Marketing Ch. 13-18

word of mouth
The Internet has created a new marketing phenomenon called viral marketing. Some business experts claim viral marketing is electronic _____.
originator; recruiting
Others claim viral marketing differs because the _____ & those who spread the message have a vested interest in _____ others to spread the word.
Internet
Ease of use of the _____ combined with other sources for electronic communication such as text messaging makes these forms of media ideal for viral marketing.
e-mail advertisements; friend
Many people delete _____ and often spam filters prevent people from even receiving them. In viral marketing the message is coming from a _____, so it is opened.
communication
Good _____ is a crucial element in a company’s efforts to build profitable customer relationships.
customer value; relationships
A company’s promotion mix—its marketing communications mix—consists of the tools the company uses to communicate _____ and build customer _____ persuasively.
consistent; strategic positioning
The whole marketing mix must be integrated to deliver a _____ message & _____.
advertising; promotion; personal selling; public relations; direct marketing
Five major promotion tools: _____, sales _____, _____, _____, and _____.
standardized; media
In past decades, marketers perfected mass marketing: selling highly _____ products to consumer masses. They developed effective mass _____ techniques to support these strategies.
communications
Today, no other area of marketing is changing so profoundly as marketing _____.
informed; brand; mass marketing
Several major factors are changing the face of today’s marketing communications: consumers are better _____ and use the Internet to exchange _____-related information and marketers are shifting away from _____.
nature; timing; send; receive
New communications technologies give companies new media for interacting with targeting consumers who have more control over the _____ and _____ of messages they choose to _____ & _____.
Targeted; declining
_____ marketing & the changing communications environment are giving birth to a new marketing communications model: television, magazines & other mass media are _____.
narrowcasting
Companies are doing less broadcasting and more _____.
mass media communications
Some advertising industry experts predict a doom-and-gloom “chaos scenario” in which the old “_____” model will collapse entirely.
younger
Consumers, especially _____ ones, appear to be turning away from the major television networks in favor of cable TV or altogether different media.
targeted; cost-effective; interactive
Large advertisers are shifting away from network TV to more _____, _____, _____ media.
images; brand; promotion
Conflicting messages from different sources can result in confused company _____, _____ positions, and customer relationships. Mass media advertisements say one thing while a price _____ sends a different signal.
Personal selling; public relations; promotional events
These communications often come from different parts of the company:
* Ads are planned & implemented by the advertising department or an agency
* _____ communications are developed by sales
* Specialists are responsible for _____ and _____.
integrated marketing communications
More companies are adopting _____. Under this concept the company integrates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands.
contact points
IMC calls for recognizing _____ where the customer may encounter the company & its brands. Each brand contact will deliver a message, whether good, bad, or indifferent.
attracting; informing; persuading
IMC ties together all company messages & images because different media play unique roles in _____, _____, and _____ consumers.
unify; audit
Some companies appoint marketing communications directors, with overall responsibility for company communications efforts. It places the responsibility in someone’s hands to _____ the company’s image as it is shaped by thousands of company activities. The starting point is an _____ of all the potential interactions target customers may have with the company.
what; who; how; when; where
Target audience heavily affects… _____ will be said; _____ will say it and _____, _____ and _____ it will be said.
response; purchase
Determining the Communication Objective: the marketing communicator must decide what _____ is sought, in most cases, the _____.
stands
The communicator needs to know where the target audience _____ in relation to the product and to what state it needs to be moved.
awareness; knowledge; liking; preferences; conviction; purchase
A target audience may be in any of six states: (1) _____; (2) _____; (3) _____;(4) _____; (5) _____ (6) _____.
personal; nonpersonal
Selecting Communication Channels – two broad types of communication channels are _____ and _____.
feedback
Nonpersonal communication channels are media that carry messages without personal contact or _____ media.
