Promotional Strategies and Plans Are Critical Successful Factors for International Hotel Groups in This Market Share

Topics: Hotel chains, Marketing, Advertising Pages: 8 (2646 words) Published: January 8, 2011
According to Intercontinental Hotel Group Website (2009), “the global hotel market has an estimated room capacity of 18 million rooms.” On this global hotel market, brand hotel has 45% of the total market. Indeed, the six major international hotel groups are estimated to 41% of the branded rooms and 18% of the total market. Promotional strategies and plans are critical successful factors for International hotel groups in this market share. According to Michael and Lodato (2006:52), the main goal of the promotion “is a function of informing, persuading, and influencing the buyer’s purchase decision.” Therefore, promotion’s aim is to target markets and distribution channels. Moreover, Promotional strategy “refers to a controlled, integrated programme of communication methods designed to present an organisation and its products or services to prospective customers” (Dahlén at al. 2010:107). Consequently, the promotional plan and strategy for an international hotel chain is affected by critical factors, such as the market, the product, hotels’ organization and their situation. The purpose is to identify and understand the various critical factors of promotional strategy and plan through examples. They concern micro and macro-environment factors, such as marketing mix factors. Factors are organised referring their level of importance. The most important factor concerns the product. The market is the second most important one. Thirdly, organisation-related factors include sale promotion, technological factors, push and pull strategies. Finally, situation-related factors deal about environment and competitors factors.

The product factors is the first part of the promotional strategy and plan referring to Kurtz at al. (2009:495) these factors include the product type, price, brand image and product life cycle. According to Lamb at al. (2008.a:491), “The product’s stage in its life cycle is a big factor in designing a promotional mix” During the introduction stage life cycle, the main goal is to inform the target. Then, during the growth stage, it is necessary to change the promotional strategy because potential target change. Consequently, international companies need to develop more persuasive promotion to build brand loyalty. Afterward, when the product arrived to maturity stage, groups develop strong advertising to develop competitor barriers. “Advertising is emphasized more in the introductory stage of the product life cycle than in the decline stage.” (Lamb at al. 2008.a:496) According to Kurtz at al. (2009:485), also, the product itself is an important factor to promotional strategy. The promotional plan changes with product categories. International hotel chains choose a variety of promotion to showcase the different types of products. Because companies tend to create special products with each customer. Moreover, “Consumer products are generally mass produced and lend themselves more to mass promotional efforts such as advertising” (Lamb at al. 2008.a:496). In addition, the evolution of the product may have a significant impact on the promotional strategy of international hotel company. For example, Holidays Inn launching advertising campaigns of 1 million dollars. The promotional campaign is set up to inform the customer about product development. Holiday Inn's goal is to present its product: “a modern hotel with efficient, friendly service and a great night's sleep” (Hotel News Resource 2010). In contrast, knowing that consumer products such as hotel rooms are generally not very personalized, the product does not require the presence of a seller to adjust the sale of it to customer needs. According to Lamb at al. (2008.b:410) “Thus, consumer goods are promoted mainly through advertising to created brand familiarity.” Consequently, brand image is an important factor in promotional strategy. It gives to the brand a communication of all product of the company.

 For example, in 26 April 2010, Accor will launch a new...
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