Palladium Inn and Suite
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Palladium Inn & Suites
Palladium communicates all the elements of its marketing mix so that the customer understands their set of decisions about price, channels of distribution, product communications, and customer manager relationship management that implements their marketing strategy. Through the 4Ps of marketing; price, place, promotion, and product, Palladium has targeted their competitors as the Fairfield Inn by Marriot, Hampton Inn and Hampton Inn & Suites by Hilton, and La Quinta Inn & Suites. However, Palladium Inn & Suites is more sales driven then marketing driven. Much money is spent on marketing research and test marketing but their main emphasis is to sell and meet sales targets. On the other hand, they do rely on customers to tell them what they want and had large budgets and use every new and old technique that exists.
The company uses advertising, a little direct marketing, and sales promotions in its communications mix. As far as marketing, Palladium using the Internet to send e-mails to potential customer and direct mail campaigns indicating when they have certain promotions. In addition, Palladium has a customer loyalty program and reservation system that can be accessed on their website. Palladiums advertising budget has increased each fiscal year to target pleasure/vacation traveler segment and the companys previous media advertising focusing on the western and Rock Mountain States. In 2010, to attract first time guests, the scope of ad media placement would broaden to include Midwestern states, including Texas and Oklahoma. Lastly, the promotions the company uses are discounts on the third night of their stay in summer months. This customer-oriented promotion provides an extra incentive for customers to extend their stay.
Personal selling and Publicity and Public relations are an area that Palladium could incorporate more into their communications mix. Even though personal selling can be a tricky task in the hotel industry, it can be accomplished by making deals with large businesses so that their employees only stay at their hotels. The incentive to the large business may be worked out case by case but lower rates could be an example. Publicity and public relations was not mentioned in the article as something that Palladium Inn & Suites is pursuing. I would advise that they employ PR firms to make sure that articles and other news favorable to them are places in non-personal form from an unbiased source to which a variety of constituents are exposed.
Palladium is better off using a rational appeal. Their corporate service mission is to provide principally business travelers with clean and comfortable guest accommodations in convenient locations at reasonable prices. Thus, they should develop advertisements that focus on the functional or practical aspects of their product. The