Marketing for hospitality and tourism 7th global edition by kotler makens Marketing for hospitality and tourism 7th global edition by kotler makens Marketing for hospitality and tourism 7th global edition by kotler makens Marketing for hospitality and tourism 7th global edition by kotler makens Marketing for hospitality and tourism 7th global edition by kotler makens Marketing for hospitality and tourism 7th global edition by kotler makens
Marketing for Hospitality and Tourism Philip Kotler • John T Bowen • James C Makens • Seyhmus Baloglu seventh edition Global EDITION Vice President, Editorial Director: Andrew Gilfillan Executive Editor: Daryl Fox Editorial Assistant: Lara Dimmick Program Management Team Lead: Laura Weaver Program Manager: Susan Watkins Project Management Team Lead: Bryan Pirrmann Project Manager: Maria Reyes Project Manager, Global Edition: Sudipto Roy Senior Acquisitions Editor, Global Edition: Sandhya Ghoshal Project Editor, Global Edition: Rahul Arora Senior Project Editor, Global Edition: Daniel Luiz Manager, Media Production, Global Edition: M Vikram Kumar Senior Manufacturing Controller, Production, Global Edition: Trudy Kimber Senior Art Director: Diane Six Cover Designer: Lumina Datamatics, Inc Vice President of Sales and Marketing: David Gesell Senior Product Marketing Manager: Darcy Betts Field Marketing Manager: Thomas Hayward Senior Marketing Coordinator: Les Roberts Digital Studio Project Manager: Leslie Brado Manufacturing Specialist: Deidra Smith Vendor Project Manager: Melissa Sacco, Lumina Datamatics, Inc Full-Service Project Management and Composition: Revathi Viswanathan, Lumina Datamatics, Inc Cover Art: © Banana Republic images / Shutterstock Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2017 The rights of Philip Kotler, John T Bowen, James C Makens, and Seyhmus Baloglu to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 Authorized adaptation from the United States edition, entitled Marketing for Hospitality and Tourism, 7th edition, ISBN 978-013-415192-2, by Philip Kotler, John T Bowen, James C Makens, and Seyhmus Baloglu, published by Pearson Education © 2017 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners.The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners ISBN 10: 1-292-15615-5 ISBN 13: 978-1-292-15615-6 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library 10 14 13 12 11 10 Typeset in Melior Com by Integra Printed and bound by Vivar in Malaysia This book is dedicated to Nancy, my wife and best friend, with love P K With love to my wife, Toni, and children, Casey and Kelly J T B To my wife Kay and to Lynn Ebert whose assistance was greatly appreciated. J C M To my wife, Zerrin, and our two sons, Derin and Deniz, with love S B Brief Contents Part I Understanding the Hospitality and Tourism Marketing Process 23 Introduction: Marketing for Hospitality and Tourism 25 Service Characteristics of Hospitality and Tourism Marketing 55 The Role of Marketing in Strategic Planning 77 Part II Developing Hospitality and Tourism Marketing Opportunities and Strategies 105 The Marketing Environment 107 Managing Customer Information to Gain Customer Insights 134 Consumer Markets and Consumer Buying Behavior 175 Organizational Buyer Behavior 201 Customer-Driven Marketing Strategy: Creating Value for Target Customers 223 Part III Developing the Hospitality and Tourism Marketing Mix 249 Designing and Managing Products and Brands: Building Customer Value 251 10 Internal Marketing 289 11 Pricing: Understanding and Capturing Customer Value 313 12 Distribution Channels Delivering Customer Value 347 Brief Contents 5 13 Engaging Customers and Communicating Customer Value and Advertising 373 14 Promoting Products: Public Relations and Sales Promotions 408 15 Professional Sales 436 Part 16 Direct, Online, Social Media, and Mobile Marketing 473 IV Managing Hospitality and Tourism Marketing 505 17 Destination Marketing 507 18 Next Year’s Marketing Plan 549 Contents To the Student 14 Preface 18 About the Authors 21 I Part Understanding the Hospitality and Tourism Marketing Process 23 Introduction: Marketing for Hospitality and Tourism 25 YOUR PASSPORT TO SUCCESS 27 CUSTOMER ORIENTATION 28 WHAT IS HOSPITALITY AND TOURISM MARKETING? 29 MARKETING IN THE HOSPITALITY INDUSTRY 30 Importance of Marketing 30 Tourism Marketing 30 Definition of Marketing 31 The Marketing Process 31 UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS 31 Customer Needs, Wants, and Demands 31 Market Offerings: Tangible Products, Services, and Experiences 32 Customer Value and Satisfaction 33 Exchanges and Relationships 34 Markets 34 DESIGNING CUSTOMER VALUE-DRIVEN MARKETING STRATEGY 34 Selecting Customers to Serve 35 MARKETING HIGHLIGHT: JET BLUE DELIGHTS ITS CUSTOMERS 35 Marketing Management Orientations 36 PREPARING AN INTEGRATED MARKETING PLAN 38 BUILDING CUSTOMER RELATIONSHIPS 38 Customer Relationship Management 38 Engaging Customers 40 Partner Relationship Management 42 CAPTURING VALUE FROM CUSTOMERS 42 Customer Loyalty and Retention 42 Growing Share of Customer 43 Building Customer Equity 43 What Is Customer Equity? 43 Building the Right Relationships with the Right Customers 44 THE CHANGING MARKETING LANDSCAPE 44 The Digital Age: Online, Mobile, and Social Media Marketing 44 The Changing Economic Environment 46 Rapid Globalization 47 Sustainable Marketing—The Call for More Environmental and Social Responsibility 47 Co-Creation 48 The Sharing Economy 48 MARKETING’S FUTURE 49 CHAPTER REVIEW 49 DISCUSSION QUESTIONS 51 EXPERIENTIAL EXERCISES 51 INTERNET EXERCISES 52 REFERENCES 52 Service Characteristics of Hospitality and Tourism Marketing 55 THE SERVICE CULTURE 56 CHARACTERISTICS OF SERVICE MARKETING 57 Intangibility 57 Physical Evidence 58 Inseparability 58 Variability 59 Perishability 60 SERVICE MANAGEMENT CONCEPTS FOR THE HOSPITALITY INDUSTRY 61 The Service Profit Chain 61 Three Types of Marketing 61 MANAGEMENT STRATEGIES FOR SERVICE BUSINESSES 62 Managing Service Differentiation 62 Managing Service Quality 62 MARKETING HIGHLIGHT: JETBLUE, SOUTHWEST, AND CIRQUE DU SOLEIL PROVIDE THREE EXAMPLES OF SERVICE DIFFERENTIATION 63 Managing Service Productivity 64 Resolving Customer Complaints 64 MARKETING HIGHLIGHT: RECOMMENDATIONS FOR IMPROVING SERVICE QUALITY 65 Managing Employees as Part of the Product 66 Managing Perceived Risk 67 Managing Capacity and Demand 68 CHAPTER REVIEW 73 DISCUSSION QUESTIONS 74 EXPERIENTIAL EXERCISES 74 INTERNET EXERCISES 75 REFERENCES 75 Contents 7 The Role of Marketing in Strategic Planning 77 NATURE OF HIGH-PERFORMANCE BUSINESS 79 Stakeholders 79 Processes 80 Resources 80 Organization 81 CORPORATE STRATEGIC PLANNING: DEFINING MARKETING’S ROLE 81 Defining the Corporate Mission 82 Setting Company Objectives and Goals 84 Designing the Business Portfolio 85 MARKETING HIGHLIGHT: STARBUCKS COFFEE: WHERE GROWTH IS REALLY PERKING 87 PLANNING MARKETING: PARTNERING TO BUILD CUSTOMER RELATIONSHIPS 90 Partnering with Other Company Departments 90 Partnering with Others in the Marketing System 90 MARKETING STRATEGY AND THE MARKETING MIX 91 Customer Value-Driven Marketing Strategy 92 Developing an Integrated Marketing Mix 93 MANAGING THE MARKETING EFFORT 94 Marketing Analysis 94 Goal Formulation 97 Marketing Planning 98 Implementation 98 Feedback and Control 98 Measuring and Managing Return on Marketing Investment 99 CHAPTER REVIEW 100 DISCUSSION QUESTIONS 101 EXPERIENTIAL EXERCISES 102 INTERNET EXERCISES 102 REFERENCES 102 II Part Developing Hospitality and Tourism Marketing Opportunities and Strategies 105 The Marketing Environment 107 THE COMPANY’S MICROENVIRONMENT 109 The Company 109 Existing Competitors 110 Suppliers 111 Marketing Intermediaries 112 Customers 114 Publics 114 THE COMPANY’S MACROENVIRONMENT 115 Competitors 115 MARKETING HIGHLIGHT: Cape town tourism destination marketing—the use of social media 116 Demographic Environment 117 The Changing American Family 121 Economic Environment 122 Natural Environment 123 Technological Environment 124 Political Environment 125 Cultural Environment 126 LINKED ENVIRONMENTAL FACTORS 128 RESPONDING TO THE MARKETING ENVIRONMENT 129 Environmental Scanning 129 CHAPTER REVIEW 130 DISCUSSION QUESTIONS 130 EXPERIENTIAL EXERCISES 131 INTERNET EXERCISES 131 REFERENCES 131 Managing Customer Information to Gain Customer Insights 134 MARKETING INFORMATION AND CUSTOMER INSIGHTS 137 Marketing Information and Today’s “Big Data” 137 Managing Marketing Information 138 THE MARKETING INFORMATION SYSTEM 138 Assessing Information Needs 139 Developing Marketing Information 140 MARKETING RESEARCH 148 Defining the Problem and Research Objectives 149 Developing the Research Plan 150 MARKETING HIGHLIGHT: ETHNOGRAPHIC RESEARCH: WATCHING WHAT CONSUMERS REALLY DO 152 MARKETING HIGHLIGHT: ZMET: GETTING INTO THE HEADS OF CONSUMERS 157 MARKETING HIGHLIGHT: PROS AND CONS OF ONLINE RESEARCH 159 MARKETING HIGHLIGHT: A “QUESTIONABLE” QUESTIONNAIRE 162 Implementing the Research Plan 165 Interpreting and Reporting the Findings 165 MARKETING HIGHLIGHT: RESEARCH PROBLEM AREAS 167 MARKETING HIGHLIGHT: HSMAI’S KNOWLEDGE CENTER: A GREAT SOURCE OF MARKETING INFORMATION 168 INTERNATIONAL MARKETING RESEARCH 168 MARKETING RESEARCH IN SMALLER ORGANIZATIONS 169 CHAPTER REVIEW 170 DISCUSSION QUESTIONS 171 EXPERIENTIAL EXERCISES 172 INTERNET EXERCISES 172 REFERENCES 172 8 Contents Consumer Markets and Consumer Buying Behavior 175 A MODEL OF CONSUMER BEHAVIOR 177 PERSONAL CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR 178 Cultural Factors 178 Social Factors 181 Personal Factors 184 Psychological Factors 187 MARKETING HIGHLIGHT: SENSORY MARKETING—A POWERFUL TOOL FOR HOSPITALITY BUSINESSES 189 THE BUYER DECISION PROCESS 191 Need Recognition 191 Information Search 192 Evaluation of Alternatives 193 Purchase Decision 194 Postpurchase Behavior 195 MARKETING HIGHLIGHT: