CASE STUDY ON STRATEGIES OF SALES AND MARKETING FOR BUDGET HOTELS Essay
CASE STUDY ON STRATEGIES OF SALES AND MARKETING FOR BUDGET HOTELS
Sales & Marketing department of any hotel is the lifeline of the hotel. It is the department which ensures that the hotel stays in the news (for positive activities), has near 100% occupancy at rates which add to the bottom line of the hotel Balance Sheet.
In a nutshell, Sales & Marketing department is responsible for bringing the business to the respective hotel by way of – Occupancy
Number of Rooms.
Seminars & Exhibitions.
Other events so as to ensure that Business centre of the hotel are also a profit venture.
SALES & MARKETING department has 3 distinct functions:
1. Public Relations
2. Event Management & its promotions
3. Room Occupancy- Business group
Budget hotels offer low cost business hotel rooms for budget travel. The low price hotels offering leisure to budgeted travelers. For a memorable and unbeatable luxury hotel experience, Budget Hotels are the right choice for low price accommodation travelers .
Budget Hotels Offer Low cost hotel rooms of the art amenities for international visitors like Luxury Ac Rooms, CCTV, Fridge, 24 hrs Room Service, Travel desk & Safe deposit, India Travel Packages etc.
According to Kotler “Marketing is a social and management process by which individuals and groups obtain what they need and want through creating offering, and exchanging products of value with other’s. (Kotler, Philip, Marketing Management: Analysis, Planning, Implementation & Control, 7th ed. 1996) In the Mind of the strategist Kenichi Ohmae defines marketing strategy “as an endeavor by a corporation to differentiate itself positively from its competitors using is relative corporate strengths to better satisfy customers needs, in a given environment setting (Khurana and Ravichandran, Strategic Marketing Management: Concepts & Class 1995). Or in other words, marketing strategy is a set plans or actions that attempts to satisfy the customer’s expectations by the use of organization’s strengths so as to strength the firm’s position in the competitive environment and leads to overall profitability and growth.
Key Terms (Reich Allen Z. 1997)
Strategy: Strategy refers to the plan for achieving a goal or objective. Webster’s definition for strategy (a noun) is: 1) The science of planning and directing and directing large-scale military operations, specifically (as distinguished from tactics), of maneuvering forces into the most advantageous position prior to actual engagement with the enemy; 2) Skill in managing or planning, especially by using strategy (a plan for deceiving an enemy). (Rich Allen Z. 1997) 3) Another definition of strategy is: “something an organization or uses in order to ‘win’ or establish its ‘legitimacy’ in a world of competitive rivalry and numerous challenges to managerial autonomy”. Rumelt’s (1979) definition stressed that strategy was what a firm used “to create and maintain an ‘asymmetric’ advantage in its product markets” (cited in Thomas, 1993, p.3) Miles and Snow (1978) and Mintzberg (1978) agreed with the widely held view that “strategy reflects a pattern in a stream of conscious managerial decisions, aimed at ensuring organizational adaptation.” (Reich Allen Z. 1997)
The Aim of this study is to understand who the function of Sales & Marketing in Budget Hotel. . Selling objectives and strategy. Overview of the Sales division in terms of type, location, hierarchy and functions. Key objections faced by the sales personnel and the proposed solutions, Formation of sales budgets and sales forecasting.
Reporting Format and Frequency.
Size of the sales force.
Factors taken into account while assigning quota and territories.
PRIMARY DATA: Questionnaire,
SECONDARY DATA: Internet,
Difficulties in collecting of first hand data.
It’s difficult to access the supervisory data.
Constraints of time.
Lack of co-operation between the researcher and the data giver.
Roots Corporation Limited (RCL) is a subsidiary of The Indian Hotels Company Limited (IHCL). Incorporated on December 24, 2003, RCL operates the first-of-its-kind category of Smart Basics hotel chain across the country. IHCL operates Taj Hotels, Resorts and Palaces, one of South Asia’s largest and finest group of hotels. The company was incorporated on 1902 by the founder of the Tata Group, Mr. Jamsetji Nusserwanji Tata and opened India’s first luxury hotel, The Taj Mahal Palace Hotel, Mumbai in 1903.
