hospitality product marketing

8/3/2019 Hospitality Product Marketing

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Purpose Experiential marketing is arguably marketing's most contemporary orientation, but aswith many marketing innovations it has been largely overlooked by those involved in tourism andhospitality marketing and promotion. Whilst in many industries companies have moved away fromtraditional features and benefits approaches, to putting experiential marketing centre-stage,marketing in the tourism and hospitality sectors does not appear to have explicitly engaged thetheoretical issues involved. This raises the question what, if anything, does experiential marketinghave to offer marketers in the disciplines of tourism and hospitality? In this paper, I will seek tointroduce the experiential marketing debate and demonstrate how the questions raised by theconcept are critical to an understanding of marketing theory and research within the tourism andhospitality sectors.

Design/methodology/approach Following the authors previous publications which sought toinvestigate alternative paradigms for studying hospitality consumers, this research attempts toconsider the practical applications of one such model.

Findings The tourism and hospitality sectors cannot be seen to be immune to fundamentalchanges in the orientation of marketing. Innovative experience design will become an increasinglyimportant component of tourism and hospitality firms core capabilities. Those who go beyondservice excellence, and market experientially will lead the creation of value in the sector.

Originality/value Provides a framework as to how organisations might usefully implement anexperiential marketing strategy.

Marketing for Hospitality & Tourism

Main topics of study:

Introduction: Marketing for Hospitality & Tourism:

Customer Orientation

What is Hospitality & Tourism Marketing?

Marketing in the Hospitality Industry

Undesirable Customers

Marketing Management


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Marketing Management Philosophies

Marketings Future

The Internet Changes How We Market Hospitality Products

Great Leaders

Service Characteristics of Hospitality & Tourism Marketing:

The Service Culture

Characteristics of Service Marketing

Management Strategies for Service Businesses

Ritz-Carlton: Taking Care of Those Who Take Care of Customers

Overview of Service Characteristics: The Servuction Model

The Role of Marketing in Strategic Planning:

Nature of High-performance Businesses

Corporate Strategic Planning

A Strategic Look at Starbucks Coffee

Business Strategy Planning

Unique Challenges of the Hotel Industry

The Marketing Environment:

The Companys Micro-environment

The Companys Macro-environment

Managing in Uncertain Times

Popcorns Cultural Trends

Linked Environmental Factors

Responding to the Marketing Environment

Marketing Information Systems & Marketing Research:

The Marketing Information System

A Questionable Questionnaire

Research Problem Areas

The Internet: A Great Source of Marketing Information

Marketing Research in Small Business

Marketing Research in Smaller Organisations

Consumer Markets & Consumer Buying Behaviour:


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A Model of Consumer Behaviour

Personal Characteristics Affecting Consumer Behaviour

Senior Consumers

The San Diego Padres Baseball Club

The Buyer Decision Process

Unique Aspects of Hospitality & Travel Consumers

Organisational Behaviour of Group Market:

The Organisational Buying Process

Participants in the Organisational Buying Process

Major Influences on Organisational Buyers

Organisational Buying Decisions

Group Business Markets

Dealing with Meeting Planners

The Corporate Account & Corporate Travel Manager

Market Segmentation, Targeting, and Positioning:

Markets

Market Segmentation

Jollibee: A Regional Fast Food Chain

Targeting Families by Targeting Kids

Market Targeting

Elite-Napping the Business Traveller

Market Positioning

Airline Positioning: Southwest Airlines

Designing & Managing Products:

What is a Product?

Product Levels

Augmented Product

Brand Decisions

New Product Development

The National Food Laboratory Helps Restaurants Develop New Products & Improve Existing

Products

Restaurants & Hotels Develop New Product Ideas

Product Development Through Acquisition


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Product Life-cycle Strategies

Internal Marketing:

Internal Marketing

When Employee Communications Go Against Customer Expectations

The Internal Marketing Process

Nonroutine Transactions

Building Customer Loyalty Through Quality:

Defining Customer Value & Satisfaction

Tracking Customer Satisfaction

Relationship Marketing

Retaining Customers

The Link Between Marketing & Quality

What is Quality?

Benefits of Service Quality

Developing a Service Quality Program

The Five-gap Model of Service Quality

Forecasting Market Demand

Pricing Products: Pricing Considerations, Approaches, and Strategy:

Price

Factors to Consider When Setting Prices

Aspen Skiing Company Knows Out-of-State Visitors Are Less Price Sensitive

General Pricing Approaches

Pricing Strategies

Segmented Pricing: The Right Product to the Right Customer at the Right Time for the Right Price

Price Fixing

Other Pricing Considerations

Price Changes

The Internet Makes it Easy for Customers to Find Price Information

Distribution Channels:

Nature & Importance of Distribution Systems

Nature of Distribution Channels


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Marketing Intermediaries

Top Ten Ideas for Working with Travel Agents

Channel Behaviour & the Organization

The Hilton Model

Restaurant Franchising

Selecting Channel Members

Responsibilities of Channel Members & Suppliers

Business Location

Promoting Products: Communication & Promotion Policy & Advertising:

The Communication Process

Thank You A Great Personal Communication

Establishing the Total Marketing Communications Budget

Managing & Coordinating Integrated Marketing Communications

Southwest Airlines

Manage the Integrated Marketing Communication Process

Advertising

How Does an Advertising Agency Work?

