

MARKET SEGMENTATION
 It provides you with a much more detailed and accurate description of the market place.
GENERIC MARKET SEGMENTS
 Types of potential target market is limitless . Each organization will break down the potential market to suit
their needs and the help identify the potential of each group.
 AGE- infants, children, teenagers, mature adults, senior citizens.
 SOCIAL BACKGROUND - Ranges from the upper crust of society to people of more modest upbringing.
 ECOMIC BACKGROUND - High income earners through middles to low income learners.
 CULTURAL BACKGROUND - Variety of religious beliefs and customs.
 SPECIAL INTERISTS - Purpose for their holiday, sporting interest, athletes.
 PHYSICAL and MENTAL ABILITIES - These people may have a physical or cognitive limitation.
 DIETARY NEEDS - Any group within the community, including those with particular nutritional.
HOSPITALITY MARKET SEGMENTS
1. Business
2. Leisure - this market is travelling for relaxation purposes
3. Religious - this market is travelling to participate in a pilgrimage or religious celebration.
4. Sporting - this market is travelling to participate in sporting event, tours or competitions.
TOURISM MARKET SEGMENTS
 OUTBOUND TOURISTS - A tourist is where a local tourist goes to a region away from where they reside and
where the business is.
 INBOUND TOURIST - A tourist is where a tourist from another location comes into your region.
 DOMESTIC TOURIST - A tourist who travel within a country.
 INTERNATIONAL TOURIST - A tourist who travels to or from another country.
 TARGET MARKET SEGMENTS
 Are identified to understand they are going to receive “ value” from our offering.
 TARGET MARKETS
 Describes a group that your have identified whose needs and wants are similar, and who you have decided
you want to service.
2.2 Analyse market competition
 WHAT IS MARKET ANALYIS?
 Provides us with the information necessary to understand what can cause changes in our operational
environment.
 MARKET ANALYSIS
 Is a fairly generic term that describes an activity that we are constantly conducting in order to target the
right person with the right product or service at the right time.
 USP means “UNIQUE SELLING POINTS”
 USP - Is something your store offers that no-one else does.

 CURRENT MARKET SITUATION

 Is normally drawn from a database of information that the organization constantly updates.
 This includes information on the market, product, competition, current strategies and macro- environment.

 MARKET SITUATION
 Total market characteristics
 Customer needs, perceptions and buying behavior
 Products
 Customer service and distribution
 Channels
 Communication

 COMPETITIVE SITUATION
 Industry structure
 The geographic market
 Their current marketing performance
 Their competitive positive
 Strengths and weaknesses, and vulnerabilities
 Their objectives and competitive strategies
 Industry profitability

 PRODUCT SITUATION
 For each product/ service should that the organization offers, sales, profits, contribution margins and
growth should be displayed.
 Product lifecycle and expected demand over the product’s life should be considered.
 Growth of the product/service should be constrasted to total market growth.

 SITUATION ANALYSIS
 Most business undertake a SWOT analysis to gain an understanding of what is happening both and internal
to the business and the affect it will have on the business.
I. STRENGHTS and WEAKNESSES - in the internal structure, operations and ability or capacity may appear in
terms of:
 Finance
 Production
 Marketing
 Personnel
 Others
II. OPPORTUNITIES and THREATS - that may externally face the organisation can include:
 Competition
 Competitors State of the economy
 Government policy
 Technology
 Suppliers
 Other
EXTERNAL ENVIRONMENT
 Refers to the area outside the business over which the venue has little or no control.

External Environment impacts include:

 CHANGES IN THE COMPETITIVE ENVIRONMENT
 Competitors introduce new services and facilities, the nature of our industry is such that we are are often
forced to respond and match their offerings or introduce something else in opposition to it.
 ECONOMIC CLIMATE
 Monitoring the media and discussion with our finance facility will help identify the state of the economy.

 TRENDS IN CUSTOMER PREFERENCES

 Whether we lead the pack or follow the opposite ( or a combination of the two ), we must respond to
customer preferences.

 ADVENT OF E-BUSINESS
 More and more people are using the “Net” to access information and make bookings.
 We also need to exploit the opportunities this medium presents for reservations and various other activity
such as retail sales ( internet sales), take-away sales, a forum for questions and feedback and a platform for
information dissemination.

