Download HTDM - DECA Ontario

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Performance indicators for HTDM
Analyze product information to identify product features and benefits
Participants should use the facts from the case for each product line to identify how the
proposed destination will benefit the multi-generation family. They should consider the
types of activities provided teach destination and the appeal for people of various age
groups. Solutions should specifically state how the chosen destination appeals to each
generation
Participants should identify the destinations they believe would be most successful and
least successful based on their analysis of features and benefits to each generation.
Analyze room sales/occupancy rates.
2 Ask for a booking
Assess customer/client needs.
Assess information needs
Determining who users of the information will be
What type of information is needed and what they plan to do with the information
What type of information is already available?
Costs involved
Timelines (how soon do they need the information?)
A needs assessment is a systematic process for determining and addressing needs, or
"gaps" between current conditions and desired conditions or "wants". The discrepancy
between the current condition and wanted condition must be measured to appropriately
identify the need. The need can be a desire to improve current performance or to
correct a deficiency. A needs assessment is a part of planning processes, often used for
improvement in individuals, education/training, organizations, or communities. It can
refine and improve a product such as a service a client receives. It can be an effective
tool to clarify problems and identify appropriate interventions or solutions. By clearly
identifying the problem, finite resources can be directed towards developing and
implementing a feasible and applicable solution. Gathering appropriate and sufficient
data informs the process of developing an effective product that will address the
group’s needs and wants. Needs assessments are only effective when they are endsfocused and provide concrete evidence that can be used to determine which of the
possible means-to-the-ends are most effective and efficient for achieving the desired
results
In this case there are 2 sets of needs to be assessed. The needs of those seeking
information on the companies through the evaluations of others, and the needs of those
companies in wanting fair and ethical assessments.
Build a brand
 The brand should include the company’s a vision, goals and target market
 Symbols, such as a logo, and slogans should be used to communicate the service’s
qualities
 The brand’s benefit to the company should be clearly stated
Conduct walk-through for on-site tour.
Control the use of supplies.
2 Convert customer/client objections into selling points
 Presenter should discuss the benefits of the product
 Disadvantages should also be discussed
 Present higher quality products for a lesser price
3 Coordinate activities in the promotional mix
The four elements of the promotional mix are: advertising, sales promotion, publicity,
and personal selling. All elements used should be coordinated to achieve the company’s
goals. All initiatives should be coordinated to target the identified markets, clearly
communicate the same underlying message.
 Advertising includes any paid presentation and promotion of ideas, goods, or
services by an identified sponsor (Ex. Print ads, radio, television, billboards etc)
Place advertisements that would appear locally promoting the award-winning
coffee in newspapers, direct mail, posters/billboards Recognize that TV ads
would be created for national chain by the national chain itself
 Sales promotions Incentives designed to stimulate the purchase or sale of a
product (Ex. Coupons, sweepstakes, contests, rebates etc. Offer sample coffee
taste cups at popular local events and venues) . Sales promotion includes media
and non-media marketing communication in order to increase consumer
demand, stimulate market demand or improve product availability
 Public relations includes paid intimate stimulation of supply for a product,
service or business unit by planting significant news about it or a favourable
presentation in the media and sometimes include direct marketing and
sponsorship Contact newspapers and radio stations to come review or feature
the restaurant or Sponsor local events
 Personal Selling is a process of helping and persuading one or more prospects to
purchase a good or service or to act on any idea through the use of an oral
presentation (Ex. Sales presentations, sales meetings, sales training) Each
waiter should up sell by recommending products, especially our award-winning
coffee
Participants should describe a variety of creative ideas that address all areas of concern.
Coordinate channel management with other marketing activities
Students should indicate that marketing activities (includes all Advertising, Publicity,
Selling and Sales Promotions - contests, coupons, discounts – expanding to new sales
outlets, making changes to product or service design, function, etc) need to be coordinated
or sequenced effectively. Customers need to be made aware of any changes and given
enough time to understand, ask questions and adjust. As a result changes should be
communicated effectively and all sales channels should be consistent.
It is important to coordinate channel management with other marketing activities to ensure
alignment of promotion and communication of information to customers, and to reduce any
channel conflict. It is important to set goals, set up communication policies and procedures,
and monitor performance. The messages communicated must be consistent with the
marketing activities they support so that customers do not receive mixed messages and feel
frustrated in the process. This might include important details such as the date, time, and
location of events that are critical to organizing the audience to attend
These channels need to be re-examined during busy seasons, changes in location,
redecorating / renovation, changes in suppliers,
You can email customers, put up signs and flyers, give out coupons, local newspaper ads,
local radio ads.
Coordinate selling effort with other departments
2 Demonstrate a customer service mindset
A service mindset is an outlook that focuses on creating customer value, loyalty and trust.
A business with this outlook wants to go beyond simply providing a product or service. It
wants to create a positive and indelible imprint in the customer's, or even in the prospect's
mind. To do this, a business has to care about the customer or prospect experience and
work continuously at enhancing it
 Listen carefully to the customer’s complaint and acknowledge that you are there to
help—in this case that the business meeting has been disrupted
 Explain that you appreciate and value the business that the customer has given you and
that you would like the relationship to continue
 Provide customer surveys to get feedback from the customers. This could be done by a
card with the bill, a website address or a phone call to important customers. There could
be an incentive such as a discount or free dessert if they fill out the survey
 Use interpersonal skills to handle customer requests and questions, Understand
management’s role in customer relations, understand procedures for handling difficult
customers, explain business policies to customers and handle customer complaints.
 you should view negative customer interactions as opportunities to learn even more
about the customers’ needs and expectations
Demonstrate communication skills
Demonstrate suggestion selling
 You will suggest to the customer that you have many other watches that will suit the
purposes of a graduation gift
 You will explain that with the number of stores your company has throughout the
country, you will be able to meet the needs of their request
 You will offer incentives to keep the customer from going to another store to
purchase their gift, such as complimentary gift wrapping or a free first time battery
change on their watch
 You will offer to clean their jewelry free of charge while head office is trying to
locate the watch
 You will offer them a discount on a future purchase as a result of their
inconvenience. This will be an incentive to get them to return to your store for a
future purchase and to keep them as a customer
 You will be polite and remain calm throughout this entire experience
2 Describe current issues and trends in the hospitality industry
 Students should report the information in the case which is that there is an increased
demand for family travel and hotels that target families
 Students should also report that the competition for business travel accommodation is
increasing and is intense
 Students can make reference to the current economic downturn and how it has reduced
the amount of money North Americans are spending on vacations. This is causing the
percentage of vacations taken in North America by North Americans to increase
Other current trends in hospitality include the use of websites to view and book
accommodation, and the extension of customer service while clients are staying
Describe data collection methods
Data collected may be secondary or primary and may come from sources within or outside
the business. Once new information and data are obtained it must be analyzed for the
business to use.
Data can be collected in various ways including:
 Surveys – on paper, via email, phone, asking questions as customers leave the store, etc
 interviews
 experiments (eg. selling a couple of the new items in store and assessing how well they
do)
 focus groups
 Participants may also include the importance of ensure that any sample group is
representative of the population that they are studying
 A large amount of data is also collected through points cards and credit and debit cards,
and sold to marketing firms.
2 Describe factors used by businesses to position corporate brands
Branding is all about creating unique identities and positions for products and services,
hence distinguishing the offerings from competitors. Hence a corporate branding
strategy can enable the corporation to further leverage on its tangible and non-tangible
assets leading to branding excellence throughout the corporation
The main factors that go into defining a brand position:
 Brand Attributes: What the brand delivers through features and benefits to
consumers
 Consumer Expectations: What consumers expect to receive from the brand?
 Competitor attributes: What the other brands in the market offer through features
and benefits to consumers
 Price: An easily quantifiable factor – Your prices vs. your competitors’ prices
 Consumer perceptions: The perceived quality and value of your brand in
consumer’s minds (i.e., does your brand offer the cheap solution, the good value for
the money solution, the high-end, high-price tag solution, etc.?)
 Quality image/products –
 Logo, slogan, unique storefronts/layouts
 Product appeal
 Control - promotion
Describe factors used by marketers to position products/businesses
 Students may define the term positioning in light of the case – they will define the
characteristics of the good/services being offered by the bookstore
 Marketers must determine whether or not they will take a stand and position their
products
 Marketers must determine who they will position the store to and what
goods/services will be offered to the target group
 Determine why their positioning is relevant for their target consumer
 Ensure that their positioning is clear so that the target consumers will understand
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Marketers must also position their product in a way that is distinctive – without a
unique position, consumers do not have a reason to choose their product
Describe how customers evaluate service quality
Describe options businesses use to obtain marketing-research data
Primary Research and Secondary Research methods are good starting points. In
conducting primary research, the participant could create surveys, questionnaires, focus
groups or do test marketing. Secondary research can be conducted by doing online
research, by reading case studies, by analyzing periodicals, etc. Secondary research can
also be purchased through Market Research firms. Primary research can be conducted at
the point of sale by asking for basic demographic data like postal codes. In this case,
participants could be asked if they are currently students of the university (as this is an
issue in the case – mainly university students). This information could be used to devise a
strategy to attract alumni, town residents, etc
Data collected may be secondary or primary and may come from sources within or outside
the business. Once new information and data are obtained it must be analyzed for the
business to use.
