Marketing for Marketing for Hospitality and Hospitality and

TourismTourism

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Key TermsKey Terms

• Marketing

• Marketing Concept

• Marketing Management

• Marketing Manager

• Product

• Product Concept

• Quality

• Relationship Marketing

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Key TermsKey Terms

• Create and maintain customers

• Demands

• Exchange

• Hospitality Industry

• Human needs

• Human wants

• Manufacturing Concept

• Market

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“Marketing is so basic that it cannot be considered a separate function. It is the whole of business seen from the point of view of its final result, that is, from the customers point of view…Business success is not determined by the producer, but by the customer.”- Peter Drucker

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Course OverviewCourse Overview

1.1. Understand the hospitality and Understand the hospitality and tourism marketing processtourism marketing process

2.2. Recognize developing hospitality and Recognize developing hospitality and tourism marketing strategies tourism marketing strategies

3.3. Understand how to develop the Understand how to develop the hospitality and tourism marketing mixhospitality and tourism marketing mix

4.4. Comprehend managing hospitality Comprehend managing hospitality andand tourism marketing tourism marketing

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Chapter ObjectivesChapter Objectives

1.Understand the relationships between the world’s hospitality and travel industry

2.Define the role of marketing and discuss its core concepts

3.Explain the relationship between customer value satisfaction and quality

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Chapter ObjectivesChapter Objectives (Cont’d)(Cont’d)

4.Discuss how marketing managers go about developing profitable customer relationships

5.Understand how the marketing concept calls for a customer orientation

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The Travel IndustryThe Travel Industry

• The travel industry is the world’s largest services industry

• One billion international travelers by 2015

• Over $1.$1.77 trillion trillion in receipts by 2012 (both int’l and domestic)

• Explosive growth in the past 30 years (Dubai, Cancun, and other destinations)

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What is MarketingWhat is Marketing?

Marketing is a social and managerialmanagerial process by which individuals and groups obtain what they need and want through creating and exchanging productsproducts and valuevalue with others

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What is Marketing?What is Marketing?–Beyond sales sales and advertising advertising–Beyond the physical aspects of a businessphysical aspects of a business– Marketing encompasses Marketing encompasses all aspects all aspects of an of an

organizationorganization– Involves the entire buying process entire buying process from

the initial customer need before purchase to supporting the product/service after to supporting the product/service after purchasepurchase

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What is Marketing?What is Marketing?Marketing’s Role in Creating Value:Marketing’s Role in Creating Value:

–Marketing brings customers brings customers into the tourism & hospitality organization

–Marketing keeps customers backback– ReturningReturning customers provide value to the

organization by giving the organization revenue, positive word of mouthrevenue, positive word of mouth, and constructive criticism constructive criticism when things go wrong

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What is Marketing?What is Marketing?

• According to Philip KotlerPhilip Kotler;• “Marketing is aMarketing is a social and managerial social and managerial

process by which individuals and process by which individuals and groups obtain what they need and groups obtain what they need and want by creating and exchanging want by creating and exchanging products and value with othersproducts and value with others”

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Importance of MarketingImportance of Marketing

• Corporate giants have increased Corporate giants have increased marketing importance for entire industrymarketing importance for entire industry

• Predicted hotel consolidation into 5 or 6 Predicted hotel consolidation into 5 or 6 chains will create intense competitionchains will create intense competition

• Growing competitive pressures Growing competitive pressures increasing importance of the Marketing increasing importance of the Marketing DirectorDirector

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens13

Categories of MarketingCategories of Marketing

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1) 1) Social MarketingSocial Marketing

Organisations providing non-commercial services, such as educationaleducational ininsstitutionstitutions, have to communicate their product to their customers, their students. Ideas, will require communicating. The churches, charity organisations, political lobbies all aim to satisfy certain needssatisfy certain needs and the employment of effective communications techniques will help them to do so.

Social MarketingSocial MarketingThe concept of social marketing social marketing is a relatively

recent one, and brings home the point that organisations of all types can apply good marketing practice to their activities.

Tourism enterprises are formed by a combination of public public & & private partnershipsprivate partnerships, in which one of the partners will have a profit profit motivemotive while the other’s concern will be to achieve a given targeta given target.

