Inkijkexemplaar_Marketing & Sales for the Hospitality_2

Marketing & Sales for the Hospitality Industry Social media is the collective name for all Internet applications that make it possible to share information with others in a user-friendly way. It does not only relate to information in the form of a text (news, articles). Sound (podcasts, music) and images (photos, videos) are also shared on social-media websites. In other words, social media stands for: ‘media that allows you to socialise with others in that particular environment'. Social media can contribute to various business goals, such as:INKIJKEXEMPLAAR ©SVH • increasing brand awareness; • increasing visitors, leads, sales; • improving recruitment; • improving customer satisfaction; • improving product development. Businesses must take various costs into account, and with the rapid development of social media it is not always easy to keep track of these. These costs include: • investing in technology/hardware; • investing in time tracking / embedding in the organisation / operationalisation / monitoring / training; • updates/webcare; • developing and following social media trends; • improving product development.Social media marketing Social media marketing is the fastest growing form of content marketing. Content marketing is about communicating with potential customers without selling them anything. The emphasis therefore does not lie on products or services but on providing visitors with information that they need. This information will help them solve their problem. The concept behind content marketing is that if you as a business constantly offer your target group valuable information, they will reward you in the end with loyalty to your brand. There are two ways in which interaction takes place: • The business responds on the social platforms where potential customers/guests hang out (Facebook, for instance). • Customers/guests can respond on platforms (through www.iens.nl, for instance) about the business and/or its campaigns.200

Chapter 7 | Promotion & social mediaSocial Media Overview of the ‘Big Five’ (2015)INKIJKEXEMPLAAR ©SVHFacebook Target group: Broad and diverse, currently mainly 30-50-year-olds are active on Facebook. Characteristics: Facebook is mainly used to share messages and photos with friends and acquaintances (private). Marketing tips: Hold prize draws, announce events, create brand experience and use as an (extra) sales channel. Twitter Target group: Broad and diverse, emphasis on media, HRM and consultants. Characteristics: You have 140 characters in which to post your thoughts, appeal, idea, news, link, fact or special offer. People can follow your Twitter account. Marketing tips: Generate buzz about fast customer service, a campaign or an event, share knowledge or use the public for crowdsourcing. Google+ Target group: Leaders, trendsetters. Characteristics: Google+ is like Facebook in that you can share special offers, thoughts, blogs, videos and other online activities and people can follow you. The big difference is that it is easy to address your followers in separate circles. Marketing tips: Share targeted knowledge with specific circles, provide extensive customer service, improve or develop new products or services through crowdsourcing. LinkedIn Target group: Business community. Characteristics: LinkedIn is mainly used as an online business card and curriculum vitae (cv) and to maintain professional contacts. Marketing tips: Publish job vacancies and/or actively seek suitable candidates and share knowledge in the group discussions. Instagram Target group: Mainly young people between 20 and 30 are active on Instagram. Characteristics: Instagram is an app that enables you to add appealing filters to photos. It also makes it easy to tag and share photos. Marketing tips: Document business activities, create atmosphere, generate buzz about campaign or event or promote business locations. 201

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Chapter 7 | Promotion & social media Which medium a hospitality entrepreneur chooses depends on: • the reach and coverage of the medium within the target group; • how suited the medium is to getting the message across; • the cost of advertising in a particular medium.INKIJKEXEMPLAAR ©SVH Reach and coverage The hospitality entrepreneur will want to know how many people he can reach through a certain medium. He can use the circulation and estimated average number of readers/viewers per copyReach of a particular medium to determine its reach. This information is available for most printed and audiovisual media.Coverage The hospitality entrepreneur will mainly be interested in which percentage of his target group this medium will reach. This is called the coverage of the medium. Each entrepreneur can have a different target group, and little information is available about this. The entrepreneur must study the viewing, listening, reading and purchasing behaviour of his target group in order to determine which medium is of interest to him. Popularity of Social Media Sites 10,000,000 7,500,000 5,000,000 2,500,000 0 Nov 201F0eb 201M1ay 201A1ug 201N1ov 201F1eb 201M2ay 201A2ug 201N2ov 201F2eb 201M3ay 201A3ug 201N3ov 201F3eb 201M4ay 201A4ug 201N4ov 201F4eb 2015  Facebook    Hyves    Twitter    LinkedIn    Google+    Tumblr    Pinterest Source: www.marketingfacts.nl/statistieken/detail/populariteit-sociale-media# 203

