Economics essay assignment on: MICE customers

Capacity and demand issues that a hotel or resort confronts in its efforts to market its products and services effectively to MICE customers:

The meetings, incentives, conventions and exhibitions (or events) industry (MICE) serves to the need for holding, organizing and managing business invents. A business event can be defined as any public or private activity consisting of a minimum of 15 persons with a common interest or vocation held in a specific venue or venues and hosted by an organization (or organizations) (Boo, S. Koh, Y. and Jones, D.,2008).

Business events include ( but are not limited to) : conferences, conventions, symposia, congresses, incentive group events, marketing group events, special seminars, celebrations, courses, public or trade shows, company annual general meetings, product launches, exhibitions, company annual general meetings, corporate retreats, study tours, training programs etc.Capacity is a very important in the MICE industry because capacity is now being supplied globally. Clients in Australia can use a convention centre in Singapore or Shanghai for organizing their business events. Emerging markets like China are competing strongly in this industry too with developed markets like Australia. In Australia most five star hotels and luxury resorts cater to business events. Besides this, business hotels have organization of business events as one of their core competencies.

While capacity or supply of convention centers has increased steadily over the years, demand too has gone up. With increased globalization, emerging markets like Brazil, Russia, India and China are growing rapidly. Companies from these countries, especially from India and China, often prefer Australia for organizing business events like corporate incentive meetings. Sydney Hilton should target this segment.

On the back of strong demand for commodities from emerging markets Australia’s growth rate has picked up considerably in the past few years. This has increased the frequency of business events organized by domestic companies. Australia remains the preferred choice for business events of Australian companies (Boo, S. Koh, Y. and Jones, D.,2008).

At the same time, companies in Australia and around the world have become more sensitive about cost control after the 2008 financial crisis. Business events have become less lavish and clients desire more value for their money.

Relationship marketing and how it can be used by a service provider (Sydney Hilton) for enhancing its strategic marketing goals

Relationship marketing aims at creating and building mutually satisfying relationships with customers, suppliers and distributors so that the business can win their lifetime loyalty. Relationship marketing will be the most effective promotion for the convention centre business of Sydney Hilton. The in-house sales team of the hotel should manage the relationship with potential customers. Direct marketing will be much more effective in promoting the product to MICE industry. Customer relationship management will ensure that Sydney Hilton succeeds in creating life long relationship with customers. Information technology can be leveraged for this purpose. Customer databases should be regularly updated so as to keep track of customers. Customer relationship management will ensure that Sidney Hilton exploits the lifetime value of its customers. Customer relationship management software can be used for this end.

The strategic marketing goal of Sydney Hilton is to establish its convention centre as the leading convention centre for business events in the whole of Australia. Only through relationship marketing it will be able to achieve this strategic goal. Maintaining long term relationship with customers will ensure that Sydney Hilton becomes the preferred choice of customers.

What kind of information can be stored in the guest database and how can this information assist the marketing department of the hotel?

The guest database will assist the marketing department of Sydney Hilton in relationship marketing. Customer relationship management cannot be accomplished without the assistance of a guest database. This database should contain information regarding the name of past and potential customers. The profile and contact information of the customers should be detailed in the guest database. Information on the business events for which past customers used the convention centers should be stored in the database. There should also be a record of regular customers (customers who have used the services of the convention centre of the hotel for more than once). This will ensure that the marketing department gives special attention to these customers. It is three times easier to retain existing customers than to recruit new ones. The guest database should also include any feedback that a past customer gave.

Reflection Portfolio:

Marketing plan for convention centre at Sydney Hilton: Sydney Hilton is one of the most prominent hotels of Sydney, the capital city of New South Wales. The hotel has business customers as one of its main target segments. It generates a considerable portion of its revenues from hosting business events like conventions. The marketing plan seeks to market its convention centre more effectively so that Sydney Hilton emerges as the first choice for conventions and business events in Sydney and New South Wales.

The convention centre at Sydney Hilton consists of a grand ballroom-cum-convention centre. It is 6 meters high and has 806 square meter of conventional space with natural light. This convention centre can accommodate 1000 guests. Besides this, there is also a pre-event or exhibition space which can accommodate an additional 1200 guests.

This convention centre is located on the level 3 of the hotel. It is completely purpose built. A board of experts on conferencing and meetings assisted in the design of the hotel’s functionality resulting in a space truly designed by the industry for the industry.

