Marketing strategies and tools that affect hotel sales - Literature review Example

?Marketing strategies and tools that affect hotel sales Introduction The main key to success for any firm is the application of appropriate business strategy. To ensure high customer base along with substantial growth in business, a firm needs to devise several strategies regarding the production process, marketing, distribution etc. and efficiently implement them. Among all these strategies, proper planning regarding marketing of the products is very crucial for creating demand in the markets. Unless an appropriate marketing technique is adopted by a firm, it would not be able to attract customers towards its products and business would automatically fail. Now marketing is quite a broad area which embraces various aspects like price, place, promotion and product. These four aspects form a marketing mix of a firm. As far as the issue of marketing communications is concerned, it actually refers to the area of ‘promotion’ in a marketing mix. In most of the business organizations, marketing communication strategies are found to be in integrated form in the sense that it combines several aspects together. Just like has the broad area of marketing itself, marketing communication also has a mix. Under a marketing communications mix, different elements of communications are incorporated in different quantities to form a campaign. A marketing communications mix comprises of elements like sales promotion, publicity, advertising, direct marketing, e-marketing, branding, and sponsorships and so on. All these elements are generally referred to as marketing communications tools. One wants to become successful financially for this all spheres of business, such as in hotel industry, should have their own respective strategies through which they will carry out their plans. This chapter is based on the effective differences and similarities between the product based and the service based marketing. Along with detail discussion of certain terms and concepts, we shall also provide you with some samples on target advertisement, which will be created by us to examine group marketing and leisure. Lastly, what we shall do is to check on the areas where there shall be future prospect and growth opportunities may exist. (Imrie and Fyall, 2001; Dev, Zhou, Brown and Agarwal, 2009; Leong, 2008; Bell, 1993; ). The Differences between Marketing and Sales Sales and marketing are both critical concepts and very important. The involvement of marketing is more. Marketing process includes sales, but marketing is a long-term process and is strategic in nature. The target market includes some specific activities of sale present in the market plan. Advertisements forms the most common part of strategies oriented in tangible marketing. If you have the advertisement setup in an effective condition, the foundations for the department of sales are laid then for the business. Well, this is true that advertisement forms only a single entity, a large, albeit internal part of marketing. (Sin et al. 2006) The Four P’s of Marketing – the Marketing Mix The definition of marketing mix is given as factors, which play an influential role in the process of sales. If they are combined with each other then they become a strategy, which are thereby controllable as marketing tools. These marketing tools are designed for the creation of demand for the various services and products. (Dev etc al, 2007) Product: the tangible as well as the intangible aspects are featured or designed. Place: the process of accessibility of the various hospitability products in the defined area. Promotion: effectiveness on the masses of the various products or the ability to sales in a proper way Price: every target market has a rate to pay for the product as well as the hotel prices, banquets and other areas for negotiation (where one receives management services). (Oh and Pizam, 2008; Bowie and Buttle, 2004) You will get to see it in figure 1, which deals with various ways and techniques these suggested four P’s work in the field to yield the most out of the market objectives for the various marketing strategies in the marketing sector. The Marketing Plan Numerous people write marketing plans in different period and placing in the marketing management of the hotel. A writer stated that he had been a part of a hotel as a marketing as well as sales director, which was combined into one character as a whole. Most of the hotel organizations do have charts where this particular position is being combined into one such huge position at a level where the individual property is there. In such a vital case the director of sales and marketing do report their information to the regional or the vice-president