Data can be collected in various ways including:
 Surveys – on paper, via email, phone, asking questions as customers leave the
store, etc
 interviews
 experiments (eg. selling a couple of the new items in store and assessing how well
they do)
 focus groups
 a large amount of data is also collected through points cards and credit and debit
cards, and sold to marketing firms
Participants may also include the importance of ensuring that any sample group is
representative of the population that they are studying
Describe services offered by the hospitality industry
 Comfortable accommodations that are currently moving towards the trends of
replicating the comfort of a “home” atmosphere
 A relaxing experience that allows consumers to rest and enjoy their time away from
home
 Many hotels accommodate hobbies like golf or other sports
 For senior consumer segment a relaxing environment should be the focus
Describe the components of e-commerce promotion.
Describe the consumer purchasing process for services.
Describe the expanded marketing mix for services
Describe the nature of current economic problems
Describe the nature of target marketing in the hospitality industry.
Describe the nature of the hospitality industry.
Describe the need for marketing information
Without marketing information, businesses are left with no ability to anaylse customer
profiles. Marketing information is needed to understand the consumer and to therefore
improve the product or the service in ways that will satisfy consumers. Marketing
information is also crucial in order to plan and carry out successful and cost effective
Promotional efforts – how do you advertise if you don’t know who you are trying to
reach? Marketing information informs businesses about sales trends and patterns and
helps perfect the timing of re-ordering or discontinuing products. Marketing information
can inform businesses about pricing levels and a customer’s perception of value
Marketing information management is a fancy term for managing data and information
about customer attitudes and development of new products. Marketing research can be
done of a formal or informal basis within small and large companies. For large businesses
that utilize formal research, the procedures and outcomes must be organized so the
business can make sense of the findings and benefit from the research
Students should mention the importance of collecting information about customers. The
more a business knows about its customers, the better it can tailor its products and
services to them. It can deliver products and services to meet and exceed customer
expectations. This information also helps the business reach out to potential customers
because it informs them about the customer profile of the target market
Describe the rights of customers in the hospitality industry.
Describe the role of business ethics in pricing
There is a general consensus that marketing strategies must not infringe on values like
honesty, transparency, and autonomy. As such, the main crux of pricing ethics concerns
the establishment of a balance of power (through information) between the producer and
the consumer. In a completely free market, producers often have the upper hand because
they are in control of their products and processes. This potentially lead to unethical
practices (using cheap or harmful materials, lying about benefits, etc.), which are deemed
harmful for society as a whole
A business operating in today's competitive environment might be tempted to try a variety
of unethical pricing strategies to increase market share and profits. But operating just to
pursue the company's self-interest can result in decreased trust by customers and lawsuits
that take up company time and money to defend. Developing an ethical pricing strategy
from the start can help avoid these pitfalls
Pricing ethics involves examining what constraints are needed on the pursuit of market
share and profits when the actions of a company affect others adversely. For example, a
company that has a monopoly on a particular product with few, if any, direct competitors’
needs to think carefully about raising prices if the price change cannot be justified.
Justification may be an increase in labor or material costs that can be demonstrated clearly
to customers
 Customers must perceive that they received fair value for their money
 Buyers and sellers should both be satisfied
 Customers should not experience buyers’ remorse
 No price gauging
The participant should recognize that the following situations can be viewed as unethical
when providing prices to a customer. This includes (but is not limited to) the following
practices:
 assessing fair market value for the services/products provided (no price fixing)
 phantom bookings – telling the customer that there are others interested in their date
when there are no others
 anti-favouritism – ensuring that all customers receive similar pricing regardless of
financial situation (i.e. not charging someone more because they are presumed to have
more money)
 not disclosing all costs up front
Describe the steps in conducting marketing research.
Describe the use of technology in the channel management function
From a business and technological standpoint, perhaps the most significant change has
stemmed from the rise of digital. We now live in a world where more than four billion
people own mobile devices (a quarter of which are smartphones) and another billion
have Facebook accounts. Whether marketers like it or not, the “digitization of
everything” is having a profound effect on direct marketing—from the strategies and
tactics down to the individual communication channels. Technology has its impact in
the direct marketing channel. It can be in the form of:
 Banners on websites and social network sites
 Social networks like Facebook and Twitter
 Email campaigns having bought selected e-mails
Technology has created a new channel of distribution known as e-tailing where
customers and industrial buyers make purchases using the Internet. The online shopping
location is known as an e-marketplace
Use of the internet by the customer provides greater convenience to the customer as
they can shop from the convenience of their home, at any time of day. E-tailing also
provides benefits to the business as orders can be received and processed electronically.
4 Describe the use of technology in the promotion function
The internet, websites and most recently social networking are common ways of using
technology in the promotion function. Interactive websites offer consumers a different way
to use or experience the product. Participants should be careful to not overuse and get too
technical with their use of technology given that many senior citizens use emerging
technologies such as the internet for email and basic communication and personal interest.
(They are participating in online gaming, for example)
 Computers-world wide web, on line advertising, online sales, on line catalogues
 Smart phones with updates on sales, promotions, timed sales, one day promotions
 Links from computers to store for updates on new merchandise and promotions
Determine customer/client needs
The participant should use the following strategies to indentify out what a customer/client
needs are:
 Questioning
 Observing
 Listening
 After carefully doing all of the above, vendors should continue to observe and listen
carefully while making suggestions of merchandise to the client
 They should listen for verbal and non-verbal clues and respond / alter their
responses appropriately
Determine potential lodging markets
 Presenter must first identify potential target markets
 The needs of each market should be discussed and how the services and activities
planned will benefit the potential markets
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Markets can include conference and non-conference guests
Business customers require conference/meeting space and office amenities, event
planning assistance
 Hotels often partner with travel agencies world-wide to create packages to meet the
needs of tourists, families
Determine services to provide customers
In order to meet the needs of the customer in todays Hospitality industry there are many
facets to be considered.
 Create a “healthy value menu”
 To attract customers to the newer products, we can offer a different healthy product at a
reduced price for each day of the week
 Always provide the best service for the customers. Create a pleasant atmosphere, and
treat the customer as king/queen
 Services include short and long term rental for individuals and/or groups
 Group services for companies require office equipment availability, Internet service
and perhaps event management assistance
 Information about and assistance with area amenities should be available (discounts)
 information about rental of equipment, walking trails, historic sites should be available
 long term rentals would require laundry facilities
 dining room needs to provide for a variety of dietary needs e.g. vegetarian
 community dining room provides a form of entertainment for guests and a unique
dining experience not found in other restaurants
Determine the factors affecting business risk.
Determine the initial feasibility of a product idea
 Students can identify that feasibility studies are part of the new product generation
process. This process includes things like idea generation, product design and product
engineering
 The feasibility study should include Marketing research which (both primary and
secondary) is done to determine whether or not a new product is likely to be purchased
or to be successful.
 The feasibility study also includes an analysis of the costs of developing the new
product and what price to charge as a result.
 The feasibility study also considers the existing product line and how the new product
will fit in
 The benefits of expanding the product line surpasses the costs to introduce the product
 Important to gain back part of the market share taken by the competitor
 Don’t need to introduce a lot of products, just a few that are well researched and that
will attract our target market
Develop a project plan
 Recognize that incremental improvements are not always sufficient to address the
(fundamental) problems in a business
 Identify clear objectives for what the project will be about; improving the way the store
is operated from the customer’s perspective from the staff perspective, and from
management perspectiv4e
 Identify steps that will need to be taken to achieve the desired results
Develop an advertising campaign
Develop business plan
Develop company objectives
2 Develop strategies to position a product/business
Positioning refers to the process by which marketers try to create an image for their
product in the minds of their target audience. The participant should develop a creative,
business-related solution on how to make Old Towne Frozen Pizza stick in the minds of
their target market. Some ideas include (but are not limited to):
 how the product can enhance family life by bringing the family together to dinner table
 how the product can benefit the customer by allowing them to spend more time with
their family/friends with the same food instead of waiting at the restaurant
 the product brings “gourmet food” into the home (“Straight from our oven to yours.”)
