Chapter
21
Marketing and Sales
Objectives
• List the four major functions of marketing.
• Describe the five basic areas of
marketing.
• Give the meaning of sales in the business
sense and another meaning of sales in the
context of promotion.
• State the purposes of a marketing plan.
• List the four main methods of promotion.
continued
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Objectives
• Describe two types of selling that are
done in hospitality businesses.
• Compare the marketing done by a small
business with that done by a large chain.
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Marketing
• Four major functions of marketing are to
– learn what customers want and need
– develop a product that meets those wants and
needs
– make sure potential customers know about your
product
– persuade customers to buy your product
continued
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Marketing
• Marketing consists of developing and
promoting products, which are either
goods or services
• For marketing to be successful, decisions
must be made in the target market and the
marketing mix, which is made of the four
Ps of marketing:
– product
– place
– price
– promotion
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Target Market
• A market consists of all the people who could
potentially buy what a business is selling
• Marketing research is done to learn about
the market
• Information from marketing research helps
the business determine its target market
continued
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Target Market
• The target market is the market segment
whose wants and needs a business strives to
meet
• Market segmentation is the process of
dividing the total market into subgroups with
similar needs and wants
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Product
• A business decides what product to sell and
how to develop it
• These decisions are made with the target
market in mind
• If the needs and wants of the target market
change, the product needs to change
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Price
• Setting prices involves knowing
– your costs
– your profit goals
– competitors’ prices
• Many hotels use revenue management
software to help calculate the best prices to
charge for guest rooms
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Place
• A business must determine where its product
will be sold
• Location is often a key factor in the success
or failure of a hospitality business
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Promotion
• Promotion is telling customers about a
product or about the company
• Promotion is done
– to influence customers to buy a product
– to create a positive image of the company and
the brand
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Communication with Customers
• Personal communication occurs when two
or more people communicate directly
• Nonpersonal communication is a message
conveyed through mass media
• Sales is the only type of promotion that uses
personal communication
• Good communication is needed for repeat
business
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Brand Identity
• A brand is a name, logo, tagline, or any
combination of these that distinguishes a
product from its competitors
• A logo is the part of the brand that includes
the brand name or corporate name
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Marketing Plan
• A marketing plan lists the marketing goals of
a business and describes how they will be
achieved
• Upper management develops the marketing
plan using marketing research and sales data
• Most companies update their marketing plans
every year
continued
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Marketing Plan
• Situation analysis examines all the factors that
could affect the business, such as
competitors
• Goals state what the business wants to
achieve in a specific time period
• Strategies are the plan for achieving the goals
• Evaluation is done to determine whether the
strategies achieved the goals
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Advertising
• Advertising is a promotional message paid
for by an identified sponsor and includes
– advertisements
– commercials
– print advertising
– Internet advertising
– billboards
– reader boards
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Promotion Methods
• Public relations consists of activities done to
create goodwill
• A press release is an article written by a
company for use as the basis for news in a
newspaper, Internet, radio, or TV news program
• Publicity is information that appears in the
media about a company or product and is not
paid for by the company
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Sales Promotion
• A sales promotion is a specific offer
designed to increase sales
• Types of sales promotions include
– incentives, such as “buy one, get one”
– coupons
– loyalty programs
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Personal Selling
• Personal selling involves direct
communication between seller and customer
• Examples include
– suggestive selling at a restaurant
– group sales of meals, lodging, and other facility
services
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Hospitality Marketing
• Amount and type of marketing varies with the
size of business
• Many businesses hire outside agencies to do
one or more marketing tasks
• Many government and nonprofit
organizations promote the hospitality
industry, such as convention and visitors
bureaus (CVBs)
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Chapter 21 Review
• Learning what customers need and want is
one marketing function. Name three others.
– developing a product that meets those needs
and wants; making sure potential customers
know about it; persuading customers to buy it
• What are the four Ps of marketing?
– product, price, place, promotion
continued
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Chapter 21 Review
• Which type of promotion uses personal
communication?
– sales
• Situation analysis, goals, strategies, and
_____ are all parts of a marketing plan.
– evaluation
continued
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Chapter 21 Review
• Name the four main methods of promotion.
– advertising, public relations, sales promotions,
personal selling
• What is the difference between advertising
and publicity?
– Advertising is paid for by the company; publicity
is not.
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