Launched in June 2004, the Smart Basics concept created a revolution in the world of Indian hospitality. A GenNext category of hotels, they signify simplicity, convenience, informality, style, warmth, modernity and affordability. The concept was developed in association with renowned corporate strategy thinker, Dr. C. K. Prahalad, and the hotels have been indigenously designed and developed by IHCL. The first of the Smart Basics hotel was launched in Bangalore and was called IndiOne. Having completed the test marketing of the concept and subsequent fine-tuning of the hotel facilities and services, the Smart Basics concept is now ready to roll out across India. These hotels have been launched with a new name – Ginger Hotels – in sync with the fresh, simple-yet-stylish and warm world of Smart Basics. The Ginger Hotels are built around a unique concept that provides facilities to meet the key needs of today’s traveler, at surprisingly affordable rates. They have created a new category in the domestic hospitality landscape, while giving a major fillip to Indian tourism and other ancillary industries. The primary objective behind the launch of these hotels is to provide a superior product offering and consistent experience to travelers, beyond the present offerings in the industry.
CONCEPT OF LOW BUDGET HOTELS IN INDIA.
The budget hotels in India are recognized for their impeccable facilities and services that ensure a satisfying tour. The hotels are dotted all over the important tourist destinations since there are many budget travelers all over the world looking for cost effective accommodation. The tourists are going to benefit a lot from the budget Indian hotels that have tastefully appointed rooms and provide customer centric services to the travelers during their tour to India. The impressive packages are designed keeping in mind the taste, preference and likings of the tourists and are reasonably priced so as to make it reachable even to the common man. The budget hotels are well-acclaimed for their services and facilities that are always directed towards satisfying the needs of the guests. The hotels are professionally managed and feature neat and clean guestrooms that are tastefully furnished with the most modern facilities and room amenities.
Budget travel in India is becoming increasingly popular and all the four major metropolitans of India are visited by large number of tourists each year. Thus to cater to their accommodation options, a large number of fine accommodations have come up that ensure an exclusive stay to the tourists. Though available at low cost tariffs, the budget hotels in India also cater to the corporate needs of the guests who drop in to India for the purpose of business.
SCOPE OF LOW BUDGET HOTELS IN INDIA
India, a land of diverse cultures and myriad tourist attractions, is visited by millions of tourists every year. The country is emerging as one of the fabulous tourist destinations of the world. Budget Hotels in India welcomes you for a comfortable stay in any place of India during your tour. Whether you’re in India for a pleasure trip or on business, you’re sure to find a hotel that suits your preferences.
Smart Basics is much more than a catchy phrase. It is a philosophy of providing intelligent, thought-out facilities and services at a ‘value’ pricing. Smart Basics reflects the new spirit in which people live and work today.
The emerging lifestyle which is visible in the degree to which individuals have taken control of their various activities viz. the use of email instead of letters as also the use of mobile phones, conference calls and video conferences to get things done quickly and efficiently.
Essentially, Smart Basics signifies simplicity, convenience, informality, style, warmth, modernity and affordability. Simplicity and convenience in ease of doing business (awareness, booking channels, payment gateways); informality, style, warmth and modernity in its approach to product design, service philosophy and affordability in pricing.
Customer-driven excellence: We anticipate expectations and delight our patrons with convenient and modern facilities at an unsurpassed value
Entrepreneurship: We strive to take ownership of the tasks we perform and to create an environment that encourages and supports initiative and appropriate risk-taking
Innovation: We believe that making meaningful changes to improve products, services and processes to create value for all stakeholders is an integral part of the daily work of the organization
Valuing employees, partners and communities: We believe in nurturing and developing internal and external partnerships, balancing the growth of the core business while preserving natural resources and contributing to society
Speed and agility: We deliver on promises with a sense of urgency and short response time
Fun, joy and zing: We believe that a happy employee leads to a delighted guest
TYPE OF SERVICES AND HOSPITALITY PROVIDED BY THESE HOTELS.
Food and Beverage options
Our hotels have a myriad of options when it comes to dining. We believe in giving you the best value in dining, as with everything else.
The Square Meal:
Open for breakfast, lunch, dinner and snacks
20″ Large screen TV
Order from a selection of menus from local restaurants and enjoy the meal at our resturant,collect the food at the Give ‘n’ Take counter
Smart Basics Facilities and Services
Ginger hotels have intelligently designed facilities and services, conceived with convenience and comfort in mind. Some of our features include:
The Square Meal : The Multi-Cuisine restaurant for a wholesome breakfast, lunch or dinner
Net Zone: For high speed internet connectivity
Conference Room (seats 80-100 people) or Meeting room (seats 8-10 people)
Laundry facility: Express delivery (same day delivery): Give your clothes by 9.30 am and get them back on the same day.
