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Lecture Hotel management and operations (5th Edition): Chapter 7.2 - Michael J. O'Fallon, Denney G. Rutherford

I often have heard that professionals in the hotel business enjoy it because every day is different. While I find this to be a huge understatement, I, too, enjoy this business for the same reason. My day begins with a large cup of coffee. I like to arrive at work early so I can walk the property and greet the early-morning team members and check on the daily banquet functions. | Building Market Leadership: Marketing as a Process Fletch Waller Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Marketing The hotel business has changed enormously over the last thirty years. Changes include: Special niche forms of lodging New ways of segmenting markets Brand proliferation and consolidation New tools for acquiring customers Distribution innovations Globalization Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Marketing Cont. “Marketing” as addressed in this article is not the sales and marketing department; it is how hotels respond to and seize upon market opportunities. Definition: Marketing is a process of creating and sustaining productive relationships with desirable customers. The goal of marketing: To produce such relationships more effectively than do your competitors. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved The Marketing Process Peter Drucker (1974) says that the purpose of operating a business is to create a customer and keep him or her. If this is done successfully, profits and capital returns flow. The past is often an indicator of the future, resulting in a hotel repeating its marketing process by habit. This is risky, due to the fact that customers and competitors are always changing. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Marketing Process Cont. Steps of the marketing process: Deciding what to be and what to offer to whom. Setting the hotels pricing structure. Create customer awareness and stimulate demand. Make the hotel available to the customer Commit, confirm, and manage revenue. Prepare the hotel. Retain the hotels customers. Measure the customers satisfaction. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Deciding What To Be And What To Offer To Whom The answers to what to be and offer are found by studying the hotels marketing situation. The marketing situation is comprised of three parts: The hotels strengths and weaknesses. The | Building Market Leadership: Marketing as a Process Fletch Waller Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Marketing The hotel business has changed enormously over the last thirty years. Changes include: Special niche forms of lodging New ways of segmenting markets Brand proliferation and consolidation New tools for acquiring customers Distribution innovations Globalization Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Marketing Cont. “Marketing” as addressed in this article is not the sales and marketing department; it is how hotels respond to and seize upon market opportunities. Definition: Marketing is a process of creating and sustaining productive relationships with desirable customers. The goal of marketing: To produce such relationships more effectively than do your competitors. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved The Marketing Process Peter Drucker (1974) says that the purpose of operating a business is to .