Preparation of the commercial communication budget in a hotel in Cuba

This work was carried out at a Branch of Grupo Empresarial Extrahotelero Palmares SA.

The work is entitled "Information system for the preparation of the Commercial Communication Budget in La Palmares X Branch" that responds to the need to plan the expenses incurred in the Promotion and Advertising process since it will be achieved through it undoubtedly a considerable increase in the volume of sale and quality of the Services provided to the National and Foreign Customer by publicizing our Product.

Initially, a comprehensive bibliography review of the updated literature on the subject addressed is made.

For better development, the work is divided into three chapters.

In the first, reference is made to the referential conceptual framework on marketing and specifically to Communication, in the second, the characterization of the entity and the area under study are exposed. Already in the third, the results of the work are presented.

Introduction

Tourism is a social phenomenon that arises as a result of the degree of development that humanity has acquired over time. Due to its growth rates, it has been among the first sources of income worldwide for several years. Within this branch it is evident that there are infinite Advertising and promotional Expenses taking into account the territorial characteristics and therefore they will be susceptible to being Budgeted financially.

The Palmares Non-Hotel Business Group offers customers a variety of products that include gastronomic and recreational services capable of satisfying the non-hotel needs of the national tourist. Cultural gastronomic complexes, restaurants, arts and entertainment centers and fast food facilities, encompasses a range of options where professionalism and efficiency are combined with the history, culture and nature of the island.

In each of them, the client can verify that offering a good service and doing it with pleasure is the premise that stimulates the group's integral work. Together with this proposal, the constant search for new recreational activities, sports and specialized services is added, in order to actively and pleasantly occupy the visitor's free time.

Within this group is the Palmares X Branch, which since its creation as a Branch, has maintained growth in its income and product levels, however many things are required to achieve a successful performance in the acceptance and satisfaction of customers by providing a good service with the expected quality, where the range of products offered could not be disclosed without a well-conceived commercial communication budget.

The completion of this work led us to consult, analyze and study a series of bibliography about marketing, especially the marketing of services by different authors with different approaches, criteria and economic thoughts.

To meet the objective of our work we set different goals such as:

• Review updated Bibliography. Selection of the area to be investigated. Analysis and study of the Accounting Information System.

In order to fulfill the established objective, the team of specialists who are responsible for developing the organization were consulted. Scientific methods were also used, such as: historical-logical, analysis and synthesis, and techniques such as observation and interview with the department's specialists. Accounting and Operations Management, in addition to document review, using the Dialectical-Materialist method.

This allowed us to reach conclusions and recommendations that will be useful to the branch for the improvement of Commercial communication in order to publicize the product and the acceptance it has with customers.

Chapter I. Theoretical foundation

1.1 Generalities about Marketing and its evolution.

Marketing is a social management process, through which different groups and individuals obtain what they need and want, creating and exchanging products of value to others, it is also the study of exchange processes: the way in which you can initiate, motivate, facilitate and complete transactions using a set of principles to choose target markets, identify consumer needs, develop products and services that meet those needs and provide value to consumers and profits to the company, that is, the human activity tending to satisfy wants and needs through exchange processes.

Since its appearance at the beginning of the 20th century, marketing has been conceived as a scientific discipline that has undergone substantial changes, initially considering itself as an applied economy, dedicated to the study of distribution channels. Later it became a management discipline, which included techniques to increase sales. More recently, it has taken on the character of an applied behavioral science, which is interested in understanding systems of relations between buyers and sellers.

Along with the development of marketing, the focus of the same has changed, which began with a product, institutional and functional focus. From 1948 onwards, a managerial approach began and, finally, it was transformed into an exchange relationship.

The definition of marketing is determined by its concept and focus, as well as by its scope. A complete definition of marketing should contemplate the current concept of it, which starts from the needs of the consumer and try to satisfy them, also taking into account the most recent approach of it, which takes the exchange relationship as its object of study.

There are different definitions of Marketing. According to Philip Kotler: Marketing is an administrative orientation that maintains that the fundamental task of the organization is to determine the needs and desires of the target markets and adapt the organization to deliver the desired satisfactions more effectively and efficiently than the competitors.

