HTM231 Exam 2 – Flashcards

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

The most basic level. Why the guest is buying the product. For example at a food establishment it would be the food because the person is hungry and that is what they came for.

Services or goods that must be present for the guest to use the core product Facilitating products for one market segment may be supporting products for another. Examples: beds, staff, location

Extra products offered to add value to the core product and help to differentiate it from the competition. Examples: Room Service and concierge services.

Additional consumer services and benefits built around the core and actual service. Accessibility, atmosphere, customer interaction with the service organization, customer participation, and customers' interaction with each other. Examples: Hilton rewards, hotel points etc.

Brands are more than just names and symbols, they are a key element in the company's relationships with consumers

Marketers need to position their brands clearly in target customers' minds Product attributes/ Desirable benefit/ Beliefs and values Marriot: travel brilliantly healthy bending

1) It should suggest some-thing about the product's benefits and qualities. (2) It should be easy to pronounce, recognize, and remember. (3) The brand name should be distinctive. (4) It should be extendable. (5) The name should translate easily into foreign languages. (6) It should be capable of registration and legal protection

employing co-branding and ingredient branding.

same-company or retail co-branding in which two retail establishments use the same location to optimize space and profits.

the set of all brands and brand particular category or market segment

New-product development starts with______. The purpose of_____ is to create a large number of ideas.

The purpose of ______ is to spot good ideas and drop poor ones as quickly as possible The idea or concept _____ stage is the appropriate time to review carefully the question of product line compatibility

Surviving ideas must now be developed into product concepts It is important to distinguish between a product idea, a product concept, and a product image

Designing an initial ______ for introducing the product into the market

involves a review of the sales, costs, and profit projections to determine whether they satisfy the company's objectives

If the product concept passes the business test, it moves into ________ and into a proto type One problem with developing a prototype is that the prototype is often limited to the core product

The product and marketing program are introduced into realistic market settings Market testing allows the marketer to gain experience in marketing the product, to find potential problems, and to learn where more information is needed before the company goes to the great expense of full introduction

If the company goes ahead with commercialization, it will face high costs. When? The first decision is whether it is the right time to introduce the new product Where? The company must decide whether to launch the new product in a single location, a region, several regions, the national market, or the international market To Whom? Within the rollout markets, the company must target its promotion to the best prospect groups How? The company must develop an action plan for introducing the new product into the selected markets and spend the marketing budget on the marketing mix

Product Development Introduction Growth Maturity Decline

If a product is no longer profitable, it is important to TERMINATE rather than continue to pour time and resources into reviving it

Phase-out The ideal method; it enables a product to be removed in an orderly fashion Run-out Used when sales for an item are low and costs exceed revenues drop This option is usually chosen when the product may cause harm or complaints Drop it It is best to drop the item rather than continuing to create unhappy customer

are firms that supply what is needed to create a product or service

connect the firm with its customers

where all parties partner with each to improve the performance of the entire system

Information-promotion-contact-matching-negotiation-physical distribution-Financing-Risk Taking

direct booking OTAs GDSs Travel agents Travel wholesalers

Vary in size Charge suppliers a service fee. Retail vs. Corporate Travel Agency The number of travel agents has been decreasing in recent years Use GDS (Global Distribution System)

Global distribution systems (GDSs) are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products

A wholesaler is a company that plans, markets, and administers travel packages (airline + hotel + activities +....) Supplier Wholesaler Retailer 1. Inbound - provide local services to other tour operators in specific countries or destinations (coming in) 2. Outbund -provide international travel service (going out).

