Final paper

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Final paper

  1. 1. 1 | P a g eHospitality Marketing and SalesTrends ReportPhoto SharingAlex FosseSavannah LuoRoss Graham
  2. 2. 2 | P a g eTable of ContentsSection 1Historical Overview Perspective……………………………………………………………………………………………………...........3Scope and Reach……………………………………………………………………………………………………………………………………..3Outside Industry Impacts……………………………………………………………………………………………………………………..3-4Section 2Industry Example-Pinterest……………………………………………………………………………………………………………………4Industry Example-Instagram………………………………………………………………………………………………………………..4-6Section 3Expert’s Insight-Bernie Mullen……………………………………………………………………………………………………………6-7Future Impact of Photo Sharing Trend…………………………………………………………………………………………………..7Competitive Advantage………………………………………………………………………………………………………………………….8References…………………………………………………………………………………………………………………………………………….9
  3. 3. 3 | P a g eSection 1Historical Overview PerspectiveInstagram and Pinterest are social networking and photo sharing sites that have becomepopular in the last couple of years. Instagram launched in October 2010 and Pinterest launched inMarch 2010. The history of photo-sharing goes back to the pre-modern era and even to ancientcivilizations like the Egyptians with their hieroglyphics. So while photo-sharing itself is a relatively newconcept, picture sharing is nothing new. From the beginning, people have had the need tocommunicate, and not just with words. Human beings have always used pictures to communicate amessage to one another. However, the way we do it has evolved. From finding pictures in the stars(constellations), to drawing them on the walls of caves, people seek to use pictures to communicate andexpress themselves.Later, in about 1400 in Italy, the Renaissance period began, and with it many paintings depictingtraditional art were painted by artists also seeking to express themselves through their work. By nowyou are starting to get the “historical picture”. Let’s fast forward a bit to the development of the camerain the early 1800’s. Since that time, it has been possible to actually “share photos” with one another. Ofcourse it could only be done in person or through the mail system initially, but later, with thedevelopment of computers and email, now it can be done electronically. All of this history shows howpicture-sharing has evolved into photo-sharing, and now how photo-sharing has become a current trendin hospitality sales and marketing.Reach and ScopePhoto-sharing, and more specifically the use of Instagram and Pinterest, has several importantuses within the hospitality marketing and sales industry. For example, according to the website,Queensland Government, “some businesses are using the services (photo-sharing) as part of theirmarketing strategy. Photo-sharing services can help you to: show your product or service to potentialcustomers, raise awareness of your brand, build closer relationships with customers, and increase trafficto your website, Facebook page, blog, or twitter account.”Using photo-sharing to show your interest in your field is beneficial to getting customersinterested in what you are selling. After all, being passionate about your product is probably a goodthing. For example, if you’re a car salesman, posting pictures of cars from an auto show will help toincrease potential customer interest in the vehicles that you may have at your dealership.A new social media marketing startup company called Fanbase Media helps companies useInstagram to connect with their customers. This startup company takes a collection of photos from abusiness and makes an online dashboard for them. They are also trying to expand using Vine, a twitterbased app that allows users to create mini videos. These companies are really just expanding onprograms and features that are already in use by companies. They haven’t created anything new.Outside Industry ImpactsPhoto-sharing has impacted many types of businesses. Within the hospitality industry, it hasimproved sales by making it easier for customers to decide where they want to stay and how they wantto travel. Photos of drinks that a hotel restaurant offers as well as photos of the different types of
  4. 4. 4 | P a g erooms offered, whether or not it has a view of the beach, or how big the pool is are all examples of howa hotel or resort can use photo-sharing to make their business look more appealing to guests beforethey even get there. Human resources can hire staff based on their experience using differenttechnology and even photo-sharing websites like Instagram and Pinterest. The sales manager can usesales and accounting information to be able to see whether or not a trend like photo-sharing within thecompany has been profitable and how much so currently in comparison to other years.Section 2Industry Example and Analysis – PinterestPinterest is a pin board-style photo-sharing website that allows users to create and managetheme-based image collections such as events, interests, and hobbies. Users can browse other pinboards for images, ’re-pin images to their own pin boards, or like photosOver this past year, Pinterest has grown up so fast and strong and also has the powerful impacton the public. There were more than 5,000,000 conversations about Pinterest across blogs, Twitter,Facebook and more. When they hit 10M users on 2/26/2012, Buzz peaked with 119 mentions. This hugeinterest among people also brought in lots of potential marketing, for hotels, restaurants, theme parks,and other hospitality industry business.By posting a picture and sharing their views on Pinterest, more and more people get to see andhear