302 Glossary Terms Sales & Marketing 6 pages

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Glossary Sales & Marketing
Ad Hoc Group A tour group of customers, headed for a specific destination, that stays en-route at a hotel overnight. The en-route stay is a stopover and not part of the reason for the tour. Account Management System Methodology for managing customer accounts in a sales office. Airline Market Housing of airline employees and crew members by a hotel on a contractual basis, normally over a period of at least one year. Also known as “base business”. Area Of Dominant Influence ( ADI) Specific geographic population bases determined by television audience but also used by newspaper & magazine media for distribution coverage. Atmospherics In a positive sense, the conscious designing of a concept to create certain effects in buyers, the effort to design buying environments to produce specific emotional effects In the buyer that will enhance purchase probability. May also be negative. Attitudes Affective component of the belief-attitude-behaviour triad; emotional responses toward beliefs. Augmented Product The totality of all benefits received or experienced by the customer when purchasing the product. The Average Room Rate (ARR) The method to track the spending habits of room customers, derived by dividing the total money collected for room rent on a given day by the number of rooms sold; also Called “Average Daily Rate” (ADR). Establishments may or may not include complimentary rooms, out-of-order rooms and day use rooms in the calculation. Behavioural Differences The ways in which one segment (customer) behaves differently from another. Can lead to conflict among segments. Belief Something we think is fact about an object, for whatever reason or derivation. A belief is cognitive. Benefits Serve the needs and wants of the consumer, what a feature can do for the customer, the reason that a customer needs or uses the feature or product. Bimodal or Strongly-Skewed Life Cycle

Oriental Hospitality Consultants – Two possible configurations of the product life cycle when it does not always follow a bell-shaped curve.

Break-Even Pricing Pricing to cover at least fixed costs beyond variable cost per unit. Business Purpose To create and keep a customer Business Traveller Customer who utilizes a hospitality product because of a need to conduct business in the particular destination. This person usually travels alone or with a limited number of individuals. Business Center A service offered by the hotel that includes some of the following: fax, secretarial services, copiers, conference rooms, computer, e-mail, scanning, shipping, etc. Cannibalized Market An offering by the same company of a similar product to the same customer in the same market; giving the customer an alternative to the existing hotel or restaurant , Under the same ownership, when a customer gained is also a customer lost. Cash Flow Pricing A strategy to maximize short-run revenues to generate cash. Catering Sales Person Handles meetings, banquet and social events (weddings) that require few sleeping rooms. Channels Of Distribution The means used to get the product to the customer, it means often means creating awareness and availability in order to get the customer to the product, often through other entities. Close Gaining a verbal or written commitment from the the customer. Closed Probe A communications method used during a sales call to direct customers who may not be aware of their needs or cannot express those needs well. Closing The customer makes a commitment to buy. Cognitive Dissonance A theory that recognizes a customer’s potential uncertainty after the purchase decision Has been made. A customer may believe that his/her choice of product was wrong, incorrect or a mistake. Collateral

Oriental Hospitality Consultants – A term used in advertising which can include: brochures, fliers, cocktail napkins, matchboxes, mouse pad, pens ands other promotional materials. Communication Mix The variety of methods used to tell the customer about the product, including advertising, merchandising, promotions, public relations and direct selling.

Communication Strategy The purpose , or desired effect of the communication to the marketplace before it has been decided how to say it. Comparative Group A target market that a customer may try to emulate. For example teenagers may consider a rock band as a comparative group and make their product choices accordingly. Compensatory Models The purchase decision model that assumes the willingness to trade one feature for another in order to make the buy decision. Competitive Intelligence Includes information-gathering beyond industry statistics and trade gossip and involves close observation of competitors to learn what they do and why they do it. Competitive Strategy The firm chooses its competition and when and where it will compete. The firm then targets all its marketing forces towards the identified competitors. Conceptitis A word we have coined to describe those people who are with total immersion in design with little or no regard for how the customer will use the product. Conjunctive Model Consumers might establish a minimum acceptable level for each important product Attribute and make a choice only if each attribute equals or exceeds the minimum level. Consortium A loosely knit group of independently owned and managed hotels ( or other companies such as travel agencies ) Construct Validity Measuring what you think you are measuring, ensuring the behaviour pattern being measured is actually significant to the customer’s buy decision. Consumer Demand Consists of the existing, latent and incipient demand of customers having a need for a Specific product. Contribution Margin Pricing