Marketing & Sales for the Hospitality IndustryINKIJKEXEMPLAAR ©SVHMediumAdvantages Disadvantages Social media • Large reach • Hidden costs Newspapers • Platforms for target groups • Unreliable • Widely accepted • People do not remember what Television • Flexible they have seen Radio • Good reach in local market • High credibility • Only noticed once Magazines • Widely accepted • Only read by one or two people • Flexible Outdoor advertising (per newspaper) (billboards) • Combination of images, • People do not remember what E-mail sound and motion they have seen • Attractive • Expensive • High attention value • Difficult to select target group • Large reach • Difficult to get noticed • Relatively cheap • Sound only • Better selection options than • Lower attention value than with television television • Large reach • Need to submit advertisement • Large reach well in advance • Improves image • Read by lots of people • Position of advertisement in • People remember what they magazine not known have seen • Not possible to select target group • Flexible • Is seen often (repetition) • Only visual; message must be • Cheap very short • Noticeable • Possible to select target group • Cannot be used too often due • Personal to junk mail • Low cost • Message must have value for reader204

INKIJKEXEMPLAAR ©SVH Chapter 7 | Promotion & social media Can the medium get the message across? The communication options of each medium are very different. It is known that people look at billboards briefly. This means that billboards are not suitable for all forms of communication. But billboards are an excellent option if they are used to show the way to a restaurant and generate brand awareness at the same time. Each medium has its own communication options. Some media are credible in the eyes of consumers whereas others are particularly persuasive. In general, potential guests consider information from a newspaper to be reliable. It is therefore important that a hospitality entrepreneur ensures that he gets coverage in the local newspaper if he is opening a new restaurant. Getting young people to hand out flyers to promote a discotheque can be very persuasive. Just think of the big discos in Spain that are full every night. A hospitality entrepreneur must know what his message is and then decide which medium suits it best. He will need to prevent noise. Noise is when the message fails to come across as the sender intended. The recipient does not interpret the message as the sender intended. The hospitality Noise entrepreneur must therefore be fully aware of what he wants to communicate and which medium is suited to this. The cost of advertising in a particular medium When deciding which medium to choose, the hospitality entrepreneur must also consider the cost. In printed media, the price is determined by the size of the advert, its position in the newspaper or magazine, the type of newspaper or magazine and its circulation and target group. An advertisement on the front page of a newspaper generally costs five times the regular price per mm. Many regional newspapers are relatively cheap to advertise in, because the news value is limited. Television advertising is generally an expensive form of advertising. The price for broadcasting an advert depends on the viewing figures of the chosen time. It is not cheap to make a good advertisement either. Many hotels that cater for corporate guests choose to advertise on television at moments that are interesting to this target group. For instance, many of these hotels advertise before, during or after programmes that business leaders watch (on a Sunday morning, for instance). National television is not an option for a restaurant. It is too expensive and does not reach the target group. However, hospitality businesses can use regional stations or independent cable networks to advertise. These stations have a large reach among the local population. 205

