Chapter Two

Market: past, present, & future◦ Continuously review changes in market

share, leadership, trends, market shifts, costs, pricing & competition

ShallowMarket

MidlevelMarket

DeepMarket

Number of Events

Numberof

customers

(4) Main Categories◦ Convention

◦ Association

◦ Corporate

◦ SMERF

Annual Expositions & National Meetings◦Often include trade shows◦Planned 2-5 years in advance◦Can be in same location each time, or

rotate Convention Affiliate - ICW

Main factors in choosing facility:◦Availability of hotel and facilities

◦Ease of transportation

◦Climate

◦Recreation Opportunities

Large National meetings

Monthly local meetings◦Breakfast, Lunch or Dinner

Main factors in choosing a facility:◦ Price

◦Availability of “standing” functions

◦Quality of food & beverage

◦Desirability of location

Types of Corporate Events:◦ Training◦ Planning◦ Incentive

Major Concern:

◦ Accomplish objectives – training, goal setting, new product orientation

Main factors in choosing a facility◦ Quality of food & beverage◦ Meeting rooms; (size, look, location, etc.)◦ Image◦ Price

Social Military Educational Religious Fraternal

Generally limited budget Usually flexible Good “filler” business during off peak

times Can require lots of “hand-holding”

Main factors in choosing a facility◦ Price◦ Facility amenities◦ Location◦ Recreation

Key to successful growth & development Recognizing industry trends Identifying customer needs Formalizing sales plans Developing products, prices, advertising,

promotions & sales *Measurement of success in all above

areas*

Recognize Trends in:◦ Cuisine◦ Entertainment◦ Customer Lifestyle◦ Other concepts that shape customer needs◦ Develop products and/or services in

response to those needs

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 objectives.

1) Identify customer needs

◦Shaped by demographic and social trends

2) Create a product or service◦ Identification provides new opportunities

◦Must analyze perceived need before investing too much time or money

Launch plan◦ If product is being announced

Promotion budget◦ Supply back up material with detailed budget

information for review

Jan Feb Mar Apr May Jun July Sep Oct Nov Dec

Phase 1Phase 2

Phase 3

3) Develop customer interest

◦Done through combination of advertising and in-house promotions

Strategy & execution◦ Overview of strategy

◦ Media & timing

◦ Ad spending

◦ Website, Phone, In-house Promotion

Direct marketing◦ Strategy, vehicles & timing◦ Response targets, goals & budget

Third-party marketing◦ Co-marketing arrangements with other

companies Marketing programs

◦ Other promotional programs

4) Measure success◦Customer response

◦Financial success can be measured by sales volume following promotions

Group History Files◦ Records all facets of business relationship

Correspondence Decision Maker information Record of events General information on group

Tracer Files◦ Used to follow up with clients

Keep track of deposit & contract due dates Follow up on event information Record of events Use for rebooking event

Lost Business Files◦ Used to follow up on lost business

Evaluate why business was lost Follow patterns to make adjustments Develop future marketing plans Use for future booking of event

Place Product Price Promotion

Number of people that can be accommodated

Potential to handle groups◦ Elevators◦ Restrooms◦ Parking

Availability of services

Consistency Quality Good Price/Value Comparison Knowledgeable/Experienced Staff

Most Important and Troublesome Factor

◦ Identifying a price that both reflects the profit and cost needs of the business and responds to the needs of the consumer as acceptable on a perceived value basis.

Determine Pricing◦ Factor in Food Costs◦ Factor in Variable Costs; labor, benefits, etc. ◦ Factor in allowance for overhead; rent◦ Factor in profit

Things to consider:◦ Any additional revenue benefits to the property?◦ Any publicity factor involved?◦ Is it “off” or slow season?◦ How badly do you want/need business?

Brochures◦ First contact with clients◦ Conveys image of organization◦ Catering policies

Standardized Catering Menus◦ Offers suggestions◦ Pricing◦ Should include willingness to create special

menus for client

CDs, Video Tapes and Photos◦ Expensive but effective◦ Can be grouped with testimonial letters◦ No pictures are better than bad pictures

Proposals:◦ Direct response to client inquiry◦ First serious written understanding of a client’s event◦ Include one or more options for the client to consider◦ First major step to a signed contract◦ ALL DETAILS should be included