Oriental Hospitality Consultants – A version of mark-up pricing that can be used to price a product. A margin is assigned to an offering above the variable cost to establish the price. The contribution is to fixed cost after the variable cost has been covered, even when there is no absolute profit. Control The feedback loop of the marketing system, which includes research and marketing intelligence that tells if the system is working right. Core Product What the customer is really buying, often abstract and intangible attributes.

Cost Percentage Or Mark-up Pricing Favoured by the restaurant industry, this method features either a dollar mark-up or the variable ingredient cost of the item, a percentage mark-up based on the desired ingredient cost percentage or a combination of both. Cost-Plus-Pricing Establishing the total cost of a product, including overhead, plus a predetermined gross profit margin. Cottage Industries Small companies and businesses supply a major product offering and/or sell directly to the customer. Customized Product The design of a product to fit the specific needs of a particular target market. Data Collection – External The assembling of information from environmental sources – such as currency rates, international, terrorism, population growth, demographics and so on, that may indicate trends that effect the purchase decision of the customer. Data Collection – Internal The assembling of information within the context of the hospitality establishment – such as average room rate, menu preferences and so on, that may indicate trends that effect the purchase decision of customers. Data Collection - Primary The assembling of information directly from the customer, as in consumer research. Data Collection – Secondary The assembling of information from other sources that have collected it for another purpose. Demand Analysis The assembling of a market to determine whether it is ready, willing and able to buy a specific product. Demographic Segmentation Customer definition based on geographic location, income, race, nationality and so on.

Oriental Hospitality Consultants – Descriptive Data Information that tells us who and what, but not why. Descriptive Quantitative Research Research that tells us how many, how often and what percentage, such as how old people are, their sex, or their income; provide means standard deviation and other statistics. Designated Market Area (DMA) Developed by the A.C. Nielsen a research company, these are geographic areas serviced by television stations. Data include demographic characteristics that can be used for reaching specific audiences, also used generically as a target market area. Determined Attributes Attributes that determine choice.

DEWKS Acronym for couples of dual employment, with kids; about 50% of U.S. married couples. Differentiation The ability to convey to a customer a tangible or intangible advantage of one product over a competition one. DINKS Acronym for couples with a double income, no kids, about 18% of the U.S. married couples Disjunctive Model The consumer establishes a minimum level of expectation based on only one or few attributes. Distribution Strategy The process by which a hotel determines its options of channels of distribution. Edifice – Oedipus Complex An emphasis on the edifice or building as the primary selling point in the product and/or communication mix. When used pejoratively, the hotel structure fails to differentiate itself from other hotels in both physical and positioning sense, thus losing any possible differentiation in the customer’s mind. Meaning not recognizing The real reason why people buy hotel rooms, because of a fixation on the physical Property. Elasticity The economic model that establishes the relationship between pricing of a product And demand of a product. Environmental Scanning The analysis of trends that may affect both the production and the purchase of a product by the customer.

Oriental Hospitality Consultants – Expectancy –Value Model Assumes that people have a measurement of belief about the existence of an attribute And that each tribute has an importance weight relative to the other attributes. Expectation Pricing Pricing according to what it is believed people expect to pay, regardless of intrinsic value. External Information Data gathered from distribution members such as suppliers, vendors and local / state And national agencies and associations. Facilitating Goods Tangible goods that accompany an intangible product or service to facilitate its purchase, like airport limo service or an 800 reservation phone number. Family Life Cycle Spans the basic stages of life (e.g., single, married, married with children, married with grown children, widowed and how these stages affect the purchasing decision.