 Target market – position product to attract consumers who are environmentally
conscious and concerned about nutrition and animal welfare
 Consumers want to choose products which suit their “ethical” view of life – disposable
income at level to be able to choose more expensive alternatives in food products
 Niche market – green marketing
 High quality – higher price
 Convenience food – portable
 Explain how the customer will be attracted to purchase the products/patron our
restaurant
 Take advantage of the history of our business (20 years), and that we are local and
popular
 Promote the popular products that have lasted and the new ones being introduced
 A product's position is how potential buyers view the product and is expressed relative
to the position of competitors
 How did the participant position the product? Was it through product attribute, price or
quality, product user, respect to competitors, etc?
 Did the Participant list significant competitors and describe their position in the market
 Did they describe current product/service position in the minds of customers?
 Did the participant identify an attribute that differentiates the business from its
competitors?
 Was target market considered?
Differentiate between services and customer service
Discuss internal and external audiences for public relations activities
Public relations activities are designed to influence the perceptions of a specific group of
people. Activities can be created for Internal or External audiences. An internal audience
is a company’s employees. For example, a company may create a public relations
campaign to change attitudes or create awareness of policies for employees. In this case,
the participant should discuss the importance of creating a campaign that demonstrates:
 Measures the company is taking to ensure future employee safety
 That the company cares about the employees welfare
An External audience is a market of consumers. In this case, the participant will want to
discuss ways that (and the importance of) Venture can create a public relations campaign
to improve the company’s image for this group. It would be important for the company to
demonstrate:
 It is taking responsibility for the accident
 It is assisting in cleaning up or reversing any environmental damage
 It is helping those in the community who may be affected by the accident
Discuss motivational theories that impact buying behavior
Consumer motivation is linked to Maslow's "hierarchy of needs." According to this model,
motivational drivers have different levels of importance. The most common needs are
physiological and concern basic survival--the need for food, shelter and safety. Higherlevel needs include social ones (for relationships and love), esteem needs (recognition and
status) and self-actualization needs (fulfillment of self). According to Maslow, an
individual must meet lower-level needs before being motivated to fulfill higher-level needs
Motivational Levels
 Depending on how important a purchase is to an individual, his motivational levels may
vary from low to high. Influences include familiarity with the purchase, status factors
and overall expense and value. Where fulfillment rewards are low, as with groceries,
motivation levels are also relatively low and involve little decision-making behavior
 The behavioral aspect of consumer motivation concerns the actions someone takes
before purchasing and consuming goods or services. A person might do a lot of
research--evaluating alternatives, testing and sampling--before making a selection. She
might decide to buy something based on which goods or services most closely meet and
satisfy motivational wants and needs. Marketers aim to gain the most impact and
eventual sales by linking their products and services to clearly defined consumer needs
and by understanding what motivates people to buy
 Motivational levels differ greatly between individuals and are influenced by many
external variables. These include the social value of making the "right" decision, beliefs
about brands and alignment of brand values and personal values. If other people are
involved in the decision, their motivation also affects the behavior of the primary
consumer
They may also identify categories of buying motives such as rational or emotional reasons
why people eat out and choose one restaurant over another. The key to any business is that
they must have a plan to try and understand what consumers are willing to pay for and to
try and satisfy their needs. It is not enough to simply open a restaurant and hope customers
will come. You have to give them a reason. Maslow is the obvious choice given its
popularity in business textbooks.
Participant could mention the factors that motivate consumers to purchase without actually
naming a theory or theorist. What needs are satisfied when consumers save money on
special deals – needs/benefits.
Discuss the nature of customer relationship management
The key word in “customer relationship management” is management. If you want
satisfied customers, an effort must be made to find what they want. Initially, they are
facing some dissatisfaction at the implementation of their new marketing plan. Two things
should have happened or must still happen
 The new plan is causing some concern with both the new and old customers. It is time
to evaluate the plan to see what possible adjustments could be made (see question 3).
Unless these issues are solved, there will continue to be complaints from both
customers (and staff) and the situation will be expected to deteriorate. A plan must be
formulated
 Training sessions are necessary for the staff. Food preparers will have to find ways of
getting the food out faster. Wait staff should discuss the implications of dealing with
younger clients. Shift managers could be more aware of seating customers in certain
areas and possibly of adjusting work schedules to have certain staff on or off shift
during the promotion
The owners must truly want to improve relationships with their customers and must take
the lead and set the example
Discuss the nature of information management
Information management is the collection and management of information from one or
more sources and the distribution of that information to one or more audiences. It also
refers to the organization and control over the structure, processing and delivery of
information. Students may summarize this be saying that IM is the ability of a business to
use information about its products, customers and competitors to its advantage
 Could include gathering, storing and distributing information
 May be electronic or physical
 Managing the information that a company has (collecting, organizing, composing,
analyzing)
 May come from various sources
 May be distributed to one or more audiences
 Contributes the organization’s goals
 Use of information within an organization
Discuss the nature of information management
Information management is the collection and management of information from one or
more sources and the distribution of that information to one or more audiences. It also
refers to the organization and control over the structure, processing and delivery of
information. Students may summarize this be saying that IM is the ability of a business to
use information about its products, customers and competitors to its advantage
 Could include gathering, storing and distributing information
 May be electronic or physical
 Managing the information that a company has (collecting, organizing, composing,
analyzing)
 May come from various sources
 May be distributed to one or more audiences
 Contributes the organization’s goals
 Use of information within an organization
2 Discuss the nature of sampling plans
 A sampling plan is a detailed outline of what data will be collected, when will it be
collected, how will it be collected, who will collect it, where it will be collected and
why or for what purpose will it be collected.
 Students should have a plan for the collection of the marketing information and should
be able to describe the staging and sequencing of their proposed solution
Employ communication styles appropriate to target audience
The participants should discuss appropriate methods for the desired audience. In general,
some questions that should be considered regarding your audience are:
 How important will the audience see your message as being?
 Does your communication ask the audience to take some action?
 How much information does your audience need?
 What obstacles must you overcome with the target audience?
 What are the benefits to your audience of what you have to communicate?
 How will your audience use this information?
 What method of communication is best suited to this message?
 In addition, you should consider how formal and how detailed you wish your
communication to be. Use language and terminology that are appropriate to the
audience
Encourage team building
 Did the student explain the benefits (i.e. increased productivity, sales, # customers,
etc.) of team building?
 Did the student explain strategies for successful team building?
 Explain team building skills –
o Purpose – what are the shared goals?
o Empowerment – provide clarity and structure, establish roles, encourage
accountability
o Relationships and communication – hold meetings to keep team cohesive
o Optimal performance – shared accountability, performance depends on
clear goals and timely feedback
o Recognition and morale – recognize team’s efforts with compliments or
even weekly discussions on what they are proud of accomplishing
Establish relationship with client/customer
Explain business ethics in selling
 e.g. the salesperson must be truthful in its communications with his clients. Should he
then proffer that Grenadier may not be around to honour the gift certificates?
Salesperson needs to follow company policy, but is it ethical to continue selling gift
certificates when there is uncertainty they can be honoured?
 Is the company adhering to correct business practices?
 Does the company have a Code of Business ethics?
 Have customers been informed of policy prior to purchase of a gift certificate
 Is the gift certificate policy posted in the store for customers to see
 Easier to keep customers than get new ones
 Honesty builds trust between customers and the company
 A company must ensure that none of their claims are fraudulent
 In this case:
 The company was ethical because both options were provided and free software was
provided for a year. Customers must expect the company to make a profit
 The company needs to research how many customers renew after the two year
subscription or were they angry enough to not renew
Explain characteristics of effective data-collection instruments.
Explain external planning considerations
 External planning includes the logistics required to successfully execute the discussed
events, activities and services
 Considerations can include related costs, hiring additional employees and advertising
2 Explain factors affecting pricing decisions
Pricing depends on the objectives of price as it relates to the businesses profitability. The
image of the business, supply and demand, the stage of the product life cycle, and the
expense related to the product are all considerations.