about more beautiful and exquisite hotels and resorts. There are also plenty of pictures of tastyfood that are posted and shared, which is going to be a very effective advertising for restaurants.Millions of pictures are shared on Pinterest, it has been building up an information platform for all of thefollowers to exchange their values and form new interests and markets there. Take hotels for instance,there are lots of hotels on Pinterest that post their advertising pictures, such as the Beverly Wilshirehotel which is located in Beverly Hills, LA. They posted their extremely low room rates (from $16 - $ 35for singer room)in order to draw followers’ attention, and it did make a big hit on Pinterest by thousandsof “pins” that followed. The W Hotel located in Singapore is also a hotel that walked into America’sattention and showed them the beautiful views in this little Asian tropical country. Hotel Lisboa is thevery first hotel and casino in Macau, by the picture sharing on Pinterest, we can see the funky glass hugeball shape as the interior design for this hotel, and it’s hard to believe that there is another “Las Vegas”in Southern China. It makes people be interested in Macau’s hotel and drives the economy’s growth inMacau too.Many other businesses also get the huge benefits from the direct visual impact. For example,the wedding related picture will affect relevant shops. The gorgeous wedding dress pictures on Pinterestcan be resources for brides to image and pick their own wedding dress by showing that picture they justsaw online to the dress consultant in store. Even the most popular wedding dress designer or store onthe website can be overbooked for the rest of year. That just the potential commercial for them andthat is for free. Wedding cakes are also easily going to be very hot on there. Trendy and lovely design ofthe wedding cakes will be pinned frequently and become the sample when they really get to prepareweddings.Industry Example and Analysis – Instagram
  5. 5. 5 | P a g eNow that many people actively use and view many different photo sharing social mediaapplications, it’s hard to remember the days when we didn’t have a smart phone to send and share ourphotos with anyone and everyone we wanted to.Thinking back to when we really didn’t have those photo sharing sites at the touch of ourfingertips, you remember the process people actually had to go through to share something withsomeone else. Back when we didn’t have access to all the different kinds of technology that we dotoday, we would take pictures, get them developed and put them into a photo album to showcase whenwe had guests we could take those pictures out and let them see. We could also send developedpictures via snail mail, after snail mail came email.The internet is a brilliant tool and so being able to send pictures that you attached to youremails to show your loved ones became very convenient and much faster. Cell phones give people theability to snap a photo and quickly message it to a friend, family member, or whoever else they want toshow.Being able to share your pictures in one spot or numerous spots for that matter has becomeincreasingly popular worldwide. Facebook has made it easy for us to put our photos all in one place andtag our friends showing the public what we have been doing over the weekend, or how much fun wehad on a trip that we took.Being able to see something with our own eyes is very important, because you wouldn’t book ahotel without seeing pictures of the rooms, and sometimes even looking at the photos on hotelswebsites you really aren’t sure what you will be getting. “A picture is worth a thousand words,” and thatphrase is why photo sharing applications such as Instagram are becoming so popular for people alongwith popular for businesses.Instagram is an application that allows you to easily upload your photos, pick amongst filtersthat will flatter you or your picture the best, and share it with the world. Hotels all over have reallycaught on with this trend because it allows them to be creative and show off their properties withpleasing photos that will make people want to stay at their hotel. Instead of searching different hotelwebsites and trying to find a picture that looks semi appealing, now you can search hotels on instagramsuch as the Morgans Hotel Group who right now has the best hotel Instagram. Their Instagram portraysperfect photos that by looking at them there is not a chance that you won’t want to visit that hotel, oreven just day dream about what it would be like to stay there. For hotels to be successful they need tohop on board with this trend, or they will be left in the dust of the hotel’s that know how to get thepeople’s attention.Being healthy and looking good appeals to pretty much everyone, everybody wants to look theirbest, why shouldn’t they? The fitness industry is always coming up with new and improved, sometimeseven “magic” pills that will claim that you will lose extreme amounts of weight in a very short period oftime. Sounds perfect right? As perfect as that does sound most people know that in order to be healthyand in shape you need to physically put in the time along with discipline that comes with exercise andeating healthy. Anyone can look at themselves in the mirror and not like how they look and tellthemselves that they’re going to do something about it, but without a motivation, a lot of people tendto give up. Having someone to motivate, coach, and remind you that your hard world will pay off alongwith give you great results are the way to hold yourself accountable and make sure you are doing whatit takes to reach your goals.
