The document discusses key topics in hospitality marketing and sales, including distinguishing marketing from sales, the marketing mix, management's role in marketing and sales, trends affecting the industry, and challenges. Specifically, it covers the differences between marketing and sales activities, the four Ps of the marketing mix (product, place, promotion, price), the roles of the general manager, director of marketing and director of sales. It also summarizes trends like globalization, technology, distribution and revenue management.

1. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
1. Distinguish marketing from sales and describe the
marketing mix.
2. Explain management’s role in marketing and sales.
3. Summarize the importance of marketing and sales to
hospitality companies, and describe the challenge of
hospitality marketing and sales.
4. Identify trends that affect marketing and sales in the
hospitality industry.
Competencies for Introduction to Hospitality Marketing and Sales
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2. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Changes Since the Mid-1950s Affecting the U.S. Hospitality Industry
• Population growth
• Longer life span
• Improved incomes
• Increased leisure time
• Expanded highway system
• Development of suburbs
• Increased air travel
• Convention center expansion
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3. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Differences Between Marketing and Sales Activities
Marketing
• Market analysis, planning, and
control
• Long-term trends, and how to
translate problems and
opportunities into new products,
markets, and strategies for long-
term growth
• Profit planning, such as
determining the appropriate mix
of business from individual
market segments
3
Sales
• Field work and desk work to sell
to consumers
• Short-term considerations, such
as today's products, markets,
consumers, and strategies
• Volumes and quotas, current
sales, bonuses, and commissions

4. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
The Marketing Mix
Center Circle: The Consumer
Middle Circle: Controllable Variables
• Product
• Place
• Promotion
• Price
Outer Circle—Uncontrollable Variables
• Competitors
• Politics and Legal Influences
• Technology
• Social and Cultural Environment
• Economic Environment
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5. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
The Hospitality Industry Marketing Mix
• Product-Service
• Place-Distribution
• Promotion-Communication
• Price-Rate
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6. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Product-Service
• Without a product, the hospitality industry has nothing to
distribute, promote, or price
• Hospitality products include guestrooms, banquet space, and
food and beverages; services include express check-in and check-
out, housekeeping, and parking
• The product-service mix must be tailored to the needs and wants
of the guests sought
• Most hospitality properties serve more than one market
segment, and each segment has unique needs and wants
6a

7. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
Product-Service
• The marketing and sales department is responsible for
researching the guests’ product-service needs and wants, and
then working with management to help the property meet those
needs/wants
• The marketing and sales department also evaluates the existing
product-service mix and looks for improvements
• Sometimes it is hard for a property to match its products to the
needs/wants of its target markets because of the fixed nature of
its physical products such as guestrooms
• Services are more flexible, but they are almost impossible to
standardize
6b

8. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Place-Distribution
• Place-distribution refers to the accessibility of the product to
consumers
• With the manufacturing industry, producers ship their products to
consumers; with the hospitality industry, consumers travel to the
product (hospitality properties)
• Distribution channels for lodging establishments are direct or indirect.
• Direct distribution channels: a lodging property reaching potential
guests with its own sales force through e-mail or direct mail, telephone
solicitation, personal sales calls, media advertising, property websites,
etc.
• Indirect distribution channels: websites selling travel services and
intermediaries such as travel agents, tour operators, and independent
hotel representatives
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9. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Promotion-Communication
• Promotion is the way a hotel or restaurant communicates to
target markets and can involve advertising and direct sales
techniques; it is focused on persuasion
• Communication is a two-way exchange; the goal is not
persuasion but to determine what customers want and need
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10. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Price-Rate
• Price-rate determination is one of marketing’s most crucial
concerns
• Prices/rates can change depending on the level of business: peak
or in-season periods are when demand is highest and the highest
prices can be charged; valley or off-season periods are times
when demand is lowest and reduced rates may be offered;
shoulder periods fall in between peak and valley periods and can
provide excellent opportunities to build business
• Price-rate decisions can have an impact on a property’s image; for
example, upscale properties are generally cautious about offering
deep discounts
9a

11. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
Price-Rate
• Higher prices-rates can be charged by properties that enjoy a
higher reputation than their competitors
• Price-rate strategies vary depending on the goals of a property;
for example, a new property may charge low rates to build
business and customer awareness
9b

12. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Marketing Mix Decisions
• The elements of the marketing mix are interrelated, so a decision
regarding one element usually affects others
• Even the “controllable” variables in the marketing mix (the Four
P’s of product, place, promotion, and price) are not absolutely
controllable
• Uncontrollable variables (external environmental factors) have an
impact on marketing efforts. A recession, energy crisis, or natural
disaster cannot be controlled and requires management to make
marketing adjustments
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13. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Management’s Role in Marketing and Sales
Generally there are three managers who play a vital role in a
property’s marketing and sales efforts:
• The general manager
• The director of marketing
• The director of sales
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14. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
The General Manager
• A marketing-oriented general manager is the key to a firm’s sales
efforts
• The GM’s role varies with the size of the property; at small
properties, the GM is typically far more “hands on” than a GM at
a large property
• A GM who interacts with guests and is involved in the local
community can greatly enhance a property’s sales efforts
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15. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
The Director of Marketing
• The director of marketing must be a good manager and perform
tasks such as setting objectives and policies; making decisions;
and selecting, organizing, and supervising the sales and
marketing staffs
• A director of marketing’s supervisory tasks can be divided into
five functions: planning, organizing, staffing, directing, and
controlling
• Planning is probably the most important supervisory task, as it
involves determining what needs to be done and deciding how to
do it
13a

16. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
The Director of Marketing
• Organizing is important because a structured approach is
necessary to develop strategies and utilize the marketing and
sales staff to full advantage
• Staffing involves getting the right people into the right place at
the right time, and training them so they can reach their highest
potential
• Directing requires well-developed interpersonal skills and
involves overseeing both programs and employees
• Controlling involves setting standards, measuring performance,
and taking corrective action if needed
13b

17. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
The Director of Sales
• The director of sales carries out marketing strategies and directs
the sales staff in finding solutions to customers’ problems in
order to make sales
• The director of sales makes sure that the sales staff is contacting
prospective or current clients and presenting the benefits of the
property so that sales are made
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18. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
The Importance of Marketing and Sales
• Both marketing and sales are necessary to a property’s success;
neither works well without the other
• Making sales is critical to every property’s economic health and
growth
• Although marketing activities are at the forefront of hospitality
promotion, many marketing activities, such as publicity and
advertising, are one-way communications; sales personnel
contact people directly and are invaluable in the people-oriented
hospitality business
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19. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Marketing and Sales as a Career
• The sales profession today is vastly different from what it was
just a few decades ago
• Sales is now a scientifically designed function
• Sales leads are typically generated by computers relying on
detailed consumer profiles or through lists scientifically
developed for each property’s target markets
• Today’s salespeople are trained not only in practical sales
techniques but also the psychology of selling; they are trained in
nonverbal as well as verbal communication; they focus on
building relationships with their clients, not just on selling to
them
16a

20. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
Marketing and Sales as a Career
• Properties recognize the value of a concentrated sales effort and
salespeople are valued as highly trained and service-oriented
professionals
• Hospitality sales is an excellent career choice; there are many
opportunities open in the hospitality industry for salespeople
today, and good salespeople are well paid
16b

21. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
The Challenge of Hospitality Marketing and Sales
• Intangibility
• Perishability
• Inconsistency
• Inseparability
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22. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Intangibility
• Hotel salespeople do not sell guestrooms or banquet rooms—they sell
the use of these rooms; they sell the benefits or the experience the
property’s products and services will provide to the customer
• Since customers cannot see, touch, or use the hospitality experience
before they buy it, they must rely on the salesperson’s description of
the property and the experiences it offers
• Because of the intangible nature of much of the hospitality experience,
a salesperson’s credibility plays an important role in any hospitality sale
• Service guarantees are increasingly being used by hospitality firms to
reduce the risk customers take and build customer confidence in a
firm’s promises
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23. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Perishability
• Many hospitality products and services are highly perishable; an
unused guestroom, an empty restaurant seat, or an unfilled tee-
off time represents business lost forever
• Hospitality products such as a pleasant stay or a delicious meal
have no shelf life; they cannot be stockpiled or inventoried to sell
later
• The perishability of the hospitality product places heavy pressure
on hospitality marketing and sales executives to develop
innovative pricing, promotion, and planning strategies
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24. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Inconsistency (changeability)
• The service rendered by a housekeeper or a food server may vary
greatly at different hotels or restaurants—or even at the same
outlet
• The same employee may provide varied levels of service from day
to day
• Maintaining a consistent level of service is essential for the
success of hospitality businesses; it is a special challenge for
chains
• Even with standardized training programs, chain properties may
have very different employee skill levels and levels of service
20

25. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Inseparability
• Production and consumption are largely simultaneous with
services
• Guests not only come into contact with employees but with
other guests as well; that makes the other guests part of the
product and often affects the quality of service
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26. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Trends Shaping the Future of Hospitality Marketing and Sales
• Globalization
• Technology
• Distribution
• Revenue management
• Customer relationship management
• Guest preferences
• Niche marketing and branding
• Partnership marketing
• Environmental awareness and sustainability
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27. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Globalization
• Today companies have unprecedented opportunities to expand their
business throughout the world
• U.S. hotel and restaurant chains are establishing an international
presence to serve U.S. travelers and meet the demand abroad for U.S.
products
• The first hotels built outside the country by U.S. chains were primarily
upscale properties located in capital cities; now, mid-range and budget
properties are being built outside foreign capitals
• Since the U.S. hotel market is considered to have matured, it has
become more important for hotel chains to look outside the country
for more opportunities
23a

28. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
Globalization
• Globalization is a two-way street; more hotels are being built in
the United States by foreign companies
• Globalization is an important phenomenon for restaurants
ranging from upscale to fast-food
• The global marketplace offers both opportunities and challenges;
companies must be sensitive to cultural differences, as one
product or one approach does not fit all
23b

29. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Technology
• Creating traditional websites and those optimized for mobile devices
are important ways that hospitality businesses connect with and
appeal to their target markets
• More apps are being created by and for the hospitality industry, such
as meeting apps that allow meeting planners to stay connected to
hotel staff without having to leave their meetings
• Hospitality businesses are promoting their facilities and services on
travel-related websites and through social media; they must monitor
travel review websites and respond to customer comments and
complaints
• Placing QR codes on collateral materials is a new way that hospitality
firms can connect with their customers
24a

30. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
Technology
• Most hotels today offer their guests Internet connections
through Wi-Fi or other means
• Smart cards—electronically coded all-purpose cards—are being
increasing used by hotels
• The ability to collect, analyze, and store data electronically has
made it easier for hotels to forecast revenues, adjust rates,
customize services for guests, and automate forms and reports
24b

31. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Distribution
• The Internet has changed how hospitality customers make
individual and group reservations and book meeting space
• In the past, most reservations were made by telephone; today,
more and more reservations are being made online, either
through a property’s website or through a travel website such as
Expedia or Priceline
• Rates may vary widely, depending on which distribution channel
customers use
• Hotels must efficiently manage the various distribution channels
in order to maximize their profits
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32. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Revenue Management
• Revenue management seeks to maximize income from all of a
property’s profit centers
• Revenue management helps managers adjust pricing and formulate
sales strategies
• Software is available to help managers with revenue management
efforts
• Most major hotel chains are hiring revenue management managers
• Revenue management looks at booking patterns, the potential lifetime
value of a customer, and other variables to determine pricing strategies
• The goal of revenue management is to optimize demand at the right
price points and therefore optimize revenue
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33. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Customer Relationship Management
• Customer relationship management (CRM) seeks to help a
business build a repeat customer base by developing and
maintaining relationships with guests, thereby increasing their
loyalty to the business
• The focus of CRM is to show both individual and group guests
that they are valued by the business
• CRM seeks to provide personalized attention and superior
service to guests
• CRM begins with upper managers who are committed to building
customer trust and loyalty
27a

34. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
Customer Relationship Management
• CRM works best when friendly, customer-oriented staff are hired,
properly trained, and empowered
• CRM is greatly aided by computers that keep track of guest
preferences
• Customer loyalty programs are a part of CRM efforts
• It is less expensive to keep current customers than to find new
ones, and loyal customers tend to spend more and are more
prone to refer others to the business
27b

35. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Guest Preferences
• Hospitality businesses must keep abreast of consumers’ changing
preferences and the latest demographic trends
• The Baby Boomers and Millennials are both huge markets
• Customers today are connected (through the Internet and social
media), time-conscious, demanding, and more health-conscious
• The two-income-family trend is having an impact on the
hospitality industry
• More customers today are accustomed to self-service and
automated services
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36. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Niche Marketing and Branding
• Niche marketing/branding involves designing, building, and
marketing hospitality products for specific market segments
• Niche marketing recognizes that there are an increasing number
of market segments with varying preferences and budgets
• The hospitality industry has traditionally offered three broad
categories of properties: upscale, mid-priced, and economy
• Some hotel chains offer their guests a number of different hotel
brands
29a

37. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
Niche Marketing and Branding
• To compete with hotel chains, independent hotels and
restaurants are also seeking brand recognition; many join
associations (such as The Leading Hotels of the World, Historic
Hotels of America, and Relais & Châteaux) to share reservations
systems and marketing efforts
• Branding and positioning will continue to remain important
factors in hotel and restaurant marketing
29b

38. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Partnership Marketing
• Partnership marketing involves two or more firms—ideally
serving similar markets with noncompetitive products—joining
together to benefit from each other’s strengths
• There are two types of partnership marketing or strategic
alliances: like-kind alliances and related-business alliances
• Like-kind alliances are marketing partnerships formed by the
same type of businesses (such as two or more hotels)
• Related-business alliances are marketing partnerships formed by
dissimilar businesses in related industries, such as hotels teaming
up with airlines or cruise lines, or restaurants teaming up with
theme parks
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39. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Environmental Awareness and Sustainability
• Many of today’s consumers are concerned about the
environment
• Many of today’s hotels and restaurants are employing
environmentally sound practices in order to protect the
environment and appeal to guests concerned about the
environment
• Ecotourism is becoming more popular
• Many hotel and restaurant developers now take pains to
preserve the environment
31a

40. Chapter 1: Introduction to Hospitality Marketing and
Sales
Hospitality Sales and Marketing PowerPoint
Continued from previous slide…
Environmental Awareness and Sustainability
• International Tourism Partnership created Green Hotelier, a
website that promotes sound environmental practices for the
hotel industry
• The American Hotel & Lodging Association offers a “Green
Resource Center” on its website, which includes a link to Green
Lodging News
• An increasing number of hospitality properties have developed
water conservation and recycling programs, are using recycled
paper and biodegradable products, and are taking part in local
conservation efforts
31b