M&S1, Answers Chapter 2

MARKETING& SALESHOSPITALIT Y MARKETING & SALES FOR THE HOSPITALITY INDUSTRY ELLEN VAN KOOTEN Chapter 2 | Answers | Questions about the chapter 1

Marketing & Sales for the Hospitality Industry | Part 1Chapter 2 | Answers | Questions about the chapter 1. Name the main features of the hospitality product. The main features of the hospitality product are: 1. The hospitality service process is labour intensive. There is a good reason that the P for Personality is part of the hospitality mix. Service provision is done by the entrepreneur and employees, this makes the provision of hospitality services so costly. That’s why increasinglymore hospitality concepts are being developed that keep the personnel costs down. These businesses do have a lower level of service. 2. The hospitality product can be difficult to keep in stock or to produce in advance. Think of the number of tables or hotel rooms, or the number of staff and the short shelf life of many raw materials/ingredients. 3. The product must be continuously available. Once the guest is inside, he must be able to use the hospitality product as soon as possible. 4. The guest can assess the product only after he has made use of the services. This makes the hospitality product particularly sensitive to word-of-mouth advertising and to negative stories about the business. 2. What businesses (manifestations) make up the hospitality industry? 1. the beverage supply sector; 2. the meals supply sector; 3. the food supply sector; 4. the hotel sector. 3. What marketing tools comprise the hospitality mix? 1. Product: Food, drink and accommodation; 2. Presentation: The surroundings, decor and atmosphere of the hospitality establishment; 3. Personality: the method of hospitality and the service provided. 4. What is the difference between supply chain and industry? The sequence of businesses needed to make a product is called a supply chain. One link in the supply chain represents a large number of businesses. All of these businesses in the link are called an industry or sector. An industry consists of businesses that have a similar function in the supply chain. 5. Name two vertical changes in the supply chain. 1. Integration: A business takes over a link in the supply chain. This can be a link above it or below it in the supply chain. The supply chain becomes shorter. 2. Differentiation: A business pushes off tasks to another company within the supply chain. This adds a link and the supply chain becomes longer 6. Name two horizontal changes in the supply chain. 1. Specialisation: A business pushes off tasks to another company within the supply chain. This adds a link and the supply chain becomes longer. The supply chain has become narrower. 2. Parallelisation: The opposite of specialisation. An entrepreneur is active in multiple supply chains.The supply chain has become wider. 7. State the pros and cons of collaboration in the hospitality industry.Version 1 | 01-10-2018 | [email protected]

Marketing & Sales for the Hospitality Industry | Part 1Pros Cons•Advocacy •Independence This could be something like an Entrepreneur loses some of his entrepreneurial association in a certain city. independence. This association protects the interests of the entrepreneurs in decisions to be made •Flexibility by the town council. Entrepreneur has to take the collaborative partnership into account when taking•Purchasing decisions; he herby has less flexibility. Purchasing together is more economical. •Invest•Sales and promotion Entrepreneur will need to invest. The fixed costs remain the same and only the circulation volume becomes larger. •Long term Positive results of collaboration do not•Finance/Administration happen immediately or automatically. You Some collaborative partnerships have their only notice the benefits in the longer term. own administrative office. •Effort•Personnel Collaboration requires effort and sacrifices Some collaborative partnerships participate before results are posted. in joint recruitment and have a personnel pool. 8. What are horizontal and vertical collaboration? Horizontal collaboration occurs between entrepreneurs who are in the same link within the supply chain and perform the same function. Vertical collaboration occurs when two or more links in the supply chain collaborate. 9. McDonald’s is a famous franchise chain. What does this entail? An entrepreneur devises a good business formula. Instead of setting up branches himself, he engages independent entrepreneurs who can use the concept in exchange for paying a fee. In order to keep the concept recognisable, these entrepreneurs have to adhere to certain rules. Everything is laid out in thick manuals at McDonald's. McDonald’s employees have to study these manuals and all work must be done according to strict patterns. The decor, the food and the staff uniforms are also regulated. There are fixed suppliers from where purchasing must be done. 10. View the websites of Foodinspiration, Koninklijke Horeca Nederland and the local Chamber of Commerence. Answer the following questions: a. What can these institutions mean to a hospitality entrepreneur? Foodinspiration: inspiration for the newest trends for food and f&b. Koninklijke Horeca Nederland: largest industry association for hospitality entrepreneurs, stands up for the interests of hospitality businesses. Chamber of Commerce: Every hospitality establishment should be registered with the Chamber of Commerce within a week after opening. This registration is required. The Chamber of Commerce is also an information and advice centre for businesses, in particular for the starting entrepreneur. b. What are the main categories? Public industry organisations: organisations where a hospitality entrepreneur must register. Private industry organisations: organisations where a hospitality entrepreneur can be a member of. c. Where do you find the information for starting up a business? a. www.khn.nl > lid worden > Ik wil een horecabedrijf starten b. www.kvk.nl > advies & informatie > bedrijf starten of overnemen d. What information do these institutions provide regarding the marketing and sales of a company? These organisations offer advice and information about marketing & sales. Examples are information about innovation, connecting and the legislation of advertisement.Version 1 | 01-10-2018 | [email protected]