Marketing

What is Marketing? Segmentation and Marketing Marketing Services

What is Marketing

Human activity directed towards satisfying needs and wants through “exchange” processes

What is Marketing

A social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others

What is Marketing

Marketing, like many other terms associated with recreation and leisure, is not easily defined

Ideas about marketing have changed over time

One might simply define marketing as “anything that facilitates exchange”

What is Marketing

Please note that marketing and selling are not the same thing!

Marketing is often given negative association based on its confusion with selling

Identifying A Market

Markets are identified in numerous ways: Looking at existing products Listening to consumer

complaints/suggestions Demographic trends Direct consumer solicitation

Market Segmentation

Once a market is identified, the market is then divided into segments

This division leads to an identification of subgroups of the larger market as being made up of clusters of people with like qualities

Target Marketing

Once segments are identified and labeled, products can be marketed at a particular segment. This is called target marketing.

Target marketing is more effecting than general blanket marketing in that there is an indication that your market is clearly interested in your product.

Target Marketing

For many scholars, target marketing is the only true marketing based on its pre-identification of a select market

Often blanket marketing may be used in advance to help identify a particular market segment (consumer response, surveys, etc may be used)

Positioning

The combination between the selected target market and the appropriate market mix (see 4Ps)

Marketing Services

As discussed before, resorts often market services or experiences, rather than goods products

Because of their intangible quality, service products and experiential products may require special marketing techniques

4Ps of Marketing

Product Price Place Promotion (Oddly enough, the customer is not

part of the traditional 4Ps of marketing)

4Ps of Marketing

The 4Ps may not be sufficient given that the customer is present during the service production and delivery process

The customer will encounter the “service factory” and other people that may impact the subjective quality of the service product

3 Additional Ps

Physical Evidence Process (and Procedure) People

Physical Evidence

There are always tangible aspects of the service product: Appearance and condition of facilities Hotel rooms Restaurants The kind of car your lawyer drives???

Physical Evidence

Service products may be difficult to appreciate at a later date (unlike goods products)

Service providers often supply tangible reminders of the service T-shirts Post cards Bath robes Other souvenirs

Process and Procedure

Processes often affect the nature of a service product more than a goods product

The more restrictive the process, the more likely the customer will be unsatisfied Penalties for late bookings Restaurant dress codes Rules of conduct Hours of use

People

Possible the most important of the Ps People can include the employees of

the service provider as well as the customers

People

In the purchase of goods products, the attitude or appearance of the personnel manufacturing the product is of little interest and most likely not apparent (except when Nike or some other company is accused of sweat shopping)

People

Other customers purchasing the same good are encountered only during the purchase process itself (unlike a service product…say a theme park…where other customers are encountered continually and may greatly affect the environment and ultimately the satisfaction levels of that product)

People

The consumer’s own temperament or recent experiences are much less likely to affect the performance of a good’s product

Key Terms

Satisfaction Quality Value

Market Segmentation Magic

Wal-Mart Disney Cruise Lines

Wal-Mart

Brand Distinction

Hotels use brands to attract different audiences

Brands may be created within one hotel chain, or a chain may buy another chain, which gives them additional brands

Brand Distinction

Until the 1980s, it was often thought that one brand name with many levels was the best policy

It was felt that this might confuse customers

Brand Distinction

During the late 1980s and definitely in the 1990s, creating new brands become the trend

Corporate take-over was also a big trend of the 1990s

Each audience could then clearly identify with a certain brand and avoid confusion

“Purina” Method

Own the competition Create as many possible variations

on your product as possible to appeal to as many different market segments as possible

You may even create directly competing brands that target the same market segment

Pampers/Luvs

Both companies are owned by Proctor and Gamble

To increase their shelf space, Proctor and Gamble invented Luvs Appealed to slightly different market segment Allowed for Proctor and Gamble to dominate

the shelf space (if you want Pampers, you have to carry Luvs too)

Coke does the same thing

Hotels on the Highway

Marriott Grouping different brands to

attract new convention markets

Fills up zoned “shelf space” at highway exits

Disney/Las Vegas

Own several resort properties with different themes to appeal to different markets

Own several theme parks to beat out competition

Movie studios create battles between their top films, which gives them more headline space in the press

Hyatt Regency

Hyatt Regency and Hyatt

Hyatt Hyatt Regency,

Grand Hyatt and Park Hyatt

Hyatt sold off less glamorous hotels

Hyatt Regency, Atlanta(The first atrium hotel)

Hyatt Regency, San Francisco

                                    

             

Hyatt Object

Hyatt Regency, Dallas

Hyatt Regency, Kansas City

(Largest structure disaster in terms of human life)

                                    

             

Marriott Marquis, Atlanta

(Looks more like a Hyatt – Kind of like Coke trying to taste like Pepsi)

Marriott Marquis, Atlanta

Marriott Marriott Hotels and Resorts Marriott Executive Apartments Marriott International Ritz-Carlton Marriott Vacation Club International Renaissance Hotels and Resorts Residence Inn Courtyard Town Place Suites Spring Hill Suites Fairfield Inn

Starwood

Westin W Hotels Sheraton Four Points St Regis Luxury Connection

Hilton

Hilton Doubletree Embassy Suites Conrad Hotels Hampton Inn Hilton Grand Vacation Club Hampton Inn and Suites Hilton Garden Inn Homewood Suites

InterContinental Hotels Group

InterContinental Hotels and Resorts Crowne Plaza Hotels and Resorts Holiday Inn Hotels and Resorts Holiday Inn Express Holiday Inn Select Holiday Inn Garden Court Staybridge Suites

Cendant(World’s Largest)

Ramada Inn (although Ramada International is owned by Marriott)

Super 8 Motels Howard Johnson’s Days Inn Travel Lodge AmeriHost Inn Knights Inn

Carlson Companies

Radisson Hotels TGI Fridays Park Plaza Hotels and Suites Park Inn Country Inn and Suites Golden Arch Hotels

Choice

Quality Inn Comfort Inn Roadway Inn Comfort Suites Sleep Inn Clarion Econo Lodge

InterContinental Hotels Group

InterContinental Hotels and Resorts Crowne Plaza Hotels and Resorts Holiday Inn Hotels and Resorts Holiday Inn Express Holiday Inn Select Holiday Inn Garden Court Staybridge Suites

Articles/Websites John Portman (Architect of the Hyatt Regency, Atlanta; Hyatt

Regency, San Francisco and Marriott Marquis, Atlanta)http://mywebpages.comcast.net/rlinger/Georgia/portman.html

Hyatt Regency, Kansas City Tragedyhttp://www.glendale-h.schools.nsw.edu.au/faculty_pages/ind_arts_web/bridgeweb/Hyatt_page.htm

Top 50 Hotel Companieshttp://www.ahla.com/products_info_center_top50.asp

Hyatt Regency, Atlantahttp://mywebpages.comcast.net/rlinger/Georgia/Atlanta/Downtown/hyatt.html

Marriott Marquis, Atlantahttp://www.bluffton.edu/~sullivanm/atlanta/portmanmarriott/marriott.html

Articles/Websites List of hotel chains and brands

http://www.hospitalitynet.org/web/Hotel_Chains_&_Brands/page21.html

Building brand equity http://www.hospitalitynet.org/news/4010351.search?query=%22old+logo%22+hyatt

Rebranding begins at the tophttp://www.hotelsmag.com/0302/0302update.html

Starwood Hotelshttp://www.starwood.com/