 MARKETS
 Are complex and rapidly changing with new and more complex customer demands, products and services.

 ENVIRONMENTAL ISSUES
 The demand for quality in the outer environment will place greater demands on how companies conduct
their business, which sources of energy they use, and how they design their products.
 TECHNOLOGY DEVELOPMENT
 Has played a key role in the structural changes in the service sector.
TECHNOLOGY- has also impacted on operational service delivery via computerized reservation system, online
reservations, hand-held ordering systems in restaurants, bar code scanning and the growing trend for customers
to do their own checkout and payment after selecting goods.

 ANALYSIS OF INTERNAL ENVIRONMENT

 INTERNAL ENVIRONMENT - Is the environment within the business.

Possible reasons for change coming from within the internal environment could include, but are not limited to:
 Substandard products
 Equipment
 Marketing
 Staffing
 Recruitment
 Training
 Management
 Financial support
 Changes in management style
 Organizational restructures

 SWOT ANALYSIS
 A summary of your audit and should be covered in one page.
STRENGHTS
 Location close to main highway.
 Excellent customer service
 Includes bed and breakfast.
 Canoeing, bush walking, yoga.
 Strong reputation quality.
 good word of mouth.
 Packaging include combination meats/activities, discounts during summer.
WEAKNESSES
 Prices non-competitive during peak period.
 Business seasonal.
 Limited capital
 Lack of control of restaurant.

OPPORTUNITIES
 Increasing leisure.
 Increase in stress and anxiety.
 Renewed concern for peace and nature.
 Increasing number of business.
 Convention held away from city
 Increasing desire to escape from suburban life.
 More people travelling on weekends.

THREATS
 Competition situated geography closely.
 Pricing in peak season of competition cheaper.
 Limited financial lending.
 Competition has years of experience.
2.3 New products and Services are identified.

 The products/service offering is combined to meet customer needs and consists of the following elements:
 A tangible product/products
 Environment
 Services

 Most PRODUCTS in the hospitality industry are combinations of tangible and intangible elements.
FOOD AND BEVERAGES - provided by the establishment are tangible elements.
FRIENDLY OR EFFICIENT SERVICE - is an intangible elements.
GAMING MACHINE - provided at a casino are tangible entertainment.
THRILL OR DREAM OF WINNING - is intangible.

 PRODUCTS CHARACTERISTICS
What is Product?
 The need- satisfying offering of a firm.
 Customers buy benefits, not features.
 Customers do not buy products for their own sake but rather to solve problems or enhance their lives.
 The product should only developed after a need has been identified and a target market chosen to serve.
 Products decisions include quality, warranty, features, brand name, packaging and labelling, product line
decisions and product positioning.
 TYPES OF HOSPITALITY PRODUCTS
 Guest room
 Bathroom
 Hotel facilities
 Services
SERVICE - any activity or benefit that one party can offer the other which is essentially intangible and does not
result in the ownership of anything.
- is a deed performed by one party for another and the customer generally cannot keep it.
- is used, consumed and experienced all at once.

 Pure services are activities or benefits CHARACTERIZED by:

1. INTANGIBILITY
 It is not physical goods that you can see, it becomes more difficult to know exactly what you are buying.
 When provided with a service, the customer cannot keep it.
 It is experienced, used and consumed all at once.

2. INSEPARABILITY
 Goods are usually produced, stored and then consumed, whereas services are produced and consumed in
the same place and same time.
 Sometimes called the “ moment of truth “
3. PERISHABILITY
 A product not sold today can be stored and sold tomorrow with little additional cost incurred.

4. VARIABILITY
 With a manufactured product, quality control can be built into the production process.
 Service products vary because: services are people based and employee performance varies.
 TYPES OF HOSPITALITY SERVICES.
Some example of services provided by hotels, as a minimum, include:
 24- hour Concierge
 Valet parking
 24- hour room service
 Signature gift and sundry shop
 Daily newspaper delivery
 Business services
 Laundry and dry cleaning services
 Complimentary shoeshine service
 Limousine and rental car service
 Car detailing
 Local tours
 Interpretation services
 Travel agent services
 Restaurant and theatre bookings.