Gymnasium: Equipped with treadmill, exercycle and weights, air power bike, dumbbells, dual action poles with stepper, wrist curler, doorway chinning bar and punching bag, yoga mat
On-site ATM: From a selected set of approved/empanneled banks
Secure parking: 24*7 security on-site: monitoring by CC TV
Doctor on call
Smart Basics , Smart prices
We have a totally transparent pricing policy, with no hidden costs and additional levies. We believe in giving you true value for your money. Smart Planet — An eco initiative
At Ginger Hotels, our values give special emphasis on environmental and ecological issues. We constantly work towards building a better and sustainable way of living by providing facilities to our customers without compromising on the environment. The steps taken by us speak volumes of the measures that have been taken to create a safer environment for the future.
A good night’s sleep is very important as it renews the mind and rejuvenates the body. At Ginger, we understand the importance of a good night’s rest and strive to make our guests incredibly comfortable. We offer state-of-the-art posturepedic mattresses, which provide adequate support, thus ensuring a good slumber. Our special mattresses help in:
Providing advanced pressure point relief
Absorbing and redistributing pressure from your body weight
Delivering the correct orthopaedic support
Sensing body motion and responding with increased support
Reducing tossing and turning
These mattresses are complimented with duvets that offer softness and comfort to enhance the sleeping experience. Our exciting new range of beautiful bed linen, our comfortable pillows, and sumptuous duvets add to your convenience and comfort. So, don’t forget to sleep smart the next time you are in Ginger Pune.
*Smart Sleep is currently available in Ginger Pune.
Smart Space Rooms
At Ginger, we believe in the luxury of simplicity. Our Smart Space rooms are designed with comfort and practicality in mind. You can choose from:
Single Rooms: Ideal for the lone traveller, yet does not compromise on any of the conveniences of the other rooms
Twin Rooms: Separate beds for those who travel together
Double Rooms: A queen-size bed for your comfort
Family Rooms: Perfect for a family of four (at Delhi and Durg only)
Special Room to look after the special needs of the physically challenged
Our rooms are packed with features, to make your stay a memorable experience. You can find the following amenities:
Electronic locks on doors
17-inch wall-mounted flat-screen TV
24-hour cable TV with all major channels
Internet connectivity: Wi-fi
Tea / coffee maker with complementary sachets of Tea/Coffee
STD and local direct dial, voice mail and self programmed alarm on phone
Ergonomic work area
Wardrobe and luggage rack
Self controlled AC
Bottled water, Posturepedic mattress, Duvets Every room has an attached bathroom with the following facilities:
24-hour running hot and cold water
Branded toiletries: Body & hair wash, and hand wash
Bath and hand towels
At Ginger, we realise the importance of safety. Our hotels designed for total security and has security features like:
Close-circuit TV maintains records of all areas and visitors
Swipe card locks that offer the latest in security
Digital safes located at the Give ‘n’ Take counter at the lobby
GINGER HOTELS IN INDIA.
Ginger Mysore provides DOT (Department of Tourism) approved three-star facilities including all the special features of Smart Basics™ such as Smart space™, Safe zone™, gymnasium, meeting room, self check-in kiosk and is geared to make your stay comfortable and pleasant. Ginger offers clean, well-furnished and aesthetically designed accommodation equipped with amenities like mini-fridge, LCD TV, self-controlled A/c, tea and coffee maker and a telephone. COMPANY BACKGRAOUND AT HOTELS
Roots Corporation profile
Roots Corporation Limited (RCL) is a wholly-owned subsidiary of The Indian Hotels Company Limited (IHCL). Incorporated on December 24, 2003, RCL operates the first-of-its-kind category of Smart Basics™ hotels across the country. IHCL operates Taj Hotels, Resorts and Palaces, one of South Asia’s largest and finest group of hotels. The company was incorporated on 1902 by the founder of the Tata Group, Mr. Jamsetji Nusserwanji Tata and opened India’s first luxury hotel, The Taj Mahal Palace Hotel, Mumbai in 1903. Launched in June 2004, the Smart Basics™ concept created a revolution in the world of Indian hospitality. A GenNext category of hotels, they signify simplicity, convenience, informality, style, warmth, modernity and affordability. The concept was developed in association with renowned corporate strategy thinker, Dr C. K. Prahalad, and the hotels have been indigenously designed and developed by IHCL. The first of the Smart Basics™ hotel was launched in Bangalore and was called indiOne. Having completed the test marketing of the concept and subsequent fine-tuning of the hotel facilities and services, the Smart Basics concept is now ready to roll out across India.
