chapter 1
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Chapter 1. Introduction to hospitality marketing. Lecture plan. What is marketing? Definitions Hierarchy of customer value Marketing concept Management orientations Environmental influences macro micro Special characteristics of services marketing Hospitality marketing mix. - PowerPoint PPT PresentationTRANSCRIPT
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Chapter 1
Introduction to hospitality marketing
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Lecture plan What is marketing? Definitions Hierarchy of customer value Marketing concept Management orientations Environmental influences
macro micro
Special characteristics of services marketing Hospitality marketing mix
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Definitions of marketing
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
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Figure 1.1 The hierarchy of customer value
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The marketing conceptMarketing is:
a business philosophy with the customer at the centre 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
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Management orientations
Product or service orientation Operations or production orientation Selling orientation Marketing orientation Societal marketing orientation
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Figure 1.2 Marketing orientations
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Figure 1.3 Macro- and micro-environmental influences on hospitality organizations
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Macro-environmental influences
The macro-environment
Political Economic Socio-cultural Technological Environmental
Interaction of PESTE factors
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Impact of macro-environment
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
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Business cycle 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
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Figure 1.4 Typical hotel industry cycle
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Micro-environment
Internal company factors customers employees suppliers intermediaries
External factors direct competitors various publics
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Micro-environment
Hospitality companies have more influence over the micro-environment than over the macro-environment
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Special characteristics of services marketing
Seasonality Intangibility Perishability Inseparability Variability Interdependence Supply Exceeding demand High fixed costs
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Hospitality marketing mix
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:
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Figure 1.5 The hospitality marketing mix
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Jobs in hospitality marketingPeople 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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References and further reading Albrecht, K. (1992). The Only Thing That Matters. Harper Business Books. American Marketing Association. (October 2007). http://www.marketingpower.
com/aboutama/pages/definitionofmarketing.aspx. Brown, S. (2001). Marketing: The Retro Revolution. Sage. Carlzon, J. (1987). Moments of Truth. Ballinger Publishing. Chartered Institute of Marketing. (2007). Shape the Agenda: Tomorrow’s Word,
Re-evaluating the Role of Marketing, October 2007. Grönroos, C. (1994). ‘From marketing mix to relationship marketing: towards a
paradigm shift in marketing’. Management Decision, 32, pp. 4–20. http://www.fairmount.com. Kotler, P. (1999). Kotler on Marketing. Simon and Schuster. Kotler, P. (2003). Marketing Management. Prentice Hall. Kotler, P. and Armstrong, G. (2010). Principles of Marketing. Pearson Education. Kotler, P., Bowen, J. and Makens, J. (2009). Marketing for Hospitality and
Tourism (5th ed.). Prentice Hall. Levitt, T. (1960). ‘Marketing myopia’. Harvard Business Review, 38, pp. 45–56. Pine, J. and Gilmore, J. H. (1999). The Experience Economy. Harvard Business
School Press.