Four factors: costs/expenses; supply and demand; consumer perception; competition
Pricing is a competitive tool – indicates quality to the consumer; is a function of supply and
demand; position of the company in the market place; laws in place, break even point;
economies of scale
Participant should mention some of the above and how they affect the ability of the
restaurant to offer specials on an on-going basis. They want to increase demand by
increasing the number of patrons ordering before 5:00 pm, but cannot exceed capacity
The participant should recognize some or all of the following factors:
 profit
 variable and fixed costs of the goods and/or services
 competition
 business law and ethics
3 Explain factors that motivate people to choose a hospitality site
 Location (proximity to other sites)
 Quality
 Price
 Availability
Explain hotel security considerations
Explain how businesses can use trade-show/exposition participation to communicate
with targeted audiences
 trade shows are a form of promotion
 used to communicate with current and potential customers
 geared to attract people with a defined set of interests (expectant parents in this case)
 allow potential customers to see and touch products, get information, and compare
products from a variety of companies
 present an excellent opportunity for businesses to attract potential customers who may
not have otherwise been aware of your product
 present an excellent opportunity to introduce new products to a receptive audience
 present an excellent opportunity to build a database of potential customers, that can be
used for further marketing efforts
Explain how organizations adapt to today’s markets
Participants should discuss ways that organizations adapt to today’s markets. A business is
constantly engaged in the process of renewal when they choose to use this data. Suggested
responses may include:
 Using tools like SWOT analysis and environmental scans to identify ways the business
can improve
 A SWOT analysis assesses a company’s strengths and weaknesses and the opportunities
and threats that surround it
 An environmental scan is an analysis of outside information that may have an impact on
an organization
 Utilize market research and analysis of consumer, competition and marketplace
 Determine the 4P’s of marketing as related to their organization and product:
 Product, price, place (distribution) and promotion
 Determine the 3C’s of their market strategy analysis
 Company, competition and customer
o In this case, market research of their store location and consumers
would be needed, utilizing the 4P’s and 3C’s of marketing / focus on
place, competition and customer
Explain key factors in building a clientele
People eating in a restaurant are making a choice. This is normally not a matter of
necessity. Therefore, they will choose to eat at this restaurant if their needs are being met.
Some of the more obvious reasons they would have are:
 The food is good
 The prices are right
 They enjoy the ambiance and feel welcome
 They know the owners
 They respect and support the restaurant as a member of the community
 They want their children to be exposed to different dining situations
 They don’t feel like cooking themselves
If the restaurant owners and management want to rebuild their clientele, they must address
these (and perhaps other) issues
Students need to demonstrate an understanding of why customers will patronize a business;
ie, what can the business do to continue attracting and keeping customers. It will not be
enough to advertise to attract new customers, it is also necessary to satisfy them in order to
keep them coming back frequently. Eating out is not a necessity. Consumers have a choice
as to where to spend their money and they will generally do so in a place they enjoy.
 The market (consumer attitudes) could be changing, and what has worked in the past
is no longer popular.
 The demographics (types of customers in the area) may be changing (aging?)
 There will likely be new competitors that may be trying to copy your success Ensure
every customer has a pleasant experience at the restaurant
 Relate to creating brand loyalty by providing an excellent product with supreme
service in an amazing atmosphere
Students could also be more specific and include examples of different types of events or
promotions the restaurant could use. Just like retail stores change their window and interior
displays, even a restaurant has different things they can do to give the customers a new look
or feel
This case tries to deal more specifically with having the proper menu items.
 Did the student explain and develop a defined plan for building and keeping
customers?
 Did the student address issues related to competition and competitive advantage?
Explain measures used to analyze economic conditions
Explain promotional methods used by hotels/motels
Explain the concept of competition
The rivalry between two or more businesses to gain as much of the total market sales or
customer acceptance as possible Helps to maintain reasonable prices, provides
consumers with new and improved products, and results in a wide selection of products
from which to choose. Forces businesses to operate efficiently. In this case there is a
competition between the companies being evaluated, and the evaluations can have a
great effect on competition
Competition

Did the student discuss the pros and cons of competition?

Did the student address issues related to competitive advantage?
Competitors

Who are the direct/indirect competitors?
What target market are they competing for?.
3 Explain the concept of Market and Market Identification
 Market is the term which makes reference to your actual and potential customer base
 Market identification is the process of identifying existing or potential customers
 Market segmentation – target a specific group of potential customers – divide the total
market into smaller groups of people who share specific needs and characteristics
 Geographics – segmenting a market based on where people live – locally, regional
 Demographics- characteristics of a population – age, gender, income, ethnicity,
education and occupation
 Psychographics- study of consumer’s lifestyles and the attitudes / values that shape
it
 Product benefits- features built into products to suit the needs/wants of consumers
 Niche Market (very high end users) and Micromarket (local and individual) are two
additional means of segmenting the market
Explain the concept of marketing strategies
An organization's strategy that combines all of its marketing goals into one
comprehensive plan. A good marketing strategy should be drawn from market research
and focus on the right product mix in order to achieve
the maximum profit potential and sustain the
business. The marketing strategy is the foundation of
a marketing plan
Your marketing strategy is an explanation of the
goals you need to achieve with your marketing
efforts. Your marketing strategy is shaped by your
business goals. Your business goals and your
marketing strategy should go hand-in-hand
A marketing strategy is a process that can allow an organization to concentrate its
limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered on the key
concept that customer satisfaction is the main goal
A marketing strategy is most effective when it is an integral component of firm
strategy, defining how the organization will successfully engage customers, prospects,
and competitors in the market arena, corporate strategies, corporate missions, and
corporate goals. As the customer constitutes the source of a company's revenue,
marketing strategy is closely linked with sales. A key component of marketing strategy
is often to keep marketing in line with a company's overarching mission statement
Bottom line: think of the definition of marketing strategy as the high-level rules that
direct your marketing activities. For example, if there’s a single influencer who touches
all your customers and has a significant impact on the way those customers try to solve
their problem... one of your strategies may be to focus on building a strong relationship
with that influential individual or company
Marketing strategies are the chosen mix of short-term and long-term marketing
activities coordinated to achieve the goals of the business. The strategies used vary
depending on the stage of the product life cycle, nature of competition, and availability
of resources to commit to marketing efforts. Examples of strategies include but are not
limited to:
- Market Introduction Strategies – the primary goal of these strategies is to
increase awareness of the product and entice potential customers to try it
- Market Growth Strategies – the primary goal of these strategies is to encourage
continued use of the product and increase new sales
- Differentiation Strategies – the primary goal of these strategies is to emphasize
competitive advantages over competitors to sway the potential customer in the
company’s favour
Market Dominance Strategies – the primary goal of these strategies is to emphasize the
organization’s leadership in the market and aggressively maintain that position
Explain the concept of private enterprise
Private enterprises are organizations owned and operated by individuals and not on behalf
of government institutions. Individual people earn profit or provide services on a not for
profit basis for their own benefit
Explain the concept of product in the hospitality industry
 Students should mention that the concept of product in the hospitality industry includes
all things a business offers to its customers and all the services it provides
 Delivery of the product begins before or at the time the customer begins his stay and
ends after the customer has checked out with follow up
4 Explain the concept of product mix
A product mix is a range of related products that when sold together yields larger sales. For
example, selling a chicken burger in a combo as opposed to individually
A product mix is the full list of all products offered for sale by a company. In this case, the
product mix will also include the service of catering. A product line is a group of
goods/services in the product mix that have some kind of similarity. A product is the
individual unit. The product mix can have both width (variety of products or product lines)
and depth (the assortment of items offered within the product mix).
Width – what are we offering? Do customers pick up the food or do we deliver? Will
serving the food be done by the customers or do we provide staff?
Depth – what food will be offered: current menu, additional items (party favours, napkins,
cutlery). These decisions will also include the types of functions (dinners, parties,
company meetings or picnics)
All the different products a company sells
Product line – group of related products – in this fast food restaurant – the burger line
Depth – adding Tasty Pork is an example of product depth
Participant should identify Pork Tastyas product depth – and indicate whether or not it is
consistent with the company image and other products in the line
Likely, participant will mention R&D requirements, surveys, branding, etc. – all factors to
be considered when adding to product offerings
Students would be expected to give a definition of product mix, and perhaps some related
terms such as product line. A product mix is the full list of products offered or sale by a
company while a product line is a group of similar products. There are certain economies
of scale in keeping the number of items offered for sale to a minimum (McDonalds
originally only sold 9 separate items), but today’s customers are more sophisticated and
demanding. The addition of other product lines (healthier foods) would attract more
customers (especially from their competitors)
Product mix is a specific marketing term that is defined as all of the different products that
a company makes or sells. This will include not only our food, but other items that will
reflect on our image; for instance, customers that would be interested in low-fat foods
might also be interested in using containers that didn’t harm the environment. This would
include washable cups, plates and silverware along with recyclable products for take-out
items. It would also be important to provide a mix of goods that reflects the preferences of
consumerse
Explain the concept of productivity.
Explain the employee’s role in expense control
Participants’ should begin with an explanation of the importance of expense control as it
relates to this case. Points may include:
 If employees are trained on safety precautions and procedures and feel that they are
supported with a safe work environment, there will be less personal injuries, more
awareness of their surroundings and therefore less damage to inventory
 Less injuries leads to less employee absenteeism and a salary expense that is
reflective of a productive workforce
 Less damage to inventory leads to controlled expense of damaged inventory
It is the company’s job to train these employees, and it is the employees’ responsibility to
use the skills and know-how to help control such expenses
Explain the importance and limitations of marketing research
Explain the importance of risk and profit.