UNIQUE ASPECTS OF HOSPITALITY AND TRAVEL CONSUMERS 195 CHAPTER REVIEW 196 DISCUSSION QUESTIONS 197 EXPERIENTIAL EXERCISE 198 INTERNET EXERCISES 198 REFERENCES 198 Organizational Buyer Behavior 201 THE ORGANIZATIONAL BUYING PROCESS 203 Market Structure and Demand 203 Types of Decisions and the Decision Process 203 PARTICIPANTS IN THE ORGANIZATIONAL BUYING PROCESS 204 Special Importance of International Companies 205 MAJOR INFLUENCES ON ORGANIZATIONAL BUYERS 205 Environmental Factors 206 Organizational Factors 206 Interpersonal Factors 206 Individual Factors 206 ORGANIZATIONAL BUYING DECISIONS 206 1. Problem Recognition 207 2. General Need Description 207 3. Product Specification 207 4. Supplier Search 207 5. Proposal Solicitations 208 6. Supplier Selection 208 7. Order-Routine Specification 208 8. Performance Review 208 GROUP MARKETS 209 Conventions 209 Convention Bureaus 210 Association Meetings 210 Corporate Meetings 211 Retreats 212 Small Groups 212 Incentive Travel 213 SMERFs 214 MARKETING HIGHLIGHT: GREEN MEETINGS—green meetings in asia’s greenest city 214 Segmentation of Group Markets by Purpose of the Meeting 215 Restaurants as a Meeting Venue 215 DEALING WITH MEETING PLANNERS 216 Career Opportunities 217 THE CORPORATE ACCOUNT AND CORPORATE TRAVEL MANAGER 218 Wedding Planners 219 Other Planners 219 CHAPTER REVIEW 219 DISCUSSION QUESTIONS 220 EXPERIENTIAL EXERCISE 220 INTERNET EXERCISE 220 REFERENCES 221 Customer-Driven Marketing Strategy: Creating Value for Target Customers 223 MARKETS 224 MARKET SEGMENTATION 225 Geographic Segmentation 226 Demographic Segmentation 227 MARKETING HIGHLIGHT: TARGETING FAMILIES BY TARGETING KIDS 228 Income Segmentation 228 Psychographic Segmentation 229 MARKETING HIGHLIGHT: W HOTELS: A LIFESTYLE HOTEL 230 Behavioral Segmentation 231 MARKETING HIGHLIGHT: THE VFR TRAVELER SEGMENT 231 Using Multiple Segmentation Bases 233 Requirements for Effective Segmentation 233 MARKET TARGETING 234 Evaluating Market Segments 234 Selecting Market Segments 235 Choosing a Market-Coverage Strategy 237 MARKET POSITIONING 238 Positioning Strategies 238 Choosing and Implementing a Positioning Strategy 239 Differentiating Competitive Advantages 239 Choosing the Right Competitive Advantages 242 Selecting an Overall Positioning Strategy 243 Communicating and Delivering the Chosen Position 244 Positioning Measurement: Perceptual Mapping 244 CHAPTER REVIEW 245 DISCUSSION QUESTIONS 246 EXPERIENTIAL EXERCISE 246 INTERNET EXERCISE 246 REFERENCES 247 Contents 9 III Part Developing the Hospitality and Tourism Marketing Value-Driven Strategy and Mix 249 Designing and Managing Products and Brands: Building Customer Value 251 WHAT IS A PRODUCT? 254 PRODUCT LEVELS 255 Core Products 255 Facilitating Products 255 Supporting Products 256 Augmented Product 257 BRANDING STRATEGY 262 Building Strong Brands 262 Brand Equity 262 Brand Positioning 263 Brand Name Selection 264 Leveraging Brands 265 Brand Portfolios 266 MARKETING HIGHLIGHT: tourism new zealand’s china toolkit: helping businesses to serve an emerging tourism market 268 Managing Brands 268 THE NEW-PRODUCT DEVELOPMENT 269 Idea Generation 270 Idea Screening 272 Concept Development and Testing 272 Marketing Strategy 274 Business Analysis 274 Product Development 274 Test Marketing 275 Commercialization 275 PRODUCT DEVELOPMENT THROUGH ACQUISITION 276 PRODUCT LIFE-CYCLE STRATEGIES 276 Introduction Stage 277 Growth Stage 278 Maturity Stage 278 Decline Stage 280 Product Deletion 280 INTERNATIONAL PRODUCT AND SERVICE MARKETING 282 CHAPTER REVIEW 283 DISCUSSION QUESTIONS 284 EXPERIENTIAL EXERCISES 284 INTERNET EXERCISE 284 REFERENCES 285 10 Internal Marketing 289 INTERNAL MARKETING 290 Post Face-to-Face Guest Relations 291 MARKETING HIGHLIGHT: PINEHURST RESORT & COUNTRY CLUB “DO WHAT’S RIGHT” 291 THE INTERNAL MARKETING PROCESS 292 Establishment of a Service Culture 293 Weak Service Culture Compared to a Strong Service Culture 294 Development of a Marketing Approach to Human Resources Management 297 Dissemination of Marketing Information to Employees 305 MARKETING HIGHLIGHT: INTERNAL MARKETING IN ACTION: LEWIS HOTELS 306 Employee Involvement in Uniform Selection 308 CHAPTER REVIEW 309 DISCUSSION QUESTIONS 310 EXPERIENTIAL EXERCISES 310 INTERNET EXERCISE 310 REFERENCES 310 11 Pricing: Understanding and Capturing Customer Value 313 PRICE 315 FACTORS TO CONSIDER WHEN SETTING PRICES 315 Internal Factors Affecting Pricing Decisions 316 External Factors Affecting Pricing Decisions 319 Competitors’ Prices and Offers 325 GENERAL PRICING APPROACHES 326 Cost-Based Pricing 326 Break-Even Analysis and Target Profit Pricing 327 Value-Based Pricing 328 Competition-Based Pricing 329 PRICING STRATEGIES 329 New-Product Pricing Strategies 329 Existing-Product Pricing Strategies 330 REVENUE MANAGEMENT 333 MARKETING HIGHLIGHT: SEGMENTED PRICING: THE RIGHT PRODUCT TO THE RIGHT CUSTOMER AT THE RIGHT TIME FOR THE RIGHT PRICE 333 Dynamic Pricing 336 BAR Pricing 337 Rate Parity 337 Nonuse of Revenue Management 337 Overbooking 337 PSYCHOLOGICAL PRICING 338 Price Endings 338 Promotional Pricing 339 Value Pricing—Low Price Approach 339 MARKETING HIGHLIGHT: RYANAIR USES VALUE PRICING TO ATTRACT CUSTOMERS AND GAINS REVENUE FROM EXTRA SALES 340 PRICE CHANGES 340 Initiating Price Changes 340 Responding to Price Changes 342 CHAPTER REVIEW 342 DISCUSSION QUESTIONS 344 EXPERIENTIAL EXERCISE 344 INTERNET EXERCISE 345 REFERENCES 345 666 Index Case studies (Continued) Hunt Room: Change the Concept or Just the Decor?, 606–607 In-N-Out Burger: Customer Value the Old-Fashioned Way, 607–610 International Travel Agency, 641–642 IRTRA–Recreational Park XETULUL, 649–651 JetBlue Airlines: Delighting Customers Through Happy Jetting, 603–605 Mayo Clinic, 618 Pricing Almost Destroys and Then Saves a Local Restaurant, 627–628 Ritz-Carlton, 620–621 Superior Hotels, 642–644 Tropicana Fishing Lodge, 635–637 W Hotels, 230 Witchery by the Castle, 614–617 Zipcar: Itar: Itw Travel, InItIt about Urban Life, 593–596 Casinos as attractions, 526 Cass, Peter, 549 Cast members, 298, 300 Caterair International Corporation, 557 Cathy, Dan, 429 Causal research, 149 Cause-related marketing, 128 Cause-related promotions, 432 Channel behavior, organization and, 360–364 alliances, 363–364 franchising, 362–364 horizontal marketing systems (HMS), 364 multichannel marketing distribution, 364 vertical marketing system (VMS), 361–362 Channel conflict, 360 Channel levels (distribution), 351 Channel members attracting members, 366 control criteria, 366–367 customer needs, 364 economic feasibility of, 366 marketing objectives and, 415 responsibilities of, 367 selection of, 364–367 Chen May Yee, 619 Cheshire’s Best Kept Stations (case study), 422 Chez Panisse (restaurant), 240 Chick-fil-A, 429 Chipotle Mexican Grill (restaurant), 25–27, 240, 316 Choice Hotels, 555 Christensen, Glenn L., 157 Chuck E Cheese (restaurant), 236 Chuck E Cheese CEC Entertainment: “Where a Kid Can Be a Kid” (case study), 633–634 CiCi Pizza, 560 Cirque du Soleil, 63 Citizen-action publics, 114 Classical management style, 82 Closed-end questions, 161, 163 Closing (sales), 461–462 Club Med, 571, 643 Cluster marketing, 568 Cluster (area) sample, 161 Co-branding, 265 Coca-Cola’s “Mirage”, 378 Cocktail Cruises, 572 Co-creation, 48 Cognitive dissonance, 195 Columbus Dispatch, 400 Comarow, Avery, 619 Combination-structured sales force, 444–445 Comment cards, 549 Commercial sources of information, 192 Commercialization of new products, 275–276 Commissioned reps, 449 Communication channels, 383–385 nonpersonal channels, 385 personal channels, 383–384 selection of, 383–385 Communications, 93 See also Integrated marketing communications (IMC) awareness, 381 campaign evaluation, 392 channel selection, 383–385 conviction, 381–382 customer-contact employees, 305–308 customers and, 244, 373–402 effectiveness in, 402 feedback, collecting, 386–387 knowledge, 381 liking, 381 marketing plan, 566 measuring the results of, 402 message content, 382 message design, 382–383 message format, 383 message source, 385–386 message structure, 383 objective of, 380–382 preference, 381 purchase, 382 target audience, 380 total marketing communications budget, 387–388 tourist markets and, 536–540 Communications technology, 205, 237 Community cooperation (tourism), 518 Company, 109–110 Company Case Spirit Airlines: The Lowest Possible Price—At All Costs, 628–631 Company objectives and goals, 82–84, 235 Company records, 139 Company resources, 235 Comparative advantage, 513 Comparison advertising, 393 Compensation, sales force, 462–463 Competition-based pricing approach, 329 Competitive advantage, 239, 513 choosing, 242–243 customer insights and, 137–138 Competitive analysis, 556 Competitive information, 146–148 Competitive parity method, 387–388 Competitive trends, 556 Competitors, 110–111 barriers to entry/exit, 115–117 future competitors, 115–117 idea generation, 270 levels of, 111 price changes, 341–342 prices and offers, 325 strategies of, 237 Concentrated marketing, 236 Concentric diversification strategy, 86 Concept development and testing, 272–273 Concept testing, 273 Concierges, 360 restaurants business and, 360 Condé Nast Traveller, 26 Conferences, 215 Confused positioning, 242 Conglomerate diversification strategy, 87 Conjoint analysis, 273 Consistency, 59–60 in advertising, 394 hiring/training procedures, 60 monitoring customer satisfaction, 60 standardization of process, 60 Consortia, 357–358 defined, 358 purpose of forming, 358 vertical marketing systems (VMS) development and, 358 Consumer behavior cross-cultural marketing, 180 cultural factors, 178–181 model of, 177 personal characteristics, 178–191 personal factors, 184–186 psychological factors, 187–191 social factors, 181–184 Consumer evaluation process, 193, 195 Index 667 Consumer expectations vs management perception, 584 Consumer markets, 114 