Exam 1

Social Factors/Influence - Groups

They include primary groups, such as: • Family • Friends, neighbors, and coworkers—specifically, those with whom there is regular but informal interaction.

Hotel Markets (3)

•Corporate/Transient Markets •Pleasure Markets •Group Markets

Positioning

the way a product is defined by consumers on important attributes -the place the product occupies in consumers' minds relative to the competition.

Types of Competition

•Budget Competition- Food and Entertainment •General Competition- Prepared Food •Product Category Competition- Fast Food Restaurants •Product Form Competition- Fast Food Hamburgers

Personal factors- age & life cycle

•Buyer decisions are influenced by characteristics such as age & life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept. •Preferences for leisure activities, travel destinations, food, and entertainment are often age related, factors are often overlooked by marketers.

Shrinking Customer Loyalty

•Consumers often shop around for the best deal and are loyal only to organizations that give them a consistently superior one •Companies have sought ways to increase brand loyalty (Example: frequent flyer programs promoted) •Tie-ins with other companies providing travel-related services are also frequently used (example: airlines, hotels, and car rental companies frequently offer bonus points)

Positioning Statement

The positioning statement is used to differentiate the organization's product-service mix from that of another

Corporate Rate

the special rate a hotel charges to its typical business traveler

Marketing Mix

Product (service) , Price, Place, Promotion

Mass Market Strategy

a philosophy that presumes consumers are uniform and that broad-appeal products and marketing programs suffice 1 product/service mix - homogeneous egment with similar wants and needs i.e. McDonalds.

Perceptual mapping

a research tool, is sometimes used to measure a brand's position. Attributes-Physical, Service, Location, and Image •Two-by-two perceptual maps provide an easy-to-read picture, but one must often study multiple maps plotting different attributes to obtain a good feel of the marketplace.

Discretionary Income

money income left after taxes and necessities have been bought and paid for

Average Daily Rate

•Total Rooms Revenue ➗ Total Rooms Sold = Average Daily Rate

African American Traveler

•Trip Purpose: The primary trip purpose was leisure (79%) Within leisure, visiting friends/relatives was the most common trip purpose •Activities: reported were family/reunion, entertainment/amusement, and art & culture •Duration of Trips: 40% percent of the trips were 1-2 nights

Queuing

•Unoccupied time seems longer than occupied time •Unfair waits seem longer than equitable waits

Increasing Customer Sophistication

- Consumers focus more on value and less on quality or price alone - Companies have responded with brands that offer good quality at an affordable price - Within the fast-food service, companies often "bundle" their products in an attempt to increase sales and provide a better value for their customers

Reference Group- Spouse

- mostly women deciding

Variability

- product.serice provided might be different than advertised or different than you might've thought - every hamburger will be slightly different

7 Reasons to Kick Starbucks to the Curb and Let Dunkin' Donuts Into Your Life Article

1. Donuts, duh 2. More is less ($, cheaper, no added charges) 3. DD Perks 4. there's always a Starbs equivalent to be found (= options) 5. Better Food (breaky and lunch combos, healthy options) 6. Free donuts 7. It tastes better

10 Essential Hotel Marketing Strategies

1. Go Live With a Great Website 2. Follow The SEO Staples 3. Differentiate Yourself From The Rest 4. Get Recommended by Real Authority 5. Promote Yourself With Online Travel Agencies 6. Global Distribution Systems 7. Appoint a Sales Rep and Reap The Rewards 8. Get Savvy With Social Media 9. Keep an Eye on Reviews and Recommendations 10. Personalisation Marketing

6 Specific Hotel Marketing Strategies Due to COVID

1. Highlight Safety in Hotel Marketing & Guest Communication 2. Increase the Emphasis on Leisure 3. Focus on Local as Opposed to International 4. Provide Value & Flexible Cancellation Policies 5. Take the Time to Analyze Your Data 6. Let Potential Guests & B2B Clients Experience Your Hotel From a Distance

5 restaurant trends [that will define 2020]