of the corporate level who is able to provide information regarding the plan of the market and the related notice. (Deshpande and Farley , 1998; Donaldson, 2000; Kohli and Jaworski, 1990) The plan of the market or the marketing plan is none other than a guide, which will monitor and guide the advertising, sales, and programs made for promotional purposes for all the revenue centre is where the business shall be made. This particular plan helps all the management sectors to be in a proactive mode and the adjustments required for the changes or for the need of the masses or the customers. This makes the mangers as well as the management think of coordinating efforts and divide the work equally. This strategy also includes various different plans and programs, which the market shall adopt hereby. This adoption of new strategies shall enhance the business and will help in the increment of sales and products. Most of the plans of the marketing sector cover a total of three years plan. The directors of sales and marketing do have some other opinion; they feel the plan should be made pertaining to a year only. The place where the actual marketing take place keeps on changing hence the plan should also change annually. Hence it is advisable not to keep any upgrade dversion of plan which will work for a longer year rather some short term goals and plans should be incorporated in order to survive in this competition. (Moorman and Rust, 1999; Piercy, 1998, Dev et al, 2008). The four Ps of marketing of a hotel Figure 1 A well documents ad written marketing plan of a hotel should consist of the following things: Executive Summary: A very brief and important summary of the outline of the business plan and strategy has to be made which shall also include the different accommodations and the adjustments needed for the market to survive. There should be a review section and a table, which has all the contents. (O’Neill and Xiao, 2006; Peter and Olson, 2005; Gilmore and Pine, 2002). Current Market Situation: the situation should be able to describe upon the target markets and the area specified for this target. The list shall also have the current analysis of the specific place of the market, property in hand and various such other important analyses. The determination of the weaknesses as well as the strength has to be made effectively. (O’Neill and Xiao, 2006; Peter and Olson, 2005; Gilmore and Pine, 2002). Opportunity Analysis: it alters any such challenges and the viable possibilities of the market, which has been anticipated during the time when the plan could have a greater impact. Establishments of marketing objects: the establishment of the market is the desirable time and period and the important key issues, which would have affected the market strategy. (Gilmore and Pine, 2002). Marketing strategy: this specifies the area as to how these objectives shall be taken care of and shall be achieved in the midst of such competition. This also includes the huge expenditure in dollar and the related advertisements. The plans should be specified in a way such that it is not prone to any threats or any of the opportunity that related to the plans of the market. None of the marketing strategy should be left; one should take care of all the nooks and corners. It shall also describe the possibilities as to how shall one meet with the beautification of the banquets and the hall. (Hartman and Beck-Dudley, 1999; O'Neill, Hansonm and Mattila, 2008; O'Neill and Mattila, 2008) Action program: what shall be the hit on target program and how to deal with it is the main criteria or the concern for it. How shall one implement all the plans and attack of the market strategy and how shall one go for it. Who are the person who will be involved in this case and how shall the associated programmers work, what will be the session for budgeting and all other concerned programs has to be kept in mind else the main hit point shall not be discussed further. One should not forget this that the budget program shall in no case include any non valuable programs and it should no way forget to include the most important factor which is the factor of the revenue. Once this plan and program is been approved by the head or the manager then no changes shall take place further in this plan. Thus we consider thou particular plan as successful. (Hansonm and Mattila, 2008; O'Neill and Mattila, 2008) Controls: it helps in outlining the control area and the expression of the monitor. It also sets in for calculations and implementations for further programs and applications. These implications are needed when the revenue results are wrong or the market society is changing in a rapid condition. The traditional calculation and the plan include such programs such as booking of rooms and banquet halls.