These hotels have been launched with a new name – Ginger hotels – in sync with the fresh, simple-yet-stylish and warm world of Smart Basics™. The Ginger hotels are built around a unique concept that provides facilities to meet the key needs of today’s traveller, at surprisingly affordable rates. They have created a new category in the domestic hospitality landscape, while giving a major fillip to Indian tourism and other ancillary industries. The primary objective behind the launch of these hotels is to provide a superior product offering and consistent experience to travellers, beyond the present offerings in the industry. Contact
Roots Corporation Limited
Ginger Corporate Office
Godrej & Boyce Complex
Gate no. 8, plant no. 13 office building
Phone: +91-22-6777 3366
Fax: +91-22-6777 3377
For reservations and enquiries
Call national toll-free number 1800 220 022 or
call our reservation network +91-22-66014634
Email: [email protected]
Value added services
Taxi and traveller’s van service
Doctor on call
SELF CHECK IN
Save time and fuss with Ginger’s unique self check-in facility, which allows you to help yourself in without any assistance from the Front Office. The automated check-in kiosk, powered by Astrolife™, has been introduced in India for the first time and our guests love it.
Keep your valuables safe and secure in the state-of-the-art security systems Ginger has installed for you. All rooms have electronic tamper-proof locks. You also have the option of using the digital safes at the Give ‘n’ Take™ counter, at a very nominal charge.
GIVE N TAKE
Keep your valuables safe and secure in the state-of-the-art security systems Ginger has installed for you. All rooms have electronic tamper-proof locks. You also have the option of using the digital safes at the Give ‘n’ Take™ counter, at a very nominal charge.
At Ginger, we realise the importance of exercise as a stress buster and as part of a healthy lifestyle. All our hotels have well-equipped gymnasiums with treadmills, exercycles, boxing bags, weights, etc. Please help yourselves!
Conduct your meetings and presentations at Ginger’s capacious conference rooms. Our meeting rooms seat about 8-10 people with boardroom style seating, wi-fi connectivity and audio-visual equipment. You need to inform us in advance if you wish to hire a conference room.
Stay connected to your favourite sites in cyberspace with our high-speed internet connection at Net Zone. For those who want to avail of wi-fi connectivity, we offer wi-fi cards on sale at the reception.
Ginger hotels have a currency exchange facility where all major currencies and traveller’s cheques can be exchanged.
Quench your thirst with the complimentary bottle of mineral water in the minifridge in your room and, when you need a refill, just walk down to the water dispenser on your floor.
Vending machines have been installed at all Ginger locations. These machines are equipped with an array of products ranging from juices to toiletries. This 24-hour service will save you the trouble of stepping out of the hotel for a purchase.
VISION & MISSION
Ginger is a fresh and warm experience, of an unsurpassed value. MISSION
We provide smart, clean and safe hospitality offerings by adopting next-practices that constantly enhance value for our patrons. We are driven by respect for people and nature and passion for our stakeholders.
Customer-driven excellence: We anticipate expectations and delight our patrons with convenient and modern facilities at an unsurpassed value. Entrepreneurship: We strive to take ownership of the tasks we perform and to create an environment that encourages and supports initiative and appropriate risk-taking. Innovation: We believe that making meaningful changes to improve products, services and processes to create value for all stakeholders is an integral part of the daily work of the organization. Valuing employees, partners and communities: We believe in nurturing and developing internal and external partnerships, balancing the growth of the core business while preserving natural resources and contributing to society. Speed and agility: We deliver on promises with a sense of urgency and short response time. Fun, joy and zing: We believe that a happy employee leads to a delighted guest.
Situated on the airport road, Ginger Agartala provides easy accessibility to every part of the city.
Located close to the International Tech Park in Bangalore, Ginger Bangalore is ideal for the business traveller.
Stay at Ginger Bhubhaneshwar in the heart of the city, within easy distance of all important cultural and business areas.
Conveniently located close to the City Centre, Ginger Durgapur is in the residential part of town.
Situated close to Har-ki-pauri in Haridwar, Ginger Haridwar is the first choice of pilgrims to the holy city.
Nestled in the peaceful environs of the Vasanth Mahal road, Ginger Mysore is close to both the business and tourist centres.