-selling hotel room in China to retailer in the US that organizes trip to China. (inbound) -Selling hotel room in the US to retailer in China who is coming from China. (Outbound)

Conduct business through the internet -Non-opaque OTA Opaque OTA: do not disclose the brand and specific hotel one is purchasing until it is purchased in a nonrefundable transaction with the consumer

Works for corporate clients Goal: cost efficiency (corporations' travel expenditures) -Coordinating corporate travel arrangements to maximize the efficiency of corporations' travel expenditures

Online Reservations-Open Table Delivery, Take-out, Drive-through window -UberEATS -Food delivery platform powered by Uber

1. Retailing at locations convenient for travelers 2. Expanding distribution network. 3. Providing specialized knowledge

Disintermediation: decreasing role of traditional travel intermediaries E-commerce M-commerce

Is in essence B2B marketing 3 steps: Research and select travel segments Decide on the positioning approach and objectives Establish a promotional mix

Where do our clients come from? Specific cities/areas. Who provides business to us?

It is equally important to create a distinctive image for the intermediaries IHG: IHG Commission Guarantee

is a combination of advertising, sales promotions, social media campaigns, personal selling, PR, etc. 1.Travel trade advertising: e.g. Travel Agent magazine 2. Trade sales promotions a) fam(familiarization) trips b) trade shows 3. Cooperative marketing (partnership) 4. PR and publicity: conferences, press kits, etc. 5. On-line marketing

Public relations Advertisng Direct and Digital Marketing Sales promotions Personal Selling PR

marketing communications mix Consists of tools to communicate customer value and build customer relationships.

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

Engaging directly with carefully targeted individual consumers

Short-term incentives to encourage the purchase or sale

Personal presentation by the firm's sales force

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

Shift toward a more rich mix of media and brand content. Company carefully integrates its many communications channels Recognizing all touchpoints where the customer may encounter the company and its brands Consistent, clear, and compelling company and brand messages

1.Identifying the Target Audience 2.Determining the Communication Objective Decide what response is sought The target audience may be in any of six buyer readiness states: Awareness Knowledge Liking Preference Conviction purchase 3.Designing the Message Effective message :should get attention, hold interest, arouse desire, and obtain action What to say (message content), how to say it logically (message structure), and how to say it symbolically (message format) 3.Designing the Message Message content Appeal /theme Rational appeals relate to audience self-interest Emtional appeals attempt to provoke emotions that motivate purchase Moral appeals are directed to the audience's sense of what is right and proper Message structure The communicator must also decide how to handle three message structure issues: Whether to draw a conclusion or leave it to the audience Whether to present a one- or two-sided argument Whether to present the strongest arguments first or last. Message Format The communicator also needs a strong format for the message Use novelty and contrast, eye-catching pictures and headlines, distinctive formats, message size, position, color, shape, and movement If the message is to be carried over the radio, the communicator has to choose words, sounds, and voices 4.Selecting Communication Channels Personal Communication Channels Two or more people communicate directly with each other Face to face, on the phone, via mail or e-mail, or even through an Internet chat -Allow for personal addressing and feedback. Nonpersonal Communication Channels Media that carry messages without personal contact or feedback They include media, atmospheres, and events -Major media consist of print media, display media, and online media -Atmospheres are designed environments that create or reinforce the buyer's leanings toward purchasing a product -Events are occurrences staged to communicate messages to target audiences 5.Selecting the Message Source The message's impact on the audience is also affected by how the audience views the sender Messages delivered by highly credible sources are persuasive What factors make a source credible? The three factors most often found are expertise, trustworthiness, and likability 6.Collecting Feedback After sending the message, the communicator must research its effect on the target audience This involves asking the target audience whether they remember the message, how many times they saw it, what points they recall, how they felt about the message, and their past and present attitudes toward the product and company

Seems legit Allows repetiton Builds long term image Low cost per exposure

Impersonal One-way communication Easily ignored Can be very costly

The process by which a positive image and customer preference are created through third-part endorsement Low cost (Planning/management) Effective because they are not seen as ___COMMERICAL_____________messages

Social media has proven to be a great way to reach thousands of customers and potential customers. Today, most PR campaigns use Internet: Web sites, blogs, and social networks such as YouTube, Facebook, and Twitter are providing interesting new ways to reach more people. Social media has increasingly become mainstream media, particularly for younger consumers of hospitality and tourism. Media familiarization trips are now more about journalists sharing their experiences instantly to their audiences. There is now more networking and pitching with journalists via social media across all platforms. Social media has affected communication with international journalists. A personal relationship is developed.

