The Market and Marketing System of Hospitality and Tourism Sectors RECAPT DEFINITION OF MARKETING Marketing involves the interaction and interrelationships among consumers and producers of goods and services, through which ideas, products and services and values are created and exchanged for the mutual benefit of both groups.” NEED VS. WANT NEEDS are requirement WANTS basic HUMAN are needs directed to specific objects/services that might satisfy the satisfy the need. DEMAND DEMAND is the wants for specific product with the ability to pay for it. to pay for it. UNIQUE CHARACTERISTICS OF THE TOURISM INDUSTRY 1. Intangible 2. Inseparable 3. Variable 4. Perishable 5. Seasonal 6. Substitutable MARKETING IN THE NON-SERVICE INDUSTRIES Production-Orientation Era 2. Sales-Orientation Era 3. Marketing-Orientation Era 4. Societal-Marketing Era 5. Online-Marketing Era 1. The Hospitality and Travel Marketing System LEARNING OBJECTIVES: 1.Define Service Marketing 2.Explain Why Service Marketing is different 3.Explain why Hospitality and travel Services Marketing Different 4.Different Approach needed for Hospitality and Tourism 5.Identify the Systems Approach 6.Discuss the Characteristics of Systems in the Hospitality and Travel Industry 7.Discuss the Relationship of the System to strategic and Tactical Marketing Planning What is MARKETING? MARKETING? Marketing is the study and management of exchange relationship. Is the business process of creating relationships with and satisfying customers, because Marketing is used to attract customers. What is SERVICE MARKETING? SERVICE MARKETING? Morrison (2010) Service Marketing “is a concept based on a recognition of the uniqueness of all services it is a branch of marketing that specifically applies to the service industries” Why SERVICE MARKETING is different ? It is different from marketing goods because of the unique characteristics of services namely INTANGIBILITY, VARIABILITY, PERISHABILITY AND INSEPARABILITY CHARACTERISTICS OF SERVICES INTANGIBILITY INSEPARABILITY Services cannot be separated from their providers Services cannot be seen, tasted felt, heard or smelled before purchase SERVICE MARKETING VARIABILITY Quality of services depends on who provides them and when, where and how PERISHABILITY Services cannot be stored for later sale or use Why Hospitality and travel Services Marketing Different? o Marketing terms and principles were defined for the manufacturing industry. o Parts of industry have been highly regulated. o Industry is dominated by small businesses. o There has been an historical tendency for technical-and operations-oriented people to create and manage businesses. Many Different Approaches to Defining Our Industry 1. 2. 3. 4. 5. 6. 7. It It It It It It It is the hospitality industry! is the food service industry! (or foodservice!) is the lodging industry! is the food service and hospitality industry! is the travel and/or tourism industry! depends where you are! is not an industry at all! There’s no universally-accepted definition of our “industry” The Systems Approach • An alternative way of looking at industries and organizations. • A system is a collection of interrelated parts that work together to achieve common objectives. • Macro-system • Exists at the hospitality and travel industry level • Micro-systems • Are found at the individual organization level Characteristics of Systems in the Hospitality and Travel Industry OPENNESS- Friction and Disharmony Complexity and Variety Interdependency Responsiveness Competitiveness Characteristics of Systems in the Hospitality and Travel Industry 1. Openness- the micro-systems or individual organizations in the hospitality and travel industry which are dynamic, constantly undergoing change. 2. Complexity and Variety Range of small businesses to multinationals conglomerates. The interrelationships among the different organizations are complex. 3. Responsiveness Must be responsive to change or we will not survive All systems must have feedback mechanisms Characteristics of Systems in the Hospitality and Travel Industry 4. Competitiveness Competitive power and intensity increase as large corporations increase in size and market share. 5. Interdependency Macro system includes a variety of interdependent and interrelated businesses and organizations involved in serving the needs of customers who are away from home. 6. Friction and Disharmony Points of conflict, stresses, and tensions Do not perform exactly as we think they should. THE HOSPITALITY AND TRAVEL MARKETING SYSTEM WHERE ARE WE NOW HOW DO WE KNOW IF WE GOT HERE HOW DO WE MAKE SURE WE GET THERE WHERE WOULD WE LIKE TO BE HOW DO WE GET THERE 4 FUNDAMENTALS SYSTEM STRATEGIC MARKETING MARKETING ORIENTATION DIFFERENT BETWEEN PRODUCT AND SERVICES MARKETING UNDERSTANDING CUSTOMER BEHAVIOR BENEFITS OF USING THE SYSTEM 1. PRIORITY OF PLANNING Short term/Long term 1. LOGICAL FLOW OF EFFORTS 2. BETTER BALANCE OF MARKETING ACTIVITIES 6 BASIC PURPOSES 1. Identifying alternative marketing approaches 2. Maintaining uniqueness 3. Creating desirable situations 4. Avoiding undesirable situations 5. Adapting to the unexpected 6. Facilitating the measurement, monitoring and evolution of results. The Hospitality and Travel Marketing system and Airline Flight Analogy -The Hospitality and Travel Marketing System is a systematic process of planning, researching, implementing, controlling and evaluating an organization's marketing activities. STEPS Hospitality and Travel Marketing 1. Where are we now? Current Situation 2. Where would we like to be? Desired Future Situation 3. How do we get there? Marketing Plan Monitoring and Adjusting Marketing Plan Evaluating and Measuring Results of Marketing Plan 4. How do we make sure we get there? 5. How do we know if we got there? Airline Flight Current Airport Location Destination Airport Flight Plan Monitoring and Adjusting Flight Plan Evaluating Flight Plan and Filling in Pilot's Log Hospitality and Travel Marketing System Tasks and Steps. The PRICE of Marketing System Tasks/Functions Steps/Questions • Where are we now? P - Planning and • Where would we like to be? R - Researching • How do we get there? I - Implementation • C - Control How do we make sure we get there? E - Evaluation • How do we know if we got there? Relationship of the system to Strategic and Tactical Marketing Planning Most books use the terms STRATEGIC and TACTICAL to refer to the Two Branches Of Planning Required for Effective Marketing. • LONG TERM (Strategic Planning) -is a period of more than 2 years • SHORT TERM (Tactical Planning) -covers 2 years or less Plan - It is a procedure,worked out in advance for achieving clearly-stated objectives. Planning -It is a management activity of looking into the future and developing procedure in advance to achieve objectives. Marketing Planning - Is an activity of Marketing managers who try to anticipate future events and develop procedures for realizing marketing objectives. Marketing Plan -It is widely used in industry to mean a short-term plan for two years or less.