Located centrally in Satpur MIDC, Ginger Nashik is easily accessible from the bus stand, railway station and airport.
Located in the French colony at Oulgaret Municipality, Ginger Puducherry is near to the airport.
The Ginger hotel in Pune is in the Pimpri Chinchwad region, the industrial hub of the city.
In Thiruvananthapuram, Ginger is located inside the sprawling Technopark campus.
Conveniently located at Fatehgunj camp road, Ginger Vadodara is just 3km from the airport.
COMPONENTS OF MARKETING SYSTEM
In developing a marketing plan for a hotel, each of the following components, known as the 6 P’s of marketing system, are to be considered.
Who are the present and potential customers?
Where are they?
What are their needs, desires and constraints?
What are the existing or planned facilities and services? How closely do they match?
Do they address correctly what the guests want and desire?
Consider the hotels’ need to operate at a profit while offering products and services which are competitive not only with other comparable hotel facilities, but with other products such as vacations abroad, second homes, camping and the suchlike.
Utilize all appropriate communication media and merchandising tools Attract the attention of prospects
See that the product and price are right
Living up to what has been promised in every respect in order to maximize the
guests’ length of stay, amount of spending, and loyalty, so that the guest becomes a repeat customer and the hotel’s ambassador of goodwill.
Comprises of incentives, including discounts and loyalty programs Attractive set of offers put together at what the customer perceives as a reasonable price Offers a good experience and value for money
The three elements of marketing plans are as under.
1. Customer or Prospect Mix
Who are the present customers?
Who are the desired customers?
2. Service Mix
What needs and wants of each group are now being met?
What needs and wants of each group should be met in the future?
3. Promotion Mix
How is the demand being activated and sustained?
How should it be?
Promotion mix includes Advertising, Promoting, Merchandising and Personal Selling
VALUE AND WORTH
Value is the customer’s estimate of the product’s capacity to his set of goals. Worth is the perception of the balance between satisfied goals and the costs involved in satisfying these goals. Good value is where worth is perceived as greater than the costs, and poor value where the costs are perceived greater than the worth.
As consumer needs, wants and demands change, as competition increases, and as technology offers new opportunities, the process of creating a consumer-product relationship is also the process of managing change.
Broadly, advertising, promoting and merchandising may be described as the process of bringing the buyer and seller together once the needs of both these parties have been understood.
The product in a hotel context constitutes a wholesome package on the offer, and attempts to satisfy and convey: The image of the establishment
Quality of the product and service
Style of management
Environment, facilities and services
Promotion is an activity directly concerned with the product. Promotion should inform the customers of the establishment, make them aware of its existence, persuade them to buy and convince them of the image and quality of the product. This is done by way of: Personal selling
Promotion is an activity which must be carefully planned and controlled. Usually the main objective of the promotional campaign is to stimulate demand by using persuasive messages to attract past users and new customers to the establishment. Such messages should convince prospective customers that the product on offer is good value for money.
Personal selling is doe through contacts with local organizations and committees, or more directly through the restaurant staff talking to guests.
All employees who are in contact with the customer must be made aware of the importance of selling the products to increase profits and provide a satisfactory experience for the customers.
Personal selling is the most potent method of promoting sales where the seller has an opportunity to make a complete presentation of his sales story, answer all objectives, and follow through the computation of a sale with a signed order. All staff must therefore gain a good knowledge of the company’s products and services, and develop good social skills with an ability to promote and sell. Showing concern for the customers not only makes them feel comfortable, but also promotes sales and increases the effectiveness of the establishment.
