Transcript Chapter 1: Marketing Defined

Learning Objectives
Chapter 1: Marketing Defined
1. Define marketing and explain the six
marketing fundamentals used in this book.
2. Explain the price of marketing concept.
3. Compare and contrast the roles of
marketing during four evolutionary eras and
describe the digital marketing era.
4. Describe the symptoms of production and
sales orientation.
5. Explain the marketing myopia concept.
Learning Objectives
Chapter 1: Marketing Defined
6. Describe the characteristics of a marketing
orientation and its benefits.
7. Explain the core principles of marketing.
8. Describe the environment for marketing in
the hospitality and travel industry.
9. Explain the reasons for the increasing
importance of marketing in the industry.
Definition of Marketing
Marketing is a continuous,
sequential process through which
management in the hospitality and
travel industry plans, researches,
implements, controls, and evaluates
activities designed to satisfy both
customers’ needs and wants and
their own organization’s objectives.
Six Marketing Fundamentals
1. Satisfying customer needs and wants.
2. Continuous nature of marketing.
3. Sequential steps in marketing.
4. Key role of marketing research.
5. Interdependence of hospitality and travel
organizations.
6. Organization-wide and multi-department
effort.
The PRICE of Marketing
P
R
I
C
E
 Planning
 Research
 Implementation
 Control
 Evaluation
The Evolution of Marketing
in Non-Service Industries
1920-1930 PRODUCTION ORIENTATION
1930-1950
SALES ORIENTATION
1950-1960
MARKETING DEPARTMENT
1960-1970
MARKETING COMPANY
1970-now
SOCIETAL MARKETING
Four Evolutionary Eras of Marketing
Marketing
Orientation
The Digital Marketing Era
 Began in the 1990s
 Internet and World Wide Web
 E-commerce
 Ticketless travel/e-tickets
 Databases and database marketing
 Personal digital assistants (PDAs)
 CDs and DVDs
Symptoms of Production and Sales
Orientations
1. Planning is short-term.
2. Long-term decisions are made only when
serious problems are encountered.
3. There is a definite reluctance to change.
4. Business growth is seen as being assured
and current business volumes are viewed as
guaranteed.
5. Providing the best or highest quality service
is assumed to be an automatic guarantee of
success (The Better Mousetrap Fallacy).
Symptoms of Production and Sales
Orientations (Continued)
6. Little is known about customers; research is
not given a high priority.
7. Promotions stress service or product
features, not customer's needs.
8. Customers are given only what they ask for
and what is normally provided.
9. Decisions are made from a production or
sales perspective, not with the customers'
needs in mind.
Symptoms of Production and Sales
Orientations (Continued)
10. Organization or department is seen as an
island unto itself.
11. Departments have overlapping
activities/responsibilities related to
marketing.
12. Department managers tend to be very
defensive and protective of their domains.
13. Organization is set up and services offered
because owners themselves like them (The
Share-the-Wealth Syndrome).
Marketing Myopia
A term coined in 1960 by Theodore
Levitt to describe many of the 13
symptoms of production and sales
orientations.
Myopia: shortsightedness or lack of
discernment in thinking or planning.
Characteristics of Marketing
Orientation
1. Customer needs are first priority and
understanding these needs is a constant
concern.
2. Marketing research is an on-going activity
assigned a very high priority.
3. Customers' perceptions of the
organization are known.
4. Frequent reviews are made of strengths
and weaknesses relative to competitors.
5. The value of long-term planning is fully
appreciated.
Characteristics of Marketing
Orientation
6. The scope of business activities is broadly
set and change is seen as inevitable.
7. Interdepartmental cooperation is valued and
encouraged.
8. Cooperation with complementary
organizations is seen as being worthwhile.
9. Measurement and evaluation of marketing
activities are done frequently.
Benefits of a Marketing Orientation
1. Produces more satisfied customers.
2. All departments, managers, and staff share
a common goal.
3. Knowing customers and their needs
increases the ability to satisfy these needs.
4. Changes in customer needs and
characteristics are identified.
5. Viability of new products and services are
determined.
6. Strengths are accentuated and weaknesses
addressed.
Benefits of a Marketing Orientation
(Continued)
7. Changes in customer needs are anticipated
and acted upon; marketing opportunities
are realized.
8. Services, products, and promotions are
designed to match customers' image.
9. Increased cooperation leads to better
services and greater customer
satisfaction.
10.Increased cooperation with
complementary organizations again
generates greater customer satisfaction.
Benefits of a Marketing Orientation
(Continued)
11. Adaptations to change are made
smoothly and are not resisted.
12. Opportunities that serve customers
more comprehensively, or those that tap
into related fields, and capitalized upon.
13. Effective marketing programs are
repeated or enhanced; ineffective ones
are dropped.
14. Marketing expenditures and human
resources are used effectively.
Core Principles of Marketing
1. The marketing concept
2. Marketing or customer orientation
3. Satisfying customers' needs and wants
4. Market segmentation
5. Value and the exchange process
6. Product life cycle
7. The marketing mix
The Hospitality and Travel Marketing
Environment
Consists of two parts:
1. Marketing Strategy Factors
(controllable)
2. Marketing Environment Factors
(uncontrollable)
The Hospitality and Travel Marketing Environment
Marketing Strategy Factors
The Marketing Mix/8 Ps
Traditional 4 Ps
of Marketing
 Product
 Place
 Promotion
 Price
Additional 4 Ps of
Hospitality and
Travel Marketing
 People
 Packaging
 Programming
 Partnership
The Hospitality and Travel Marketing
Environment
Marketing Environment Factors
1.
2.
3.
4.
5.
6.
Competition
Legislation and regulation
Economic environment
Technology
Societal and cultural environment
Organizational objectives and resources
Reasons for Increased Importance of
Marketing in the Industry
1. Greater competition.
2. Increased market fragmentation and
complexity.
3. More experienced and sophisticated
customers.
4. Acquisition of hospitality and travel
companies by firms in other industries.