HTM231 Exam 2
Facilitating products for one market segment may be supporting products for another. Examples: beds, staff, location
Accessibility, atmosphere, customer interaction with the service organization, customer participation, and customers’ interaction with each other. Examples: Hilton rewards, hotel points etc.
Product attributes/ Desirable benefit/ Beliefs and values
Marriot: travel brilliantly healthy bending
(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
The purpose of_____ is to create a large number of ideas.
The idea or concept _____ stage is the appropriate time to review carefully the question of product line compatibility
It is important to distinguish between a product idea, a product concept, and a product image
One problem with developing a prototype is that the prototype is often limited to the core product
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
The first decision is whether it is the right time to introduce the new product
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
Within the rollout markets, the company must target its promotion to the best prospect groups
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
The ideal method; it enables a product to be removed in an orderly fashion
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
It is best to drop the item rather than continuing to create unhappy customer
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)
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 the US to retailer in China who is coming from China. (Outbound)
Opaque OTA: do not disclose the brand and specific hotel one is purchasing until it is purchased in a nonrefundable transaction with the consumer
Goal: cost efficiency (corporations’ travel expenditures)
-Coordinating corporate travel arrangements to maximize the efficiency of corporations’ travel expenditures
Delivery, Take-out, Drive-through window
-Food delivery platform powered by Uber
2. Expanding distribution network.
3. Providing specialized knowledge
Research and select travel segments
Decide on the positioning approach and objectives
Establish a promotional mix
Who provides business to us?
IHG: IHG Commission Guarantee
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
Direct and Digital Marketing
Consists of tools to communicate customer value and build customer relationships.
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
2.Determining the Communication Objective
Decide what response is sought
The target audience may be in any of six buyer readiness states:
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
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
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.
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
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
Builds long term image
Low cost per exposure
Can be very costly
Low cost (Planning/management)
Effective because they are not seen as ___COMMERICAL_____________messages
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.
One reason for the growth of press relations in the hospitality industry is its credibility
Companies also need to manage their communication with their stockholders to make sure the stockholders understand the company’s goals and objectives
Counseling is important when there may be sensitive issues associated with the business
The PR process consists of the following steps:
understand the company’s mission, objectives, strategies, and culture
know the vehicles that will be effective in delivering messages to the target audience
2) Establishing the Marketing Objectives
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
Annual reports, brochures, cards, articles, audiovisual materials, and company newsletters and magazines
5) Public services activities
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
Includes a variety of promotional tools designed to stimulate earlier or stronger market response
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
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
iTV gives marketers an opportunity to reach targeted audiences in an interactive, more involving way
All the company’s departments work together as a team to serve customer
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
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
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
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
Display ads and search-related ads
Ultimate direct marketing medium
Marketers can send highly targeted, tightly personalized, relationship-building messages
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
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
Results hard to measure
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
Geographic data/ Demographic data/ Psychographic data/ Behavioral data
Past volumes and prices
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.
1. Group Formation
2. Interview with contact/Physical inspection
3. Business online presence/strategy analysis, competitive and Bench-marking Analysis
4. Consumer research/Social media SWOT
5. Online strategy recommendations and social media content creation
6. Oral report
7. Final report and other written supplementary materials
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.
Message Decisions and Media Decisions
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
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