Basic Marketing Concepts Unit Essential Question What is Hospitality Marketing? Essential Question 1 What functions are involved in the marketing process? Marketing is.
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Basic Marketing Concepts Unit Essential Question What is Hospitality Marketing? Essential Question 1 What functions are involved in the marketing process? Marketing is. . . The process of developing, promoting, and distributing products in order to satisfy customers needs and wants as well as the company involved. Products – Goods – Services The Marketing Mix Product Place Price Promotion People Functions of Marketing Marketing Information Management Gathering, recording, analyzing, and disseminating information to aid in making marketing decisions. Functions of Marketing Financing – Determining the need for and availability of financial resources to aid in marketing activities and stay in business. Functions of Marketing Pricing – The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service. Functions of Marketing Promotion – Communicates information about products, services, images, or ideas to customers or clients to influence their purchase behavior. Functions of Marketing Product/Service Management – The process of creating a product in response to market opportunities. – Managing marketing activities to optimize the relationships of potential loss to gain. Functions of Marketing Distribution – The physical movement of a good or service. – Deciding where and to what extent to sell a good or service. Functions of Marketing Selling – Responding to consumers needs and wants through planned, personalized communications intended to influence purchase decisions. Essential Question 2 What competitive techniques are used in hotel marketing? Target Marketing Target Marketing Focuses all marketing decisions on the specific group of people who share similar characteristics you want to reach. Target Marketing Understanding the Customer – In order to compete, a lodging establishment must know what its customers want. Demographics – Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc. Target Marketing Services With A Smile Service Marketing – Providing intangible products. – Hotels, restaurants, and airlines conduct extensive training to motivate employees to provide exemplary levels of service. Plugged-in Hotels Amenities – Services or items offered to guests for convenience and comfort. – Some amenities include: Essential Question 3 Why is travel and tourism critical to the U.S. economy? The Financial Impact of Travel and Tourism Travel and Tourism is the largest services export industry in the nation. Travel and Tourism is the second largest industry in the state of Georgia. The Financial Impact of Travel and Tourism $582 billion annually is spent on travel and tourism. The industry employs over 18 million Americans. $159 billion in payroll income annually is generated. The Financial Impact of Travel and Tourism Besides the direct impact to restaurants and hotels, travel and tourism indirectly impacts: – – – – Shopping Entertainment Airplane manufactures Kitchen and maintenance suppliers and manufactures – Software developers – Many others The Financial Impact of Travel and Tourism Growth In Travel and Tourism Domestic Travel – Travel within a country by its own citizens. – Impact of travel: U.S. travelers spend $81.4 billion abroad. Foreign travelers spend $95.6 billion in the U.S. This results in a 14.2 billion travel trade surplus. The Financial Impact of Travel and Tourism Travel and tourism creates and supports jobs; provides a travel trade surplus; and generates tax local, state and federal tax revenue. The Nature of the Hospitality Marketing Industry Management – – – – – – – – Opportunities General managers Front office managers Executive housekeepers Food and beverage managers Sales directors Human resource managers Operations managers Financial managers Essential Question 4 What are the differences between the front-of-the-house and the back-of-the-house operations in a hotel or restaurant? The Nature of the Hospitality Marketing Industry A House Divided – A typical restaurant or hotel has two divisions: Front of the House – Involves any area in which the general public or hotel guest has access. Back of the House – Those areas not usually seen or frequented by a guest or patron. The Nature of the Hospitality Marketing Industry Departments in the front and back of the house are interdependent. Both must function properly while at the same time assisting each other to ensure the success of the business.