Michigan State University Extension
Tourism Educational Materials - 33410154
06/06/02
Marketing Management In The Lodging Industry
Source: Michigan State University
Authro: McIntosh, Robert
ID: E0677
Year: 1972
INTRODUCTION
The most difficult and important part of the lodging
manager's job is marketing-planning and accomplishing
sales. Sales are the fundamental measure of the success
of a business.
Marketing is probably the greatest intellectual challenge
in management. To be effective requires imagination,
understanding, intuition, knowledge, and information.
This publication supplies some of the information needed
to make the lodging manager more expertise in this
important area of management.
Customer Orientation
Before you can increase your understanding and skill in
marketing, you must understand the concept of customer
orientation. This means that all management decisions
must be made with regard to the likely response of your
customer. Rate increases must first be analyzed for their
probable acceptance by guests. Always begin by
considering your customer's point of view rather than
your own.
Market Segmentation
Another fundamental consideration is that of market
segmentation---separating your customers into groups.
Traditionally, the customer is segmented according to
such variables as population, age, geographic location,
sex, marital status, education, and income. While these
classifications are important, there are others of equal
importance which are not often used: customer attitudes,
motivation, values, needs, appreciations. The customer
should be segmented according to these variables since
guest feelings, likes, enjoyments, preferences, etc., are
extremely important.
MANAGING MARKETING EFFORTS
To increase the success of your marketing program, you
must:
* Study the Market---Which segments of the market have
not been penetrated, or could result in increased sales?
Identifying these areas of opportunity is one of the
first steps to improved marketing management.
* Set Objectives---Plan the Program---Successful programs
are impossible without good planning. The marketing
effort must be systematically planned in view of the
markets to be exploited. How, when, and by whom, will the
marketing program be carried out?
* Implement the Marketing Plan---This will be determined
by the requirements of the plan and available resources.
* Evaluate Marketing Success---For continual marketing
improvement, the success of each marketing effort must be
constantly appraised.
Study the Market
There are two ways of looking at a lodging business--as a
service organization, and as a marketing organization. A
leading management authority stated, "if we want to know
what a business is, we have to start with its purpose.
And, its purpose must lie outside the business itself. In
fact, it must lie in society, since a business enterprise
is an organ of society. There is only one valid
definition of a business purpose: to create a customer.
Business actually has only two basic functions: marketing
and innovation."
As manager of a lodging business, you can create a
customer through advertisement, sales promotion, and
public relations. Behind each of these are: origination,
imagination, appearance and appeal, salesmanship and
hospitality.
Your guests determine what your business becomes. They
convert economic resources into wealth when they rent
rooms and buy meals and other goods and services. What
your guests consider "value" and think they are buying
determines what your business actually is, what it
provides, and whether it will prosper.
Some important questions must be answered before
marketing policy and investment decisions can be made:
* Who are the present guests? What do you know about
them?
* Who are your potential customers and guests? Where do
they live? What are their vacation and travel
accommodation preferences?
* What are customer purchase habits and preferences for
shopping, entertaining, etc., while at your resort, motel
or hotel? What important accommodation needs do you not
supply at the present time?
* What is your situation with competitors? What is your
share of the present market?
* What are present and likely future trends in
accommodations?
* What are the prospects for increasing business in the
future?
* What kind(s) of marketing program(s) are needed? How
implemented, etc.?
Careful review of these kinds of questions will give you
the data needed to improve your marketing program.
Knowing Your Guest
To improve your marketing effectiveness, guest
preferences must be known.
A guest questionnaire is the most useful and practical
way to discover guest preferences. A simple, one-page
form such as shown in Fig. 1 can be placed in each
guest's room. Careful tabulation of the results over at
least one season will yield useful information.
The room questionnaire can be supplemented with a
personal, oral survey. A specific group of questions
like, "How did you happen to stop here?" are asked of
each guest. These are tabulated as soon as possible after
the interview so that information is not lost. A good
system is to list key questions at the left with a place
for tabulation and typical remarks at the right.
A constant effort to survey guest preferences will pay
off in increased guest satisfaction and success for your
lodging business.
Every Employee - A Salesman
Among the essential concepts every employee should
understand is that of "marketing." He must realize that
the way he performs his job vitally effects the sales
success of the business. He should understand the
importance of improving the image of the business and the
relationship of raises and promotions to business sales.
The same concept should be inculcated into the mind of
each department head. He should be convinced of his
direct and indirect marketing responsibilities. The
department head should then see that each employee under
his supervision follows through as a marketer of the
business.
-------------------------------------------
Figure 1---Example of a guest questionnaire form:
Guest Questionnaire
Dear Guest:
Your assistance in helping us provide the very best in
lodging and related services will be most valuable to us,
and at the same time, help improve accommodations and
services for yourself and other guests. Thank you.
1. Do you find this room attractive? Yes No
2. In what ways could we improve its appearance and
appeal?
3. Is your room comfortable? Yes No
4. How could the room be made more comfortable?
5. Do you have any comments regarding the bath?
6. What about the room's equipment such as beds, lamps,
radio, T.V., hangers, lights, etc.?
7. Do you have any other comments or suggestions?
Please place questionnaire in the attached envelope and
leave on Desk. Thank you.
Manager
---------------------------------
Set Objectives - Plan the Program
A managerial study of marketing opportunities should lead
to a list of objectives which appear to be attainable and
specific marketing plans needed to meet them.
There are two types of marketing planning: 1) end
results," such as setting the advertising budget, and 2)
"means to an end," or determining the courses of action
which are to be taken to meet marketing goals or
objectives.
Obviously, a close and interdependent relationship exists
between these two types of planning. "End results"
planning will affect the outcome of "means-to-an-end"
planning.
A good marketing plan demands a clear definition of the
various objectives and careful consideration of methods,
policies, procedures and time.
Objectives should be separated as clearly and
specifically as possible. Then, organize the methods,
policies, and procedures which will apply to each
objective. This will make it easier to tackle planning
jobs directly with a minimum of confusion. For example,
suppose you decide to improve direct mail advertising.
One key "end result" plan might be to increase spring and
fall occupancies 10 percent. Your "means-to-an-end" plan
might suggest a quarterly newsletter. Specific planning
could include 1) gathering samples of newsletters used by
similar businesses, 2) planning the format of the
newsletter, 3) deciding on the types of material to be
used, 4) organizing the writing tasks, 5) obtaining a
mailing list and 6) finding a creative printer
who could do an excellent job at a reasonable price.
Determine Priorities
Establishing priorities for marketing planning is another
important step. More easily attained objectives should be
tackled first. There may be short range and long range
plans and day-to-day plans. The success of short range
and more easily attained plans will increase your
confidence and ability to achieve more difficult and
longer range plans.
Integrate Plans
Since each plan involves policies, budgets, procedures
and programs, and each of these affect each other, all
marketing plans should be integrated.
This interdependence can make planning complex. Isolated
plans are extremely restricted. If your marketing plans
are well integrated, they will support each other and
contain a consistency of purpose. The newsletter
previously mentioned could support an expanded highway
sign program and radio advertisement in cities where
recipients of the newsletter reside.
Advantages of Planning
One of the most important advantages of planning is
making activities related to marketing more efficient and
purposeful. An effective sequence of efforts will
minimize wasteful and non-directed efforts. Good planning
allows for greater utilization of available resources.
Planning also provides a measure of performance. When
marketing plans are clearly spelled out, achievements can
be measured step by step, against prepared plans.
