introduction to -...
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
INTRODUCTION TO
Sales and Marketing
HT618/Topic1/May 2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens2HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
WHAT IS MARKETING?
1. Marketing is a social and managerial
process by which individuals and
groups obtain what they need and
want through creating and exchanging
products and value with others.
HT618//Topic1/May2012
(Kotler, Bowen, & Makens, 2006)
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
WHAT IS MARKETING?
2. Marketing is a planning and
implementation process of concepts,
price, promotion and idea distribution,
product and services to form a
transaction that satisfy the individual
and organization objectives.
(American marketing Association)
HT618/Topic1/May2012
3. Marketing is a societal process by
which individuals and groups obtain
what they need and want through
creating, offering, and exchanging
products and value with others. (Philip Kotler)
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
WHAT IS SALES?
HT618//Topic1/May2012
Sales consists of direct efforts to sell the
product by personal sales, calls,
telecommunications & mailings.
Sales activities include activities designed
to promote customer purchase of a
product or service in order to generate
positive cash flow for the organization”.
(Levitt 1960; dictionary 2010)
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens6HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and MakensHT103/Topic1/June2011
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and MakensHT618/Topic1/May2012
A NEED is a human need is a state of felt
deprivation that requires him/her to fulfill it.
WANTS are how people communicate their
needs. Refer to a higher levels of needs.
DEMANDS are wants for specific products that are backed by an ability and willingness to buy them. When backed by buying power, wants
become demands.
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and MakensHT618/Topic1/May2012
A product is anything that can be
offered to satisfy a need or a want.
What are some travel and tourism
“products” that you can list?
A market is a set of actual and
potential buyers who might
transact with a seller
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
• Customer value is the difference between the
customer benefits from owning and/or using a
product and the costs of obtaining the product
• Customer satisfaction is perceived value
delivered relative to a buyer’s expectations
• Quality is the totality of features and
characteristics of a product or service that bear on
its ability to satisfy customer needs
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens11
Exchange
• The act of obtaining a desired object from someone by offering something in return.
A Transaction
• Marketing’s unit of measurement and consists of a trade of values between two parties.
Relationship
Marketing
• Builds relationships with valued customers, distributors, dealers, and suppliers by promising and consistently delivering high-quality products, good service, and fair prices.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and MakensHT618/Topic1/MAY2012
The selling concepts holds that consumers, if left alone, they will not buy any marketed products. Therefore the consumers has to
be influenced to buy, through an aggressive marketing activities,
namely promotion and sales.
Sales concept in marketing is a way that a company can position itself towards the
market.
One of the most important aspects of a business is `making a
sale' because if this does not happen you will have
no customers and no revenue.
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Starting Point Focus Means Ends
Factory ProductSell and
Promote it
Profits through
sales volume
The Selling Concept
MarketCustomer
needs
Integrated
marketing
Profits from
satisfied
customers
The Marketing Concept
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and MakensHT618/Topic1/May2012
DIFFERENCES BETWEEN MARKETING AND SALES
ACTIVITIES
MARKETING SALES
Market analysis, planning, and control.
Field work and desk work to sell to consumers.
Long-term trends, and how to translate problems and opportunities into new products, markets, and strategies for long-term growth.
Short-term considerations, such as today's products, markets, consumers, and strategies.
Profit planning, such as determining the appropriate mix of business from individual market segments.
Volumes and quotas, current sales, bonuses, and commissions.
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens15HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Marketing
(set of activities)
Operation
(production)
Sales
(revenues)
achieving the GOAL of the firm / to
satisfy CUSTOMERS needs & wants
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Any activity or benefit that party can
offer to another that is essentially
intangible and does not result in the
ownership of anything. Its
production may or may not be tied to
a phsyical product.
WHAT IS SERVICE?
(Kotler 1994: Swarbrooke, J. & Horner, S.; 1996)
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens18
Marketing services are different from marketing goods.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
CHARACTERISTICS OF SERVICE MARKETING
Lack Of Ownership
Customer did not have
ownership on the service.
Only for a certain period of
time.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Is The Characteristics Of Services Any Different
To The Physical Products?
Information scientists are often providing services (eg advice, or searches), rather than
physically distinct products.
Marketing a service is more difficult than
marketing a tangible product.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens21HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
8 Specific Characteristics
Differences of Tourism Services
• Shorter exposure to services 1
• More emotional buying appeals2
• Greater importance on managing evidence
3
• Greater emphasis on stature and imagery
4
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
• More variety and types of distribution channels
5
• More dependence on complementary organizations
6
• Easier copying of services7
• More emphasis on off-peak promotion
8
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
• Shorter exposure to
services 1
The customer's exposure to most hospitality and
travel services is usually shorter.
In many cases our services, including trips to fast-
food restaurants, short commuter flights, and
visits to travel agencies, are consumed within an
hour or less.
There is less time to make a
good or bad impression on
customers.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Most manufacturers offer warranties
and guarantees on their products,
sometimes covering several years;
however, not many similar assurances
of quality are available with
hospitality and travel services.
Whereas inadequately cooked menu items can be
sent back to the restaurant kitchen, many
hospitality: and travel services that do not work
cannot be returned and exchanged for similar ones
since they are more intangible.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
• More emotional buying appeals2
You buy products knowing that they will
perform a specific function for you, using rational
(logical or fact-based) rather than emotional
(feeling-based) reasoning.
There are a few exceptions where some
people form a close emotional bond
with specific products and brands.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
People provide and receive our services A person-
to-person encounter always takes place.
