Sales & Marketing

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Market penetration

As one component of a core set of growth strategies (see table below), a market penetration strategy seeks to increase sales of existing products or services to existing markets. Although this seems like a simple concept, variants of this definition are used by both marketing academics and practitioners. How a market penetration strategy is ultimately defined, applied, and measured depends on how the user of the concept defines its elements existing products, existing markets, strategic outcomes in terms of sales or some other desired result.

Loyalty circle

The Loyalty Circle is a way to create customer loyalty. The three main functions on the circle are Process, Value, and Communication. With different points along the circle, there are places where the customer might exit the circle and hence the relationship. The goal of the companies is to keep the customer in the circle by executing equally well the three functions of the circle. Equality is the key to the loyalty circle. If companies are great on creating value for instance, but do not effectively communicate with the customer, then that customer may leave the relationship.

Lifestyle hotels

‘Lifestyle hotels’ are a distinctive niche segment of the hospitality sector which are non traditional, unique, contemporary, design and architecture focused as well as experience led hotels which attempt to enrich the lives of their individualistic guests seeking unusual and sometimes avant-garde accommodation environments. This is an umbrella term that includes ‘boutique’, ‘design’, ‘hip’, ‘chic’, and other original hotel alternatives to the conventional and standardized branded hotel chains.

Internal marketing

Companies spend billions of dollars every year marketing their brands and/or trying to convince customers to choose their specific properties Mike Leven, President of Days Inn, was chosen by the Hotel and Restaurant Program of the Washing ton State University, as the ‘Hotel Marketer of the Year.’ Mr.  Leven flew into Seattle from New York and drove to Pullman, a long drive.

Internal analysis

As a major step in developing sound and successful strategic plans, internal analysis might simply be defined as a process to identify strengths and weaknesses on which a firm should base its strategies (Nebel, 1991). A strength is a resource, skill, or other advantage that a firm serves or expects to serve compared to its major rivals. On the other hand, a weakness might be defined as a resource, skill, capacity limitation or deficiency that seriously decreases a firm’s competitive performance (Nebel, 1991).

Industry analysis

This is a process of assessing the profit potential of the lodging or restaurant industry in a market area (Rumelt, 1991). The purpose is to predict the future evolution of the local hospitality industry, to understand its competitors and to use this information to craft a firm specific competitive strategy. It is a process of first studying the general environment (economic, political, social demographics, technological, and regulatory factors) to identify broad trends or emerging changes.

Hotel loyalty programs

Hotel loyalty programs are structured marketing efforts that reward and encourage loyal buying behavior. Typically, the more a guest spends, the more points he/she earns. Most hotel loyalty programs allow members to exchange points for free room nights, but several also offer other awards, including merchandise, gift certificates for restaurants, and concert tickets. Some programs even offer the option to earn ‘experiences’ such as riding shotgun in a stock car, relaxing in a private yoga lesson, or an evening in with a personal chef. Loyalty program tactics also include regular communication with customers such as reminder mailings, private credit cards, cross sell and up sell offers, satisfaction and opinion surveys, and collection of information for member databases.

Guest profile

In hospitality, a profile is a set of characteristics that define any business related item, such as an individual customer, a travel agent, source, a company, or a group profile.

Global distribution systems: development and major players

A global distribution system (GDS) is an electronic reservation system and intermediary for all types of travel and tourism products that evolved from airlines’ computer reservation systems. The four main GDSs provide the back bone of the travel distribution system. Figure 1 shows the evolution of simple Computerized Reservation Systems (CRSs) for an individual airline to the global alliances that produced global distribution systems and the competitive advantages for their owners.