the are the PPW slides

I need a discussion about this powerpoint.

Chapter 2: Service Characteristics of Hospitality and Tourism Marketing Chapter Objectives 1. Describe a service culture. 2. Identify four service characteristics that affect the marketing of a hospitality or travel product. 3. Explain seven marketing strategies for service businesses. Teaching Suggestions The following explanations and suggestions are outlined based on the Chapter Objectives. 1. Describe a service culture. A service culture focuses on serving the customer and satisfying their needs. The service culture must begin with top management and flow down. Present to your class different hospitality companies that exemplify a service culture (Four Seasons, Ritz Carlton, etc.) 2. Identify four service characteristics that affect the marketing of a hospitality or travel product. Intangibility: Purchasers of hospitality and tourism product usually have nothing physical to show at the end of their experience. Because the product is intangible it is difficult to evaluate the product before purchase. Discuss with your class that most products are a mix of tangible products and intangible products. o In a restaurant, the meal is tangible. In a fast food restaurant, it is a large portion of the overall product. In an upscale restaurant, the service of the food or intangible portion of the service becomes more important. Inseparability means all customer-contact employees become part of the product. It also means customers become part of the product and we have to manage our customer. You can ask students to give examples of when customers influenced the satisfaction of other customers. o For example, drunken conventioneers in a romantic restaurant, or someone smoking next to a nonsmoker, influence the satisfaction of other guests. Variability: Lack of consistency. Ask students how many think McDonald's makes an excellent hamburger. Then ask them how many have been to McDonald's in the last year. More students will answer affirmatively on the second question. o One of the reasons for McDonald's success is that they have been able to master variability. When you stop at McDonald's, you know what you will receive. 14 Perishability: A restaurant which has a capacity of serving 400 customers and only serves 100 on Monday night has lost the ability to serve those customers. They cannot place the unserved 300 covers in inventory and sell them the next night. A manufacturing company producing tangible goods can inventory goods, thus they do not have to match capacity and demand in the short term. o Most students understand perishability in a hotel or airplane, but some do not understand it in a restaurant. Therefore, this is a good example to bring up in class. 3. Explain seven marketing strategies for service businesses. Today as competition and costs increase and as productivity and quality decrease, more marketing sophistication is needed. The seven marketing strategies include: Managing Service Differentiation: Service companies can differentiate their service delivery through the people that work for them, their physical environment and their service delivery process. British Airways example. Managing Service Quality: Once customer expectations are determined, managers need to develop a service delivery system that will deliver a service that meets the guest's expectations. Ritz-Carlton example. Managing Service Productivity: In attempting to improve service productivity, companies must be mindful of how they create and deliver customer value. McDonald's example. Resolving Customer Complaints: A company cannot always prevent service problems, but it can learn from them. Good service recovery can turn angry customers into loyal ones. To have effective complaint resolution, managers must empower frontline service employees. Marriott example. Managing Employees As Part Of The Product: The manager must hire friendly and capable employees and formulate policies that support positive relations between employees and guests. The job of the marketing department includes encouraging everyone in the organization to practice custo mer-oriented thinking. Four Seasons example.. Managing Perceived Risk: Customers who buy hospitality products experience some anxiety because they cannot experience the product beforehand. Crowne Plaza example. Managing Capacity and Demand: Corporate management is responsible for matching capacity with demand on a long-term basis; unit managers are responsible for matching capacity with fluctuations in short-term demand. Mother's Day and New Year's Eve examples. 15 Chapter Outline I. The Service Culture. The service culture focuses on serving and satisfying the customer. The service culture has to start with top management and flow down. Il. Five Characteristics of Services [Slide 2-3] A Intangibility. Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are purchased. To reduce uncertainty caused by intangibility, buyers look for tangible evidence that will provide information and confidence about the service. B. Inseparability. In most hospitality services, both the service provider and the customer must be present for the transaction to occur. Customer- contact employees are part of the product. Inseparability also means that customers are part of the product. The third implication of inseparability is that customers and employees must understand the service delivery system. C. Variability. Service quality depends on who provides the services and when and where they are provided. Services are produced and consumed simultaneously. Fluctuating demand makes it difficult to deliver consistent products during periods of peak demand. The high degree of contact between the service provider and the guest means that product consistency depends on the service provider's skills and performance at the time of the exchange. [Slide 2-4] D. Perishability Services cannot be stored. If service providers are to maximize revenue, they must manage capacity and demand because they cannot carry forward unsold inventory. IlII. Service Management Concepts A. Service Profit Chain [Slide 2-5] B. Types of Marketing [Slide 2-6] 1.Internal Marketing 2.External Marketing 3.Interactive Marketing IV. Management Strategies for Service Businesses (Slide 2-7] A. Managing differentiation. The solution to price competition is to develop a differentiated offering. The offer can include innovative features that set one company's offer apart from that of its competitors. B. Managing service quality. With hospitality products, quality is measured by how well customer expectations are met. [Slide 2-8] C. Manage Service Productivity D. Resolving customer complaints. Resolving customer complaints is a critical component of customer retention. 