Sales & Marketing

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Merchandising

‘Merchandising’ is defined as the selection and display of goods in a retail outlet. An increasing number of hospitality businesses are creating product ranges using their logo, name, or reputation. Whilst these will bring in additional revenue, it is likely that the promotional benefits of spreading the organization’s name are actually more valuable. Destination and boutique hotels such as The Savoy, London, Gleneagles, Auchterarder, and The Scotsman hotel, Edinburgh, offer a range of items for guests to purchase.

Media markets

The area and persons receiving media messages via media outlets such as television, radio, and newspaper are commonly referred to as media markets. Media messages come in many forms such as motion pictures, sound recordings, books, newspapers, magazines, and the Internet. In regard to marketing, these messages are in the form of advertising within the various media outlets. Media markets are frequently discussed in regard to advertising and programming because media markets identify the persons that can be reached by an advertisement or program.

Marketing research

Marketing research is the systematic process of collecting and analyzing information in an attempt to reduce the uncertainty surrounding marketing decisions. The first step in the marketing research process is to define the problem. The researcher determines the problem from the marketing manager’s perspective and then translates it into a research problem. Once the research problem has been defined, the second step is to plan the research. Secondary data analysis is the process of reviewing existing information that is related to the research problem.

Marketing Information System

A Marketing Information System (MIS) is a routine, planned, gathering, sorting, storage, and retrieval system for market information relevant to the operation of a particular business. A marketing information system is intended to bring together disparate items of data into a coherent body of information. As Kotler’s definition says, an MIS is more than a system of data collection or a set of information technologies:

Marketing concept

The marketing concept is the idea that a business should be intuitively aware of its customers’ needs and wants and practice a management style that revolves around these items. The four bases of the marketing concept are (1) customer orientation, (2) integrated company effort, (3) profit or goal orientation, and (4) social responsibility. The philosophy implies that a firm’s success is dependent upon its ability to understand its customers, deliver value to its customers, have employees that are customer oriented, and be more effective and efficient than its competitors.

Marketing

The American Marketing Association defines marketing as ‘the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services, to create exchanges that satisfy individual and organizational objectives’ (Bennett, 1989). Important in this definition is that marketing involves a planning process that begins before the product or service is created. In addition to the development of an idea, product, or service, marketing includes the development of pricing, promotion, and distribution plans.

Market segmentation: trends and challenges

Market segmentation is one of the fundamental principles of marketing given the fact that firms cannot normally serve all of the customers in a market because of diverse (heterogeneous) needs and preferences. The basic tenet of market segmentation is that a heterogeneous group of customers can be grouped into homogeneous groups or segments exhibiting similar wants, preferences, and buying behavior.

Market segment and customer profitability analysis

In order to improve financial performance, hotel companies often target multiple customer segments by expanding their products and services. However, offering a wide array of products and services to a large number of customer segments is likely to result in an increase in a property’s support costs. Costs escalate because the complexity of operations increases as the avail ability of products and services expands. A property’s overhead costs (see Undistributed Operating Expenses) are likely to increase with both customer and product service variety.

Market saturation

Market saturation is the point at which current market demand no longer supports additional units of supply the market (actual and potential buyers) is effectively glutted. In product markets, saturation is achieved when there are no new buyers for a marketer’s existing product offering. For example, if there are only 10 restaurants in a particular geographic area, and a marketer of coffee machines has already sold machines to nine of them, with the final potential buyer unwilling to purchase, the market is saturated.