major segmentation variables, 225 Consumer perceptions, price vs value, 319–320 Consumer preference, 381 Consumer promotion tools, 388, 425–429 advertising, 388–389 contests, sweepstakes, and games, 428–429 coupons, 426–427 digital marketing, 390 direct marketing, 390 packages, 425–426 patronage rewards, 427–428 personal selling, 389 point-of-purchase (POP) promotions, 428 premiums, 427 public relations, 389–390 sales promotion, 389 samples, 425 Consumer-generated marketing, 41–42 Consumer-generated messages, 399 Consumption stage, 259–260 Contact methods, 154–156 distribution channel function and, 350 strengths/weaknesses of, 154 Contests, sweepstakes, and games, 428–429 Contextual advertising, 479 Continuity, 401 Continuous training, 301 Contractual vertical marketing system (VMS), 362 Control criteria, channel members, 366–367 Convenience, 93 Convenience sample, 161 Convention(s), 209–210, 215 bureaus, 164, 210 Convention and visitors bureaus (CVB), 116 Convention bureaus, 164, 210 Convention Industry Council (CIC), 209 Conventional distribution channels, 361 vs vertical, 361 Conviction, 381–382 Copy testing, 402 Core product, 255 Corporate account, 218–219 Corporate communications, 412 Corporate connection, 553–554 corporate direction, 554 marketing-related plans, 553–554 relationship to other plans, 553 Corporate culture, sales force and, 452 Corporate customer, 145 Corporate goals, 554 Corporate meetings, 211–212 small groups, 212–213 Corporate mission, 82–84 Corporate objectives, 453 Corporate philosophy, 554 Corporate travel manager, 218–219 Corporate values, 84 Corporate vertical marketing system (VMS), 361 Corporate/chain sales support, 446 Cost-based pricing, 326–327 popularity, reasons for, 327 Cost-plus pricing, 326 Costs, 33, 317–318 subsidization, 318 types of, 318 Couchsurfing (website), 540 Council of Better Business Bureaus, 393 Counseling, 412–413 Coupland, Douglas, 118 Coupons, 426–427 Courtyard (hotel), 232 Crab Shack (restaurant), 235 Creative ideas, 429–430 Credibility, 415 Crisis management, 421–424 CRM See Customer relationship management (CRM) Crompton, A J., 528 Cross, Robert G., 333 Cross-cultural marketing, 180 Cross-selling, 319 Cross-training, 301 Crow, Sheryl, 413 Crowdsourcing, idea generation, 271–272 Cuba Tourism Development: A Time Travel (case study), 520–521 Cultural environment, 126–128 persistence of cultural values, 126–127 socially responsible actions and ethics, 127–128 Cultural factors, 178–181 African American consumers, 179 Asian American consumers, 179–180 cross-cultural marketing, 180 Hispanic consumers, 178–179 social class, 181 subculture, 178–180 Cultural values, 126–127 Culture, consumer behavior and, 178 See also Cultural factors Current market demand, 588–589 Current profit maximization, 316 Customer(s), 114 capturing value from, 42–44 consumer-generated marketing, 41–42 direct marketing benefits, 476 as employees, 261–262 employees and, 28 global customer, 27 growing share of, 43 idea generation, 271 interaction with other customers, 260–261 lifetime value of, 43 relating deeply and interactively, 40 right relationships with right, 44 selection of, 35 service delivery system, 68, 259–260 types of, 492 Customer care, 61, 290, 299, 604 Customer cost, 93 Customer databases, 448 database uses, 489–491 and traditional direct marketing, 488–491 Customer demands, 32 Customer equity building, 43 defined, 43 Customer expectations, 33 Customer experiences, 32–33 Customer insights, 137–138 Customer loyalty and retention, 29, 42–43 Customer needs, 30 channel members and, 364 marketplace and, 31–34 Customer orientation, 28–29 Customer relationship management (CRM), 38–40, 553 benefits of, 492 building relationships, 38–42 consumer-generated marketing, 41–42 engaging customers, 40–42 marketing and loyalty programs, 491–495 partner relationship management, 42 Customer satisfaction, 33–34, 39–40 evaluation of, 466 marketing and, 27 monitoring for consistency, 60 Customer share, 43 Customer solution, 93 Customer touch point, 560 Customer value, 33–34 Customer value-building approach, 491 Customer wants, 31–32 Customer-contact employees, 305–308 Customer-driven marketing strategy, 92–93 customers to serve, 35 design of, 34–38 668 Index Customer-driven marketing strategy (Continued) market differentiation/ positioning, 92–93 market segmentation, 92 market targeting, 92 marketing 25.0, 38 marketing concept, 37 marketing management orientations, 36–38 product concept, 36 production concept, 36 selling concept, 36–37 societal marketing concept, 37–38 value proposition, 35 Customer-engagement marketing, 40–41 Customer-perceived value, 39 Customer-structured sales force, 444–445 CVB (Convention and Visitors Bureau), 116 Cycle, 590 Daniel J Edelman, Inc., 415 Darden Restaurants, 567 Data collection and analysis, 577 Data warehouses, 142, 489 Database needs, 448 Deciders, 204 Decline stage, 276, 280 Decoding in communication, 379 Degree of product homogeneity, 237 Delete, 374 Demand, 32, 319 elastic, 321–322 inelastic, 321 price and, 70 price and, relationship between, 320–321 price elasticity of, 321–322 psychological determinants of, 528 shifting of, 73 Demand management, 70 low demand, 69 overbook, 71 price to create/reduce demand, 70 promotional events, 73 queuing, 72–73 reservations, 70–71 revenue management, 71–72 shifting demand, 73 short-term demand, 68 Demographic environment, 117–121 age structure changes, 118 baby boomers, 118 education and, 122 Generation X, 118–119 generational marketing, 120 geographic shifts in population, 122 increasing diversity, 120–121 millennials, 119–120 Demographic segmentation, 227–229 Demography, 117 Departmental organization, 80 Derived demand, 203 Descriptive research, 149 Destination branding, 537 Destination competitiveness, 513–515 Destination Digital Marketing, 116 Destination marketing organization (DMO), 27, 116, 542 Destination marketing system, 511–513 Destinations, 510 See also Tourism; Tourism destination(s) branding, 537 competitiveness, 513–515 life cycle, 527 live-like-a-local experience, 540 marketing system, 511–513 rejuvenation of, 527 tourism, 510–511 tourism, world’s top, 509 tourism slogans, 537 Detachment phase, 260 Differentiated marketing, 236 Differentiation, 97–98 managing service, 62 Digital age, 44–46, 477–478 Digital Alchemy, 480 Digital and social media marketing, 45 marketing, internet, and digital age, 477–478 online marketing, 478–481 social media marketing, 482–488 Digital technology, 376 Digital video recordings (DVR), 376, 396 DING! (application), 473 Direct and digital marketing, 351, 375, 390, 475–476 buyers and sellers benefits, 476 and customer databases, 489–491 defined, 375 described, 475 direct-mail marketing, 495 forms, 476 gap analysis of loyalty features, 494 growth of, 475–476 interactive TV, 496 kiosk marketing, 496 mobile marketing, 487–488 new direct-marketing model, 475 rapid growth of, 475–476 telephone marketing, 495–496 traditional forms of, 495–496 Direct booking, 352–353 Direct Marketing Association (DMA), 475 Direct rating, 402 Direct-mail marketing, 495 Discretionary income, 123 Discriminatory pricing, 331–332 criteria for successful, 332 defined, 331 Disintermediation, 112–113, 347 Disney, 601–602 Disney Cruise Lines, 227 Disney Parks Blog, 481 Disney World, 259, 417 Distribution channels, 348 See also Marketing intermediaries business location and, 367–369 contact and, 350 control criteria, 366–367 evaluating channel alternatives, 366–367 financing and, 351 functions of, 350–351 hotels and, 575 importance of, 349 information and, 350 matching and, 351 nature of, 349–352 negotiation and, 351 number of channel levels, 351–352 physical distribution and, 351 promotion and, 350 risk taking and, 351 Distribution strategies, 569 Diversification growth, 86–87 concentric strategy, 86 horizontal strategy, 86 Diversity, 120–121 Dobbs International Services, 557 Dominquez, Roberta, 424 Downstream partners, 348 Downtime, 69 Drifters, 534 “Drive Against Hunger” program, 414 Drop, 281 Drucker, Peter, 29, 49, 82, 98 Dunkin’ Donuts, 223–224, 392–393, 428 Dunkin’ Donuts University, 428 Dynamic packaging, 331 Dynamic pricing, 336 Eagles (band), 414 Eakin, Emily, 157 Echo boomers, 119 E-commerce, 496 Economic environment, 46, 122–123 global economy, 123 income changes, 123 pricing and, 325 super rich, 123 Economic feasibility, channel members, 366 Economic Intelligence Unit (EIU), 321 Economic situation, 185 Economic variables, 555 The Economist (newspaper), 515 Ecotourism, 517–518 See also Sustainable tourism Education and religious travel, 535 Edwards, Cliff, 152 Index 669 Effective communications, development of, 380–387 designing message, 382–383 feedback collection, 386–387 message source selection, 385–386 objective, determining, 380–382 selection of communication channels, 383–385 target audience, 380 Elasticity, price, of demand, 321–322 Electronic sales, 447 Elk Mountain Hotel (case study), 647–649 Elliott, Sheryl Marie, 521 Elliott, Stuart, 605 Ells, Steve, 316 E-mail, 474 E-mail marketing, 479–480 Embassy Suites, 318–319, 367 Emotional appeals, 382 Emotional employee, 303–304 Employees cross-training of, 68 customer-contact employees, 305–308 customers and, 28 marketing information and, 305–308 as part of product, 66–67, 291 part-time employees, 68–69 training of, 60 uniform selection, 308–309 Empowerment, 294–297, 306 Encoding in communication, 379 End-benefit effect, 323–324 Entry/exit barriers, 115–117 Environmental analysis and forecasting, 554–560 competitive analysis, 556 major environmental factors, 555 market potential, 557–558 market trends, 556–557 marketing research, 558–560 positioning statement, 554–555 Environmental factors, 206, 555 economic, 555 political, 555 social, 555 terrorism, 555 Environmental management perspective, 129 Environmental scanning, 129 Environmental sustainability, 