chapter 1 introduction to hospitality marketing what is marketing? definitions hierarchy of...
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Chapter 1Chapter 1
Introduction to hospitality marketingIntroduction 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 Figure 1.1 The hierarchy of customer valueThe 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 Figure 1.2 Marketing orientationsMarketing orientations
Figure 1.3 Figure 1.3 Macro- and micro-environmental Macro- and micro-environmental influences on hospitality organizationsinfluences 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 Figure 1.4 Typical hotel industry cycleTypical 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 isbased on the eight marketing activities
Figure 1.5 Figure 1.5 The hospitality marketing mixThe 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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