HOSPITALITY SALES AND

MARKETING
Topic:
Marketing Strategy &
Planning

What is Marketing?

It consist with
research, action ,
strategies advertising,
publicity, sales and
promotion.

Is the study and

management of
the exchange
process.

It involves the things

that the property will
do to select a target
market and stimulate
or alter that market
demand for the
property services.

What
is
Sales
?
Sales consists of direct
efforts to sell the
property by personal
sales, calls,
telecommunication &
mailings

The
Marketing
Mix

Place

Promotion

Product

Price

PRODUCT
A product is seen as an item that satisfies
what a consumer demands. It is a
tangible good or an intangible service.
Tangible products are those that have an
independent physical existence.
Example: food.

When an organization is considering

introducing a product into a market, they
should ask themselves the following questions:
Who is the product aimed at?
What benefit will customers expect from it?
What will be its advantage over competitor
products? Or its unique selling point?
How does the firm plan to Position the product
within the market?

PRICE
The amount a customer pays for the product.
The price is very important as it determines the
company's profit and hence, survival.
Adjusting the price has a profound impact on
the marketing strategy, and depending on
the price elasticity of the product, often it will
affect the demand and sales as well.
The marketer should set a price that
complements the other elements of the
marketing mix
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A product is only worth as much as people

are prepared to pay for it. The target
market are prepared to pay for the
products/services depends on product
features and the target market's budget.
You will also need to consider competitor
pricing and factors within your marketing
environment.

PROMOTION
A successful product or service means nothing
unless the benefit of such a service can be
communicated clearly to the target market.
Promotion is any activity to raise awareness of a
product or to encourage customers to purchase a
product.
All of the methods of communication that a
marketer may use to provide information to
different parties about the product.
Promotion comprises elements such as:
advertising, public relations, sales
organization and sales promotion.
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Advertising covers any communication that is paid

for, from cinema commercials, radio and Internet
advertisements through print media and billboards.
Public relations is where the communication is not
directly paid for and includes press releases,
sponsorship deals, exhibitions, conferences, seminars
or trade fairs and events.
Word-of-mouth is any apparently informal
communication about the product by ordinary
individuals, satisfied customers or people specifically
engaged to create word of mouth momentum. Sales
staff often plays an important role in word of mouth
and public relations

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PLACE

The place element of the marketing place is about

where the product is made, where is it stored and
how is it transported to the customer.
The place for each of these things should ensure that
the product gets to the right place at the right time
without damage or loss.
The ideal place will be :
convenient for the customer and the business
Accessible for the customer
Low cost or free for the customer
Reasonable cost to the business
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THE MARKETING PLAN

It is a guide for marketing, sales, Advertising and

promotional efforts.
Normally marketing plan has to develop for at least
three year period
It forces Managers to think ahead and make better
use of the propertys resources
Sets responsibilities and coordinates and unifies
efforts to reach the propertys sales goals
Creates an awareness of problems and obstacles
Ensure that sales promotions and advertising are not
wasted because of misdirected efforts

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STEPS OF MARKETING PLAN

STEP 01 : Conducting a Marketing Audit

The foundation of any marketing plan is the
marketing audit. Marketing audit is the research
steps in the planning process, and is some time
referred to as gathering marketing intelligence.
STEP 02 : Selecting Profitable Target Markets
Market segmentation: Dividing the market into
groups of consumers with similar needs, wants,
backgrounds, incomes, buying habits, and so
on.
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STEP 03 : Positioning the property

Positioning: A marketing term used to describe the
process of shaping how consumers perceive the products
and services offered by a particular hotel or restaurant in
relation to similar products and services offered by
competitors.
Positioning is not simply advertising.
A property s is composed of the hospitality it offers and
the managers and marketers ability to create unique
selling points based on the property location internal or
external features personnel.
Without positioning it is impossible to determine what the
property has to offer, where the property is going and how
it will get there etc.
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STEP 04 : Establishing Objectives and Action Plan