Explain the nature and scope of pricing
 Price is the value of a product expressed in dollars and cents
 Price is what the guest must pay
 Businesses may charge a high price (prestige pricing or skimming) to evoke an image
of luxury
 Businesses may charge a comparative price (competitive pricing)
 Businesses may charge a low price (penetration or discount pricing)
 In this case, multiple pricing strategies are used. Prestige pricing is used for those
customers that purchase in advance and are guaranteed their vacation. Discount pricing
is used for guests that book at the last minute using Priceline or other discount websites
3 Explain the nature and scope of the pricing function
Pricing involves the value of money placed on a product or service. The function of pricing
involves the strategies used to set prices of products, pricing computations such as discount
and markups, and the overall relationship between pricing and the company’s profitability
Participants should be able to identify and explain factors affecting pricing in this
situation. The participant’s answer may include (but is not limited to):
 overhead costs
 market value of goods (meats, vegetables, seasonal items, etc.)
Integral part of the 4 p’s
Determines ultimate success of restaurant and customer loyalty
Must cover costs, be competitive and offer a profit
Participant should some mention of the above information and how it relates to pricing of
specials in this case. The discount price is likely a loss leader and must be managed if the
restaurant is to be viable in the long run.
Explain the nature and scope of the selling function
Participants should identify that the selling function provides consumers with the
products or services that they want or need. They should also mention that this includes
all members of the distribution channel. Participants should explain that the selling
process is a personalized communication and influences the purchase of a product or
service and future sales
Participants should identify the various levels of personal selling in the apparel
industry as it relates to the level of interaction with customers:
 Stores that promote a discount image – may have limited sales staff who offer little
service beyond checking out at the cash register
 Stores that attract customers interested in exclusive, ‘pricey’ items have sales
personnel to not only help customers make buying decisions, but also make
customers feel important
Participants should identify that the selling function is not necessarily the same for male
and female customers in a female clothing store and that differences should be present to
ensure that all clients are being served and all receive the same level of quality from the
sales experience
3 Explain the nature of a promotional plan
 Detailed plan for delivering your promotional mix
 identifies all the potential promotional activities in promotional mix, who will carry
them out, the costs, etc
 Calendar based, and is tied in to the buying plan (media, products, etc)
 It is coordinated with all the different aspects of promotion, with distribution and
inventory, staff being ready, store being set up properly
The participant should recognize most or all of the following components of a promotional
plan:
 description of promotional methods
 associated costs and budget
 explanation of how promotions relate to objective
 measure of success; maximizing return on promotional efforts
An outline of the marketing tools, strategies and resources that a company intends to use to
promote a product or service. A promotional plan is usually considered a vital planning tool
by most business managers that helps contribute toward the successful launch of a new
product or service or its expansion into a new market
Promotion is one of the market mix elements or features, and a term used frequently in
marketing. The marketing mix includes the four P's: price, product, promotion, and
place.[1] Promotion refers to raising customer awareness of a product or brand,
generating sales, and creating brand loyalty. Promotion is also found in the specification
of five promotional mix or promotional plan. These elements are personal selling,
advertising, sales promotion, direct marketing, and publicity.[2] A promotional mix
specifies how much attention to pay to each of the five subcategories, and how much
money to budget for each. A promotional plan can have a wide range of objectives,
including: sales increases, new product acceptance, creation of brand equity,
positioning, competitive retaliations, or creation of a corporate image. Fundamentally,
there are three basic objectives of promotion. These are:[3]
To present information to consumers as well as others
To increase demand
To differentiate a product
There are different ways to promote a product in different areas of media. Promoters use
internet advertisements, special events, endorsements, and newspapers to advertise their
product. Many times with the purchase of a product there is an incentive like discounts (i.e.,
coupons), free items, or a contest. This method is used to increase the sales of a given
product
Explain the nature of channels of distribution
A channel of distribution comprises a set of institutions which perform all of the activities
utilised to move a product and its title from production to consumption
 Channel 1 contains two stages between producer and consumer AAA has a large set of
client companies which provide roadside assistance to the client members of the club
 Channel 2 contains one intermediary. In consumer markets, this is the retailer towing
company, and service business They sell their services and expertise to the AAA
clients
 Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels.
In this case the manufacturer sells directly to customers. An example of a direct
marketing channel would be a towing and auto service companies selling directly to the
customer
Explain the nature of corporate branding
Corporate branding is the practice of using a company's name as a product brand name
it creates product brand recognition by use of the familiarity of the brand name. One
advertising campaign can be used for several products, all under the brand name. It
helps with new product acceptance because customers are already familiar with the
name
Dorm Outfitters has already established their company’s name with their existing
clientele. They should continue to use this corporate branding as it has favourable
recognition with their clients. New products, services and clientele that they develop
and introduce to their customers should be branded under the existing corporate brand
as the brand is already established and has positive recognition in the market.
Whichever retailer they choose has to meet the same standards.
Explain the nature of direct advertising strategies
 Direct advertising sends messages directly to customers without the use of media;
examples include direct mail, email and telemarketing
 Direct advertising also emphasizes a measurable response from customers
Explain the nature of direct marketing channels
Direct marketing occurs when the "producer" connects with the end user. The end user may
be a consumer or a business. Direct marketing applies to product and service oriented
businesses, and to nonprofit organizations. In all situations, there is no intermediary
involved. Direct marketing describes this interactive communication with the end user. The
participants could suggest several ways to use direct marketing channels including using a
direct sales force, catalogues, websites, email, direct mail, telemarketing, seminars, trade
shows, and other "one-to-one" techniques to communicate and sell to their customers and
clients
The participant should demonstrate an understanding of the method of selling directly to
the consumer without a ‘middle-man.’ The participant should also demonstrate an
understanding of which channels to communicate directly with the target audience
Explain the nature of hospitality and tourism marketing
2 Explain the nature of marketing planning
A marketing plan is a comprehensive blueprint which outlines an organization's overall
marketing efforts. A marketing process can be realized by the marketing mix. The last
step in the process is the marketing controlling
A marketing plan is the company’s strategy for positioning the product and encouraging
sales. It includes a determination of the product, price, place and promotion to be used.
This expectation is linked to the previous with the identification of the target market. The
marketing plan that is used should make sense given the target market that was previously
identified for each line. The product launch time should also be included in the marketing
plan
Some considerations for the marketing plan might include:
Product: May include identification of each product’s features and benefits: quality,
fashion, trend-setting, etc
Price: The price range has been given in the case for each line. Students may link the
price range to the target market they have identified
Place: can involve the positioning of each line within the shoe department of the store.
Solutions should be logical for the image created for each brand and may
include merchandising methods used
Promotion: refers to the combination of all methods used to attract and create desire of the
customer. This includes advertising, sales promotions, personal selling, etc.
Solutions must be tied to target market and be reasonable for the targeted market and
image to be created
Explain the nature of marketing research
Marketing research is the systematic collection, analysis, and interpretation of
data/information and is used to solve a marketing problem. Marketing research is
typically either Secondary or Primary. Primary Research is conducted first hand and does
not previously exist. Primary research methods include: Focus groups, product tests,
questionnaires and surveys, test marketing, product sampling, or other experimental or
observational methods. Secondary research is the use of information that has already been
collected by other people. Secondary research methods include: the internet, periodicals,
newspapers, databases, national census, etc
Explain the nature of marketing research
Explain the nature of overhead/operating costs
 Fixed costs that are “sunk costs”, i.e. already spent and not material in decision
making
 Arbitrarily assigned on a per unit basis for accounting reasons
 Will decrease on a per unit basis as unit produced increases; this will have no real
impact on business
 Explain the difference between fixed and variable costs
 Fixed costs do not fluctuate due to the number of items sold
 Variable costs fluctuate depending on the total number of items sold
Overhead costs and operating costs deal with different types of company expenses
Overhead costs generally relate to expenses necessary for the functioning of the business
but which do not help to directly generate profits. Typical of these would be rent,
gas/electricity, indirect wages). Examples of rising overhead costs would be for the
installation of security cameras or more expensive cash registers that would reduce
employee errors
Operating costs are the recurring expenses which are related to the production and sales
of a business, and therefore directly related to profits. These include direct wages,
advertising, and food preparation, such as our food preparers using too much of the
inventory to make our menu items. If too much food is put on a plate, or too much food
is wasted in making the food, our operating costs will rise compared to sales.
Since all costs will eventually reduce the amount of profit a business has, any expenses
the business has related to inventory control systems and shrinkage are important
Ideally, the money spent to install and implement these systems would more than make
up for the amount of shrinkage a company faces, but it still has an impact on the
efficiency of a business when one includes the additional time necessary to monitor and
administer these procedures.
