Chapter 9 Marketing organisation 05 069.1 Forms of Marketing organization9.2 Set-up and organisation of sales and marketing department9.2.1 (Individual property, regional/ national chain/ multinational chain)9.3 Duties of a Marketing ManagerChapter 10 Customer satisfaction & Quality 05 0810.1 Customer Value and satisfaction10.2 Five gap model of service quality10.3 Benefits of service quality10.4 Retaining customers, handling customer complaints10.5 Relationship marketing10.6 Monitoring and measuring customer satisfactionTotal 48 70

Meaning of OrganisationAn organisation is a group of people that is structured and managed to achieve a common goal. Every organisation have a defined structure that determines relationship between its members, and assigns their roles, responsibilities, and authority.

Meaning of Marketing OrganisationMarketing organisation is a group of marketing persons brought together to make decisions on marketing areas like product, price, place, and promotion. Marketing organisation is the foundation of effective sales planning for systematic execution of plans and policies. Marketing organisation provides a system of relationships among various marketing functions to be performed by proper coordination among marketing persons.

Definition of Marketing Organisation"Marketing organisation can be defined as a formal or informal group of individuals working together to reach quantitative and qualitative marketing objectives by making decisions on product, price, place, and promotion."

Types of Marketing OrganisationsMarketers must have knowledge of what type of marketing organisation they have in place; and what type of marketing organisation the company actually needs. Following are the different types of marketing organisation that commonly exists today :- Functional Type of Marketing Organisation; Product Oriented Marketing Organisation; Market/Territory Oriented Marketing Organisation; Customer Oriented Marketing Organisation;In functional type of marketing organisation the different marketing activities are grouped on the basis of functions to be performed like - product planning, market research, advertising, sales, or promotion. Each main function is further divided to sub-functions to be performed to achieve marketing objectives. Each sub function is managed by separate manager under the control of marketing manager.

Product oriented marketing organisationis common where organisation is producing or marketing wide variety of products. For each product or group of products a separate product manager is assigned and made responsible for marketing decisions for that particular product or group of products.

Market oriented marketing organisation is common in big organisations serving large number of customers spreading over large territories. Depot manager, district manager, area manager, zonal manager, divisional manager, etc., are assigned to manage each territories.

Customer oriented marketing organisation is common in organisations engaged in providing specialised services to different class of customer.

Organization Chart Hotel Sales and Marketing departmentHotel sales and marketing department vary with type of hotel organization, size and budget. But all hotels whether it is large or small should have a sales and marketing department to take care of the sales and marketing strategies of the hotel.At smaller hotels a sales executive handles businesses from all market segments, He or she may deal with Travel agents, Tour operators, Event planners, Corporate guests, online travel agents and travel consortia.Larges hotels have specialized sales mangers and executives to handle different market segments. For example one sales manager and sales executive is only assigned to handle Corporate clients, another to handle travel and trade etc.Sales and Marketing Department ( Small Hotels )

Sales and Marketing Department ( Large Hotels )

Roles & Responsibilities of a Marketing Manager in the Hotel Industry1. A marketing manager in the hotel industry is responsible for maximizing a hotel's revenues by developing programs to increase occupancy and make profitable use of its accommodation, meeting and leisure facilities. 2. A hotel marketing manager must maintain awareness of the factors that influence the hotel industry and gain a deep understanding of the needs and attitudes of a hotels customers. 3. A hotel marketing manager will be responsible for coordinating marketing and promotional activities to meet customer needs, working closely with other hotel staff to ensure customers are satisfied with the facilities and their time there.4. A marketing manager should ensure that it is easy for customers to find out about your hotel. 5. The website should include up-to-date guest information on hotel facilities and rates, travel and location with detailed information on meeting facilities for event organizers. 6. Post hotel details on destination websites and online booking sites to increase reach to your target audience. 7. Collaborating with other meeting venues to offer their delegates accommodations or meeting space can give you access to other potential customers.8. Developing promotions is an essential part of hotel marketing. Running special events such as gourmet weekends, or offering incentives such as one nights extra accommodation when booking for a period, can help to attract more guests. 9. If your hotel has conference rooms, he needs to fill them when events are not taking place. Consider offering meeting rooms to local businesses for short-term use.10. To build a stable revenue base and ensure high levels of repeat business, he needs to develop strong customer relationships.11. A customer loyalty program that rewards customers who book regularly will benefit your hotel and your customers. 12. Target the program at individual guests or at corporate customers who require regular meeting facilities or accommodation for large numbers of traveling staff or visiting customers.13. As marketing manager he will work closely with other members of the hotel management team to identify marketing priorities. 14. Review future booking levels to plan dates for promotions to increase occupancy rates. Work with the event management team to schedule marketing to attract additional conferences and events. 15. Share the results of customer satisfaction surveys and customer reviews with the customer service team to enhance standards of customer care.Customer Value and satisfaction