Marketing & Sales for the Hospitality Industry More guests thanks to the supermarketINKIJKEXEMPLAAR ©SVHThe supermarket is no friend of the 3 Become a supermarket operator hospitality entrepreneur, because the Hospitality entrepreneurs who no longer turnover of the former is often at the want to compete with the big supermarkets expense of the latter. However, retailer and can try something completely different: hospitality entrepreneur can help each other they can enter the supermarket world as a out. This can be in the form of joint offers or franchisee. AH spokesperson Aspeslagh: the sale of special items, drinks or meals for ‘Our franchisees generally come from consumption at home. the business community. Hospitality entrepreneurs can be suitable.’ 1 AH special offer In the world of supermarkets not all 4 Hospitality enhances retail decisions are made by head office. The hospitality industry can enhance the Supermarket operators enjoy certain retail industry. Take a bookshop, cycle shop freedoms. It is possible to collaborate with or textile business with a coffee corner. others, hospitality entrepreneur for instance, This makes the shop more attractive and says Anoesjka Aspeslagh, spokesperson for the hospitality turnover is a welcome Albert Heijn. supplement to the regular turnover. She gives the example of a special offer Paagman bookshop started selling coffee, for Utrecht fish restaurant Harbour in 2012. tea, brownies and muffins. It even expanded Customers earned a point for every €10 this range to include bread rolls and simple spent. Ten points earned them a free three- lunches. course meal. The offer was a success. The restaurant had many more guests than 5 In your own hands normal. The restaurant owner came up The example of Paagman shows that there with the offer and developed it with the are opportunities for retailers to do interest- supermarket owner. ing things with hospitality. Other retailers such as Ikea also prove this. What stands out 2 Advertise with a supermarket here is that these retailers have the hospital- Why not advertise with a supermarket? ity in their own hands. Are there opportuni- That's what Wouter Wolters from cafetaria ties for hospitality entrepreneurs and cater- Preuverie De Toren in Echt did. Together ers with retailers? Yes, there are businesses with the local Plus supermarket, he that supply services or products to retailers. distributed flyers recommending the Hutten Catering brings regional products to products and services of the two businesses market under the name of De Guijt. These to mark the nine Sundays over the summer are also suitable for retailers. Cooks, who on which shops were allowed to open. are sometimes also restaurant owners, give They did this for two successive years. The cooking demonstrations in supermarkets. businesses enhanced each other.206

Chapter 7 | Promotion & social mediaINKIJKEXEMPLAAR ©SVH6 Sell wine 9 Intermingled Hospitality entrepreneurs can sell articles Formulas and branches will become even in their businesses. T-shirts, towels and more intermingled in future. Supermarkets other items with the name and logo of the and the hospitality industry are reaching business on them. But you can also simply the end of their lifecycle, writes Jan-Willem decide to sell wine. If guests enjoy a certain Grievink in the report Top Topics 2013. In wine, they appreciate being able to buy the US, he can see hybrid forms of food it for consumption at home. This is also retail, hospitality and speciality store devel- true for certain regional dishes that are not oping. This responds to the needs of the generally available elsewhere, says Arne consumer who no longer goes to a super- Heitmeijer from For-ward consulting agency. market or restaurant as a matter of course. When he was a hospitality entrepreneur, it The sector must respond to this food shop- looked like he was going to end up with per behaviour, says Grievink. He refers to La a cellar full of wine at one point. ‘I offered Place, which offers retail and hospitality, and the wines for the purchase price plus €7.50. to Albert Heijn, which developed AH to Go. That was a great success. The cellar was empty in no time.’ Rules If an entrepreneur wishes to combine hospi- 7 Buy from the supermarket tality with retail, he must look at whether the It is a well-known fact that supermarkets zoning plan will allow him to do so in the offer their products for bargain prices and premises in question. If that is not the case, that restaurants are relatively expensive. he can submit a request to the municipality. Restaurant Dill in The Hague makes a virtue Municipality policy on retail and hospitality of a necessity. They buy all their products varies. for low prices at the supermarket. This is also a form of collaboration. Guests are The Licensing and Catering Act is also offered a full meal for €5. Cooks prepare important, because it also sets rules. A the food. Unemployed people and interns hospitality business may sell products as are used as waiters, which keeps the costs long as this is done in an area that can be down. entered without entering the hospitality area. The idea behind this is that shoppers 8 Everything for sale must not be tempted to drink alcohol while There are also formulas in which more or shopping. It the hospitality business does less everything in a business is for sale. not serve alcohol, hospitality and retail can Kekdelft is one such business. The retail usually take place in one area. It is advisable mainly consists of design products that are to check with the municipality. brought to market by artists and designers from the region. Desirable objects that you Source: Missethoreca.nl cannot buy anywhere. From tea strainers to furniture. 207

