Promotion Strategies of Restaurants

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Chapter 2

REVIEW OF LITERATURE

Though there are sufficient amount of literatures highlighting the promotion strategies, but a few of them has emphasized on the discussion of the promotional aspects of hospitality industry. At the same time, the literature attempted to deal with promotion strategies of hospitality industry is not available enough and is very limited. Promotion

Promotion is one of the four Ps in the marketing strategy, together with Product, Place and Price. Promotion is an important part of hospitality industry, especially when penetrating new markets and making more customers. (Kotler, Armstrong and Wong as cited in Meljoum, 2002). According to Kotler, et al (2006), promotion is defined as activities that communicate the product or service and its merits to target customers and persuade them to buy. Further, promotion refers to decisions on how the business will communicate its offering to its customers. In the strategic marketing plan, this is the creation of the promotional campaign. (www.tourism. bilkent.edu.tr) Promotion is one of the most important elements of modern marketing which includes the action plan that basically intend to inform and persuade the potential customers or trade intermediaries to make a specific purchase or act in a certain manner. Modern marketing calls for more than developing a good product, pricing it attractively, and making it available to target customers (Kotler, et al, 2006). The authors mentioned that companies must also communicate continuously with their present and potential customers that lead every company inevitably cast into the role of communicator and promoter. Promotion consists of those activities that communicate the merits of the product or service and persuade target customers to buy it (Kotler, et al, 2006). Promotion strategies can be categorized into five classes: personal selling, advertising, sales promotion, public relations (Kotler, et al, 2006), and repositioning competition (Trout and Ries, 2006). Personal Selling

Personal selling is the presentation by the firm’s sales force for the purpose of making sales & building customer relationships (Kotler, 2006). Further, personal selling is when an employee of a company personally meets customers for the purpose of building relationships or making sales. Personal selling is the most effective tool at building buyer preference, conviction, and purchase. It involves personal interaction between two or more people, allowing each to observe the other’s needs and characteristics and make quick adjustments. It let all kinds of relationships spring up, from a matter-of-fact selling relationship to a deep personal friendship. The buyer usually feels a greater need to listen and respond, even if it is a polite “no thank you.” However, these unique qualities come at a cost. Personal sales are useful in understanding customers’ needs and are especially important in the early stages of the buying process. The direct communication is more persuasive than advertising, but comes at a much higher cost per exposure than advertising. Kotler, et al (2006) argues that personal selling is more detailed and customized than advertising and increases the chance of closing a deal. Moreover, personal selling, as the most impelling type of selling, provides excellent potential for increasing business. All of the staff should be sales-minded. They must be trained to offer sales suggestions to guests when opportunities are presented. Friendly cooperation from all staff is essential (McIntosh, 2002).

In his book, "The Full House," C. DeWitt Coffman offers numerous suggestions for promoting internal and external selling. Here are a few examples: tent cards, posters, lighted pictures of guest rooms, dining and beverage rooms; ads under dresser top (glass), reminder cards, bathroom mirror stickers, morning paper with sticker, menus, cocktail napkins, bulletin boards, elevator...
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