1. Lifestyle campaigns and LTOs (limited time offers) will be key to marketing 2. Menus will shrink and simplify 3. Ghost restaurants will mature 4. Micro chains will be flavor trendsetters 5. Gen Z is gaining more influence

Segmentation Steps (3)

1. Segmentation (identify and describe market segments) 2. Targeting (evaluate segments and decide which one togo after) 3. Positioning (develop a marketing mix that will create a competitive advantage in the minds of the selected target market)

Differences Between Goods and Services

1. Service products as intangible performers (Intangibility) 2. Greater involvement of customers in the production 3. People as part of the product 4. Difficulties in maintaining quality standards (Variability) 5. No inventories for services (Perishability) 6. Importance of time (Perishability) 7. Different distribution channels

US consumer sentiment during the coronavirus crisis (4 fundamental shifts in consumer behavior)

1. Shift to Value and Essentials (decrease descresionary spending) 2. Digital and Omnichannel (spending online) 3. Shock to loyalty (change stores, brands, or way they shop) 4. Homebody economy (not resuming normal out of home activities)

Effects on Resturants from COVID

1. Streamlined menus 2. Off-premises dining takes precedence 3. Blended meals 4. Bundled Meals 5. Meal kits rise 6. Meal subscriptions 7. Alcohol to go 8. Comfort food 9. Healthy foods/diet

Study of Consumer Behavior is based on two factors:

1.Consumer Behavior is rational and predictable 2.Marketers can influence this behavior

Segmentation decision process

1.Identify segmentation bases 2.Develop profiles for each segment 3.Forecast segment profile 4.Select target market segments

Concentrated Strategy

A marketing strategy in which a marketer selects one specific group of consumers and designs a marketing mix specifically for that group. i.e. Ritz Carolton

Differentiated Strategy

A marketing strategy in which a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs. i.e. Marriott Hotels; bunch of different options/levels of service for market

RevPAR (revenue per available room)

Average Daily Rate X Occupancy % (as decimal) Higher values of REVPAR would denote more effective use of available resources.

Reference Group- Children

Children all over the world are having an influence on where the family dines when they go out to eat. •that before age 12, eating habits are influenced primarily by parents, but after 12 there is a shift to peer influence

Segmentation Variables (4)

Demographic Geographic Psychographics Behavior

MArket Segmentation Variables: (4)

Demographic, Psychographic, Geographic, Behavior

Consumer Behavior - External Influences

External Influences •Culture •Socioeconomic level •Reference groups •Households

Rack Rate

Highest possible rate. Highest published rate. Found on the back of guest room door. When would you pay this?

Competition

In general a company should monitor three variables when analyzing each of its competitors: •Share of the Market: Competitor's share of the target market •Share of Mind: % of customers that named the competitor when asked, "Name the first company that comes to mind in this industry." •Share of the Heart: % of customers who named the competitor when asked, "Name the company you prefer to buy the product."

Dunkin Donuts --> Dunkin'

In the mid-1990s, Dunkin' shifted its focus from doughnuts to coffee hoping that promoting a more frequently consumed item would drive store traffic. •the push worked, as coffee now makes up 64% of sales and doughnuts a mere 17% •sales have surged more than 40% in the past four years •Dunkin' is not Starbucks and doesn't want to be. •Dunkin' & Starbucks target very different customers, who want very different things from their favorite coffee shops

Consumer Behavior - Internal Influences

Internal Influences •Previous Experience

Consumer Confidence Index

Measure of optimism that consumers express about the economy as they go about their everyday lives.

Hotel Trends

Smart Hotels Sustainable hotels Robot Staff Virtual Reality and Augmented Reality Unique brand experiences

Consumer Behavior

Social Setting-Where you live? Paris or Iowa 2.Settings that have the most influence 3.Roles 4.Attitude relative to roles-consistently favorably or unfavorable evaluations based on objects or situations.

Sustainable Tourism

Sustainable travel means finding a way that tourism can be maintained long-term without harming natural and cultural environments. Sustainable travel should minimize the negative impacts of tourism and ideally be beneficial to the area in which it takes place.