Feasibility Study The thorough evaluation and determination of a business venture and its ability to perform in a marketplace. Market feasibility indicates market demand, financial feasibility indicates financial performance. Feature A tangible or intangible component of a product that is offered to solve the customers Problem. Fern Bars A trendy concept of the 1970’s that features an atmosphere filled with plants, brass and glass. Focus Group An assemblage of typical customers used to discuss and critique products ( typically determined by the use of screening techniques ). A moderator normally leads the discussion of five to ten people. Foreign Or Free Independent Traveller ( FIT ) A visitor from another country or simply any individual without a preset itinerary such as a package or tour, variously used in the industry. Formal Product The basic product customers think they are buying, such as a hotel room or a meal, as opposed to the core product. Franchisee An organization or person that purchases a brand name to distribute the product or service. Freestanding

Oriental Hospitality Consultants – A slang term for a customer who needs function or meeting space without accompanying guestrooms. Also applied to F&B outlets not associated or positioned Not to be associated with a host hotel. Frequent – Flyer Programs Programs that reward the airline passenger for repeated patronage with free mileage Credit toward future flights and other awards such as rental cars and hotel rooms. Frequent Traveller By industry definition, a traveller who spends at least 10 nights per year in a hotel room for any number of reasons; also called frequent guest. Frequent-Traveller Programs Emulation of frequent-flyer programs that offer free hotel rooms, upgrades and other Benefits and prizes for repeat patronage. Functional Strategies The “what” of the strategic system; that is, “what “ we are going to do specifically within the marketing mix to reach the customer. Global Distribution System (GDS) These are the electronic booking processes by which hotel, car and airline reservations Services are made worldwide.

Goods Tangible Tangible, physical factors over which management has direct control; or in other industries, manufactured goods. Grazing Restaurants A concept of restaurants where the customers are offered a variety of foods throughout The day and night; the customer is allowed to walk up to many food stations, sampling more than just one entrée – hence the term “grazing. Also used as a customer behaviour Where the customer may “nibble” at any time rather than at set meal periods. Ground Services Ancillary services such as transportation, tours, sight-seeing, etc., at a destination for arriving passengers. Group Product Line For customers who purchase a number of room, catering and related services. Group Market Segment Five or more single attendees at a meeting and/or pleasure, usually within the facilities of the hotel. Group Sales Person The member of the hotel sales force who handles the needs of customers booking 10 or more hotel rooms at a time and generally accompanying meeting space. Hassle-free A common industry term that describes a customer’s experience as being without

Oriental Hospitality Consultants – Any problems or hang-ups. Heterogeneity Variation and lack of uniformity in service being performed ; also variation of consumers in the market place. Hospitality Market Mix Contains four major sub-mixes: product /service mix, presentation mix, communication mix, distribution mix Hospitality Product The goods and services offered by the hospitality entity. They may include guestrooms, food, beverages, health clubs, pools, spa and so on; and all services, whether included in the price or priced separately. Importance Attributes Items that are important to the customer I making a choice of product or, in consuming the product, but are not necessarily determinant. Inbound Operator A channel of distribution that handles international travel to the host country from all Locations outside the country; also handles ground services when the traveller arrives. Incentive Houses Companies that specialize in handling the needs of organizations that reward their Employees with travel.

Incipient Demand Demand for which even the customer does not yet recognize there is a need (i.e.,the demand is in its embryonic stage) Incongruities Discrepancies between what is and ought to be Inferential Quantitative Search This method allows the extrapolation of findings from a survey to a larger population base; for this sample, each person in the population being studied must have an equal Chance of being selected in the sample. Innovators A consumer term identifying those who try anew product. In-plants Travel agencies that are located on the premises of a customer. Intangible Unable to be perceived by the sense of touch ; used in marketing as unable to be perceived by the five senses or easily grasped conceptually. Intention The co native stage of the buying process-what people intend to do.