84 Equipment limitations, 69 Erratic events, 590 Ethics, 127–128 Ethnographic research, 151 Evaluation of alternatives, 193–194 Event(s) in communication, 385 sports, 523–524 tourism, 521–524 Event marketing, 523 Everyday low prices (EDLP), 339 See also Value pricing Exchanges, 34 Executive summary, 552 Existing-product pricing strategies, 330–332 BAR (best available rate) pricing, 337 discriminatory rising, 331–332 distribution channels, 350 nonuse of revenue management, 337 price-adjustment strategies, 331–332 product-bundle pricing, 330–331 time of purchase, 331 volume discounts, 331 revenue management, 333–338 Expected service vs perceived service, 585 Expedia, 373–375, 569 “bond strategy”, 374 “buy strategy”, 374 Experian (business information services), 233 Experian’s Mosaic USA system, 233 Exploratory research, 149 Explorers, 534 Exposures, 419 External benchmarking, 513 External environment, idea generation and, 270 External environmental analysis, 95–97 External idea sources, idea generation, 270–271 External marketing, 61 Extreme Sports (case study), 413 Facebook, 116, 374, 559 Face-to-face guest relations, 291 Facilitating products, 255–256 Fairfield Inn, 317, 342 Familiarization trips (Fam trips), 455, 541 Family life-cycle, 184 Family members, 183 Fast-food industry, 391 Federal Trade Commission, 89, 126 Feedback and control, 98–99 Feedback in communication, 379 Feltenstein, Tom, 429 Fencing, 332, 337 Feng shui, 127 Field of Dreams, 274 Field sales force, 449–450 Financial intermediaries, 113 Financial publics, 114 Financing, distribution channel function and, 350–351 Five-gap model of service quality, 582–585 consumer expectations vs management perception, 582 expected service vs perceived service, 585 management perception vs service quality specifications, 582–584 service delivery vs external communications, 584–605 service quality specifications vs service delivery, 584 Fixed costs, 318 Focus, 98 Focus group, 155–156 Follow-up/maintenance (in personal selling), 462 Food and Drug Administration, 126 Forecasting market demand, 586–592 actual sales and market shares, 589 area market demand, 589 current market demand, 588–589 defining the market, 586–587 forecasting methods, 590–591 future demand, 590–592 restaurants, market areas for, 587–588 statistical demand analysis, 591–592 total market demand, 588–589 Forecasting methods, 590–591 Forest Drive Lodge, 313–315 location of, 314 marketing strategy, 314 offers, 314 pricing strategy, 313–314 upselling strategies, 314 Forms of direct and digital marketing, 476–477 Formula One Hotel, 236 Fortuna Düsseldorf 1895 e.V., 56 Forward integration, 89 Four Cs, 93 Four Points (hotel), 267 Four Ps of marketing, 38, 91, 93, 177 Four Seasons, 229, 236, 289–290 Franchise, 362 advantages/disadvantages of, 362 Franchising, 362–364 advantages/disadvantages of, 363 restaurant, 363 “Free Hug Friday,” 428 Frequency programs, 491 “Fresh Fit for Kids” program, 238 Future demand, forecasting of, 590–592 Galileo (GDS), 354 Gaming, Indian, 526 Gap analysis of loyalty features, 494 Gatekeepers, 204 670 Index Gender marketing, 227–228 Genealogical tourism, 532–533 General need description, 207 General public, 114 Generation X, 118–119 Generation Y, 119 Generic benchmarking, 513 Gentle, Kevin, 268 Geographic segmentation, 226–227 Geographic shifts in population, 122 German Hospitality Academy (DHA), 56 German Institute for Sustainability and Economy, 56 Global distribution systems (GDS), 354 Global economy, 123 Global Hotel Alliance, 357 Globalization, tourist industry, 509–510 Goal formulation, 97–98 differentiation, 97–98 focus, 98 objectives and tradeoffs, 97 overall cost leadership, 97 performance measures, 97–98 Going-rate pricing See Competitionbased pricing approach Golf Resort, 241 Goodman, Oscar, 252 Government agency enforcement, 126 Government intervention, 124 Government legislation and regulation, 125–126 Government markets, 114 Government publics, 114 Grand Hyatt Hotels, 302 Grand Targhee (case study), 621–624 Great Depression, 252 Greco, Susan, 333–334 Greek National Tourism Organization (GNTO), 537 Green Imperative Fund, 26 Green meetings, 214 Greene, Melvyn, 320 Groen Kettle, 317 Gronroos, Christian, 257, 290, 292 Gross rating points (GRP), 399 Group(s), 181 Group business markets, 209–210 conventions, 209–210 Group interviews, 155–156 Growth stage, 276, 278 Growth strategies, 86 Ansoff product-market expansion grid, 86 conglomerate strategy, 87 integrative growth, 89 market development strategy, 86 product development, 86 Guerrilla Advertising (Levinson), 394 Guest comment cards, 143–144 Guest information management, 143–145 automated systems, 144 guest comment cards, 143–144 guest history information, 142 listening/speaking with guests, 144 mystery shoppers, 145 point-of-sale information, 145 point-of-sale (POS) systems, 145 Gunther, Marc, 605 Guo, Daniel, 268 Hamblin, Ken, 421 Handling objections, personal selling principle, 461 Hanks, Richard, 332 Hard Rock Café, 413 Harrah’s Entertainment, 489, 560 Harrah’s Total Rewards, 494 Harrah’s Winner Information Network, 560 Harrison, Jeffrey S., 81 Havana Club Museum of Rum, 539 Hawaiian Sights (case study), 619–620 Hawes, Peter, 528 Hendler, Flavia, 157 Herrera, Joe, 432 Herzberg, Frederick, 187 Herzberg’s two-factory theory of motivation, 187–188 Hey-You-See-So technique, 418 High-performance business nature of, 79–81 organization and, 81 processes and, 80 resources and, 80 stakeholders and, 79–80 Hiking, multi-day, 531–532 Hiring process, 297–299 Hispanic consumers, 178–179 Historic Centre of Macau, 507 Ho Kwon Ping, 25 Hochschild, A R., 303 Holiday Inn, 85, 555 Horizontal conflict, 360 Horizontal diversification strategy, 86 Horizontal integration, 89 Horizontal marketing systems (HMSs), 364 Hospitality, 29 Hospitality and travel consumers, unique aspects of, 195–196 Hospitality Companies (case study), 486–487 Hospitality industry, 30 individual properties, 420 location as PR opportunities, 420 marketing in, 30–31 owner/operator, 420–421 PR opportunities for, 420–424 product or service as PR opportunities, 421 survival strategy and, 316 Hospitality sales, 438–441 competitive analysis and competitive sets, 440–441 Hospitality Sales and Marketing Association International (HSMAI), 168 eConnect website, 171 Hostile environment, 396 Hotel and Catering International Management Association (HCIMA), 129 Hotel industry objectives (examples of), 565 performance measures in, 97 Hotel representatives, 357 Hotel-resort industry, unique challenges of, 103–104 Hotels.com, 337, 353 Howe, Jeff, 271 Hudson, Simon, 558 Huggar, dMary, 116 Hulme, John, 422 Human need, 31 Human resources management continuous training, 301 emotional employees, 303–304 hiring process, 297–299 initial training, 300–301 jobs that attract talent, 297 marketing approach to, 297–305 reward and recognition system, 304–305 Human want, 31–32 Hunt Room: Change the Concept or Just the Decor? (case study), 606–607 Hustead, Ted, 421 Hyatt, 119, 159, 229, 256, 268, 294 Idea generation, 270–272 awareness of external environment, 270 crowdsourcing, 271–272 customer, 271 external idea sources, 270–271 internal sources, 270 Idea screening, 272 Identity media, 419 Illy, Andrea, 259 Image, 206 Image differentiation, 241–242 Implementation, 98 In Search of Excellence (Peters and Waterman), 67 Incentive travel, 213–214 Income segmentation, 228–229 Independent Retail Cattlemen’s Association, 415 In-depth interviews, 156 Index 671 Indian gaming, 526 Indigo Pearl Resort, 559 Individual factors, 206 Individual (intercept) interviews, 155 Individual mass tourists, 534 Industrial economies, 122 Industry cooperation (tourism), 518 Industry trends, 557 Influencers, 204 Information See also Guest information management distribution channel function and, 350 primary data, 150 secondary information, 150 Information needs, 139–140, 228 Information search, 192–193 commercial sources, 192 internet, 192 personal sources, 192 public sources, 192 word-of-mouth sources, 193 Informative advertising, 402 Infrastructure, 510 Initial training, 300–301 Inseparability, 57–59 Inside sales force, 448–449 Instant messaging (IM), 158 Intangibility, 57–58 Integrated marketing communications (IMC), 374, 375–380 communication process, view of, 378–380 need for, 376–378 new communications model, 376 Integrated marketing mix, 93 four Ps of, 38, 91, 93, 177 Integrated social media marketing, 486 Integrative growth, 89 Interactive marketing, 62 Interactive TV (iTV) in marketing, 496 Intercept interviews, 155 Interdepartmental teams, 95 Internal benchmarking, 513 Internal data, 140–145 Internal environmental analysis, 95 Internal marketing, 61 Internal marketing process, 289–309 See also Human resources management marketing information to employees, 305–308 nonroutine transactions, 296–297 organizational structure, 295–296 service culture, 293–294 steps in, 292 weak culture, 294–297 Internal publics, 114 Internal sources, idea generation, 270 International marketing research, 168–169 International markets, 114 International product and service marketing, 282 International social media, 485–486 International travel, 27, 515 International Travel Agency (case study), 641–642 Internet, 124, 166 See also Online marketing crisis management and, 421–424 marketing communications and, 376 word-of-mouth sources, 193 Interpersonal factors, 206 Interstate Commerce Commission, 211 Introduction stage, 276–278 Investors, 566 IRTRA–Recreational Park XETULUL (case study), 649–651 Irvine, Robert, 423 iTV See Interactive TV (iTV) in marketing Jackson, Eric, 633 Jet Blue, 35, 63, 488 JetBlue Airlines: Delighting Customers Through Happy Jetting (case study), 603–605 Joining stage, 259 Jordan, Michael, 182, 385 Journal of Consumer Psychology, 189 Judgment sample, 161 Judgmental sampling, 155 Junket reps, 356–357 Kelleher, Herb, 