INKIJKEXEMPLAAR ©SVHMarketing & Sales for the Hospitality Industry 7.9  |  Questions about the chapter Answer the question and then find the answer in the chapter. 1a In your own words, explain what the owner of a restaurant must consider when using the marketing tool of promotion. 1b L ist ten important points. 2 What does the marketing tool of promotion ensure? a. Promotion must ensure that the business formula is communicated in the correct manner to the outside world. b. Promotion must ensure that guests come to your business and want to consume your products. c. Promotion must ensure that guests come to your business and that they are responsible for word of mouth advertising. 3 Where does the marketing tool of promotion belong? a. To all communication activities that directly or indirectly promote sales. b. To advertising c. To social media 4 There are four groups of activities in the communication mix. Which ones? 5 What is the difference between the promotion plan and the communication mix? 6 When deciding on the communication mix for a restaurant, you must take a number of factors into account. Which ones? 7 What is social media? 8 A hospitality entrepreneur is looking for a new manager for his business. Which of the media below is most suited to finding one? a. Facebook. b. WhatsApp. c. Mail. d. Linkedln. 9 What is social media marketing (content marketing)? 10 What are the advantages and disadvantages of social media marketing?208

DefinitionsDefinitionsINKIJKEXEMPLAAR ©SVHDefinition Description Chapter Page Extended services A, B, C location Extending the existing services provided. The 4 103 Call to action advertising hospitality business provides extra services for the guest. Advertorial Affective component The commercial desirability of the business 5 126 Reducing services location. Price skimming Advertising that focuses on persuading a person 7 192 AIDA to take action. Call to action advertising aims Ansoff to increase sales in the short term. It draws the attention to consumer promotions. Range Cross between an advertisement and editorial 7 192 content. A person’s attitude to a product. 4 98 Certain actions are transferred to the guest. 4 104 The services provided are reduced. The product is offered for a high price on the 6 160 market at first. Then the price is lowered over time. Each group of purchasers pays the highest possible price. . Communication model for improving the 4 100 communication process. Abbreviation of Attention, Interest, Desire and Action. Famous marketing scientist. Developed the four 1 26 growth strategies in his product/market matrix (market penetration, market development, product development and diversification). The sum of goods and services that a hospitality 2 53 business offers. 209

Marketing & Sales for the Hospitality Industry Definition Description Chapter Page Attitude How a person thinks or feels about something. 4 98/ Backward pricing A combination of knowledge, feeling and how 105 likely the person is to take action.INKIJKEXEMPLAAR ©SVHBusiness formula Supply chain Demand-led pricing method that involves 6 154 Business plan deducting the required profit margin from the Industry purchase price to leave the food cost. Reach Order costs A deliberately chosen combination of marketing 1 13 Early payment discount tools. Width Gross margin The path that the product follows from producer 5 134 Budget to consumer. Budget forecast Cognitive component Overview of activities that will be carried out to 1 22 achieve the goals set for that year. Businesses that perform the same function in the 1 15 economic process. The number of people who are reached by a 7 203 certain medium. The costs of placing an order, such as 5 137 administration and purchase costs A discount that is given if you pay immediately. 6 167 The width is measured by the number of 2 53 product groups in a range. The percentage of gross profit calculated for a 2 59 dish. Financial plan of receipts, expenditure, costs 1 20 and/or outlay. Overview of the expenditure required to carry 1 22 out the activities required to achieve the goals. A person’s intellectual reasoning about a 4 98 product.210

DefinitionsDefinition Description Chapter PageCollective advertising 7 198 Horizontal collaboration between comparableCombined pricing method businesses in order to advertise together. 6 154 Pricing method that combines the cost-led, demand-led and competition-led pricing methods.INKIJKEXEMPLAAR ©SVHCombined advertising Different types of business advertise together. 7 198Product bundling 6 157 A combination of one or more products that areCommunication tools offered for an attractive price. This stimulates 7 176Communication mix sales of these products. 7 176Complementary advertising Advertising, personal sales, promotion and 7 198Conative component public relations. 4 98Competition-based pricing 6 179Consumer promotion The combination of the communication tools 7 184 of advertising, personal sales, promotion andConsumption relationships public relations. 2 56Consistency The manufacturers of products that complement 2 56 each other advertise together. The willingness of a consumer to take action concerning the purchase of a product. The entrepreneur’s prices are based on those of the competitors. Limited offers that focus on the guest in order to increase turnover. Guests receive a discount or something extra. Products in the range that are related to each other because they are consumed at the time time by the guest. Consistency in the range with regard to product, consumption, product and distribution. 211

