Chapter 5: Hospitality Sales & Marketing

1. Chapter 5: Hospitality Sales & Marketing 5.3: The Four Ps of Marketing

2. What Managers Must Determine & Four Ps of Marketing • Managers must determine: • What current and potential customers need or want • How to provide it • Hot to persuade current and potential customers to patronize the hotel • The Four Ps of marketing are: • Product • Place • Price • Promotion

3. Hospitality Operation Product • Product can mean many different things. • It can be a meal or a room. • It could also be a service, such as the presentation of a meal. • Product can also refer to the hotel or restaurant’s concept.

4. Place in Hospitality Marketing • Place first refers to the physical location of the business. • Place also refers to the site where the reservation is made. I can be via a central reservation office, a travel agency, or the Internet.

5. Pricing Methods • Two of the main approaches to setting prices are cost-plus pricing and customer-based pricing. • Cost-plus pricing is when a hotel determines its actual costs, then adds on a reasonable percentage to arrive at the final retail price. • Customer-based pricing is when a hotel determines what customers want and what they’re willing to pay and then figure out a way to deliver it. • Yield management is a way to manage pricing that changes based on availability, discount programs, sales promotions, and other variables.

6. 6 Categories of Promotional Activity • Personal selling • Advertising • Public relations • Sales promotions • Direct marketing • Point-of-purchase communications

7. Integrated Marketing Communications • Integrated marketing communications is a model whereby all promotional activities are managed together so that the messages sent to employees, customers, the media, and others are consistent. They also are all coordinated to ensure they achieve the overall mission of the organization. • Marketing and sales managers must understand the individual strengths and weaknesses of each activity so they can deliver a result greater than the sum of its parts.

8. Assignments • Complete the Apply Your Learning 5.3, page 140/141, questions 1-4 • Complete the Section 5.3 Workbook assignments: • Do You Remember?, page 72 • Case Study: Reviving Revenue Management, page 73 • Add it Up!: Placing a Price, page 75

9. Do you remember? • Time for the Chapter 5.3 quiz. • This is an open book quiz. This must be completed prior to the Chapter Test. It may only be submitted once. Be sure you have reviewed your quiz BEFORE you click the submit button! Chapter 5.3 Quiz Link