Unit – 1

By:-DANVEER KR. VEERB.I.T Mesra

“Service is delivering on your promise. Hospitality is making people feel good while you’re delivering on that promise.”

Basic of Marketing Hospitality means:• The friendly and generous reception and entertainment of guests,

visitors, or strangers.

• It has the relationship between the guest and the host.

Marketing means:Meeting the needs of your customer at a profit.

Marketing is meeting the needs and wants of a consumer.

Marketing is building your brand, convincing people that your brand (meaning your product/service/company) is the best and protecting the relationships you build with your customers.

Characteristics of Hospitality & Services

Intangibility Inseparability

Variability Perishability

Characteristics of Hospitality and Services Intangibility: Services cannot be stored. Services cannot be patented legally, hence they can be easily copied by competitors. Services cannot be readily displayed. Design of total services package is not possible.

Inseparability: Service must be provided at the right time, in the right place, and in the right way. Involves the presence of the customer, customer’s role as co-producer, customer to

employee and customer to customer interaction.

Variability: Quality and essence of service vary from producer to producer, customer to

customer Difficult to achieve standardization. No two customers are alike in their demands.

Characteristics of Hospitality and Services Perishability: Services cannot be saved. Services cannot be stored. Short lived value of services An unutilized service capacity can not be utilized further.

Applicability of unique characteristics of services to different types of services:Physical action to a person

Physical action to the object of a customer

Non-physical action at the mind

Non-physical action directed at data

Hair Cut Beauty treatment Medical surgeries Restaurant food

service

Repair and maintenance of equipment

Interior designing Transportation of

goods

Advertising Theatre Lectures/talks

Information Processing

Consulting

Basic of Marketing According to Dr. Philip Kotlar:

It is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. 

Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential.

It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.

Differentiation between Goods and Services

• A product is the core output of a firm.

• It can either be a service or a manufactured goods produced by the firm.

• Goods are described as physical objects or devices that provide benefits to the customer through ownership or use.

• Services are actions, deeds, or performances.

Differentiation between Goods and Services

Ownership Performance Customer Involvement People as part of the product Variability Evaluation Inventory Distribution channel

Pure Goods Core Goods Core Services Pure Services

Food productsChemicals Book Publishing 

AppliancesData Storage systemsAutomobiles

HotelsAirlinesInternet service providers

TeachingMedical adviceFinancial Consulting

In other words………….

1. Goods are tangible, and transferable while the services are intangible and non transferable.

2. Goods are separable, and non ‘“ perishable while services are inseparable.

3. Goods are homogeneous while services are heterogeneous.

Basic of Marketing So the best definition of marketing could be: -

Marketing is a continuous, sequential process of planning, researching, implementing, controlling, and evaluating activities designed to satisfy both customers’ needs and wants and organizations’ objectives.

To be most effective, marketing requires the efforts of everyone in an organization and can be made more or less effective by the actions of complementary organizations.

What is market ?

A platform that allows “buyers” and “sellers” of a specific good or service to interact in order to facilitate an exchange. 

Basic of Marketing • Needs -Human needs are the basic requirements and include food clothing and

shelter. Without these humans cannot survive. An extended part of needs today has become education and healthcare. Generally, the products which fall under the needs category of products do not require a push. Instead the customer buys it themselves

• Wants – Wants are a step ahead of needs and are largely dependent on the needs of humans themselves. For example, you need to take a bath. But i am sure you take baths with the best soaps. Thus Wants are not mandatory part of life. You DONT need a good smelling soap. But you will definitely use it because it is your want.

• Demands – You might want a BMW or a Mercedes for a car. You might want to go for a cruise. But can you actually buy a BMW or go on a cruise? You can provided you have the ability to buy a BMW or go on a cruise. Thus a step ahead of wants is demands. When an individual wants something which is premium, but he also has the ability to buy it, then these wants are converted to demands. The basic difference between wants and demands is desire. A customer may desire something but he may not be able to fulfill his desire. -

Maslow’s Need HierarchySelf Actualization

Status Self- Esteem

Belonging

Physical

Security Emotional

Physiological Needs

Basic of Marketing Evolution of Marketing:

Among manufacturing and packaged-goods companies, marketing has developed during four distinct eras:-

1. Production-Orientation Era

2. Sales-Orientation Era

3. Marketing-Orientation (Consumer-Orientation) Era

4. Societal-Marketing-Orientation Era

Basic of Marketing Evolution of Marketing:

Approx. Dates Marketing Eras

1920-30 Production Orientation

1930-50 Sales Orientation

1950-60 Marketing Department

Marketing Orientation

1960-70 Marketing Company

1970 – Present Societal-Marketing-Orientation

1. Production-Orientation Era:-

* It is one of the oldest concepts in business. According to this concept consumers will prefer products that are widely available and inexpensive.

* Managers of production oriented business usually concentrate on achieving high production efficiency, low cost and mass distribution.

For example: The local mobile companies in developing countries are providing cell phones at much cheaper cost than the branded companies and due to that people in developing countries are preferring to buy cell phones from local companies.

As per Henry Ford “They (customers) can have any color they want as long as its black”.

* Consumers and businesses if left alone will usually not buy enough of organisations product. * The organisation must therefore incorporate an aggressive selling and promotion effort.* Effective selling and promotion tools in order to stimulate more buying. * The purpose of marketing is to sell more stuff to more people, more often for more money in order to make more profit.