The entire marketing effort can be brought into focus
through good planning. This provides a fuller
understanding of each of the parts of the plan, an
appreciation of the basis upon which managerial actions
are supported, and identification of marketing problems
and potentials.
Limitations of Planning
The most serious limitations of planning are in accuracy
and incompleteness of information concerning the future.
Planning is also limited by the amount of time and effort
which can be devoted to it. While planning can help
maximize efficiency and results, its existence must be
justified.
Planning may also delay some desirable action programs.
Overall, however, good planning increases the surety of
plans and minimizes risks. More time and effort is
required to accomplish marketing goals by those who do
little or no planning than by those who plan in a
careful, integrated manner.
Organize Your Efforts
To achieve the greatest impact, all sales efforts or
marketing should be as closely knit as possible. Sales
efforts can be separated into three types. Media
promotion, and similarly related promotional activities
are termed advertising. Specific marketing activities,
such as setting sales policies, personal sales
solicitation, training of personnel at all levels for
selling efforts and similar functions are called sales
promotion. Public relations work supports the entire
marketing effort.
There are many advantages to integrating all three of
these marketing functions under the single leadership of
a marketing manager (Fig. 2). If marketing activities are
subdivided as illustrated, it is important that the total
effort be coordinated.
Figure 2 - Example of the marketing organization for a
large inn.
Board of Directors
Manager
Asst. Mgr. for Marketing
Advertising Manager
Sales Promotion and Public Relations Manager
-----------------------
Implement the Marketing Plan
Implementation of the marketing program will be
influenced by the location, size, facilities, etc.,
of each individual business. It will also depend upon 1)
relative importance of the various sales efforts to the
business, 2) overall form of marketing organization which
has been established for the business and 3) the number,
placement, and diversity of marketing and sales
activities carried on at various levels of the firm.
There may be other "built-in" determinants of marketing
methods, such as the philosophy of management and the
type of clientele catered to.
In a small motel of up to 50 rooms, the responsibility
for marketing would likely fall upon the manager himself.
For a larger organization, perhaps 50-200 rooms, the
assistant manager might be in charge of all marketing
activities. A large accommodation business, one with more
than 200 rooms, would have a marketing staff. This staff
would be headed by a director of sales who would have
assistants assigned to him for the various functions.
Director of sales is usually considered a staff position
under the general manager. Reporting directly to the
manager, he is responsible for all staff persons under
him as well as for the entire marketing and sales
efforts. Large organizations may also include a special
director of advertising and a director of public
relations.
Outside Assistance
Most sales organizations require expert outside
assistance. These are almost a part of the sales
organization. Examples are: consulting firms for sales
and marketing, advertising agencies, and media
specialists, such as newspapers, printing shops,
photographers, artists.
Evaluate Marketing Success
Periodic review of any management procedure is essential
for continual improvement. Marketing, sales promotion and
advertising data should be carefully assembled and
analyzed. Statistical analysis is the best way to
determine the efficiency and effectiveness of the
campaign. Decisions are best made from factual data, not
from guesses or hunches.
If marketing and promotional plans have been carefully
and thoroughly made, it should not be difficult to
measure results. Find out what has been accomplished and
then review these findings, considering the cost and
potentials for further progress. Compare what has been
accomplished with what was planned. Try to discover the
reasons for any shortcomings. If these shortcomings can
be controlled, do so.
Here is an example of how a marketing program that
involved the addition of road signs might be analyzed: As
each guest registers into the lodge, the desk clerk could
ask, "How did you happen to select our place, Mr. Smith?"
If he said he saw the road signs, this would be an
indication of the effectiveness of this new program. The
same technique can be used with any other advertising
effort, over at least one season to determine the
immediate effect of the program. Always tally guest
replies as soon as possible.
ADVERTISING SUPPORT FOR MARKETING
Fundamentals
Advertising can be defined as paid, public messages
designed to describe or praise your business. This can be
done through the use of posters, newspapers, radio or
other media.
Effective advertising gains the attention of the
prospective guest, holds it so that the message can be
communicated, and makes a lasting, positive impression on
the prospect's mind.
Importance of Advertising
Every lodging business needs some form of advertising to
keep revenues at a sufficient level to produce a profit.
In addition to word-of-mouth testimonials and
endorsements (the most valuable of all ways of increasing
business), a well organized advertising program is
essential.
The Touch of Quality
Like a mirror, your advertising reflects you, your
personality and your business. Thus, you cannot afford to
use anything but the very best advertising to create the
most favorable image in the customer's mind.
To most prospective guests, your advertising will be
their first introduction to your business. The success of
this introduction will depend upon the impression and
image made. To insure that this impression will be
favorable, all advertising should have the touch of
quality -cleanness of form, and a dignified, convincing
message.
A flavor of showmanship and originality is needed to make
your advertising efforts distinctive. interesting and
compelling. To meet your competition, effective
advertising must stand out as superior to anything else
in your vicinity.
The Advertising Program
Before you can plan an intelligent and well organized
advertising program, you need some important facts about
your prospective guest. You must analyze your market
before deciding how to reach it.
Market analysis consists of determining:
1. The types or classes of guests you can successfully
serve.
2. The geographical areas from which you attract guests
(or could attract them), and
3. how much business you could accommodate with present
facilities, and its potential through addition or
remodeling.
Types of Guests
The first consideration involves determining to which
classes or categories of customers you want to appeal.
No lodging business can successfully accommodate
everyone. Managers must gear their facilities and
services to a somewhat narrow range of price appeals,
knowing that they cannot provide the type of facilities
desired by a wide diversity of guests.
The market for your place must be clearly fixed in your
mind. Who are you best qualified to serve? Well-to-do
couples? Traveling men? Business executives?
Honeymooning couples? Families in the medium income
bracket? Low income families traveling on a budget?
Wealthy sportsmen? These are just examples of market
groups whose characteristics may be grouped by: (1)
income and price class, (2) cultural interests, (3) age,
(4) predominant activity, such as sports, etc., (5)
services desired, and, (6) length of stay.
Every lodging business can probably serve successfully
several groups of customers such as commercial travelers
and tourists or vacationists and retired couples. The
more different groups you can accommodate, the better,
but there are limits.
Geographical Areas for Business
The second consideration involves knowing from where your
business comes or could come.
By studying your guests' registration cards, you can
organize this data on a map or by tally. For example, one
motel found that 92% of its registered guests came from a
radius of 200 miles or less from the motel. Such a study
will provide excellent insight into the geographical
locations for most effective, concentrated advertising.
Don't overlook however, potential business from a
considerable distance. For example, a Pontiac motel
manager gets a good share of his business through travel
agents in California who have recommended the motel to
customers flying to Michigan to take delivery of new
cars.
Size of Business and Potential
The number of rooms and variety of facilities you offer
will influence your share of the market. If you installed
a children's playground, you could expect to serve a
wider range of guests than you could without it.
Likewise, food service, beverage service, and meeting
rooms can further widen your market and potential market.
Expanding or remodeling your facility can increase your
share of the market.
Two Market Types
If your prospective guests are ending their trip at your
lodge, the market could be called terminal. This would be
the prevailing type of guest at a resort or resort-type
motel.
Guests who are passing by constitute a transient type
market. Commercial motels and hotels seek these people--
-actively promoting business by roadside signs and other
types of advertising.
Potential guests in the terminal category:
* Resort guests and those at resort-atmosphere places
which can accommodate "weekend or longer" guests.