Advertising should convey messages which influence customer behavior. Advertisements should convey and result in: An immediate increase in sales
Awareness of the existence of the establishment
Informing the public of the name and location of the establishment Telephones and faxes of the establishment
Timings and dates of operation
The type of offer – room, restaurant, catering, leisure activities Style of food and drink offered
Unique selling propositions and special features
Whom to contact for what
Advertising messages should define and clarify:
Objectives of the advertisement
Media type to reach target
Timing of the advertisement
The medium used for the advertisement may be television, radio, newspapers, magazines and journals, Internet, pamphlets, brochures, posters, static poster sites, sponsorships, cinema and direct mailers. The selection of the
medium depends on the budget and the target audience. Large hotel companies organize their own local campaigns. This requires that the hotel progresses and reviews the various stages in the preparation of various ads and be aware of the advertising production cycle. SALES PROMOTION
Sales promotion is a day to day operation relating to discount offers, price reduction and special offers. They are designed to appeal to a certain section of the market or the target audience. Food festivals, for example, are held to promote cuisine and beverages of a particular region or country. A theme promotion may help the business and promote sales by way of volume of sales increased during off-peak periods by attracting new customers, gain publicity in the local media circle, and stimulate and interest regular groups. Follow up after sales is a very vital component of any promotional activity. MERCHANDISING
The objective of merchandising in F&B is not so much to create new techniques, but to implement existing merchandising techniques to their utmost potential. A customer can hardly buy what he doesn’t know, and so all merchandising and salesmanship should be directed to the five senses of sight, smell, taste, touch and hearing. Based on these factors, we should analyze our restaurants in detail in order to establish adequate programs for improvement. Sight – The most common technique in this category is the use of visual displays. These not only include static displays of fruit or ice, but also menus, tabletops, trolleys and carts, and the suchlike. Smell – Aroma stimulates taste-buds, and the use of smell to sell is a very effective tool. Aromas used effectively in restaurants include freshly brewed coffee, exotic herbs and spices, and the like. Taste – Whereas the success of a restaurant depends on the taste of the food, successful merchandising may include pre-order tasting and niblets. Touch – Merchandising to the touch not only include various textures on the food but also such things as crisp napkins and beautiful crystal ware.
DEFINITION OF MARKETING
The word market is derived from the Latin work ‘Marcatus’ meaning goods or trade or a place where business is conducted. The term marketing is defined as a ‘business activity planned at satisfying to a reasonable extent, consumer or customer needs and wants, generally through on exchange process’.
The human needs are less and are important for his survival. The wants of people are many and varied and change with time, place and society. The wants keep changing with life styles, earning capacity of consumers, social values, education etc. Human intentions and decision to acquire may not be the same due to existing conditions. A man like or intend to stay in a five star hotel. He may decide (or acquire) a room in a three star hotel due to his tight financial position.
Kotler defines marketing as “a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.
As per the definition by the American Marketing Association (AMA), marketing is “the process of planning and executing the conception, pricing promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.”
‘Market’ traditionally is a place where buyers and sellers gather to exchange their goods. With this concept of markets, it is seen that Marketing means working with markets to actualize potential exchanges for the purpose of satisfying human needs and wants. To meet the exchange process in the market, considerable skill and work is put by one party to the transaction. To bring in the desired response from the other party in a market, the marketer has to analyze, plan, implement and control activities.
Definition of Marketing Management, according to Kotler, is the process of planning and executing the conception, the pricing, promotion and distribution ideas, goods and services to create exchanges that satisfy individual and organizational goals. He has thus approved the definition of the AMA.
Marketing Management is engaged in influencing the level, timing the composition of demand in a manner that will help an organization to achieve its objectives. Marketing Management is basically demand management.
COMPONENTS AND CLASSIFICATION OF MARKET
Market is a social and economic institution which performs activities and provides infrastructure for exchange of commodities between buyers and sellers. A market is not confined to a particular geographical location, it exists wherever the fundamental forces of demand and supply exist.
The following components are necessary for a market to exist: Two parties are necessary – one buyer/s and secondly seller/s Goods or commodity for transaction. Physical existence of goods is not necessary. Business relation and communication between buyer and seller and Demarcation-area or place there, uniform price or competition is not a condition.
Classification of Markets
Based on nature and dimensions, markets are classified as under:
1.Area of Coverage
Local Market: Where buying and selling activities are taking place, where buyers and sellers belong to same or nearby villages. These are for perishable items like vegetables.
Tehsil Level Markets: Market catering to buyers and sellers of taluka area. Buyers and seller meet for their stock of food grains and other daily use items.
Regional Level Markets: Usually at district headquarters to cater to a larger area.
National Level: Buyers and sellers world over meet in this market. These are large scale markets and business value and volumes are large. The items transacted include, silver, gold, non-ferrous metals, petro goods and
machinery. In the recent past, agricultural commodities have also entered the area.
Village Market: The transactions between buyer and seller takes place in a small village center called a village market or a Haat. This meet is periodical, usually once or twice a week
Primary Market: The villagers take their agricultural produce to the nearby town or Tehsil on bullock carts, buses or tractors-transaction in the town market takes place between farmers and products.
Wholesale Markets: These markets are located at important commercial centers or district headquarters. The arrivals from villagers and other markets are large in quantities. The transactions take place among villagers, village traders and wholesalers. There are specialized marketing functions that take place in this market. They are commission agents, brokers, packers, weighment etc. These are also called Secondary markets.