Major Decisions in Advertising

Association Advertising

Promoting Products: Public Relations & Sales Promotion:

Public Relations

Taco Bell Provided Example of Creative Publicity

Major Activities of PR Departments

Publicity

Singapore Suntec Centre

The Public Relations Process

Major Tools in Marketing PR

Public Relations Opportunities for the Hospitality Industry

Crisis Management

Sales Promotion

Local Store Marketing

Electronic Marketing: Internet Marketing, Database Marketing, and Direct Marketing:

Internet Marketing


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Using the Web to Market Tourism Destinations

Web Site Development

Business-to-Business E-commerce

Developing a Marketing Database System

Using your Database for Customer Research: Defining the Power of Your Loyal Customers

Gazelle Systems Brings Database Marketing to Restaurants

Manhattan East Suite Hotels Gives Customers What They Want Before They Ask

Direct Marketing

Professional Sales:

Management of Professional Sales

Nature of Hospitality Sales

Sales Force Objectives

Sales Force Structure & Size

Organizing the Sales Department

Relationship Marketing & Strategic Alliances

Recruiting & Training a Professional Sales Force

Managing the Sales Force

Destination Marketing:

The Globalization of the Tourist Industry

Importance of Tourism to a Destinations Economy

Stop the Brutal Marketing

Tourism Strategies & Investments

Gambling on Central City

Segmenting & Monitoring the Tourist Market

Maryland Office of Tourism Development Case Study

Communicating with the Tourist Market

Organizing & Managing Tourism Marketing

National Tourism Organizations: How They Work

Tourism and globalization

Dear friends and colleagues,

Today, Im pleased to share with you a chapter on Tourism and Globalization from the

second edition of Deborah McLarens book Rethinking Tourism and Ecotravel, a fully

revised and comprehensive overview of the history and global development of tourism.


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This new edition provides updated information on the global tourism and includes many

case studies on how local communities in different parts of the world, especially

Indigenous Peoples, are affected by this seemingly insatiable industry and haveresponded to the challenges posed by tourism and ecotravel.

Yours truly,Anita Pleumarom

Tourism Investigation & Monitoring Team (tim-team)

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Excerpt from Rethinking Tourism and Ecotravel, Second Edition, Deborah McLaren,

June 2003, Kumarian Press, Inc., Bloomfield/ USA (Order: via email [email protected], Online atwww.kpbooks.com)

TOURISM AND GLOBALIZATION

A traveler can decide today to go to the North Pole and be there by tomorrow. Global

infrastructures such as transportation and communications and global policies for freetrade have created a situation where people and businesses in the global North can easily

access natural resources and cultures in the global South.

Until 1999, when thousands of people around the world began organizing against it (e.g.,the Battle in Seattle), globalization was not regarded as a danger to local economies and

cultural diversity. In fact, politicians and the media tout globalization as the path to

greater wealth and success. Although globalization may be the most primarytransformation of the worlds political and economic structures since the industrial

revolution, its implications have yet to be fully understood and debated.

Most of the economic restructuring is in the interest of big business, not in the interest of

the public. Under the banner of free trade, corporations have come to shape our lives

through the consumer products we buy (including technology), the media that feed usinformation, even the educational system that trains us. Politicians chant the mantra of

privatization and globalization. What does that mean for individuals?

According to Martin Khor, president of the non-governmental organization (NGO) ThirdWorld Network, globalization is a leading threat to local communities, particularly in the

global South:

Before colonial rule and the infusion of Western systems, people in the Third World

lived in relatively self-sufficient communities The modes of production and style of

life were largely in harmony with the natural environment. Colonial rule changed thesocial and economic structures of Third World societies. The new structures,

consumption styles, and technological systems became so ingrained in Third World

economies that even after the attainment of political independence, the importation of

Western values, products, technologies and capital continued and expanded
mailto:[email protected]://www.kpbooks.com/http://www.kpbooks.com/mailto:[email protected]://www.kpbooks.com/


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Third World governments were loaned billions of dollars to finance expensive

infrastructure projects They were also supported by foundations, research institutions,and scientists in the industrialized countries that carried out research on new agricultural

technologies that would modernize the Third World that is, that would create

conditions whereby the Third World would become dependent on the transnationalcompanies for technology and inputs. (1)

The development of vast infrastructures such as roads and other transportation routesgoes hand in hand with tourism development. As more tourists seek out hard-to-reach

frontier destinations, those areas become popularized, and soon private industry takes

over. Once an area is targeted for tourism development, the process begins with road

building and displacement of the local population.

Communication systems go in, as do energy-intensive and pollutive accommodations for

visitors. The roads and communications in turn provide other industries with easy access

to cheap labor and natural resources.

