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Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Chapter EightChapter Eight
Understanding Understanding Organizational CustomersOrganizational Customers
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
The Generic Organizational The Generic Organizational MarketMarket
Groups may have a common Groups may have a common purpose, but meeting planners must purpose, but meeting planners must satisfy all wants and needssatisfy all wants and needs
Meeting plannersMeeting planners
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
Planning the EventPlanning the Event
1. Buy time1. Buy time
2. Assess the needs2. Assess the needs
3. Set measurable goals3. Set measurable goals
4. Develop a plan4. Develop a plan
5. Resolve the meeting5. Resolve the meeting
6. Execute the meeting6. Execute the meeting
7. Evaluate the results7. Evaluate the results
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
The Corporate Travel MarketThe Corporate Travel Market
Corporate travel Corporate travel manager manager coordinates coordinates travel/leisure for travel/leisure for employeesemployees
Third largest Third largest controllable controllable expense for U.S. expense for U.S. companiescompanies
Desirable market Desirable market for hotelsfor hotels
Must know the Must know the needs of the clientneeds of the client
Working with the Working with the corporate travel corporate travel market:market:– Know the volume to Know the volume to
better negotiate better negotiate priceprice
– Understand travel Understand travel patternspatterns
– Control costsControl costs
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
The Corporate Meeting MarketsThe Corporate Meeting Markets
Most common type: management Most common type: management meetings/seminarsmeetings/seminars
Planner must please the organization Planner must please the organization and the siteand the site
Hotel/site must please the clientHotel/site must please the client High expectations on both sidesHigh expectations on both sides
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
Conference CentersConference Centers
Carefully designed Carefully designed facilities to meet facilities to meet the needs of this the needs of this marketmarket
Designed to serve Designed to serve this specific marketthis specific market
May have complete May have complete meeting packages meeting packages (CMP)(CMP)
International Association of International Association of Conference Center Conference Center Guidelines:Guidelines:– >60% of available >60% of available
meeting space designed to meeting space designed to conferencesconferences
– Conference rooms Conference rooms separate from separate from living/leisure areasliving/leisure areas
– 24-hour access needed for 24-hour access needed for clientsclients
– >60% of total revenue >60% of total revenue must be conference must be conference relatedrelated
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
The Incentive MarketThe Incentive Market
Incentive travel is a management Incentive travel is a management tool where meeting, lodging, and tool where meeting, lodging, and entertainment for the group is a entertainment for the group is a reward for the organizational reward for the organizational achievement of goals and objectivesachievement of goals and objectives
Focus on an “extraordinary Focus on an “extraordinary experience”experience”
Incentive houses can provide Incentive houses can provide planning servicesplanning services
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
Association, Convention, and Association, Convention, and Trade Show MarketsTrade Show Markets
Overlap and have similar needsOverlap and have similar needs– Association: people meeting for social Association: people meeting for social
reasons, usually small and professionally reasons, usually small and professionally orientedoriented
– Convention: usually annual, focus on Convention: usually annual, focus on information distributioninformation distribution
– Trade shows: focus on selling products, Trade shows: focus on selling products, involves exhibitorsinvolves exhibitors
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
Convention Centers and Convention Centers and Convention and Visitors BureausConvention and Visitors Bureaus
Convention centers: usually in large Convention centers: usually in large cities and free-standingcities and free-standing
Convention and visitors bureaus Convention and visitors bureaus (CVBs)(CVBs)– Can be a vehicle for planning convention Can be a vehicle for planning convention
eventsevents– Non-profitNon-profit– Constituents pay annual feesConstituents pay annual fees
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
The Airline Crew MarketThe Airline Crew Market
House airline House airline employees and employees and crew on a crew on a contractual basiscontractual basis
May be reimbursed May be reimbursed per diemper diem
Hotels must cost Hotels must cost out revenues and out revenues and weigh advantages/ weigh advantages/ disadvantagesdisadvantages
Have specific Have specific needsneeds– Tight schedulesTight schedules– Odd hoursOdd hours– Quiet roomsQuiet rooms
Influenced by:Influenced by:– Supply/demand in Supply/demand in
hotel marketplacehotel marketplace– UnionsUnions
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
The SMERF and Government The SMERF and Government MarketsMarkets
SMERF: A segment SMERF: A segment of organizational of organizational customers that customers that don’t fit into other don’t fit into other categoriescategories
Both usually low Both usually low rated, but good in rated, but good in slow periodsslow periods
SMERF includes:SMERF includes:
– SocialSocial– MilitaryMilitary– EducationEducation– ReligiousReligious– Fraternal Fraternal
organizationsorganizations
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition
The Group Tour and Travel The Group Tour and Travel MarketMarket
Group tourGroup tour
– Now is quite Now is quite heterogeneousheterogeneous
– Hotel Hotel accommodations accommodations are most importantare most important
Motorcoach TourMotorcoach Tour
– Usually mature Usually mature travelerstravelers
– 40% stay overnight40% stay overnight– Ad hoc groupsAd hoc groups– Respond to the Respond to the
needs of the group needs of the group and individualsand individuals
© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition