Role of Marketing in Hospitality Organization

Contents
LO1 Explain the role of marketing and how it interrelates with other functional units in a
hospitality organization........................................................................................................................2
1.1 Key roles and responsibilities of the marketing function of KFC....................................2
1.2 Roles and responsibilities of marketing in the context of the marketing environment
.................................................................................................................................................................6
1.3 How roles and responsibilities of marketing relate to the wider organizational
context...................................................................................................................................................9
1.4 Significance of interrelationships between marketing and other functional units....10
1.5 Key elements of the marketing function and how they interrelate with other
functional units within a selected hospitality organization....................................................12
LO2 Compare ways in which hospitality organisations use elements of the marketing
mix (7Ps) to achieve overall business objectives.........................................................................13
2.1 Different ways hospitality organizations use the marketing mix (7Ps) to achieve
company objectives and the different tactical methods used in achieving set goals.....13
2.2 Different tactics applied by hospitality organization to demonstrate how
business objectives are achieved................................................................................................16
LO3 Develop a basic marketing plan to meet marketing objectives for a hospitality
organization...........................................................................................................................................17
3.1 A marketing strategy which captures the mission and goals of the organization.
17
3.2 Marketing plan for a hospitality organization................................................................18
Bibliography..........................................................................................................................................24
The following report concerns with marketing concepts and the role of it within
hospitality organization and how it interrelates with other functional areas. As for
organization, KFC UK is chosen and a marketing plan is developed for the brand.

LO1 Explain the role of marketing and how it interrelates with other functional
units in a hospitality organization
1.1 Key roles and responsibilities of the marketing function of KFC
According to Philip Kotler, marketing is a managerial related process that is
performed by individuals and groups that create and exchange products and services in
order to attain what they desire and need (Saikia, 2019).
KFC has a centralized organizational structure with decisions mainly set at upper
levels. Heads of departments agreed on newly launched deals and then deliver and
discuss the achievable objectives with the rest of the teams (Ford, 2021). In KFC UK &
Ireland, the organizational structure is composed of managing director, CFO, COO,
Marketing, HR, and CTO at the upper level (The Official Board, 2021). So, the
marketing function of KFC takes the structure of centralized model, with the department
controlling marketing related activities.
Current and future marketing trends in fast food industry should also be aware in
order to respond to consumer behavior changes and to develop competitive advantage
ahead of competitors.
Current marketing trends
E-commerce: E-commerce for F&B is expected at $66.95 billion in 2025, largely
impacted by pandemic as well as smartphone adoption increased rate (The Business
(research company), 2021). Mobile devices are mainly used for purchasing online for
convenience and fast-food outlets like McDonald’s and KFC have rolled out their own e-
commerce apps as well as websites for e-commerce web based purchases. Third-party
delivery apps like Uber Eats are also used.
Digital marketing: over 7.7 billion people have access to the internet and more people
are compelled to search, shop products and services through websites and social
media, showing the importance of digital marketing to gain customers (Internet World

Stats, 2021). Businesses are using content marketing, email marketing and so on,
combined with SEO, covering topics to interest customers. Social media presence is
also importance, on Facebook 6 in 10 most popular brands are from F&B industry for
example (Ramakrishnan, 2019).
Reviews: F&B businesses also make use of food blogging channels to increase brand
presence while attracting new customers. It is reported that 79% of consumers have
great trust in food bloggers about food information (D'Adamo, 2017). YouTube based
food tutorials and review videos are also an ideal way to gain brand awareness. 86% of
millennials use YouTube for food and beverage related contents. Brands also try to gain
more authentic reviews via review sites since 92% relies on peer to peer
recommendations and even increase retention rate (DigitalSilk, 2020).
Future marketing trends
Personalization: from mass customization, personalization will be the next trend for fast
food industry. Consumers are increasingly demanding personalized experiences from
fast food companies but still maintaining service quality, speedy delivery and convenient
accessibility (Beer, 2019). According to GlobalWebIndex, 52% of customers want the
customizable menu options, along with more unique experience, whether it’s data
based food preparation, or options reflecting location wise ingredients.
Dietary trends: According to GlobalWebIndex (2019), 20% want more meat replacement
options, healthier menu options with organic ingredients is voted by 43%, showing more
people are inclining towards dietary changes. Because of reports indicating unhealthy
food options from fast food chains as well as consumers’ rises in health consciousness,
brands are transforming their images with ‘healthy fast food’ aspect, starting from
preparation processes to menu options (Dharra & Da, 2021)
Ethical and transparency: 78% of consumers state brands that only put profits as priority
instead of customer welfare negatively impacts buying decision (Edelman, 2019) and
94% are more willing to be loyal if a brand shows complete transparency, making
businesses to adopt more ethical marketing practices (Acumen Academy, 2020). For

