HTM231 Exam 2

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Core Products
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.
Facilitating products
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
Supporting products
Extra products offered to add value to the core product and help to differentiate it from the competition. Examples: Room Service and concierge services.
Augmented product
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.
Brand Equity
Brands are more than just names and symbols, they are a key element in the company’s relationships with consumers
Brand positioning
Marketers need to position their brands clearly in target customers’ minds
Product attributes/ Desirable benefit/ Beliefs and values
Marriot: travel brilliantly healthy bending
Brand Name selections
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
Leveraging Brands
employing co-branding and ingredient branding.
Another form of co-branding
same-company or retail co-branding in which two retail establishments use the same location to optimize space and profits.
Brand Portfolios
the set of all brands and brand particular category or market segment
Idea Generation
New-product development starts with______.
The purpose of_____ is to create a large number of ideas.
Idea Screening
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
Concept Development and Testing
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
. Marketing Strategy
Designing an initial ______ for introducing the product into the market
Business Analysis
involves a review of the sales, costs, and profit projections to determine whether they satisfy the company’s objectives
Product Development
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
Test marketing
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.
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
To Whom?
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
Product Development
Product Deletion
If a product is no longer profitable, it is important to TERMINATE rather than continue to pour time and resources into reviving it
Product Deletion
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
Drop it
It is best to drop the item rather than continuing to create unhappy customer
Upstream Partners
are firms that supply what is needed to create a product or service
Downstream partners
connect the firm with its customers
Value Delivery Network
where all parties partner with each to improve the performance of the entire system
Distribution Channel Functions
Information-promotion-contact-matching-negotiation-physical distribution-Financing-Risk Taking
Major hospitality distribution channels
direct booking
Travel agents
Travel wholesalers
Retail Travel agencies
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)
Global distribution systems (GDSs) are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products
Travel wholesalers
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).

Chinese Tour Operator
-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

Corporate travel agencies
Works for corporate clients
Goal: cost efficiency (corporations’ travel expenditures)
-Coordinating corporate travel arrangements to maximize the efficiency of corporations’ travel expenditures
Restaurant Distribution Channels
Online Reservations-Open Table

Delivery, Take-out, Drive-through window
-Food delivery platform powered by Uber

Why do we need distribution channels?
1. Retailing at locations convenient for travelers
2. Expanding distribution network.
3. Providing specialized knowledge
Recent trends
Disintermediation: decreasing role of traditional travel intermediaries
Marketing to intermediaries
Is in essence B2B marketing
3 steps:

Research and select travel segments
Decide on the positioning approach and objectives
Establish a promotional mix

Research and select trade segments
Where do our clients come from? Specific cities/areas.
Who provides business to us?
B2B Positioning
It is equally important to create a distinctive image for the intermediaries
IHG: IHG Commission Guarantee
Promotional mix
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

The promotion Mix
Public relations
Direct and Digital Marketing
Sales promotions
Personal Selling
A company’s total promotion mix=
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
Direct and digital marketing
Engaging directly with carefully targeted individual consumers
Sales promotion
Short-term incentives to encourage the purchase or sale
Personal selling
Personal presentation by the firm’s sales force
Public relations
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
More companies adopting integrated marketing communications (IMC)
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
Steps in developing effective communications
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:
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

Advertising Benefits
Seems legit
Allows repetiton
Builds long term image
Low cost per exposure
Draw backs of advertising
One-way communication
Easily ignored
Can be very costly
Public relations
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

PR changes due to social media
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.

Press relations
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
Product publicity involves various efforts to publicize specific products
Corporate Communication…..
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
pr process
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

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
Annual reports, brochures, cards, articles, audiovisual materials, and company newsletters and magazines

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 promotions
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
Direct marketing
The traditional forms of direct marketing used in the hospitality industry are direct-mail marketing, telephone marketing, and kiosk marketing
Direct-Mail 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
Telephone Marketing
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
Kiosk Marketing
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
Interactive TV (iTV)
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
Relationship marketing and loyalty programs
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
Benefits of marketing and loyalty programs
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
Relationship Marketing and Loyalty Programs
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
Online marketing
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

Social Media Marketing Advantages
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
Social Media Marketing Challenges
Companies are still experimenting with how to use them effectively
Results hard to measure
Largely _____________controlled
Managing User Generated Social Media Content
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
Customer database:
organized collection of comprehensive data about individual customers or prospects, including:
Geographic data/ Demographic data/ Psychographic data/ Behavioral data
In business-to-business marketing, the customer profile might contain:
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.
The ________ product level answers the question of what is really being bought.
Brand Equity
The added value endowed on products and services is the:
In the ________ phase of the new product development process prototypes appear for the first time.
Product development
Companies can leverage an existing brand by employing co-branding and ingredient branding.
Phase-out is the ideal way of removing a product from the market.
In a supply chain, “downstream” from the company is a set of firms that:
Provide a connection between the firm and its customers
The primary reason for the use of intermediaries is their superior efficiency in making goods available and accessible to target markets
_______ are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products.
global distribution system
OTA stands for:
Online Travel Agencies
a direct marketing channel has no intermediary level.
The promotional tool that rewards customers for a quick, short-term response is:
sales promotions
________ advertising is used when introducing a new product.
________ is a measure of the percentage of people in the target market who are exposed to an ad campaign over a given period of time.
The type of message appeal that relates to an audience’s self-interest is:
Sales promotions are most effective in building long-run brand preferences.
Samples do not have to be free
Public relations campaigns can contribute to all but which of the following objectives?
Replace most other promotion costs
________ are certificates that offer buyers savings when they purchase specific products.
____ covers internal and external communications and promotes understanding of the organization:
Corporate communication
The first step in the sales promotion process is setting the conditions for participation.
Even with the advent of Internet marketing, the role of direct marketing has stayed the same.
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships are known as:
Direct marketing
Which of the following is NOT a form of direct marketing?
marketing website
Nearly every socioeconomic group has adopted the web
Viral marketing can be very expensive and is ineffective.
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
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.
Major Decisions in advertising
objectives setting
Budget Decisions
Message Decisions and Media Decisions
Campaign Evaluation
Informative adversting
used heavily when introducing a new product or when the objective is to build primary demand
Persuasive advertising
becomes more important as competition increases
Reminder advertising
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.
Two Major elements of advertising strategy:
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 brand promise
the marketers vision of what the brand must be and do for consumers
A company can obtain new products
by acquisition or new product development
An open innovation new product idea program
To whom?
Value Delivery Network
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
Recent Trends
Disintermediation: decreasing role of traditional travel intermediaries
Sales promotion process
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

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