Chapter 2
Action Plans:
The specific steps taken to achieve marketing objectives.
Business mix:
The variety or mixture of guests who stay at a property. For instance, business may consist of 20% association meetings, 15 percent corporate meetings, 15 percent SMERF groups, 40 percent leisure travelers and 10 percent transient guests. Also called customer mix.
Business and trend summaries:
Reports that assess the property’s current position in the marketplace by examining the property’s sales history and current guest base. Part of the property analysis.
Competition analysis:
An evaluation of competition in order to indentify their strengths and weaknesses in comparison to your own. Part of the market research step.
Competitive set:
A group of properties that are the most important competition for a hotel in a given market.
Consumer research:
Marketing research aimed at providing a profile of present and future guests.
Geographic origin study:
Research identifying key feeder cities and the zip codes from which guests are generated. Part of the business status and trends summaries.
Marketing:
The practice of combining, blending, integrating, and controlling the factors that influence sales.
Marketing mix:
The combination of the four “Ps” of marketing- product, price, place, and promotion- used to achieve marketing objectives for a target market.
Marketing plan:
A written guide detailing sales, advertising and promotion programs used to attract business to the property’s revenue centers.
Marketplace analysis:
An evaluation of the environment in which the property operates. Asses both opportunities and problems in the marketplace, and determines how they impact the property. Part of the market research step.
Positioning:
A strategy to develop the product and service as distinct in the minds of consumers. Positioning attempts to distinguish a firm from any of its competitors.
Property Analysis:
An evaluation of a business’ facilities, services and programs to determine strength and weakness. Part of the market research step.
Revenue center:
A hotel division or department that sells products or services to guests, thereby directly generating revenue for the hotel. Also called profit centers, these may include food and beverage outlets, room service, retail stores, recreational facilities and other services, such as laundry services and valet parking.
Sales:
Direct effort through face to face calls, telephone calls and mailings. Segment profitability- The profitability of a particular type of consumer or market segment. Determined by analyzing the revenues generated through the sale of products and services to that type off consumer or segment.
1. What is the difference between sales and marketing? The difference between sales and marketing is marketing is strategic and directive. It is goal-oriented. Marketing focuses on market analysis, planning and control of changing market variables. It focuses on long-term trends and creating new products, and strategies for future growth. Also, it focuses on profit planning, such as determining the optimum market segment mix. On the contrary, sales focuses on field work and desk work to sell to the customer. It also focuses on today’s products, markets, consumers, strategies, volumes, quotes, and current sales, bonuses, and commissions.
2. What should the marketing plan should cover what time frame? The marketing plan should cover a three-year period to be most effective. However, a three-year period may be broken down into yearly segments with specific goals for each time period.
3. List the four steps in developing a marketing plan. The four steps in developing a marketing plan are conducting market research, selecting target markets and positioning the property, establishing objectives and action plans, and reviewing and monitoring the marketing plan.
4. Research should be conducted in what areas before developing action plans? Researchers should gather research information so they can conduct a property analysis, competition analysis, and a marketplace analysis. A property analysis involves an honest appraisal of exactly what a property has to offer. For a competition analysis, it is important to know your competitors and evaluate their strengths and weaknesses in comparison to your own, and it should be done at least quarterly. A marketplace analysis evaluates the environment in which the property operates and the property’s operating status in that environment. These are very important aspects to look at before developing action plans.
5. What factors should be considered when selecting target markets? The first step you should consider when selecting target markets is to target groups you are already serving. Next, chart the number of room nights you are currently selling to each market segment by month. Also, target markets that would be the most profitable to your hotel not only in terms of room revenue but additional revenue from such sources as meeting space, food and beverage and other property profit centers.
6. What is meant by zero-based budgeting? Zero based budgeting is a method of allocating money. It is based on a task method; money is budgeted at levels to get the job done, but each expenditure must be justified. It is analyzed on the basis that it will yield more favorable results that spending the amount in another way. It can only be completed after an action plan has been developed.