Hospitality Marketing Essentials

This report examines the role of marketing in the hospitality industry, using Holiday Inn and Travelodge as case studies. It analyzes the marketing mix, compares different approaches to marketing planning, and develops a basic marketing plan for Travelodge's new 'super rooms' initiative. The report provides insights into the strategic considerations and practical applications of marketing in the hospitality industry.

HOSPITALITY MARKETING ESSENTIALS

CONTENTS
INTRODUCTION...................................................................................................................................1
LO – 1......................................................................................................................................................1
P1 Roles and responsibilities of the marketing function within Holiday Inn Hotel............................1
P2 How roles and responsibilities of marketing is related to wider organisational context................3
LO – 2......................................................................................................................................................6
P3 Comparison of ways of applying marketing mix to the marketing planning process by different
hospitality organizations......................................................................................................................6
LO – 3......................................................................................................................................................9
P4 Producing a basic marketing plan for Travelodge to meet out marketing objectives....................9
CONCLUSION......................................................................................................................................12
REFERENCES......................................................................................................................................13

INTRODUCTION
Marketing is a broad concept and is quite vital aspect of any business. It begins with
the determination of the needs of the customers and ends with the self-actualization stage.
Consequently, it can be said that marketing is nothing but a systematic process which helps in
evaluating the relationship existing between the organization and its concerning business
environment. Referring to the high level of competition as well as globalization, restaurants,
accommodation and hotels in the hospitality sector is coming across with numerous
challenges and issues related to conducting market research (Ferrell and Hartline, 2008).
Firms these days are needed to have better comprehension of the market place, demands of
the clients, profitable relationship with the suppliers and customer driven strategy in place to
conquer the modern marketplace.
Considering this aspect, the main aim of the current research essay is to comprehend
the role of marketing and other functions within the company. Hotel chosen for the current
study is Holiday Inn which is a British owned Multinational brand and a subsidiary of Inter-
continental hotel. It has 1173 active hotels all across the world and is being grown as one of
the largest hotel chains. The research study will evaluate marketing mix of the hotel and
comparison with other hospitality firm will also be performed. Further, it will also pay
attention on marketing plan for achieving the marketing goals of the hotel.
LO – 1
P1 Roles and responsibilities of the marketing function within Holiday Inn Hotel
American Marketing Association (AMA) continuously revise the definition of
marketing according to the changing trends in the market and as per them it is a never ending
process that helps the business firms to shift their merchandise and services to the final users.
Marketing is simply an activity concerning to product distribution that includes marketing
research as well as segmentation (Baines, Fill and Page, 2013). Customers are the kings in
this present competitive business scenario and when it is the case of hotels, there importance
increases manifolds. Holiday Inn also focuses on offering quality services to their customers.
With the support of the marketing function, Holiday Inn is even determining and satisfying
the needs of their clients. The growth of the hotel is dependent on the marketing strategies
used by them. The main aim of Holiday Inn is to offer fast, quick, quality as well as friendly
services to their guests. Some of the major marketing function is being elaborated in the
subsequent paragraph:
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Roles and
Responsibilities
How it is implemented in Holiday Inn
Distribution
Approaches and ways through which the goods and services are sold
to the clients is equally significant to comprehend by the managers.
Marketing function is responsible for managing as well as maintaining
the distribution channels such as computer reserve system, online
booking, alteration in the web page and many more. Holiday Inn also
adopts varied channels of distribution for commercializing their
products (Sheela, 2002).
Selling
It is considered as the most vital roles of marketing function within
Holiday Inn. This is concerned with the overall sales being taken place
within the hotel. Varied techniques and approaches are being used by
Holiday Inn for selling their products and services in the market.
Additionally, to attain the desired sales figure, hotel also understands
that marketing is quite different from sales. Through market research
they determine the demands of the target people and thus, attracts
large pool of customers by offering the same to them.
Financing
Last but not the least, there is one more important role being
performed by the marketing function of Holiday Inn i.e. financing. At
the time of making marketing plan, many elements are included which
costs too high. Further, for achieving higher profits, more investment
is made by Holiday Inn. Here, the role of financing come into exists
(Kotler and Armstrong, 2010). The main role of financing is to return
the money being invested by the hotel in longer period of time and
supports in developing such marketing plan which is believable,
achievable and comprehendible. Lastly, this function of marketing
also decides the budget and varied sources of finance for marketing
plan of the hotel.
Market
Research
Market research is being performed by Holiday Inn for the purpose of
identifying the taste as well as preferences of their clients. With this,
the hotel also identifies their potential client base as well. Other than
this, market research is also carried out by Holiday Inn for analysing
the competition level in the market (McDaniel and Gates, 2014).
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Consequently, it can be concluded that marketing function of Holiday Inn hotel have
to perform varied roles and fulfil different responsibilities for attaining the pre-determined
goals and objectives of the hotel. The market is full of competition and dynamism and thus, it
is important for the Holiday Inn to shift their attention on offering those products and services
which provides added value to the guests, stakeholders and the society as a whole. Further,
these marketing function also have varied roles to promote the growth within Holiday Inn
(Hudson, 2008). Therefore, it can be said that marketing function plays a crucial role in the
hotel and it meticulously have some connection with the other function of the hotel.
P2 How roles and responsibilities of marketing is related to wider organisational context
Focusing towards marketing, it is beyond selling as well as advertising of the products
and services of the firms. It is in fact a helping hand for the firm that identifies the demands
and needs of the consumers in the target market. There is some or the other relation between
the marketing function and other functions of Holiday Inn.
As Holiday Inn is related with the hospitality sector, numerous functions needs to be
carried out to match the norms of the service sector like food and beverage department,
finance, operation department, human resource management, room division, front office etc.
All these functions have different approaches, techniques and procedures for carrying out
their own piece of work (Kotler and et.al, 2017). But, they have a common aim to achieve
and their actions are also directed towards achieving the same. Further, these functions are
also related with the marketing function Holiday Inn. Thus, it becomes necessary to analyse
the inter-relationship of different functions with marketing function of Holiday Inn.
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Marketing
Front Desk
services
Reservation
Purchasing/
Accounting
Human
Resource
Management
Food and
beverage
Room
Division

