Marketing and Sales

28 April 2006

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 Accounts to a focus on Industry Deciding on Intermediary Strategies Key Segments
Airlines, Associations, Entertainment, Government, Intermediary, Multi-cultural, SMERF, Sports, Business Travel, Catering

3 Key Strategies
Segment Analysis and Strategy Development Sales Support of Account Management Segment specific value added that drive incremental sales

Segment Analysis and Strategy Development

Marriotts position w/in segment Competitive analysis Segment Marketing Plans Business model strategies Data collection and integrity Data and trend analysis

Sales Support
Leveraging brand initiatives Supporting the market direct sales effort Account management in key industries Facilitate coordination of field efforts Company representation at industry and trade shows.
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Segment Specific Value Added

Segment leaders Web-based support for direct sales effort
Corporate and franchise support

Industry value adds through targeted promotions and marketing

Targeted Segments
Airlines
Business partners and revenue source -$185 billion industry

Business Travel
Refers to individuals that travel separate from associations. This market travel for a variety of reasons 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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Sales & Marketing Activities: Websites

Marketing plan development: format of marketing plan

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

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Sales & Marketing Activities: Sales Efforts

Marketing plan development: format of marketing plan

Forecast of future market conditions

Estimated market growth or contraction / performance goals and objectives for own hotel / timeline for achieving these goals and objectives

Determination of specific marketing strategies & activities

Advertising / public relations / promotions

Preparation of a marketing budget Development of measurement & evaluation tools

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Development of measurement & evaluation tools

Special packaging of products or services Promotion Promoted and disseminated by advertising and publicity Information about hotel, mediadistributed free of charge Publicity Costs the hotel nothing May be either good or bad
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Development of measurement & evaluation tools

Activities ensuring hotel has a positive public image (good citizen of the Public community) Relations Hosting charity events, contributing (PR) cash or in-kind services, donation of hotel staff time for worthy cause

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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 & Marketing Department: Pace Report

Is a document summarizing confirmed (group) sales made 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 Marketing department However, does not indicate what actual sales volume should be (STAR report does!)

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Evaluating Sales & Marketing Department: Sample Pace Report

Waldo Hotel Group Rooms Pace Report for January, 200x
Sold this month
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total 25 450 550 650 875 1,100 1,350 1,700 500 300 850 200 8,550
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Total sold YTD

750 1,550 1,550 1,175 1,400 2,250 2,900 700 800 1,150 550 14,775

Sold same month last year

150 250 330 550 650 800 1,100 1,500 750 550 300 125 7,055

Total sold last YTD

550 1,250 1,350 1,050 1,700 2,150 1,900 1,750 1,050 600 225 13,575

Evaluating Sales & Marketing Department: The Smith Travel Accommodations Report (STAR)
STAR working process and preparation
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 to that of its competitive set (understanding the competitive set is key component of understanding STAR!)

Who are the STAR interest groups?

Hotel owners, management companies, property management, franchisers, appraisers, financial community
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Evaluating Sales & Marketing Department: The Smith Travel Accommodations Report (STAR) Occupancy, ADR, RevPar, market share, historical trends, todate performance, state or region
Assess performance of Sales & Marketing department as well as the entire property Know the strength of hotel and Sales and Marketing staffs sales results, in comparison with selected competitors.
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Operating comparison criteria

Goals