Marketing for Hospitality and Tourism Kotler, Bowen and Makens Service Characteristics of Hospitality and Tourism Marketing Chapter 2 Learning Objectives 1. Describe a service culture. 2. Identify four service characteristics that affect the marketing of a hospitality or travel product. 3. Explain seven marketing strategies for service businesses Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Characteristics of Service Marketing Characteristics of Services Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Steps to Reduce Variability Invest in good hiring & training procedures Standardize The serviceperformance process Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens Monitor Customer Satisfaction © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Service Profit Chain Internal service quality Satisfied and loyal customers Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens Satisfied and productive service employees Greater service value Healthy service profits and growth © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Types of Marketing Internal Marketing Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens Service Marketing Interactive Marketing © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Marketing Strategies Service Differentiation Service Quality Employees As Part Of The Product Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens Perceived Risk Service Productivity Customer Complaints Capacity and Demand © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Recommendations for Improving Service Quality 1. Listening 6. Surprising customers 2. Reliability 7. Fair play 3. Basic service 8. Teamwork 4. Service design 9. Employee research 5. Recovery 10. Servant leadership Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Capacity Management Involve the Customer in the Service Delivery System Cross-Train Employees Use Part-Time Employees Rent or Share Extra Facilities and Equipment Schedule Downtime During Periods of Low Demand Change the Service Delivery System Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Demand Management Use Price to Create or Reduce Demand Use Reservations Overbook Revenue Management Use Queuing Shift Demand Create Promotional Events Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Tips for Managing Waiting Lines 1. Unoccupied time feels longer than occupied time 2. Unfair waits are longer than equitable waits 3. Uncertain Waits Are Longer than Known, Finite Waits Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Terms Interactive marketing Marketing Physical evidence Tangible clues by a service firm that recognizes perceived service quality depends heavily on the quality of the buyer– seller interaction. such as promotional material, employees of the firm, and the physical environment of the firm. Physical evidence is used by a service firm to make its product more tangible to customers. Internal marketing Marketing by a service firm to train effectively and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. Revenue management A pricing method using price as a means of matching demand with capacity. Service culture definition to look Organization image The way a like this. Definition to look like this. person or group views an organization. Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Terms (cont.) Service inseparability A major characteristic of services; they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. Service intangibility A major characteristic of services; they cannot be seen, tasted, felt, heard, or smelled before they are bought. Service-profit chain A model that shows the relationships between employee satisfaction, customer satisfaction, customer retention, value creation, and profitability. Service variability A major characteristic of services; their quality may vary greatly, depending on who provides them and when, where, and how they are provided. Service perishability A major characteristic of services; they cannot be stored for later use. Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved