ch 5 hosp
comp use customer insights to build a comp adv.
insights are hard to obtain, to do this marketing managers must effectively manage marketing info from a wide range of sources.
tech allows us to generate info in large quantities.
marketers don’t need info they need BETTER info., marketing info system must do more then generate lots of infor, it must value the insights it produces and the decisions it influences.;
customer insight teams are becoming more pop.- they collect market info from many sources.then they use this infor to develop insights from which the company can create more value.
this system begins and ends with marketing managers.
1. interacts w managers to assess info needs
2. develop info from internal records, marketing intelligence, and marketing research processes
3. Information analysts process the info to make it more useful
4. the MIS distributes infor to managers to help in marketing planning implementation and control.
begins by interviewing managers – too much info can be just as harmful as too little.
man should keep eyes and ears open for comp, but always anticipate comp.
comp must estimate value of having an item of info against the costs of obtaining it., value depends on how the info will be used
costs of obtaining processing storing and delivering info can add up quickly., costs may exceed benefits.
market man can access and work with info in the database to identify marketing opps and problems plan programs and evaluate performance.
marketing dept has info on transactions, demos, psychographics, and buying behavior.
internal data comes from marketing dept, accounting dept, operations, etc.
internal databases are quicker and cheaper
Problems: info may be in the wrong form or incomplete.
hard to keep data current
hard to manage all of the data
companies are creating data warehouses to keep their customer data in a single more accessible location., companies search for meaningful patterns in that data and communicate it to man.
useful marketing info is in kitchen production schedules, sales reports, front desk reports, etc.
guest history info: creates effective advertising and sales promotion programs developing new products, improving existing products and developing marketing and sales plans, and to the use of an effective rev management programs. examples: name, address, method of payment , type of product bought, etc. vital to MIS
guest info trends: vital so revenue and yield man, types of trend info used by cruise lines, hotels, etc, are booking patterns, cancellations, overbooking patterns, yield patterns by seadon, conversion percentages (inquires of res) and historical tends on occupancy for seasons., guest history records allow hotel marketers to identlfy repeat guests and their individual preferences.
comment cards: found on dining room tables and guest rooms or handed to leaving customers., they provide useful info and provide insights to problem areas., may not reflect the majority opinion of guests, there are useful in spotting problems but do not measure overall guest satisfaction.
listening to and speaking with guests: hotels offer receptions for frequent guests where man can speak with them, sometimes customer surveys are used to find out what guest think, gathering info from guests lets them know that you are interested on them and it create trust and customer loyalty, employees should be trained to listen to guest comments and feed them back to management
automated systems: decreasing cost and increasing capacity of automated guest history systems allows hotels to create close relationships with their customers., these can be of great benefit to the sales force in that salespeople can pull guest history by geo area, allows identifies frequent guests, offers a comp adv to a chain- bc a group of hotels can share info
mystery shoppers: 1.5 billion industry, pose as customers and report back on experience, used in all types of operations., work best if there is a possibility for recognition and reward for good job performance.
company records: marketing man should take adv of the info that is currently being generated by depts. guest history and client history on potential corporate clients.
point of sale info: offers opps to compile and distribute thru a computer, info that is currently entered into reports manually. , could collect info about an individual restaurant patrons where credit cards are used, may employ computers using artificial intell. , popular in casinos to record numbers of plays and win loss records
internal sources: intelligence gathered by a companies executives, front desk staff, purchasing agents and sales force. must rain employees to spot and reprt new developments, managers should debrief contact personal regularly.
external sources: intelligence gathered from suppliers, cvbs, and travel agencies, 3 types:
macromarket info: visitor trends
comp info: prcing strategy
new innovation and trends: tech improvements in products or services.
you want to be friendly to suppliers and vendors., man should be encouraged to join organi. sometimes rival companies offer you the info.
sources of comp info: intelligence gathered from comp annual reports, articles, speeches. press releases. brochures, and advertisements. hotel and rest. manager should visit comp.- you want to clearly define your competition. companies leave a paper trail if info online, search engines, intelligence seekers pore thur many online databases like US sec, and exchange commissions database( fin info on comp) , newsletters.
defined as a process that identifies and defines marketing opps and problems, monitors and evaluates marketing actions and performance, and communicates the findings and implications to management.
common activities include: measurement of market potentials, market share analysis, testing of existing products, etc.
can employ own researchers or hire outside ones.- most companies own their own.
Camacho formal vp of Marriott listed research priorities as market seg. and sizing, concept development and product testing, price sens assessment, promotion assessment, market tracking, and customer satisfaction.
, man will understand the problem for which info is needed, while the researcher understands marketing research and how to obtain the info that the man needs.
man must know enough about marketing research to interpret finding carefully.
after the problem is well defined the man and res. must set research objectives:
exploratory research: to gather preliminary info that will help define the problem and suggest hypth
descriptive research: describes size and composition of market.
casual research: to test hypothesis about cause and effect relationships- manager start with exp. and move from there
gathering secondary info: consists of info already in existence somewhere, having been collected for another purpose. researchers start with gathering this, it is obtained quicker and at a lower cost. basing decisions on secondary data will cause problems- req info may not exist or not be very relevant or accurate, when secondary data is not enough we must use primary
observational research: gathering of primary data by observing relevant people, actions, and situations, can yield info that others are unwillingly or unable to provide. feelings that motivate buying power cannot be observed, long run behavior is difficult to observe so people supplement with survey research
ethnographic research: involves sending trained observers to watch and interact with consumers in their natural environment., yields the kind of details that don’t emerge from traditional research questionnaires or focus groups.
