BSHM 75 Reviewer Chapter 6 PDF

BSHM 75 Reviewer Chapter 6 **[Price]**- is the amount that the customer pays for a product; it is the amount of money exchanged for something of value. **KEY CONCEPTS RELEVANT TO PRICING** **[Sales]**- Is the total amount that a company gets based on quantity sold multiplied by selling price. *...

BSHM 75 Reviewer Chapter 6 **[Price]**- is the amount that the customer pays for a product; it is the amount of money exchanged for something of value. **KEY CONCEPTS RELEVANT TO PRICING** **[Sales]**- Is the total amount that a company gets based on quantity sold multiplied by selling price. **Revenue**- Is the total income/profit that the company keeps after all the experience have been paid for Simply put: sales minus expense equals revenue. **Fixed costs**- Are costs incurred due to the operations of the business; they do not fluctuate with the volume of sales. **KEY CONCEPTS RELEVANT TO PRICING** **Profit Margin**- Is the level of income that is desired by the company. This usually comes out in percentage form as the amount of mark-up placed on top of the fixed and variable cost of a product. **Variable Costs**- Are costs that vary based on volume or quantity Bigger quantitie of the same order will cost less than smaller quantities of the same specifications This concept is commonly known as economies of scale. **Break-even Point**- Is the point wherein total cost is equal to total revenue. **PRICING COMPONENTS** **Pack Rates**- All tourism businesses should have a rack rate this is your \"full rate\" before any discounts are applied and typically is what is provided to wholesalers and printed on brochures for the season ahead. **Seasonal Pricing**- Using a mix of pricing throughout the year to cover low, high, and shoulder seasons is a standard way for tourism businesses to cater for differing levels of demand due to the time of year. **Last minute pricing**- A common method for accommodation suppliers to fill those last-minute gaps in inventory availability, last- minute pricing is basically discounting daily prices according to forward bookings and promoted on last- minute booking websites. Common Pricing Types **Single or Double occupancy**- Common for B&B\'s there is a single rate and a double rate (which is not double that of the single rate). **Discounting**- Consider adding conditions to a discounted price like a minimum stay or number of travellers in the booking. **Package Deals**- Packaging can also be used to target niche markets effectively e.g golf weekends, food and wine tours, pampering packages etc **Commissions**- Many bookings will come via some sort of third party who will charge you a commission such as a retail travel agent, wholesaler, inbound tour operator or online travel agent (OTA). Chapter 7 **Promotion**- The most visible of the four Ps. promotion includes advertising direct mailing promotion, merchandising salesforce activities, brochure production, Interne communications, and public relations activities. **Advertising**- is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor. **Direct marketing-** is an interactive system of marketing that uses one or more advertising media to affect a measurable response. It seeks to establish continuing relationships between a company and its regular customers. **OBJECTIVES OF ADVERTISING** An advertising objective is a specific communication task to be accomplished with specific target audience during a specific period of time. Advertising can be classified based on its objectives. ** to inform, to persuade, to remind**. **Informative advertising**- is used to introduce a new product or to build up primary demand for the product. Companies employ aggressive tools to ensure that a new product creates excitement and demand within its target market. **Persuasive advertising**- is used when competition is stiff. Companies rely on persuasive advertising to be able to keep their market share. **Reminder advertising**- is very important for products that have reached the maturity stage. Products attempt to maintain market position even if they are already top of mind. ADVANTAGES OF DIRECT MARKETING **1. Precision Targeting** **2. Personalized Messages** **3. Privacy** **4. Faster Sales** **5. Variety of Packaging Options** **6. Less Competition** **7. Immediate Results** **8 Measurability** ELEMENTS OF A DIRECT MARKETING CAMPAIGN **(1) the list** **(2) the message** **(3) the offer** MEASURES OF SUCCESS **1 the number of inquiries generated** **2. the ratio of conversions or purchases realized from inquiries generated, and** **3. its communication impact** **Personal selling**- can be defined as the person-to-person communication between a salesperson a prospective customer in which needs are met in exchange for money or resources. **1 Prospecting** **2. Targeting** **3. Communicating** **4 Selling** **5 Servicing** **6. Information Gathering** **Public relations-**banks on the idea that if a credible person\--not related to your business-says something good about your product or service, then consumers may more certain that it is really good. MAJOR PUBLIC RELATIONS ACTIVITIES **1. Press/Media Relations** **2. Product Publicity** **3 Corporate Communications** **4. Lobbyin** **5 Counselling** CONTRIBUTIONS OF PUBLIC RELATIONS TO MARKETING The contributions of PR cannot be downplayed It can help marketing in the following ways **1 Assist in the launch of new product.