37 Keller, Kevin, 268 Kennedy, John F., 63 Kent, Steven, 252–253 Kentucky Fried Chicken (KFC), 139– 140, 268, 282 Key accounts, 445, 456–457 See also Customer-structured sales force KFC See Kentucky Fried Chicken (KFC) Kilar, Jason, 262 Kimpton Hotels, 212, 257, 293 Kiosk marketing, 496 Knowledge, 381 Konak, Volkan, 436 Krishna, Aradhna, 189 La Forgia, John, 619 Laboratory tests, 402 Las Vegas Convention and Visitors Authority (LVCVA), 251–253, 511–512 LaTour, Kathryn A., 157 Le Parisien (French newspaper), 413 Leadership in Energy and Environmental Design (LEED) Green Building Rating System, 214 Leading Hotels of the World, 242, 357–358 Learning, 190 Legislation, 125–126 Leong, Siew, 268 Leveraging brands, 265–266 Levinson, Jay Conrad, 394 Lewis Hotels, 306 Lidia’s (restaurant), 240 Life-cycle stage, 184–185, 227 See also Age and life-cycle stage Lifestyle, 186, 229–230 Lifestyle marketing, 550 Lifetime value (LTV), 43 Liking, 381 Lindner, Otto, 55–56 Lindner Hotels & Resorts, 55 “Listening post” concepts, 144 Live-like-a-local experience, 540 Lobbying, 412 Local area marketing, 431–432 cause-related promotions, 432 defined, 431 PR activities in, 431 Local marketing, 236 Local publics, 114 Location differentiation, 240–241 Logan, Janet, 479 Long-haul vs short-haul tourists, 536 Los Angeles Biltmore Hotel, 561–562 Lovelock, Christopher, 193, 244 Loveman, Gary, 135, 560 Low price approach, 339 Loyalty features, gap analysis of, 494 programs, 492–495 of tourism destination visitors, 536 Loyalty status, 232–233 See also Behavioral segmentation Macao Government Tourist Office (MGTO), 507–508 “Macau Welcomes You Passport” campaign, 507 Macau Welcomes You promotional campaign, 507 Maỗka, 436438 Maỗka Sỹmela Foundation, 437 Macrodestinations, 511 Macroenvironment, 95, 115–128 cultural environment, 126–128 demographic environment, 117–121 economic environment, 122–123 future competitors, 115–117 linked factors, 128–129 natural environment, 123–124 political environment, 125–126 technological environment, 124–125 MADD (Mothers Against Drunk Driving), 127–128 Mail questionnaires, 154 672 Index Maister, David, 72–73 Malaysian Association of Tour and Travel Agents (MATTA), 508 Management perception vs service quality specifications, 582–584 Management strategies global economy and, 27 top management, 566 Manning, Peyton, 398 Marginal accounts, 457 Marina Bay Sands (hotel), 239, 243 Market, defined, 34 Market development strategy, 86 Market differentiation, 92–93 Market homogeneity, 237 Market modification, 279 Market niches, 92 Market offerings, 32–33 Market penetration, 442 Market positioning, 225, 238–245 choosing/implementing strategy, 239 communicating and delivering, 244 competitive advantages, 239–243 differentiating competitive advantages, 240–242 overall positioning strategy, 243 positioning strategies, 238–239 perceptual mapping, 244–245 right competitive advantage, 242–243 Market potential, 557–558, 590 Market segmentation, 35, 92, 225–234 behavioral segmentation, 231–233 company objectives and resources, 235 demographic segmentation, 227–229 evaluation of, 234–235 gender, 227–228 geographic segmentation, 226–227 income, 228–229 major segmentation variables, 225 multiple segmentation bases, 233 psychographic segmentation, 229–231 segment size and growth, 234 segment structural attractiveness, 234 selection of, 235–237 undifferentiated marketing, 235–236 Market share, 394, 442 estimation of, 591–592 Market targeting, 92, 225, 234–238 evaluating market segments, 234–235 market-coverage strategy, 237–238 selecting market segments, 235–237 Market testing, 275 Market trends, 556–557 competitive trends, 556 related industry trends, 557 visitor trends, 556 Market-channel-structured sales force, 444 Market-coverage strategy, choice of, 237 Marketing, 30–31 See also Tourism destination(s) buzz, 384 cluster marketing, 568 concentrated marketing, 236 creating customer value/ satisfaction and, 27 defined, 27, 31 differentiated marketing, 236 event, 523 future of, 49 generational marketing, 120 importance of, 30 lifestyle marketing, 550 local area marketing, 431–432 marketing department and, 290 process, 31 relationship marketing and loyalty programs, 491–495 tourism, 30–31 undifferentiated marketing, 235–236 viral marketing, 559 Marketing 25.0, 38 Marketing activity timetable, 576 Marketing analysis, 94–97 external environmental analysis, 95–97 internal environmental analysis, 95 opportunities, 96 SWOT analysis, 94 threats, 96–97 Marketing budget, 98 Marketing channels, 348 Marketing communications mix See also Promotion mix advertising, 388–389 digital marketing, 375, 390 direct marketing, 375, 390 new media and, 376 personal selling, 375, 389 public relations, 375, 389–390 sales promotion, 375, 389 Marketing communications models, 376 Marketing communications promotional budget, 387–388 affordable method, 387 competitive parity method, 387–388 objective and task method, 388 percentage of sales method, 387 setting, 387–388 Marketing concept, 37, 90 Marketing control, 573–576 sales forecast and quotas, 574 sales objectives, 574 Marketing dashboards, 99 Marketing department, marketing function and, 290 Marketing environment See also Macroenvironment; Microenvironment responding to, 129 using information about, 129 Marketing information system (MIS), 138–148 assessing information needs, 139–140 and big data, 137–138 corporate customer, 145 customer insights and, 137–138 developing information, 140–145 guest information management, 143–145 HSMAI’s knowledge center, 168 information needs assessment, 139–140 internal data, 140–145 managing, 138 marketing intelligence, 146–148 marketing intermediary information, 145 Marketing intelligence, 146–148 external sources of, 146 internal sources of, 146 sources of competitive competition, 146–148 Marketing intermediaries, 112– 113, 145, 350–360 See also Distribution channels concierges, 360 consortia and reservation systems, 357–358 direct booking, 352–353 global distribution systems (GDS), 354 hotel representatives, 357 national, state, and local tourist agencies, 357 online travel agencies (OTA), 353–354 restaurant distribution systems, 359–360 specialists, 356–357 tour brokers, motivational houses, junket reps, 356–357 travel agents, 354–355 travel wholesalers and tour operators, 355–356 Marketing landscape co-creation, 48 digital age, 44–46 economic environment, 46 rapid globalization, 47 sharing economy, 48–49 sustainable marketing, 47 Marketing management, 34 external environmental analysis, 95–97 feedback and control, 98–99 Index 673 goal formulation, 97–98 implementation, 98 internal environmental analysis, 95 marketing analysis, 94–97 opportunities, 96 overview of, 94 planning, 98 threats, 96–97 Marketing management orientations, 34–38 marketing 25.0, 38 marketing concept, 37 product concept, 36 production concept, 36 selling concept, 36–37 societal marketing concept, 37–38 Marketing manager, 34 Marketing mix, 29, 38 integrated marketing mix, 93 marketing strategy and, 91–94, 317 Marketing mix modification, 280 Marketing myopia, 32 Marketing objectives, 316–317 current profit maximization, 316 establishing, 415 market-share leadership, 316–317 other objectives, 317 periodic evaluation of, 574–576 product-quality leadership, 317 public relations and, 415 survival, 316 Marketing opportunity, 96 Marketing plan action plans, strategies and tactics, 567–572 communicating, 566 corporate connection, 553–554 environmental analysis and forecasting, 554–560 executive summary, 552 as growth tool, 577 marketing control, 573–576 next year’s objectives/quotas, 563–567 preparing for the future, 577 presenting and selling the plan, 576 purpose of, 551–552 readjustments to, 576 resources needed, 572–573 segmentation and targeting, 561–563 Marketing process, 31 Marketing research, 148–168, 558–560 See also Research plan causal research, 149 descriptive research, 149 exploratory research, 149 international marketing research, 168–169 problem definition, 149 process of, 149 research objectives, 149 in smaller organizations, 169–170 Marketing services agencies, 113 Marketing strategy, 98, 274, 376 customer value-driven strategy, 92–93 integrated marketing mix, 93 marketing mix and, 91–93 marketing plan, 567–572 new product development, 273 Marketing Web site, 478 Market-penetration pricing, 329–330 Markets, 224–225 Market-segment-profitability analysis (MSPA), 561 Market-segment-structured sales force, 444 Market-share leadership, 316–317 Market-skimming pricing, 329 Marriott (hotel), 150, 232, 571 Marriott, “Bill”, J W., 333, 481 Marriott Corporation, 316–317, 332– 333, 342, 349 Martin Luther King Jr Day, 416 Maslow, Abraham, 187 Maslow’s theory of motivation, 187 Mass tourists individual, 534 organized, 534 Mataraci Village Improvement and Beautification Foundation, 437 Matching, distribution channel function and, 351 Mathieson, A., 528 Maturity stage, 276, 278–280 market modification, 279 marketing mix modification, 280 product modification, 279 Mayo Clinic (case study), 618–619 McDonald’s, 29, 35, 110–111, 237, 316–317, 320, 341–342, 379, 385–386, 388, 391, 393, 416–417, 425, 427, 572 McNamara, Garret, 413 Measurability, 233 Media, 385 broadcast, 385 in communication, 379 display, 385 online, 385 print, 385 Media decisions, 399–402 major media types, 400–401 media timing, 401 media vehicles, 401 reach, frequency, and impact, 399–400 road blocking, 402 Media publics, 114 Media timing, 401 Media types, 400–401 Media vehicles, 401 Medical tourism, 532 Meeting(s), 215 Meeting planners, 216–218 Meeting Planners International (MPI), 203 Membership groups, 181 Message content, 382 Message execution, 397–398 fantasy, 398 lifestyle, 397–398 mood or image, 398 musical shows, 398 personality symbol, 398 scientific evidence, 398 slice of life, 397 technical expertise, 398 testimonial evidence, 398 Message