( Hansonm and Mattila, 2008; O'Neill and Mattila, 2008) Putting a Marketing Plan into Action if the plan has been approved or sanctioned by the manager then the implementation starts for each of the specified sector of the plan. The implementation is done very minutely in this regard. Each of the specific programs have their own field and knows how to control there respective revenues.( Hansonm and Mattila, 2008; O'Neill and Mattila, 2008) Marketing Positioning Here we try to follow the programs and strategies of the two different hotels. We check on the plans and the implementation of these two hotels on their respective area. Both of these hotels have a monthly planner and they run their business this manner. They try to prove themselves in the field of the segmented media. The media socially the print media plays a very crucial role in this marketing sector. The westin plaza on the south cost tries to attract those customers who are willing to take on luxury and they try ti enjoy that amount of luxury which no other customers ever receive, not only this they also want some amount of pictures and images along with them. These pictures and images will help them to know the upgraded services which they will receive. On the contrary there is Sheraton Four points. This particular hotel believes in the convenience and value of the customer. They are accurately targeting the sector like the airport and the planner along with it. (Oh and Pizam, 2008; Bowie and Buttle, 2004) References: 1. Imrie, R. and A. Fyall. (2001). Independent mid-market UK hotels: Marketing strategies for an increasingly competitive environment. Journal of Vacation Marketing, vol. 7, 1: pp. 63-74. 2. Dev, C., Zhou, K. Z. , Brown, J. and Agarwal, S. (2009). Customer Orientation or Competitor Orientation: Which Marketing Strategy Has a Higher Payoff for Hotel Brands? Cornell Hospitality Quarterly; vol. 50, 1: pp. 19-28. 3. Leong, c. Marketing practices and Internet marketing: A study of hotels in Singapore. Journal of Vacation Marketing, vol. 7, 2: pp. 179-187. 4. Bell, R. A. (1993). Corporate Travel-Management and Hotel-Marketing Strategies. Cornell Hotel and Restaurant Administration Quarterly, April 1993; vol. 34, 2: pp. 30-39. 5. Sin, L. Y. M., Tse, A. C. B., Chan, H., Heung, V. C. S., and. Yim, F.H. K. (2006). The Effects of Relationship Marketing Orientation on Business Performance in the Hotel Industry . Journal of Hospitality & Tourism Research, vol. 30, 4: pp. 407-426. 6. Dev, C. S., Brown, J. R. and Zhou, K. Z. (2007). Global Brand Expansion: How to Select a Market Entry Strategy. Cornell Hotel and Restaurant Administration Quarterly, vol. 48, 1: pp. 13-2. 7. Dev, C. S. and Zhou, K. Z. (2008). Marketing Today: A Survey of the Marketing Function in International Hotel Firms Cornell Hotel and Restaurant Administration Quarterly, vol. 19, 4: pp. 39-45. 8. O'Neill, J. W., Hanson, B. and Mattila, A. S. (2008). The Relationship of Sales and Marketing Expenses to Hotel Performance in the United States. Cornell Hospitality Quarterly, vol. 49, 4: pp. 355-363. 9. O'Neill, J. W. and Mattila, A. S. (2010). Hotel Brand Strategy. Cornell Hospitality Quarterly, vol. 51, 1: pp. 27-34. 10. Hartman, C. L. and Beck-Dudley, C. (1999). Marketing Strategies and the Search for Virtue: A Case Analysis of the Body Shop, International. Journal of Business Ethics, Vol. 20, No. 3: pp.249-263. 11. Gilmore, J. H., and J. Pine. (2002). Differentiating hospitality operations via experiences. Cornell Hotel and Restaurant Administration Quarterly. Vol. 43, No. 3: pp. 87-96. 12. Peter, J. P., and J. C. Olson. 2005. Consumer behavior & marketing strategy. New York: McGraw-Hill/Irwin. 13. O’Neill, J. W., and Q. Xiao.(2006). The role of brand affiliation in hotel market value. Cornell Hotel and Restaurant Administration Quarterly. Vol. 47, no. 3: pp. 210-23. 14. Piercy N. F. (1998). Marketing implementation: The implications of marketing paradigm weakness for the strategy execution process. Journal of the Academy of Marketing Science, Vol. 26, No. 3: 222-236. 15. Moorman, C. and R.T. Rust. (1999). The role of marketing. Journal of Marketing 63 (Special Issue): 180-97. 16. Kohli, A. K., and B. Jaworski . (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing 54 (2): 1-18. 17. Donaldson, L. 2000. The contingency theory of organizations. Thousand Oaks, CA: Sage. 18. Deshpande, R. and J. U. Farley . (1998). Measuring market orientation: Generalization and synthesis. Journal of Market-Focused Management 2 (3): 213-32. 19. Bowie, D. and Buttle, F. (2004). Hospitality marketing: an introduction. Butterworth-Heinemann. 20. Oh, H. and Pizam, A. (2008). Handbook of Hospitality Marketing Management. Butterworth-Heinemann. Read More