M&S2, Answers Chapter 1

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

Marketing & Sales for the Hospitality Industry | Part 2Chapter 1 | Answers | Questions about the chapter 1. Explain in your own words which marketing activities a hospitality business might carry out. The deliberate use of the six marketing tools (product; presentation; personality; place; price; and promotion) is called marketing activities. An entrepreneur sets himself goals, for instance to increase his turnover or attract a certain audience. 2. How do these activities fit into the entire marketing policy of a company? 3. Give two examples of marketing activities in a hospitality business. Multiple answers possible, at the discretion of the teacher. Two examples could be: 1. advertising in the form of leaflets and flyers 2. advertising with an online advert (on social media) 4. Which of following are macro developments in the hospitality industry? Circle the macro developments. a. A general smoking ban in hospitality businesses b. Introduction of legislation on allergens. c. Legal drinking age. d. The use of social media for promotion. 5. What of the following are meso developments in the hospitality industry? Circle your choice. a. A general smoking ban in hospitality businesses b. Introduction of legislation on allergens. c. Legal drinking age. d. The use of social media for promotion. 6. Market segmentation – target groups – entrepreneur What do these terms have in common? With market segmentation the hospitality entrepreneur focuses on the homogenous segments (people with the same desires and expectations) of the market demand (target group). An entrepreneur can do this by, for instance, making his bar appeal to the many students who live in his city: he will keep down the cost of beer, play the music that students like and consider his audience when hiring staff.Version 1 | 15-10-2018 | [email protected]

Marketing & Sales for the Hospitality Industry | Part 27. What is a differentiated marketing strategy? The entrepreneur chooses two or more market segments and devises a marketing mix for each specific target group. Hospitality businesses often operate multiple business formulas, each with its own target group. A conference and resort hotel is an example of this.8. Explain the difference between market segmentation and product differentiation. These two strategies can be successful, but they each have a very different basis. The hospitality entrepreneur approaches the market segmentation strategy from the demand side of the market. While the product differentiation strategy approaches the market from the supply side.9. Draw a table of ansoff’s four growth strategies and use examples from the hospitality industry to explain them. Four growth strategies are identified in marketing theory. These were developed by marketing strategist Ansoff, hence the name Ansoff’s growth matrix – see below. Examples from the student are at the discretion of the teacher.Existing products or services Existing market New marketNew products or services Market penetration Market development Product development Diversification10. What competitive strategies can a business use? 1. Differentiation (Here you choose to sell your product in a unique way.) 2. Cost leadership (Cost leadership means keeping your costs as low as possible. You want to differentiate by keeping your costs as low as possible and thus creating a competitive advantage.) 3. Focus (With the focus strategy, you focus on one or more target groups within the entire market.) 4. Stuck in the middle (If you are not choosing between cost leadership or differentiation, thus when you’re not creating your own identity and USP (Unique Selling Point), you end up in the stuck-in-the-middle strategy.Version 1 | 15-10-2018 | [email protected]