The aim of press relations is to place _newsworthy_______________ information into the news media to attract attention to a person, product, or service One reason for the growth of press relations in the hospitality industry is its credibility

Product publicity involves various efforts to publicize specific products

covers _internal and external communications and promotes understanding of the organization Companies also need to manage their communication with their stockholders to make sure the stockholders understand the company's goals and objectives

involves dealing with legislators and government officials to promote or defeat legislation and regulation

...involves advising management about public issues and company positions and image Counseling is important when there may be sensitive issues associated with the business

Effective PR is the result of a process - a process that must be integrated with the firm's marketing strategy The PR process consists of the following steps: 1) Research understand the company's mission, objectives, strategies, and culture know the vehicles that will be effective in delivering messages to the target audience Environment 2) Establishing the Marketing Objectives Build _awareness____________ Build credibility Stimulate the sales force and channel intermediaries Lower promotion costs 3) Defining the Target Audience Effective PR practitioners carefully identify the publics they wish to reach They study these publics and find media that can be used to deliver their message They identify issues that will be important to the public and form the message so it will seem natural and logical to the target audience 4) Choosing the PR Message and Vehicles The PR practitioner is now ready to identify or develop interesting stories about the product or service Each event is an opportunity to develop a multitude of stories directed at different audiences 4) Choosing the PR Message and Vehicles Publications Annual reports, brochures, cards, articles, audiovisual materials, and company newsletters and magazines Events News 5) Public services activities Social responsibility e.g. a fast food co. donating 5 cents from every sandwhich purchased on a certain day 6) Implementing the Marketing PR Plan Implementing publicity requires care Consider the matter of placing information in the media A chief asset of publicists is their personal relationship with media editors 7) Evaluating PR Results The contribution of PR is difficult to measure because it is used along with other promotion tools Exposures: number of exposures created in the media Awareness/Comprehension/Attitude Change Sales-and-Profit Contribution

Sales promotion consists of short-term incentives to encourage the purchase or sale of a product or service Includes a variety of promotional tools designed to stimulate earlier or stronger market response

The traditional forms of direct marketing used in the hospitality industry are direct-mail marketing, telephone marketing, and kiosk marketing

Involves sending an offer, announcement, reminder, or other item to a person at a particular address Direct mail is by far the largest direct marketing medium Direct mail is well suited to direct one-to-one communication It permits high target market selectivity, can be personalized, is flexible, and allows easy measurement of results

Involves using the telephone to sell directly to consumers and business customers Properly designed and targeted telemarketing provides many benefits, including purchasing convenience and increased product and service information However, the explosion in unsolicited outbound telephone marketing over the years annoyed many consumers

As consumers become more and more comfortable with computer and digital technologies, many companies are placing information and ordering machines—called kiosks (in contrast to vending machines, which dispense actual products)—in stores, airports, and other locations

lets viewers interact with television programming and advertising using their remote controls iTV gives marketers an opportunity to reach targeted audiences in an interactive, more involving way

To build long term relationships with customers. All the company's departments work together as a team to serve customer Marketing tools -Financial benefits -Social benefits -Structural changes When it comes to relationship marketing, you don't want a relationship with every customer A company should develop customer relationships selectively figure out which customers are worth cultivating

Continued patronage of loyal customers More frequent purchase Purchase broader variety of items Make more purchase Partnership activities of loyal customers Reduced marketing costs Less likely to switch with price increase

Objective: to change customer behavior. e.g. to purchase more frequently, to purchase higher dollar amount, and to spread positive word of mouth Advantage: Companies can gain information that will develop systems and products to better serve their guests -> done by tracking customer's expenditures/ discussion with loyal customers