* Business visitors to the community.
* Residential visitors who can more conveniently sleep in
an inn than at their host's home.
* Attenders at group meetings or conventions.
* Visitors attracted by special events, tourist
attractions, or features such as festivals, tournaments,
celebrations, shows, tours, historical sites, games or
fairs.
Potential guests in the transient category:
* Business travelers passing through the community.
* Vacationers or others on their way to a terminal point.
Studying Your Market Groups
When applying market analysis to advertising, review the
characteristics of each market group. Then determine
which of these groups you can best serve. Also consider
what additional groups could be served by remodeling or
enlarging your facilities. There may be entirely new
markets which you could tap.
After studying these possibilities, develop an
advertising, program which will appeal to each
prospective group.
One statistical method for analyzing guest information
data is arrangement of it into series or trends. For
example, you may find last year's business from Chicago
was 10 percent of your total business---15 percent the
year before. This is valuable information which can
provide the basis for marketing programs aimed at
regaining this business.
Think about these questions:
How can your share of the market be increased? How should
you appeal to your best prospects? What are they seeking?
What can be done through Advertising? Publicity? Sales
Promotion? Public Relations?
A Coordinated Program
"Shotgun" advertising is largely a waste of money.
Promotion-wise lodging managers make their advertising
dollar do double duty. They invest in a multi-phase
program in which each part strengthens the others. An
example is the use of outdoor advertising displays which
tie in closely with radio advertising. A motorist hears a
motel radio "commercial," Soon, he sees the outdoor
highway advertising of this same motel. Such a
coordinated program can make a much more lasting and
effective impression on the mind of the prospective guest
than that of an unplanned program. He heard the message
and then saw the outdoor sign. To obtain full
effectiveness from your advertising expenditures, plan
and coordinate your advertising efforts in this manner.
Using an Advertising Agency
Lodging managers must know the fundamentals of marketing,
advertising, personal selling, and public relations.
However, to be an expert in any of these areas,
specialized skill and experience are required. Expert
advertising ability can be gotten from an advertising
agency.
The purpose of an advertising agency is to increase your
business-and do it profitably. An advertising agency
will:
* Work with ideas, in copy and in layout. "Copy" is the
term used to describe written messages. "Layout" refers
to the arrangement of copy, art, and pictures.
* Advise on the choice of channels to convey advertising
messages. This involves an organized and carefully
worked-out plan using newspapers, magazines, radio, TV,
guide books, posters, direct mail, post cards, folders,
or other advertising media.
* Conduct market analysis so that advertising efforts can
be directed to the best prospects.
* Assist in planning and carrying out a public relations
program for the business.
When seeking the services of an advertising agency, look
for successful experience which the agency has had in
promoting your type of business. Emphasis should be on
quality. Check their past advertising campaigns to
determine their effectiveness.
If you cannot find a satisfactory agency, ask your local
newspaper for information about agencies that could help
you.
Advertising agencies receive a commission from the
various media through which the advertising is placed.
The advertising agency usually charges a fee for
supplying copy and layout services. Several arrangements
for paying the advertising agency are used: fee plus
commission, fee minus commission, a flat fee, or a
cost-plus fee. Determine in advance the arrangements for
paying the agency.
You can check the financial integrity and credit rating
of an advertising agency by contacting art studios,
printing companies, or others who do business with the
agency. Also, agencies which are members of the American
Association of Advertising Agencies are available.
Plan your advertising program objectively by setting
forth specific, achievable goals. Your advertising agency
can help you.
For single piece printing such as a folder or post card,
a reputable printer is often very helpful. However, for
an overall advertising program, the advice of an
advertising agency that is experienced and successful in
lodging advertising, is most valuable.
Setting the Advertising Budget
After the preliminary planning of an overall program, the
next step is to adjust this program to funds available.
Re-appraise your program in light of your goals and then
proceed with the high priority essential items.
Promoting a new business will require more money than
promoting one with an established clientele.
It is impossible to recommend any specific amount or
percentage to budget for advertising and sales promotion.
This will depend upon each business. Some businesses may
find that a very small advertising budget produces
satisfactory results. others might spend 10 percent or
more of their gross sales, and profit accordingly.
Research studies of the "Tourist Court Journal" reveal
that the average motel spends about 3.2 percent of its
gross sales on advertising.
"American Plan" (One of several types of package plans.)
resorts spend about 5 percent of gross sales on
advertising, but individual resorts in one study ranged
from 1.2 to 8.1 percent.
All forms of advertising and sales promotion should be
included in the budget---paid advertising, advertising
fees, franchise fees, cost of endorsing and referral
organizations, tourist association fees, outdoor signs,
and other similar expenditures.
Commissions, discounts and allowances, such as those paid
to authorized travel agents for business obtained, should
not be included. Discounts on credit cards should not be
considered advertising. The above recommendations are in
accordance with the Uniform Classification of Accounts
for Motels and Motor Hotels.
Advertising Media
There are at least two dozen media which you can use, but
you will probably use less than half of this number. When
planning a program, list the media considered as
essential, valuable, and probably helpful. Your selection
will depend upon budget, goals and markets being sought
as well as season of the year.
Importance of Timing
Your advertising program should be planned as far in
advance as possible. When color cards or photographs are
to be used in printed advertising, a year in advance is
necessary.
In your plan, list each month and the advertising program
which will be conducted for that month. Some programs,
such as sign advertising would be in effect every month.
other programs would be seasonal, such as Christmas cards
or notices of good fishing, color tours or skiing. Local
events like homecomings, shows, ball games, bowling
tournaments, festivals, mushroom hunts, etc., warrant
various forms of advertising.
If you are in a resort area, time your direct mail
advertising with that period in the year when vacation
plans are being made, usually early spring. Such a time
schedule is necessary for effective advertising.
Word-of-Mouth Advertising
This is the cheapest, and yet, most convincing, form of
personal advertising. A friendly, interested, and capable
host encourages this type of personal advertising. Treat
every guest as a very important person and he will not
only come back himself, but will recommend your place to
his friends. All of your facilities, services,
hospitality and pricing policies must be directed to this
one goal---a satisfied, happy guest.
Outdoor Display Advertising
This medium is probably the most important single
promotion method for motels. Signs must be carefully
planned, located, and maintained, to be effective. For
resorts and hotels, signs may be less important, but are
still needed to direct guests to their destination and
induce prospective guests to drop in and make inquiries.
Impressions made by signs can definitely encourage (or
discourage) patronage.
Between 85 and go percent of all travelers travel by
automobile. The highway travelers' eye is attracted to a
large number of advertising and directional signs.
Because there are so many signs, an outdoor advertising
program must be very skillfully planned and carried out
to bring good results. Leave this to the experts--
-outdoor advertising companies. These companies have
found, for example, that related sales messages displayed
closely together have a concentrated impact. Therefore,
the best procedure is a planned system of signs.
The most important single aspect of your sign system is
clever, creative design. Signs should be keyed to the
architectural design of the building and incorporate a
distinctive symbol or logotype. This symbol is effective
in creating an impression in the prospect's mind. Signs
can be interesting and help relieve the monotony of
driving. Thus, signs that are well designed and placed
are often welcomed by the traveler. Creative, interesting
and attractive signs, carefully placed and well
maintained, can mean successful sign advertising instead
of just some signs.
Signs can do the following:
- identify you
- create an impression or image
- give directions
- sell meeting facilities
- sell entertainment and services
- help make decisions
Thus, signs help to increase profits. Use them to
emphasize what you have that your competitors do not. It
will help make your place stand out to the prospect.
