Introduction to hospitality marketing

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Introduction to hospitality marketing
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Lecture plan

• What is Marketing?
• Definitions
• Hierarchy of customer value
• Marketing Concept
• Management Orientations
• Environmental Influences
• Macro
• Micro
• Special Characteristics of Services Marketing
• Hospitality Marketing Mix

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Definitions of marketing

• Many different definitions of marketing
• business philosophy to create and retain
  satisfied customers
• exchange process short term transactional
  marketing
• relationship marketing - development of mutually
  beneficial long-term relationships between
  suppliers and customers
• creating memorable experiences

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Figure 1.1 The hierarchy of customer value
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The marketing concept

• Marketing is
• a business philosophy with the customer at the
  center of a hospitality organizations purpose
• an exchange activity between hospitality
  organizations and their customers
• a management process that focuses on planning for
  the future success of the organization
• a set of marketing tools, which marketers use to
  understand customers needs and wants and to
  develop products, and services to satisfy or
  delight customers
• The central purpose of marketing is to manage
  demand

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Management orientations

• Product or service orientation
• Operations or production orientation
• Selling orientation
• Marketing orientation
• Societal marketing orientation

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Figure 1.2 Marketing orientations
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Figure 1.3 Macro- and micro-environmental
influences on hospitality organizations
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Macro-environmental influences

• The macro-environment
• Political
• Economic
• Socio-cultural
• Technological
• Environmental
• Interaction of PESTE factors

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Impact of macro-environment

• Hospitality companies have limited control over
  PESTE influences but major changes in even one
  PESTE factor can significantly impact on the
  business, either for better or worse
• PESTE factors are constantly changing

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Business cycle

• Growth Occupancy and room rates increase in
  response to growing demand
• Peak Occupancy and room rates remain strong,
  funds still available for investment growth
  tends to slow
• Decline Occupancy begins to decrease
• Trough There is a large imbalance of supply and
  demand during a recession hospitality businesses
  fail
• Resurgence There is a gradual resurgence, and
  the cycle starts all over again

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Figure 1.4 Typical hotel industry cycle
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Micro-environment

• internal company factors
• customers
• employees
• Suppliers
• Intermediaries
• external factors
• direct competitors
• various publics

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Micro-environment

• Hospitality companies have more influence
  over the micro-environment than over the
  macro-environment

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Special characteristics of services marketing

• seasonality
• intangibility
• Perishability
• Inseparability
• Variability
• Interdependence
• supply
• exceeding demand
• high fixed costs

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Hospitality marketing mix

• The term marketing mix is used to describe the
  tools that the marketer uses to influence demand
• The marketing mix is a core concept in marketing
• The hospitality marketing mix adopted in this
  text is
• based on the eight marketing activities

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Figure 1.5 The hospitality marketing mix
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Jobs in hospitality marketing

• People who work in marketing work in
• online and offline advertising, sales promotion
  and publicity
• sales, sales promotion, print and publicity,
  direct mail, advertising,
• public relations and customer relations
• marketing research
• online sales and marketing roles such as guest
  user interface (GUI) management, web product
  development, website sales, search engine
  optimization
• database management, daily web operations and
  content management

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References and further reading

• Albrecht, K. (1992). The only thing that matters.
  Harper Business Books.
• American Marketing Association. (October 2007).
  http//www.marketingpower.
• com/aboutama/pages/definitionofmarketing.aspx.
• Brown, S. (2001). Marketing The retro
  revolution. Sage.
• Carlzon, J. (1987). Moments of truth. Ballinger
  Publishing.
• Chartered Institute of Marketing (2007). Shape
  the Agenda Tomorrows word,
• re-evaluating the role of marketing, October
  2007.
• Grönroos, C. (1994). From marketing mix to
  relationship marketing towards a
• paradigm shift in marketing. Management
  Decision, 32, 420.
• http//www.fairmount.com.
• Kotler, P. (1999). Kotler on marketing. Simon and
  Schuster.
• Kotler, P. (2003). Marketing management. Prentice
  Hall.
• Kotler, P., Armstrong, G. (2010). Principles of
  marketing. Pearson Education.
• Kotler, P., Bowen, J., Makens, J. (2009).
  Marketing for hospitality and
• Tourism (5th ed.). Prentice Hall.
• Levitt, T. (1960). Marketing myopia. Harvard
  Business Review, 38, 4556.
• Pine, J., Gilmore, J. H. (1999). The experience
  economy. Harvard Business
• School Press.