Marketing & Sales for the Hospitality Industry Definition Description Chapter Page Cost-plus pricing Cross-selling Pricing method. The ingredients used serve as 6 152 Coverage the basis for the sales price.INKIJKEXEMPLAAR ©SVHDesk research Depth The staff member informs the guest of the 4 101 Dimensions of the range Direct competition activities of other departments of the company. Direct distribution Distribution The percentage of the target group that is 7 203 Distribution relationships reached through a medium. Diversification Research with data that is already available (and 5 124 collected at a prior date). Final price minus method External analysis The number of options within a product group 2 54 in the range. The four ways in which a range can be measured: 2 53 width, depth, length and height. Businesses with a comparable business formula 1 15/29 that serve the same target group. The manufacturer supplies directly to the 5 134 consumer. The route that a product takes from leaving the 5 134 factory to arriving at the consumer. Relationships in the range because the products 2 57 are bought from the same wholesalers or food and drink is served in a particular way to the guest. A growth strategy in which the entrepreneur 1 27 focuses on a new target group with a new product. The sale price is used to calculate what the food 6 154 cost can be. An analysis of the supply and demand 1 21 conditions that influence the market and of the opportunities and threats on the market.212

DefinitionsDefinition Description Chapter PageExternal personal sales The staff member visits a guest or potential 4 102 guest outside the hospitality business.INKIJKEXEMPLAAR ©SVHExternal public relations PR from an organisation or people outside the 7 187 business.Exterior The external view of a hospitality business. 3 80Feedback Feedback from the recipient about the message 4 97 (also called a response).Field research Performing research with data that has been 5 124 specially collected for this purpose.Focus strategy A completion strategy in which the hospitality 1 30 entrepreneur focuses on a very small part of the market. The market is so small that it is of no interest to the competition.Food and beverage controller The staff member who is responsible for 5 139 checking the usage figures (food and beverage cost) per department.Full line pricing The prices in the range are set in such a way 6 156 that an optimum result can be achieved for the whole range. This pricing method primarily relates to the pricing of complementary goods.Division of roles The manner in which roles are allocated on the 5 139 basis of tasks, responsibilities and powers.Physical product The same as the material product. The physical 2 39 product is a collection of ingredients and properties.Guarantee The assurance of the supplier that that which has 2 50 been purchased will meet certain requirements.Hospitality mix The combination of the marketing tools of 2 37 product, presentation and personality. These three marketing tools determine how the guest experiences the hospitality. 213

Marketing & Sales for the Hospitality Industry Definition Description Chapter Page Concentrated marketing strategy The hospitality entrepreneur focuses his 1 23 Differentiated marketing business formula on one market segment. strategy Comparable with single focus strategy.INKIJKEXEMPLAAR ©SVHGoodwill Going rate pricing The entrepreneur focuses on several market 1 23 segments, using a different marketing mix for Group discount each. Growth strategy HACCP Goodwill is a fee for taking over the good name 5 131 of the previous entrepreneur. Runner Height Competition-led pricing method in which the 6 153 Corporate identity same price is asked as the competitor. Is also Indirect competition called me too pricing. Indirect distribution Giving a discount to large groups of guests in a 6 167 Identity hospitality business. Investment strategy focused on increasing 1 26 turnover, sales and/or market share. Hazard Analysis of Critical Control Points, 5 138 guidelines for monitoring/improving food hygiene. A dish or product with a high sales frequency 2 60 but a relatively low gross margin. Price and quality level of the range. 2 54 An aspect of the presentation of a hospitality 3 88 business used in all its communication. Competition from businesses that offer 1 15 comparable products but have a different business formula. The manufacturer uses intermediaries. 5 134 What the hospitality business really is. 3 76214

DefinitionsDefinition Description Chapter PageImage How the hospitality business is seen by others. 3 75INKIJKEXEMPLAAR ©SVHAdvertisement in newspaperAdvertisement on an editorial page.7 192or magazineInterior Decor and furnishing of the hospitality business. 3 81Food cost The ingredients used for or the cost price of a 6 152 certain dish.Food cost percentage The purchase price expressed as a percentage 5 139 of the net sales price.Cost of goods sold (COGS) Calculation of the cost price that takes into 6 152 account all costs (variable and fixed) that are related to manufacturing and selling the product.Internal analysis An analysis of your business, in which you look 1 21 at its strengths and weaknesses.Internal marketing The rationale behind internal marketing is that 4 109 if the employees are satisfied the guests will be too.Internal personal sales The guest and employee communicate (in a 4 101 sales talk) with each other within the hospitality business.Internal public relations PR aimed at the employees. 7 187Inverse price Demand-led pricing method that involves 6 154 deducting the required profit margin from the purchase price to leave the food cost.Consumer decision making The phases a consumer goes through before 4 99process purchasing a product.Consumer loyalty to a town The extent to which consumers feel attracted to 5 120centre a certain centre. The attractiveness of a centre determines consumer loyalty. 215