"Feeder signs" are signs remote from your location, that
lead the prospect to you. To receive the most attention,
these should be placed in open areas, not cluttered by
other signs. (Note: Be careful to observe zoning and
other sign restrictions.)
The most effective location for highway advertising is
close to your business. This justifies large displays
that will identify your business and provide directions.
in areas where new super highways have cut motels off
from the previous main highway, cooperative signs
(promotion by area motels) are helpful.
Outdoor displays should be lighted or incorporate
reflective materials. It has been found that over 40
percent of all travel is done after dark and 66 percent
of all motel guests arrive after dark.
It is extremely important that signs be maintained in
tip-top condition.
Newspaper Advertising
Newspaper advertising has proven to be particularly
effective for cottage resorts, American Plan, and winter
sports resorts. It can also be helpful in promoting
business for motels, particularly for food and beverage
sales.
Motels and resorts which serve transient guests are
probably best served by ads in special travel
issues. These highlight periods of greatest tourist and
vacation sales. Moreover, they direct the reader to
specific vacation areas. Thus, your own ad could be
supported by a tourist association advertising effort
which boosts your area.
Market analysis (discussed earlier) will tell you where
your present business comes from. This information will
suggest possibilities for newspaper advertising.
It is sometimes advantageous to cooperate in a group
advertisement sponsored by the Chamber of Commerce or
tourist association. The newspaper will provide an
attractive heading which features your resort area.
Magazine Advertising
Magazine advertising research indicates that heads of
households who read magazines regularly do more pleasure
traveling than heads of households regularly exposed to
the other major national media. Thus, a ready-market
exists which can be reached through magazine advertising.
Your advertising agency can help you select the most
likely magazines and the best times of the year to place
the ads.
Ads in sportsmen's magazines should bring excellent
results for resorts in good hunting and fishing areas.
Other advertising possibilities are magazines for brides
to attract honeymooners or travel magazines read by those
interested in vacation suggestions.
Guidebooks and Tourist Literature
Publications of tourism organizations are attractive and
substantial, and an important media for lodging
advertisement. Since the literature is distributed
primarily on the basis of direct inquiry, they are
pin-pointed to the individual who is seeking vacation
suggestions. For more information, contact your tourist
promotion association representative. Addresses are
listed at the end of this bulletin.
Radio
For transient business, radio is an important advertising
medium. Since most motorists do not make advance
reservations, spot announcements on the radio can reach
prospects and influence their decision. Nearly all cars
have radios.
Selecting a station
If your prospective guests come from large cities, a
powerful station covering that city is the best station
to use. A large coverage provides a radio signal for a
long time as the driver moves rapidly toward his
destination. However, smaller stations can be effective,
especially in the north.
A directory of all U.S. radio stations can be obtained
from Broadcasting, 1735 DeSales St., N.W., Washington,
D.C., 20036. Your local radio station can help you locate
stations which might be effective. Compare stations for
audience rating, power.
Timing
1. Go for power---the wider the area covered, the better.
The longer the driver hears the station, the more likely
he will get the message and be influenced. Afternoon and
early evening spot announcements are recommended for
motel advertisements.
2. For resorts, use spot announcements on radio all day
long. Morning advertisements are effective since they
reach women, who often make the decision on the choice of
a resort. Radio listening is now greater in summer than
in winter, a reversal of past listening patterns,
due largely to the popularity of transistors.
3. Give radio a fair trial period before making a
decision about its effectiveness. Radio advertising
should be used for about 3 months before evaluation. Ask
your guests how they heard about your place and tabulate
their answers. Then you can see how radio fared as an
advertising medium.
Television
Lodging managers have learned that television is usually
too costly for the individual businessman. However, in a
community with a rather large number of resorts, hotels
and motels, group TV advertising sponsored by the Chamber
of Commerce or a tourist association would be feasible.
This should help attract business to your area, and each
place could then get its share.
SALES PROMOTIONAL SUPPORT FOR MARKETING
Fundamentals
Sales promotion consists of those activities directly
involved with the day-to-day business of selling rooms,
food, beverage, and other lodging services. It can be
thought of as the fundamental processes of training all
employees to be sales-minded; the preparation of sales
training materials; guest sales literature; direct mail
programs; posters; use of give-a-ways and similar efforts
to increase sales.
Internal Selling
Persuading a prospective guest to patronize your business
is not the sole concern of the sales effort. Internal
selling---all sales efforts made after guests have been
registered---must also be considered. Internal selling
has two purposes (1) to encourage the guest to patronize
all facilities of your business, and (2) to favorable
influence him so that he will return again.
Personal Selling
Personal selling, as the most impelling type of selling,
provides excellent potential for increasing business. All
of your staff should be sales-minded. They must be
trained to offer sales suggestions to guests when
opportunities are presented. Friendly cooperation from
all staff is essential. Here are some examples:
Desk clerk, while registering a guest: "Mr. Brown, we
have a beautiful new dining room here and hope that you
can try it out. We're also open for breakfast, beginning
at 7:00 a.m."
Bellman, while rooming a guest in hot weather: "If you'd
care for a mint julep before dinner, you can have one in
the cocktail lounge."
Waitress, serving dinner: "We feature warm, Michigan
cherry pie. Would you like some for dessert?"
Telephone Selling
Expert selling on the telephone is important, too. The
hotel's telephone operator is in a good position to make
sales. Guest's inquiries from their rooms or from outside
can often be the opening for a polite and skillful sales
effort. Negatively, an unfriendly or "snappy" manner can
discourage sales. Your telephone company can assist in
training.
Other Methods
Internal selling can be done by means of various printed
pieces or by artistic posters and similar methods.
In his book, "The Full House," C. DeWitt Coffman offers
numerous suggestions for promoting internal and external
selling. Here are a few examples: tent cards, posters,
lighted pictures of guest rooms, dining and beverage
roms; ads under dresser top (glass), reminder cards,
bathroom mirror stickers, morning paper with sticker,
menus, cocktail napkins, bulletin boards, elevator cards,
stiff paper folder containing ads.
Printed Literature
The average person is exposed to some 6,000 advertising
impressions per day, from signs, posters, newspapers,
magazines, radio, TV, and other media. Since there are so
many forces trying to persuade him to buy, your printed
advertising must be done well and be effectively
distributed to be worth its cost.
Here are some basic rules for printed sales pieces:
* Get to the point. Don't beat around the bush. Be brief.
Often, your second paragraph will be a better beginning
than an introductory one which you write first.
* Provide the information that people want. If you were
planning to vacation at an unfamiliar resort, what would
you wish to know about the place? Your answers to this
question will help outline the information needed in your
folder. Quote prices, how to get there, clothes to wear
at the place, entertainment features, and similar
information.
* Be different, if possible. One of the keys to
successful advertising is to be distinctive---
outstanding---or different. Attract attention and induce
the prospect to buy. This requires creative thinking--
-novel, "impactful" ideas.
Post Cards
Full-color cards are indeed a handy and inexpensive
advertising medium for any type of tourist business. They
are very useful for writing short messages and can even
carry a printed reservation acknowledgment. Several cards
may be desirable, showing various exterior and interior
views.
When composing a card, avoid showing large areas of sky
in the card. Better to divide the card so that a portion
shows the sign, perhaps an exterior view. Extra large
cards do not mail well. However, a larger card with
standard width (three and a half x eight and a quarter
inches) inches) is very attractive and is especially
suitable for motels.
