Hotel Promotion Dollars and Your Return on Investment
Do you know if your promotions are delivering returns?
By S. Lakshmi Narasimhan Founder, Ignite Insight LLC | February 14, 2016
It is the goal and ambition of every business to hook the customer fair and square to the product they are offering. It is the very purpose of running a business by manufacturing a product or offering a service. Revenues are the ultimate proof of the value provided to customers for which they are willing to pay top dollars. However, it it is one thing to put out a product in the market and quite another to get the customer to bite. How do you get the customer to buy your product at the price point you have established? Here is where the reach and power of marketing is determined.
Every business needs to have a clearly thought out plan of how they will market their product to the customer or target audience. More specifically, within the vast ocean that is the function of marketing, promotion of the product is the key process which will move the needle. Promotion refers to the entire range of activities that will provide knowledge of the product to the customer and the market it is targeted to serve.
What do Promotions Achieve?
Looked at in a simplistic manner, promotions are merely actions taken by a business to spread the word out about the products it offers. But that apparently harmless sounding statement does not do justice to the whole host of activities that actually go under the banner of promotions. Promotions involve spending chunks of money for spreading the word around. So, the logical question that follows is: do these actually work? Is there any logic to spending these sums of money? Do they actually achieve anything, more specifically, do they result in higher revenues? These questions are probably difficult to answer and as timeless as marketing itself is.
Yes, they do achieve something, but just what is notoriously difficult to quantify accurately.
The Promotion Landscape