The American Marketing Association (USA. 1985) defines it as “the process of planning and executing communication and distribution, as well as the pricing of ideas, products and services, for exchanges that satisfy individuals and the objectives of the organization".

According to Lambin (1993) “It is a way of conceiving and executing exchange relationships, in order to make them satisfactory to the parties involved and to society, through the development, valuation, distribution and promotion, by one of the parties, of the goods, services or ideas that the other party needs. "

While Miguel Santesmases considers Marketing: "It is a philosophy of action valid for any organization serving customers" and as a "Social process, aimed at satisfying the needs and desires of individuals and organizations, for creation and exchange voluntary and competitive products and services. "

The function of marketing in a company is to define public objectives and the best way to satisfy your needs and desires in a competitive and profitable way.

Marketing analysis generally focuses on four key components of the marketing mix called the “4Ps”.

• Product: the product or service you offer. Price: the price is charged in terms associated with the sale. Promotion: the communications program associated with the marketing of the product or service. Place: The logistics and distribution function that is involved in making a company's products and services available.

1.2 Communication Marketing.

With modern marketing, it is not only necessary to develop a good product, put an attractive price on it or make it accessible to consumers, but companies must transmit it to their current and potential customers and the general public, assuming the role of communicators and promoters of their products.

Marketing has five main tools.

1. Advertising: consists of all non-personal and paid communication for the presentation and promotion of ideas, goods or services by a specific promoter. Sales promotion: they are nothing more than short-term incentives to encourage the testing or purchase of a product or service Public Relations: it is the set of generic programs that are designed to promote or protect the image of a company or product. Personal sale: it is nothing more than verbal communication with one or more potential clients with the purpose of making a presentation, responding questions and get orders.Direct marketing: consists of using the mail, telephone, fax, email or Internet to communicate directly with certain clients or potential clients or request a direct response from them.

Communication is determined by nine fundamental elements:

1. Emitter Receiver Message Medium Coding Decoding Response Feedback Noise

For there to be objective communication, the following tasks must be performed.

1. Identify the target audience: here the analysis of familiarity and favorability is carried out to eliminate the differences that may exist between the current perception of the public and the image sought. Set the communication objectives: These can be cognitive, affective or behavioral of your audience, that is, the company may want to introduce something into the mind of the target audience, change an attitude to make the consumer act. Define the message: The content of the message, its structure, its format and its SourceSelect the media: The communication channels can be personal or non-personalDistribute the communication budget: it is done through the investment method according to the objectives to be achieved defining their specific objectives.Define the communication MIX: several factors are taken into account, such as the type of market for the product; push and pull strategies; the mental situation of the buyer, the life cycle of the product and the position that the company occupies in the market.Measure the results of the communication: it is verified if they recognize or remember the message, how many times they have seen it, what points they remember, such as they felt when listening to the message, and their previous and current attitudes towards the product and the company. Manage and coordinate the entire process: this is where the entire communication process takes place.Measure the results of the communication: it is verified if they recognize or remember the message, how many times they have seen it, what points they remember, how they felt when they heard the message, and their previous and current attitudes towards the product and the company. the whole process: this is where the whole process of communication takes place.Measure the results of the communication: it is verified if they recognize or remember the message, how many times they have seen it, what points they remember, how they felt when they heard the message, and their previous and current attitudes towards the product and the company. the whole process: this is where the whole process of communication takes place.

1.3 The Marketing Mix.

When an adequate marketing strategy has been formulated, it should be applied taking into account a set of actions that support and execute it. Among this set of actions are the Marketing Mix actions and programs (a set of marketing tools that companies use to achieve their business objectives in relation to a target audience, which have been given the name of four P's: Product, Price, distribution and communication and whose strategies are developed at the tactical level, coordinated in order to enable the achievement of Marketing objectives.

The term product is often used in a broad sense to denote a good or a manufactured product, and a service. Customers don't buy goods or services, they actually buy specific benefits and values ​​of the total supply.