Use your identification symbol or logo on your post cards
as well as on your stationery, matches, business cards
and signs.
Providing post cards for your guests will encourage them
to mail them to relatives and friends. Use the card as
part of your direct mail solicitation. If you have only a
few forms of printed advertising, the color card should
be one of your most essential pieces of literature.
Other types of cards are also useful. These include
Christmas cards for guests with whom you have become well
acquainted, a "thank-you" card at Thanksgiving time,
birthday cards, anniversary cards, and reminder cards
sent about a week or 10 days prior to the guest's
arrival.
Folders or Brochures
Folders or brochures constitute one of the most effective
forms of printed advertising. Nothing can so completely
tell the story of your place as the folder. All types of
tourist businesses can use folders. For maximum
effectiveness, use well-chosen full-color photographs of
the principal features of your place. Art work can also
be used effectively, especially when building and rooms
are not involved.
Good folders include a rate sheet (which is printed
separately), a reservation form, examples of activities,
a map and description of location. Of course, there are
variations in presentation. The map and other components
could be printed separately.
Additional information should be provided as follows:
address, phone number (including the "Area Code" to
facilitate Direct Distance Dialing), services provided,
eating facilities, food specialties, plane, train, and
bus connections, and car rental services. Primary
recreational attractions should be included, such as
golf, swimming, trails, sightseeing, tours, etc.
A professionally designed folder is money well spent. The
same applies to professional photography, and art work.
An "amateurish" folder can be a detriment to your
business. Better to have no folder at all than a poor
one.
By all means, include printed descriptions of your nearby
area. Prospective guests are more likely to come if you
tell them about the many interesting and enjoyable
attractions which they will find in your vicinity.
Stationery
Most business stationery lacks imagination and "punch."
It should be colorful, interesting---yet dignified. Using
the same color scheme as the exterior of your business
and using your logo helps to make stationery distinctive
and eye-catching. Effective art work or a photograph can
also add interest. Envelopes should be just as
interesting as the writing paper, and give the reader a
"lift" and lasting impression.
Direct Mail
Direct mail advertising has the advantage of pre-
selection of prospects. Your advertising message goes
directly to that person, privately and personally. Its
value depends on several important factors.
Some of these are:
* quality and impact of the mailing piece
* the prospect's interest in what you have to offer
* frequency of mailing
* newsworthiness (exemplified in the newsletter.)
Quality and Impact
Assuming that you have produced good printed literature,
the next step is to use it effectively through direct
mailing.
A personal letter is best if you can spare the time to
write. The next best thing is a reproduced letter
individually addressed and personally signed. A personal
postscript in your own handwriting is very good also.
When making a mailing to a first-time prospect, send
complete information so that the prospect's questions are
completely answered. He should not have to write again
for more information. This is particularly true regarding
rates. Provide full, easily understood, rate schedules. A
follow-up letter could be sent in a week or so to show a
continuing interest in the prospect's business.
If you were a prospective guest, what would you be
interested in? Think this through and then organize your
direct mailing pieces accordingly. Literature should tend
to understate rather than overstate. Then, when guests
arrive, they can say, "This is lovelier than I thought."
Reprints taken from a magazine or newspaper article about
your place can be advantageously reproduced for direct
mail. People tend to be skeptical of advertising
literature. But, they are more likely to be impressed
with an article by a travel authority.
Advertisements which have been run in other print media
can be re-printed and used as part of direct mail, This
practice increases efficiency and reduces costs.
If you can accommodate family trade, go after it with
direct mail. Children will soon become prospective
customers. As a matter of fact, catering to women guests
and children is very smart business, because they usually
have the most to say about where the family will vacation
each year. If the kids had a wonderful time at your
resort, chances are they will be most anxious to return.
In your direct mail advertising, point out advantages and
activities for women and children. For example, many
resorts have special equipment and recreational programs
for children. One successful Michigan resort features a
convenient laundry service, which is especially
appreciated by mothers. At vacation's end, the family can
return home with their extra clothing freshly laundered.
The Prospect's Interest
Mailing lists can be obtained from many different
sources:
Previous Guests
Your previous guests comprise your most important mailing
list. Be sure that names and addresses are correct on
registration cards. Then keep these lists in ready-to-use
form, such as addressing plates or on cards.
Multiple-typed address stickers look rather cheap and are
not easily read on the third or fourth copy. It is better
to address each letter individually than to use this
method.
Inquiry Lists
Other good sources of prospects are the inquiry lists of
the tourist promotion association. The type of vacation
desired by the prospect is shown on the inquiry list.
The address of the tourist association serving your area
can be obtained from the Michigan Tourist Council,
Stevens T. Mason Building, Lansing, Michigan, 48926.
Purchased Lists
Mailing lists can be obtained for nearly every type of
potential guests. Lists of sportsmen, people
in various income brackets, retired couples, housewives
and many others are available. Such lists are available
from the R. L. Polk, Co., 431 Howard Street, Detroit
48226.
Professional groups provide another source of business.
For group business from this source, write to Michigan
Association of the Professions, 120 W. Saginaw St., East
Lansing, MI 48823.
Other Sources
Other sources of names are: those who have written you,
but never made reservations; suggestions from your
regular guests, commercial guests, and employees.
Be sure mailing lists are revised and kept up to date.
Observation concerning motels: Transient-type motels
probably have fewer opportunities to use direct mail than
resort or terminal-type motels. Cottage resorts, resort
hotels, and winter sports do more business by direct mail
than motels. However, motels can use direct mail
advertising effectively for special events such as a
bowling tournament or similar activity.
Long distance phone calls (as well as local calls) are
often more valuable than direct mail. This enables you to
select your prospects and do a considerable amount of
business by phone.
Frequency of Mailings
Seldom does a one-mailing campaign produce satisfactory
results. Several mailings should be made---at least once
a year to all previous guests. (For special events, one
mailing may be sufficient, but this is an exception.)
Make seasonal mailings when prospective guests are
planning trips. Some managers mail monthly. Advice from a
direct mail specialist, public relations or advertising
agency, and from experienced managers is valuable.
Mailing suggestions.
When answering inquiries, be sure to send your material
immediately. Answer all mail the same day, if possible.
Send your folder, post card, a personal letter, and
perhaps, a piece of cedar, birch bark, or similar object
symbolic of your place.
A folder of the area describing the wide advantages of
your location is also a most compelling sales piece. Most
vacationers are interested in the attractions beyond the
bounds of your own property. They like side trips to
points of interest such as summer theaters, art works,
historical sites, scenic drives, picnic spots and other
similar attractions.
Newsworthiness (for newsletter)
Another approach to direct mail advertising is use of a
newsletter. The newsletter should have a standard,
attractive format, printed or multilithed. Possible
subjects to be covered in the newsletter are: upcoming
events, seasonal attractions, new facilities and
services, entertainment and recreational opportunities.
Frequency of mailing varies, but four times a year is
probably a good minimum. Much goodwill and effective
selling can be accomplished through this friendly "soft
sell" approach.
Using Tourism Organizations
Referral
Using Tourism Organizations
The primary purpose of a referral organization is to
increase sales among members. Each member refers business
to other hotels and motels in the Association by inviting
guests to make reservations for their next night's stay.
Each member displays a distinctive membership sign which
tells the prospective guest that the motel has met all
requirements for membership. These requirements are
generally recognized as high standards for the industry.
Directories or guides are distributed by these
organizations
Membership in a referral association is often advisable.
