M&S1, Answers Chapter 6

MARKETING& SALESHOSPITALIT Y MARKETING & SALES FOR THE HOSPITALITY INDUSTRY ELLEN VAN KOOTEN Chapter 6 | Answers | Questions about the chapter 1

Marketing & Sales for the Hospitality Industry | Part 1Chapter 6 | Answers | Questions about the chapter 1. Name three characteristics of tourists as guests and the business guest. the business guest the tourist• mainly focuced on how a business represents • visits mostly hospitality establishments during itselfs; his stay;•pays less attention to the price and more on the • price plays an important role in his choice for quality of the business; hospitality establishments;•sets specific requirements for the way that • level of informational needs is usually quite hospitality is expressed towards the guests large; (depending on the reason for his visit). • has generally enough time to consume at leisure and to experience the entire service process2. What is market segmentation? Market segmentation is the division of the total market into homogeneous sub-markets. A homogeneous market segment consists of persons who more or less have the same wants and desires. It can be assumed that they will react in much the same way to the marketing tools such as a price reduction or quality improvement.3. Why should a business segment? a. The business must make the guest/customer feel like a king. b. Segmenting leads to better insight into the composition of the demand side of the market. c. In order to respond at any time to changes in the demand and supply sides of the market. d. Segmenting leads to better understanding of the supply side of the market.4. Market segments that qualify as a target group must meet certain requirements. What are they? A potential market segment will meet the following standards. a. The segment must be measurable. It should be possible to get information about the size and composition of the segment. This is necessary for calculating the maximum achievable turnover. b. The segment must be accessible to communication. The segment must be accessible via promotion (e.g. advertising). c. The segment must be sufficiently large. The segment should be large enough and have sufficient buying power. It must be economically justifiable to align the marketing activities specially with this segment.5. State a business formula that clearly shows on what group of guests it focuses (positioning). Substantiate your choice. At the discretion of the teacher.6. State a business formula that clearly shows how this business distinguishes from the competitors (profiling). Substantiate your choice. At the discretion of the teacher.7. What is segmentation analysis? A segmentation analysis should give more insight in the market segments. The hospitality entrepreneur can use this method to better select and work with his target group.Version 1 | 01-10-2018 | [email protected]

Marketing & Sales for the Hospitality Industry | Part 18. A segmentation analysis consists of three steps. What are they?Segmentation Description analysis Step 1 The search for the possible differences in desires, needs and behaviours of existing and/or potential guests. Step 2 Determine the extent of homogeneous segments. Step 3 What are the special needs of a chosen target group?9. What is the difference between market segmentation and product differentiation?These two strategies can be successful, but they each have a very different basis. We approachthe market segmentation strategy from the demand side of the market. While we approach theproduct differentiation strategy from the supply side of the market.Version 1 | 01-10-2018 | [email protected]