Chapter 1 Introduction to hospitality marketing

 What is Marketing?  Definitions  Hierarchy of customer value  Marketing Concept  Management Orientations  Environmental Influences  Macro  Micro  Special Characteristics of Services Marketing  Hospitality Marketing Mix

Many different definitions of marketing  business philosophy to create and retain satisfied customers  exchange process – short term transactional marketing  relationship marketing - development of mutually beneficial long-term relationships between suppliers and customers  creating memorable experiences

Figure 1.1 The hierarchy of customer value

Marketing is:  a business philosophy with the customer at the center of a hospitality organization’s purpose  an exchange activity between hospitality organizations and their customers  a management process that focuses on planning for the future success of the organization  a set of marketing tools, which marketers use to understand customers’ needs and wants and to develop products, and services to satisfy or delight customers The central purpose of marketing is to manage demand

 Product or service orientation  Operations or production orientation  Selling orientation  Marketing orientation  Societal marketing orientation

Figure 1.2 Marketing orientations

Figure 1.3 Macro- and micro-environmental influences on hospitality organizations

 The macro-environment  Political  Economic  Socio-cultural  Technological  Environmental  Interaction of PESTE factors

 Hospitality companies have limited control over PESTE influences; but major changes in even one PESTE factor can significantly impact on the business, either for better or worse  PESTE factors are constantly changing

 Growth: Occupancy and room rates increase in response to growing demand  Peak: Occupancy and room rates remain strong, funds still available for investment; growth tends to slow  Decline: Occupancy begins to decrease  Trough: There is a large imbalance of supply and demand during a recession; hospitality businesses fail  Resurgence: There is a gradual resurgence, and the cycle starts all over again

Figure 1.4 Typical hotel industry cycle

 internal company factors  customers  employees  Suppliers  Intermediaries  external factors  direct competitors  various publics

Hospitality companies have more influence over the micro- environment than over the macro- environment

 seasonality  intangibility  Perishability  Inseparability  Variability  Interdependence  supply  exceeding demand  high fixed costs

 The term marketing mix is used to describe the tools that the marketer uses to influence demand  The marketing mix is a core concept in marketing  The hospitality marketing mix adopted in this text is based on the eight marketing activities

Figure 1.5 The hospitality marketing mix

 People who work in marketing work in:  online and offline advertising, sales promotion and publicity  sales, sales promotion, print and publicity, direct mail, advertising,  public relations and customer relations  marketing research  online sales and marketing roles such as guest user interface (GUI) management, web product development, website sales, search engine optimization  database management, daily web operations and content management

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