Expertise; Trustworthiness; Likability
Factors that make a source credible:
* _____ – communicator’s perceived authority needed to back the claim
* _____ – how objective and honest the source appears to be
* _____ – is how attractive the source is to the audience
promotion
Sales Method: Many companies set their _____ budget at a certain percentage of current or forecasted sales
competitor; trade associations
Competitive Parity Method: Some companies watch _____ advertising or get promotion spending estimates from publications or _____.
advertising; expenditure
For hotels, restaurants & other hospitality companies, _____ represents the largest _____ item in their budgets.
geographically; per exposure
Advertising can reach masses of _____ dispersed buyers at a low cost _____.
preference; conviction; purchase; needs; characteristics; adjustments
Personal selling is the most effective tool at building buyer _____, _____, and _____. It involves personal interaction between two or more people, allowing each to observe the other’s _____ and _____ and make quick _____.
dramatize; brand preference
Sales promotion can _____ product offers & boost sagging sales; however, short-lived effects don’t build long-run _____.
avoid; advertising; public relations
Public relations can reach many prospects who _____ salespeople & advertisements. A relatively new addition is the infomercial, a hybrid between _____ and _____.
awareness; knowledge
Promotional tools vary in their effects at different stages of buyer readiness. Advertising plays a major role in the _____ and _____ stages.
calls; promotion
Closing the sale is accomplished primarily with sales _____ and sales _____. These are high-costs and should focus on later stages.
introduction; growth; mature; decline
Product Life-Cycle Stage: effects of promotion tools also vary with stages of the product life cycle: _____, _____, _____, ______.
objectives; market
The first step an advertising program is to set advertising ______ based on information about the target _____, positioning, and marketing mix.
inconsistent
If your property or service is _____ with the claims made, you will probably do little more than increase the number of dissatisfied guests.
strategic; price discounts
Another decision is how much will be spent for _____ and how much for tactical advertising. Tactical advertising deals with sales promotions and often includes _____.
cut; sales
When times are tough, there is a tendency to _____ the advertising budget, which can lead to continued poor _____ and the eventual decline of the business.
imaginative; entertaining; rewarding
To gain & hold attention, today’s ad messages must be better planned: more _____, _____, and _____ to consumers.
reach; frequency
The advertiser must decide the amount of advertisement exposure: _____ measures percentage of people exposed to the ad campaign and _____ measures how many times the average person is exposed to the message.
Continuity; pulsing
The advertiser must decide how to schedule advertising over the course of a year. _____ means scheduling ads evenly in a given period while _____ is scheduling ads in bursts.
objectives; budget; message; media; evaluate
To spend a large advertising budget wisely, advertisers must: define their advertising _____, develop a sound _____, create a good _____, make _____ decisions, _____ the results
Public; relations
_____ _____ (PR) is an important tool that until recently was treated as a marketing stepchild.
mass
Companies are realizing that _____ marketing is no longer the answer to some of their communication needs.
costs; reach; impact
Advertising _____ continue to rise, audience _____ continues to decline, and clutter reduces ad _____.
promise
In this environment, public relations holds _____ as a cost-effective promotional tool.
Relations; Publicity; Communication; Lobbying; Counseling
PR departments perform five activities, not all of which feed into direct product support:
a. Press _____ – placing newsworthy information in the media to attract attention to a person, product, or service
b. Product _____ – efforts to publicize specific products
c. Corporate _____ – internal & external communications and promoting understanding of the organization
d. _____ – dealing with legislators and government officials to promote or defeat legislation & regulation
e. _____ – advising management about public issues and company positions and image
Publicity
_____ is the task of securing editorial and news space, as opposed to paid space, in print & broadcast media to promote a product or a service.
communication
Publicity builds corporate image in a way congruent with the organization’s _____ strategy.
entrepreneurs; properties
Public relations are the most important promotional tool available to _____ & individual _____.
crisis; management
An important area of public relations is _____ _____, because not all publicity is good.
prevent
The first step in crisis management is taking all precautions to _____ occurrence of negative events.
Smoldering
_____ crises give warning before they occur, and can often be eliminated with good management.
promotion
Sales _____ consists of short-term incentives to encourage purchase or sale of a product or service.
consumer; trade; sales; force
Sales promotion includes a variety of promotional tools designed to stimulate earlier or stronger market response:
a. _____ promotion (samples, coupons, rebates, premiums, contests, demonstrations)
b. _____ promotion-buying allowances (free goods, cooperative advertising, and push money)
c. _____ _____ promotion (bonuses and contests)
advertising; personal
Sales promotions are most effective when they are used with _____ or _____ selling.