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Social MarketingSocial Marketing• For example; a Regional Tourist Board Regional Tourist Board may

have the ambition to increase the number of visitors to a given destination mainly out of season, any commercial partner must be willing to establish its own aims and target aims and target profits profits within these parameters.

Consumer and Industrial MarketingConsumer and Industrial Marketing• Products are sold to two kinds of buyers,

those who buy for their own consumptiontheir own consumption, and those who buy on behalf of otherson behalf of others.

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Consumer and Industrial MarketingConsumer and Industrial Marketing

The term consumer marketing is used to describe the practice of marketing to the former category former category (own)(own), and industrial marketing to the latter latter (others). (others).

Just as manufacturing industries buy raw buy raw materials materials to convert into finishedfinished products for their customers, and retail shops buy stock to sell to their customers, so in the travel world there are many forms of industrial buyers. industrial buyers.

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Consumer and Industrial MarketingConsumer and Industrial Marketing• Many large companies whose stuff are engaged

in frequent business travelfrequent business travel will employ travel managers, whose task it is to arrange all the business travel of the company employees.

• Business conferences are often organized by professional firms of conference organizers, rather than by firms whose employees actually attend the conference attend the conference .

• Hotels, airlinesHotels, airlines, and other travel companies travel companies will be eager to solicitsolicit business from these industrial buyers.

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Home and Export MarketingHome and Export Marketing

• Export marketing or international international marketing marketing is a specialised field of marketing which will have to take into account different legal sydifferent legal systems and business climbusiness climaates, different cultures tes, different cultures affecting buying behavior, and the problems associated with transporting products abroad.

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Home and Export MarketingHome and Export Marketing

• Tourism again is substantially concerned with export marketing,export marketing, since it is accepted as mostly exporting services (travel services, hospitality services, entertainment services etc.) and partly goods (souvenirs) to the tourists who are coming to country and/or destination.

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Core Marketing ConceptsCore Marketing Concepts

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Needs, Wants, and DemandsNeeds, Wants, and Demands

• A human needneed is a state of felt deprivation (lack)

• WantsWants are how people communicate their needs

• When backed by buying power, wants become demandsdemands

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ProductProduct

• A product is anything that can be offered to satisfy a need or a want

• What are some travel and tourism “productsproducts” that you can list?

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Value, Satisfaction, and QualityValue, Satisfaction, and Quality

• Customer value is the differencedifference between the customer benefitsbenefits from owning and/or using a product and the costscosts of obtaining the product

• Customer satisfaction is perceivedperceived value delivered relative to a buyer’s expectationsexpectations

• Quality is the totality of featuresfeatures and characteristics of a productproduct or service that bear on its ability to satisfy customer needs

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Exchange, Transactions, and Relationship Exchange, Transactions, and Relationship MarketingMarketing

• ExchangeExchange is the act of obtaining a desired object from someone by offering something in return

• A transactiontransaction is marketing’s unit of measurement and consists of a trade of values between two parties

• Relationship marketingRelationship marketing is building strong economic relationships with company’s profitable customers.profitable customers. Relationships include customers, distributors and suppliers.

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MarketsMarkets

A market is a set of actual and A market is a set of actual and potential buyers who might potential buyers who might transact with a sellertransact with a seller

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Marketing ManagementMarketing Management

Marketing management is the analysis, planning, implementation, analysis, planning, implementation, and control of and control of programs designed to create, build, and maintain beneficial beneficial exchanges exchanges with target buyers for the purpose of achieving organizational organizational objectivesobjectives

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Marketing ManagerMarketing Manager

A person involved in A person involved in marketing analysis, planning, marketing analysis, planning, implementation, and control implementation, and control activitiesactivities

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Marketing Management PhilosophiesMarketing Management Philosophies

• Manufacturing (production orientation)

• Product (product orientation)

• Selling (sales orientation)

• Marketing (market orientation)

• Societal Marketing (socially responsible marketing)

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Manufacturing ConceptManufacturing Concept

• Consumers favor available and highly affordableaffordable products

• Management should improve productionproduction and distributiondistribution systems

• However, don’t forget the customer!

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Product ConceptProduct Concept

• Consumers prefer existingexisting products and product forms

• Management’s job is to develop goodgood versionsversions of these products

• Inward focused like the Manufacturing Concept, so don’t forget your customers!

