Chapter 1: Marketing for Hospitality
Scope:
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Relationship between world’s hospitality and travel industry.
Define marketing outline the steps in marketing process.
Why marketing concept called for customer orientation.
Concept of lifetime value of customer and relate to customer loyalty and retention.
1. Marketing in Global Economy
Main major companies:
Accor= world’s largest hotel chain
Ritz-Carlton=memorable experience
McDonald’s= World’s largest restaurant
2. To become successful
Simplest way to define the meaning of marketing:
 Take care of your customer
 The profit and market share will follow
 Manager motivate employee to create supervisor.
 Deliver customer satisfaction at a profit
3. Customer Orientation
The purpose of business is to create maintain profitably customer:
 Customers attract and remain when their needs are met.
 Customers talk favorably to others.
Customer satisfaction leading to profit is the central goal of hospitality marketing.
4. What is marketing?
It is the social and managerial process by which individual and groups obtain what they
need and want through creating and exchanging products and value with others.
Ex. Product exchange with $$
5. The marketing mix
 Advertising and sales are the component of promotional element of marketing mix.
 The 4Ps framework called for marketing to decide
- Product: Tangible and Intangible (Service business)
- Price
- Place: How to distribute products.
 Some critics feel the 4Ps underemphasize or omit certain important activities.
6. Marketing process
Five-step model for company to understand consumers, create customer value, build
customer relationship.
1. Understand the market place and customer needs and wants.
2. Design a customer driven market strategy.
3. Construct an integrated (combine) marketing program that delivers superior
value…keep relationship with customer. ex. Advertising+PR+Promotion
4. Build profitable relationship and create customer delight.
5. Capture value from customer to create profit and customer equity (capture value from
customer in return)
7.
Needs, Wants, and Demands
 Needs: The most basic concept underlying market is that of human needs.
 Wants: How people communicate their needs and wants are described in terms of
objective that will satisfy needs.
 Demands: People have almost unlimited wants, but limited resources, and so choose
products that produce the most satisfaction for their money.
 When backed by buying powers wants become demands.
8. Product
Product is anything that can be offered to a market for attention, acquisition, use, or
consumptions and that might satisfy a need or want.
9. Voice, Satisfaction and Quality
 Customer Value: is the different between customer benefit from owning or using a
product and the cost of obtain it product.
 Customer Satisfaction: depends on product is perceived
 Customer expectation: are based on past buying experience, the opinion of friend.
 Quality: is the totality of features and characteristics of a products or service that bear
on its ability to satisfy customer needs.
P
P<E
(Dissatisfy)
E
P=E
(Satisfy)
P>E
(Very Satisfy/Delight)
10. Exchange, Transaction, and relationship
 Exchange: is the act of obtaining a desire object from someone by offering something in
return.
 Transaction: is market’s unit of measurement and consists of a trade of values between
2 parties (beyond attracting new customer and creating transaction the goal is to retain
customer and grow their business with the company) ex. No need to be only $$ if you
are a hotel owner you can offer 2 night stay in exchange with advertising on newspaper.
 Relationship marketing: build and relationships with values customer, distributors,
dealers, suppliers by promising and consistently delivering high quality products, good
service, and fair prices.
11. Marketing management
Marketing management is analysis, planning, implementation, and control of program
designed (APIC)
12. Five marketing management philosophies
 Production concept: Management should focus on production and distribution
efficiency.
 Product concept: Management should develop good vision of existing products and
produce forms.
 Selling concept: Consumer will not buy products unless the organization takes
promotion effort.
 Marketing concept: Determining needs and wants, deliver satisfaction which more
effectively than the competitors.
 Societal marketing concept: Marketing concept in the way that maintains or improves
the consumer’s and society’s well being (environment—ex. True coffee-using paper cup
instead of foam cup.)
13. Preparing and integrated market plan: 4Ps.
 Customer Relationship Management (CRM)
 A customer touch point: any occasion a customer encounters the brand and product, in
actual experience, personal/mass communication or casual observation.
 Customer Loyalty and Retention
- Lifetime value: is the stream of profits a customer will create the life of business
relationship.
 Market’s future: the internet has changed the way we distribute travel products, but as a
market force it just a little over 10 years old.
14. Marketing future
Rapid change can quickly make yesterday’s winning strategies out of date.