M&S2, Answers Chapter 5

MARKETING& SALESHOSPITALIT Y MARKETING & SALES FOR THE HOSPITALITY INDUSTRY ELLEN VAN KOOTEN Chapter 5 | Answers | Questions about the chapter 2

Marketing & Sales for the Hospitality Industry | Part 2Chapter 5 | Answers | Questions about the chapter 1. Answer the question and then find the answer in the chapter. a. In your own words, explain what the owner of a restaurant must focus on in the marketing tool of place. Multiple answers possible, at the discretion of the teacher. For example: In practice, hospitality entrepreneurs take one of two approaches to choosing a location. In the first approach, the entrepreneur consciously chooses a certain target group and develops a good idea of the required business formula. The entrepreneur then seeks out a catchment area where it will be possible to implement his business formula and make a profit. He then looks for a location in which he can reach his chosen target group. This entrepreneur will primarily want to know if a potential property meets his requirements. He can develop a list of requirements that he will use to find the best location and premises. In the second approach, the hospitality entrepreneur sees a property that is to let or for sale. He will want to consider the possibilities of these premises. He will want to know which business type and formula best suit these premises and will want to investigate the surrounding area. In this investigation, he will want to take a closer look at supply and demand and the associated factors in the catchment area. b. List six important points. Multiple answers possible, at the discretion of the teacher. For example: i. Demand ii. Location costs iii. Competition iv. Staff recruitment v. Infrastructure vi. Legislation vii. Landscape and climate viii. Presence of large businesses and institutions 2. In practice, hospitality entrepreneurs take two different approaches to choosing a location. The first is based on a concept. The second is based on the entrepreneur seeing a building to let or for sale. He will want to consider the possibilities of these premises. He will want to know which business type and formula best suit these premises and will want to investigate the surrounding area. In this investigation, he will want to take a closer look at supply and demand and the associated factors in the catchment area. Important factors here are: a. Customer loyalty to an area, turnover forecast, macro level market analysis and meso level market analysis. b. The six Ps: product, presentation, personality, place, price and promotion. c. The hospitality concept. 3. What is a market prognosis? A market prognosis is an estimate of the possible turnover that all hospitality entrepreneurs could earn as a whole. 4. Which factors are relevant when choosing a business location? a. Customer loyalty to an area, turnover forecast and macro-level market analysis. b. Turnover forecast, micro-level market analysis and macro-level market analysis. c. Customer loyalty to an area, turnover forecast and purchasing strategy. 5. What does the entrepreneur take into account when making a turnover forecast? a. Business size, attractiveness of the location, competitiveness of his business formula, strength of the competition. b. Present VAT rates, purchasing power and government policy. c. Business size, attractiveness of the business plan and upcoming legislation.Version 1 | 15-10-2018 | [email protected]

Marketing & Sales for the Hospitality Industry | Part 2 6. Give an example of a macro-level market analysis of a restaurant. Multiple answers possible, at the discretion of the teacher. For example: If an entrepreneur wants to investigate whether a location is attractive enough and has sufficient potential turnover for a restaurant, he will have to investigate this in a large region. When opening a higher segment restaurant for example. 7. We distinguish between A, B and C locations. Which of the following is correct? a. A locations are locations with the right footfall, B locations are within walking distance of the centre and C locations are by a motorway exit. b. A locations are locations within walking distance of the centre, B locations are locations with the right footfall and C locations are locations by a motorway exit. c. A locations are locations by a motorway exit, B locations are locations with the right footfall and C locations are locations within walking distance of the centre. 8. The marketing tool of place is the least flexible marketing tool. Which of the two statements below is correct? 1. Once the hospitality business is established somewhere, the entrepreneur cannot change location at short notice. 2. The other marketing tools can generally compensate for an inferior location. a. Statement 1 is correct. b. Statement 2 is correct. c. Both statements are correct. d. Neither statement is correct. 9. Which requirements must a building meet for a hospitality entrepreneur? a. Legislation, appearance and location. b. Structural condition, location costs and visibility. c. Visibility, accessibility and location. d. External presentation, accessibility and appearance. 10. What is meant by goodwill? a. The fee for taking on the good name of the previous entrepreneur. b. The fee for taking on the good name of the business of the previous owner. c. The fee for taking on the inventory of the business. 11. What is the difference between desk research and field research? a. Desk research is performed in an office and field research is performed with data that is already available or has already been acquired. b. Desk research is research performed with already available or acquired data and field research is research performed with data that is specially acquired for this research. c. There is no difference between desk research and field research.Version 1 | 15-10-2018 | [email protected]