Transcript providing quality customer service

PROVIDING QUALITY
CUSTOMER SERVICE
MARKET KNOWLEDGE
• Individually write the name of your
favourite hospitality venue – Bar, Café,
Hotel, Restaurant et al. List the features
why it is your favourite?
• Write the name of a hospitality venue that
you like to visit or liked but don’t any more
– what changed you or the venue?
MARKET KNOWLEDGE
• MARKETING – What is marketing? And how is it
different from Selling?
• Why do you market?
• How do you market?
• What does the marketing process involve?
♫ Analyzing marketing opportunities
♫ Selecting target market segments
♫ Developing market mix
♫ Managing the marketing effort
MARKETING
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Marketing is not selling or advertising! They are only the tip of the iceberg. Originated in 1950 when the US army found itself
with excess production capacity – rather to let of staff, they started to lobby industries and people seeking work for their
personnel and marketing evolved.
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Evolution of Marketing Concept:
Consumer Goods
Industrial Mktg
Non profit and social Mktg
Services Mktg
Customer Satisfaction, Global Marketing, Synchronous Marketing – Real Time Marketing
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Marketing Defined today No longer Telling and Selling – it is satisfying customer needs and working with customer
Whatever method is used, the marketer who does a good job of understanding customer needs, who develops products that
provide superior value and who prices, distributes and promotes them effectively should find products sells easily
It is a social managerial process by which individuals and groups obtain what they need and want through creating and
exchanging products and value with others.
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WHY MARKETING?
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Needs – Human Needs – states of self deprivation
Physical – Hunger, Thirst, Clothing, Warmth, Safety
Social – belonging, affection
Individual Needs – personal growth and self advancement
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Wants – the form the need takes and is shaped by culture, environment and individual personality
E.g. Hungry person in Australia would have a burger with a coke whereas in South Pacific would eat mangoes, suckling pigs or
beans. Wants basically satisfy needs. As exposure to objects increase, interest and desire increases and producers try to
provide more want- satisfying products and services
People have unlimited wants but limited resources- this creates demand when wants is backed by buying power. A Proton car
provides the basic satisfaction – transport, set of wheels and economy whilst a Merc provides luxury, status and comfort – in
other words, people demand products with benefits that add up to their satisfaction
Companies do market research, focus groups to analyse what customer’s wants and needs are – this is used in designing
marketing strategies.
A product is something that is offered to the market that satisfies the needs or wants of consumer.
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MARKETING
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Tangible vs. Intangible products?
Pay attention to benefit of product or solution it provides rather than product itself – E.g. drill – it
provides solution in making a hole but seller may think that all the customer wants is a drill – this is
MARKETING MYOPIA
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Customer Value - difference between cost of product and the values the customer gains by using
and owning the product
Customer Satisfaction – difference between perceived performance to actual performance of
product – Motorola’s definition of customer dissatisfaction – if a customer does not like a product,
then the product has a defect in it. TQM – as the totality of features and characteristics of a product
or service that bear on its ability to satisfy customer needs. Quality begins with customer needs
and ends with customer satisfaction
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Exchange – act of obtaining a desired object from someone by offering something in return
It is a core concept of marketing – Why – Two parties involved and participate, each has something
of value to gain from each other. Communication is a key part of exchange process.
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Transaction is a unit of measurement in marketing – E.g. buying a TV for $ xxx from Harvey
Norman – Not all transactions involve money. A political candidate may buy a persons vote. It is
actions taken to obtain a desired response from a target audience towards a product, service, idea
etc.
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Relationship Marketing – building loyalty and long term relationships – going beyond the
transaction and exchange – Marketing today has shifted from maximising profit to maximising
mutually beneficial relationships with customers. – Profits automatically follow
WHAT IS A MARKET
• Olden days – stood for a place where
sellers and buyers gathered to exchange
goods.