Terminal Market: This market caters to the final consumer or processor. These are organized and modern markets. These markets are in cities or state capitals and deal in many commodities.
3.Volumes of Trade
Retail Markets: Where goods are brought and sold to consumers based on actual requirements. The retailers purchases goods from the wholesale market and sell in small lots to the nearby consumers.
Wholesale Markets: The wholesale markets are in big cities or commercial centers in a district. The commodities are brought in bit lots bulk and sold in bulk. These markets balance supply and demand fluctuations and also determine the prices of the commodities being transacted. As such wholesale markets are an important part in the market scheme.
Short Period Market: These markets are for few hours or a day in a week. Generally perishable goods like vegetables, fruits, milk, fish, mutton are traded. The prices are fixed on the basis of demand pattern.
Long Period Market: Where perishable items for a long period are traded. The items are food grains, oilseeds and oil. The prices are governed by supply as well as demand forces in the market.
Permanent Market: Markets where commodities can be kept for any length of time like machinery, steel furniture, manufactured goods.
5.Number of Commodities
General Market: These markets deal in a large number of commodities and of different quality and packages. The items are as groceries, foodgrains, oils, oilseeds, sugar etc.
Specialised Markets: Markets where only one or wo commodities are transacted are called specialized markets. Examples are foodgrain markets, electrical markets, cotton markets and vegetable markets.
6.Type of Transactions
Spot or Cash Markets: Where goods are exchanged immediately on payment of cash
Forward Markets: In this market, the timing of exchange of commodity and purchase and sale of that commodity are not same. The goods are delivered at a later date. Sometimes the goods are not delivered at all, only difference being in sales and purchase price which are paid as per agreements.
7.Degree of Competition
Market are seen from perfect competition to pure monopoly. The markets may exist different intermediate points. The markets are classified on the basis on basis of competition as under:
Perfect Markets: The perfect market in true sense does not exist. This presupposes that There are large numbers of buyers and sellers.
The buyers and sellers in the market have indepth knowledge of prices, demand and supply. Price are uniform in a geographical area-
Plus or minus cost of transportation from surplus to deficit market. Plus or minus cost of storage over a period of time.
Plus or minus cost of converting the product from one to another.
Imperfect Markets: In this market, the conditions of perfect market are lacking. These are: Monopoly market where there is only one seller of a commodity. He has sole control. The prices are generally higher. When there is only one buyer, the market is termed as monophony market. Duopoly market is a market there are two sellers of a commodity in the market. Where there are only two buyers in the market, it is called duopsony market. Monopolistic competition: Where a large number of sellers are selling heterogeneous and differentiated forms of a commodity, the situation is termed monopolistic competition. Example – farmer has to choose between various makes or brands of pesticides, pumpsets and fertilizers.
8.Nature of Commodities
Commodity Markets: Pertains to the types of goods like grains, cotton, sugar, fertilizers etc. Capital Markets: Markets where shares, debentures and bonds are purchased and sold as in share markets.
Regulated Markets: Where markets are controlled by government or statutory rules and regulations, pricing and distribution are as per laid down rules. Unregulated Markets: The seller or trader makes his own rules for conduct of business. These are not government rules for trading. The traders may exploit the situations.
10Accrual of Marketing Margins
This is done on the basis of whom the marketing goes. These are usually cooperative market. These are prevalent in milk, fertilizer and sugar industries. The margins are distributed to the cooperative members.
11Type of Population Served
Urban Market: Markets to serve the urban population.
Rural Market: Markets to meet demands originating from the rural population.
Marketing activity presently dealt with focused on the commercial transaction between a seller and a buyer. The seller offers his commodities to the buyer to satisfy his needs and wants. The buyer purchases the commodity or services as per his needs and demand.
Marketing Activity and Environment
The framework or environment in which marketing activity takes place is within and outside the buyer and seller organizations – some are controllable and some are uncontrollable variables. Some variables can be controlled by the seller that is one can plan, organize and perform – whereas there are variables which are beyond and control.
The controllable variables are planned and their level of intensities are used to influence the target market. This is called the marketing mix. E.J. McCarthy developed the marketing mix. They are the five Ps-Product, Price, Packaging, Place and Promotion.
The variables in each of these Ps is detailed in Fig.