16 E. Managing employees as part of the product. In the hospitality industry, employees are a critical part of the product and marketing mix. The human resource and marketing department must work closely together. The task of internal marketing to employees involves the effective training and motivation of customer- contact employees and supporting service personnel. F. Managing percelved risk. The high risk that people perceive when purchasing hospitality products increases loyalty to companies that have provided them with a consistent product in the past. G. Managing capacity and demand. Because services are perishable, managing capacity and demand is a key function of hospitality marketing. First services must adjust their operating systems to enable the business to operate at maximum capacity Second, they must remember that their goal is to create satisfied customers. Research has shown that customer complaints increase when service firms operate above 80 percent of their capacity. [Slides 2-9 to 2-10 Chapter 3: The Role of Marketing in Strategic Planning Chapter Objectives 1. Explain companywide Srregic planning. 2. Understand the concepts of stakeholders, processes, resources, and organization as they relate to a high-performing business. 3. Explain the four planning activities of corporate strategic planning. 4. Understand the processes involved in defining a company's mission and setting goals and objectives. 5. Discuss how to design business portfolios and growth strategies. 6. Explain the steps involved in the business strategy planning process Explain companywide strategic planning Understand the concepts of stakeholders, processes, resources, and organization as they relate to a high-performing business. Explain the four planning activities of corporate strategic planning Understand the processes involved in defining a company's mission and setting goals and objectives. Discuss how to design business portfolios and growth strategies. Explain the steps involved in the business strategy planning process. Chapter Outline I. Nature of High-Performance Business [Slide 3-3] A. Stakeholder. The principle that a business must at least strive to satisfy the minimum expectations of each stakeholder group. B. Processes. Companies build cross-functional teams that manage core business processes in order to be superior competitors. C. Resources. Companies decide to outsource less critical resources. They identify their core competencies and use them as the basis for their strategic planning. D. Organization. Companies align their organization's structure, policies, and culture to the changing requirements of business strategy. II. Corporate Strategic Planning: Defining Marketing's Role A. Defining the Corporate Mission. A mission statement is a statement of the organization's purpose-what it wants to accomplish in the larger environment. [Slide 3-4] B. Setting Company Objectives and Goals. The company needs to turn its mission into detailed supporting objectives for each level of management. Marketing strategies and programs must be developed to support these marketing objectives. C. Designing the Business Portfolio. Market definitions of a business are superior to product definitions. A business must be viewed as a customer-satisfying process, not a product-producing process. Companies should define their business in terms of customer needs, not products. 1. Developing Growth Strategies. Companies need growth if they are to compete and attract top talent. [Slide 3-5] a. Ansoff product-market expansion grid offers a useful framework for examining growth. 2. Diversification Growth. Makes sense when good opportunities can be found outside the present businesses. [Slide 3-6) a. Concentric Diversification Strategy. The company could seek new products that have technological or marketing synergies with existing product lines, even though the products may appeal to a new class of customers b. Horizontal Diversification Strategy. The company might search for new products that could appeal to its current customers, although technologically unrelated to its current product line. c. Conglomerate Diversification Strategy. The company might seek new businesses that have no relationship to the company's current technology, products, or markets. 18 3. Integrative Growth. Opportunities in diversification, market development, and product development can be seized through integrating backward, forward, or horizontally within that business's industry. [Slide 3-7] a. Backward Integration. Acquiring a supplier. b. Forward Integration. For example, a hotel might acquire tour wholesalers or travel agents. c. Horizontal Integration. Acquiring one or more competitors. IIII. Marketing Strategy and the Marketing Mix A. Customer-Driven Marketing Strategy. Before it can satisfy consumers, a com pany must first understand their needs and wants. Thus sound marketing requires a careful customer analysis. Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. [Slide 3-8] 1. Market Segmentation. The market consists of many types of customers, products, and needs. The marketer must determine which segments offer the best opportunities. Consumers can be grouped and served in various ways based on geographic, demographic, psychographic, and behavioral factors. 2. Market Targeting. Market targeting involves evaluating each market segment's attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time. 3. Market Differentiation and Positioning. After a company has decided which market segments to enter, it must decide how it will differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments. B. Developing an Integrated Marketing Mix. The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. [Slide 3-9] 1. Product. The goods-and-services combination the company offers to the target market. 2. Price. The amount of money customers must pay to obtain the product. 3. Place. Company activities that make the product available to target customers. 