Once the market audit is completed, the target market
segments identified and the positioning established, the
next step in the marketing plan is to establish specific
marketing objectives.
This is one of the most difficult steps in the planning
process because it involves establishing goals for each
market segment.
Marketing objectives should be simple should be set for
each market segment, revenue centre and revenue
producing service like outsource laundry facilities.
Marketing objective should be - In writing Understandable - Realistic and challenging - Specific and
measurable

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STEP 05 : Monitoring and Evaluating the Market Plan

The marketing plan should be review periodically so that
corrective action can be taken through out the planning
cycle.
If action plans are effective and objectives are realized
within establish budget limits, corrective action need not
be a part of the process. But it is painful fact that some
strategies do not work.
If hotel sales goals are not being met the problem can
often be traced to one or more of the following reasons Lack of responsibility - Lack of communication - Lack of
time - Lack of authority - Lack of appeal - Lack of control Lack of realistic goals

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GETTING TO KNOW THE MARKET

Geographic

Where do your customers come from

How far do they travel

Demographic

What are their characteristics

Psychographic

Self-image and lifestyle

Gender, age, education, occupation, income etc.

What do they value

Behavioristic

For business, special occasion, loyalty

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THE MARKETING PROCESS

What to offer?

To whom to offer?

What is the strategy for distribution?

Creating awareness

Target Market

At what price?

Product category

Through what channels?

Retaining Customers.

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WHO ARE THE TARGETED MARKET?

Frequent

Business Travelers
Individual Traveler
Group Traveler
Families
Seniors (aged above 55 years old)
Baby Boomers (people who are born in
US between the year of 1946 & 1964)
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TARGETED SEGMENTS

Airlines

Business Travel

Refers to individuals that travel separate from

associations. This market travel for a variety of
reasons and lodging needs will change

Entertainment

Business partners and revenue source -$185 billion

industry

Movies, theaters, production crews

Government

$20 billion a year segment with fixed stipends

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HOW TO REACH THE TARGETED MARKET : BY

ADVERTISING
Why

Advertise?
Hospitality firms advertise for a number of
reasons.
- Advertising reaches a vast audience.
- Advertising is relatively inexpensive
- Advertising prompts audience response
- Advertising demonstrates
competitiveness
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TYPES OF ADVERTISING

PRINT ADVERTISING :
Print advertising media include news papers,
magazines, and directories. News papers are
used by the hospitality industry more than other
advertising mediums for a number of reasons. High leadership - Flexibility - Low advertising
rates
Magazines are an excellent advertising option,
since many consumer and trade magazines
target specific leader ship. Other advantages
include - production quality - wider scope - long
life

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BROAD CAST ELECTRONIC ADVERTSING :

Both broad cast and high Tec electronic
advertising media have the potential of
reaching large no of consumers at one time.
Different methods of Electronic Advertising :
1. Radio
2. Television
3. Video
4. Internet
5. CD ROMs
6. Fax
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OUTDOOR ADVERTISING :
Methods of out door advertising
- Signs : can be a simple as a painted board
or as standing board with the atmosphere of
the place.
- Bill board Signs appear on the grounds of
the hotel or restaurant, but billboard
advertisement are placed away from the
property at strategic location on well
traveled streets and highways
- Displays can be used both in house and off
property to promote products and services.
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 ALTERNATIVE

MEDIA ADVERTISING

:
Movie theater advertising
Sponsor ship advertising
In flight advertising
Insert in billings
High flying advertising
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SCENARIO: SHERATON HOTEL

Sheraton Hotels and resorts is a Starwood
brand and its the world largest and oldest
brand.
The Sheraton hotel brand has been open for
more than 70 years, with more than 800
hotel and resorts.

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TYPES OF PROMOTIONS SHERATON USES:

Open Promotions : Next time if the guest
stay on the weekend, they will get 20% off
for their rooms.
Closed Promotions : The guest can get
free breakfast or dinner for a certain
amount.
Produce a new product / service.
Reward a free night stay.
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HOW SHERATON GET THEIR BUSINESS NOTICE:

Advertising : Sending out emails to future,
present and past guest.
Sending mails to the area with coupons.
Personalize letters.
Handling out brochures to local business to
give out to the customers.

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THANK YOU !
QUESTIONS?

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