Hospitality Marketing
Which of the following is NOT an example of direct marketing?
TV advertisement
In the joining phase of the customer delivery system:
The customer makes the initial inquiry contact
The first step in selecting a location for a hotel is:
Understanding the target market of the company
When employees try to sell a higher priced alternative to a potential customer, it is called:
Up-selling
An executive fully reimbursed for all travel expenses is most likely to be attracted to a(n):
Upscale hotel, having a room-service breakfast, and eating lunch and dinner in a more expensive restaurant.
In the first few months upon opening a new hotel, a hotel company wanting to achieve market share leadership is most likely to:
Use low opening rates to influence demand
Which of the following does NOT comprise a promotion mix?
Viral marketing
________ are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products.
________ are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products.
A restaurateur buying produce from a grower at a farmers' market is an example of:
A direct-marketing channel
Hospitality managers need to think about the product on four levels. Briefly describe each level.
A. Core product: o It answers the question of what the buyer is really buying. Every product is a package of problem-solving services. B. Facilitating products: o These are services or goods that must be present for the guest to use the core product. C. Supporting products: o These are extra products offered to add value to the core product and to help differentiate it from the competition. D. Augmented products: o These include accessibility (geographic location and hours of operation), atmosphere (visual, aural, olfactory, and tactile dimensions), customer interaction with the service organization (joining, consumption, and detachment), customer participation, and customers' interactions with one another.
A company's total marketing communications mix—also called its promotion mix—consists of the specific blend of five different parts. Name and define these parts.
A. Type of product and market. o The importance of different promotional tools varies among consumers and commercial markets. B. Push versus pull strategy o Push strategy: The company directs its marketing activities at channel members to induce them to order, carry, and promote the product. o Pull strategy: A company directs its marketing activities toward final consumers to induce them to buy the product. C. Buyer readiness state. o Promotional tools vary in their effects at different stages of buyer readiness. D. Product life-cycle stage. o The effects of different promotion tools also vary with stages of the product life cycle.
Atmosphere is appreciated through the senses. Sensory terms provide descriptions for the atmosphere of a particular set of surroundings. Describe the main sensory channels.
Atmosphere is a critical element in services. It is appreciated through the senses. Sensory terms provide descriptions for the atmosphere as a particular set of surroundings. The main sensory channels for atmosphere are sight, sound, scent, and touch.
The additional consumer services and benefits built around the actual product are called the:
Augmented product
The dimension of atmosphere relating to volume and pitch is called:
Aural
The differential effect that knowing the brand name has on customer response to the product and its marketing is termed:
Brand equity
Define brand. What is the importance of a brand name? Provide examples to support your answer.
Brand is a name, term, sign, symbol, design, or a combination of these elements that is intended to identify the goods or services of a seller and differentiate them from those of competitors.
Which of the following is the least expensive distribution channel for hotel rooms?
Brand.com
Which of the following is NOT a marketing intermediary?
Concierges
Supranational, Logis de France and Leading Hotels of the World are examples of:
Consortia
The ________ product level answers the question of what is really being bought
Core
The factor that sets the floor for a product's price is:
Cost
A hotel trying to sell its food and beverage facilities, meeting rooms, retails, etc. to its guests, is an example of:
Cross-selling
If a server in a restaurant convinces a patron to buy a t-shirt at the front counter, they are:
Cross-selling
The process of sourcing ideas by inviting broad communities of people is called:
Crowdsourcing
The most important source of new-product ideas are:
Customers
A large advertising budget guarantees a successful advertising campaign.
F
A product image is a detailed version of a product idea stated in meaningful consumer terms.
F
Sales promotions are most effective in building long-run brand preferences
F
The main aural dimensions of atmosphere are scent and freshness.
F
Value-based pricing is based on the seller's perception of value.
F
When marketing activities are directed at channel members a pull strategy is being used.