Oriental Hospitality Consultants – Internal Information Data collected from sources within the organization, such as occupancy, average room rate, average check, number of covers, frequently-ordered menu items and so on. Internal Marketing Applying the philosophies and practices of marketing to people who serve the external customers so that (1) the best possible people can be employed and retained, and (2) they will do the best job of serving the customer. Management emphasis is equally on the employee, the customer and the job as it is on the product. Internal marketing Concept Organization’s internal market of employees can be influenced effectively and motivated to customer consciousness, market orientation and sales mindedness by using Market-like internal approach ands by using marketing-like activities internally. Internal Rate of Return (IRR) The method of determining the percentage of profit needed for projects funded with existing cash. Internal Validity Reported research findings that are free from bias and are valid in their conclusions. Judgement Sample A nonprobability sample using a specified variation. Subjects are “screened” to ensure they meet criteria specified. Latent Demand A consumer need for which no suitable product is available to satisfy the need (e.g., fast-food before McDonald’s). Leader Someone who has followers

Lowest Common Denominator (LCD) The sales process by which large tasks are broken down into the smallest (most manageable) pieces of work to be completed by a salesperson. Loss Leaders Items that are offered to customers at low (loss) prices to create traffic and the potential purchase of a more desirably priced item; like a soup special may be priced at 50 % in the hope that the customer will also order a sandwich. Macro Competition Anything that is competing for the same consumer’s dollar that you are, regardless of the product similarity; for instance, a new car might compete with an extended vacation. Market Demand The measurement of the amount of demand in the marketplace. See demand analysis. Market Positioning

Oriental Hospitality Consultants – Creating an image of a product in the marketplace in the consumer’s mind. Market Segmentation Assumes a heterogeneity in the marketplace and a divergent demand. Segmentation divides the market into various segments, with homogeneity along one or more common dimensions. Market Share The determination of a hospitality entity’s actual success rate in attracting customers. Once a determination of total supply for the product is made , each competing business Has a “fair” market share; that is, its proportion of actual sales is its “actual” market share. The market share establishes who has sold more or less than their fair share of the available supply. Marketing Communicating to and giving the target market what they want, when they want it and at a price they are willing to pay. Marketing Concept The theory that the customer has a choice and does not have to buy a product, or your product –hence the need to market or attract the customer to the product. Marketing Mix Traditionally the “Four P’s”, - product, price, place, promotion; in hospitality the product/service, presentation, communication and distribution that directly affects the customer. Marketing Opportunity Exists when the needs (problems) of the customer are not being satisfied or could be enhanced.. Marketing Orientation The philosophy, foundations and practices of marketing as evidenced in the philosophy of the firm.

Marketing-Orientated Management The philosophy that customer needs are primary to all processes, for example when designing a product before the sale, when delivering a product after the sale and while the customer consumes the product. Marketing Plan Working document that the hospitality enterprise develops for action during the forthcoming year. A situation analysis and all phases of the communications mix should be addressed as needed. Marketing System Makes marketing orientation and marketing concept work. Comprises leadership, opportunity, planning and control.

Oriental Hospitality Consultants – Maslow’s Hierarchy Higher-level needs do not become primary until lower-level needs have been fulfilled. Master Strategy Shapes objectives after developing and weighing alternatives; specifies where the firm Is going and is the framework of the marketing effort. Normally a long term planning Process. Micro Competition Any business that is competing for the same customers in the same product class; that is, is a direct competitor with a similar product in a similar context. Mission Statement The statement that delineates the total perspectives or purpose of a business. It states Why the business exists, the competitors, the marketplace and how the business serves its constituents. Multiple Brand Strategy The strategy of a firm that crosses over a variety of levels of consumer needs for the same product, for example, Marriott Hotels offers five brands of hotels, from deluxe J.W. Marriotts for the non-priced sensitive guest to the Fairfield concept for the pricesensitive budget traveller. New Markets The attempt to increase the customer base of a business by developing new markets through the solicitation of current non-users, or fulfilling unfulfilled, latent or incipient demand. No-Equity Deals The management of a hospitality entity without significant capital investment on the part of the managing company. Non-compensatory Models When the customer perceives no trade-off of attributes (e.g., conjunctive or disjunctive Models); for example, some customers would not accept a double-bed guestroom in lieu of a promised king-bed guestroom even if the price were much lover. Non-probability Sample Everyone in the population does not have an equal chance of being selected, includes judgmental, quota or convenience samples.

Non-targeted Prospecting Using list of potential clients to make “cold” calls ( i.e., calls with no advance contact). Normative Beliefs The thought process that certain individuals or groups should conform to a particular behaviour. Objective Positioning The process of creating an image about a product that reflects its physical characteristics and functional features.