Marketing & Sales for the Hospitality Industry Definition Description Chapter Page Purchase preference Cost-led pricing method The consumer's favourite option. 2 45 Cost leadershipINKIJKEXEMPLAAR ©SVH The costs that are made to produce the product 6 151 Credit surcharge form the basis of the selling price. Quality Volume discount A competition strategy in which the hospitality 1 30 Logo entrepreneur tries to be the cheapest supplier in Logistics the market. Logistics management A surcharge that is imposed if the customer pays 6 167 Leakage on account or with a credit card. Length Register of suppliers The extent to which the hospitality product 2 64 meets the expectations of the guest. Macro developments Giving a discount on the sale of very large 6 167 quantities. The graphic or type mark of a business. 3 88 The collective name for all activities that 5 135 are required to get the end product to the consumer. A company's management and control of its 5 136 goods flow. Stock differences caused by, among others, 5 139 breakage, theft, spoilage and drying out. Amount of stock per article. 2 54 Register containing a supplier’s ordering and 5 136 delivery details, estimates and delivery and payment terms. Developments at the national level. The 1 15 hospitality entrepreneur cannot change these, but they may affect how he runs his business.216

DefinitionsDefinition Description Chapter PageMacro level market analysis Assessing whether the business location is 5 122 sufficiently attractive and has sufficient turnoverINKIJKEXEMPLAAR ©SVH potential for a large geographic area. Often for a hotel business.Meso level market analysis An exploration of the industry within the service 5 124Micro level market analysis area. 5 126Marketing activities Assessing whether the business location has 1 13Marketing strategy sufficient potential for the entrepreneur in a 1 13Marketing concept small geographic area. This analysis is used for 1 14Marketing goals businesses selling beverages, food and meals. 1 19Marketing tools Adjustment of the marketing tools to improve 1 13 the business formula.Marketing mix 1 23Marketing plan Devising and implementing a systematic plan 1 19 of marketing activities in order to achieve marketing goals. The mindset of the entrepreneur that means that he takes the desires of the guest into account in every decision that he makes. Goals that the entrepreneur sets. These often relate to aiming to generate a certain turnover. The entrepreneur adapts his marketing activities to his marketing goals. Tools that help the entrepreneur align his business formula with his target group: Product, Presentation, Personality, Place, Price and Promotion. The mix of marketing tools. An annual plan recording marketing goals, the activities needed to achieve these goals and a forecast of the expenses that the implementation of the plan will entail. 217

Marketing & Sales for the Hospitality Industry Definition Description Chapter Page Marketing strategy Market development A strategy that indicates the path a business will 1 17 take to achieve its goals.INKIJKEXEMPLAAR ©SVHMarket penetration A growth strategy in which the entrepreneur 1 27 Market prognosis chooses a new target group for the current product. Market segmentation Wider market penetration A growth strategy in which the entrepreneur 1/6 26/ Deeper market penetration wants to grow in a market in which he is already 100 Menu engineering Merchandising active with products that he already carries. Brand An estimate of the possible turnover that all 5 121 Meso developments entrepreneurs in the hospitality industry could Me too pricing earn in an area of the hospitality market. Dividing the market into homogenous 1 17/23 segments. Attracting new guests to the existing target 1 26 group. Growing the business by encouraging existing 1 26 guests to spend more. This can be achieved by increasing the number of repeat visits or the average spend per visit. Assessing how attractive menu items are by 2 59 studying their gross margin and sales frequency. All forms of consumer promotion at the point of 7 184 sale. A name, group of letters, symbol or combination 2 47 of these that a supplier uses to distinguish a product or service. Developments at the level of business location 1 15 and industry. Competition-led pricing method in which the 6 153 same price is asked by the competitor. Is also called going rate pricing.218