F
Those services or goods that must be present for the guest to use the core product are called:
Facilitating products
Costs that do NOT vary with production levels are called:
Fixed cost
Viral marketing messages have a higher chance of being opened because they are coming from a ________.
Friend
The first stage of the promotion process is:
Identifying the target audience
All of the following are considered marketing intermediaries except:
Independent contractors
One function of the distribution channel is ________, which involves gathering and distributing marketing research and intelligence.
Information
What are the five key functions that members of the marketing channel perform to complete transactions and to help fulfill the completed transaction?
Information: Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange.* Promotion: Developing and spreading persuasive communications about an offer* Contact: Finding and communicating with prospective buyers* Matching: Shaping and fitting the offer to the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.* Negotiation: Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.
_______ advertising is used heavily when introducing a new product category and when the objective is to build primary demand.
Informative
________ advertising is used when introducing a new product.
Informative
Which of the following is NOT a desirable quality for a brand name?
It should not translate easily into foreign languages.
Which of the following is NOT a function of the distribution channel?
Linking
The strategy of setting a high price when the market is price-insensitive, is called:
Market skimming pricing
Identify and define the internal factors affecting a firm's pricing decisions.
Marketing objectives: Before establishing price, a company must select a product strategy. If the company has selected a target market and positioned itself carefully, its marketing mix strategy, including price, will be more precise a. Survival: It is used when the economy slumps or a recession is going on. A manufacturing firm can reduce production to match demand and a hotel can cut rates to create the best cash flow. b. Current profit maximization: Companies may choose the price that will produce the maximum current profit, cash flow, or ROI, seeking financial outcomes rather than long-run performance. c. Market-share leadership: When companies believe that a company with the largest market share will eventually enjoy low costs and high long-run profit, they set low opening rates and strive to be the market-share leader. d. Product-quality leadership: Hotels like the Ritz-Carlton chain charge a high price for their high-cost products to capture the luxury market.
Which of the following is the most expensive distribution channel for hotel rooms?
OTA
A restaurant seeking to establish a heavy demand is likely to:
Offer high quality products for low prices
In hotel rooms' distribution channels, OTA stands for:
Online Travel Agencies
When hospitality firms market to consumer markets, the least used element of the promotion mix is:
Personal selling
Which of the following is NOT an example of a sales promotion?
Personal selling
A detailed version of an idea stated in meaningful consumer terms is defined as:
Product concept
When a company envisions a possible product that company managers might offer to the market, it is called:
Product idea
Which of the following is NOT something to which brand can be positioned?
Product pricing
Which of the following is NOT a function of the distribution channel?
Providing consulting on feasibility of new products
Charging $0.99 instead of $1.00, or using 3s in the price instead of 7s, is an attempt to engage in:
Psychological pricing
The type of message appeal that relates to an audience's self-interest is:
Rational
________ advertising is used for mature products.
Reminder
Which of the following is NOT an advantage of a franchise to the franchisee?
Royalties
The promotional tool that rewards customers for a quick, short-term response is:
Sales promotions
The establishment of price based largely on those of competitors, is called:
Status Quo
Hotels often use this strategy when the economy slumps:
Survival
In the short run, the most important pricing strategy is:
Survival
A brand name derives its value from customer perceptions.
T
A direct marketing channel has no intermediary level.
T
Brand equity is a function of brand loyalty, name awareness and other factors.
T
Companies can leverage an existing brand by employing co-branding and ingredient branding.
T
Facilitating products are those services or goods that must be present for the guest to use the core product.
T
Priceline is an example of a company that uses a system where the buyer cannot specify any particular brand of hotel or airline.
T
Product-bundling involves combining several products into a package with a reduced price. Answer:
T
Status Quo is an example of competition-based pricing.
T
The primary reason for the use of intermediaries is their superior efficiency in making goods available and accessible to target markets.
T
The purpose of persuasive advertising is to build selective demand.
T
Upselling is part of effective revenue management.
T
What is good for one member of the channel may not be good for another. Answer:
T