** **2 Assist in repositioning a mature product.** **3 Build up interest in a product category.** **4 Influence specific target groups.** **5. Defend products that have encountered problems.** PUBLIC RELATIONS PROCESS **1. Understanding the firm\'s mission, culture, and target market** **2 Setting of objectives** **3. Defining the target market** **4. Designing the PR message** **5. Implementing the PR plan** **6. Evaluating PR results** PUBLIC RELATIONS TOOLS AND AUDIENCES **Public relations can be used to address various audiences such as employees. quests, community groups, other stakeholders, and special audiences.**. Chapter 8 WEB AND DESIGN OPTIMIZATION. 1.**Digital Marketing Fundamentals**: Understand the essential role of digital marketing in hospitality, crucial for competitiveness and guest attraction. 2.**Channel Proficiency**: Master key digital marketing channels like websites, social media, SEO, and SEM, leveraging their unique advantages for hospitality. 3.**Optimization Skills**: Acquire website optimization skills, enhancing user experience and driving conversions through design, responsiveness, and booking integration. 4.**Strategic Planning**: Develop skills in strategic planning, integrating SEO, SEM, social media, and reputation management to achieve business goals and guest satisfaction. **Mobile responsiveness**: With the increasing use of smartphones and tablets, optimizing websites for mobile devices is crucial to accommodate users accessing information on the go. **High-quality visuals**: Utilizing high-resolution images and videos showcasing the property\'s amenities, accommodations, and attractions can captivate potential guests and drive bookings. **Intuitive navigation**: Clear and intuitive navigation menus help visitors easily find the information they are looking for, such as room rates, amenities, dining options, and booking portals. ** Booking integration**: Seamless integration with online booking engines allows guests to make reservations directly through the website, streamlining the booking process and reducing bounce rates. Engine Marketing: A search engine is a software program or website that allows users to search for information on the internet. **Social media marketing:** Leveraging platforms such as Facebook, Instagram, Twitter, and LinkedIn allow hospitality businesses to share compelling content, interact with followers, and showcase their unique offerings. **SEM (Search Engine Marketing):** SEM involves paid advertising on search engines like Google. By running targeted campaigns, hospitality businesses can reach potential guests actively searching for accommodation, driving conversions and bookings. **SEO (Search Engine Optimization):** SEO focuses on improving a website\'s organic search rankings by optimizing content, meta tags, and coding. This helps attract relevant traffic and increase visibility without paying for ads. Chapter 9 DISTRIBUTION CHANNELS AND ITS FUNCTIONS **Direct distribution channels** are those the company uses on its own without the assistance of independent intermediaries. A direct system of distribution is one where the supplier (destination, airline, hotel, etc.) communicates directly with the customer. An **Indirect distribution channe**l, on the other hand, uses the assistance of independent intermediaries to distribute its products. Functions of Distribution Channel 1\. **Information. Distribution channels**. are exposed to information about what the market needs needs and wants. 10 They can gather marketing research and intelligence information about marketing environment. 2\. **Promotions. Distribution channels** help in developing and spreading persuasive communications about a company\'s current offer. 3\. **Contact Distribution channels** are the company\'s link to finding and communicating with prospective and current buyers. 4\. **Matching. Distribution channels** know what the product can do and what the buyer needs; hence, they can shape and fit the offer to those needs 5\. **Negotiation. Distribution channels** represent the company to the consumer during negotiation. Hence, they are equipped to settle on pricing and other terms of purchase and acquisition of products and services. 6\. **Physical Distribution. Distribution** channels handle the physical transport of goods and services to consumers. **MARKETING INTERMEDIARIES** **Marketing intermediaries are types of indirect distribution channels that an independent organizations that help distribute products and services.