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28 April 2006 1

Marketing and Sales

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Getting to Know the Market

Geographic Where do your customers come from How far do they travel

Demographic What are their characteristics

Gender, age, education, occupation, income etc.

Psychographic Self-image and lifestyle

What do they value Allocentric v. Psychocentric

Behavioristic For business, special occasion, loyalty

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The Marketing Process

What to offer? Product category

To whom to offer?

Target Market At what price?

What is the strategy for distribution? Creating awareness

Through what channels? Retaining Customers.

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Marriott Strategy

A change from focusing on Accountsto a focus on Industry

Deciding on Intermediary Strategies Key Segments

Airlines, Associations, Entertainment,Government, Intermediary, Multi-cultural,SMERF, Sports, Business Travel, Catering

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3 Key Strategies

Segment Analysis and StrategyDevelopment

Sales Support of AccountManagement

Segment specific value added thatdrive incremental sales

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Segment Analysis and StrategyDevelopment

Marriotts position w/in segment Competitive analysis

Segment Marketing Plans Business model strategies Data collection and integrity

Data and trend analysis

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Sales Support

Leveraging brand initiatives Supporting the market direct sales

effort Account management in key

industries

Facilitate coordination of field efforts Company representation at industryand trade shows.

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Segment SpecificValue Added

Segment leaders Web-based support for direct sales

effort Corporate and franchise support

Industry value adds through targetedpromotions and marketing

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Targeted Segments

Airlines Business partners and revenue source -$185

billion industry

Business Travel Refers to individuals that travel separate fromassociations. This market travel for a variety ofreasons and lodging needs will change

Entertainment Movies, theaters, production crews

Government $20 billion a year segment with fixed stipends

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Targeted Segments

Intermediary Secondary sources which sell your

property

Sports Most think of professional sport teams but

a large and growing market is the

weekend youth sport leagues

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A review of market competition Occupancy trends /ADR trends /

performance of own hotel

Competitive analysis of your competitor Strengths / weaknesses / price structure

Competitive analysis of your own hotel Strengths / weaknesses / price structure

Sales & Marketing Activities: WebsitesMarketing plan development: format of marketing plan

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Marketing plan development: format of marketing planSales & Marketing Activities: Sales Efforts

Forecast of future market conditions Estimated market growth or contraction /

performance goals and objectives for ownhotel / timeline for achieving these goals andobjectives

Determination of specific marketingstrategies & activities

Advertising / public relations / promotions

Preparation of a marketing budget Development of measurement &

evaluation tools

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Special packaging of productsor services

Promoted and disseminated by

advertising and publicity

Promotion

Publicity

Development of measurement &evaluation tools

Information about hotel, media-distributed free of charge

Costs the hotel nothing May be either good or bad

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Activities ensuring hotel has a positivepublic image (good citizen of thecommunity)

Hosting charity events, contributingcash or in-kind services, donation ofhotel staff time for worthy cause

Development of measurement &evaluation tools

PublicRelations

(PR)

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Sales & Marketing Activities: Websites

Effective hotel websites should:

be easy to navigate. have some level of interactivity. be linked to appropriate companion sites (demand

generator). allow for online booking. balance guest privacy needs with hotels desire to

build a customer base. update and revise room rates easily on the website.

include a virtual tour of the property. complement other marketing efforts. be in language(s) of potential clients. have website address easy to remember.

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Evaluating Sales & MarketingDepartment: Pace Report

Is a document summarizing confirmed (group) salesmade by Sales and Marketing dept.

Can be prepared based on number of rooms sold,value (in dollars) of sales made, or both

Can also include any period of time in the future Tells hotels owner and management the potential

sales volume generated by Sales and Marketingdepartment

However , does not indicate what actual salesvolume should be (STAR report does!)

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Sold this month Total sold YTD Sold samemonth last year Total sold last

YTDJan 25 150Feb 450 750 250 550Mar 550 1,550 330 1,250

Apr 650 1,550 550 1,350May 875 1,175 650 1,050

June 1,100 1,400 800 1,700

July 1,350 2,250 1,100 2,150

Aug 1,700 2,900 1,500 1,900

Sept 500 700 750 1,750Oct 300 800 550 1,050Nov 850 1,150 300 600

Dec 200 550 125 225

Total 8,550 14,775 7,055 13,575

Waldo Hotel Group Rooms Pace Report for January, 200x

Evaluating Sales & MarketingDepartment: Sample Pace Report

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STAR working process and preparation

Who are the STAR interest groups?

Evaluating Sales & Marketing Department: TheSmith Travel Accommodations Report (STAR)

Hotel voluntarily submits financial data to Smith Smith maintains confidentiality of all individual hotel data Combine operating data submitted by selected competitors

An individual hotels operating performance is compared tothat of its competitive set (understanding the competitive setis key component of understanding STAR!)

Hotel owners, management companies, propertymanagement, franchisers, appraisers, financial community

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Evaluating Sales & Marketing Department: TheSmith Travel Accommodations Report (STAR)

Occupancy, ADR, RevPar,market share, historical trends, to-date performance, state or region

Assess performance of Sales &Marketing department as well asthe entire property

Know the strength of hotel andSales and Marketing staffs salesresults, in comparison withselected competitors.

Operatingcomparison

criteria

Goals