Introduction to Hospitality Marketing and Sales

Question 1

Beginning in the mid-1950s hotels began to change driven by changes in the society around them due to (8 Examples)::

Answer 1

1. Population growth
2. Longer life span
3. Improved incomes
4. Increased leisure time
5. Expanded highway system
6. Development of suburbs
7. Increased air travel
8. Convention center expansion.

Question 2

Marketing and Sales

Answer 2

The success of today’s – and tomorrow’s – hospitality products will be the direct result of combined efforts of highly trained, competent, and innovative sales and marketing professionals who are dedicated to making an impact on the ever-changing, challenging hospitality industry.

Question 3

Marketing

Answer 3

Marketing is the study and management of the exchange process and is broader in scope than sales. It involves research action strategies, advertising, publicity, and sales promotions, as well as a means to monitor the effectiveness of the marketing program.

Question 4

Sales

Answer 4

Consists of direct efforts to sell the property by personal sales calls, telecommunications, and mailings.

Question 5

Marketing Mix (Cycle)

Answer 5

The “four Ps”, Product, Place, Promotion, and Price (controllable variables). Uncontrollable variables include economic environment, political and legal influences, and technology, and the social and cultural environment. For hospitality the “four Ps” were expanded to include Product-Service Mix, Place-Distribution Mix, Promotion-Communication Mix, and Price-Rate Mix.

Question 6

Product-Service

Answer 6

Considered first because without a product the industry has nothing to distribute, promote or price.

Question 7

Place-Distribution

Answer 7

Place-distribution refers to the accessibility of the product to the consumers, i.e. direct and indirect booking channels.

Question 8

Promotion-Communication

Answer 8

Includes publicity, internal sales, media advertising, public relations, word-of-mouth, and direct sales.

Question 9

Price-Rate

Answer 9

Pricing of amenities, services, and goods on Peak, Valley, or Shoulder periods.

Question 10

How do “Marketing Mix Decisions” affect variables?

Answer 10

All elements of the marketing mix are interrelated and a decision with respect to one variable usually affects the other variables of the mix

Question 11

Management’s Role in marketing and Sales

Answer 11

Three key management at the property level, include the General Manager, the Director of Marketing, and the Director of Sales.

Question 12

The (4) Challenges of Hospitality Marketing and Sales

Answer 12

Intangibility, Perishability, Inconsistency, and Inseparability

Question 13

(8) Trends Shaping the Future of Hospitality Marketing and Sales

Answer 13

• Globalization:
• Consolidation (Mergers, Acquisitions, and Joint Ventures)
• Partnership marketing:
• Niche marketing and branding
• Technology
• Environmental awareness
• Guest preferences
• Relationship marketing

Question 14

Globalization

Answer 14

The international consolidation of big businesses and the growing trend for countries to allow the transfer of goods and services across borders.

Question 15

Consolidation (Mergers, Acquisitions, and Joint Ventures)

Answer 15

The combination of two or more corporations to form a new corporation, by purchase, merger, or another ownership transfer. Consolidation reduces the number of companies owning brand hotels.

Question 16

Partnership Marketing

Answer 16

Also known as developing strategic alliances and synergism marketing, it involves two or more firms – ideally serving similar markets with noncompetitive products – joining together to benefit from each other’s strengths.

Question 17

Niche Marketing and Branding

Answer 17

Designing, building, and marketing hospitality products for specific market segments.

Question 18

Relationship Marketing

Answer 18

Marketing that views customers as assets and emphasizes retaining customers by nurturing and sustaining a relationship with them.