Cause
_____-related promotions are another local area marketing tactic, bring business to the hotel or restaurant and help the community.
goodwill
A good local campaign creates community _____ and exposure for the establishment.
sell
Success or failure within the hospitality industry ultimately rests on the ability to _____.
Personal
_____ selling is the most expensive contact and communication tool used by the company.
market; customer
As companies move toward a stronger market orientation, their sales forces need to become more _____ focused and _____ oriented.
data; potential; intelligence; strategies; tactics
The newer view is that salespeople should know how to analyze sales _____, measure market _____, gather market _____, develop marketing _____ and plans, and become proficient at the use of sales _____.
corporate
Objectives ensure that _____ goals are met. Goals may include revenue, market share, improving corporate image, and many others.
productivity
By establishing specific values for business that has already been booked, hotel managers can encourage salespeople to increase the _____ of existing resources. If salespeople have clearly established goals and objectives for a second chance to increase their rewards, they may work harder to achieve goals.
culture; size; nature; type
Structure of a hotel sales department depends on the _____ of the organization, _____ of the property, _____ of the market, and _____ of hotel.
estimate; time; workload
Territories are easy to administer, their sales potential is easy to _____, they reduce total travel _____, and they provide a sufficient and equitable _____ and sales potential for each sales representative.
specialize
Companies often _____ their sales forces along market segment lines.
segments
The obvious advantage of market specialization is that each sales force can become knowledgeable about specific market _____.
intermediaries
The importance of marketing _____, such as wholesalers, tour operators, travel agencies and junket reps, to the hospitality industry has created sales force structures to serve marketing channels.
location; size; type
The _____, _____, and _____ of hospitality company greatly affect the relative importance of travel intermediaries. This in turn affects whether a company designs its sales force structure by travel intermediary.
internal; market
Some hotels and resorts have a sales force structured by product, market segment or channel and customer. This is often a reaction to _____ and _____ forces rather than the result of strategic thinking.
changes; competition; strategy; policies
Size of a sales force is determined by market _____, _____, corporate _____ and _____.
Team
_____ selling has proved to be an effective and powerful tactic to reach and retain key customers. Its opportunities and limitations are only beginning to be realized in the hospitality industry.
functional
Hospitality companies traditionally design departments along _____ lines.
inside; field
Today’s sales managers may have two types of salespeople within their departments: an _____ sales force and a _____ sales force.
image; goodwill
In addition to traditional objectives, like increased occupancy, other non-quantifiable objectives are sometimes established for teams. These generally deal with enhancing _____ and _____ or using the team as a human resource training pool.
contract
The goal of personal selling was traditionally viewed as a specific _____ with a customer.
Relationship
_____ marketing is based on the premise that important accounts need focused and continuous attention.
representatives
At the heart of a successful sales force operation is the selection of effective sales _____.
risk; mission; customer; planning
A study of superachievers found that super sales performers exhibit the following traits: _____ taking, powerful sense of _____, problem-solving bent, care for the _____, and careful _____.
empathy; ego
One of the shortest lists concluded that the effective salesperson has two basic qualities: _____, the ability to feel as the customer does; and _____ drive, a strong personal need to make the sale.
clients; accounts
Sales successes within the hospitality industry depends on development of excellent long-run relationships with _____ or _____.
majority; minority
The 80/20 rule prevails within the hospitality industry. This concept says that a _____ of a firm’s business comes from a minority_____ of its customers.
personalized; promotions
Many accounts represent infrequent purchases or low-yield business. These accounts cannot bear the cost of _____ sales calls or expensive _____.
attention; interest; desire; action
The salesperson now tells the product “story” to the buyer, following the AIDA formula of gaining _____, holding _____, arousing _____, and obtaining _____.
concessions
The two parties need to reach agreement on the price and other terms of sale. Salespersons need to win the order without making deep _____ that will hurt profitability.
higher
Sales quotas are often set _____ than the sales forecast in order to stretch sales managers and salespeople to perform their best level.