This emotional bonding happens more
frequently with hospitality and travel
services because, above all else, ours is
a people industry.
Emotions and personal feelings are generated by
these service encounters, and they influence
future purchase behavior.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
People also tend to buy hospitality and travel
services that match their self-images. They fly
first class and stay at a Four Seasons Hotel
because it fits the mental picture of themselves
as successful business people.
They use a combination of rational
(more services and giveaways) and
emotional (status or class) reasons
when they buy these services
HT618/Topic1/May2012
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Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
• Greater importance on
managing evidence3
Whereas a product is basically a tangible object, a
service is in essence a performance. Customers
cannot see, sample, or self-evaluate services because
of their intangibility, but they can see various
tangible factors associated with these services.
Customers then rely more heavily on these tangible
clues or evidence when they are purchasing services.
The combined effect of these tangible clues
determines their assessment of the service's quality
and how well it will meet their needs.
HT618/Topic1/May2012
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Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
1. Physical environment can include the
types of furniture, carpeting, wall
coverings, staff uniforms, and signs that a
hotel or restaurant uses.
2. Price
3. Communications
4. Customers
The evidence falls into FOUR (4)
categories:
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
•Greater emphasis on
stature and imagery 4
A related concept is the stature
and image of hospitality and
travel organizations.
Because the services provided are mainly
intangible and customers frequently have
emotional reasons for buying them,
organizations put great effort into creating
the desired mental associations.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
•More variety and types of
distribution channels 5
There is no physical distribution
system for hospitality and travel
services.
Instead of a distribution system,
our industry has a unique set of
travel intermediaries, including
travel agents and companies that
put together vacation packages
(tour wholesalers).
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
In contrast, many travel intermediaries
greatly influence what the customer buys.
Travel agents and incentive travel and
convention planners are looked to for advice
on destinations, hotels, attractions, vacation
packages, tours, and transportation.
Customers see them as experts
and take their recommendations
seriously.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
•More dependence on
complementary organizations 6
A travel service can be extremely complex,
beginning when customers notice the advertising
for a particular destination.
These advertisements may be promotional
campaigns funded by government tourism
promotion agencies or convention and visitors
bureaus.
Customers may then visit travel
agencies for more detailed information
and advice.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
What this adds up to is that many different
organizations provide the travel service
experience.
The experience suppliers are interdependent
and complementary.
Travelers evaluate the overall quality of their
experiences based on the performance of every
organization involved.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
• Easier copying of services7
Most hospitality and travel services are easy to
copy.
Most services in hospitality and travel
provides cannot be patented because services
are provided by people and can be imitated by
other people.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
• More emphasis on off-peak
promotion 8
With few exceptions, there is a need for an entirely
different schedule of promotions in hospitality
and travel industry.
Heavy off-peak promotion is the rule, rather than
the exception because:
Customers make a large emotional
investment in their vacations.
The capacity to produce is usually fixed.
There is more pressure to use available
capacity in off-pack periods.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens38HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
5 UNIQUE FEATURES OF TOURIST
DEMAND AND TOURISM PRODUCT
Use Of More Than 4 Ps
Greater Significance Of Word-of-mouth Information
More Use Of Emotional Appeals In Promotion
Greater Difficulties With New-concept Testing
Increased Importance Of Relationship With Complementary Organizations
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Use Of More Than 4 Ps
It is a business of people (staff)
providing services to people
(customers), who share these services
with other people (other customers).
There are 4Ps more in hospitality and travel
industry ; People, Packaging, and Programming,
Partnership.
People hospitality and travel is a people
industry.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Packaging and Programming are two related
techniques and significant for two reasons:
Partnership is cooperative marketing
efforts among complementary
hospitality and travel organizations.
1. They are very customer oriented
concepts.They satisfy a variety of
customer needs, including the desire or
convenience found in all-inclusive
packages.
2. They help business cope with the
problems of matching demand with
supply or reducing unsold inventory.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Greater Significance Of Word-of-mouth Information
The opprtunities for customers to sample
services prior to purchasing them are limited in
hospitality and travel industry.
The rule is, “you have to buy to try.”
This places a premium on word-of-mouth
advertising . (information about a
service experience passed from past to
potential customers).
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Providing a consistent quality of
service and associated facilities is a
key ingredient in getting good
word-of-mouth.
Consistency of evidence ensures that
customers leave with a consistent
impression of an organization’s quality
standards.
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
More Use Of Emotional Appeals In Promotion
Because of the intangible nature of services,
customers tend to make more use of emotional
appeals when they buy.
This means that is often more effective to emphasize
these appeals in promotional campaigns.
In order to make resort, vacation package, or
attraction appeal to customers, it must be given a
distinctive personality.
Companies must be given personalities with which
cutomers can associate. For example your resort
becomes the “Friendly resorts” and so on.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Greater Difficulties With New-concept Testing
Services can be copied more easily than products.
This makes it essential for hospitality and travel
organizations to be ever-alert for new and
innovative customer services.
Leading corporations aware of this and are
constantly test marketing new concepts. With the
increasing dynamics of Malaysian society, it is
unwise to standstill in our business.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Increased Importance Of Relationship With Complementary Organizations
There are 3 unique relationships among organizations
in our industry that have a significant impact on the
marketing of hospitality and tavel services:
1. The relationship between suppliers, carriers, the
travel trade, and destination marketing
organization.
2. The destination mix concepts relation concept
with 5 components: attraction & events, facilities,
infrastructure, transportation, and hospitality
resources.
3. Visitor and residents both intermingle
and share the same services and
facilities.
HT618/Topic1/May2012
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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
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