Marketing via the Internet using company Web sites, online advertising and promotions, e-mail marketing, online video, and blogs. Web Sites and Branded Web Communities To engage customers and move them closer to a direct purchase or other marketing outcome To present brand content that engages consumers and creates customer-brand community Online Advertising Display ads and search-related ads E-mail Marketing Ultimate direct marketing medium Marketers can send highly targeted, tightly personalized, relationship-building messages Online Videos Engage consumers and are a form of inexpensive marketing Can go viral and harbor a vast amount of attention. Blogs and Other Online Forums Online journals where people and companies post their thoughts and other content They usually appeal to specific special-interest groups

Targeted and personal-they allow marketers to create and share tailored brand content with individual consumers and customer communities Interactive- making them ideal for starting and participating in customer conversations and listening to customer feedback Immediate and timely Social media can be very cost effective

Companies are still experimenting with how to use them effectively Results hard to measure Largely _____________controlled

User generated content is valuable, whether it is positive or negative The positive comments create community and encourage others to use the product The negative comments provide feedback on what customers do not like and how we did not meet their expectations. These comments help us improve the service delivery system

organized collection of comprehensive data about individual customers or prospects, including: Geographic data/ Demographic data/ Psychographic data/ Behavioral data

The products and services the customer has bought Past volumes and prices Key contacts Competing suppliers Status of current contracts Estimated customer spending for the next few years Assessments of competitive strengths and weaknesses in selling and servicing the account Good customer database can be a potent relationship building tool.

Core

The added value endowed on products and services is the:

Product development

true

true

Provide a connection between the firm and its customers

true

global distribution system

Online Travel Agencies

True

sales promotions

________ advertising is used when introducing a new product.

reach

rational

false

True

Replace most other promotion costs

coupons

Corporate communication

false

false

Direct marketing

marketing website

Nearly every socioeconomic group has adopted the web

FALSE

GROUP GUIDELINE ORDER

1. Project Goal and objectives (one paragraph or as needed) 2. Project methods (One to two paragraphs or as needed) 3. Background Analysis (4 pages, single-spaced, including tables and diagrams that you may need). By interviewing the management and conducting other research activities, you are required to provide a) a critical assessment of your business's overall marketing and brand strategies; b) a critical analysis of the effectiveness of your business's current online strategies and the alignment of online strategies with its overall marketing strategy; c) a critical analysis of the competitive situation; d) a discussion of a benchmarking company's online and especially social media presence and effectiveness. 4. Online Social Media Strategy recommendations and Sample Content Creation. You are to provide online social media campaign strategies for the company. Please create sample contents (textual and visual) for illustrative purposes. Please explain the rationale for your creations and explain why they will be effective. 5. Please list your reference in APA format. 6. Please include your worksheets as appendices at the end of the report.

objectives setting Budget Decisions Message Decisions and Media Decisions Campaign Evaluation

used heavily when introducing a new product or when the objective is to build primary demand

becomes more important as competition increases

is important for mature products because it keeps customers thinking about the product. Example mccdonalds commericals are not to inform or persuade, its to remind them that mcdonalds is there.

creating advertising messages and selecting advertising media.

a name, term, sign, symbol, design, or combnation of these elements that is intended to identify the goods or services of a seller and differenciate them from competitors

the process of endowing products and services of a with the power of a brand. Its all about creating differences between products.

the marketers vision of what the brand must be and do for consumers

by acquisition or new product development

An open innovation new product idea program

When Where To whom? How?

A better approach is to think of the supply chain as a _________ where all parties partner with each to improve the performance of the entire system

Disintermediation: decreasing role of traditional travel intermediaries E-commerce M-commerce

1.decide the size of the incentive 2. set the conditions for participation 3. decide how to promote and distribute promotion program 4. set promo dates 5. decide on the sales promotion budget