Transcript 01 Marketing & Basic Principle s

Marketing for
Hospitality and
Tourism
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Key Terms
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Marketing
Marketing Concept
Marketing Management
Marketing Manager
Product
Product Concept
Quality
Relationship Marketing
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Key Terms
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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 Overview
1.
Understand the hospitality and
tourism marketing process
2.
Recognize developing hospitality and
tourism marketing strategies
3.
Understand how to develop the
hospitality and tourism marketing mix
4.
Comprehend managing hospitality
and tourism marketing
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Chapter 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 Objectives (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 Industry
• The travel industry is the world’s
largest services industry
• One billion international travelers by
2015
• Over $1.7 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 Marketing?
Marketing is a social and
managerial process by which
individuals and groups obtain what
they need and want through
creating and exchanging products
and value with others
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What is Marketing?
– Beyond sales and advertising
– Beyond the physical aspects of a business
– Marketing encompasses all aspects of an
organization
– Involves the entire buying process from
the initial customer need before purchase
to supporting the product/service after
purchase
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What is Marketing?
Marketing’s Role in Creating Value:
– Marketing brings customers into the
tourism & hospitality organization
– Marketing keeps customers back
– Returning customers provide value to the
organization by giving the organization
revenue, positive word of mouth, and
constructive criticism when things go
wrong
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What is Marketing?
• According to Philip Kotler;
• “Marketing is a social and managerial
process by which individuals and
groups obtain what they need and
want by creating and exchanging
products and value with others”
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Importance of Marketing
• Corporate giants have increased
marketing importance for entire industry
• Predicted hotel consolidation into 5 or 6
chains will create intense competition
• Growing competitive pressures increasing
importance of the Marketing Director
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
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Kotler, Bowen, and Makens
Categories of Marketing
1) Social Marketing
 Organisations providing non-commercial
services, such as educational institutions, 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 needs and the
employment of effective communications
techniques will help them to do so.
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Social Marketing
The concept of 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 & private partnerships,
in which one of the partners will have a profit
motive while the other’s concern will be to
achieve a given target.
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Social Marketing
• For example; a 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
profits within these parameters.
Consumer and Industrial Marketing
• Products are sold to two kinds of buyers,
those who buy for their own consumption,
and those who buy on behalf of others.
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Consumer and Industrial Marketing
The term consumer marketing is used to
describe the practice of marketing to the
former category (own), and industrial marketing
to the latter (others).
Just as manufacturing industries buy raw
materials to convert into finished 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.
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Consumer and Industrial Marketing
• Many large companies whose stuff are engaged
in frequent 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 .
• Hotels, airlines, and other travel companies will
be eager to solicit business from these industrial
buyers.
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Home and Export Marketing
• Export marketing or international
marketing is a specialised field of
marketing which will have to take into
account different legal systems and
business climates, different cultures
affecting buying behavior, and the
problems associated with transporting
products abroad.
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Home and Export Marketing
• Tourism again is substantially concerned
with 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 Concepts
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Needs, Wants, and Demands
• A human need is a state of felt
deprivation (lack)
• Wants are how people communicate
their needs
• When backed by buying power, wants
become demands
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Product
• A product is anything that can be
offered to satisfy a need or a
want
• What are some travel and
tourism “products” that you can
list?
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Value, Satisfaction, and Quality
• Customer value is the difference between
the customer benefits from owning and/or
using a product and the costs of obtaining
the product
• Customer satisfaction is perceived value
delivered relative to a buyer’s expectations
• Quality is the totality of features and
characteristics of a product or service that
bear on its ability to satisfy customer needs
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Exchange, Transactions, and Relationship
Marketing
• Exchange is the act of obtaining a desired
object from someone by offering something
in return
• A transaction is marketing’s unit of
measurement and consists of a trade of
values between two parties
• Relationship marketing is building strong
economic relationships with company’s
profitable customers. Relationships include
customers, distributors and suppliers.
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Markets
A market is a set of actual and
potential buyers who might
transact with a seller
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Marketing Management
Marketing management is the
analysis, planning, implementation,
and control of programs designed to
create, build, and maintain beneficial
exchanges with target buyers for the
purpose of achieving organizational
objectives
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Marketing Manager
A person involved in
marketing analysis, planning,
implementation, and control
activities
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Marketing Management Philosophies
• Manufacturing (production orientation)
• Product (product orientation)
• Selling (sales orientation)
• Marketing (market orientation)
• Societal Marketing (socially responsible
marketing)
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Manufacturing Concept
• Consumers favor available and highly
affordable products
• Management should improve
production and distribution systems
• However, don’t forget the customer!
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Product Concept
• Consumers prefer existing products
and product forms
• Management’s job is to develop
good versions of these products
• Inward focused like the
Manufacturing Concept, so don’t
forget your customers!
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Selling Concept
• Consumers will not buy enough
products unless the company
undertakes large selling and promotion
efforts
• Aim is to maximize sales without
worrying about customer satisfaction
• Fails to establish a long-term
relationship with customers
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Market Concept
• Achieving organizational goals depends
on determining the needs and wants of
target markets and delivering desired
satisfaction better than competitors
• Creates long term customer relationships
• Frequently confused with “Selling
Concept”
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Marketing and Sales Concepts Contrasted
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Societal Marketing Concept
• Organization should determine the
needs, wants, and interests of target
markets and deliver the desired
satisfaction more effectively and
efficiently than competitors in a way
that maintains or improves the
consumer’s and society’s well-being
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The Future of Marketing
• 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
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Marketing Skills for Tourism
Creativity
• Make something out of nothing
• Create the branding, create the positioning,
find the niche develop the words, the visuals,
the images that make a brand the brochure,
the website, the positioning statement
• Keeping fresh and current so that think of new
ways of approaching industry partnerships and
a new sponsorship program
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Marketing Skills for Tourism
Creativity
• Innovative product development
requires 5 Stage process
– Saturation
– Preparation
– Incubation kuluçka
– Illumination aydınlatma
– Verification confim
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Marketing Skills for Tourism
Communication
– Learn 3 languages – mother tongue,
national & international
– Polite speech, Good body language
– Good personality
– Courtesy calls
– Letters
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Marketing Skills for Tourism
Communication
– Fax
– E-mail messages
– Must allow visitor to speak
– If language is barrier then show standard
pictures or symbols
– Neat maintenance of travel documents
– Advertisement in target customer’s
language
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Self Motivation
– Self motivated to work and deliver concrete
results
– Motivation and morale are closely related
– If morale is high, motivation will be high to
give sterling/real performance
– Motivation factors are – backgrounds,
education, family status, economic condition
– Person to person treatment would develop
the organization
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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 synergy
– Team work gives status recognition, reverence to
all
– Single person cannot deliver results on his own
– Groups become teams
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Team building
– Common working approach, performance
goals
– Hard work, discipline, dedication to purpose ,
willingness to adopt new technologies
1. Thank a colleague
2. Compliment a colleague
3. Invite a colleague
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Personality 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 development
• "personality also colors our values,
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 Questions
Choose 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
satisfy a customer’s wants?
B. How does each of these companies create value
for the customer?
C. Do they segment the market by offering pages for
a specific market segment?
D. Select the company you would purchase and state
why?
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End of Chapter
Slides
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