Oriental Hospitality Consultants – Odd-numbered pricing A pricing methodology employed to create a perception of a lower price by charging, for example 199 baht rather than 200 baht. Open Probe A question phrased by a salesperson to encourage a customer to speak freely Opening Specials A pricing methodology used as inducement to try the product in the initial phases of the product life cycle, also called introductory pricing Operations Orientation A work ethic within a hospitality entity that focuses on the internal mechanism of the organization rather than then customer. Sometimes, similarly, called the F&B mentality because of that department’s historical emphasis on controlling cost and running a smooth operation before consideration of customer’s needs or wants. Opportunity Analysis Matching product strengths to opportunity while avoiding threats caused bu product weaknesses. Organizational Customer A customer who buys the hospitality product for groups of secondary customers with a common purpose. Outbound Operator A channel of distribution that handles international travel from the host country to all points of destination outside the country. Package Market Offering to consumers a combination of room and amenities for an exclusive price. Penetration Pricing A company drastically reduces prices to initially create awareness and trial of product, Eventually stealing customers and building volume Perception What is real to the customer, that is, what the consumer perceives or believes. Perceptual Mapping Process that helps to determine the positioning strategy relative to the competition by “mapping” competitive positions or product attributes.

Perish ability A character eristic of a product that indicates the length of time available for sale to a customer, after which it perishes. An automobile may have a perish ability of a year Before a new model is introduced – even then it can be sold at a reduced price, a hotel Room-night has one day, after which it can’t even be given away. Perpetuability

Oriental Hospitality Consultants – A word we have coined to describe the characteristic and ability to perpetuate repeated sales of the same product, e.g., a hotel room or an airline seat. Although the room-night has perished , the same product can be sold the next day. Personal Constructs Devises that individuals use to interpret or make sense out of what they confront. Personal constructs are on a bipolar continuum; for instance, good-bad Physical Plant The term for the actual building and its components that house the hospitality entity. Physical Supports Materials necessary for the production of a service (e.g., a reservations system ) From this support, both the contact personnel and the customer will draw services. Planning Defining what has to be done and allocating the resources to it. Parte Cochere A covered carriage entrance at the front of a building Positioning The consumer’s mental perception of a product, which may or may not differ from the actual physical characteristics of a product or brand. Positioning Strategy The planning by the hospitality entity to maintain, enhance or change the consumer’s mental perception of the product. Presentation Mix All elements used by the firm to increase the perception of the product/service mix in the mind of the customer. Presentation Strategy The idea that the presentation mix must be consistent with the product /service and the overall master strategy. Press Release A document prepared for the press providing the salient points of a story that the hospitality entity would like published. Price A statement of value, usually in monetary terms, that can be used to express the cost of a good service. Price Lining This technique clumps prices together so that a perception of substantially increased quality is created (e.g., $79, $99, and $119 )

Price Skimming

Oriental Hospitality Consultants – The pricing of a product at the high end of the scale to create a perceived value, skim off the top of the market and then eventually reducing the price to include a larger A larger number of potential customers. Pricing Objective The desired results of a pricing strategy which should be consistent with the hospitality entity’s other marketing objectives. Primary Reference Groups Small, usually intimate groups whose behaviour patterns may directly influence individuals within the group. Pro-act Opposed to react; act before the event , rather than afterward (commonly) used in strategy vernacular. Probing Methods to determine the needs of the customer through a series of inquiries Product An offering of a business entity as it is perceived by both present and potential customers; a bundle of benefits designed to satisfy the needs and wants, and solve the problems of specified target markets. A product is composed of both tangible and intangible elements; it may concrete as a chair or a dinner plate, or as abstract as a feeling. The utility of a product derives from what it does for the customer. Product Awareness Whether consumers are familiar with a product or even know it exists. Product Differentiation Perceived difference in a product when compared with others Product Life Cycle The description of the various stages that a product experiences during its tenure in the market; these phases include an introduction or embryonic stage, growth stage, mature stage and stage of decline. Product Orientation An organizational approach to marketing that focuses on the product itself and assumes that the product will sell itself, for instance, emphasis on atrium lobbies or swimming pools as the product the customer is buying ( related to Edifice complex ) Product Parity The competition is selling the same thing, or the consumer perceives no difference between the offerings. Product Strategy Deals with the benefits the product provides, the problems it solves and how it differentiates from the competition. Product Line Orientation An organizational approach based on how fast, how many, and how cheaply to produce a product to get it to the market in bulk at the lowest possible.