trad research seeks to test known hypth and obtain answers to well defined questions, while observational research generates customer and market insights. , allows companies to zero in on their customers desires
survey research: approach best suited to gathering descriptive information. can be structured asking a list of questions to individuals in the same way or unstructured letting the interviewer guide the interview according to answers. can be direct or indirect, surveys are flexible, used to obtain many kinds if info in different situations, provides info quicker and at a lower cost.
limitiations: people sometimes cant answer bc they don’t remember , may feel weird with privacy concerns with interviewer, busy ppl might not want to take the time. may answer to look smarter may base answer off of interviewers happiness.
experimental research is best suited for gathering casual information.- Arbys use experiments for new sandwich – answers how much will the new sandwich increase sales? or which is the best advertising approach?- arbys would then set up experiments like pricing it one way in one country and different in another and see effects
mail: can be used to collect lots of infor at a low cost, people may be more honest, convenient, good way to reach traveling people
however, mail is not flexible. take longer. responses may be low giving an inaccurate reading of the pop, little control over who answers the questions
phone: gathers info quick, flexible, greater sample control, higher response rates than mail.
however, some ppl don’t wanna dicuss personal info, interviewer bias, interviewer affects respondent, toll free numbers are becoming more popular.
misled respondents think research is being done but its just a sales call. thieves take adv of this to find out when people are home.
Intercept : talking with people on their homes offices, or on the street., must gain corporation can last hours or min., widely used in tourism research, can reach respondent in a short period of time. , involves the use of judgmental sampling – leave bias for next interviewer.’
however, personal interviewing are expensive and small sample sizes are used- may be difficult to generalize from results., interview bias.
Brown says to always have a pretest, look at number of people that drop out after each question, internet surveys are meant to be quick and inexpensive don’t expect ppl to wait of pay a high fee.
focus group interviewing: conducted by inviting six to ten ppl to gather for a few hours with a trained moderator to talk about a product, service, or organization. participants get a reward for participating moderator starts with broad questions before moving to specific issues. ,comments are recorded to understand consumer buying process., two way mirror can be used , becoming a major tool for gaining customer insight.
in depth interviews: interviews based on open ended questions. allow researcher to gain insight into consumer behavior.
qualitative research is useful to gain insight into definitions and concepts., useful way to gain insight into survey results.
Who will be surveyed?
How many people should be surveyed?
How should the sample be chosen?
may be quota sample or convenience sample, probability sample
When will the survey be given?-
structured models like the test market.
structured interviews have questionnaires- all questions should contribute to the research process. closed or open ended questions must see how to word questions. open ended questions reveal more info because respondents are not limited in their answers., effective for telling why people think the way they do.
wording of questions should be simple indirect and unbiased – first question should create interest, personal questions last to avoid people from becoming defensive
Observation City Resort Hotel in Australia: man collected gov. abstracts to establish a profile of guests to the area, had to develop a plan to obtain corp. business
a business consumer survey was conducted
questionnaires were given to travel man
observations were made of successful corp places
human resource dept trained employees to collect primary data
this was successful!!!
Presenting the research plan: marketing researchers should summarize plan in a written proposal, proposal should cover the management problems addressed, research objectives, info to be obtained, sources of 2ndary info or primary, and how the results will aid in decision making. , should also include research costs, must ensure that the marketing man and researcher agree on why and how the research will be done
data collection phase is most expensive and subject to error. ,watch fieldwork closely to make sure plan is implemented correctly and to guard against problems with contacting respondents
collected data must be processed and organized. , researcher uses comp programs to prepare results and to compute averages for the other variables.
Interpretation should be done by the researcher and man.
must proceed through all other research steps to get to this fourth one.
info gathered can benefit from additional analysis to help interpret findings. – adv statistical analysis: answers what variables are affecting sales? if price is raised or decreased what will happen to sales? best predictors of who till come to your hotel? best variables for segmenting market?
math model might help marketers make better decisions – each model rep a real system, process. or outcome, helps answer what if and which is best, these models help man make better marketing mix decisions , design sales territories and sales call plans select sites for retail outlits develop adverting mixes etc
marketing info has no value until man use it to make better decisions large comp have centralized mis that provide managers with regular performance reports, intelligence reports, and reports on the results of studies.
marketing man need nonrountine info for special situations and on the spot decisions. – mananger must request this info from mis which can take a long time.
computers and software are decentralizing marketing information systems and giving managers direct assess to info.
systems allow managers to obtain needed info directly and quickly and tailor it to their needs , companies will continue to become more decentralized
int researchers run into more problems
int researchers deal wit markets in many different countries
these countries vary economically, in cultures and customs and in buying patterns.
int researcher has a hard time finding good secondary data, many countries have no research data at all.
even when secondary info is available, it must be obtained from many different sources on a country by country basis making the info difficult to combine or compare.
Us has lot of info- though infor is lacking in other countries like , reaching people in other countries is difficult unlike the us , few people had phones , mail is not really delivered in other countries , poor transportation
lang is a culprit – questionairres must be translated some points are lost because of idioms phrases and statements that mean different things in different cultures.
buying roles and consumer decision processes vary greatly from country to country complicating research more. , consumers also vary in their atittudes toward marketing research.- people in one country may respond while others don’t.
growth of international marketing has resulted in a rapid increase in the use of international marketing research., costs of not doing research can be more.
you can obtain infor by observing others
man can conduct informal surveys using small con. samples. – can find what customers like and dislike about travel agencies. by conducting internal focus groups.
man can talk with customers or make random phone calls, or conduct experiments
small or can obtain secondary data many associations, media, gov agencies provide special help to small organizations.
volunteers and colleges carry out research.
internal data can be found carefully without too many costs.