Value, satisfaction and quality are interrelated concept. Because customers focus to value, quality and satisfaction while purchasing the things form the market. To be familiar about these concepts very well below is their details:

i) Value: It is the ratio between what the customer gets and what he gives. The customer gets benefits and gives costs. Product choice is guided by the value provided by the product.Marketing should provide value to the customers by raising benefits and reducing costs.

b) Satisfaction: It is the customers perceived performance from a product in relation to the expectations.The customer is dissatisfied if the performance matches the expectations; delighted if the performance exceeds expectations. Marketing aims for total customer satisfaction by matching product performance with expectations.

c) Quality: Quality is perception of product excellence by customers. It is linked to customer need satisfaction. Organizations adopt the concept of Total Quality Management (TQM). They continuously improve the quality of their products for customer satisfaction. Everyone is committed and involved to satisfy customer needs though quality improvement.

Five gap model of service qualitySERVQUAL(Service Quality Model), is a quality management framework. SERVQUAL was developed in the mid-1980s by Zeithaml, Parasuraman & Berry to measure quality in the service sector.Gap 1: between consumer expectation and management perceptionThis gap arises when the management does not correctly perceive what the customers want. For instance, hospital administrators may think patients want better food, but patients may be more concerned with the responsiveness of the nurse. Key factors leading to this gap are: Insufficient marketing research Poorly interpreted information about the audience's expectations Research not focused on demand quality Too many layers between the front line personnel and the top level managementGap 2: between management perception and service quality specificationAlthough the management might correctly perceive what the customer wants, they may not set an appropriate performance standard. An example would be when hospital administrators instruct nurses to respond to a request fast, but may not specify how fast. Gap 2 may occur due to the following reasons: Insufficient planning procedures Lack of management commitment Unclear or ambiguous service design Unsystematic new service development processGap 3: between service quality specification and service deliveryThis gap may arise through service personnel being poorly trained, incapable or unwilling to meet the set service standard. The possible major reasons for this gap are: Deficiencies in human resource policies such as ineffective recruitment, role ambiguity, role conflict, improper evaluation and compensation system Ineffective internal marketing Failure to match demand and supply Lack of proper customer education and trainingGap 4: between service delivery and external communicationConsumer expectations are highly influenced by statements made by company representatives and advertisements. The gap arises when these assumed expectations are not fulfilled at the time of delivery of the service. For example, the hospital printed on the brochure may have clean and furnished rooms, but in reality it may be poorly maintained, in which case the patients' expectations are not met. The discrepancy between actual service and the promised one may occur due to the following reasons: Over-promising in external communication campaign Failure to manage customer expectations Failure to perform according to specificationsGap 5: between expected service and experienced serviceThis gap arises when the consumer misinterprets the service quality. For example, a physician may keep visiting the patient to show and ensure care, but the patient may interpret this as an indication that something is really wrong.