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Product / Service The totality of what hospitality companies offer their customers, including goods, services and environment. Product / Service Mix Combinations of products and services, whether free or for sale, aimed at satisfying the Needs of the target market. Profit Centre Concept The idea of breaking a larger organization into smaller, more manageable pieces by assigning profit contribution goals to individual departments. Profit Impact Of Marketing Strategy (PIMS) Program that is a computerized cross-sectional study based on about 200 pieces of Data supplied by more than 450 companies in more than 3000 businesses. This program has shown that the profitability of a business is affected by 37 basic factors that explain more than 80 percent of the profitability variation among the businesses. Proprietary Search When research is conducted for a particular organization for the specific use of that Organization as opposed to general use. Prospecting The methodology used in finding new customers; an example would be making sales calls on customers who are not currently using the product. Psychographers People who correlate factors into relatively homogeneous categories using classification terms for consumer’s lifestyles, such as homebodies, traditionalists, swingers and so on. Psychographic Segmentation Lifestyle patterns combine the virtues of demographics with the way people live, think and behave in their everyday lives to divide them into market segments, i.e., by their attitudes, interests and opinions (AIO). Psychological Pricing Pricing strategy utilized to elicit consumer reactions such as perceived quality or value. Public Relations The organized attempt by a business to get favourable stories concerning their product or services carried by the media. Publicity The format used in public relations to “create” a story. Stories are created through organized promotions. Pull Strategy Inducements are offered to make the consumer want to purchase a product or “pull” the product down the channel of distribution .

Oriental Hospitality Consultants – Push Strategy Inducements are offered to the channel member to sell or “push” the product down the channel of distribution.

Probability Sample One in which every member of the population has an equal chance of being selected. Qualitative Research The process of obtaining information on consumer attitudes and behaviour on a subjective basis. This research is largely exploratory in nature and the findings cannot be generalized to a larger population. An example is the use of focus groups. Quantitative Research The process of obtaining information on consumer attitudes and behaviour on an objective basis. This research is factual in nature and the findings sometimes can be generalized to a larger population. Rack Rates Regular published rates for hotel room, almost always discounted except in periods of very high demand. Reference Groups / Referents Group that form small pockets of influence that affect consumers. Relationship Marketing The emphasis on retaining existing customers through building good relationships. Reliability In research, findings can be projected to a larger population if it is the intent of the Researcher to do so; also, if the study is repeated, similar findings will emerge. Repositioning Changing the position or image of a product to consumers in the marketplace. Research Design The process of establishing the total objectives and method of research to be conducted. Research Problem The designation of the problem of research, that is, stating what the research is going to answer (not necessarily the same as the management problem) Research Purpose What you intend to do with the finding; what kind of business decisions you plan to make after you have the results. Reservation Network Central reservation systems that serve multiple companies or properties. Retail Market Middlemen Such as travel agents, who sell directly to the consumer, a member of the distribution mix.

Oriental Hospitality Consultants – Return On Assets (ROA) The ratio of profits to assets that is generated by a business. Return On Investments (ROI)) The ratio of profits to assets that is generated by a business. Revenue Management See Yield management. Run-of-the-house Room The generic term for the random assignment of guestrooms to customers. Customers are not promised a certain type of room before their arrival at the hotel. Sales Equation The mathematical process by which the past customers and budget expectations are calculated. Sales Action Plan Format to organize and manage a sales department to create and maximise deals. Salient Attributes Those attributes that readily come to mind when you think of a product or product class. Sample A group derived from the population at large; from it we hope to learn the characteristics of many based on a few. Segmentation The dividing of a large customer base into smaller homogenous categories, based on a variety on applicable factors. Selective Acceptance The theory that customers only accept information that they choose to accept, that they select from a variety of information what is applicable. Selective Attention The theory that customers attend to only what is of particular interest to them. Selective Comprehension The theory that customers will try to comprehend, digest and evaluate something only if they are still interested in it after attending to and accepting it. Selective Retention The theory that customers retain in memory for future reference only what suits their particular interest after attention, acceptance and comprehension. Selling Orientation To practice “hard sell” techniques; the emphasis is on selling what you have to offer And\ persuading the customer to buy, rather than on the needs of the customer. Service Non-physical