format, 383 Message in communication, 379 Message source, 385–386 Message strategy, 397 Message structure, 383 MGM Resorts International, 253 Mickelson, Phil, 398 Microenvironment, 95, 109–114 company, 109–110 competitors, 110–111 customers, 114 marketing intermediaries, 112–113 publics, 114 suppliers, 111–112 Micromarketing, 236 Middle income, 169, 224 Millennials, 119–120 Mirage campaign, 378 Miscellaneous costs, 573 Mission statement (s), 83, 554 Mobile marketing, 46, 475, 487–488 Moment of truth, 290–291 Monetary costs, 33 Monetary support, 573 Moral appeals, 382 Motel 28 (hotel), 242, 264, 316, 329 Motivation, 187 Herzberg’s theory, 187 Maslow’s theory, 187 of professional sales force, 462–463 sales force compensation, 462–463 supplementary motivators, 463 Motivational houses, 356–357 Motive, 187 Motor coach tours, 356 MSPA See Market-segmentprofitability analysis (MSPA) Multibranding, 265 Multichannel marketing distribution, 364 Multiday hiking, 531–532 Multiple segmentation bases, 233 See also Behavioral segmentation; Market segmentation 674 Index Multiplier effect, 516 Murren, Jim, 253 Muscular Dystrophy Association, 418 Mystery shoppers, 145 NASA (National Aeronautics and Space Administration), 531 National, state, and local tourist agencies, 357 hotel chains and, 357 National account management (NAM), 445 National Enquirer, 399, 401 National Restaurant Association (NRA), 125, 477 National tourist organizations (NTOs), 539, 541–542 Nation’s Restaurant News, 414 Natural environment, 123–124 Need, 31 Need recognition, 191–192 Negative publicity, 414, 424 Negotiation, 459–461 See also Personal selling bargaining strategy, 460 bargaining tactics, 461 distribution channel function and, 351 when to negotiate, 460 Neighborhood marketing, 431–432 Neirotti, Lisa Delpy, 521 Neiss, Ronald L., 380 Networking, 467 New direct-marketing model, 475 New product development, 269–276 business analysis, 274 commercialization, 275–276 concept development and testing, 272–273 idea generation, 270–272 idea screening, 272 major stages in, 269 marketing strategy, 274 product development, 274–275 test marketing, 275 New product pricing strategies, 329–330 market-penetration pricing, 329–330 market-skimming pricing, 329 prestige pricing, 329 New York Times, 411 New Yorker, The, 401 News, 417 Newsweek, 399, 401 Ngoh, Claire Chiang See, 25 Nielsen (business information services), 233 Noise in communication, 379 Nonmonetary costs, 33 Nonpersonal communication channels, 385 Nonprobability samples, 161 Nonqualified audience, 568 Nonroutine transactions, 296–297 Nontraditional households, 122 Normann, Richard, 290 Norton, David P., 135 Novotel (Hotel), 236, 452 Nurbatlain, Michael, 559 Obama, Barack, 252 Oberoi Hotels and Resorts, 555 Objections (in personal selling), 461 Objective, 563–564 Objective and task method, 388 Observational research, 151 Occasion segmentation, 231 See also Behavioral segmentation Occupation, 185 Ogilvy & Mather, 374 Olfactory dimensions, 258 Olive Garden Riserva di Fizzano (restaurant), 244 Olson, Jerry C., 157 One Minute Manager (Blanchard), 295 Online advertising, 478–479 Online focus groups, 158 Online marketing, 478–481 blogs and other online forums, 481 e-mail marketing, 479–480 Hospitality Companies (case study), 486 online advertising, 478–479 online video, 480–481 privacy and security, 496–497 social networks, 182–183 Web sites and branded Web communities, 478 Online marketing research, 156 Online privacy and security, 496–497 Online research, advantages/ disadvantages of, 159 Online social networks, 182–183 Online travel agencies (OTAs), 353– 354, 571 Internet, use of, 353 nonopaque, 353 opaque, 353 retail agency, 353 third party, 354 Online videos, 480–481 Opaque pricing, 339 Open-end questions, 164 OpenTable, 359 Operating margins, 78, 634 Opinion leaders, 182, 384 Opportunities, 96 as unmet needs, 96 Opportunity and threat analysis, 95–97 Opryland Hotel, 301, 572 Order-routine specifications, 208 Organization, 81 channel behavior, 360–364 Organization for Economic Cooperation and Development (OECD), 513 Organization image, 58 Organizational buyers environmental factors, 206 individual factors, 206 interpersonal factors, 206 major influences on, 205–206 organizational factors, 206 Organizational buying decisions, 206–209 general need description, 207 order-routine specifications, 208 performance review, 208–209 problem recognition, 207 product specification, 207 proposal solicitations, 208 supplier search, 207 supplier selection, 208 Organizational buying process, 204–205 decisions/decisions process, 203–204 importance of international companies, 205 market structure and demand, 203 organizational demand, 203 participants in, 204–205 Organizational culture, 293 Organizational factors, 206 Organizational structure, turning upside down, 295–296 Organized mass tourists, 534 Orientation, 303 OTA See Online travel agencies (OTAs) Overall cost leadership, 97 Overbook/Overbooking, 71, 337–338 Overhead See Fixed costs Overpositioning, 242 Overseas independent sales representative, 446 Palmer House (hotel), 239 PANKS (Professional Aunts, No Kids), 122 Papa John’s, 411 Parasuraman, A., 297, 583 Parseghian, Pamela, 414 Partner(s) inside the company, 42 relationship management, 42 Partner relationship management, 42 Partnership relationship, 492 Part-time employees, 68–69 Pass-through tourists, 535 Patronage rewards, 427–428 Pay-per-click (PPC) activities, 99 Peer-to-peer sales, 466–467 Index 675 Penot, Fabrice, 259 People, 401 People for the Ethical Treatment of Animals (PETA), 128 Perceived-value pricing See Valuebased pricing Percentage of sales method, 387 Perception, 187–189 selective attention, 188 selective distortion, 188 selective retention, 188 Perceptual mapping, 244–245 service level vs price, 244–245 Performance review, 208–209 Perishability, 60–61 Personal communication channels, 383–384 Personal factors, 184–186 age and life-cycle stage, 184–185 economic situation, 185 lifestyle, 186 occupation, 185 personality and self-concept, 186 Personal interviews, 155, 156 Personal selling, 375, 389, 458–462 approach, 459 closing, 461–462 defined, 375 follow-up/maintenance, 462 negotiation, 459–461 overcoming objections, 461 preapproach, 459 presentation and demonstration, 459 prospecting and qualifying, 458–459 Personal selling communications, 377 Personal sources of information, 192 Personality, 231 Personality and self-concept, 186 Personnel, 572–573 Personnel differentiation, 240 Persuasive advertising, 392–393 Phase-out, 281 Physical attribute differentiation, 239–240 Physical distribution, distribution channel function and, 350–351 Physical environment, 258–259 Physical evidence, 58 Pilgrimages, religious, 531–532 Pinehurst Resort & Country Club, 291–292 Pizza Hut, 141 Place, 38, 93 Planning marketing, 90–91 PLC See Product life-cycle (PLC) Pleasure travel, 534 Plog, Stanley C., 535 Plog’s categorization, 535 Point-of-purchase (POP) promotions, 428 Point-of-sale (POS) systems, 141, 145 Policies, procedures, and planning training, 453–454 Political action committees (PACs), 129 Political environment, 125–126 government agency enforcement, 126 international politics, 126 legislation/regulation affecting business, 125–126 Political factors, 555 Pollution, 123–124 Porter, Michael, 97–98 Portfolio tests, 402 Positioning, 92–93, 225 Positioning measurement, 244–245 Positioning statement, 554–555 Positioning strategies, 238–239 choosing/implementing of, 239 communicating and delivering, 244 measurement of, 244–245 Postpurchase behavior, 195–196 Preapproach, personal selling principle, 459 Preferred Golf, 550 Preferred Hotels & Resorts, 549–550 Premiums, 427 Presentation and demonstration (personal selling), 459 Press relations, 411–412 Press release, 414 Prestige pricing, 329 Prestonfield House (hotel), 83 Price, 38, 93 to create/reduce demand, 70 defined, 315 demand relationship, 320–321 elasticity of demand, 321–322 factors to consider, 315–325 rate compression, 325 sensitivity, 322–325 Price changes, 340–342 buyer reactions to, 341 competitor reactions to, 341–342 price cuts, 340 price increases, 340–341 responding to, 342 Price cuts, 340 Price elasticity of demand, 321–322 Price increases, 340–341 Price quality effect, 324–325 Price sensitivity business expenditure effect, 323 end benefit effect, 323–324 factors affecting, 322–325 price quality effect, 324–325 substitute awareness effect, 322–323 total expenditure effect, 324 unique value effect, 322 Price vs value, 319–320 Price-adjustment strategies, 331–332 discriminatory pricing, 331–332 time of purchase discounts, 331 volume discounts, 331 Price-demand relationship, 320–321 price elasticity of demand, 321–322 Priceline.com, 569 Price/margin mix, 442 Pricing Almost Destroys and Then Saves a Local Restaurant (case study), 627–628 Pricing approaches break-even analysis, 327–328 competition-based pricing, 329 cost-based pricing, 326–327 target profit pricing, 327–328 value-based pricing, 328–329 Pricing decisions See also Price sensitivity; Pricing approaches buyer-oriented, 319–320 competitors’ prices and offers, 325 consumer perceptions of price/ costs, 317–318 cross-selling and upselling, 319 external factors affecting, 319–322 internal factors affecting, 316–319 market and demand, 319 marketing mix strategy, 317 marketing objectives, 316–317 organizational considerations, 318–319 price-demand relationship, 320–321 value, 319–320 Pricing strategies, 571 existing-product pricing, 330–338 new product pricing, 329–330 price changes, 340–342 psychological pricing, 338–339 Primary data, 150–154 Princeton Artists Alliance, 385 PRIZM system, 184–185 Probability samples, 160–161 Problem recognition, 207 Processes, 80 Product, 32–33, 38, 93 defined, 254–255 tangibilizing of, 57–58 Product bundle price, 515 Product concept, 36, 272 concept testing, 273 Product