Page 44 - Duct Tape Marketing

28 Part I: Getting Started in Marketing

Table 2-2 Geographic Market Distribution Analysis:
Mountain Valley Motel

Hometown Rest of Home Neighboring Other Natl./
Internatl.
State States

Total Sales

$712,000 $56,960 $462,800 $128,160 $6,080

8% 65% 18% 9%

Sales by Length of Stay

1-night stay $48,416 $83,304 $19,224 $3,204

2-night stay $2,848 $231,400 $70,488 $32,448

3–5 night stay none $101,816 $32,040 $28,428

6+ night stay $5,696 $46,280 $6,408 none

Sales by Season

Summer $5,696 $277,680 $96,120 $54,468

Fall $11,962 $55,536 $12,816 $6,408

Winter $4,557 $37,024 $6,408 none

Holiday $22,783 $23,140 none none

Spring $11,962 $69,420 $12,816 $3,204

With detailed market knowledge, a business can make market-sensitive deci-
sions that lead to promotions tailored specifically to consumer patterns and
demands. The following examples show how the motel featured in Table 2-2
might use its findings to make future marketing decisions:

ߜ Local market guests primarily stay for a single night, and mostly during
the holiday season. This tendency provides some good local area promo-
tion opportunities. Additionally, 10 percent of local guests stay for six
nights or longer, likely while they are going through household renova-
tions or lifestyle changes. This long-stay business tends to occur during
nonsummer periods when the motel occupancy is low, so the motel may
want to consider special rates to attract more of this low-season business.

ߜ Within the home state market area half of the guests spend two nights
per stay, although nearly a third spend three to six nights, which proves
that the motel is capable of drawing statewide guests for longer stays.
This information might lead to an add-a-day promotion idea. Three-
quarters of home state guests visit during the peak-season summer