This cycle of development is occurring at alarming rates in small communities andvillages throughout the world; many of these areas are considered the most important

biologically diverse regions of the planet. At the same time, roads built into places like

the Amazon to serve primarily as transportation routes for extractive industries such as

oil, logging, and mining inevitably become new corridors for colonists, including tourists.

Tourism increases local reliance upon a global economy, leaking many economic benefits

outside of the community back to the companies and countries that control most of thetravel infrastructure. At the same time, tourism decreases dependence on local resources,

as technologies, food, and health services are imported. Local people may also be pushed

out or sell out, and local prices for commodities and services rise, as do taxes.

A number of groups and individuals are concerned about the negative impacts of

economic centralization via free trade and regional agreements such as the GeneralAgreement on Tariffs and Trade (GATT) and the European Union. These organizations

point out that the promotion of greater economic units and the expanded transport

infrastructures they require result in urbanization in the global North and South alike,

placing greater pressures on wilderness areas and destroying family farms and ruralcommunities around the world.

Proponents of free trade promise that all trading partners will be better off and that thepractice will usher in a new era of global cooperation and prosperity, but according to a

report by the International Society for Ecology and Culture:

The reality is far different. Increased levels of world trade will lead to a widening of the

gap between rich and poor, to further environmental decline, and to the enrichment of

corporations at the expense of people in both the North and South.


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Small farmers and shopkeepers will be driven under by producers and marketers whose

activities are undertaken at an ever larger scale, and many local economies will simply

not survive. Rural communities will be hardest hit, intensifying the trend towardurbanization.

These free trade agreements are fundamentally anti-democratic. The ease with whichcorporations will be able to transcend national boundaries to move wherever

environmental and health standards are the weakest and wages lowest will strip voters

and even governments of their power to curb corporate excess

In the new global economy, production everywhere will be focused on the needs of a

single, Western monoculture, while Indigenous cultures and diverse location-specific

adaptations will be steadily erased. Local self-sufficiency will become an ever moredistant memory. (2)

Since September 11, 2001, the threat of global terrorism has been a key factor ingovernment relationships and the tightening of restrictions for travelers. That days

events and aftermath have had an enormous impact on the airline industry.

Tourism plays an increasingly important role in international relations. Links exist

between tourist flow and regional integration, governments, military, and economic aid.

Most nations have several policies toward foreign tourists that are based not only onanticipated length of stay, but also on the degree of international cooperation existing

between the two countries. (3)

Tourism is big business for governments and private enterprise alike. Any country with

still-pristine areas of forests, beaches, mountains, and parklands or with ethnic tribes and

other unique rural cultures has something to market in the global economy.

Some of the largest corporations in the world are designing and carrying out policies that

open up borders and allow them to operate in areas once restricted to individual countrycorporations. The tourist industrys entrance into and operations in China, the Middle

East, the former Soviet Union, parts of the African continent, and countries with human

rights abuses show that government and big business can work together despite trade

restrictions and political differences.

Corporations have become dominant governing institutions, often exceeding

governments in size and power. As David Korten states, Increasingly, it is the corporateinterest more than the human interest that defines the policy agendas of states and

international bodies, although this reality and its implications have gone largely

unnoticed and unaddressed. (4) Nowhere is this more true than within travel andtourism.

Governmental instruments and international organizations that help shape international

tourism policy encourage the growth and involvement of transnational corporations


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because they provide quick money and expanded trade and services. In supporting and

increasing the power of such corporations, governments are ignoring the numerous

inequalities, exploitation, and dislocations they foster.

Countries create lax trade environments to attract the tourism industry, lifting restrictions

that are applied to other industries and offering many incentives. As AlexanderGoldsmith explains:

Free trade zones [FTZs] are regions that have been fiscally or juridically redefined bytheir host country to give them a comparative advantage over neighboring regions and

countries in luring transnational corporate activity. Most FTZs share the following

characteristics: lax social, environmental, and employment regulations; a ready source of

cheap labor; and fiscal and financial incentives that can take a huge variety of forms,although they generally consist of the lifting of customs duties, the removal of foreign

exchange controls, tax holidays, and free land or reduced rents. (5)

The travel industry benefits greatly from these FTZs, sometimes even performing whatmay be considered advance work in doing away with free trade barriers for other

industries.

NOTES:

(1) Martin Khor, Global Economy and the Third World, in The Case against theGlobal Economy, ed. Jerry Mander and Edward Goldsmith (San Francisco: Sierra Club

Books,1996), 47-48.

(2) Quoted from The Trouble with Trade, in ISEC/Ladakh Project Newsletter 12

(Bristol, UK, and Berkeley,Calif.): 1,6.

(3) IFC/World Bank, IFC Tourism Sector Review, 4.

(4) David Korten, When Corporations Rule the World (West Hartford, Conn.:Kumarian Press, 1996), 54.

(5) Alexander Goldsmith, Seeds of Exploitation: Free Trade Zones in the Global

Economy, in The Case against the Global Economy, 267.

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NOTE: The articles introduced in this Clearinghouse do not necessarily represent theviews of the Tourism Investigation & Monitoring Team (tim-team).

hospitality product marketing

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