deletion, 280–282 Product development, 86, 274–275 See also Product life-cycle (PLC) acquisition and, 276 commercialization, 275–276 prototype, 274–275 test marketing, 275 Product differentiation, 239–242, 394 image differentiation, 241–242 location differentiation, 240–241 personnel differentiation, 240 physical attribute differentiation, 239–240 service differentiation, 240 676 Index Product homogeneity, 237 Product idea, 272 Product image, 272 Product levels, 255–262 augmented product, 257 core products, 255 facilitating products, 255–256 supporting products, 256–257 Product life-cycle (PLC), 237, 276–282 decline stage, 276, 280 growth stage, 276, 278 introduction stage, 276–278 maturity stage, 276, 278–279 product deletion, 280–282 sales and profits, 277 Product modification, 279 Product publicity, 412 Product specification, 207 Product strategies, 571–572 Product training, 302 Product-bundle pricing, 330–331 benefits of, 330–331 business sectors using, 331 Production concept, 36 Product-market expansion grid, 86 Product-quality leadership, 317 Product/service training, 453 Product-specific objectives, 442–443 Professional sales force See also Sales force developing norms for, 464 evaluation and control of, 463–466 management of, 438 motivation of, 462–463 Promotion, 38, 93 See also Sales promotion distribution channel function and, 350–351 online promotion, 478–488 tourist market and, 537–538 Promotion mix advertising, 391–392 buyer readiness state, 391 direct marketing, 375 factors in setting of, 390–391 personal selling, 375 product life-cycle stage, 391 public relations, 375 push vs pull strategy, 390–391 sales promotion, 375 strategies, 390–391 type of product and market, 390 Promotion strategies, 569–571 See also Advertising strategies Promotional events, 73 Promotional pricing, 339 Proposal solicitations, 208 Prospecting (personal selling), 458–459 Prototype, 274–275 Prudhomme, Paul, 417 Psychocentrics, 535 Psychographic segmentation, 229–231 lifestyle, 229–230 personality, 231 social class, 229 Psychological determinants motivations, 528 Psychological factors, 187–191 beliefs and attitudes, 190–191 learning, 190 motivation, 187 perception, 187–188 Psychological pricing, 338–339 promotional, 339 value, 339 Public relations (PR), 375, 389–390, 410–411 crisis management, 421–424 defined, 375, 410 hospitality industry and, 420–424 social media and, 410–411 Public relations department corporate communications, 412 counseling, 412–413 lobbying, 412 major activities of, 411–413 new products, 412 press relations, 411–412 product publicity, 412 Public relations process, 414–420 awareness/comprehension/ attitude change, 419–420 evaluating results of, 419–420 events, 417 exposures, 419 implementing marketing PR plan, 419 marketing objectives, 415 media, 419 news, 417–418 overwhelming negative publicity, 420 PR campaign objectives, 415–416 PR message and vehicles, 416 public services activities, 418–419 publications, 416–418 research, 415 sales-and-profit contribution, 420 speeches, 418 target audience, 416 Public services activities, 418–419 identity media, 419 Public sources of information, 192 Publications, 416–418 Publicity, 413–414 Publics, 114 Pulsing, 401 Purchase, 382 Purchase decision, 194–195, 204–205 Purpose of a business, 28 Push vs pull strategy, 390–391 Qantas Airlines, 232, 241, 386 Qualifying leads (personal selling), 458–459 Qualitative evaluation of sales reps, 466 Qualitative research, 156 Quality in services, 292 Questionnaire, 161–162 Queuing, 72–73 Quota sample, 160 Quotas, 566 sales forecast and, 574 Raffles (hotel), 239 Ralenkotter, Rossi, 252–253 Ramírez de Arellano, Annette B., 521 Randall, Kevin, 605 Rapid globalization, 47 Rate parity, 337 Rating system objectives, 564 Raw material shortages, 124 Reach, frequency, and impact, 399–400 Recall tests, 402 Receiver in communication, 379 Recognition tests, 402 Red Lobster, 89, 97, 243, 348, 361, 440, 480 Red Robin, 77–79 Reeves, Rosser, 242 Reference groups, 181 Regent Seven Seas Cruise Line, 229, 231 Rejuvenation, destination, 527 Relationship marketing, 38, 450–452, 491–492 Religious pilgrimages, 531–532 Reminder advertising, 393 Research instruments, 161–162 Research plan contact methods, 154–156 development of, 150–165 ethnographic research, 151 implementation of, 165 interpreting/reporting findings of, 165–167 observational research, 151 presenting the plan, 165 primary data, 150–153 research approaches, 151–154 sampling plan, 160–161 secondary information, 150 specific information needs, 150 survey research, 153 Resellers, 114 Reservation systems, 357–358 Reservations, 70–71 Reservations department, 449 Resources, 80, 572–573 budgets, 573 miscellaneous costs, 573 Index 677 monetary support, 573 personnel, 572–573 research, consulting, and training, 573 Response in communication, 379 Restaurant brands, 572 Restaurant distribution systems, 359–360 Restaurant franchising, 365 Restaurants group interviews, 155–156 market areas for, 589 as meeting venue, 215–216 Retailer (distribution), 351 Return on marketing investment, 99–100 Revenue management, 71–72, 318, 333–336 BAR pricing, 337 dynamic pricing, 336 nonuse of, 337 overbooking, 337–338 rate parity, 337 RevPAR, 334–335 RevPASH, 334–335 variables in, 336 Revenue per available room (REVPAR), 71, 122, 203, 334 Reward and recognition system, 304–305 Rice, Brian, 318–319 Risk, managing perceived risk, 67–68 Risk taking, distribution channel function and, 351 Rittenhouse Hotel, 550 Ritz-Carlton Hotels, 144, 229, 317, 349, 367–368, 573 Road blocking, 402 Roberts, Paul, 619 Robinson, Jeff, 411 Roker, Deborah, 423 Roles and status, 183–184 Roschi, Eddie, 259 Rosebud Sioux Tribal Council, 380 Rosewood Hotels, 236 Royal Caribbean (cruise), 229, 318–319 Run-out, 281 Sabre (GDS), 354 Salaried sales force, 449–450 Sales department, 29 field sales force, 449–450 inside sales force, 448–449 organization of, 447–450 salaried sales force, 449–450 team sales, 450 Sales force See also Professional sales force career acquisitions with corporate objectives, 453 combination-structured, 445 compensation, 462–463 corporate culture and, 452 customer-structured, 444–445 developing norms for, 464 formal performance evaluation, 466 information needed by, 448 market-channel-structured, 444 market-segment-structured, 444 motivation of, 462–463 networking, 467 peer-to-peer sales, 466–467 recruiting and training of, 452–455 salaried, 449–450 sales reports, 465–466 selection of, 452 size of, 446–447 structure of, 443–447 territorial-structured, 443–444 Sales force compensation, 462–463 Sales force management, 455–467 evaluation and control, 463–466 motivating a sales force, 462–463 personal selling, 458–462 selecting sales strategies, 456–457 Sales force objectives, 441 Sales force training, 453–455 outside assistance for, 455 policies, procedures, planning, 453 product/service training, 453 sales techniques, 454–455 training materials, 455 Sales forecasts and quotas, 574 hotel industry (example), 575 Sales objectives, 572–573 Sales promotion, 375, 389, 424–431 contests, sweepstakes, games, 428–429 coupons, 426–427 creative ideas for, 429–430 defined, 375 developing program for, 430 evaluating results, 431 patronage rewards, 427–428 point-of-purchase (POP) promotions, 428 premiums, 427 pretesting/implementing plan, 430 promotion tools, 425–429 samples, 425 setting objectives, 424 Sales promotion program, 430 Sales quotas, 463–464 Sales reports, 465–466 Sales representatives, 446 overseas independent, 446 qualitative evaluation of, 466 tasks of, 439 use of phone power, 464 Sales strategies, 568–569 selection of, 456–457 Sales techniques training, 453–455 Sales volume, 441–442 price/margin mix, 442 by selected segments, 441–442 Sales-and-profit contribution, 420 Salesperson-to-salesperson comparisons, 466 Salter, Chuck, 605 Samples, 160, 425 Sampling plan, 160–161 San Diego Padres Baseball Club, 186 Scandinavian Airlines, 29 Schnatter, John, 411 Schultz, Howard, 87–88 Schulze, Horst, 144 Seabourn/ Windstar Cruises, 550 Seadream Yacht Club, 228 Search-related advertising, 479 Season, 590 Seasonal discounts, 331 Secondary data, 150 Secondary information, 150 Second-chance selling, 442 Segment growth, 234 Segment size, 234 Segment structural attractiveness, 234 Segmentation analysis, 561 Segmented pricing, 333–334 Segments, visitor See Visitor segments Selective attention, 188 Selective distortion, 188 Selective retention, 188 Self-concept, 186 Self-service technologies (SSTs), 68, 262 Selling concept, 36–37 Seltman, Kent, 619 Seminars, 215 Sender in communication, 379 Sensory marketing, 189 Seoul Plaza Hotel, 242 Service businesses capacity management, 68–73 customer complaints, 64–66 demand management, 70–73 differentiation, 62 employees as part of product, 66–67 management strategies for, 62–73 marketing in, 61 perceived risk, 67–68 service quality, 62–64 service-profit chain, 61 tangibilizing the product, 57–58 Service culture, 56–57, 293–295 establishment of, 293–294 nonroutine transactions, 296–297 organizational structure, 295–296 Service delivery system, 68–69 consumption stage, 259–260 detachment phase, 260 joining stage, 259 678 Index Service delivery vs external communications, 584–585 Service differentiation, 240 case study, 63 Service marketing characteristics of, 57–61 inseparability, 58–59 intangibility, 57–58 perishability, 60–61 physical evidence, 58 variability/consistency, 59–60 Service perishability, 60–61 Service productivity, 64 Service quality managing of, 62–64 recommendations for improving, 65 Service quality specifications vs service delivery, 584 Service sector, 260 Service variability, 59–60 Service-profit chain, 61 Services, 32–33 Shangri-La (hotel), 62, 84, 244, 261 Sharing economy, 48–49 distribution systems in, 358 Sharp, Isadore, 289, 301, 309 Sheraton (hotel), 241, 244, 267, 302, 325, 349, 