• Economists definition – the set of all actual
and potential buyers of a product
LESSON OUTLINE –
WED 25 MARCH
1. Market Strategy
2. Hotel Customer Segment - Case Study
3. Market Positioning
MARKET STRATEGY
Depending on strategy adopted and outcome needed ,
marketing strategy may include:
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Increase Market Share – more sales to present customers without
change in product
Market Development – increase and develop new markets for
existing product
Product Development – modify or introduce new products to
current markets – in hotels ? Kraft for instance can launch new
sizes, new packaging, or change product content e.g. cholesterol
free products
Diversification – Looking at promoting company by starting up or
acquiring products or businesses outside the current products or
markets e.g. – Marriott, Four Seasons
MARKETING STRATEGY FOR
HOTELS
• To attract potential guests/markets
• Current guests broken down to market
segments and analysed
• Outcomes determine strategy –Market
Development or product development or
both
• Decision either way involves studying
guest profile – What is this?
MARKET SEGMENTATION
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MARKET SEGMENTATION
Segments are broken down – understand
your customer needs by Geographic
Psychographic
Behavorial – refer to hand out for details
A Market Segment for a product is consumers
who respond in a particular way to a given set
of marketing efforts/stimulus.
MARKET SEGMENTATION
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HOTEL ACCOMMODATION MARKET SEGMENTS
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FIT – Free Individual Traveller
Corporate/Business
Government Personnel
Groups
Function/Conferences
A Market Segment for a product is consumers who
respond in a particular way to a given set of
marketing efforts/stimulus.
MARKET SEGMENTATION
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FIT – Free Individual Traveller – Can be broken
down further based on purpose of business
Leisure ( demogoraphics vary),could be local, interstate or
international as well
Holidaymakers – primarily recreation/relaxation – booked
mostly through travel agents
Visiting Friends/Relatives – looking for a safe place to
sleep
Families – budget conscious, kids activities, baby sitting ..
Weekenders – Purpose driven – shows, carnivals etc
Backpackers – budget accommodation, kithchenette
preference
MARKET SEGMENTATION
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Corporate/Business
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Travelling on business mainly – mini bar, large desks,
bright rooms, business centre access, in house movie,
internet access, breakfast inclusive
Internationals may also require Foreign Exchange, rental
cars, tours, interpreter etc
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Government Personnel
Military personnel, have per diem(limited travel allowance),
needs are similar to business travellers
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Groups
Can be interstate, ,local, international – mostly inclusive
packages – Commonly referred to as GIT in hotels(Group
Inclusive Tours) where all requirements are pre arranged
MARKET SEGMENTATION
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Function/Conferences
Attend conferences/social events and could be local,
interstate or international visitors – needs similar to
business travellers and most of their activities are pre
arranged with venue
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Special Interest Tours(SIT)
similar to groups but focussed interest - wine tours, art
galleries etc – have similar needs as groups
A Market Segment for a product is consumers who
respond in a particular way to a given set of
marketing efforts/stimulus.
MARKET SEGMENTATION
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Food & Beverage
Guests in F&B can also be broken down using
a) Demographics –by age, sex, family size, income, culture
etc
b) Geographic – segmented according to region, city,
state, local etc
c) Psychographic – social class, life style, personality and
shared values
d) Behaviourial - based on attitudes, spending patterns,
responses etc
It is important to recognise that each market segment is
different having different needs and acknowledge them
accordingly.
HOTEL SEGMENTS - ASSIGNMENT
• IDENTIFY SOME MARKET SEGMENTS FOR A
FIVE STAR HOTEL IN SYDNEY CBD
• WHAT IS A TYPICAL CUSTOMER PROFILE MON - FRI
• WHO IS A TYPICAL CUSTOMER ON
WEEKENDS
• IDENTIFY THEIR SPECIAL
REQUIREMENTS/NEEDS
15 MINUTES – IN GROUPS OF FIVE
POSITIONING
• POSITIONING AIMS FOR YOUR HOTEL TO OCCUPY A CLEAR,
DISTINCTIVE AND CLEAR PLACE RELATIVE TO COMPETING
HOTELS IN YOUR CUSTOMERS MIND
SOME OF THE COMPETITIVE ADVANTAGES ARE:
• 1. LOWER PRICES
• 2. OFFERING GREATER VALUE –
IN ESSENCE YOU NEED TO DIFFERENTIATE YOUR PRODUCT
TO COMPETITION
• WHATEVER THE ADVANTAGE HIGHLIGHTED, ALL
STRATEGIES SHOULD AIM TO HIGHLIGHT AND REMIND
CUSTOMER OF THIS – THIS IS YOUR POSITIONING
STATEMENT & STRATEGY
• E.g. – Mercedes– Engineered like no other car in the world
• Radisson Hotels – Yes We Can
MARKETING
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Positioning is about how guests perceive your hotel
product in relation to other hotels in the market
It is about differentiating the product in the mind of the
customer – E.g. Radisson – Yes we can
Identify possible competitive advantage to build the
position E.g. value add for existing prices - Build a
Sustainable Customer Advantage (SCA)
MARKET POSITIONING
• MARKET CUSTOMER ANALYSIS
• WHO STAYS IN YOUR HOTEL AND WHY ?
