Role of Marketing in a 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..........................................2
1.2 Roles and responsibilities of marketing in the context of the marketing
environment..................................................................................................................4
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 include the different tactical methods used in
achieving set goals....................................................................................................13
2.2 Different tactics applied by hospitality organizations for achieving
objectives....................................................................................................................14
LO3 Develop a basic marketing plan to meet marketing objectives for a hospitality
organization.....................................................................................................................14
3.1 Marketing strategy which captures the mission and goals of the
organization................................................................................................................14
3.2 Designing strategic marketing plan...................................................................15
Bibliography.....................................................................................................................22

Dunkin’ Donuts UK is chosen in order to explain concepts of marketing and the
way it interacts with other departmental areas like finance, HR, IT, and so on within the
organization. Furthermore, a detailed marketing plan for Dunkin’ Donuts is developed.
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
According to the American Marketing Association, marketing is concerned with
the process of planning, organizing and executing the marketing mix of ideas, goods
and services in order to satisfy individual and organizational goal.
Dunkin’ Donuts’ organizational structure is hierarchical. Top-level executives
ensure information flows and employees are given roles and responsibility based on
skills and experience. Roles are combined into departments and so marketing function

of Dunkin’ Donuts also follows the department structure. The following are key roles and
responsibilities of Dunkin’ Donuts marketing function.
Product
Product is defined as bundle of benefits consumers receive in exchange for the
price. It can be both tangible and intangible and comes in the combination of idea,
products, and services. Product marketing is focused on market to understand and
analyze the consumer behaviors and introduce products based on product requirements
(Lumen, n.d.).
Price
Price is paid for the product and service offered by the business and it is crucial
in determining revenues and profits. Dunkin’ Donuts pricing considers factors like listing
price, competitors, discounts and other promotions, sales terms and other expenses
and so on. Pricing should be carefully done because the demand can fluctuate based
on the price and so must be careful not to be overpriced or underpriced. Underpricing
can also damage a brand’s image if not done properly in some cases (Pathak, 2021).
Promotion
Promotion aspect includes advertising, PR, and promotional strategy. The aim is
to utilize these features and convince consumers to purchase products or services.
Promotion and place are usually combined, for example, online only promotion
campaigns to driver brand awareness, or SEO program or email campaigns. Brands
use various promotional tools to drive customer engagement (Twin, 2021).
Place
Place in marketing mix is geographical locations where products and services
are made available. Place is also an important factor, marketers need to identify
locations where target customers frequent and can access. It also means display of
products and services rather than selling location only. With rise in digital marketing as

well as e-commerce, place aspect of marketing also moves towards those platforms like
social media, ordering apps, website sales and so on (Pathak, 2021).
Market research
Marketing function of Dunkin’ Donuts is also responsible for market research like
Dunkin Innovative Lab for example, where new products and innovations are developed
to achieve customer loyalty and offer unique experience. Marketing does market
research in order to identify and evaluate products and services after the usage by
customers. Gathered data are used to make informed decisions regarding
administrative to enhance service, social to uncover customer needs and preferences
and economical of the products and services (Questionpro, 2019).
Marketing planning
Another marketing responsibility is developing marketing plans. The plan has
detailed records of marketing strategies to be used. Marketing department has to
identify target market and segmentation, brand proposition, and types of programs and
campaigns to be used and lastly evaluation and control measures to assess marketing
activities’ effectiveness. While developing marketing plan, marketing department works
closely with other functional areas to ensure effectiveness and efficiency of the plan
(Chen, 2021).
1.2 Roles and responsibilities of marketing in the context of the marketing
environment
Marketing environment is characterized by internal and external environment
forces that influence the ability to serve the target customers; some are in control
within the organizations and some are not, where businesses have to keep track of to
adapt to them.
For internal environment that affects marketing, SWOT analysis of Dunkin’

Donuts will be performed.
Strengths
Dunkin’ Donuts has access to global market and has strong presence in 43
countries with 11,700 outlets, which can be easy to attract customers due to being a
trusted and successful brand (Davis, 2021). It has great positioning strategy, focusing
on breakfast and differentiates from competitors. The brand also has great franchise
strategy. Supply chain management is also effective. It also has eco-friendly policies
like transformation to paper cups in all outlets (Canton, 2020).
Weaknesses
Dunkin’ relies on baked goods and coffee, representing a small portion of the
fast food industry, lacking variety in product options. The brand also has slow
expansion rate due to financial constraints compared to competitors, added by its
limited expansion strategy. And the brand struggles in emerging markets like China
and India, because of poor understanding of local markets (Jain, 2020).
Opportunities
With increased demands for healthier options like plant-based options, Dunkin’
can also offer healthier options. UK is considered the largest market in Europe for
plant-based alternatives with dairy alternatives market worth at $320.6m in 2019
(Southey, 2021). Dunkin’ can also expand its market presence through increasing
number of stores with only 10 stores in UK in 2021 (Jackson, 2021). Dunkin’ Donuts
can also increase its product variety from only focusing on breakfast menus.
Threats
Competition is fierce with other fast food giants like McDonald’s, KFC,
Starbucks and so on. With the pandemic, economies are shrinking, profits and
revenues are affected. People are also increasingly aware of dangers of fast food and
can change the consumption habits. Dunkin’ Donuts can also suffer from regulatory
issues targeting fast-food chains due to unhealthy meals.
For external marketing environment, PESTEL factors of Dunkin’ Donuts are
examined.

Political
Political issues can also affect Dunkin’ Donuts. For example, Dunkin Donuts
spent a lot in lobbying the government and allegedly made donations to democrat
party in hope of creating positive image for government. However, this move can
negatively impact on the business due to the republicans’ values and may choose to
boycott the brand. Fast food brands also constantly face the lobbying actions from
environmentalists due to food waste, pollution, carbon footprint and so on (MBA
Skool, 2020).
Economic
Pandemic impacted the economies of every country, disposable incomes also
decreased. UK economy is expected to shrink by 11% and unemployment rate will
reach 7.5%, highest after 2009 financial crisis and it is made worse by the effect of
Brexit due to unfinished negotiations (Chan, 2020). With the financial restraints and
economic downtime, consumption rate of fast food will also likely decline and it is going
to affect Dunkin Donuts’ revenues as well as its business related plans and expansion
actions.
Social
Changing tastes and more focus on health issues are causing new healthy
product options demands for fast food industry, especially for children with numerous
criticisms targeting fast food chains as the reason behind child obesity. Consumers
now demand healthier options and perception on lifestyle has changed, which media
also plays a role. Pandemic also changed lifestyle of consumers. Dining-in culture has
largely shifted towards online ordering system as well as increased use of drive-
through services (Pratap, 2021).
Technological
Because of changing technology trends that streamline ordering processes and
operations, businesses are saving costs and increasing efficiency. Dunkin’ Donuts has
contracts with Cardfree Inc for its QSR chain mobile ordering and payment system.
The brand also has Dunkin’ Donuts innovation lab where innovative products are