Marketing

Marketing and promotion

The purpose of marketing in any business is to build the brand name, attract new customers and to ensure that existing customers remain loyal.

Those involved in marketing need to know what factors make customers choose a specific hospitality service, continually researching to ensure marketing campaigns are targeted at the right customer.

Research involves face to face interviews, online surveys, social media reviews, questionnaires and comment cards.

Marketing is about raising awareness that a business exists and continuing to keep customers up to date about events, offers, new services or updated menus.

By knowing the market segment a business is aimed at, the marketing techniques can be created to suit that market and have a better chance of being successful.

Younger people are more likely to respond to social media while older people will be influenced by TV, radio or newspapers.

There are 3 main methods used to market a business:

• Advertising
• Promotion
• Personal selling

A business has to consider the marketing techniques that will be cost effective and least time consuming.

An expensive marketing campaign may cost more than the profit it generates, potentially resulting in the business folding.

Advertising

Media

Television and radio advertising can reach large numbers of people across all age groups.

^{TV advertising is expensive and depends on the frequency of broadcast, length and the time of day.}

A primetime slot (7-9pm) will be much more expensive than one in the middle of the night.

Radio advertisements are much cheaper to produce because they do not involve visuals like filming or animation.

They can be targeted to different age groups who listen to various radio stations. Smaller, local businesses often advertise on radio.

Newspapers

This is a traditional method of advertising. Large companies advertise in national newspapers covering the whole country, while smaller local businesses will advertise in local newspapers.

This is a relatively cheap method of advertising and cost is determined by the size of the ad, whether colour is used and the position in the paper.

A front page ad is more expensive as it has more impact. Some newspapers will have advertising supplements that are included in weekend issues.

Magazines

The cost of using magazines is similar to newspapers but has the advantage of a longer ‘shelf life’ as magazines are usually weekly or monthly and are not thrown out daily like a newspaper.

Different businesses may advertise in a range of magazines to reach their target audience.

A bed and breakfast in the country may place an advertisement in a fishing magazine to attract customers who are interested in fishing, while a hotel with a spa may advertise in a glossy woman’s magazine.

Social media

With the increased use of smart phones, social media has become a massive advertising tool.

After posting, information can reach the audience within seconds and can be updated quickly so it is always current.

Followers can easily access adverts, special offers and promotions from their phone. Social media has the potential to reach thousands of people and can be free or very cheap to produce.

Online

Online advertising has become a valuable tool as internet access and speeds have improved.

Ads can be placed at the side of the screen or alongside information accessed through a search engine.

Advertising agencies can be hired to design eye catching adverts but this can be expensive.

Businesses can pay for a service called Search Engine Optimisation (SEO) which improves where their information appears in search engine results.

However, it may be too expensive for smaller independent outlets to pay for this.

Most businesses will have their own website. It is very important to keep the website up to date as outdated information could have a negative effect on the business.

This can be difficult in smaller businesses as staff may not have the time or the expertise to do it.

Sponsorship

Sponsorship involves hospitality businesses contributing all or part of the cost of an event.

If it is a sporting event this will include the kit with the company logo and signs around the venue saying ‘sponsored by’ or ‘supported by’.

All methods of marketing the event will include the name of the sponsor, so the business can access a wide range of potential customers.

Other methods of advertising

Other advertising opportunities include posters on buses, in train stations, on escalators, at the cinema, direct mail drops within a local area and posting flyers or letters to customers offering special rates.

Promotions

Promotions are a marketing tool specially planned to attract customers by making them aware of the product, brand or service on offer.

They promote temporary sales or seasonal offers and can be useful at times of the year when business is slower e.g. after Christmas, during term time or in the Autumn.

They may also be ongoing incentives to encourage business at less busy times of the day.

Promotions can include gifts, like pens, stationery or diaries printed with details of the business.

When a new food or drink product is being launched, tasting or demo sessions may be used to encourage customers to try it. Email is often used to inform past customers of promotions.

Examples of promotional activities:

Restaurants

• Fixed price menu offering 2 courses from a limited number of choices at a lower price than individual dishes
• Early bird menu starting earlier than the traditional dinner time at a reduced rate to encourage business over a longer period
• Specials, usually shown on a board, attached inside the menu or displayed on an electronic screen – to encourage customers to make specific choices which can be updated on a daily or weekly basis
• Afternoon tea offered to increase business outside traditional dining times
• 2 for 1 offers on quiet days of the week (usually Monday or Tuesday evening) or less busy times during the winter
• Children’s menus at a reduced rate
• Online deals offered through consumer discount or voucher sites

Fast food outlets

• Meal deal – main, side and drink for a special price
• Kid’s or children’s meal – small portions served in a colourful box or bag which may include a gift or toy
• Free drink to accompany food
• Loyalty card

Coffee shops

• Loyalty card – stamped each time a drink is purchased and when the card is full the customer can claim a free drink
• 2 for 1 offers at special times

Hotels

• Room packages offered at quieter times of the year to ensure maximum occupancy, like bed and breakfast with dinner on one evening or two nights mid-week with dinner and a cocktail on arrival
• Room and function packages for fund raising events may encourage visitors to stay in the hotel, while special events like art exhibitions or cookery schools may attract local customers
• Senior citizen rates for meals and/or rooms for those over 65 years
• Wedding packages including transport, photographs and evening entertainment, with special room rates available for guests attending
• Large international hotel groups offer loyalty card programmes to entice customers to book repeatedly rather than using an alternative brand, with bookings earning points that can be redeemed for free nights or additional benefits

Gift vouchers are used by many different types of hospitality outlets. Often the recipient will add to it, increasing the value for the outlet.

Having used the voucher, the customer may return if they have enjoyed the experience.

Personal selling

This means the ability of staff to contribute to the promotion of sales and is known as upselling.

It is a subtle sales method to persuade customers to spend more money and is especially important when specific promotions are on offer.

Staff in a food and beverage outlet must have detailed product knowledge and well developed interpersonal skills to be able to:

• Explain the food and drink on offer in such a way that the product sounds interesting and appealing
• Formulate questions that promote sales, for example “Which drinks would you like to order?” rather than “Would you like something to drink?”
• Use opportunities to sell additional accompaniments by making recommendations to entice the customer

Upselling by a hotel receptionist when guests check in is increasingly important as more people are booking online.

The receptionist can give more details about rooms available and encourage guests to upgrade.

There may be rooms more suited to business people and the receptionist can make them aware of this and outline the advantages.

They will also ask, in a conversational way, about the reason for the visit. If it’s a special occasion they may inform the guests of additional products that can be provided e.g. chocolates, celebratory drinks or room service.

When checking in, guests will usually be told about the dining options available if this has not been included at the time of booking.

Advantages and disadvantages

Advantages

• Marketing that is properly researched and targeted will bring new and returning customers
• Opinions of current and former customers can identify areas for improvement
• Raising brand awareness
• Allows for a more personal relationship between the business and the customer
• Increased market share

Disadvantages

• Marketing can be expensive and drain profits, especially for smaller businesses
• It’s difficult to accurately assess the cost benefit of a marketing campaign
• Not all campaigns are successful because they were not carefully researched and planned
• The business may require additional staff to assist with advertising
• The cost of branded items used for advertising reduces profit margins
• The time required to keep information updated on websites and social media may require additional staff