363, 365, 386, 390–391, 442, 445 Shoemaker, Stowe, 494 Short-haul vs long-haul tourists, 536 Short-term demand, 68 Shumsky, Mike, 560 Silos, 80 SilverKris, 26 Simple random sample, 161 Singapore Airlines, 26, 240 Singapore tourism destination, 514 S-K-I Limited, 425 Sky Chefs, 557 Slogans, 564 Small business marketing, 169–170 Small groups, 212–213 Smartphone app, 473 Smashburger, 238 SMERFs (social, military, educational, religious, and fraternal organizations), 214–215 Smith, Preston L., 425 Smoldering crises, 423 Social class, 181, 229 Social factors, 181–184, 555 buzz marketing, 181–182 family, 183 groups, 181 online social networks, 182–183 roles and status, 183–184 word-of-mouth influence, 181–182 Social media, 410–411, 474 cocreation of destination experience, 540 Social Media in Travel and Tourism (SMITTY) award, 116 Social media marketing, 45–46 advantages and challenges, 482–483 customers on, 484–485 integrated, 486 international social media, 485–486 mobile marketing, 487–488 user-generated content (UGC), 483–484 uses, 482 Social networks, 45, 138, 158, 179, 181–183, 237, 411, 481–486, 540 Social selling, 468 Social/cultural effects (tourism), 516–517 Socially responsible actions and ethics, 127–128 behavior, 127–128 cause-related marketing, 128 Societal marketing concept, 37–38 Sodexo, 87 Sofitel Hotel, 236 SoLoMo (social+local+mobile), 237 South Dakota Department of Tourism, 380 Southern Pacific Hotels, 555 Southwest Airlines, 240 Space limitations, 69 Space tourism, 531 Spam, 479 Specialists (distribution channels), 356–357 Specific product attributes, 238–239 Sports events, 523–524 Stakeholders, 79–80 Starbucks, 55–56, 87-88, 223-224 community, 56 customers, 56 employees, 56 environment, 56 processes, 55–56 strategy, 55 suppliers, 56 Starwood Hotels, 84, 96, 230, 241, 254, 267, 428, 652 State tourist organizations (STOs), 542 Statistical demand analysis, 591–592 Steamboat Springs Ski Corporation, 318 Stopover tourism, 526–527 Strategic alliances, 450–452 examples of, 451–452 Strategic analysis, 81 Strategic business units (SBUs), 85 Strategic planning, 81 business portfolio design, 85–89 corporate mission, 82–84 diversification growth, 86–87 focus of, 81 growth strategies, 86 integrative growth, 89 role of marketing in, 81–91 setting goals/objectives, 84–85 steps in, 81 Stratified random sample, 161 Strengths and weaknesses analysis, 95 Subcultures, 178 Subindex B, tourism tour, 514 Subordinates, 566 Subsidization, cost, 318 Subsistence economies, 122 Substantiality, 234 Substitute awareness effect, 322–323 Subway (restaurant), 238 Sugden, John, 521 Sumela Monastery, 436, 437 Sunday Night Football (television program), 396 Super Bowl (television program), 396 Superior Hotels (case study), 642–644 Supplementary motivators, 463 Supplier(s), 111–112 responsibilities of, 367 Supplier search, 207 Supplier selection, 208 Supply chains, 348 value delivery network, 348 Supporting products, 256–257 Surge pricing, 336 Surprenant, C., 255 Survey instrument, 156 Survey research, 153 Survival (marketing objectives), 316 hospitality industry and, 316 Sustainable event marketing, 523 Sustainable marketing, 47 Sustainable tourism, 515–519 carbon-neutral vacations, 518–519 ecotourism subsets, 518 industry and community cooperation, 518 Swanson, Scott, 619 Switzerland tourism destination, 514 SWOT (strengths, weaknesses, opportunities, and threats) analysis, 94 Sydney Convention and Visitors Bureau (SCVB), 357 Taco Bell, 398, 420 Taco John’s (restaurant), 241 Tactical advertising, 394 Tactile dimensions, 258 Talosa, Carlos, 319 Tan, Chin, 268 Tangibilizing the product, 57–58 Target audience, 380, 416 Target marketing, 35 Target markets, identifying (tourism), 533–534 Target profit pricing, 327–328 Targeting, 224–225, 561–562 Taste of the Town event, 416 Team sales/selling, 450 Index 679 Teamwork, 299 Technological environment, 124–125 Teens, 119 Telephone interviews/surveys, 154–155 Telephone marketing, 495–496 Telluride Ski resort, 241 Territorial-structured sales force, 443–444 territory shape, 444 territory size, 443–444 Territory size and shape (sales force), 443–444 Test marketing, 275 Texting, 474 Threat analysis, 95–96 Threats, 96–97 TIC See Travel information center (TIC) Time, 401 Time of purchase discounts, 331 Timetables, 563 Tisch, Jonathan, 217 Top management, 270, 576 Total costs, 318 Total expenditure effect, 324 for lower-price products, 324 Total market demand, 590–591 Tour brokers, 356–357 Tourism, 30 Australia, 562 attractions See Attractions, tourism casinos and, 526 defined, 509 destinations, world’s top, 510 events, 521–523 genealogical, 532–533 Indian gaming, 526 market See Tourist market marketing tourism destinations, 510–513 medical, 532 National Tourism Organizations and, 541–542 rejuvenating a destination, life cycle, 527 slogans destination, 537 social/cultural effects of, 516–517 space tourism, 531 sports events, 523–524 stopover tourism, 526–527 strategies and investments, 519–527 sustainable, 515–519 sustainable event marketing, 523 visitor segments, classification system, 534–535 waterfront attractions, 525–526 Tourism Competitiveness Index (TTCI), 513–514 Tourism destination(s), 510–511 macrodestinations, 511 rejuvenating, 527 world’s top, 509 Tourism marketing, 29–31 organizing and managing, 541–542 regional organizations, 542 Tourist industry, globalization of, 509–510 Tourist market See also Tourism advertising/promotion effectiveness, 537–538 agritourism, 530 and communications, 536–540 developing packages of attractions/ amenities, 538–540 genealogical tourism, 532–533 identifying target markets, 533–534 loyalty of tourism destination visitors, 536 medical tourism, 532 monitoring of, 536–535 multi-day hiking, 531–532 psychological determinants of demand, 527–528 religious pilgrimages, 531–532 segmenting and monitoring, 527–536 short-haul vs long-haul tourists, 536 space tourism, 531 UNESCO World Heritage sites, 524–525 visitor segments, classification of, 534–535 Tourists, mass See Mass tourists Town and Country, 401 Trade areas, 587–588 Trade show management, 465 Tradeouts, 394 Training, 60 Training materials, 455 Transaction, 34 Transaction marketing, 450 Travel Agent, 354–355 Travel agents, 354–355 corporate, 355 decrease in, 355 Travel and Leisure, 401 Travel + Leisure, 116 Travel competitiveness index, 513–515 Travel industry, 27–28, 30–31, 49 Travel Industry Association (TIA), 541 Travel information center (TIC), 231 Travel Trade, 355 Travel Weekly, 355 Travel wholesalers and tour operators, 355–356 airlines as, 356 international resorts, increase in, and, 356 packages provided by, 355 Travelocity (online travel site), 569 Trend, 590 Tristano, Darren, 572 Tropicana Fishing Lodge (case study), 635–637 Twitter, 40, 63, 67, 116, 411, 434, 487, 504–505, 559, 605 Twitter Walls, 56 Two-way communication, 93 Types, marketing process, 61–62 Uber, 336, 358 Under the Banyan Tree, 25 Underpositioning, 242 Undifferentiated marketing, 235–236 UNESCO World Heritage sites, 524–525 Uniform selection, employee involvement in, 308–309 Uniforms, 308–309 Unique selling proposition (USP), 242 Unique value effect, 322 Upselling, 319, 442–443 Upstream partners, 348 U.S Small Business Administration, 170 U.S Tour Operators Association (USTOA), 356 USA Today, 411 Usage rate, 232 User status, 232 See also Behavioral segmentation User-generated content (UGC), 483–484 Users, 204 USP See Unique selling proposition (USP) Value chain, 90 Value delivery network, 348 Value pricing, 339 See also Everyday low prices (EDLP) risk involved in, 339 Value proposition, 35 Value vs price, 319–320 Value-based pricing, 328–329 consumer’s perception, importance of, 328 Variability, 59–60 Variable costs, 318 Vegas Bound, 253 Vendors, 567, 576 Vertical conflict, 360–361 Vertical marketing systems (VMSs), 361–362 administered, 362 consortia and, 358 contractual, 361 conventional vs., 361 corporate, 361 VFR (visiting friends and relatives) market segment, 231, 534 Viking River Cruises, 227 Viral marketing, 559 Visit Indy, 116 680 Index Visitor experiences, creating and managing, 539–540 Visitor segments business travelers, 534 classification of, 534–535 drifters, 534 education and religious travel, 535 explorers, 534 individual mass tourists, 534 organized mass tourists, 534 pass-through tourists, 535 pleasure travel, 534 Plog’s categorization, 535 visiting friends/relatives, 231, 534 Visitor trends, 556 Visual dimensions, 258 Vogue, 401 Volume discounts, 331 Volunteer vacationing, 546 Vongerichten, Jean-Georges, 259 W (hotel), 242 case study, 230 Waiting line, 72 Waldorf-Astoria (hotel), 239 Wall, G., 528 Wall Drug Store, 421 Wall Street Journal, 401, 411 Wanamaker, John, 387 Wants, 31–32 Ward, Clarissa, 268 Waterfront attractions, 525–526 Way, Sean A., 304 Weak corporate cultures, 294–295 Web sites types of, 478 Web sites and branded Web communities, 478 Wedding planners, 219 Weigand, Robert E., 365 Weissenstein, Michael, 521 Wendy’s (restaurant), 238, 572 Westin (hotel), 242 Wholesaler (distribution), 352 “Wild West” areas, 537 Wine Growers of California, 415 Winesnov, Michael, 268 Witchery by the Castle (case study), 614–617 Withlocals.com, 48 Wolfe, Kara, 231 Woodside Management Systems, 358 Word-of-mouth, 62, 114, 118, 181–182, 193 Word-of-mouth information sources, 193 World Economic Forum (WEF), 513 World Tourism Organization (UNWTO), 513 World War II, 408 Worldspan (GDS), 354 Wright, Jessica, 374 YMCA (hotel), 234 Young adults, 119 YouTube, 41, 182, 377–378 Zacher, Catherine, 32 Zaltman, Gerald, 157 Zaltman, Lindsay, 157 Zaltman Metaphor Elicitation Technique (ZMET), 157 Zeithaml, Valarie A., 195, 303, 583 Ziegler, Jennifer, 400 Zinck, Theodore, 329–330 Zipcar (car club service), 229 ZMET See Zaltman Metaphor Elicitation Technique (ZMET) Zmuda, Natalie, 428 ... 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