 Overhead and Operating costs combine to add up to the costs of operating the
business
 These costs can either be fixed (overhead) or variable (operating)
 Overhead costs (fixed) must be paid regardless of the level of production or sales
o costs that remain the same for a period of time (insurance, rent, hydro,
water, heat, wages, taxes)
 Operating costs (variable) are dependent on the business’ level of production or
sales
o can change monthly depending on the needs of the business (advertising,
office supplies, utilities, packaging, labour salaries)
Explain the nature of positive customer relations
The participant should demonstrate an understanding of this concept through examples
A positive customer relations mindset means believing that your customers:
 Deserve the very best
 Are your employers
 Deserve your focused attention
 Have the right to expect things of you
 Have important problems and complaints
Positive customer relations yield benefits to the:
 Business
 Employees
 Customer
Businesses benefit by being:
 Employees may receive:
 customer compliments
 perhaps a raise or promotion for good customer service skills
Customers may benefit from:
 a more pleasant, satisfactory buying experience
Positive customer relations need to be demonstrated when speaking to customers in
person, over the phone, or online. It should also be evident while handling customer
complaints, inquiries and requests. Demonstrate good customer relations by doing the
following:
 considering and attempting to meet their needs
 concentrating on the without distractions
 follow up with them
 following through on what you say you are going to do
 being efficient in handling issues
5 Explain the nature of positive customer/client relations
The participant should demonstrate an understanding of this concept through examples
A positive customer relations mindset means believing that your customers:
 Deserve the very best
 Are your employers
 Deserve your focused attention
 Have the right to expect things of you
 Have important problems and complaints
Positive customer relations yield benefits to the:
 Business
 Employees
 Customer
Businesses benefit by being:
 Employees may receive:
 customer compliments
 perhaps a raise or promotion for good customer service skills
Customers may benefit from:
 a more pleasant, satisfactory buying experience
Positive customer relations need to be demonstrated when speaking to customers in
person, over the phone, or online. It should also be evident while handling customer
complaints, inquiries and requests. Demonstrate good customer relations by doing the
following:
 considering and attempting to meet their needs



concentrating on the without distractions
follow up with them
following through on what you say you are going to do
being efficient in handling issues
Explain the nature of product/service branding
In an ever-competitive world, branding is one way of helping you increase sales and at the
same time protect and extend the uniqueness of your service or product. Your uniqueness
is the very reason why it’s important to develop your brand, and your brand is not your
logo
Your brand helps customers and prospects, understand and remember what’s unique about
you. It tells your story and helps attract new customers and keep the ones you already have.
Your brand is the definition that identifies your business, and makes specific promises:
Walmart’s brand is about saving money (Save Money, Live Better). Mazda’s brand is
about having fun while driving (Zoom-zoom)
Branding is just as important for small business as for large ones. For example, there are
hundreds of coffee shops in Vancouver, several per block in some neighbourhoods. Why
do some thrive while others fail? Is the coffee better? Is the atmosphere friendlier? Is the
service faster? Is the price lower? Is one the go-to location for business meetings, where
another is the neighbourhood hang-out? A good brand speaks clearly to its audience about
the nature of the product or service, and the people behind it
A well-branded business knows the one or two things it’s best at, and uses those to create a
brand message. A good brand:
 delivers its message clearly
 confirms the credibility of the message
 connects to its audience emotionally
 motivates the buyer
 reinforces loyalty
A brand isn’t “different for the sake of being different.” A strong brand is clearly
differentiated by its own unique story
Explain the nature of regulations affecting the hospitality industry
2 Explain the nature of staff communication
Staff communication refers to the sharing of information within an organization. This can
involve communication from management to other staff members (top-down
communication), communication from staff members to management (bottom-up
communication), and communication among staff members
Staff communication is an important way to keep staff up-to-date on information that
affects the business and that is necessary for them to effectively do their jobs.
 The student should explain the role does staff communication plays in workplace
safety
 What is the purpose of changing the current staff communication structure
o Improve productivity
o Cut costs
o Ensure congruency of information relayed to customers
Explain the role of customer service
2 Explain the role of customer service as a component of selling relationships
Selling relies on repeat business – customer service drives repeat business
Integral to successful selling is good customer contact. Service extras are what the
customer will remember and cause him/her to return
Product knowledge is part of customer service
Participant should mention specifics of customer service as it applies to The Shed –
product knowledge, speed of service, acknowledging customer concerns. In this case,
acknowledge should be made of the fact that the server was likely at fault and that the
table in question could have been offered the discount, or some other incentive to return to
the restaurant. Ensuring customer satisfaction must be the goal.
2 Explain the role of customer service in position/image
Students should comment that the actions of every employee should reflect the position or
image that the business wants to occupy in the mind of the consumer
 Employees need to be made aware of the businesses position so that they can carry it
out in every act of customer service. Effective customer service should reinforce the
product image
 Hospitality industry sales are based on corporate image and reputation
 Newly established small hotels need to establish their image and reputation by
providing additional services and amenities not possible in larger establishments
 Excellent customer service and the accommodation of customer needs will increase
the positive image of the hotel
Explain the role of ethics in customer relationship management;
Ethics would require the restaurant to follow all legal requirements and to maintain
adequate records, perform audits, train employees regularly and employ all
safeguards to prevent information leaks
The restaurant must acknowledge its role in info management and communicate to
consumers its commitment to protection of all sensitive data
Participant could define ethics as its applies to information gathering and
management
Protection of data; privacy of the customer information – two concepts likely to be
included
This is where the participant could indicate how the server could have handled the
issue differently – addressing the customer’s concern and offering some sort of
assurance of a change to error
Student may add that the requirement in Ontario is that only the last four digits be printed
and that the expiry date not be included on the printout
e.g. avoiding double talk in order to mask deficiencies of a product, and making full
disclosure to customers on the product offering
o The essence of good customer service is forming a relationship with customers – a
relationship that that individual customer feels that he would like to pursue. Good
customer service is all about bringing customers back. And about sending them
away happy - happy enough to pass positive feedback about your business along to
others, who may then try the product or service you offer for themselves and in
their turn become repeat customers
 Customers must be dealt with ethically




o
o
Customers must believe the company has acted ethically
Company must protect customer information unless indicated
No bias against race/age/income
In this case:
the customer must believe that the company has acted ethically
the company did provide the choice to receive the freeware as well as provide the
instructions highly recommended
o the customer has the responsibility to read the instructions carefully
o the customer has had the use of free software for an entire year, most have not paid
the donation
e.g. avoiding double talk in order to mask deficiencies of a product, and making full
disclosure to customers on the product offering
o The essence of good customer service is forming a relationship with customers –
a relationship that that individual customer feels that he would like to pursue.
Good customer service is all about bringing customers back. And about sending
them away happy - happy enough to pass positive feedback about your business
along to others, who may then try the product or service you offer for
themselves and in their turn become repeat customers
The relationship between business ethics and customer relations lies in the manner
in which the management of various businesses apply the principles of ethics in
their interaction with customers. As such, business ethics and customer relations
may apply to the way in which a business conveys its products and services to
customers and the manner in which it handles customer complaints
Another instance of the link between business ethics and customer relations can be
seen in the way in which the company treats any complaint from the consumers.
The issue of dishonesty toward customers in the quest to make as much money as
possible is one of the more common factors of the relationship between business
ethics and customer relation
In this case, the company is trying to decrease the costs of shipping and return
shipping in order to maximize profits. The assumption is that some customers are
committing fraud, but the solutions to address individual fraud could be seen as
unethically attacking all of the customers
The solution needs to address the problem without being punitive towards the general
customer base
.
Explain the role of ethics in human resource management
Ethics would require the restaurant to follow all legal requirements and to maintain
adequate records, perform audits, train employees regularly and employ all safeguards to
prevent information leaks
The restaurant must acknowledge its role in info management and communicate to
consumers its commitment to protection of all sensitive data
Participant could define ethics as its applies to information gathering and management
Protection of data; privacy of the customer information – two concepts likely to be
included
This is where the participant could indicate how the server could have handled the issue
differently – addressing the customer’s concern and offering some sort of assurance of a
change to error
Student may add that the requirement in Ontario is that only the last four digits be printed
and that the expiry date not be included on the printout.
