Chapter 1

Introduction: Marketing for Hospitality and Tourism

(Kotler, Bowen, Makens)

WHAT CAN BE FOUND ON http://www.prenhall.com/kotler?

Website

Why is it important and what does it do?

“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

Marketing is a SOCIETAL PROCESS by which individuals and groups obtain what they need and want through CREATING,

OFFERING, and EXCHANGING products and value with others.

Marketing’s task is to provide real value to targeted customers, motivate purchase, and fulfill consumer needs.

The art and science of finding, retaining, and growing profitable customers.

Defining Marketing

IDENTIFY customer needs Develop a good product Price, DISTRIBUTE and promote

effectively Result = attractive products and

SATISFIED customers

Marketers…

Hospitality Marketing

*Hospitality Industry is composed of businesses that offer accommodations and/or prepared food or beverage service and/or ENTERTAINMENT for traveler.

*Highly dependent of TRAVEL industry

According to the World Travel and Tourism Council…It is projected to employ 303,019,000 people by 2020.One of the world’s major industries (largest retail industry)

In U.S. = 3rd (Auto & food stores) 2nd only to health services in employment

2nd largest EMPLOYER in U.S.Largest industry in more than 25 states

Hospitality/Tourism: What it Means to the Economy

Customer Orientation

*The purpose of business is *The purpose of business is to create and maintain to create and maintain SATISFIED SATISFIED , , PROFITABLEPROFITABLE CUSTOMERSCUSTOMERS

*Put the *Put the CUSTOMERCUSTOMER first first and reward the and reward the EMPLOYEEEMPLOYEE for serving customers wellfor serving customers well

*Without customers, assets have little value

* CREATING CUSTOMER VALUE and SATISFACTION are at the heart of hospitality and travel industry marketing.

Customer Orientation

The Marketing Mix

*The Four-P framework calls for marketing to decide:– PRODUCT: the product and its

characteristics– PRICE: set the price– PLACE: decide how to distribute the

product– PROMOTION: choose methods for

promoting the product

Core Marketing Concepts

Needs, Wants, and Demands

A human A human needneed is a state of felt is a state of felt deprivationdeprivationhttp://www.youtube.com/watch?v=Hw16AZUlis8&feature=relatedhttp://www.youtube.com/watch?v=Hw16AZUlis8&feature=related

WantsWants are how people communicate are how people communicate their needs their needs http://www.youtube.com/watch?v=TWjkEZdPglIhttp://www.youtube.com/watch?v=TWjkEZdPglI

When backed by buying power, When backed by buying power, wants become wants become demandsdemands

Product

**A product is anything that A product is anything that can be offered to can be offered to SATISFY SATISFY a a NEED NEED or a or a WANTWANT

*What are some travel and *What are some travel and tourism “products” that you tourism “products” that you can list?can list?

Product

CUSTOMER value is the difference between the benefits that the customer gains from owning and/or using a product and the COSTS of obtaining the product.

Customer satisfaction depends on a product’s PERCEIVED performance in delivering value

relative to a buyer’s expectations.

Quality begins with customer NEEDS and ends with customer SATISFACTION.

Value, Satisfaction, and Quality

Exchange, Transactions, and Relationship Marketing

*Exchange*Exchange is the act of is the act of OBTAINING OBTAINING a desired a desired object from someone byobject from someone by OFFERING OFFERING something in returnsomething in return

*A *A transaction transaction is marketing’s unit of is marketing’s unit of MEASUREMENT MEASUREMENT and consists of a trade of values and consists of a trade of values between two partiesbetween two parties

*Relationship marketing*Relationship marketing is building strong is building strong ECONOMIC ECONOMIC relationships between social relationships between social TIES TIES by by following through on following through on PROMISESPROMISES

Markets** A market is a A market is a set ofset of ACTUAL ACTUAL andand POTENTIAL POTENTIAL buyers of a buyers of a productproduct

Product Concept

Selling Concept

Marketing Concept

Societal Marketing Concept

•Inward focus. Products oriented.•Consumers favor products that offer the most quality, performance, and innovative features.

•To get every possible sale, maximize sales•Consumers will not buy enough unless large selling/promotion take place. •No long-term relationship with customers.

•Focuses on needs/ wants of target markets & delivering satisfaction better than competitors.

•Focuses on needs/ wants of target markets & delivering superior value than competitors; maintains or improves the consumer’s and society’s well-being

Marketing Management Philosophies

Pg. 17-20

Marketing and Sales Concepts Contrasted

Factory ExistingProducts

Sellingand

Promoting

ProfitsthroughVolume

The Selling Concept

StartingPoint Focus Means Ends

Market CustomerNeeds

IntegratedMarketing

Profitsthrough

Satisfaction

The Marketing Concept

Rapid changes make yesterday’s techniques out-of-date

All company departments are becoming involved in satisfying customers

A focus on internal as well as external marketing, so marketing has become the job of everyone

One-shot transaction vs. Long-term relationships

Marketing’s Future