Impact of advertisement on hotel industry

2010    IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE PROVIDERS (BUSINESS HOTEL) BUSINESS PROJECT REPORT  SUBMITTED TO: Dr. G. RADHAKRISHNA  AMIT KUMAR (09ESHYD003) IBSHYD 4/29/2010IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)   BUSINESS PROJECT REPORT2 IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)   Acknowledgement  I would like to express my sincere gratitude to my Faculty Guide, Dr. G Radha Krishna for taking out his precious time and guiding me throughout my Business Research Project. With the help of his valuable suggestions, guidance and encouragement, I was able to perform this project work. I would also like to thank ICFAI Business School for giving me this opportunity to get this small but relevant exposure to the corporate sector while doing my Project. Last, but not the least, I would like to thank my colleagues, who often helped and gave me support at critical junctures during the making to this project in one way or another. BUSINESS PROJECT REPORT3 IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)   CONTENTS: Sl. No. TOPIC Page No. 1 Introduction 5 2 Objective 7 3 Methodology 9 4 Current Trends of Marketing of Hotels 10 4.1 Hotel Website Design 12 4.2 Hotel e-CRM Customer Relationship Management 13 4.3 Mobile Hotel Website & iPhone App 15 4.4 PPC 16 5 Questionnaire 17 6 Interim Findings & Observations of The Survey 20 7 Conclusion 21 8 References 22 BUSINESS PROJECT REPORT4 IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)   Introduction: Many companies are trying to put their arms around the ever-evolving marketing services dynamics. They seek to unify efforts across geographies and business units. As it becomes more apparent that marketing excellence needs to be strengthened, companies are implementing new strategies to continue to push the evolution of a fully integrated marketing approach. The advancement of technology (Internet) created new metrics and led to greater accountability in marketing. Companies could directly interact with a greater number of their individual, end-user consumers and evaluate marketing strategy in terms of the number of eyeballs, clicks or footsteps that search marketing delivered. Now, most companies realize that it is also critical to a business’ success to gather information from these interactions to not only measure behavioral change but also increase profitability. The basis for any successful marketing strategy is an understanding of the firm’s target market. The traditional consumer-goods classification system consisting of convenience, shopping, specialty and unsought goods are one example of a classifications system that furthers marketers’ understanding of their consumers (Kotler & Keller, 2006). This system, which is based on how consumers think and shop for products, allows marketers to develop marketing mixes for new and present products that satisfy their customers’ want and needs. (Perreault, Cannon & McCarthy, 2008). There was a time when companies had secreted away in their annexes marketing services organizations that essentially acted as a go-between with the creative brain trusts at "The Advertising Agency." The agency was a one stop shop for just about everything—especially advertising and media buying. Of course, time changes everything and so does the Internet. The rise of the Internet created new metrics and led to greater accountability in marketing. Companies could directly interact with a greater number of their individual, end-user consumers and evaluate marketing strategy in terms of the number of eyeballs, clicks or footsteps that search marketing delivered. Now, most companies realize that it is also critical to a business’ success to gather information BUSINESS PROJECT REPORT5 IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)  from these interactions to not only measure behavioral change but also increase profitability. The majority of companies have traditionally focused solely on their customers. Now, traditional companies are also collaborating with online giants, such as Google and Yahoo!, as well as other media and direct marketing agencies to increase their market share. All of these changes reflect the resurgence of the consumer as the arbiter of media choices. Many companies are trying to put their arms around the ever-evolving marketing services dynamic. They seek to unify efforts across geographies and business units. As it becomes more apparent that marketing excellence needs to be strengthened, companies are implementing new strategies to continue to push the evolution of a fully integrated marketing approach. BUSINESS PROJECT REPORT6 IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)   Objective: • To analyze the current trend of industry. • Develop a new framework for studying and evaluating the Cognitive Dissonance of loyal customers. • Aligning the shift in the services portfolio for loyal customers, keeping in mind the demographics, sales channels and the customer trends. The degree of customer satisfaction is a major factor in the determination of a brand’s familiarity, which in turn justifies the usage of Promotional tools be it Advertisement, or Promotions. There are five levels of brand familiarity: (1) Brand rejection, (2) Brand no recognition, (3) Brand recognition, (4) Brand preference, and (5) Brand insistence (Perreault, Cannon & McCarthy, 2008) Dissatisfied customers will reject the brand. Dissatisfied customer of Extended Problem Solving type products will experience extreme cognitive dissonance while the level of cognitive dissonance for Limited Problem Solving products will be minimal. Satisfied customers will recognize, prefer, or insist upon the brand. The level of commitment varies with brand insistence occupying the highest level. Brand insistence means the customer is truly loyal to the brand or the customer is brand loyal. Just because a customer regularly buys a product does not mean they are loyal to the product. Individuals often buy a product out of habit because they recognize (brand recognition) or prefer (brand preference) the brand. Depending on the type of decision, customer satisfaction will vary. Therefore, certain generalizations can be made about brand familiarity, cognitive dissonance, and brand loyalty. BUSINESS PROJECT REPORT7 IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)  Depending on how the product is viewed by the target market, the customer satisfaction will vary between extreme dissatisfaction vs. extreme satisfaction. This in turn determines the degree of cognitive dissonance experienced vs. the degree of brand loyalty. BUSINESS PROJECT REPORT8 IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)   Methodology: • Collection of data relevant to the report from internet, developed Questionnaire and sites of service providers and analyze it. • Consultation with Managers (Sales & Marketing) of Industry. • News Releases on consumer behavior. Post-testing methods actually gives us an idea about the actual performance of the ad in terms of exposure, perception, communication and sales effect. We can assess the credibility and comprehension of the ads. Few of the methods of this type of tests are: 1. Recall tests: In this type of tests the individuals are asked to answer about the ads entirely on the basis of their memory. It could be aided recall, where they are given few clues to help them recall and unaided recall, which of course is based on memory alone. 2. Recognition test: These are also known as readership tests, whereby it is seen whether they buy the product upon seeing the ads. Importantly, the individual has to qualify as the reader of that particular issue. 3. Triple association test: Here the respondent is given certain cues wherein he can relate to a certain brand. For example – “Thanda Matlab”, if the answer is coca cola, then it is correct. And if the respondent is able to connect the product with the company then it is a triple association. 4. Sales effect tests: They measure the various stages of buyer awareness, preference, buying intention and actual purchase in relation to actual advertising effort. 5. Sales results tests: The additional sales generated by the ads are recorded. It is difficult however to correlate an increase in sales to advertising alone. BUSINESS PROJECT REPORT9 IMPACT OF ADVERTISEMENT AND PROMOTION ON HOSPITALITY SERVICE April 29, 2010PROVIDERS (BUSINESS HOTEL)   Current Trends of Marketing of Hotels: Hotel Internet MarketingWebsite Hotel Website DevelopmentDesignHotel Unconventional Awareness or MarketingCSR activityHotel Email Travel 2.0MarketingHotel MarketingOnline PRHotel eCRMHotel Link BuildingAdvertisingPPC CampaignsHotel SEOTranslations Online Market and Business Intelligence tools perform a vertical online market analysis to identify Life Cycles of Money Keywords. 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