3 Explain the role of promotion as a marketing function
 Promotion is part of the marketing mix
 Promotional mix includes personal selling, advertising, sales promotions and public
relations/publicity
 Talk about promoting brand image and creating brand identity and loyalty
 Increase awareness
 Increase sales
 Persuasive communication
 Informs people about products and services
 Used to enhance public image, reputation and to persuade people that the company’s
products are valuable
 Goals of promotion = AIDA – first attract Attention, then build Interest and Desire
and finally ask for Action
 Promotion used to convince prospects to select ABC services instead of the
competition
 Promotional activities explain the major features and benefits of the product/service,
identify where it is sold, advertise sales, answer customer questions and introduce
new offerings
 Product promotion helps companies to foster good relations with existing customers
and creates loyalty
Explain the role of situation analysis in the marketing planning process
 SWOT analysis: measure of Strengths, weaknesses, opportunities and threats
 SWOT analysis should distinguish between where your organization is today, and
where it could be in the future
 Once key issues have been identified with your SWOT analysis, they feed into
marketing objectives
 Study of the internal and external factors that affect marketing strategy
 SWOT
 Examination of the overall market – opportunities and threats, competition
Participant could perform SWOT analysis and determine that the opportunity is ripe for a
new product launch – this is the expectation of the owner
Explain the role of training and human resource development.
Explain the specific challenges for service marketers.
Explain the types of advertising media
 Mail
 Print Advertising – Newspapers, Magazines, Brochures, Fliers
 Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events
 Broadcast advertising – Television, Radio and the Internet
 Covert Advertising – Advertising in Movies
 Celebrity Advertising
Explain the types of promotion
Promotion itself has its own elements called the promotional mix, namely, advertising,
sales promotion, public relations, and personal selling Emphasize the perceive value
offered to customers. Customers more likely to believe prices are fair if they perceive
value in the product
 Advertising
 Personal Selling
 Sales Promotion
 Public Relations
Explain the types of risks and concerns associated with services
2 Explain types of advertising media
Direct mail advertising is advertising sent to prospective buyers through the mail
Outdoor advertising includes signs and posters, painted bulletins, billboards, and other rented
spaces along city streets, highways, etc
Transit advertising is advertising used in buses, cabs, and subways; and in airline, bus and
railroad terminals
Specialty advertising is advertising which provides a useful product with an advertising
message on it. Pens and pencils, calendars, balloons, key rings, and chains with companies'
names on them are examples of specialty advertising
Television advertising is advertising broadcast on TV. Spots are usually 15, 30, or 60
seconds in length
Radio advertising is advertising broadcast on the radio. Spots are usually 15, 30, or 60
seconds in length
Magazine advertising is advertising printed in magazines. Magazine ads can be printed
either in black and white or in color
Newspaper advertising is advertising printed in the newspaper. Newspaper ads are printed
most frequently in black and white but may be printed in color. They are sold by the line
Online advertising is advertising appearing on specific websites on the Internet. Examples
include: banners around a webpage, a precursor to videos, pop-up ads, and, embedded ads in
social media. The websites the advertisement is to be displayed should have some connection
to the target market in order to reach the most applicable viewers
Participants should identify an appropriate combination of the above media to be used in
the hospitality industry. For example, advertising online on travel sites such as
Expedia.com and Hotels.com to attract tourists, in addition to specialty advertising on pens,
notepads, and other common takeaways in the guest and conference rooms to remind the
guests to come again
2 Explain types of promotions
Promotions include contests, giveaways, coupons, sales, samples, etc. Participants should discuss
promotions and specifically the promotion they will use. Multiple answers are possible but must
make sense for the product and target market identified
Forecast occupancy levels.
2 Generate product ideas
The conditions given involve low-fat alternatives to other fast food places. This
recognizes that the target market will include customers with knowledge of nutritional
information and a desire for healthy eating. Our location is near a large shopping mall.
Most of the customers will probably be middle and upper aged adults, some with young
children.
The more popular sandwiches would be chicken, turkey, tuna, salmon, tomato,
cucumber, egg, etc. Avoid the heavier red meats, although it might be acceptable to
have an option of lean roast beef. Soups selections should concentrate on low sodium
and mostly clear soups. Since we are not a chain, it would be acceptable to try different
types of soups on a rotating basis and eventually we would find which ones were more
desirable. The sides should include a variety of salads (healthier choices like spinach,
house, and cole slaw), an assortment of fresh fruits or fruit salads, and possibly cookies
or “sweets” that have been prepared with healthier ingredients. The beverages should
include a variety of teas and coffees, as well as water, juices, and diet drinks. The
conditions also included little food waste. Students could suggest using some of the
scraps in the soup or buying fresh to avoid having to dispose of cans, cartons, and other
packaging
As previously mentioned, the participant should acknowledge that the product must be
low in cost to the consumer as well as small in portion while maintaining the quality that
the company is known for. The participant may generate any number of products that fit
this criteria, as long as it falls in line with the restaurant’s chicken theme
 Introduce soups, cold meats sandwiches, wraps
 Freshly squeezed juices, vitamin water
Handle customer/client complaints
Similar to handling difficult customers – remain calm
 Follow a step by step process
 Listen to the complaint
 Apologize for customer feeling this way
 Try to explain why this situation may have occurred, If possible rectify it, or call
someone more superior (manager) who can
 Acknowledge the frustration and disappointment that the customer must be
experiencing
 Admit that this was a human error on behalf of the staff and that errors do happen and
you will do everything you can to locate another watch for the customer
Identify communication channels used in sales promotion
Marketing communications are the means by which firms attempt to inform, persuade, and
remind consumers - directly or indirectly - about the products and brands that they sell
Traditional methods can be covered (print, television, radio) as the target market is an older
audience who may/may not use social media (the target are those who are purchasing the
gift cards, not the graduates themselves)
Communication channels used in promotion may include:
 Print media – newspapers, magazines, direct mail
 Broadcast media – radio, television
 Display media – billboards, signs, posters
 Electronic media – internet, mobile web
 Social media – Facebook, Twitter, Instagram, etc.
The participant should demonstrate an understanding of the target market and select the
appropriate promotional medium (i.e. print, broadcast, etc.)
Identify considerations in implementing international marketing strategies.
Identify factors affecting a business’s profit
Profit is the monetary return a business` owner receives for taking the risk of investing
in the business. Profit equals income less expenses. There are two types of profit:
gross – the money left over after the cost of goods is subtracted from sales, and net –
the money left over after the operating expenses are subtracted from the gross profit
Factors that affect profit include: the demand for the good/service, expenses, prices, the
economy, and chance. To increase profit, a business can increase worker efficiency,
increase sales or decrease expenses
 Revenues: number sold * sales price per ruler
 Expenses: Fixed costs + (variable costs * number produced)
 4 P’s of marketing – Product; Price; Place; Promotion
 4 C’s of marketing – Consumer wants/needs; Cost to satisfy; convenience to buy;
Communication
 The amount of sales
 The cost of the merchandise
 Price merchandise is being sold for
 Amount of overhead
 Cost of sales
 Competition
 Success of an advertising campaign
 Merchandise that is being sold
 Ability of the sales staff
 Ability of staff to close sales and to add on sales once an initial sale has been closed
 Revenues: rentals
 Expenses: advertising, salary, rent, utilities expenses
2 Identify information monitored for marketing decision-making
Target and segment markets for a new endeavor need to be explored thoroughly. It is
possible to identify the type of customer that would be more likely to eat in each of the two
styles of restaurant. The majority of the information required would involve determining
the demographics and psychographics of the potential customers in each city.
Demographics are the finite or definitive characteristics of a group of people in an area and
would include a combination of age groups, incomes, education, occupation, type of
dwelling, living downtown or in suburban areas, size of the family, etc.
Psychographics deals with is their attitudes and interests
The company would also have to determine the competition already in each market to
determine if there are enough customers to support an additional restaurant
 how often customer frequents establishment
 revenue per customer
 area that customers come from
 demographic characteristics
 revenue per customer
Identify methods/techniques to generate a product idea
Students can mention processes like brainstorming, product mapping (finding gaps or
niches in the market for a certain product or service), SWOT (Strengths, Weaknesses,
Opportunities, Threats) analysis, Secondary market research (websites, periodicals,
databases), Primary market research (Surveys, Focus Groups)
The participant may discuss some/all of the following ideas:
 creation of a focus group
 in-restaurant surveys
 analysis of market trends
 How did the participant come up with this new product/service idea?
 What was the rational/inspiration behind it?
 How did they determine if this idea would be successful?
Identify product opportunities
Need to identify appropriate target markets and further develop their individual needs and
wants. This would be preferable to simply advertising a general service. Many of the
answers will be based on the specific location and demographics we deal with.
Requires market research, market segmentation, product research etc
Identify speculative business risks
Identify the consumer protection provisions of appropriate agencies.