Pricing is very important in the current business scenario. The customers of the convention centre of Sydney Hilton are mainly business customers. They want value for every dollar they spend. So pricing should be such that the value proposition is rightly communicated to the business customers. At the same time pricing should be such that it covers the costs of organizing a business event besides providing for a reasonable profit margin. Right pricing is very important for effectively marketing to the MICE segment.The place or location is of utmost importance in marketing of convention centers. The convention centre in Sydney Hilton enjoys a very good location which is one of its biggest advantages.

Topic 4: The role of sales and marketing in selling conventions

Discussion Question:

As a Convention Services Manager in a hotel, what steps would I take to determine how best to motivate your team? Explain the importance of these steps.

Communication plays the most important role in motivation. I will motivate my team by clear communicating them the expectations of the clients in the MICE industry. I will explain them in detail the processes through which these expectations can be fulfilled. Clear goals will be set for each member of the team and his or her area of responsibility will be clearly designated. Management by objectives approach will be applied for motivating the members of the team. A clear rewards management system will be established and employees who perform beyond expectations will be rewarded with various kinds of incentives.

These steps are important because motivated employees are more committed and therefore more productive. They will be more effective in implementation and will be able to serve the customers in a better way.

Reflection Portfolio:

A job advertisement for the position of convention services manager in a hotel that recently appeared on a leading online job portal:

Job profile: Convention services manager.

Job description: Management of business events like association conventions, exhibitions, corporate incentives, corporate meetings and government meetings.

Eligibility criteria: Must have at least five years of experience in the MICE industry. A degree in hotel management or sales & marketing is an advantage.

Salary: best in the industry.

Comparison of the roles of a conference organizer in a corporation and an association with that of a convention services manager in a hotel. What are the areas of similarity? How do their roles differ?

A conference organizer in a corporation or association is the in-house employee of that corporation. His or her main job is to organize business events like association conventions, exhibitions, corporate incentives and corporate meetings for that particular corporation only.

The conference organizer in a corporation or association may hire outside suppliers for services like catering and food & beverages. On the other hand, a convention services manager in a hotel employs the resources of the hotel itself in every area. He or she is directly responsible for management of these resources. Unlike a conference organizer in a corporation, a convention services manager in a hotel gets to work with different clients. The convention services manager is the employee of the hotel which hosts the conventions on behalf of the client corporation or organization (Pearlman, David and Gates, Nicholas ,2010).

One essential difference between the role of a conference manager and convention services manager is that sales & marketing is an essential part of the job profile of convention services manager while it is not part of the job profile of a conference manager (Pearlman, David and Gates, Nicholas ,2010).

A conference manager of a corporation or organization simply organizes business events for that corporation. He doesn’t need to get himself involved in any kind of sales or marketing activity because he is not generating any sort of revenue for his or her corporation.

A convention services manager is at the revenue centre of his hotel. He interacts with the sales & marketing team and often guides them. Through marketing he also tries to understand the ever evolving needs of the customers. He gives his inputs when the promotional strategy of the convention centre business of the hotel is devised.  He also tries to generate feedback from clients at the conclusion of a business event. The convention services manager also interacts directly with customers when such a need arises. He is responsible for quality management and cost control so that profits of the hotel can be optimized (Pearlman, David and Gates, Nicholas ,2010).

The essential similarity between the role of a convention services manager and a conference organizer in a corporation is that both of them are responsible for management of business events.

Conclusions from the interview of convention services manager of Sydney Hilton:

a. What are the main duties of his job?

Management of business events like association conventions, exhibitions, corporate incentives, corporate meetings and government meetings is the main duty of his job. Besides this, he is also responsible for devising the marketing strategy of the convention services business. He makes recommendations on the marketing strategy to the top management of the hotel, who then take the final decision.

b.What are the responsibilities of the position?

The main responsibilities of the position relate to management of business events. The convention services manager is responsible for the quality of food, beverages and services delivered during the organization of a business event in the convention centre of the hotel. He is also responsible for ensuring that an event is organized within the budgetary constraints. He is answerable to the senior management in case of customer complaints that come up after the event is organized.

c. Where do they fit into the organization structure?

In the organization structure the convention services manager is at the same level as the food & beverages manager and room services manager. All three of them report to the general manager of the hotel.

d. What qualifications did they need to have to get this job?

They need to have at least 10 years of experience in the area of hotel management or business event. Alternatively candidates who have a bachelor’s degree in hotel management need to have only five years of experience for becoming eligible for this job.

e. What motivational tool does the company employ with respect to the staff?

