M&S1, Answers Chapter 4

MARKETING& SALESHOSPITALIT Y MARKETING & SALES FOR THE HOSPITALITY INDUSTRY ELLEN VAN KOOTEN Chapter 4 | Answers | Questions about the chapter 1

Marketing & Sales for the Hospitality Industry | Part 1Chapter 4 | Answers | Questions about the chapter1. In the hospitality industry we (also) speak of the market for ‘demanders’ and ‘suppliers’. What do we mean by this? Demanders are the consumers/guests or customers, for example a guest who’s having dinner.Suppliers are the hospitality entrepreneurs. The number of suppliers and the comparability ofthe product determine the level of competition. It’s important for the individual entrepreneur toknow how many suppliers are on the market. This determines his behaviour on the market and hisfreedom in setting prices.2. Name the four theoretical supply situations and explain these using an example. 1. Monopoly: one supplier with a unique product. i. ANWB is an example of a former monopoly in the Netherlands, but it lost its monopoly after the introduction of Route Mobiel. 2. Oligopoly: a limited number of suppliers with the same product or similar products. i. Three cafeterias in the same residential area. The cafeterias keep an eye on each other's chip prices, but will profile themselves against their competitors based on the quality of their products, the chosen range and any homemade items. 3. Full competition: many suppliers with the same product (homogeneous product). i. Only the market for agricultural products consists of a homogeneous product and can contain many suppliers and many demanders. 4. Monopolistic competition: many suppliers with comparable products (heterogeneous product). i. The more a supplier can make his product stand out from the competition and can adapt to the wishes of the customer, the more freedom he has in determining prices. This makes him less sensitive to the behaviour of the other suppliers.3. How should a business deal with competition? Porter distinguishes three basis points for making the most of a competitive advantage. What are they? 1. Cost leadership: A cost leader beats the competition by selling cheaper products than his competitor. 2. Product differentiation: The entrepreneur distinguishes himself from his competitors by supplying products and services with a clear added value. 3. Focus strategy: People use this strategy on one or several groups of customers with the same wishes and needs.4. The hospitality entrepreneur will have to do research on different levels. What is the difference between an analysis of the macro environment and an analyses of the meso environment. In order to get a good picture of the developments in the supply side of the hospitality market in the coming years, he will not just have to keep an eye on national developments (macro environmental analysis) but also on developments within the industry sector (meso environmental analysis). Analysis macro environment Analysis meso environmentFor example information from: For example information from: 1. Statistics Netherlands (CBS) 1. Watching suppliers of hospitality 2. The Netherlands Board of Tourism and products in his service area; Coventions (NBTC) 2. Examining the history and opportunities 3. The Netherlands institute for Social of his service area; Research (SCP) 3. Examining the number of competitors in 4. Koninklijke Horeca Netherlands (KHN) the service area 5. Foodstep 6. Other media: newspapers, trade magazines and the internet.5. The hospitality entrepreneur can assess the competition on the basis of five points: 1. Characteristic description of the 6 Ps. 2. What are the strengths and weaknesses of the direct competitors?Version 1 | 01-10-2018 | [email protected]

Marketing & Sales for the Hospitality Industry | Part 1 3. How does the competitor distinguish themselves positively in the market? 4. How do the competing hospitality entrepreneurs profile themselves? 5. What competitive advantage does your own business have? 6. What stimuli influence a consumer’s behaviour? Infinite stimuli influence a consumer’s behaviour. For example: - Micro environment: quality of employers and/or service; quality of the product. - Meso environment: prices for the products of different hospitality establishments. - Macro environment: economic situation in the country influences the consumer’s behaviour.Version 1 | 01-10-2018 | [email protected]