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INTERNATIONAL HOTEL SALES AND MARKETING INTRODUCTION • Today, the world become as a global market place with both hotel enterprises and consumers. This means, marketers have to develop new market strategies and they have to know cultural diverse expectations, attitudes, and what motivates people to buy. • Marketers must research and understand the customer’s value judgements, cultural norms and new sales and marketing methods. • For this reason, sales and marketing strategies become most important and valuable for hotel managers and marketers. We will examine on this strategies in this presentation. MARKET RESEARCH The first step in entering any new market is determining if there is product demand, either existing or potential. Effective research reveals market characteristics and identifies future travel trends. If the hotel’s products and services can be tailored to meet the needs of the target markets, and then formulate a marketing strategies. Market research is a process that identifies and defines marketing, oppotunities and problems, monitors and evaluates marketing actions and performance and communicates the findings and implication the management. Research priorities as follows : • Market segmentation and sizing • Concept development and product testing • Price-Sensitivity assessment • Advertising and promotions assessment • Market tracking • Customer Satisfaction MARKETİNG RESEARCH PROCESS Defining the problem and research objectives Developing the research plan For collecting information Interpreting and Implementing the research plan Reporting the Collecting and findings Analyzing the data ● GUEST ANALYSIS Hotel managements should identify guest histories and demografic datas. This will be useful for competitive positioning, product improvement, tourist demands and other market strategies. ● COMPETITION ANALYSIS Evaluation a hotel’s marketing environment requires a SWOT ( hotel’s strenghts, weakness, opportunities and threats). Competitor’s can determine the disadvantages and advantages of tourism marketplaces with this analysis. This information show their market share, market position and their market strategies. ● INFORMATION ANALYSIS Information gathered by the company’s marketing intelligence and marketing research systems can often benefit from addational analysis. This might include advanced statistical analysis to learn more about the relationship withhin a set of data. Such analysis allows managers to go beyond means and standart deviations in the data and answer such questions as the following : - What are the major variables affecting sales, and how important is each? - If the price is raised 10% and advertising is increased 20%, what will happen to sales? - What are the best predictors of who are likely to come to my hotel versusmy competitor’s hotel? - What are the best variables for segmenting my market, and how many segments exist? The Internet : A New Marketing Research The internet allows access to commercial services such as dialog, compuserve, lesis\nexis, and research library information network, some useful sites for hospitality and tourism marketing information are as follows : - http://www.adage.com advertising age - http://www.ama.org\ Amerikan Marketing Association - http://www.marketingtools.com USA Demographics Marketing Tools - http://www.ahma.com USA Hotel and Motel Association - http://www.clubnet.com Club Managers Association of USA - http://www.hcima.org.uk Hotel and Catering International Management Association - http://www.hsmai.com Hotel Sales and Marketing Association International - http://www.restaurant.org National Restaurant Association - http://www.sbaonline.sba.gov Small business administration-supplied trends and information for small business • FORECASTING FUTURE DEMAND Forecasting demand is a review of time series analysis and based on such key variables. A forecast analysis enables the hotel to improve decision-making strategy planning, and control of marketing efforts and resources. • Common Forecasting Tecniques BASED ON METHODS What people say Surveys of buyers intentions Composite salesforce opinions Expert opinion What people do Test markets What people have done Leading indication Statistical demand analyzing DEVELOPING AN INTERNATIONAL MARKETING STRATEGY International marketing strategy requires the selection of specific target markets, communication and promotion methods, and distribution channels for hotel enterprises. The hotel marketer needs to determine the orientation of the marketing effort and allocation of resources. The strategy for any market should be based on the needs and motivations of that particular market. 