2 Identify the elements of the promotional mix
The combination of personal selling, advertising, sales promotion, direct marketing and
public relations make up the promotional mix. Each plays a vital role in promoting
businesses and their products
Reference:
o Personal Selling – Personal selling requires that a company employ sales
representatives who generate and maintain direct contact with prospects and
customers. It is one of the costliest forms of promotion. Direct contact can take the
form of personal meetings, telemarketing, email contact and correspondence
o Advertising – is a form of nonpersonal promotion. Companies pay to promote
ideas, goods or services in a variety of media outlets. Advertising can be found
everywhere from magazines, newspapers, televisions and web sites to gymnasiums
and city buses. With advertising a company engages in one-way communication to
the prospect or customer
o Sales promotion – represents all marketing activities – other than personal selling,
advertising and public relations that are used to stimulate purchasing and sales. The
objectives of sales promotions are to increase sales, inform potential customers
about new products and create a positive business or corporate image
o Direct marketing – advertising directed to a target group of prospects and
customers rather than to a mass audience. The two forms of direct marketing are
printed direct mail, which is information sent via regular mail to home or business
and electronic direct mail. The goals of direct marketing are to generate sales or
leads for sales representatives to pursue. Generally direct marketing generates a
response from the targeted customer i.e. special offer coupon. Direct marketing
gives recipients an incentive to respond
o Public Relations and Publicity
Public Relations (PR) – activities enable an organization to influence a target
audience. Often public relations campaigns try to create a favourable image for a
company, its products, or its policies. However, companies can rely on public
relations strategies and techniques for many reasons. One of the goals of a public
relations program is to cultivate media relations with reporters who cover a specific
industry
One of the most important media tools is the news release. A news release is an
announcement that is sent to the appropriate media outlets
Publicity involves bringing news or newsworthy information about an organization
to the public’s attention. This process is known as placement. The main function of
publicity is to develop a positive perception or awareness of the organization in the
marketplace. The right kind of publicity can create and maintain a company’s
image; negative publicity can devastate it. People like to do business with
respectable companies. Placement of publicity is free. A news story on the evening
news is free while advertising can cost thousands of dollars. News reporters are
usually viewed as more objective than advertisers. The disadvantage is that you
cannot control the content of publicity
Identify types of public relations activities
Public relations involves managing the flow of information from an organization to the
public. It is an ongoing process that is critical to creating a positive corporate image.
Participants should address that public-relations is a means of communicating with the
target market and can include promotional materials that can lend itself to a strong public
image. Public-relations activities may include helping the public to understand the
company and its products/services. Participant’s suggested activities may vary
Types of public relations activities may include:
 Advertising & promotion of an organization’s corporate image
 Sponsorships
 Events & functions
 Social media
 Internal communications (employee interactions)
 Sponsoring/hosting galas, conferences, or major formal events in the city;
 Donations to historical restoration projects in the city
 Sponsoring product, sports, cultural or charitable events
 Awarding scholarships, and donations
 Creating news releases (an announcement that a company sends to the news media)
Identify ways that technology impacts the hospitality industry.
Interpret business policies to customers/clients
 Employees should be well trained on the policy. Provide many examples of how the
policy can be interpreted
 After this situation has been handled, it should be used as an example for employees
for future reference
 Phone and explain clearly that the restaurant is sorry that COMPUTER CORP’s visit
was unsatisfactory
 Explain the new changes
 Book a new reservation
Interpreting business policies typically involves explaining company procedures, often
written in bureaucratic language, to customers who are already irritated and upset. By
acknowledging their frustration and using plain and ordinary language to describe what's
required from the customer to proceed, customer service representatives can diffuse a tense
situation, maximize the opportunity to conduct a successful transaction and provide
pointers to other information, such as brochures, website links and other phone numbers for
help and support
Back up the business policy by describing how it helps streamline business transactions that
actually help customers in the long run. Provide details about why changes to previous
policies make the current policy more advantageous in terms of long-term gains. Cite any
laws, studies conducted, customer feedback obtained or conventional business practices
that reinforce the implementation of the business practice
Involve customers in the interpretation of any business policy. Ask for candid feedback
about how the rules impact their business. For example, record input with online surveys
using free software applications such as Qualtrics, Zoomerang or SurveyMonkey. Publish
your findings so that customers can see that you have taken their feedback seriously and
intend to act on their suggestions
Propose an implementation date that allows the customer time to adjust to your new policy
and enforcement of a current policy. Ensuring customer satisfaction involves validating that
new mechanisms meet the needs of existing customers and future customers alike.
Monitor guest satisfaction with services/facility
2 Obtain needed information efficiently
Students should make recommendations about how to collect the needed information in a
timely manner. They should have clearly outlined methods for data collection and an
understanding of how to do this without spending an unrealistic amount of money
Orient new employees
When new employees are hired, it is important they complete an orientation process. This is
used to introduce them to the business’s culture, brand and ways of working. It is also an
opportunity for the business to communicate its expectations based on accountabilities,
customer service, quality, etc. Orientation also involves training new employees on how to
do their jobs
The participant may discuss the role of the assistant manager in training new employees.
They may also point some specific aspects of new employee orientation that will be
important, such as:
 Giving new employees a tour
 Providing new employees with an opportunity to shadow other employees doing the
same job
 Providing new employees with training on any equipment they are required to operate
including POS systems, computer-based systems for entering customer orders and
making table reservations, etc
The participant may also provide additional examples of what will be included in new
employee orientation at this restaurant
 Once a candidate is selected, the most basic part of training is employee orientation
through which employees get acquainted with company policies and programs,
personnel with whom they will interact, and the nature of the job
 This probationary period can last between 2-4 weeks
Mentors may be assigned within a relevant department to assist the new employee through
this process
Plan a variety of guest activities
 Activities should relevant to conference attendees
 Guest activities will vary according to team, however activities should be detailed and
relevant to the ranch’s facilities
2 Plan a variety of guest/client activities
 Trip to spa organised by the hotel
 Sight seeing
 Nature walks to promote a healthy lifestyle
 Package deals with nearby attractions
Plan strategies for meeting sales quotas
 First the presenter should set a quota or sales objective for the winter months as it is
not given in the case
 Strategies may include changes in the 4 P’s (Product, Price, Promotion, Placement)
 Lower the pricing as a special promotion during winter months will attract a greater
amount of customers yet will continue to make profits for the company
 Presenters should be specific and have a specific price
Prescribe a solution to meet customer needs
Prospect for customers
Protect against identify theft
Measures must be in place to limit access to card information – passwords, limited access,
logins, firewalls, tracking of access, POS – well secured to prevent unauthorized access
Training of workers is most important – an understanding of their role in handling of
credit/debit cards is vital
Adherence to all legal requirements with respect to data management
Participant could mention any of the above information as it relates to this case.
3 Recommend hospitality services
Reinforce service orientation through communication
Service orientation refers to a focus on service. In communication, service orientation can
be maintained by demonstrating emphasis on customer service in all communication.
Similar to handling difficult customers, communication with a service orientation should
demonstrate empathy and a focus on finding solutions that will satisfy the needs of the
customer
 staff to be trained in proper customer service techniques, including greeting
customers, asking to assist them, wishing them a good day when leaving, etc
 customer service training, tips and messages to take place on on-going basis in staff
meetings, employee newsletters, employee bulletin boards
 training to include role plays of customer service situations
 thanking customer to be part of role plays concluding transactions at cash
 employees must make it clear to customers that we want to help them; the whole
experience in our store must be positive
 open communication from customer – employees – management (full circle)
 customers can be given opportunity to fill out comment cards/on-line surveys,
perhaps with chance to win something/discounts
employees also be given chance to fill out feedback forms, surveys, suggestions
Sell good/service/idea to groups
Use conflict resolution skills
The participant may demonstrate conflict resolution skills by:
 Clearly communicating the company’s policies and procedures
 Effectively listening to the customer’s concerns and questions
 Responding appropriately to the customer’s concerns and questions
 Actively seeking a solution that both parties are satisfied with
 Identifying when an approach or proposed solution is not working and suggest other
possibilities to solve the problem
 It is important to listen carefully to all sides of a situation
 Conflict can be constructive if handled properly. They could have just moved their
business without telling you and giving you an opportunity to fix the situation
 Work collaboratively with the staff to brainstorm possible solutions to the problem.
This way the staff will buy in to the solution. As well, they may have some clever
and creative ideas to solve it
It is possible to make both sides happy; they just need to be separated
Write informational messages
Unlike academic papers, which are almost always persuasive pieces of writing, the
purpose of much business communication is to deliver a message, whether good or bad.
As a result, you may find yourself writing positive messages, negative messages, or
persuasive messages
Depending on the decision of whether to do animal testing or not, the presenter will have
to write informational messages for the public as well as the shareholders.
For an effective informational message the message is presented clearly and concisely so
that the listener or reader can understand it easily
Basic considerations when writing the message might include:
 Know your audience
 Know your purpose
Write persuasive messages
Presenters may come up with a specific message/slogan that they will use to persuade
May speak about the importance of including persuasive messages in a presentation
Basic considerations when writing the message might include:
 Know your audience
 Know your purpose