1 HOSPITALITY MARKETING Discussion Questions# 3 Chapter 2: Service Characteristics of Hospitality and Tourism Marketing Chapter Objectives 1. Describe a service culture. 2. Identify four service characteristics that affect the marketing of a hospitality or travel product. 3. Explain seven marketing strategies for service businesses. Teaching Suggestions The following explanations and suggestions are outlined based on the Chapter Objectives. 1. Describe a service culture. A service culture focuses on serving the customer and satisfying their needs. The service culture must begin with top management and flow down. Present to your class different hospitality companies that exemplify a service culture (Four Seasons, Ritz Carlton, etc.) 2. Identify four service characteristics that affect the marketing of a hospitality or travel product. Intangibility: Purchasers of hospitality and tourism product usually have nothing physical to show at the end of their experience. Because the product is intangible it is difficult to evaluate the product before purchase. Discuss with your class that most products are a mix of tangible products and intangible products. o In a restaurant, the meal is tangible. In a fast food restaurant, it is a large portion of the overall product. In an upscale restaurant, the service of the food or intangible portion of the service becomes more important. Inseparability means all customer-contact employees become part of the product. It also means customers become part of the product and we have to manage our customer. You can ask students to give examples of when customers influenced the satisfaction of other customers. o For example, drunken conventioneers in a romantic restaurant, or someone smoking next to a nonsmoker, influence the satisfaction of other guests. Variability: Lack of consistency. Ask students how many think McDonald's makes an excellent hamburger. Then ask them how many have been to McDonald's in the last year. More students will answer affirmatively on the second question. o One of the reasons for McDonald's success is that they have been able to master variability. When you stop at McDonald's, you know what you will receive. 14 Perishability: A restaurant which has a capacity of serving 400 customers and only serves 100 on Monday night has lost the ability to serve those customers. They cannot place the unserved 300 covers in inventory and sell them the next night. A manufacturing company producing tangible goods can inventory goods, thus they do not have to match capacity and demand in the short term. o Most students understand perishability in a hotel or airplane, but some do not understand it in a restaurant. Therefore, this is a good example to bring up in class. 3. Explain seven marketing strategies for service businesses. Today as competition and costs increase and as productivity and quality decrease, more marketing sophistication is needed. The seven marketing strategies include: Managing Service Differentiation: Service companies can differentiate their service delivery through the people that work for them, their physical environment and their service delivery process. British Airways example. Managing Service Quality: Once customer expectations are determined, managers need to develop a service delivery system that will deliver a service that meets the guest's expectations. Ritz-Carlton example. Managing Service Productivity: In attempting to improve service productivity, companies must be mindful of how they create and deliver customer value. McDonald's example. Resolving Customer Complaints: A company cannot always prevent service problems, but it can learn from them. Good service recovery can turn angry customers into loyal ones. To have effective complaint resolution, managers must empower frontline service employees. Marriott example. Managing Employees As Part Of The Product: The manager must hire friendly and capable employees and formulate policies that support positive relations between employees and guests. The job of the marketing department includes encouraging everyone in the organization to practice custo mer-oriented thinking. Four Seasons example.. Managing Perceived Risk: Customers who buy hospitality products experience some anxiety because they cannot experience the product beforehand. Crowne Plaza example. Managing Capacity and Demand: Corporate management is responsible for matching capacity with demand on a long-term basis; unit managers are responsible for matching capacity with fluctuations in short-term demand. Mother's Day and New Year's Eve examples. 15 Chapter Outline I. The Service Culture. The service culture focuses on serving and satisfying the customer. The service culture has to start with top management and flow down. Il. Five Characteristics of Services [Slide 2-3] A Intangibility. Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are purchased. To reduce uncertainty caused by intangibility, buyers look for tangible evidence that will provide information and confidence about the service. B. Inseparability. In most hospitality services, both the service provider and the customer must be present for the transaction to occur. Customer- contact employees are part of the product. Inseparability also means that customers are part of the product. The third implication of inseparability is that customers and employees must understand the service delivery system. C. Variability. Service quality depends on who provides the services and when and where they are provided. Services are produced and consumed simultaneously. Fluctuating demand makes it difficult to deliver consistent products during periods of peak demand. The high degree of contact between the service provider and the guest means that product consistency depends on the service provider's skills and performance at the time of the exchange. [Slide 2-4] D. Perishability Services cannot be stored. If service providers are to maximize revenue, they must manage capacity and demand because they cannot carry forward unsold inventory. IlII. Service Management Concepts A. Service Profit Chain [Slide 2-5] B. Types of Marketing [Slide 2-6] 1.Internal Marketing 2.External Marketing 3.Interactive Marketing IV. Management Strategies for Service Businesses (Slide 2-7] A. Managing differentiation. The solution to price competition is to develop a differentiated offering. The offer can include innovative features that set one company's offer apart from that of its competitors. B. Managing service quality. With hospitality products, quality is measured by how well customer expectations are met. [Slide 2-8] C. Manage Service Productivity D. Resolving customer complaints. Resolving customer complaints is a critical component of customer retention. 