Many travelers hesitate to patronize a hotel which is not
a member of a referral or endorsing organization. And,
costs are deductible as advertising expense. If a record
is kept of the business generated by such a membership,
you can make a factual evaluation of its effectiveness.
Examples of such organizations: Best Western Motels,
Friendship Inns, Master Hosts, Quality Motels Inc., and
Superior Motels, Inc.
Endorsing Associations
Endorsing associations helps to promote business through
inspection and approval. A prominent sign is provided for
display. The sign is usually the property of the
endorsing association enabling them to control use of the
signs.
Referral organizations are also endorsing associations,
since they inspect and approve all of the members.
However, endorsing associations are primarily approval
groups, certifying to the pro-prospective guest that the
establishment meets their standards and is operated in a
manner conducive to the comfort, safety, convenience and
satisfaction of the guests. Guides are also published in
large quantities by these groups.
Examples of endorsing associations: Automobile
Association, Emmons Walker, and Dominion Automobile
Association.
Franchising Organizations
In the franchise plan, the local lodging owner agrees to
specific conditions of buildings, grounds, furnishings,
services, and methods of operation prescribed by the
franchisor (franchising company). The franchisee (local
lodging owner) pays a fee for use of the franchise name
and the various services and facilities provided to him
by the franchiser. Those who hold franchises feel that
the increased business from being franchised more than
offsets the additional costs involved.
Examples of well-known franchisors: Holiday Inns of
America, Howard Johnsons Motor Lodges, Quality Motels,
Ramada Inns, TraveLodge, Hilton Inns, Sheraton Motor
Inns, Royal Inns of America, and Downtowner Motor Inns,
Tourist Promotion Associations
Michigan's four regional tourist promotion associations
have as their primary function advertising and publicity.
They attempt to bring more people to Michigan for
vacations and promote travel to their part of the state.
This over-all promotion effort is vital to the success of
the individual business. Potential guests must be
traveling in your area before you can attract them to
your doorstep.
Thus, a prime consideration in advertising is to back
your tourist association. These are:
1. Upper Michigan Tourist Association, P.O. Box 1188,
Iron Mountain, MI 49801
2. West Michigan Tourist Association, 136 Fulton St. E.,
Grand Rapids, MI 49502
http://www.wmta.org/
3. East Michigan Tourist Association, Log Office, Bay
City, MI 48706
4. Southeast Michigan Tourist Association, M-150, The
Executive Plaza, 1206 St. at Howard, Detroit, MI 48226
These regional associations publish a variety of tourist
promotional literature, some which carry advertisements
from businesses within their areas. They also supply
lists of names of prospective guests, obtained from reply
coupons included in newspaper and magazine
advertisements. All season sports and events are promoted
by the tourism associations.
The four Associations publish jointly "Your Guide To
Michigan Hospitality," a complete listing of all
Association members within the state. The Guide is widely
distributed.
In addition to the direct promotional efforts on behalf
of their members, the regional associations are fully
represented in the Michigan Tourism Council, the official
state agency for tourist promotion. This assures each
member representation on the Council, which does national
advertising for Michigan, using state funds.
The Michigan Tourist Council is represented on the
Northern Great Lakes Area Council, a tourist promotional
agency for the Great Lakes States of Michigan, Wisconsin,
Minnesota, and the province of Ontario.
Thus, your membership in a regional tourism association
supports your area, state, and Great Lakes region---
vigorously advertising and publicizing Michigan in the
primary midwest market area, as well as nationally.
Chambers of Commerce
Many community or area Chambers of Commerce do an
outstanding job of tourism promotion and providing travel
information services. Tourists frequently contact the
Chamber of Commerce in vacation areas.
Many C of C's have attractive and well located
information offices which provide referrals to members.
They can be an important source of business. Your
membership helps get travelers into your community and
your place of business.
Trade Associations
Motel and resort trade associations exist to: 1) help get
favorable legislation passed and unfavorable legislation
defeated; 2) assist in educating members run better, more
profitable, businesses; and 3) advertise and promote an
area so that accommodations within that area do a better
business.
The Motel Association of America, Washington, D.C., is
the national trade association serving the motel and
motor hotel industry. It's Michigan affiliate is the
Michigan Motel and Resort Association, Lansing. Local
chapters of the state association are active in many
localities and areas of Michigan.
Hotels in Michigan are represented by the Michigan Hotel
and Motor Hotel Association---the restaurant industry by
the Michigan Restaurant Association.
Dues in the state association are usually graduated
according to the size of the business. Membership in the
state association brings automatic membership in the
national association, with the exception of the National
Restaurant Association.
Travel Agencies
There are some 6,000 authorized travel agents in the
United States and Canada. They procure business for
motels, hotels and resorts just as they do for airlines,
steamships, and railroads. Business directly traced to a
travel agent requires a 10 percent commission. There are
associated benefits from travel agency business, such as
word-of-mouth advertising and personal referrals, which
can be invaluable.
Many accommodations businesses could well use travel
agency business, particularly in the off season. Such
trade can be stimulated by a joint sales venture with
travel agents. Any business generated is mutually
beneficial to both the travel agency and to you.
At the present time, travel agents feel that the
initiative should be taken by the lodging manager.
He should assemble all available information concerning
his place and send or take it to the travel agent (or
agents) that are most likely to develop business for him.
The resort manager must keep the travel agent fully
informed. In order to get and keep satisfied
customers, the travel agency must have up-to-date
information on rates, dates of opening and closing,
latest pictures, literature and anything else that will
help the travel agent sell a person on your place. A
loose-leaf type book is the best selling device.
Business Potential Through Travel Agents
If you have done market analysis, as previously outlined,
you will reach some conclusions concerning good sources
of business.
For example, if you get considerable patronage out of
Detroit and Toledo, use of successful travel agents in
these cities could prove very fruitful. The same would
apply to Chicago or any of the cities---large and small--
--from which you draw trade.
To help you locate travel agents, an "International
Directory of Travel Agents," is published by Ingledue
Travel Publications, 5850 Hollywood Blvd., Hollywood, CA
90028. A similar directory is published by Travel Trade
Publishing Corp., 605 Fifth Ave., New York, NY, 10017.
If you become an allied member of The American Society of
Travel Agents (ASTA), which is highly recommended, you
will receive a copy of their annual roster of members.
The address is:
American Society of Travel Agents, 360 Lexington Ave.,
New York, NY 10017. It is usually better to deal with the
larger agents, since they are more likely to produce
business.
A few more suggestions:
Give special attention, if possible, to each guest sent
to you by a travel agent. A favorable report from the
guest to the travel agent will encourage him to send you
others. Also, you have the possibility of getting that
guest back again if he has been impressed with your
hospitality.
Honor all reservations. Any slip-ups will embarrass your
travel agent and make a permanent non-guest of the person
who was unable to obtain promised accommodations.
If feasible, pay a personal visit to your agent. By
becoming better acquainted with the travel agent, you can
improve understanding of what you have to offer, and
develop confidence in the quality of your resort.
Invite and host your travel agent. He can better
recommend it to his clients if he has actually stayed at
your place. Show him around your community and help him
become acquainted with points of interest which will make
a visit to your area a pleasant experience.