Selfie influence

While people go as far as seeking out a cool new vacation spot for the purpose of the social media, there is a cycle to note here. Selfies that users view on their feed, depicting a cool location or attraction, actually act as a catalyst for viewers to travel to that particular destination.

Social Class

_________ _____________ show distinct preferences in such areas as food, travel & leisure activity. •Some marketers focus on only 1 social class. i.e. •Four Seasons restaurant in upper Manhattan targets upper-class patrons •Joe's Coffee Shop in lower Manhattan serves lower-classes

Market Share

a company's product sales as a percentage of total sales for that industry Think of it as a piece of pie. Always a percentage

Marketing Concept

a consumer-oriented philosophy that focuses all available resources on satisfying the needs and wants of the consumer, thereby resulting in profits - Evolved in the 1950's

Disposable Income

income (after taxes) that is available to you for saving or spending

Group Rate

special discounted room rates given to customers who agree to buy a large number of room nights for their group

Intangibility

the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed - unlike products, services cannot be touched or felt beforehand. They have to be first ordered and then they become tangible.

Perishability

the inability of unused service capacity to be stored for future use - flights / seats - hotel rooms rather fill the seat than it be empty

Market Strategy (3)

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships •Undifferentiated •Differentiated •Concentrated

Hotel Occupancy

the percentage of rooms occupied in a hotel •Total Rooms Sold ➗ Total Rooms Available = Room Occupancy Measure Daily, Weekly, Monthly and Yearly What makes 60.0% special? breakeven point

Service Sector (3 parts)

the section of the economy that involves providing intangible services 1.Perishability 2.Intangibility 3.Variability

Dunkin's Changes / New Branding / Positioning

•Dunkin' has a decidedly more low-brow, "everyman" kind of positioning •Dunkin' plans to move upscale—but not too far—to rebrand itself as a quick but appealing alternative to specialty coffee shops and fast-food chains. - Life is Good uniform design- share a commitment to spreading positivity and helping kids in need - Modern Stores- interior design uses lighter colored materials, an open layout and natural light. - Faster Drive Through-DD Perks® members who order ahead via Dunkin's Mobile App bypass the ordering lane and merge straight into the line for the pickup window. - Greater Grab & Go Selection: An expanded, custom Grab & Go unit will feature bottled beverages, as well as snacks from leading brands that complement Dunkin's menu. These will include better-for-you options - Dunkin' also tested a simplified menu across 1,000 restaurants in 2017. Dunkin's new menu removed items such as afternoon sandwich selections and bakery items like danish and cookies, in an effort to reduce operational complexities. - Dunkin' also said it will remove artificial dyes across its menu, including donut icings, fillings and toppings, as well as frozen beverages

Environmental Factors -- Uncontrollable (5)

•Economic •Social-Cultural •Political/Legal •Technology •Competition

Capacity Management

•Involve the customer in the service delivery •Cross-train employees •Use part-time employees •Change the service delivery system

Culture

•It comprises basic values, perceptions, wants, and behaviors a person learns continuously in a society. •Culture is an integral part of the hospitality & travel business and determines what we eat, how we travel, where we travel, and where we stay •Marketers try continuously to identify cultural shifts in order to devise new products and services that might find a receptive market

Hispanic traveler

•Many Hispanics may be reached through the growing selection of Spanish-language broadcast and print media that cater to them. •Hispanics are very brand loyal, and they favor companies who show special interest in them

Sociocultural Environment (Millennials)

•Millennials- Their expectations of technology are unforgiving; they are connected 24/7 and are capable of managing an array of applications to maximize the efficiency of their time. •When it comes to travelling and hotel stays, millennials are keen to use technology to make their lives easier and their travel experience more seamless. •Hotels: newer technology choices - to build better relationships with their millennial guests. - tech-savvy guests unlock their rooms in some of their hotels with an Apple Watch or smartphone. - guests to order extra towels or toiletries, luggage pickup or housekeeping services directly from their mobile. •Millennials and higher-income travelers report they plan to spend more money on travel into 2021, and are more likely to cruise, travel solo, and visit more international destinations.