It plays a crucial role in the marketing mix by bringing revenue to business. The decisions regarding the price are significant because they determine the value for the client and intervene in the construction of an image for the service. The price also gives a perception of quality. Price decisions are almost always made by adding a percentage above cost. This approach however loses the benefits that a pricing strategy can offer within the marketing strategy.

The location and channels used to provide services to target clients are two key areas of dedication. Decisions regarding location and channels involve considering how to deliver customer service and where it should take place. This is of particular relevance to services as they generally cannot be stored and are produced and consumed at the same point. Place is also important since the environment in which the service is delivered, and the way it is provided, are part of the value and perceived benefits of the service. The importance of location for a service depends on the type and degree of interaction of the person involved. When the customer has to go to the service provider, the location of the site becomes important.

The promotional element of the service marketing mix plays a vital role in communicating the positioning of the service and / or product to customers. Promotion adds meaning to services and / or products, as it can add tangibility and help the customer make a better evaluation of the service offering. Service promotion comprises several main areas, which are known as communication mix or promotion mix.

1.4 The Marketing Information System

The Information System is defined as the set of structured relationships, where men, machines and procedures intervene, and whose purpose is to generate an orderly flow of pertinent information, from sources internal and external to the company, aimed at serve as a basis for decisions within specific areas of marketing responsibility.

Therefore, it is essential to have a good Marketing information system, both for the company itself in order to determine the objectives and decision-making.

Many authors have referred to the topic of Information Systems, Berenson in 1969 made reference to the following needs caused by the dynamics of the environment:

• The increased complexity of business requires more information and better execution. The advent of techniques that can provide information for adequate decision-making are now available to everyone. The development achieved by the computer media.

In 1966, Kotler raised the dissatisfaction of decision makers expressed in the following typology of complaints, regarding the existing needs within the organization, as the primary cause for the establishment of what would later be called Marketing Information Systems., which he was able to verify through his work with the managers and Marketing specialists of numerous companies:

• Marketing information is so scattered throughout the company that great efforts are usually required to locate simple facts. There is a lot of unnecessary Marketing information and very little Marketing information that is needed. Sometimes important information it is suppressed by other executives or subordinates, for personal reasons. In many cases, important information is obtained too late to be useful. Many times, the information is obtained in a way that does not show reliability of its accuracy and precision and does not there is someone to ask to confirm its validity.

What was proposed by Berenson in 1969 could be added to what was previously referred to as needs of this type:

• The growth of some companies requires the integration of their information in a Marketing Information System so as not to lose it in the dispersion generated by growth. The speed with which Marketing decisions are made has increased. The integration of different Marketing activities in a single person or manager who needs to work with more information and higher quality to execute the Marketing process effectively.

Despite the development of technology and with it the emergence of new tools for information processing in business decision-making, Marketing Information Systems, conceived in the mid-sixties of the last century as instruments of Marketing decision support, can still add value to this purpose. For this reason, the need to reflect on its convenience, to improve the management and Marketing decision-making processes under current conditions.

The necessary stages in any information search process are:

• Obtaining the initial briefing. Research and analysis of the different segments of action. Obtaining data in each of these segments. Work meetings with the teams involved. Treatment of information and contrast of opinions. Conclusions and final report.

Budget

The budget can be defined as a forecast of expenses and income for a certain period of time, usually one year. The budget is a document that allows companies to establish priorities and evaluate the achievement of their objectives. It is an integrating and coordinating plan that is expressed in financial terms, with respect to the operations and resources that are part of a company for a given period., in order to achieve the objectives set by senior management. The budget of a business is usually used as a tool for making decisions about the management and growth of the company's activity.

1.5 Advantages provided by budgets.

Facilitates to the administration the optimal use of the different supplies.

It facilitates the co-participation and integration of the different areas of the company.

Helps achieve greater effectiveness in operations

Facilitates administrative control.

Increase the participation of different levels of the organization, when there is adequate motivation.

Pressures for senior management to adequately define the company's basic objectives.

It is a challenge that is constantly presented to the executives of an organization to exercise their creativity and professional criteria in order to improve the company.

Forces periodic self-analysis.

