Basic Marketing Concepts

Unit Essential Question

What is Hospitality What is Hospitality Marketing?Marketing?

Essential Question 1

What functions are What functions are involved in the involved in the marketing process?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

5 P’s of Marketing

ProductPlace

Promotion

Price

People

Functions of MarketingMarketing Information Management

Gathering, recording, analyzing, and disseminating information to aid in making marketing decisions.

Functions of MarketingFinancing

– Determining the need for and availability of financial resources to aid in marketing activities and stay in business.

Functions of MarketingPricing

– The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.

Functions of MarketingPromotion

– Communicates information about products, services, images, or ideas to customers or clients to influence their purchase behavior.

Functions of MarketingProduct/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 MarketingDistribution

– The physical movement of a good or service.

– Deciding where and to what extent to sell a good or service.

Functions of MarketingSelling

– Responding to consumers needs and wants through planned, personalized communications intended to influence purchase decisions.

Essential Question 2

What competitive What competitive techniques are used techniques are used in hotel marketing?in hotel marketing?

Target Marketing Focuses all marketing decisions on the

specific group of people who share similar characteristics you want to reach.

Target Marketing

Target MarketingUnderstanding 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 MarketingServices 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 HotelsAmenities

– Services or items offered to guests for convenience and comfort.

– Some amenities include:

Essential Question 3

Why is travel and Why is travel and tourism critical to tourism critical to the U.S. economy?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 TourismDomestic 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 What are the differences between the front-of-the-house between the front-of-the-house and the back-of-the-house and the back-of-the-house operations in a hotel or operations in a hotel or restaurant?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.