Definitions Definition Description Chapter Page Non-price competition Competition is not led by the marketing tool 6 153 Non-personal channels of price but by trying to gain a competitive Turnover forecast advantage from differences in the service or Storage costs adjustments to the product.INKIJKEXEMPLAAR ©SVH Mark-up method (cost-plus Channels in which there is no interaction 7 199 method) between sender and receiver. Optimum order size An estimate of the turnover that an entrepreneur 5 121 Business goals can earn in a certain market. Undifferentiated marketing The costs of storing goods, such as warehouse 5 139 strategy costs, refrigeration costs, interest costs and Footfall staffing costs. Personal communication The food cost plus a mark-up for the gross 6 151 Personal channels margin and VAT determine the selling price. Personal selling The amount of product per order, with the aim 5 137 of keeping the total cost of ordering and storing stock as low as possible. Goals that the entrepreneur wants to achieve in 1 19 the long term. Common goals are: to make a profit, grow, create jobs or continuity. The market is approached as a whole using one 1 24 and the same marketing mix. The number of passers by. The right attractions 5 120 by the hospitality business can make for favourable footfall for the hospitality business. A form of two-sided communication. The sender 7 199 receives immediate feedback from the receiver. Channels in which there is interaction between 7 199 sender and receiver. Individual communication with the guest with 4/7 101/ the aim of increasing sales. 181 219

Marketing & Sales for the Hospitality Industry Definition Description Chapter Page Porter Famous economist who defined three ways to 1 29 Volume discount Price competition gain a competitive advantage (cost leadership,INKIJKEXEMPLAAR ©SVHPrice lining Product development product differentiation and focus strategy). Product additions Discount depending on the size of the order. 6 167 Product concept Product differentiation Businesses compete on the marketing tool of 6 153 price. Production relationships Offering certain product groups for the same 6 157 Product life cycle price regardless of cost differences. Product relationships Growth strategy in which the entrepreneur offers 1 27 new products to an existing target group. Additions to the product to make it stand out 2 45 from the competition. Typical product additions are: design, packaging, brand, service and guarantee. The product concept is based on producing a 2 65 good-quality product. A competitive strategy in which the hospitality 1/2 23/45 entrepreneur is able to stand out from the competition. Relationships in the product range that are due 2 57 to a limited number of production techniques. This makes it easier to standardise the production process, making production cheaper. The sales development of a product over 2 41 time. The life cycle consists of four phases: introduction, growth, saturation and decline. Ingredients that can be used for several dishes 2 57 on the menu. This form of relationship helps reduce purchasing costs.220

DefinitionsDefinition Description Chapter PagePromotion budget The financial plan for achieving promotional 7 179 goals.INKIJKEXEMPLAAR ©SVHPromotional plan A plan containing analyses, the choice of target 7 176 group, goals, strategies, concrete actions, budgets and a timeline of promotional activities.Promotion Short-term actions focusing on the guest or 7 175 sales staff.PR plan A plan to forge understanding between the 7 187 organisation and its audience.Price differentiation Charging different prices for different consumer 6 164 groups based on cost differences.Price discrimination Charging different prices for different consumer 6 162 groups that are not based on cost differences.Price ladder The difference between the most expensive and 2 56 cheapest product within a product group.Pricing policy The vision that determines the menu prices. 6 165Price range The difference between the most expensive and 6 156 the cheapest product within a product group, also called the price ladder.Psychological pricing Choosing a price that sounds attractive to the 6 158 consumer.Business formula that attracts A business formula that is so strong that guests 5 127customers come specially to a particular business and think it is worth travelling some distance to go there.Business formula that follows A business sets up at a location where there is 5 126customers already a big audience.Public relations Communications that focus on all relevant 7 186 segments of the population with the aim of improving the business's image. 221