1.6 Objectives pursued by the budget.

1. Planning and organization: The unification and systematization of activities through which the objectives of the activity are established and the appropriate organization to achieve it. Coordination: Means the development and maintenance of the entity's activities in order to avoid situations of imbalance in the different areas of the same.Direction: It is the executive function to guide or lead and inspect or supervise the activities of subordinates according to plan.Control: It is the action by means of which it is appreciated whether the plans and objectives are They are fulfilling.

1.7 Budget of Commercial Communication expenses.

The last step that must be taken to have a commercial communication budget ready is to budget the expenses that they will have to incur to manage the company taking into account the concepts necessary to guide the issue as they are.

• Advertising: Any paid form of non-personal presentation. Trade and Consumer Campaigns Promotion: They are incentives to encourage purchases or sales. Budget for the fairs, exhibitions, or other professional actions that are intended to be carried out with the distribution channels. Includes the printing of catalogs, programs, promotional objects and other supports intended for the professional use of tour operators, travel agents and other managers of importance for the activity.Public and Press Relations: A set of generic programs designed to improve, maintain or protect the image of the company or product. In the budget are allocations for the attention of the press, VIP personalities and clients, winners and sponsorships of activities,familiarization trips Tourist information system for visitors: intended for direct information to visitors in general and which includes printed materials, telephone, fax or e-mail information, provided by Infotur or on the premises, within the national territory. Research: Studies related to the tourist activity. Corporate or Institutional Communication: Actions related to the company and its identity: Manual of Corporate Identity; brand strategies (brand awareness, labels) and membership payments.Studies related to the tourist activity. Corporate or Institutional Communication: Actions related to the company and its identity: Manual of Corporate Identity; brand strategies (brand awareness, labels) and membership payments.Studies related to the tourist activity. Corporate or Institutional Communication: Actions related to the company and its identity: Manual of Corporate Identity; brand strategies (brand awareness, labels) and membership payments.

Promotional Communication budgets quantify in financial terms the various components of the marketing plan.

The procedures induce specialists to think about the total needs of their tourist entities, and to plan, so that the various components and alternatives can be assigned the necessary importance.

The main operating rules for the distribution and classification of the budgets to take into account are:

1. Secondly, you must take into account the results of research that offers a characterization of the markets and their visitors: arrivals, overnight stays, seasonality, income per tourist, trends, market share, air communications, market segments and products that consume.

2. Thirdly, it will be attentive to how the movement of tourists is behaving in relation to the Caribbean countries, ours and specifically with the tourist entity, as well as the forecasts prepared for each stage or year and for each issuing market.

3. communication in accordance with the forms or actions in which the other competing countries do by activity and by markets.

4. In general, its distribution will be made according to an analysis of the hierarchically ordered needs.

5. Tourism entities assign a percentage of the budget, according to the level of income, to their promotional and advertising addresses, which is centralized by the parent company. The use of it to meet quality indicators according to the category that each institution has will not be excluded for this concept.

6. The communication strategies differentiated by each installation according to its categories must be established: 5,4,3, 2 stars and by type: Club, Paradisus, Brisas, etc. Once the entire hotel network is standardized, the budgets will be differentiated according to communication needs with different amounts.

7. According to the models established for the collection of information, a breakdown of the five fundamental actions established by the UNWTO will be made for each market: Promotion, Advertising, Public Relations and with the press, Information and Research System.

8. Each of these actions will be broken down into another group of activities.

• Promotion: Fairs, Events, Congresses, presentations, road show, work shop, contests, raffles. Advertising: Insertions in media: radio, TV, videos, newspapers, magazines, external: Fences, Murals, DAN, electronic whiteboards, buses, advertising brochures, comarketing. Public and press relations: loyalty program, press conferences, Familiarization groups, Visitor information system: Web page, internal channels, information folders. Research: market studies, products, satisfaction, campaign effectiveness.

9. The sum for each market will offer the total amount necessary.

10. The budget in the tourist entities will include necessary actions linked to the Corporate and Visual Identity Manuals: maintenance and positioning of the brands. Also, the membership fee.