Package Plans
Package plans deserve some special attention. The Package
should consist of room, meals, and at least one other
feature such as a tour of local attractions or night
club, rental of a sailboat, concert tickets or some
similar entertainment or educational-cultural
opportunity. Any necessary expense should be included in
the Plan---such as transfer from airport to the lodge or
similar items. Packages are usually figured out on a "per
person" basis, or "two to a room." An additional charge
for single occupancy is often quoted. Printed
announcements are needed to promote this kind of
business.
There are many special package offers that could be
worked out depending on the market being solicited.
Examples are: a honeymoon package, a second honeymoon,
fishermen's package or weekend package, etc. One way to
market the package is through your travel agents, When an
agent sells a package, he should receive a 10 percent
commission on the total package price.
Some Important Listings
To make bookings through travel agents easy and
convenient, it is advisable to be listed in directories
which are commonly used by travel agencies. These are
listed below:
1. Hotel and Travel Index, One Park Ave., New York, NY
10016
2. International Hotel Directory, 1200 N.W. 23rd Ave.,
Fort Lauderdale, FLA 33311 (Principally Florida & Hawaii)
3. Hotel Tariff International, 2901 Simms St., Hollywood,
FLA 33020 (Principally Florida, Hawaii and New York)
4. Official Hotel and Resort Guide---International Travel
Library, Inc., 3400 Jean Talon West, Montreal 301 Quebec,
Canada
5. Quick Reference Travel Planner, 2000 Clearwater Dr.,
Oak Brook, IL 60521
6. Hotel and Motel Redbook*, 888 Seventh Ave., New York,
NY 10019
* Must be a member of state hotel association, affiliated
with the American Hotel & Motel Association to be listed.
Travel agencies are growing in prominence and importance.
You can increase business through this source by helping
the travel agent send you business.
Gimmick Promotions
There are many other sales devices which may help your
promotion program:
Maps
Litter bags
Shoe shine cloths
Bath mats
Business cards
Blotters
Key chains
Swimming suit bags or wrappers
Powdered detergent for hand laundering
Book matches (regular size is best)
Shower caps and shoes
Rain hats for women
Ash tray souvenirs
Pencils, pens, pen desk sets
Souvenirs of local interest
Courtesy cards
Christmas cards
Calendars (including 4-year version)
Yellow pages of the telephone book
Bumper strips
Matches
Pencils
City map guides
Hosiery mending kits
Mileage memo books
Outdoor thermometers
Plastic stir-forks
Knives (small)
Pocket folders and notebooks
Cafe pack
Guest pack
Sewing kits
Lipettes folders
Emery board folders
Eye glasses cleaner
Snapshots of guests
Comments: The courtesy card is a wallet-sized card
containing the guest's name, typed or written, and a
statement that full courtesies should be shown this
individual. Be sure to include address and phone number
of your business.
Easily carried in a wallet or purse, this card provides a
handy reminder of the name, telephone number and address
of the motel. Christmas cards can be sent to those with
whom you have become well acquainted. These cards provide
a fine opportunity to express appreciation and send
greetings.
A word of warning concerning the use of all of these
forms of advertising: There is no sure-fire formula for
their success. Experimentation will help you find the
best combination of all possible media -that combination
in which all parts supplement and complement each other
to produce maximum results.
Convention and Group Business
Many motels, hotels, and resorts could do more group
business with their present facilities. Others could
develop this type of patronage with some remodeling or
enlarging. There is considerable demand for good meeting
places for small groups - 10 to 40 persons or so, as well
as larger groups of 500-600. These may be representatives
of a small company or sales, engineering, executive, or
similar groups who need a quiet place to conduct their
meetings or seminars. Many motels and resorts appeal to
these groups, because of their location in small
communities or in isolated places, free from the
competition of theaters, places to shop, and night spots.
There is no definite line between getting convention
business and keeping it. Again, word-of-mouth is the best
method of selling. Good location, site, friendly
atmosphere and delicious food all add up to satisfied
guests. They will do most of your selling.
Treat every guest as a V.I.P., for he might lead you to
group business. Regardless of how guests look when they
enter your establishment, treat them as V.I.P.'s. Be
enthusiastic. It's catching, and it sells.
Today, you need recreational advantages to draw
conventions and group businesses. These include such
activities as bowling, good fishing sites, swimming,
entertainment, local tours, and similar features nearby.
Transportation to your place is also very important--
-good air transportation, train and bus schedules.
Prospective guests want to know what type of plan you
have---American or European. It is well to have both
plans and a variety within each plan. Have package plans
for bowling, golf, or boating. Then you can best satisfy
the needs of whatever group may be interested in your
place.
Meeting Facilities Needed
Meeting rooms need to be carefully planned to provide a
suitable environment for group use. Suggested
requirements should include:
- 10 foot ceilings
- Windows above eye level
- Adequate efficient lighting
- Lighting
- Controlled temperature
- Spotlights attached to walls
- Effective sound control
- Peg board walls for exhibits
- Outlets for microphones
- Controlled temperature
- Good ventilation
- Air conditioning
Ideally arranged meeting rooms provide access off a hall,
so that no person has to go through one room to reach
another. This also facilitates catering service.
In addition to the above requirements, also consider the
following important facilities:
- Carpeted floors
- Accessible light switches
- Comfortable chairs
- Tables set with cloths
- Ice water and ash trays
Such excellent facilities demand competent and readily
available personal services. Train your staff to be alert
to the group's needs. For example, coffee service should
be set up about 15 minutes ahead of schedule, in case the
group breaks up early.
Selling Convention and Group Business
Initially, management must view the sales problem in
convention business as a problem-solving service for the
organization being solicited: You are not selling your
facilities to the group---you are selling the ability-of
your establishment to solve their meeting problems.
The sales person mentally solves the prospect's problems
before actually elaborating on the facilities he can
provide. Only when he has completed this mental process,
does he describe the many advantages of his place. The
sales person will have little problem selling what he has
to offer when he approaches the prospect in this manner.
For even more effective sales strategy and service,
employ motel or resort sales representatives who can
assist the convention chairman promote and conduct the
convention. The sales representative acts as a
consultant, suggesting an agenda, names of speakers,
conduct of various parts of the convention, and how to
promote attendance, etc.
The above procedure can provide a service that will help
encourage the group to return.
Aids In Selling
1. Provide an attractive Sales Display Kit. It is
essential in selling group business. Of loose-
leaf construction, this kit contains large plastic
envelopes for displaying information needed
by a group chairman.
Obviously, the sales person must be thoroughly familiar
with all conceivable aspects of your accommodations.
The sales kit should include diagrams of meeting rooms,
pictures, lists of services, recreational advantages,
games, menus, and various dining arrangements, etc.
Prices should be varied to suit the needs of various
groups.
2. Give brochures to the prospect, to be placed in his
files for future reference.
3. Offer a complimentary luncheon to the prospect, or if
he represents a large group, perhaps a week-end at your
place might be in order. Acquaint him with your
facilities so that he can better visualize holding his
meeting there.
4. Plan complete and vigorous follow-up of sales contacts
or inquiries. If the first letter receives no reply,
telephone the prospect and follow-up with another letter
confirming what was said on the phone. This is good
business. It impresses the prospect with your
business-like methods and enthusiasm for what you offer.
5. Prepare reminders concerning conventions: About 90
percent of those who plan conventions don't know exactly
what they want. You have to sell your facilities as a
place where their meeting problems can be solved. Keep in
mind the group's need's for:
- Registration desk
- Ticket collection
- Photographers
- Blackboards
- Easels
- Lecterns
- Motion picture machines
- Headquarters room
- Slide projectors
- P.A. system
- Lighting
- Exhibits
- Favors
- Cards
- Cigarettes and cigars
- Security guards
In urban centers, facilities can be successfully rented
for local meetings and food business. For this kind of
business:
1. Conduct an organized and well planned sales campaign.
2. Create an effective Sales Display Kit.
3. Have an attractive printed brochure which can be left
with the prospect for his file.
