Fig. 4.1 shows an advertisement in a golf magazine for the reopening of a Golf & Spa Hotel. FAMOUS GOLF STARS JOIN IN CELEBRATIONS FOR THE REOPENING OF LUXURY GOLF & SPA HOTEL Book before it's too late and enjoy early bird offers! [Figure 4.1 Advertisement in golf magazine] Use Fig. 4.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2020). The mark or mark type is shown in brackets.

1. [1] Hero worship / affluence / luxury / ambition / celebrity
2. [1] An opening offer / discount / benefits available only to those who book early / first.
3. [1] Email / letter / text
4. [1] Leaflet / flyer / cards / poster / brochure / booklet / pamphlet / noticeboard / notice on hotel door / face-to-face.
5. [Yes point 1] the advertising is targeting golfers which will be a group of people visiting the hotel
6. [Yes point 2] the information can be passed on / shared with other golfers / there is a lot of content / kept as reference
7. [Yes point 3] informing them of the golf activities at the hotel / as more golfers will go to the hotel for golf facilities
8. [Yes point 4] cheaper / affordable than TV
9. [Yes point 5] magazine are high quality with glossy pictures / can be afforded by golfers staying at a luxury hotel
10. [No point 1] the advertising will only be reaching a select group of people / people interested in golf
11. [No point 2] there will be other people visiting the hotel / e.g. people who want to take advantage of the spa / who are not interested in golf / not increasing their customer base
12. [No point 3] magazines lack sound / movement compared to TV / newspaper
13. [No point 4] are expensive to buy / advertise in
14. [No point 5] advert may not be noticed because of competing adverts
15. [No point 6] better to advertise on social media / internet / newspaper
16. [No point 7] unable to be read by illiterate people.
17. [3] Net profit = $490 000
18. [1] Method $1 900 000 – $575000 = $1 325 000
19. [1] – $835 000
20. [2] or $1 900 000 - $1410 000
21. [Improving marketing point 1] Improving marketing such as advertising on radio should lead to more bookings and so increase turnover / sales and therefore net profit will be increased if costs stay the same.
22. [Improving marketing point 2] Hotels offering a better price than their competitors are more likely to increase hotel bookings.
23. [Improving marketing point 3] There is an opportunity for any hotel to upsell additional services for example, taxi-transfer, flowers, and dinner reservations. As a result, the guest will enjoy their stay more and the hotel earns more revenue – everyone benefits.
24. [Improving marketing point 4] Hotels can also increase revenue by selling branded hotel products like towels, linens, and shampoos and making special ticket offers for an upcoming golf event.
25. [Reducing expenses point 1] There are also many ways that a hotel can reduce costs, e.g. reducing staff levels when the hotel is less busy, so wage costs are less.
26. [Reducing expenses point 2] Switching to cheaper suppliers e.g. food and the use of LED lighting will reduce energy bills.
27. [Reducing expenses point 3] Encouraging guests to reuse towels and bed linen will help save laundry costs.
28. [Reducing expenses point 4] Cutting the range of menus can save food costs.
29. [Evaluation point 1] Both improved marketing and reducing expenses may improve the net profit of the hotel.
30. [Evaluation point 2] However, improved marketing will add to costs and can only be justified if sales improve which may take time to happen and will have most effect on gross profit.
31. [Evaluation point 3] Reducing expenses will improve net profit more quickly but if it reduces the quality of service or food, customers will not be happy, and bookings could fall.
32. [Evaluation point 4] The hotel might try to do both.
33. [Up to 2 marks] for describing improving marketing and/or reducing expenses
34. [Up to a further 2 marks] for analysing improving marketing or reducing expenses
35. [Up to a final 2 marks] for evaluating whether improving marketing or reducing expenses is the most effective way to improve net profit of the hotel.