Oriental Hospitality Consultants – Non-physical, intangible attributes that make management controls (or should), including friendliness, efficiency, attitude, professionalism, responsiveness, etc. Service Augmentation The marketing strategy to add to a generic product by enhancing services ; for instance, the perception of a hotel room may be enhanced by the availability of shoe-shine service. Share Of Mind Marketing jargon associated with positioning; it means that the positioning has been established in the consumer’s mind.

Simultaneous Production & Consumption Unique service characteristic whereby consumption depends on participation of the seller and the seller requires the participation of the buyer. SMERF A market segment that covers the social, military, ethnic, religious and fraternal customer base. Soft Opening Production introduction begins a few weeks before the official opening Standard Metropolitan Statistic Area (SMSA) Area that the government defines as a large economic area in terms of supposed economic boundaries. Government produces data on these areas such as population, ethnic mix, income, etc. Standard Product The attempt to provide a similar experience to the customer despite different locations Or managers; for example, McDonald’s offers a standard hamburger throughout the United States. Strategic Business Unit (SBU) Units of a business that have a common market base. Each SBU serves a clearly defined product-market base with its own strategy. Strategic Marketing Long-term view of the market and the business to be; marketing management stresses Running that business and seeks to optimize objectives within the constraints established by the strategy. Strategic Planning Developing a plan for how to get from here (situation analysis) to there (objectives). It is concerned with setting business objectives, the match between products and markets, The choices of competition, the allocation of resources and planning ahead to reach the objectives. Strategic Thinking Synthesis as opposed to analysis in strategic planning.

Oriental Hospitality Consultants – Subjective Norm People’s of the social pressures put on them to perform or not perform in a particular way. Subjective Positioning The perceived image that does not necessarily belong to the product or brand, but is the property of the consumer’s mental perceptions. Suitcase Party Consumers come to a hotel with their suitcases packed and during the evening, an exotic weekend away is rewarded randomly and the couple is whisked away to their destination. Tactics The step-by-step procedure of executing the details of a strategic plan.

Target Marketing The marketing strategy to aim a product or service at one portion of a specific market segment. Target Markets Homogeneous markets that allow for ore detailed analysis and evaluation of potential customers of a segment. Technology Orientation Belief that success in the marketplace is a result of the finest technological development. This thought process is similar to the business philosophy exemplified by Polaroid for years. Also akin to atrium lobbies with lakes and waterfalls. Tour Series. Prearranged link of stopovers for customers travelling by bus, usually carrying a theme. Transient Sales People The salesperson who is designated to sell to organizations that have a need to book guestrooms on an individual basis. Trial This stage of product introduction attempts to get the customer to try a product . Two-fer Restaurant promotion that offers two meals or drinks for the price of one. Vertical Integration Company becomes its own supplier of products ( Holiday Inns had a subsidiary that sold hotel furnishings ) Walked Customers Resulting from overbooking hotel room, customers’ reservations are not honoured and they are sent to a different hotel.

Oriental Hospitality Consultants – Wholesale Tour Operator Middlemen who create hospitality packages, such as group tours and sell to the customer through retail agents. A member of the distribution mix. Word-of-mouth Advertising The marketing strategy that satisfied customers are the best form of communication . Satisfied customers will tell potential customers of their experience, thus increasing the customer base. Yield Management The concept of maximizing the revenue yield by raising or lowering prices depending upon the demand. Better called revenue management.

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Description: Hospitality Industry Manuals for Hotels and Resorts
Oriental Hospitality Oriental Hospitality