high
The _____-quota school sets quotas higher than most sales representatives will achieve but are attainable.
modest
The _____-quota school sets quotas that a majority of the sales force can achieve.
variable
The _____-quota school thinks individual differences among sales representatives warrant
high quotas for some and modest quotas for others.
commission; salaried
Those who are paid mostly on _____ generally receive less supervision. Those who are _____ and must cover definite accounts are likely to receive substantial supervision.
immediate response
Direct marketing consists of direct connections with carefully targeted individual consumers to obtain an _____ and cultivate lasting customer relationships.
interactive; offers; segments; individual
Direct marketers communicate directly with customers, often on a one-to-one, _____ basis – they tailor marketing _____ & communications to narrowly defined _____ or even _____ buyers.
direct; immediate; measurable; revenue
Beyond brand and relationship building, direct marketers usually seek a _____, _____, and _____ consumer response – a manager can track response to a particular campaign and usually determine the _____ that it produced.
web-oriented; sales
Direct marketing is becoming more _____, and Internet marketing now accounts for about 18% of direct marketing-driven _____.
physical
Unrestrained by _____ boundaries, direct marketers can offer an almost unlimited selection anywhere in the world, and information about companies, products & competitors.
consumers; control
Direct marketing gives _____ a great measure of _____, as they decide which catalogs they will browse and which web sites they will visit.
low-cost; efficient; speedy
Direct marketing offers sellers a _____, _____, _____ alternative to reaching their markets.
demand
In periods of low _____, companies can use direct marketing to target known customers and produce quick results.
equalizer; brands; global
Online direct marketing is an _____ that independent restaurants, inns, and hotels have against the _____, giving small marketers ready access to _____ markets.
demographics; psychographics; buying
Effective direct marketing begins with a good customer database, a relationship-building tool. In consumer marketing, a database may contain _____, _____ & _____ behavior.
business-to-business
In _____ marketing, a customer database might contain products & services the customer has bought, key contacts, past volumes & prices and much more.
locate; leads
Companies use their databases to _____ good potential customers & generate sales _____.
Consolidation; mining; automatic; semiautomatic
_____ in the hotel industry has created a need for companies to build a centralized data warehouse for all their brands, for the purpose of data _____ – the exploration & analysis of a database by _____ or _____ means to discover patterns or rules.
accurate
To be useful, the data stored in a database must be _____, so it is important that everyone using the database understand the importance of careful input and minimizing duplicates.
loyalty; four; seven
Managers recognize that spending to develop _____ among current customers can be more effective than spending to attract new guests, which costs _____ to _____ times as much.
Basic; Reactive; Accountable; Proactive; Partnership
16. Five Levels of Customer Relationships:
_____ – selling the product with no follow-up
_____ – the company sells the product & encourages the customer to call with questions
_____ – a company rep calls the customer after a booking to check-up & answer questions
_____ – the rep or others in the company phone the customer from time-to-time with suggestions about improvements that have been made or creative suggestions for future events
_____ – the company works continuously with the customer to discover better value
direct-mail; telephone; kiosk
Traditional forms of direct marketing in hospitality are _____, _____, and _____ marketing.
offer; announcement; reminder; address
Direct-mail marketing involves sending an _____, _____, _____, or other item to a person at a particular _____.
$52; $15
According to a recent study, return on e-mail marketing investment is _____ for every dollar spent – compared with direct mail at _____ per dollar spent.
intrusive
E-mail marketers walk a fine line between adding value for consumers & being _____.
spam
The explosion of _____—unsolicited, unwanted commercial e-mail messages that clog our inboxes—has produced consumer irritation and frustration.
goodwill; feedback; supplement
The most basic website is a corporate (or brand) site, designed to build customer _____, collect _____, and _____ other sales channels.