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Selling ConceptSelling Concept

• Consumers will not buy enough products unless the company undertakes large selling and promotion large selling and promotion efforts

• Aim is to maximize sales without worrying about customer satisfactionsatisfaction

• FailsFails to establish a long-term relationship with customers

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Market ConceptMarket Concept

• Achieving organizational goals depends on determining the needs and wants of target markets and delivering desired satisfaction better than competitorscompetitors

• Creates long term customer relationshipslong term customer relationships• Frequently confused with “SellingSelling

ConceptConcept”

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Marketing and Sales Concepts ContrastedMarketing and Sales Concepts Contrasted

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Societal Marketing ConceptSocietal Marketing Concept

• Organization should determine the needs, wants, and interests of target target markets markets and deliver the desired satisfaction more effectivelyeffectively and efficientlyefficiently than competitors in a way that maintains or improves the consumer’s and society’s well-being

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The Future of MarketingThe Future of Marketing

• Rapid changeschanges make yesterday’s techniques out-of-date

• All company departments are becoming involved in satisfying satisfying customerscustomers

• A focus on internalinternal as well as external marketingexternal marketing

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Marketing Skills for TourismMarketing Skills for Tourism

CreativityCreativity• MMake something ake something out of nothing• Create the brandingbranding, create the positioningpositioning,

find the nicheniche develop the words, the visuals, the images that make a brand the brochure, the website, the positioning statement

• Keeping freshfresh and currentcurrent so that think of new ways of approaching industry partnerships and a new sponsorshipsponsorship program

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Marketing Skills for TourismMarketing Skills for Tourism

CreativityCreativity• Innovative pproduct developmentroduct development

requires requires 5 Stage process5 Stage process– Saturation– Preparation– Incubation kuluçka

– Illumination aydınlatma

– Verification confim

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Marketing Skills for TourismMarketing Skills for Tourism

CommunicationCommunication– Learn 3 languages 3 languages – mother tongue,

national & international– Polite speechspeech, Good body languagebody language– Good personalitypersonality– CourtesyCourtesy calls– Letters

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Marketing Skills for TourismMarketing Skills for TourismCommunicationCommunication

– Fax– E-mail messages– Must allow visitorvisitor to speak– If language is barrier then show standard

picturespictures or symbols– Neat maintenancemaintenance of travel documents– Advertisement in target customer’s target customer’s

languagelanguage

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Self MotivationSelf Motivation– Self motivated to work and deliver concrete

results– Motivation and morale are closely related – If morale is highhigh, motivation will be high to

give sterling/real performance– Motivation factors are – backgrounds, backgrounds,

education, family status, economic conditioneducation, family status, economic condition– Person to person treatment would develop

the organization

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Team building Team building – Socio cultural norms, if the team changes this

norms and values effect is immediate and ever lasting

– Tasks are completed faster than an individual does

– Team work leads to synergysynergy

– Team work gives status recognitionrecognition, reverence to all

– Single person cannot deliver results deliver results on his own

– Groups become teamsteams44

Team building Team building – CommonCommon workingworking approach, performance

goals

– Hard work, discipline, dedication to purpose , willingness to adopt new technologies

1. ThankThank a colleague

2. ComplimentCompliment a colleague

3. InviteInvite a colleague

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Personality developmentPersonality development

• An individual's personality is an aggregate conglomeration of decisions we've made throughout our lives

• There are inherent natural, genetic, and environmental factors that contribute to the development of our personality

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Personality developmentPersonality development

• "personality also colors our values, personality also colors our values, beliefs, and expectations ..beliefs, and expectations ... Hereditary factors that contribute to personality development do so as a result of interactions with the particular social environment in which people live.“

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Discussion QuestionsDiscussion QuestionsChoose three restaurants or hotels or on the web pages. Based on the information provided in each company’s web site;A.Describe how each of these companies tries to satisfysatisfy a customer’s wants?B.How does each of these companies create value create value for the customer?C.Do they segmentsegment the market by offering pages for a specific market segmentspecific market segment?D.Select the company you would purchasepurchase and state why?

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End of Chapter End of Chapter SlidesSlides

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