For example: Excursions, Spa or Ayurvedic treatment at five star hotels are the product needs effective selling.

2. Sales-Orientation Era:

3. Marketing-Orientation (Consumer-Orientation) Era:* Marketing concept emerged in 1950's and has challenged the production and Sale orientation concept.

* In this concept marketing and gardening rather than hunting. Its job is to find right products for your customer instead of finding right customers for your products.

* The marketing concepts are based on four pillars target market, customer needs, integrated marketing and profitability.

* It starts with a well defined market, focuses on customer needs, co-ordinates all the activities that will affect customers and produces profits by satisfying customers.

* So basically focuses on achieving its organisational goal by making company more effective than competitors in creating, delivering and communicating superior customer value to its chosen target markets.

4. Societal-Marketing-Orientation Era:

This basically focuses on social and ethical considerations into their marketing practices. According to this concept the organisations task is to determine the needs, wants and interests of target market and to deliver the desired customer satisfaction more effectively and efficiently than competitor's in a way that preserves or enhances the consumers and the societies well being.

Ps of Marketing Mix

1. Product

2. Price

3. Promotion

4. Place

The Hospitality Industry has its own dynamics and has produced three additional Ps:

5. People

6. Processes

7. Physical Evidence

Product * Room Booking* Butler service* Wi-Fi Internet

* Spa & Swimming Pool* Meeting rooms / Conference rooms

* Restaurants & Bar* Meeting and Events

People* Receptionists

* Bell boys* Laundry Serviceman

* Butlers* Manager

* Room service* Cleaners

* Chefs* Waiters ….. Etc.

Price* The Prices are being charged

according to facilities

* The charges vary from hotel to hotel

* Pricing is the only mix which generates a turnover for the

organization

Promotion* Promotion through FMCG goods

* Internet* Media Reports and Media releases

* Concept promotion* Customers

*Travel Agents* Hotel directories

Place* Strategic locations

* Metropolitan Cities

* Business hubs

* Tourist Places

* Heritage areas

Processes* Service process is the way in which a service is delivered to the end customer.

- Guest Booking- Check in

- Stay in hotel- Consuming services

- Payment- Check out

Physical Evidence

* Hotel Lobby* Phone

* Nice music* Restaurant

* Before & after sale service

Customer expectation from Hospitality services

Service quality is largely determined by customer's perception, which is why meeting customer expectations is an essential part of

the process.

So the process could be …..

Identifying Customer Expectations....How…

……..customers complete surveys about your products and service

Common Expectations to consider...

And what are those…• Fast, efficient and accurate service

• High quality products at a competitive price• Friendly, helpful service staff to provide information

and answer questions• Prompt responses to their inquiries, whether online, by

phone or in person• Sufficient stock to meet their needs without long waits• A trained staff that can handle their questions without

referring them on• A clean facility or easy to navigate website

* What degree of importance do customers attach to different attributes of hotel service?

* Do customers in different hotel categories have different expectations in relation to the attributes

of the service?

* Does the service offered by hotels surpass the expectations of customers?

* Are there significant differences in the level of service offered by different hotels concerning the

different attributes?

Reception and check in Pool (cleanliness, safety, agreeability)

Hotel Appearance – external Offer of internet Wi-Fi

Location Offer of business center

Safety of the surroundings Offer of service bar

Safety in all of the installations Offer of service of restaurants

Availability of promotional material Menu variety

Staff Appearance Breakfast

Staff Service Ease of problem solving

Pleasant Rooms Ease of access to higher management

Air conditioning (temp, noise, control,,,, ) Execution of service in the allotted time

Cleanliness of the rooms Social responsibility (sexual tourism and minors)

Sheets, towels, Pillow cases Reduction, reuse and recycling of resources

Pleasant bathrooms Access infrastructure for physically challenged

Cleanliness and hygiene of the bathrooms Front desk service

Pleasant common rooms Closing the bill and check-out

Cleanliness of common areas Daily rate per room

Maintenance of green areas Price of services and products

It is important that the Hotels & Resort and or other service companies have an

evaluation by their guests and evaluate the services of their competitors, looking for

best practices, adjusting conduct and repositioning themselves in the market.

Customer Expectations + Service Performance = Customer

Satisfaction

Benefits of Meeting Expectations

• Customers that transform from first-time visitors to loyal clients

• Increased sales as customers feel more comfortable doing business with you

• More referrals from satisfied customers who bring in additional business by word

of mouth.

* Happy customers are loyal customers.

* Repeat customers are vital for hotels.

* Keep customers loyal by focusing on them at all

* Take out of your mind and your vocabulary the sign of the “difficult and strange customer”. See all your customers as positive, investigate their

expectations and positively manage their aspirations to satisfy them

“If you aren’t taking care of your

customers, your competition will.”

Ten Commandments of Good Business1. GUESTS are the most important people in any business.2. GUESTS are not dependent upon us – we are dependent on them.3. GUESTS are not an interruption of our work – they are the purpose of it.4. GUESTS do us a favor when they call – we are not doing them a favor byserving them.5. GUESTS are part of our business, not outsiders.

Ten Commandments of Good Business6. GUESTS are not cold statistics; they are flesh and blood human beings withfeelings and emotions like our own.7. GUESTS are not someone to argue or match wits with.8. GUESTS are those who bring us their wants – it is our job to fill those wants.9. GUESTS are deserving of the most courteous and attentive treatment we cangive them.10. GUESTS are the life blood of the farm and ranch recreation business.