example, KFC, McDonald’s, so on are introducing sustainably sourced ingredients in
order to appeal to generation Z and millennials (Commetric, 2019).
Marketing function is important in order to commercialize the innovative offerings.
Marketing connects products and customer needs through consideration of customer
experience channels and engaging customers with the offerings (Lee Yohn, 2019). The
following are key roles and responsibilities of marketing function of KFC.
Market research: market research is conducted by marketing department in order to test
feasibility and perceptions of new product and service with target customers. Through
the gathered information, tailored marketing and advertising efforts can be exerted
through segmentation (Twin, 2021). Information is also used in making marketing mix
decisions. Primary and secondary research types are conducted.
Branding: marketing department is also responsible for branding efforts. The objective
of branding is to differentiate one’s brand from competitors in order to reduce risks of
substitution, and increase profits (Sammut-Bonnici, 2015). Branding follows the steps
of identifying target customers and segmentation, positioning the product or service,
creating a brand identity, and developing logo and slogan (Indeed Editorial Team,
2021). After this, a continual process of communicating the brand’s promise is
conducted.
Marketing planning: marketing planning is also performed by marketing department
which is the organizing and planning process of marketing operational strategies to
achieve marketing goals (CFI, 2015). Important aspects in planning are market
segmentation and target customers, budgeting, marketing mix, and customer
relationship management.
Marketing is also responsible for marketing function known as marketing mix.
Product: product here can be defined as benefits the marketing department is trying to
offer to the customers at a price. It can also be in the form of services. Product can be
the main feature of marketing management (Singh, 2012).

Price: price is the amount to be paid for offered product and service. Marketing
department considers various factors while setting the price like product need and
consumer paying ability, cost of making, rules and regulations, competitor prices and so
on. Pricing can impact both attractiveness of the product as well as organization’s
profitability (Singh, 2012).
Place: marketing department also has to make the products and services available at
various places through the distribution channels like distributors, retailers and
wholesalers alike and decide whether to sell directly to the customers or use
intermediaries (Thabit & Raewf, 2018).
Promotion: marketing managers decide on the extent of promotion budget. Promotions
are in support for advertisement, publicity and personal selling in order to showcase the
products and services to motivate purchase decisions (Burnett, 2008).
1.2 Roles and responsibilities of marketing in the context of the marketing
environment
Marketing environment includes internal and external related factors that affect
a business’ marketing efforts. Marketers need to be aware of such forces in order to
achieve opportunities and minimize the impact of threats (Udoagwu, 2021).
Internal environment can be defined as SWOT and usually is able to be
controlled and managed by the organization.
Strengths: KFC is a well-known trusted brand with a valuation of $8.5 billion in 2020
and is one of the 100 most valuable brands (Harris, 2020). Second strength is its
secret recipe of 11 herbs and spices which is a competitive advantage. It is also under
Yum! brands along with other giant fast food chains like Pizza Hut, having transferable
competitive management capabilities and resources.
Weaknesses: poor franchise management system resulting in inconsistent quality and
services, which is one weakness. Another weakness is supply chain inefficiency. KFC
UK had to close around 400 outlets in 2018 because of delivery issues for example
(BBC, 2018). Another weakness is since KFC offers fast food, its menu options are on
the side of being unhealthy. KFC also has high employee turnover rate, common in

fast food industry.
Opportunities: customers are increasingly demanding healthy menu options and KFC
can introduce alternatives and KFC also has market opportunity in food delivery and
takeout aspect, especially after the pandemic effect. UK food delivery market is valued
at 8.5 billion pound in 2019 (Lock, 2020).
Threats: health conscious consumers’ behavior changes to healthier options can be
one form of threat. Market is becoming saturated and competition is fierce. More
customized local fast food chains are also a threat. Foreign currency fluctuations can
impact operations and also government rules and regulations can be threats to the
organization.
For external marketing environment, PESTEL analysis is conducted and
includes factors that are out of the organization’s controllable area.
Political: government policies concerned with fast food operations can impact the
organization. For example, UK is preparing to ban fast food advertising before 9 p.m.
as part of the strategy of controlling obesity (Adami, 2021). KFC needs to adhere to
regulations and policies to have good relationship with government bodies. Some
political related actions can even cost customers like the mocking of KFC to president
Trump, which was seen badly by his republican followers for example (Sini, 2018).
Economic: UK is 6th in economy size in the world. However, due to pandemic effects,
businesses were affected poorly and KFC was also affected with decreases in fast-
food consumption which could be the impact of more consumption on home-made
meals (Bakaloudi, et al., 2021). However, the economy is slowly recovering based on
the increase in savings amount.
Social: people are cutting back in fast food intakes as a result of the trend of eating
healthier. Generation Z and Millennials are making food purchase decision on health
wellness, sustainability and cruelty free factors (efi, 2020). Government is also
exerting efforts in reducing child obesity like banning fast food advertising for example.
However, fast food is still consumed because of its convenience to cope with fast
paced lifestyles.