The company employs rewards management for effectively motivating the staff. It gives monetary and non-monetary incentives to its employees for motivating them. Management by objectives is also used by the company for motivating its employees.

COMPETITION ANALYSIS:

Commercial business:

Meeting and convention:

Vacationer

Airline contract

Yes

Yes

Yes

Yes

Yes

No

Yes

No

Yes

Yes

Yes

NoPublished room rates:

Single:

$ 400$ 450$ 600Double$ 800$ 800$ 1000

Topic 5: Market segment for conventions:

The main market segments for conventions are:

i)                    Association conventions.

ii)                  Exhibitions

iii)                Corporate incentives.

iv)                Corporate meetings.

v)                  Government meetings.

Discussion Questions:

What is difficult about sourcing new business?

The biggest challenge in sourcing new business arises from the intense competition in the MICE industry. Clients often demand too much value for every dollar of money that they spend. This sometimes makes new business less than profitable.

Why is it important for you to be constantly looking for new customers?

Sales & marketing in the MICE industry is a continuous activity. A hotel or resort which intends to establish itself as a major centre for business events needs to constantly look for new customers because customer loyalty is often fickle in this industry. Switching costs for customers are negligible and they therefore readily make a switch when they see a better deal elsewhere. A convention centre cannot rely solely on the loyalty of past customers for sustaining itself.

What do you understand the Trace system to be?

The trace system is a kind of customer relationship management tool for the MICE industry. It tracks down the past customers from the files and identifies forthcoming business event needs of these customers.

Why is your filing system so valuable to you in your daily activities?

Filing system is very valuable for keeping track and record of daily activities. It is also valuable for maintaining detailed informational records of past customers. This information is very useful for identifying new business opportunities.

How do you use existing files to identify opportunities within the same accounts?

Information in existing files is analyzed for identifying the forthcoming business events of existing customers. Many such events like corporate meetings occur periodically. Once the likely forthcoming events are recognized the sales team contacts the clients and tries to persuade them to use the convention centre services of the hotel again.

Reflection Portfolio:

The Burswood International Resort Casino in Perth Australia is now part of Crown Perth. Besides a resort and casino this complex also has boardrooms, meeting rooms and convention centers. It is quite popular as a destination for business events. The convention centers are equipped with state-of-the-art audio-visual and teleconferencing capabilities.

What facilities have been designed to meet the needs of emerging societal trends in the external market?

This entertainment complex has restaurants, bars, hotels & spa, casino, and convention centers. All these facilities have been designed in order to meet the needs of emerging societal trends in the external market.

Construction of product features and benefits profile of Burswood International Resort Casino and two separate targeted market segments for itTarget segment one: Corporate incentives

Product features: restaurants, bars, casino, convention centers, hotels & spa, convention centers.

Benefits profile: ideal place for holding a corporate incentives event. The participants will be entertained thoroughly and will feel refreshed and motivated. This will fulfill the objectives of a corporate incentives event.

Target segment two: Corporate meetings.

Product features and benefits profile: State-of-the-art meeting rooms and board rooms. The convention centre, Botanicals, is equipped with state-of-the-art audio-visual and teleconferencing capabilities. There is also a premier catering service to meet the needs of the customers. The Studios is ideal for smaller and more private business events and gatherings. It has inbuilt audio-visual technology and the highest quality in architectural finishes. The space is ideal for small meetings, workshops and intimate dinners.

There are also two ballrooms: Grand ballroom and the Astral. The grand ballroom is perfect for holding big corporate meetings and conferences. The Astral has opulent décor, contemporary design and state-of-the-art technology. It also has retractable inbuilt screens and a host of intelligent design features, including custom made LED chandeliers. The parking facility offered is very good and spacious. It can accommodate around 340 vehicles at a time.  Besides this there is another contiguous parking facility which can accommodate another 1856 vehicles. Another multi-storey car park facility in the complex is expected to be completed by the year 2014. Train and bus services are also conveniently located, with bus stops along Great Eastern Highway in front of the Complex and Burswood train station is just a short distance away. All these features make this complex an ideal place for organizing corporate meetings – both large and small. All the needs of the target segment can be catered to and customers will certainly get maximum value for their money. The value proposition is unbeatable. With right pricing this is a win-win situation for the complex and customers. It is an unparalleled complex for business events in both Perth and Australia.

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