16 E. Managing employees as part of the product. In the hospitality industry, employees are a critical part of the product and marketing mix. The human resource and marketing department must work closely together. The task of internal marketing to employees involves the effective training and motivation of customer- contact employees and supporting service personnel. F. Managing percelved risk. The high risk that people perceive when purchasing hospitality products increases loyalty to companies that have provided them with a consistent product in the past. G. Managing capacity and demand. Because services are perishable, managing capacity and demand is a key function of hospitality marketing. First services must adjust their operating systems to enable the business to operate at maximum capacity Second, they must remember that their goal is to create satisfied customers. Research has shown that customer complaints increase when service firms operate above 80 percent of their capacity. [Slides 2-9 to 2-10 Chapter 3: The Role of Marketing in Strategic Planning Chapter Objectives 1. Explain companywide Srregic planning. 2. Understand the concepts of stakeholders, processes, resources, and organization as they relate to a high-performing business. 3. Explain the four planning activities of corporate strategic planning. 4. Understand the processes involved in defining a company's mission and setting goals and objectives. 5. Discuss how to design business portfolios and growth strategies. 6. Explain the steps involved in the business strategy planning process Explain companywide strategic planning Understand the concepts of stakeholders, processes, resources, and organization as they relate to a high-performing business. Explain the four planning activities of corporate strategic planning Understand the processes involved in defining a company's mission and setting goals and objectives. Discuss how to design business portfolios and growth strategies. Explain the steps involved in the business strategy planning process. Chapter Outline I. Nature of High-Performance Business [Slide 3-3] A. Stakeholder. The principle that a business must at least strive to satisfy the minimum expectations of each stakeholder group. B. Processes. Companies build cross-functional teams that manage core business processes in order to be superior competitors. C. Resources. Companies decide to outsource less critical resources. They identify their core competencies and use them as the basis for their strategic planning. D. Organization. Companies align their organization's structure, policies, and culture to the changing requirements of business strategy. II. Corporate Strategic Planning: Defining Marketing's Role A. Defining the Corporate Mission. A mission statement is a statement of the organization's purpose-what it wants to accomplish in the larger environment. [Slide 3-4] B. Setting Company Objectives and Goals. The company needs to turn its mission into detailed supporting objectives for each level of management. Marketing strategies and programs must be developed to support these marketing objectives. C. Designing the Business Portfolio. Market definitions of a business are superior to product definitions. A business must be viewed as a customer-satisfying process, not a product-producing process. Companies should define their business in terms of customer needs, not products. 1. Developing Growth Strategies. Companies need growth if they are to compete and attract top talent. [Slide 3-5] a. Ansoff product-market expansion grid offers a useful framework for examining growth. 2. Diversification Growth. Makes sense when good opportunities can be found outside the present businesses. [Slide 3-6) a. Concentric Diversification Strategy. The company could seek new products that have technological or marketing synergies with existing product lines, even though the products may appeal to a new class of customers b. Horizontal Diversification Strategy. The company might search for new products that could appeal to its current customers, although technologically unrelated to its current product line. c. Conglomerate Diversification Strategy. The company might seek new businesses that have no relationship to the company's current technology, products, or markets. 18 3. Integrative Growth. Opportunities in diversification, market development, and product development can be seized through integrating backward, forward, or horizontally within that business's industry. [Slide 3-7] a. Backward Integration. Acquiring a supplier. b. Forward Integration. For example, a hotel might acquire tour wholesalers or travel agents. c. Horizontal Integration. Acquiring one or more competitors. IIII. Marketing Strategy and the Marketing Mix A. Customer-Driven Marketing Strategy. Before it can satisfy consumers, a com pany must first understand their needs and wants. Thus sound marketing requires a careful customer analysis. Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. [Slide 3-8] 1. Market Segmentation. The market consists of many types of customers, products, and needs. The marketer must determine which segments offer the best opportunities. Consumers can be grouped and served in various ways based on geographic, demographic, psychographic, and behavioral factors. 2. Market Targeting. Market targeting involves evaluating each market segment's attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time. 3. Market Differentiation and Positioning. After a company has decided which market segments to enter, it must decide how it will differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments. B. Developing an Integrated Marketing Mix. The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. [Slide 3-9] 1. Product. The goods-and-services combination the company offers to the target market. 2. Price. The amount of money customers must pay to obtain the product. 3. Place. Company activities that make the product available to target customers. 1 HOSPITALITY MARKETING Discussion Questions# 3