Ease in handling
5Ps and their variables
Marketing is an important and integral part of any enterprise. It follows of the organization, that is marketing desires goals from an organization. gives goals of an organization and its marketing arm.
Maximum sales revenue
Goals of Organization and Marketing
SELLING AND MARKETING CONCEPTS
Selling concept holds that, if left alone, a customer will ordinarily not buy enough products of the organization. the organization must, therefore, go for aggressive selling and invest in promotional campaigns. This is a common man’s approach. The aim is to sell what an organization makes rather than make what the market wants. On the hand, marketing is a business philosophy that is opposed to the selling concept. The marketing concept holds that the key to achieve goals of an organization consists of being more effective than its competitors in evolving and executing marketing activities towards determining and satisfying the needs and wants of target markets. The concept is put is few words – “find wants and fill them” or “meeting needs profitably”. The difference between selling and marketing are detailed in below.
The Selling Concept
Selling and Promoting
Profits through sales through
DIFFERENCES IN SELLING AND MARKETING CONCEPTS
Market Structure and Dynamics
Market structure has to meet the requirements and adjust substantially to the changing environment. For good performance, the market structure should keep pace with:
Demand Changes in Market
The market structure should be reoriented to keep pace with demand for products in terms of size, quality, packaging due to changes in incomes, consumer tastes and habits.
Product Changes in the Market
The production pattern changes with technology, economic and institutional reasons. The structure should be reoriented to suit changes.
Marketing Function and Cost Factors
Market information, enfacing inventory holding patterns and transport facilities have bearing on the type of market structure. Should change as per costs and changes in Government policies.
Questionnaire Based Analysis
1. Do you think customer satisfaction is the main goal of the management of a budget hotel?
2. Do you think ensuring the customer of all the comfort will always help in repeat business?
3. What do you think is the reason for lack of repeat business even if all services provided to the guest are budget hotel?
4. What should be the main aspect to be worked upon to attract suitable guests?
5. Why do you think prospective guests are attracted the most by in a hotel facility?
6. What do you think is more important- the tangible goods (food, room, etc) or intangible services provided by hotel employees (courtesy, chivalry, friendly behavior, etc)—
7. How important is branding according to you?
Hotel Industry in across the globe needs to give a greater in-depth thought to branding their products and services to reap the benefits of changing customer needs. The Hotel Industry as a whole must continue to ensure Customer Satisfaction and Loyalty and thus make all efforts to retain customers. Hotels must be given a higher ratio of importance as future trends signify that the mentioned sector will be a cash cow for the investors. Innovation is also proposed as a key to success in the Hotel industry currently and also for the future as competition is growing rapidly. So, it will be a good idea to establish theme restaurants with variety of cuisines. Emphasizing on areas like Semiotics would result in generating brand recognition and awareness. This would be a helpful tool in order to impact the consumer’s mind. Media is the recommended channel through which the impact can be profound. Ensuring exceptional guest care by each and every employee should be the norm. To ensure this, flatter structures are recommended to stimulate communication process and close working as a team. Staff levels must be offered better pay packages since they are the ones in direct contact with your customers. Competitive pay packages will also help in retention of staff and better services to the customers. Empower employees, encourage and -support them in their
decisions to build confidence. This will lead to better customer service at guest contact points. Outsourcing options should be considered seriously, and in as many services as possible. This will definitely lower payroll costs and may also improve efficiency of operations.
1. Kotler Philip, Marketing Management: Analysis, Planning, Implementation and control, 8th ed. 1996, Englewood Cliffs, NJ:Prentice Hall, New Delhi. 2. Roberts, John Marketing for the Hospitality Industry, 1993, Hodder Stoughton, London. 3. Kotler, Philip, Marketing Management, the millennium edition, (10th edition) 1999, Prentice hall of India, New Delhi. 4. Reich A.Z., Marketing Management for the hospitality Industry: a Strategic Approach (1997), John Wiley & Sons Inc., New York. 5. Wearne. Neil; Hospitality Marketing, 2001, Global Books D Subscription Services, New Delhi. 6. Kotler, Bowers and Makens, Marketing for Hospitality and Tourism, 1996, Prentice- hall International, USA. 7. Pearce, J. II and Robinson, R.B. Jr., Formulation and Implementation of competitive strategy, 4th Ed. (1989), Homewood, IL:Irwin. 8. Knowles, Tim; Corporate Strategy for Hospitality, 1996, Longman Company Limited England.
Trade Journal & Magazines:
1. Hotelier and Caterer
2. FHRAI magazine