4. Select prospects from among: Businesses and offices;
Stores; Factories; Organizations, such as clubs,
fraternal organizations, labor unions; Association
representatives; Sales offices of large concerns.
In short, any business or social organization might need
your meeting rooms, guest rooms, food services, party
facilities, etc.
5. For your "sales blitz," hire bright local boys (or
possibly young women). College students are a possibility
if located nearby. They must be able to provide full
answers to questions.
6. Actual selling is limited to convincing the
high-ranking officers or managers of each firm of the
advantages of holding meetings or other functions at your
place, by using the problem-solving technique previously
described.
7. A follow-up letter in two or three days indicates a
continuing interest in the prospect.
8. Repeat the 'blitz' about three times each year,
calling on those who have not responded to the sales
efforts.
The effects of this effort will probably not be
immediate, but there should be a satisfactory response
within a month or so.
PUBLIC RELATIONS SUPPORT FOR MARKETING
Favorable acceptance of your business by the public is of
utmost importance. No business is more concerned with
human relations than the public hospitality industry--
-motels, resorts, hotels and restaurants. It is essential
to have good public relations outside your walls, as well
as smooth and harmonious relations between managers and
employees.
Public relations may be defined as an attitude of
management which places first priority on the public
interest when making any management decisions. In other
words, the manager of the business tries first to produce
satisfactions for his public--- guests, employees,
owners, neighbors and the whole community. Public
relations is a "social conscience" permeating the entire
organization.
Thus, the lodging manager must create conditions within
the business which are conducive to social well being and
then vigorously sell these conditions to the public. Try
to tell everyone what a fine lodging place is being
operated in their community.
Achieving Good Public Relations
All of the public interests must be served. Serving one
group of the public at the expense of another does not
produce desirable public relations. Good morals are the
basis of sound public relations. Each individual business
manager and the business he represents must become
respected and earn the confidence of his community. There
is no difference between his personal reputation and the
reputation of his business.
Favorable public relations with employees emphasizes
respect for personality and human dignity. Workers need
to have opportunity for self-expression, to help make
decisions affecting their interests, and to have a
reasonable amount of security.
Your employees have a powerful influence on the public,
as they represent you in the public's eye. Teach your
employees to always be courteous, respectful and helpful
to guests. Little things make a big difference and the
attitude of your employees can make or break good public
relations.
Before formulating any type of management policy,
consider possible public reaction. For example, if you
are thinking about raising your rates, ask yourself: How
will this affect my present clientele? New guests? My
future market for business? New or untried markets?
Likewise, you need to know public attitude toward your
present policies. Ask some of your guests as a sample.
You might find that they think your rates are too low for
the value they receive!
Communication is the lifeblood of good public relations.
In other words, you must first do good things and then
tell the public about them.
The public must have factual information about your
business. False information, rumors, and gossip are
detrimental. Don't fail to relate the actual conditions
as they exist. People are curious and want to know what's
going on in their community.
Suppose you, as manager, are to participate in an
educational short course at Michigan State University. An
item about this in your local newspaper will help build
good will and respect toward you and your business, Or,
you might serve as host to a Community Chest group with a
lawn party. This could be covered by the press with a
story, and possibly, pictures. There are many other
possibilities for good public relations through personal
communication, radio, and television.
Developing a Favorable Public Image
In a sense, good public relations is good will. The best
public relations specialist in the world can't do a thing
for you if you don't first instigate good things.
Public service is something you give your time, talents,
your hospitality---and you reap the rewards. Both
advertising and public relations can pay for themselves
many times over. If you are a small organization and
can't hire public relations help, at least seek their
advice.
If you are going to attempt a do-it-yourself program,
start with a public service contribution as mentioned
above. Possibilities are: party for retarded children, a
day for the elderly or a similar good cause. If you are a
good host, hold a press party whenever construction,
expansion, or other news-worthy events occur.
Sometimes an owner finds that his business has a poor
reputation. He needs a positive, favorable public
relations program to wipe out the unfavorable impression.
A careful review of the procedures outlined in this
section should suggest many ways for achieving good
public relations.
You need continuing good public relations over the years.
There are countless ways to get publicity, but don't
overdo it. Three rules should be remembered---planning,
propriety, and a sense of rules.
Publicity is just a part of public relations. What you do
and how you do it is most important.
High ethical standards, cleanliness, maintenance, and a
program of accident prevention in your lodging business
can help assure a good reputation. Carelessness in these
areas can undo the work of many years and the large sum
of money invested in the business.
The End Objective
An imaginative and vigorous public relations program will
help establish your business as a valuable and wholesome
influence in the community. The public and your guests
will recognize your business as one which provides the
best services and products for rates and prices charged.
Where To Get More Information
Catalogue of Books, Bulletins and Pamphlets
Catalogues and lists of books and films useful to the
lodging manager:
The Educational Materials Center, National Restaurant
Assn,, 1530 N. Lake Shore Dr., Chicago, Ill. 60610.
William C. Brown Publishing Co., 135 S. Locust St.,
Dubuque, Iowa 52001.
Library List, American Hotel & Motel Association, 888
Seventh Ave., New York, N.Y. 10019.
Good Books for Good Managers, School of Hotel, Restaurant
and Institutional Management, Eppley Center, Michigan
State University, East Lansing, Mich. 48823.
Hayden, Rider, & Ahrens Books, Hayden Book Companies, 116
West 14th St., New York, N.Y. 10011.
Irwin Books in Economics and Business, Richard D. Irwin,
Inc., Homewood, IL 60430.
Books for Hotels, Motels, Restaurants, John Willy, Inc.,
1948 Ridge Ave., Evanston, IL 60201.
Educational Institute, AH&MA, Kellogg Center, M.S.U.,
East Lansing, MI 48823.
Trade Journals
Cornell Quarterly, School of Hotel Administration,
Cornell University, Ithaca, NY 14850.
Hospitality, Patterson Publishing Co., 5 South Wabash
Ave., Chicago, IL 60603.
Hotel & Motel Management, Clissold Publishing Co., 105 W.
Adams St., Chicago, IL 60603.
Resort Management, Resort Management, Inc., P.O. Box
4169,1509 Madison Ave., Memphis, TN 38104.
Sales Management, Sales Management, Inc., 630 Third Ave.,
New York, NY 10017.
Motel/Motor Inn Journal, 306 E. Adams Ave., Temple, TX
76502.
World Convention Dates, Hendrickson Publishing Co., 70
Hemstead Ave., Hemstead, L.I., NY 11550.
Referral, Endorsing, and Franchising Organizations
Directory of Hotel and Motel Systems, American Hotel and
Motel Association, 888 Seventh Ave., New York, NY 10019.
Published annually in July.
Trade Associations
Michigan Hotel and Motor & Resort Association, 6105 W.
St. Joseph Hwy., Suite 204, Lansing, MI 48917,
Phone:(517) 323-1818, FAX:(517) 323-1994
Michigan Restaurant Association, 225 West Washtenaw,
Lansing, MI 48933, Phone:(517) 482-5244,FAX:(517)
482-7663.
National Restaurant Association, 1530 North Lake Shore
Dr., Chicago, IL