Benefits of service quality

Great service makes your customers feel that you care about developing a long-term relationship that means more than just making a sale. Focusing on delivering customer service will benefit your business in a number or ways.Business ReputationCustomers often talk about their experience when dealing with businesses, especially if its unusually good or poor. By delivering strong customer service are making uses of the effective marketing tool known as word-of-mouth advertising.Business PromotionThe best way to promote your business products and services is word of mouth marketing. When customers receive satisfactory and quality services from an organization, they tend to discuss it in their social network, which leads to direct publicity and increased popularity of an organization.Satisfied ShareholdersSatisfactory response from consumers means increased sales, which ultimately leads to increased satisfaction of shareholders. They tend to invest more in your organization, which can dramatically improve the ROI of your business.Increased Business GrowthQuality service can boost your business growth. Quality services can help you expand your client base but great customer service is the key to retain your clients and stand out of the crowd.Successful Business StrategiesEncouraging consumers for feedback and comments is an integral part of quality customer service. Following consumers feedback for analyzing the strengths and weaknesses is probably the best way to understand the expectations of consumers and adopt successful business strategies.Critical Learning ExperienceCustomer service can provide business owners a critical learning experience to understand the dynamics of the corporate world and keep up with the latest business trends.Reduced Risk of Business FailuresUnderstating the expectations and mindset of consumers can considerably reduce the risk of business failures and losses. Consumer SatisfactionIf your customers are happy, your investors and business partners will be happy as well, and this ultimately leads to higher profits. With a strong client base you can win the trust of investors and make the most of every viable business opportunity.Reduced Employee TurnoverWith increased sales and higher profits, you can offer employees good salary packages and additional bonuses, thus reducing employee turnover.Employee MotivationClient satisfaction directly influences the working environment of business organizations. With decreased pressure of meeting targets and financial stability, employees can work in a comfortable corporate atmosphere, thus encouraging them to work to their maximum capacity.Increased EfficiencyThe above mentioned benefits lead to overall increased productivity of the organization.Now that you are familiar with the ways through which quality customer service can benefit your business, implement creative and innovative strategies to value your customers.Retaining customers, handling customer complaints

Six Steps to Dealing with Customer ComplaintsAt some point, everyone in business has to deal with an upset customer. The challenge is to handle the situation in a way that leaves the customer thinking you operate a great company. Listen carefully to what the customer has to say, and let them finish. Don't get defensive. The customer is not attacking you personally; he or she has a problem and is upset. Repeat back what you are hearing to show that you have listened. Ask questions in a caring and concerned manner. The more information you can get from the customer, the better you will understand his or her perspective. Ive learned its easier to ask questions than to jump to conclusions. Put yourself in their shoes. As a business owner, your goal is to solve the problem, not argue. The customer needs to feel like youre on his or her side and that you empathize with the situation. Apologize without blaming.When a customer senses that you are sincerely sorry, it usually diffuses the situation. Don't blame another person or department. Just say, "I'm sorry about that. Ask the customer, "What would be an acceptable solution to you?"Whether or not the customer knows what a good solution would be, Ive found its best to propose one or more solutions to alleviate his or her pain. Become a partner with the customer in solving the problem. Solve the problem, or find someone who can solve it quickly!Research indicates that customers prefer the person they are speaking with to instantly solve their problem. When complaints are moved up the chain of command, they become more expensive to handle and only add to the customer's frustration.There is no getting around customer complaints, regardless of your industry. However, by employing these steps and taking the time to review the issue with the customer, you can turn challenges into something constructive.

Relationship marketingRelationship marketing is a customer relationship management strategy designed to encourage strong, lasting customer connections to a brand. The goal is to generate repeat sales, encourage word-of-mouth promotion and gather customer information.

Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales. The goal of relationship marketing (or customer relationship marketing) is to create strong, even emotional, customer connections to a brand that can lead to ongoing business, free word-of-mouth promotion and information from customers that can generate leads.Relationship marketing stands in contrast to the more traditional transactional marketing approach, which focuses on increasing the number of individual sales. In the transactional model, the return on customer acquisition cost may be insufficient. A customer may be convinced to select that brand one time, but without a strong relationship marketing strategy, the customer may not come back to that brand in the future. While organizations combine elements of both relationship and transactional marketing, customer relationship marketing is starting to play a more important role for many companies.

Monitoring and measuring customer satisfaction