11. 2% of this budget is reserved for contingencies.

12. In each campaign period, its effectiveness will be evaluated, which will make it possible to establish adjustments in marketing strategies. For this evaluation it is necessary to assign a budget.

Chapter II. Methodological procedure used.

2.1. Methodological procedure used.

2.1.1. Search for the necessary information to carry out this work.

This step consisted of locating the fundamental bibliography at the University Center, other information centers and the Internet, in order to support the work and determine what investigative actions are carried out in practice.

This step was carried out through consultation of documents and exchanges with the Palmares team of specialists.

2.1.2. Analysis of the Commercial Communication function at Palmares X.

The purpose of this step is to describe the way in which the company under study develops its Communication function in correspondence with its mission and vision. This makes it possible to know the process of the services that are provided.

To comply with this step, dialogue with the specialist who performs this activity.

2.1.3. Analysis of the situation.

The main objective of this step is to determine the possible acceptance of the essential services of the branch.

In order to accomplish this step, teamwork was used, using specialists, where aspects such as: demand, the behavior of the competition and the information system that is used with both the internal and external public were analyzed.

The aspect related to the possible demand was analyzed based on the number of clients obtained from the previous year for the fundamental services of the branch.

2.1.4. Design of the proposal for a Commercial Communication Budget.

In order to specify the reasonable mode of action that will allow the organization to implement a relevant communication budget that corresponds to its objectives and resources, as well as obtaining profit and satisfactory growth, we proceeded to design said budget.

Chapter III. Analysis of the results.

3.1. Search for useful information to carry out the work.

The information obtained about palmares, allowed to form a broad idea about the activity to which this branch is dedicated and for this it was necessary to study a series of aspects related to Communication marketing in order to carry out this research.

3.2. Analysis of the Commercial Communication function of Palmares.

The Commercial communication process in palmares Las Tunas does not have a defined strategy, it is carried out centrally through the headquarters, not having as a basis a well-founded study of the current and potential markets of the tourist Region, the budget allocated to this order is insufficient. With no participation in national or international fairs and exhibitions, and materials such as brochures, brochures, catalogs and videos for commercialization are also scarce.

3.2.1. What is your market and how do you look for it?

- The PALMARES X market is directed at three large segments, the national tourist whose income is from medium to low level, the foreign tourist who is passing through our facilities directly or indirectly through travel agencies, the so-called free tourists who stay in rental houses and the national client who is hired through the national tourist care contracts established by the MINTUR for the vanguard workers of the Prioritized organizations.

The company carries out its Commercial Communication process when:

• The client visits our facilities.

This process is carried out through:

1. Commercial policy by markets. Market characterization: arrivals, overnight stays, seasonality, income per tourist, trends, market share, air communications, market segments and products they consume. Objective of communication actions for that market.

For this topic it is necessary to know:

• Foreign days tourists. Tourist income by markets. Hotel occupation by Poles. Average stay per tourist and per market.

3.3. Analysis of the situation.

This step began by analyzing the items that make up a 2007 Commercial Communication spending budget.

Taking into account that the entity does not present in its essence an information system that allows the preparation of a budget for commercial communication expenses, but rather presents the expenses incurred for this concept, distributed as Promotion and Advertising expenses. where the games that affected them are not known.

3.4. Design of a Commercial Communication Budget.

Based on the concept and structure of the master budget and taking as a basis the characteristics of the entity that, by dedicating itself to the provision of services to both the national and foreign tourists, have an advantage compared to the companies dedicated to the commercialization of products, since it has the possibility of marketing your services directly with the client, that is why we propose a commercial communication budget information system, where the commercial department knows your budget for this concept.

Regarding the figure to be set, the market indicators and the objectives to be achieved in 2007 must be taken into account. The proposed figures will be in accordance with these goals.

The preparation of the Communication Budget, which logically will be in correspondence with the Strategic Communication Plan, should start from the main criteria and objectives determined in the commercial policy, from the results of investigations that offer a characterization of tourists for each market, how their movement is behaving in relation to the Caribbean countries, ours and specifically with the tourist entity, as well as the forecasts prepared for each stage or year and for each issuing market. In other words, it will be defined based on the objectives and tasks, but being realistic in the analysis and based on market values.