Female Traveler Safety

•More than 8 in 10 women say they have experienced one or more safety-related concerns while traveling for business in the past year •90 percent say concern about safety has an effect on activities pursued during personal time while on business travel •86 percent report an impact on booking behavior, such as booking only daytime •81 percent indicate their travel frequency for business has been impacted by safety concerns •80 percent say safety concerns have impacted their productivity on business trips

Technology Types

•Online Booking Systems •EPOS-Electronic Point of Sale •CRM-Customer Relationship Management •Social Media •Smart Phones •Smart Appliances

Subway

•Replacing Jared-pleaded guilty to child pornography and sex charges-2015 •Competition-Panera Bread and Chipotle •"Fresh" has more competition •$5.00 footlong promotion worked but when economy got stronger- customers went to more expensive places. •Overbuilt, upset franchisers •Subway went big into breakfast in 2010 •The company put much of its marketing muscle behind the introduction of breakfast items - And there are remarkably strong competitors, including McDonald's, Starbucks and Dunkin' Donuts. - - Getting consumers to break their breakfast habits by going to Subway takes a lot of time and effort

Starbucks vs. Dunkin TAKEWAYS

•Starbucks and Dunkin' are the two biggest coffee-focused eatery chains in the U.S. •Starbucks is a bigger company in terms of market capitalization and the number of stores globally. •Starbucks has also built a more premium brand, has stores that look more like a comfortable coffee house, has a more extensive menu, and greater product customization. •Dunkin' stores resemble more traditional fast-food eateries and they offer more competitive pricing relative to Starbucks. •Most of Dunkin's stores are franchises, where it has greater exposure to franchise and rental income.

Starbucks

•Starbucks is strongly positioned as a sort of high-brow "third place"—outside the home and office—featuring couches, eclectic music, wireless Internet access, and art-splashed walls. •2017 fiscal year- 51% of sales were café walk-ins, drive thru has grown 34%. Mobile orders and payment now make-up 12% of sales. •Starbucks to open first sign-language store-Washington, DC. Operated by 24 deaf and hard of hearing employees. • Want to cut wait times in stores -- especially during peak times - - create new drinks or food items that entice consumers to either spend more or make an extra visit, - sign more people up for its loyalty programs. - Starbucks APP and rewards

Reference Group- Family

•The __________ remains the most important consumer buying organization in American society and has been researched extensively.

Changing Family

•The number of working women has increased greatly, growing from under 40% to 60% today. •Both husband & wife work in 60% of married-couple families, spawning the need for takeout food. •Grocery stores, preparing heat-and-serve entrees and side dishes (Home Chef, blue apron, etc)

Political/Legal

•The priorities for Ohio's lodging industry when it comes to short-term online rentals are as follows: 1. Guest health and safety is first and foremost concern 2. Parity with other lodging properties and businesses in terms of regulation and taxation 3. Ensuring rentals do not have a negative impact on neighbors or neighborhoods

Average Check

•Total sales ➗ guests = Average check

Demand Management (Due to perishability)

•Use price to create or reduce demand •Use reservations •Overbook •Revenue management •Use Queuing (over estimate the wait time)

Female traveler

•Women also have safety concerns that men don't. Women appreciate the following: •Double-locking doors, improving lighting and positioning peep holes. Providing special amenities including items which women may need: 1. Toiletry items 2. Power hair dryers and magnifying mirrors in the bathrooms 3. Full length mirrors in the room 4. Herbal teas to the coffee service 5. Healthy options in the room service menus

Asian American Traveler

•___________ consumers shop frequently & are the most brand conscious of all the ethnic groups. •They can be fiercely brand loyal

Millennials/Generation Z - Economic

•account for 50% of the workforce globally and have more spending power than Baby Boomers - in many ways, they are the most powerful and influential consumer group that we have ever experienced. •They account for 27% of the global population or about 2 billion people making them the largest living generation by population size.