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PROVIDING QUALITY CUSTOMER SERVICE

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									PROVIDING QUALITY
CUSTOMER SERVICE
     MARKET KNOWLEDGE
• Individually write the name of your
  favourite hospitality venue – Bar, Café,
  Hotel, Restaurant et al. List the features
  why it is your favourite?
• Write the name of a hospitality venue that
  you like to visit or liked but don’t any more
  – what changed you or the venue?
     MARKET KNOWLEDGE
• MARKETING – What is marketing? And how is it
  different from Selling?

• Why do you market?
• How do you market?
• What does the marketing process involve?
♫ Analyzing marketing opportunities
♫ Selecting target market segments
♫ Developing market mix
♫ Managing the marketing effort
•
                                          MARKETING
    Marketing is not selling or advertising! They are only the tip of the iceberg. Originated in 1950 when the US army found itself
    with excess production capacity – rather to let of staff, they started to lobby industries and people seeking work for their
    personnel and marketing evolved.

•   Evolution of Marketing Concept:
•   Consumer Goods
•   Industrial Mktg
•   Non profit and social Mktg
•   Services Mktg
•   Customer Satisfaction, Global Marketing, Synchronous Marketing – Real Time Marketing

•   Marketing Defined today -
•   No longer Telling and Selling – it is satisfying customer needs and working with customer
•   Whatever method is used, the marketer who does a good job of understanding customer needs, who develops products that
    provide superior value and who prices, distributes and promotes them effectively should find products sells easily
•   It is a social managerial process by which individuals and groups obtain what they need and want through creating and
    exchanging products and value with others.

•   WHY MARKETING?

•   Needs – Human Needs – states of self deprivation
•   Physical – Hunger, Thirst, Clothing, Warmth, Safety
•   Social – belonging, affection
•   Individual Needs – personal growth and self advancement

•   Wants – the form the need takes and is shaped by culture, environment and individual personality
•   E.g. Hungry person in Australia would have a burger with a coke whereas in South Pacific would eat mangoes, suckling pigs or
    beans. Wants basically satisfy needs. As exposure to objects increase, interest and desire increases and producers try to
    provide more want- satisfying products and services
•   People have unlimited wants but limited resources- this creates demand when wants is backed by buying power. A Proton car
    provides the basic satisfaction – transport, set of wheels and economy whilst a Merc provides luxury, status and comfort – in
    other words, people demand products with benefits that add up to their satisfaction
•   Companies do market research, focus groups to analyse what customer’s wants and needs are – this is used in designing
    marketing strategies.
•   A product is something that is offered to the market that satisfies the needs or wants of consumer.
                                   MARKETING
•   Tangible vs. Intangible products?
•   Pay attention to benefit of product or solution it provides rather than product itself – E.g. drill – it
    provides solution in making a hole but seller may think that all the customer wants is a drill – this is
    MARKETING MYOPIA

•   Customer Value - difference between cost of product and the values the customer gains by using
    and owning the product
•   Customer Satisfaction – difference between perceived performance to actual performance of
    product – Motorola’s definition of customer dissatisfaction – if a customer does not like a product,
    then the product has a defect in it. TQM – as the totality of features and characteristics of a product
    or service that bear on its ability to satisfy customer needs. Quality begins with customer needs
    and ends with customer satisfaction

•   Exchange – act of obtaining a desired object from someone by offering something in return
•   It is a core concept of marketing – Why – Two parties involved and participate, each has something
    of value to gain from each other. Communication is a key part of exchange process.

•   Transaction is a unit of measurement in marketing – E.g. buying a TV for $ xxx from Harvey
    Norman – Not all transactions involve money. A political candidate may buy a persons vote. It is
    actions taken to obtain a desired response from a target audience towards a product, service, idea
    etc.

•   Relationship Marketing – building loyalty and long term relationships – going beyond the
    transaction and exchange – Marketing today has shifted from maximising profit to maximising
    mutually beneficial relationships with customers. – Profits automatically follow
       WHAT IS A MARKET
• Olden days – stood for a place where
  sellers and buyers gathered to exchange
  goods.
• Economists definition – the set of all actual
  and potential buyers of a product
             MARKETING
• Target Consumers – Understand the needs and
  wants of customers – what is need Vs want –
  NEED – Shaped by human needs E.g. Clothing,
  Hunger, Safety etc – WANT - is something that
  the human using his maturity and availability
  applies to satisfy the need – E.g. Hamburger
• Wants creates demand which in turn creates
  products
         WHY MARKETING
• In groups of five, identify five key points
  why marketing is important to business?
• What benefits do we get from marketing?
• Think of a recent marketing campaign that
  you saw or heard – what was good about
  it, why do you remember it and will you
  purchase the product?
            CASE STUDY Q’s
1. Why might Coca – Cola, or its franchise bottlers want to
     know how many ice cubes consumers place in their
     glass of cola?
2. 2. . If Hoover measures how long it takes to vacuum
     the house and how much dirt is picked up, how might
     the company use such information?
3. . Could marketing company collect too much information
     on the markets for its products and services?
4. Why might parents today be influenced greatly by their
     children? Is this different from past generations?
      LESSON OUTLINE –
       WED 18 MARCH
    1. Case Study discussion
2. Measuring & forecasting demand
      3. Market Segmenting
          4. Case Study
       5. Market Targeting
      6. Market Positioning
•   Strategies – linked to business goals
•   Consumer Analysis – Awareness that it
    is impossible to satisfy all customers
•   Design strategies for profitability to these
    chosen segments
          Market Oriented Business Definitions
        Company     Product Oriented            Market Oriented
                       Definition                 Definition
Poppy               We make lipsticks        We sell lifestyle and self
                                             expression; success and
                                             status;
Sea World           We run a theme park      We provide fun and
                                             entertainment
K Mart              We run discount stores   We offer products and
                                             services that deliver value
                                             to middle Australians
Xerox               We make copying, fax     We make business more
                    and other office         productive
                    machines
Hotel ABC           We offer a room with     We ensure that our guests
                    food & beverage          have a wholesome
                                             experience – a home
                                             away from home
                  MARKET STRATEGY
Depending on strategy adopted and outcome needed marketing
                      strategy may include:
1.   Increase Market Share – more sales to present customers without
     change in product
2.   Market Development – increase and develop new markets for
     existing product
3.   Product Development – modify or introduce new products to
     current markets – in hotels ? Kraft for instance can launch new
     sizes, new packaging, or change product content e.g. cholesterol
     free products
4.   Diversification – Looking at promoting company by starting up or
     acquiring products or businesses outside the current products or
     markets e.g. – Marriott, Four Seasons
   MARKET SEGMENTATION
• MARKET SEGMENTATION
Dividing a market into direct groups of buyers with
    different needs, characteristics or behaviors
• Group consumers on geographic factors
    (countries, regions, cities), demographic
    factors ( age, sex, income, education ..),
    psychographic factors ( social classes, life
    styles) & behavioral factors ( frequency of
    purchases, benefits sought, usage rates ..).
• A Market Segment for a product is
    consumers who respond in a particular way to
    a given set of marketing efforts/stimulus.
  WHAT IS A TYPICAL MARKET TARGET FOR MCDONALDS?
         HOTEL’S PRODUCTS/
             MARKETS
•    WHAT ARE SOME OF THE PRODUCTS/SERVICES
     THAT THE FOLLOWING OFFER?
•    WHAT/WHO ARE THEIR TARGET MARKETS?
1.   FIVE STAR HOTEL
2.   COUNTRY MOTELS
3.   BACKPACKER MOTELS
4.   BED & BREAKFAST ACCOMMODATION
5.   MEETING AND CONVENTION VENUES
6.   CAFES
7.   RESTAURANTS
8.   BARS
      MARKET SEGMENTS IN
           HOTELS
•   INDIVIDUAL TRAVELLERS
•   TOUR GROUPS OR HOLIDAYS
•   DOMESTIC VISITORS
•   FAMILIES
•   BACK PACKERS
•   CORPORATES
•   CONFERENCE & EVENTS
         TARGET MARKETING
•    How to measure demand & forecast –
1.   Estimate current and future size of market ( look at
     competing products, estimate their sales – can the
     market sustain another product)
2.   Growth of market – age, income groups, nationalities,
     economic forecasts, lifestyle changes etc. E.g. – Kids
     clothing is related to projected birthrates, projected
     lifestyles – some companies have market information
     specialists who use complex techniques to measure
     and forecast demand- Roy Morgan PDF
MARKETING SEGMENTATION
Evaluating each market segments attractiveness and then
    selecting 1 or 2 market segments to enter
•   Critical that segments targeted can generate greater
    customer value and sustain it over time
•   Some new products usually target one segment and
    add segments as they progress eventually seeking full
    market coverage E.g. GM – ‘Car for every person,
    purse and personality’.
•   A new hotel might target locals and interstate visitors
    initially along with corporates and conferences and
    then target the inbound market eventually – WHY?
     SEGMENT Vs TARGET
• Target (category with similar
  characteristics and buying habits)–
  Age ( 21 – 35 years), Type of people
  (Japanese), Living in WA etc

• Segment (customers with similar traits,
  needs & wants)–E.g. DINK’s, Japanese
  Inbound( Schools, Travellers, Low Income
  Japs Vs High Income Japs etc)……
            CASE STUDY
• In groups go through the case study and
  find out answers to the questions 1 & 2
• Time 15 Minutes

								
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