  6. 6. 6 | P a g eLooking at before and after pictures of people who really have transformed is always amazingbecause you can see that pretty much anyone can change for the better if they are willing to work at it.Being able to look at healthy food, nutritious meals, supplements, and other healthy items that will helpyou look your best will also motivate you to buy and invest in them.The fitness industry is really trying to relay these messages by using Instagram to motivate,educate, and give people options if they really want to change themselves. Herbalife is a global nutritioncompany that helps people pursue healthy and active lives using specific nutrition, weight-management,and personal care products that are available through independent distributors throughout the world.There is a particular Instagram account by a Herbalife coach from South Beach that puts up picturesdaily of: Herbalife products, such as yummy looking shakes, motivations quotes, before and after photosof her clients, healthy choices for meals, screenshots of text messages between her and her clients thatshe coaches which usually say how much weight that person has lost within a short period of time. Shealso always captions the photos with her email so you can contact her if you want help and want to startusing Herbalife products to be a better you.I think this is a genius way to advertise your company because people like looking at picturesand seeing how they could potentially look if they use those certain products and get the right help.When I first saw this Instagram account I wanted to email her and ask her if she could help me like shehelped all her other clients, it’s an extremely effective marketing strategy.Section 3Expert’s Perspective – Bernie MullenPhoto sharing has huge impacts on the business landscape, operations and consumers. Mr.Mullen, who is the Managing Partner at Encompass Hospitality Group, LLC, says “we buy things based onwhat we like; it has been this way for years. Photo sharing will increase customers’ behavior by showingwhat they like from the pictures or photos they see. Any time we add a visual statement, it will impacttheir like or dislike without any words. And there is always saying- the face that launched a thousand ofships, that is the same effect with photos. Besides, photo sharing is likeable and trustworthy, becausejust as I mentioned before, people buy what they see and like. Photo sharing increases the operations,because photo sharing increases the production value chain operations. As an example, if I am theowner, I can take a picture to the whole process to my other business located in another place, maybeoverseas, they will make the production process easier. As customers, “immediate gratification” meansthey want the products right now. If they see it, they don’t want to wait to get it. Thus, photo sharingalso increase the sales.”Business landscape is all about volume, to get as much money as possible. Photo sharingwebsites are like a platform, take Pinterest for example, it connects social media as well as all thefriends from those social medias also so they can see what you “Pin” on Pinterest, thus, they canexchange theirinterested photos and expand their scope of interests. We also can notice that onPinterest, most photos are from people’s daily lives. However, potentially, those people who post thepictures act the role as that certain stuff or brand’s product sales man. They potentially help to attractpublic’s attention and stimulate their interest to purchase the products in the pictures. The click rates onPinterest are huge, which means, this marketing method is effective and powerful. Everyone ends upwith taking the role as marketing staff instead of being the passive customers. This free and significant
  7. 7. 7 | P a g ecommercial is a revolution to the form of sales and marketing. A picture speaks a thousand words.Besides, the specialty of photo sharing on social media is customers taking part in marketing and beingwilling to spread the products for the company as their interests. People on these kinds of websites loveto see that“advertising”. However, even though the range of their interests on these photo sharingwebsites are broad, they still focus more on clothing, food, decoration or tourism destinations. Someindustries or some certain practical products can’t be covered, like daily necessities or fuels. Thus, photosharing is helpful for business marketing and sales, but it has limitations. People only post beautifulthings. For some businesses, they don’t get any benefits from it.Future Impact of Photo Sharing TrendProvides a good opportunity for advertisingGives sales managers another way to show what their company has to offerAllows guests to share photos with each other and friends which can also promote salesFive specific points:Public relations: Photo-sharing is a good resource to be able to promote good public relations. A hotelcan use photos to generate a certain image to the public. If it wants to be eco-friendly, it can postpictures of an ocean and talk about how reusing towels is good for the environment. If it wants to showsupport for a charity such as St. Jude’s Children’s Hospital in order to give back to society, that isshowing good public relations. The use of photo-sharing to promote good public relations is beneficial tothe business as well as the charity.Societal marketing concept: The needs, wants, and interests of target markets should be delivered in amore effective and efficient way. The goal of the societal marketing concept is to guide corporations torun their business in a way that improves the consumer’s and society’s well-being. It also encouragesbusinesses to be more environmentally