©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

CHAPTER

CHAPTER

13

Marketing, Human Resources, and Culture

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Defining Marketing

• Marketing…– Finding out what guests’ wants and needs are– Providing the customer with solutions– “Creating customers and keeping them coming

back”

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Marketing Orientation

• Marketing Orientation…– Customer needs– Understanding customers– Marketing research– Frequent reviews– Long-term planning

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Marketing Orientation

• Marketing Orientation (cont.)…– Customers’ perceptions– Interdepartmental cooperation– Cooperation with complimentary organizations– Change is inevitable– The scope of business is broadly set– Measurement and evaluation

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Environmental Scanning

• Scanning…– Economic– Social– Political– Technological

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Market Planning

• Planning…– Market assessment

• Is there a need for a product– Market demand

• Who are the users and how many– Competitor analysis

• Who are they• What are they doing

? ?

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Positioning

• Positioning…– Establishing a distinctive place in the market

and in the minds of potential guests– Examples

• Four Seasons• Motel 6

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Marketing Goals and Objectives

• Marketing…– Specific goals for total enterprise and

departments– Example

• Increase occupancy by 8%

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Marketing Mix

• Marketing Mix…– Place– Product– Price– Promotion

– Partnership– Packaging– Programming– People

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Place

• Place…– Physical Plant– “Location, Location, Location”

• Ellsworth Statler– Atmosphere

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Product

• Product…– Must meet the customer’s needs and wants– Example

• Courtyard Inns by Marriott• http://www.courtyard.com

– Feedback from customers is critical– Product life cycle

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Price

• Price…– Price = Value– Guests perception of equity– Determined in two ways

• Comparative approach• Cost-plus approach $$$

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Promotion

• Promotion…– Advertising– Sales promotions– Merchandising– Personal selling– Public relations

A New Year’s Eve Party!

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Partnerships and Packaging

• Partnerships…– Two or more hospitality/tourism organizations

come together• Packaging…

– Combine items or activities and sell them as a group

– “Happy Meals” by McDonalds

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Programming and People

• Programming…– Camp Hyatt

• http://www.hyatt.com– Disney Institute

• http://www.disney.com

• People…– “Yes I Can” by Radisson– Empowering employees

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Sales

• Sales…– Different than marketing

• Focus is on product or service for sale– Sales department is organized based on

organization– Sales blitzes

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

What is Human Resource Management?

• Human Resources…– Attracting– Selecting– Orienting – Training– Developing– Evaluating

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Job Descriptions

• Descriptions…– Based on task analysis– Listing of the activities and outcomes expected

of a person performing a job– Can be used as a legal document– Lists specific knowledge, qualifications, and

skills

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Productivity Standards

• Standards…– Sales divided by labor costs– Example

• Sales of $55,000• Labor costs of $11,000• Productivity equals 5

– For every dollar in labor– $5 in sales was generated

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Recruitment and Selection

• Recruitment and Selection…– Internal promotion– Employee referrals– Applicant files– Transfers within the company– Advertising– Colleges and Universities– Government-sponsored employment services

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

InterviewingWhat They Are Looking For?

• Interviewing…– Dress– Mannerisms– Attentiveness– Attitude– Interest– Answers to questions

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

InterviewingWhat Should You Do?

• Interviewing (cont.)…– Dress in a businesslike manner– Arrive early and smile – Stress your strengths– Do homework on the company– Ask appropriate questions– Write a thank-you note

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Selection

• Selection…– Several interviews– Testing– References– Medical examination

• Drug screening test

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Orientation

• Orientation…– Corporation’s history– Benefits– Safety and fire prevention– Introduction of organizational chart– Rules and procedures

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Training

• Training…– Apprentice training– Simulation training– Certification training– On-the-job training– Off-the-job training

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Performance Appraisal

• Appraisal…– Comparison of employee’s work with standards– Positive attributes

• Feedback to employees• Use as personal development plan• Establishing rationale for promotion/raise• Helping establish objectives for training

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Performance Appraisal

• Appraisal (cont.)…– Common distortions

• Recent behavior influence• Halo effect• Like-me syndrome

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Compensation

• Compensation…– Total reward system including wages and

benefits– Wages = hourly workers– Salaries = management/supervisor positions– Fair Labor Standards Act (FLSA)

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Employee Retention

• Retention…– Turnover equals the number of workers

replaced in a given time period by the average number of employees needed to run the business

– Replacement costs = $2,000-$5,000 per person– Industry turnover is better than 100% per year

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Issues in Human Resources

• Issues…– Equal Employment Opportunity (EEO) – Sexual harassment– ADA– Cultural diversity

©2004 Pearson Education, Inc.Upper Saddle River, New Jersey 07458

Introduction to Hospitality Management, First EditionJohn Walker

Trends in Marketing and Human Resources

• Trends…– Market orientation of human resources– Proactive in employment and staffing– Use of the Internet– Use of structured interviews– Relationship marketing– Partnering