1.Marketing Process Strategies - Long term decions and long term effectiveness - Marketing information reseach with their own marketing department or intervention companies - Organization structure - Private budget for marketing process 2. Determining Strategic Process Levels - Market Segmentation - Environmental Factors - Marketing Formulation ( Strategy formulation-program formulation ) - Using Marketing Factors ( Price-Product-Promotion-Place ) 3. Kinds of Marketing Strategies Development Strategies - Increasing Development - Completion Development Competition Strategies - Price Strategy - Cost Strategy - Finding Appropriate Market Strategy - ‘Leader of Market ’ Strategy Alternative Tourism Strategy Product Strategy ► National tourism organizations and other destination marketing organizations can be helpful in developing an international market strategy because they normally work with convention planners, wholesalers, and travel agents. Significant cost advantages can be gained by performing marketing activities on a centralized or reginol basis, spesifically in the following areas : - Centralized production of promotional materials - Central sales force - Development of international marketing coalitions - Standardization of common marketing activities - Sharing marketing information - Sequencing marketing programs with integrated efforts across countries - Centralizated advertising ►Good communication between the regional offices and individual hotel sales office helps to produce new sales efforts, strategies and more business for the individual property. Centralization and decentralization marketing have different advantage and disadvantage. ►To develope an international marketing strategy; the target markets have been selected, each strategy depends on that market customary use of travel agencies, tour packages and special promotions as well as the market’s expectation and behaviours. STRATEGIC PLANNING - Overwiew of Planning : Many companies operate without formal plans. In mature companies, many managers argue that they have done well without formal planning, and that therefore it cannot too important. Yet, formal planning can yield many benefite for all types of companies, large and small, new and mature. - Defining The Company Mission : A mission statement is a statement of the organization’s purpose-what it wants to accomplish in the larger environment. - Setting Company Objectives and Goals - Designing the Business Portfolio - Planning Functional Strategies Market Opportunity Identification Existing products New products Existing Markets Market Product Penetration Development New markets Market Diversification Development UNDERSTANDING VARIOUS TRAVEL DISTRIBUTION SYSTEMS An important element in the marketing strategy of any hotel is the system of marketing channels through which products and services are sold to their ultimate buyers.The term travel distribution system refers to a series of marketing or selling institutions and how a sells its services to buyers through travel agencies, tour operators, free lines and others. AUTOMATED GLOBAL DISTRIBUTION SYSTEMS Today, tourism organizations are virtually using computer reservations systems ( CRSs ) and this system will allow reservationist to conclude sales more easily and to place guests in the right hotel at the right price anywhere in the world.Some of the CRS are sabre, apollo, galileo, amadeus, abacus, etc. DISTRIBUTION CHANNEL FUNCTIONS 1. Information 2. Promotion 3. Contact 4. Matching 5. Negotiation 6. Physical Distribution 7. Financing 8. Risk Taking CONSUMER MARKETING CHANNELS Manufacturer Consumer Manufacturer Retailer Consumer Manufacturer Wholesaler Retailer Consumer Manufacturer Wholesaler Jobber Retailer Consumer INDUSTRIAL MARKETING CHANNELS Business Business Consumer Business Business Business Distributor Consumer Business Sales Branch Business Consumer Business Business Business Sales Branch Distributor Consumer WORKING WITH TRAVEL AGENTS For hotel managers who can work with travel agents in different countries, the increase in international travel presents a golden opportunity. Today, consumers increasing reliance on travel agents and hotels work with this distribution systems to increase revenues by selling more hotel products on an international scale. COMMON HOTEL-TRAVEL AGENCY RELATIONSHIP PROBLEMS It can be especially stated as commission payment problems, currency conversations, payment time, booking problems and negotiated hotel rates. And resolving this relationship problems following cases can be used: Speed of confirmation and payment Payment guaranteed Payment in local currency Consolidated payment TOUR OPERATORS For some hotels, teaming up with travel partners in a package may be the only way to make the foreign marketing effort economically feasible. In working with wholesalers to develop package tours, the hotel needs to consider three factors : - Most wholesalers will package and promote only those tours - Any cooperative support offered by the hotel in the tour programme will help to reduce the wholesaler’s risk and encourage the inclusion of a new or unproven product - It requires long-range efforts, negotiations, and continuous marketing support Foreign wholesalers are often reluctant to take on a new unproven product, so branded hotels are more acceptable than unbranded in the package for tour operations. SEGMENTATION The successful hotel marketing effort today demands detailed segmentation and the use of avalaible resources to satisfy specific target markets. Markets can be segmented in three ways : geographically, demografically and psychographically. For example Japanese travel market segmented like; Free and independent travelers, Group inclusive tours, Silver market ( families with young children ) Honeymooners, office ladies etc. Market Segmentation Variables • Geographic Segmentation It calls for dividing the market into different Geopraphic units, such as nations, states, regions, countries, cities or neighborhoods. - Region - City or metro size - Density - Climate • Demographic Segmentation It consist of dividing the market into groups based on Demographic variables such as; - Age and family life