** 1\. TRAVEL AGENTS/RETAILERS THESE ARE THE MOST WIDELY USED MARKETING INTERMEDIARY IN THE TOURISM INDUSTRY (THOUGH THE INTERNET IS NOW BECOMING VASTLY POPULAR AS WELL). TRAVEL AGENTS OFFER WIDE ARRAY OF PRODUCTS AND SERVICES FROM TRANSPORTATION TO ACCOMMODATIONS AND TOUR PACKAGES. HUDSON (2008) CLAIMS THAT TRAVEL AGENTS ARE ABLE TO PERFORM FOUR DISTINCT FUNCTIONS AS FOLLOWS: **A.DISTRIBUTION AND SALES NETWORKING** **B. RESERVATION AND TICKETING** **C. INFORMATION PROVISION AND TRAVEL COUNSELING** **D. DESIGN OF INDIVIDUAL ITINERARIES,** **2. TOUR OPERATORS/WHOLESALERS** THESE ARE ORGANIZATIONS THAT OFFER PACKAGED VACATION TOURS TO THE GENERAL PUBLIC, TARGETING THE LEISURE MARKET. THE TOUR PACKAGE INCLUDES TRANSPORTATION AND ACCOMMODATION AS WELL AS MEALS, GROUND TRANSPORTATION, ENTERTAINMENT, AND ACTIVITIES**.** **3. TRAVEL SPECIALISTS** TRAVEL SPECIALISTS ARE ORGANIZATIONS THAT FOCUS ON ONE OR MORE FUNCTIONS OF THE DISTRIBUTION SYSTEM. **4. HOTEL SALES REPRESENTATIVES** HOTEL SALES REPRESENTATIVES SELL HOTEL ROOMS, FUNCTION ROOMS, AND OTHER SERVICES IN A PARTICULAR MARKET AREA. **5. GOVERNMENT TOURIST ASSOCIATIONS** NATIONAL, REGIONAL, AND LOCAL TOURISM AGENCIES OR OFFICES ARE AN EXCELLENT WAY TO SPREAD INFORMATION TO THE MARKET AND GAIN BOOKINGS. THEY USUALLY MARKET THEIR LOCALITY TO TOURISTS AND CARRY WITH THEM THE DIFFERENT ESTABLISHMENTS, PROPERTIES, AND ATTRACTIONS. WITHIN THEIR TERRITORY. **6. CONSORTIA** A CONSORTIUM IS A GROUP OF HOSPITALITY ORGANIZATIONS THAT ARE ALLIED FOR THE MUTUAL BENEFIT OF THE MEMBERS. **7. RESERVATION SYSTEMS** RESERVATION SYSTEMS ARE ENTITIES THAT PROVIDE A CENTRAL RESERVATION SYSTEM FOR HOTELS. THEY PROVIDE THE SYSTEM FOR SMALL CHAINS BY PROVIDING OVERSEAS RESERVATION SERVICES THROUGH A LOCAL NUMBER. **8. GLOBAL DISTRIBUTION SYSTEMS (GDS)** GLOBAL DISTRIBUTION SYSTEMS SUCH AS AMADEUS AND GALILEO ARE COMPUTERIZED RESERVATION SYSTEMS THAT SERVE AS PRODUCT CATALOGS FOR TRAVEL AGENTS AND OTHER DISTRIBUTORS **9. CONCIERGES** THE HOTEL FRONT OFFICE STAFF ARE USUALLY THE MOST FREQUENTLY ASKED HOTEL EMPLOYEES ABOUT THE NEAREST RESTAURANTS, SHOPPING MALLS, OR ATTRACTIONS. AS SUCH, THE CONCIERGE, BELL STAFF, AND FRONT DESK CLERKS SHOULD BE READY WITH GOOD RECOMMENDATIONS. **10. ONLINE TRAVEL AGENCIES** ONLINE TRAVEL AGENTS CONDUCT THEIR BUSINESS IN THE VIRTUAL WORLD, WITH NO PHYSICAL LOCATION OR STORES TO ENTERTAIN CLIENTS. 11.**DISTRIBUTION SYSTEMS IN THE SHARING ECONOMY** COMPANIES SUCH AS AIRBNB, GRAB, AND UBER ALLOW INDIVIDUALS TO SHARE THEIR HOMES, LODGING, TRANSPORTATION, ETC. WITH OTHERS 12.**RESTAURANT DISTRIBUTION CHANNELS** SINCE RESTAURANTS PRODUCE A TANGIBLE PRODUCT, IT CAN BE DELIVERED TO THE CUSTOMER UPON REQUEST. IT CAN ALSO BE PICKED UP THROUGH ACCESSIBLE DRIVE-THROUGH WINDOWS FOR TAKE- OUT. **TYPES OF CHANNELS** There are different levels of channel members, each layer performing a role to bring the product closer to the end user. These channels connect the flow of goods and services and payments from manufacturer to retailer in the most efficient means possible. Kotler e al. (2016) identify four types of channel levels as follows: 1\. **Channel 1** is the direct marketing channel where there is no intermediary the manufacturer directly sells to the consumer. 2\. **Channel 2** is where the manufacturer passes on the product or service to a retailer who sells it to the end consumer. 3\. **Channel 3** contains two levels where the goods pass through a wholesaler and retailer befo reaching the consumer. 4\. **Channel 4** contains three levels: wholesaler, jobber, and retailer. A jobber sells to small retailers who are not normally serviced by large wholesalers ADVANTAGES AND DISADVANTAGES TO THE FRANCHISEE To the Franchise Advantage Brand recognition Minimizes financial risk because of fewer chances of business foiture Faster business growth Assistance in the site selection Architectural plans Standard operating procedure software and manual National contacts with suppilers Product development Consulting on managerial and technical concems Access to a comprehensive reservation or delivery networkz Establish customer base Disadvantage Required fees and royalties Sleep initial fees Retum on investment might not be as quckas expected Limits products and recipes to be sold Franchisee is subject to rules and regulations on operating hours and minimum volume sold per product The franchisor\'s performance affacts the profitability of the franchisee Limits the creativity of the franchisee in all aspects of the business Territorial disputes on franchise agreements To the franchisor Advantage Receives a percentage of gross sales Expands the brand without much capitalization Can achieve rapid growth through its franchisees Gets negotiating support for national contacts with supplies Takes advantage of economies of scale Disadvantage Limits other options of expanding distribution Franchisees must be monitored closely to ensure product and service consistency. Poorly run franchise units can reflect negatively on the entire brand. Limited ability to require franchisees to change operations strategies Franchisees want and need to have an active role in decision-making. DELIVERY SYSTEMS In the Philippines, during the lockdown and enhanced community quarantine (ECQ) due to the deadly COVID-19 pandemic, mobility solutions stirred up as people demanded for goods delivered right on their doorsteps. One very useful mobility application is the food delivery service. This has replaced traditional delivery services, which are straight from the restaurant to your homes.