Context; Content; Community; Customization; Communication; Connection; Commerce
To attract new visitors and encourage revisits, online marketers should pay attention to:
_____: site layout and design
_____: text, pictures, sound, and video on the site
_____: ways the site enables user-to-user communication
_____: the site’s ability to tailor itself to users or to allow users to personalize the site
_____: ways the site enables site-to-user, user-to-site, or two-way
_____: degree to which the site is links to other sites
_____: capabilities to enable transactions
contextual advertising; search engine
Another hot growth area is search-related ads (or _____) in which text-based ads and links appear alongside _____ results.
new; measure
Participating successfully in existing online social networks presents challenges, as online social networks are _____ & results are hard to _____.
destinations
Tourists travel to _____, places with some form of actual or perceived boundary, such as physical boundary of an island, political boundaries, or even market-created boundaries.
Macrodestinations; microdestinations
_____ such as the United States contain thousands of _____, including regions, states, cities, towns, and even visitor destinations within a town.
employment
Tourism’s most visible benefit is _____ in hotels, restaurants, retail establishments, and transportation.
support
Second, less visible benefits are _____ industries and professions, many of which pay considerably more than the visible employment opportunities.
multiplier
The third benefit is the _____ effect as tourist expenditures cycle through the local economy.
revenues; nonresidents
Tourism’s fourth benefit is state and local _____ derived from taxes on tourism, and helps shift the tax burden to _____.
export
Tourism also yields a fifth benefit, the _____ of locally made products.
Destination
_____ marketing is an integral part of developing and retaining a location’s popularity.
retaining; preserving
Too often, planners focus only on destination developments without attention to _____ and _____ attributes that attracted travelers to the destination in the first place.
development
Tourist _____ must balance temptation to maximize tourist dollars with preservation of the natural tourist attractions and the quality of life for local residents.
multiseasonal
Tourist destinations that build solid infrastructures can look for increased business by expanding from a seasonal product to a _____ product or by expanding the geographic base of their product.
Sustainable
_____ tourism is a concept of tourism management that anticipates & prevents problems that occur when carrying capacity is exceeded.
Carrying
_____ capacity is determined by an environmental impact assessment.
Ecotourism
_____ is one of the fastest growing niche markets in the travel industry & generally viewed
as representing sustainable tourism.
emotional; discretionary
Because leisure travel is _____ & _____, guests have come to expect amenities and services without questioning the environment.
competition
Tourist _____ is fierce amid a growing and constantly changing tourist market, where, in addition to strong tourist destinations, declining places upgrade, and new places appear.
Convenience
_____ includes travel time from airport to lodging, language barriers, cleanliness and sanitary concerns, access to amenities, and special needs.
Timeliness
_____ means risk factors like political instability civil disturbances, currency fluctuations, safety, etc.
audit
Tourism planners should conduct an audit of the existing resources of their communities to determine opportunities for events.
identity
Beyond economic value, events help create an _____ for a community.
pull
Ability to concentrate attractions, facilities, and services in a convenient, accessible location is essential to create a strong destination _____.
expansion
Tourist _____ is highly dependent on public investments, woefully inadequate without private investment and market mechanisms to respond to changing consumer needs and wants.
financial; hospitality
Destinations find they must make more than _____ or _____ investments to attract tourists.
stopover
Many visitor destinations are in fact only _____ destinations for travelers on their way elsewhere.
farm
In an era in which most people in industrialized nations are urban or suburban dwellers, _____ tourism has become increasingly important.
purpose
Thousands of individuals choose to spend vacations assisting others, particularly in underdeveloped nations, an activity called _____-driven tourism.
Medical
_____ tourism is a fast & lucrative segment of tourism, as people travel internationally to gain access to less expensive health care.
potential
Tourism marketers know even though an area may attract an activity-specific segment, there is great _____ in providing reasons for others to come.
vehicle
While the historical concept of travel has been to go someplace for a purpose, it can be argued that for many contemporary pleasure travelers, the real destination is the _____ of travel such as a cruise ship, river paddle ship, or a special railroad.
Organized; Individual; Explorers; Drifters
Several classifications have been used to describe different visitor destination segments:
a. _____ mass tourists – Little or no influence over the travel experience other than to purchase one package or another.
b. _____ mass tourists – Somewhat more control over their itinerary. For instance, they may rent a car to visit attractions
c. _____ – They plan their own itineraries and make their own reservations
d. _____ – These people, the backpacker group, seldom, if ever, are found in a traditional hotel
allocentrics
Plog observed that destinations are first discovered by _____ (backpackers or explorers).
accessibility
One job of a tourist organization is to increase the _____ of a destination.
environmental
Marketing information systems help identify and predict _____ trends that are responsible for these changes.
