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4. Given Mr. James' charge to the senior vice presidents, how would you portray and assess sales and marketing initiatives, expenditures, and outcomes for fiscal 2004 and fiscal 2005?

4.1 Sales, marketing initiatives, expenditures and outcomes for fiscal 2004
In 2004, the primary objective was to increase overall occupancy rates, focusing on attracting first-time customers from a different segment; the pleasure/vacation traveller. Looking at Exhibit 7, it is evident that a total of $11,360,000 was spent in marketing/media exposure, with 28% of this expenditure focusing on attracting the pleasure/vacation traveller segment. Most of this was done through newspapers, magazines and spot television. The remaining 72% continued to target the business traveller. Through looking at exhibit 7, it is evident that the 2004 fiscal plan introduces the use of internet in marketing/advertising for the first time for Astor Lodge & Suites, Inc. This is critical as it is to be noted that one in five of our customers today are using the internet to plan their trips and make reservations. The objective of 2004 was met; attracting the new segment of the vacation/pleasure traveller, increasing weekend occupancy rates overall, and therefore increasing overall occupancy in fiscal 2004.
Room-nights sold =

1. (a) calculate room-nights sold, (b) multiply this figure by room dollar contribution (average daily rate minus the direct cost per room/suite from case Exhibit 5), to determine total incremental dollar contribution; and (c) subtract the incremental dollar expenditure for marketing (advertising) and sales.

4.2 Sales, marketing initiatives, expenditures and outcomes for fiscal 2005
The fiscal 2005 plan for Astor Lodge & Suites has three main objectives 1. Increase overall occupancy in both guest rooms and suites 2. Attract first-time guests 3.

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