Not all the actions foreseen in a Marketing Plan require financing, many of them are related to the realization of consultations, material studies, information search, contacts through different channels, analysis or decisions that must be made in the Company itself.

3.5 Proposal of the Information System.

Taking into account that the object of analysis of this work is the design of an Information System that enables the preparation of a Commercial Communication Budget, we have focused the study on the aspects that are specifically related to this topic.

Branch managers need real-time reports on the flow of tourists, the domestic and foreign markets, the level of tourists entering our units, as well as the degree of customer and other satisfaction, to provide feedback and at the same time offer the information necessary for decision making.

This Information system for the preparation of the Commercial Communication Budget has been prepared jointly with the specialists and executives of the Operations Department and clients.

We define the following as elements that are part of the information system:

• Tourist Movement to Las Tunas. Remittance Entry Competitive situation Suppliers situation Characteristics of the entity's products or services Acceptance level of the product Economic Analysis Distribution analysis Environment situation. Marketing plan

The marketing plan is one of the most important informative documents within the marketing activity of an entity, it includes the strategic actions to be carried out to achieve contracting levels that ensure the continuity of the production process, planned sales values, measures organizational and essential aspects to achieve customer satisfaction. In practice, within the marketing activity, these actions require a level of financing for their execution. For this reason, they form the basis for preparing the company's commercial budget.

After a detailed analysis of the characteristics of the Marketing plan, we propose to incur the different types of expenses to carry out a proposal for a commercial communication budget, which are: (See Annex II).

Materials, except for maintenance.

• Office and printed materials. Institutional stationery with the logos (images) of the entities. Materials for gastronomy. Disposable consumer items. (doyles, cup holders, removers, napkins, letters, menu, tickets.) Uniform plastic bags. Clothing and footwear defined within the Corporate Identity Manual.

Maintenance materials.

• Repairs and maintenance to facilities. Facade repair and exterior painting. (Image Maintenance of the signs) Repair and maintenance of accesses and roads.

Other contracted services.

• Rental and leasing of premises. Contracted security and physical protection. Artistic services contracted. Customs services. Freight (Transportation of cargo and raw materials). Translation and interpretation. Computational processing to survey and others.

Advertising:

• Agency contracting. Creativity expenses. Print media ads: Media: magazines, newspapers, catalogs, classified pages, etc. Oral media announcements: Support: radio. Announcements in audiovisual media: Supports: Television, promotional videos explaining the use of a certain product, specialized, etc. Outdoor advertising: Supports: (fences, lights, murals, bus signs, posters and awnings. Printed material (loose, catalogs, guides, maps, folding.

Promotional items such as matchsticks, caps, key chains, pens, almanacs, etc., are image vehicles, both corporate and product. They become an instrument of advertising or promotion according to the communication objectives that the company pursues when delivering them. Generally, if these are related to the brand name reminder, it is advertising.

Promotion:

• Participation in Fairs (general and specialized). Exhibitions Gastronomic and / or cultural days. Workshops. Promotional objects Sponsorships

Public and press relations:

• Attention to groups of travel agents and tour operators

Investigation:

• Advertising investment evaluation; effectiveness of insertion in the media, of the campaigns. Market studies. Customer satisfaction studies. Participation in scientific events in the sector. Design of products.

The value of the budget only represents 9.5% of the sales made in the year.

Bibliography

1. Kotler, P.1971. Marketing, Analysis and Planning and Control Department. 2t. City of Havana. Edition of the Ministry of Higher Education.Kotler, Philip. and others. Marketing direction. Havana. Cuba. Editorial Félix Varela.Payne, Adrián. 1996. The Essence of Marketing Services. Mexico. Prentice Hall Hispanoamericana SA.Stanton, W./et.al././sf/. Marketing. Havana city. Editions ENPES.Kotler, Philip. 1985. Fundamentos de mercadotecnia.Santesmases Mestre, Miguel. Marketing. Concepts and Strategies. Madrid. Pyramid editions.