Marketing & Sales for the Hospitality Industry Definition Description Chapter Page Pull distribution Communication strategy in which the 7 183 Push strategy manufacturer communicates directly with the end-customer, in order to generate brand Put out pricing preference.INKIJKEXEMPLAAR ©SVHAdvertising Advertising mix Communication strategy in which the 7 183 manufacturer focuses mainly on distributors by Advertising plan providing discounts, for instance. Redundancy Using low pricing to push the competition out of 6 153 Relationship marketing the market. Profit-oriented pricing Paid non-personal communication that has a 7 188 Response clear sender. Risk costs Noise A combination of the various possibilities of 7 195 advertising, with an emphasis on: the message, its form and frequency and the messenger (the media chosen). A plan containing: a definition of the target 7 189 group and goal(s) of an advert, the advertising strategy and the media budget. Shortening an advertising message. 4/7 97 Form of marketing focused on building, 2/7 48/ maintaining and commercialising relationships in 185 order to achieve the goals of both parties. Pricing strategy in which the retail price is set in 6 152 order to achieve a return (profit). The reaction of the recipient of the message 4 97 (also called feedback). Goods that are kept in stock represent a certain 5 139 value. They are a risk for the entrepreneur. The message does not come across as the 4/7 97/ sender intended. 205222

DefinitionsDefinition Description Chapter PageSales force promotion Using bonuses to encourage employees to 7 182 achieve certain sales targets.INKIJKEXEMPLAAR ©SVHSales promotion See promotion. 7 182Expansion of the scale of This is a development in which the number of 1 15production businesses in a certain sector decreases, but in which the capacity of existing businesses grows.Reduction of the scale of This is a development in which the number of 1 15production small businesses increases in a certain sector.Selective perception The consumer only perceives what he considers 4 97 important or what corresponds with the world as he sees it.Service-led business formula A service-led business formula revolves around 4 95 personal service from the host.Atmosphere The atmosphere of a hospitality business is 3 77 determined by the personal experience of the guest. The guest experiences the atmosphere through: sight, hearing, touch, smell and taste.Skimming The product is first offered at a high price on the 6 160 market. Then the price is gradually lowered. Each group of purchasers pays the highest possible price. .Sleeper A dish or product with a relatively low sales 2 60 frequency but a relatively high gross margin.Stay out pricing Using low pricing to ensure that the market is 6 153 unattractive to potential competitors.Material product The material product is a collection of 2 39 ingredients and characteristics. The same as the physical product.Stopping power The extent to which something spontaneously 5 127 attracts the attention. 223

Marketing & Sales for the Hospitality Industry Definition Description Chapter Page Strategy The manner in which an organisation wishes to 1 20 achieve its longer term goals.INKIJKEXEMPLAAR ©SVH Swill Cooked kitchen and food waste. 5 140 SWOT analysis An analysis of the strengths and weaknesses of 1 21 a business and of the opportunities and threats in the market. A SWOT analysis comprises an external and an internal analysis. System-led business formula Speed and constant quality are pivotal to a 4 95 system-led business formula. These are achieved by standardising the production process as much as possible. Target pricing Pricing aimed at a producing a rate of return. 6 152 Advertising theme Advert that triggers knowledge and feeling 7 192 as aspects of the customer’s attitude. An advertising theme brings features of the product to the attention over a longer period of time. Total product The image that the consumer has of the 2 39 product. The total value is influenced by the physical and additional properties of the product. Trade promotion Promotion focusing on intermediaries. 7 183 Trading down If an entrepreneur wants to move to a lower 2 56 segment of the market. He does this by adding less expensive products to his range. Trading up If an entrepreneur wants to move to a higher 2 56 segment of the market. He does this by adding higher quality and more expensive products to the range. Upselling The employee tries to sell the guest a more 4 101 expensive product than he or she planned to buy.224

DefinitionsDefinition Description Chapter PageComprehensive product The comprehensive product consists of the 2 39 tangible product and additional features. These additional features add to the value of the product.INKIJKEXEMPLAAR ©SVHVendor rating Method used to decide on a supplier. The 5 136 supplier is chosen on the basis of a point system that takes such matters as service, quality and price into account.Sales arguments Strong points that promote sales. 7 181Stock costs The cost of keeping products in stock (space, 5 137 interest and risk).Sales frequency How often a product or dish is sold. 2 59Loser A dish or product with a relatively low sales 2 60 frequency and a relatively low gross margin.Location The town or region in which the entrepreneur 5 119 wants to set up his business.Demand-led pricing method The entrepreneur chooses a good selling price 6 154 for the market.Winner A dish or product with a relatively high sales 2 59 frequency and a relatively high gross margin.Yield management Seeks a balance between the maximum 6 165 occupancy of the available capacity and asking the highest possible price. 225

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