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At any given property, which of the following is a valid argument in favor of marketing for group business?

a. There are economies of scale or savings generated by selling and delivering a bulk of rooms to group business.
b. Individual guests within the group may spend more (have a higher worth) than regular guests.
c. Group business represents a high percentage of the industry's occupancy.
d. All of the above
e. None of the above

User Kwao
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1 Answer

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Final answer:

Marketing for group business is advantageous due to its significant occupancy contribution, the potential for increased revenue, repeat bookings, and industry-wide benefits from collective action and favorable government policies.

Step-by-step explanation:

One valid argument in favor of marketing for group business is that it often represents a high percentage of the industry's occupancy. By targeting group business, properties can secure large blocks of rooms and meeting spaces, which can lead to increased revenue and economies of scale. Moreover, group clients tend to book ancillary services such as catering and audio-visual equipment, further enhancing profitability. Additionally, successful group business can lead to repeat bookings and referrals, expanding a property's client base.

Several competing corporations might join together in an association because there is strength in numbers, they often have common issues that may affect an entire industry, and they can all benefit from favorable governmental policies. This collective action can address problems that are less severe in small groups, where free riding is minimized, monitoring of behavior is more straightforward, and peer pressure is more influential.

Competing in an industry where economies of scale are very small, slash pricing reputations, or a well-established brand name, can have distinct economic and marketing implications for a business. Assessment of market and competition strategies is critical in developing a strong business positioning.

The representativeness of interest groups in the United States can be debated. While some argue that all active and legitimate groups have the potential to make themselves heard, others believe this potential can be an illusion due to structural and resource-based barriers that favor certain groups over others.

User Danchoys
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