Emerging
_____ markets must be identified and served.
imaging
Effective destination _____ requires congruence between advertising and the destination.
packages
An effective way of communicating with potential travelers is by offering _____.
convention; visitors; bureaus
City, county, or area _____ and _____ _____ (CVB) promote tourism on the local level.
planning; research
Hospitality companies know that _____ and _____ go hand-in-glove.
input
In-depth guest _____ will also be used to shape the criteria that go into defining the on-property guest experience.
time; energy; efforts
We have found that complete attention to detail – a total commitment to guest satisfaction that saves a guest _____, _____, and _____, provides completely personalized and individual service, and creates the experience of “intellectual surprise” for its consumers – is what drives repeat business among the affluent.
year
To be effective, a new marketing plan must be written each _____.
strategic
At the same time, the annual marketing plan must be written against a longer term _____ plan that states what the company hopes to achieve, say, three to five years down the road.
environment; competition; segments
To develop successful strategies and action programs, marketers need up-to-date information about the _____, the _____, and the market _____ to be served.
requirements; expectations; perceptions; satisfaction
Finally, marketing research helps marketers learn more about their customers’ _____, _____, _____, and _____ levels.
executive; summary
The _____ _____ and a few charts or graphs from the body of the plan may be the only parts ever read by top management. Consequently, it is of great importance to write this section carefully, with top management in mind.
support
A marketing plan is not a stand-alone tool. Instead, it must _____ other plans, such as the firm’s strategic plan.
goals; share; Positioning; integration; alliances; depth; relationship
Next year’s marketing strategies and tactics must support strategic decisions such as the following:
a. Corporate _____ with respect to profit, growth, and so on
b. Desired market _____
c. _____ of the company or of its product lines
d. Vertical or horizontal _____
e. Strategic _____
f. Product line breadth and _____
g. Customer _____ management (CRM)
Legislation
_____ affecting taxation, pension benefits, and casino gambling are only a few examples of political decisions likely to affect marketing directly.
employment; interest
Changes in economic variables such as _____ and _____ rates should be recognized.
competitive
A _____ analysis must extend beyond inventory comparisons. True competitive advantages are factors that are recognized by guests and influence their purchase decisions.
demand
Market potential should be viewed as the total available _____ for a hospitality product within a particular geographic market at a given price.
intelligence
The need for marketing _____ is ongoing. Much of the information acquired by marketing research in a current calendar or fiscal year serves as the basis for developing next year’s marketing plan.
available
The heart of any marketing plan is careful analysis of _____ market segments and the selection of appropriate target segments.
revenue; cost; profitability
This is information that identifies each of the company’s existing customer segments by _____, _____, and _____.
target
The selection of _____ markets is a primary responsibility of marketing management. This requires careful consideration of the variables already discussed in the development of the marketing plan.
objectives
The establishment of _____ provides direction for the rest of the marketing plan.
channels
The selection of appropriate _____ of distribution is basic to the development of successful sales strategies.
insufficient
A common error in writing a marketing plan is to develop strategies that are probably highly workable but for which there is _____ support.
personnel
Generally, the most costly and difficult resource needed to ensure success with marketing/sales strategies is _____.
quotas
A sales plan should pay particular attention to the sales force and its objectives and to strategies to ensure that sales _____ are met and possibly exceeded.
continuum
The process of marketing is a _____. The task is never ending.
planning
Marketing/sales managers must always be _____, as the development of next year’s marketing plan begins the day this year’s plan is approved.
internal; external
The process of data collection and analysis from _____ and _____ sources continues each day. Marketing/sales managers must always be alert for methods to improve the process.
people
What is not so obvious to many is that a good plan will also enable _____ to prosper and grow.
commitment; time; training; incentives
A study of the process used by hotels to develop marketing plans has shown that “the most important features in the development of a marketing plan appear to be management participation and _____ at all levels, sufficient _____ for development, specific _____ in developing a marketing plan, and tying _____ to the achievement of goals and objectives.”