friendly which also helps to maintain good public relations.Photo-sharing can be used to depict a type of business that emphasizes quality and comfort while at thesame time being environmentally conscious.Upselling: There are many opportunities for upselling, which is offering a higher priced product, ratherthan the lowest price, or adding another product or service to the sale. An example from the book wasusing high-image upgraded presentations of coffee instead of something simple. There are manyopportunities like this in a hotel. By upselling, a hotel or restaurant increases its revenue. Using photo-sharing to upsell to customers is really pretty easy. Sending the guest a picture of a much nicer executivesuite before they even get there is one example of upselling. A restaurant might use photo-sharing toupsell by sending out photos of a new special being offered, or new drinks to try.Message generation: It can be a challenge to advertise a hotel stay because of the intangibility of it. It’snot like a product you can see or try. You have to stay to have the experience; because of this it can bedifficult to sell rooms. Photo-sharing allows people to get a better idea of what they are paying forbefore actually purchasing a stay at a hotel. It helps advertisers market to different demographics ofpeople depending on their interests.Unique value effect: Photo-sharing is a good way to show customers that what you are selling them issomehow different from competitors. Getting customers to not only take pictures of the hotel or resort
  8. 8. 8 | P a g ethey are staying at but to share them with their friends on Instagram or Pinterest is a good way toactually show how one hotel might have a unique value over another.Maintaining a Competitive AdvantageHow to maintain a competitive advantage:In order to maintain a competitive advantage with photo sharing and the hospitality industry,mostly businesses just need to be on board and capable of embracing it. If they don’t embrace it theywill get left behind while other companies come out ahead because they know what their target marketlikes and answers to.Analyzing your target market and identifying your competition is extremely important because ifyou don’t know what you’re up against you will be setting yourself up for failure from the verybeginning. Every business needs to be on the lookout for what the next big thing is going to be, the nextthing that will spark the industry. In order to do this successfully you need to be on top of your game atall times, knowing what speaks to your target market is key because they are “a specific group ofconsumers at which a company aims its products and services” and they are the most important part ofyour business, if you get them to come to your business you will succeed.Identifying the competition is vital because before you can overcome them, you need to knowexactly who and what you’re dealing with. Find out what businesses are going after, and what targetmarket they are after, if it’s the same as yours, you need to take care of that. Figure out how yourcompetition differentiates themselves from other companies in the industry, and where they arelocated.Use your competition as a way to learn from them and what they do and don’t do. Learn theirweaknesses and strengths, doing that, you will be able to imitate them and also be sure to learn whatnot to do from their weaknesses. We have all heard the saying “a picture is worth a thousand words” sowith all the photo sharing tools you have at your fingertips, be sure to use pictures for your companythat would represent a good message, or a good “thousand words.”Be able to look at your competition and recognize their good ideas along with what is popularwith the target market and do something that will make you stand out with your target market. Doingwhat is popular but adding that extra something that will really make you stand out from yourcompetition will help maintain a competitive advantage.After gaining a competitive advantage you still always need to be on your toes, because yourwork is far from over. Being continuously successful will mean being able to maintain your competitiveadvantage. You can’t get comfortable once you are at the top because there is always going to beanother hotel or resort that is coming up with something new that will be better than what you’reoffering.Maintaining competitive advantage comes down to predicting future trends in the hospitalityindustry, adapting to your target market’s wants and needs, and constantly monitoring and researchingyour competition. You need to be willing to take risks and chances in order to stay ahead of yourcompetition while differentiating your company-with big risk often comes bigger rewards.
  9. 9. 9 | P a g eReferences1. http://www.business.qld.gov.au/business/running/marketing/online-marketing/using-online-photo-sharing-services-to-market-your-business2. http://www.stepforth.com/resources/web-marketing-knowledgebase/diysmm/smm9-photo-sharing-sites/#.UVzIi1fneSp3. http://www.thompsonhotels.com/inn-sight/instagram4. http://techcrunch.com/2013/03/29/fanbase-media-debuts-its-social-marketing-platform-for-instagram-and-maybe-one-day-vine/5. http://gigaom.com/2013/04/03/twitter-plays-its-platform-hand-and-it-is-the-one-holding-all-the-cards/6. http://www.dailystar.com.lb/Business/Lebanon/2013/Mar-30/211976-businesses-increasingly-engage-customers-with-social-media.ashx#axzz2PRzh53NX7. http://thenextweb.com/insider/2013/04/02/science-inc-backed-helloinsights-becomes-hellosociety-a-pinterest-marketing-agency-for-brands/8. http://www.fortmilltimes.com/2013/04/02/2593335/phillips-distilling-company-announces.html

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