style - Income - Occupation - Education - Religion - Race ( white, black,Asian ) - Nationality - Family size • Psychographic Segmentation It divides buyers into different groups based on; - Social class - Lifestyle - Personality Characteristics People in the same demographic group can have very different psychographic profiles • Behaviour Segmentation Buyers are divided into groups based on their knowledge, attitude, use, or response a product. Many marketers beleive that behavior variables are the best starting point for building market segments. - Occasions - Benefits - User Status - Usage Rate - Buyer Readiness Stage BRANDING The branding of hotels to identify particular properties with specific market segments is not a new concept, but has become increasingly popular for three basic reasons; First, it is a response to the need to tailor hotel products for the specific needs of various segments. Second, categorization. It was anatural consequence of mergers and acquisitions. Third, it provides a better way to create standarts of identity, quality and pricing in the marketplace. For example, today the Holiday Corporation has six brands, BRAND TYPE Crowne Plaza Lower and of 5-star range Holiday Inn Traditional mid-market Hampton Inn hotels Embassy Suites Budget hotels Residence Inn All-suites hotels Extended-stay inns Harrahs Hotels U.S. casino hotels PRODUCT POSITIONING ► After the market feasibility study, the hotel product is developed and targeted for a specific market segment, either through distinguishing features of the product itself- including lacation, property, pricing and service- or through image creations with respect to advertising, promotion and public relation. ►Hotels may be repositioned to trade up or down, but trading up requires the investment to improve the property and its service before advertising and promotional activities. PRODUCT DIFFERENTIATION A company can differentiate its product or offer products similar to competitiors. Today, most products try to differentiate themselves from their competitors. - Physical Attribute Differentiation - Service Differentiation - Personnel Differentiation - Location Differentiation - Image differentiation POSITIONING MEASUREMENT : PERCEPTUAL MAPPING - Grand Expensive - Regency Palace Shangri-la Moderate High Service Service Sheraton Atlantic Italia Castle Alexandar ıv Less Expensive Airport Plaza ►Marketers should attempt to analyse their competition’s positioning statements, advertising message, and buyers as part of the market research effort. PROMOTIONAL TOOLS AND TECHNIQUES 1. Advertising It is a attractive promotion tools and is paid for by the hotel in the mass communication media- tv., radio, newspapers, consumer and travel trademagazines. The cost of most media advertising makes it prohibitive for the avarage individual hotel because these are expensive. Trade advertising : It appears primarly in travel trade publications, directories and tour operators brochures. Hotel Directories: Directory listing and ads can be effective ways to attract the attention of the international travel industry. Hotel & travel Index, airline guide etc. Consumer Advertising: This type of advertising is made for direct consumer appears in tv., radio, newspaper, magazineposters etc. Direct Mail: It is one of the most popular means of contemporary marketing. Mailing lists can be compiled from in-house generated data banks of guest files, lists of potential visitors etc. It is effective and cheaper than other tecniques. Sales Promotions : This tecnique includes activities other than advertising, personel selling and public relations to stimulate room, restaurant or other sales. These are brochures, postcards, posters and the organization of special program and prices. Public Relations : Public relations is the employement of any means of advancing the hotel’s relationship with the community and the general public. Frequent-Guest Programs: Frequent guests are become important customer potential for the hotel. It includes such benefits as; guaranteed reservations, personalized gifts, special amenities in room etc. PROFILES OF MAJOR MEDIA TYPES MEDIUM PERCENTAGE ADVANTAGES LIMITATIONS Newspap 23,4 Flexibilty,timeliness Short lift, er poor reproduction Television 22,4 High attention, motion High cost, high clutter Direct 19,3 Audience selectivity Junk mail Mail image Radio 6,6 Mass use, low cost Lower attention Magazine 5,3 Credibility snd prestige Some waste s circulation Outdoor 0,8 low cost, low competition No audience selectivity 2.Personel Selling Personel selling involves any from of face contact with individuals groups for the purpose of generating advance sales. It includes with members of the travel trade, familiarization tours, representation at travel shows, travel missions, corporote groups, car rentals, airlines and destination management organizations. Personel selling is an effective and sometimes necessary way to reach international market. SUMMARY ►An international marketing minded hotel executive tries to create value satisfying products and services that guests from arround the world, as well as at home, will want to buy. ►Hotel manager’s have to pursue development of an international marketing strategies and consumer’s demand. ►Ultimately, the success of marketing is measured in terms of the ability to close sales and the translation of sales into hotel revenues.
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