Decide what type of market you wish to attract and then determine how you are going to attract that market. It is imperative that your chosen ‘niche’ market fits your business – you may need to identify an area within the town that suits your particular market requirements before you purchase. For example if you are wishing to attract a younger market who like the nightlife, it is unwise to purchase hotel on the edge of town renowned for its peace and quiet!
It is also vital to ensure that you have the facilities that your chosen market will expect. There is no point promoting your business to families, for example, if your rooms are not big enough to accommodate families of three or four, as many parents would be reluctant to leave children in another room for obvious reasons, if only twin or double rooms were available.
There is a definite need for a market segmentation exercise to be undertaken and it is something that a new business operator should consider carefully.
- Purchase the right businesses in the right location
- Available facilities in the business match the market you wish to attract
- Advertising is on target and not scattergun
- Resources are used effectively as actions are focused and targeted
- Forward planning enables you to forecast future your finances
As part of the research undertaken to determine the initial business purchase, there should have been some important decisions made on the type of client best suited to that business expectation. It is always wise to:-
- Visit various businesses and stay overnight if possible to see how they operate and what customers they attract
- Spend some time in the lounge or bar areas and listen to comments the visitors make, both positive and negative about their location, facilities, and overall impressions of their stay
- Ask other guests, family and friends what makes them choose a particular place to stay
- Consider all types of visitors and make a list of their requirements and possible demands and then list the advantages and disadvantages, ie holidaymakers, business people, conference delegates
- Consider the impact of each type of visitor would have on your personal time e.g. Late night revellers would often expect a late night bar and this would mean a late night for the owner(s). Conference delegates and business people will probably require an early breakfast
- Consider the resort as a whole. Do not look exclusively at the current market and trends, but what the market of the future might bring
- Once the type of market has been agreed, consider carefully how you will promote your business and through which avenues
- Do not rely on tried and tested advertising methods, but do something innovative, exciting and different.
- Set yourself targets and budgets, and then stick to them
- Remember, Marketing Plans can always be amended and adjusted as long as you stay loyal to your market segment chosen
- Monitor results to ensure you are not wasting resources
- If you purchase a business with a loyal customer base that happens to be not of your choice, you can always change once the bookings have been completed. It is often useful to recommend them to other businesses in the locality and hopefully they will promote you in return