1 / 18

HOTEL MANAGEMENT THE EXTENDED MARKETING MIX

HOTEL MANAGEMENT THE EXTENDED MARKETING MIX. The Extended Marketing Mix. Marketing Mix - People. People refers to your customer service staff and the attitude and appearance that is reflective of your organization, or perceived by your customer.

stella
Download Presentation

HOTEL MANAGEMENT THE EXTENDED MARKETING MIX

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. HOTEL MANAGEMENTTHE EXTENDED MARKETING MIX

  2. The Extended Marketing Mix

  3. Marketing Mix - People People refers to your customer service staff and the attitude and appearance that is reflective of your organization, or perceived by your customer. You cannot have strong corporate image without good people; good people that listen to your customers, and good people that communicate those comments, concerns, and needs to your entire organization. Your people can determine whether your customer will return.

  4. Marketing Mix - People • How to develop PEOPLE into a competitive advantage? • Recruitment and selection – choose the right people for the right job (with good attitude) • Training – product knowledge, customer service skills and the processes • Development – prepare employees to take on greater roles and responsibilities in future • Compensation – do not underpay in terms of salaries and benefits.

  5. Marketing Mix - People • How to develop PEOPLE into a competitive advantage? • Treatment– treat employees well with dignity and respect • Working environment - provide a safe and comfortable working environment, foster teamwork and cooperation • Empowerment – allow employees the power to • make decisions that enables them to • serve customers better, make employees • accountable for their actions

  6. Marketing Mix - Process Procedure, mechanism and flow of activities by which services are used. Also the 'Procedure' how the product / service will reach the end user. Always focus on simplifying the process for your prospective customers. All processes can be represented by the Value Chain.

  7. Marketing Mix - Process • How to make PROCESS a competitive advantage? • Simplify – make processes simple for customers to understand and perform • Convenient – make processes convenient for customers from their perspective (not the hotel or employees) • Reduce waiting time – do not let guests wait too long for the service

  8. Marketing Mix – Physical Evidence • The elements of 'marketing mix' which customers can actually see or experience when they use a service. • Contribute to the perceived quality of the service

  9. Marketing Mix – Physical Evidence • Include the following elements: • Furniture and furnishing of the rooms and all public areas • Façade and appearance of hotel building itself • Brochures, paperwork and stationery • Lighting and ambience • Signage • Temperature and noise • Appearance of staff • Web pages • Appearance of advertisements

  10. Marketing Mix – Physical Evidence Physical Evidence must go in line with the positioning of the hotel. A luxury hotel MUST appear luxurious! A budget hotel however does not need to look cheap! Physical evidence must make the customer perceive the hotel offers value and comfort.

  11. Marketing Mix – Pricing • Three C of Pricing • Competition • Costs • Customers’ Comfort Zone • Competition is a dominant factor – Hotel cannot price itself out of the market / The prices must not differ too much from other hotels of similar standards

  12. Marketing Mix – Pricing Pricing based on Costs • Determine the operating costs of the hotel • Classify into fixed costs and variable costs - fixed costs – do not change in relation of volume / level of activity - examples: rent, salaries, depreciation, insurance - variable costs – increase in relation to volume / level of activity - examples: consumable stores, water and electricity

  13. Marketing Mix – Pricing Pricing based on Costs Determine the targeted profits and occupancy level Calculate the targeted pricing using the formula: Fixed Cost + Targeted Profit Contribution per room night Where Contribution = Selling Price less Variable Costs

  14. Marketing Mix – Pricing Pricing based on Costs Determine the targeted profits and occupancy level Calculate the targeted pricing using the formula: Fixed Cost + Targeted Profit Contribution per room night Where Contribution = Selling Price less Variable Costs

  15. Example : Cost Plus Pricing A hotelier runs a 50 room budget hotel. The average room rate is $25 per room night Budgeted monthly costs are as follows: Depreciation $2,000 Fixed utilities $1,000 Salaries $17,000 Repairs and maintenance $1,000 Stationery and Printing $1,000 Advertising $3,000 Consumable materials and variable utilities $5 per room night.

  16. Example: Cost Plus Pricing Calculate the breakeven in room nights and sales. If the hotelier expects at least 60% occupancy rate, what should he do?

  17. Other Pricing Strategies Hit or Miss • record occupancy rate at each pricing level • analyze the collected information periodically to determine which level was most profitable • set rate at the most profitable

  18. Other Pricing Strategies Percentage increase • list rates charged in the previous year • adjust for inflation and payroll increase Pied Piper • set rates according to what other hotels in the area are asking for comparable accommodation

More Related