• HOW OFTEN DO THEY BUY YOUR PRODUCT OR
SERVICE
• HOW DO THEY BUY – WHOLESALE, DIRECT,
BOOKING SITES ETC
• WHY DO THEY BUY YOUR PRODUCT/SERVICE?
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GENERATING YOUR TYPICAL CUSTOMER
PROFILE
AGE GROUPS – 18-25, 26-35, 36-45, 46-55 Etc
SEX - MALE, FEMALE OR EQUAL NUMBERS OF
BOTH
INCOME – HIGH, MEDIUM OR LIMITED BUDGET
STATUS - SINGLE, COUPLE OR FAMILIES
TYPE - INTERNATIONAL(TOURIST/CONFERENCES)
AND ORIGIN, DOMESTIC AND ORIGIN
INTERESTS - WHAT INTEREST THEY HAVE –
FOOD, SIGHT SEEING, SHOPPING, BARS, Etc
• YOU WILL NEED TO DO THE ABOVE EXERCISE
FOR EACH MARKET YOU ARE SEGMENTING VIZ.,
CONFERENCE, CORPORATE, LEISURE, GROUPS,
INBOUND ASIAN & WESTERN, LOYALTY CARDS,
BOOKING AGENTS Etc
• KNOWING YOUR CUSTOMER PROFILE IS CRITICAL
FOR SERVICE & MARKETING –it is pointless sending
SMS if you are targeting senior citizens as your market
• REMEMBER – CUSTOMERS WILL BUY A PRODUCT
THAT WILL NOT ONLY SATISFY THEIR NEED BUT
ALSO PROVIDE VALUE AND MEET EXPECTATIONS
AS A MINIMUM. MODIFY PRODUCT TO SUIT YOUR
MARKET’S DEMANDS & NEEDS – E.g. – Cable TV,
Internet, Mini Bar, Room Service etc –
CONVENIENCE IS ALSO A KEY-
• ULTIMATELY FOCUS IS ON PROVIDING QUALITY
SERVICE AS THIS IS YOUR ‘USP’ – Unique Selling
Proposition – this with intangible value adds immense
value to your product – It is not “bricks and mortar’ – it is
people who make the difference
ASK YOURSELF
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PUT YOURSELF IN YOUR CUSTOMERS SHOES AND ASK:
WHAT WOULD BE MY NEED AND EXPECTATIONS?
WAS I MADE TO FEEL SPECIAL?
DID I RECEIVE A DESIRED OR PREFERRED STANDARD OF
SERVICE?
CUSTOMER NEEDS ARE CONSTANTLY CHANGING – AND SO
ARE YOURS - REACT
• YOUR ANSWERS TO THESE QUESTIONS WILL PROVIDE YOU
WITH THE BEST ANSWER TO APPROACH AND PROVIDING
“QUALITY CUSTOMER SERVICE FOR EACH CHOSEN MARKET
SEGMENT OF YOUR BUSINESS ”
MARKETING- UNDERSTANDING THE
NEEDS OF YOUR CUSTOMER
1. UNDERSTAND THE NEEDS OF YOUR
CUSTOMER – Firstly – Who are they, where
do they come from, what is their minimum
satisfaction standards?
2. FOCUS ON YOUR USP – this should be your
guiding source for all business decisions.
3. FOCUS ON YOUR STAFF – it is them who will
look after guests who in turn will return and
also be silent advertisers for your hotel