Function Roles Responsibility Inter-relationship with
each other
Finance and
Accounting
The main role of
this function
within Holiday Inn
is to manage all
the financial
operation taking
place within the
hotel.
The major
responsibility of this
function is to monitor
day to day financial
transaction taking
place within Holiday
Inn. Further, this
function is also
responsible for
processing payrolls,
passing budgets,
development of
statements, internal
report and many more.
Marketing and finance
function are also inter-
related with each other.
The marketing department
of Holiday Inn is required
to contact the financial
department in regards
with approving budget for
promotion, distribution
and conducting market
research (Brody, 2009).
Food and
beverage
Food and beverage
department’s main
role is to render
quality food and
services to the
guests with a main
aim to promote
positivity within
the hotel so that
they can be
contended (Hooley
and Graham,
2008).
Food and beverage
department has a major
responsibility to play
within Holiday Inn.
This department is
liable to maintain high
quality services
standards, extra-
ordinary food quality,
effective management
of bars and restaurants,
proper cleaning, health
and hygiene etc.
Talking in reference with
the inter-connection
between food & beverage
and marketing department
of Holiday Inn hotel, they
work closely with each
other. This is because they
needs to make sure that
the research being carried
out by the marketing
department in regards
with the taste, demands,
needs and preferences of
the customers should be
comprehended by the
F&B department so that
proper food, quality and
standards are maintained
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to make them satisfied.
Additionally, amount of
order generated by the
marketing team should be
accomplished by the F&B
department in proper time
and thus, there continuous
interaction is bit necessary
(Elliott, Waller and
Rundle-Thiele, 2014).
Human
Resource
Management
The main role of
the human
resource
management
function of
Holiday Inn is to
attract, develop,
train, appraise and
manage the most
valuable asset of
the hotel. This
function has a
pivotal role as the
whole process if
dependent on
efficient human
resource and its
management
(Gazzoli, Hancer,
and Park, 2010)
The main
responsibility of this
function is to carry out
routine activities
related to human
resource such as HR
planning, recruitment,
selection, training and
development,
performance
management and
compensation rewards
etc.
The human resource
management function and
marketing function are
linked with each other.
Holiday Inn needs
employees for carrying
out market research,
developing plan,
executing strategies etc.
the need of all such
employees is being
evaluated by the HR
department and training is
offered to them as per
their job role so that
objectives of marketing
can be achieved.
Thus, in the words of Katz and Kahn, it can be said that inter-relationship amid
marketing function and other functions of the hotel is nothing but a type of an open social
system which includes 2 or more than 2 people, department ad functions which have some or
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the other interaction with each other on a regular basis. From the above discussion it is not
unusual to comment that every function within the hotel is inter-connected. Though they have
different work to perform, their behaviour as well as actions are being directed towards the
achievement of the common goals. Considering the case of Holiday Inn, the marketing
function needs help of operational department for carrying out their operations efficiently
(Griffith and et.al, 2014). For example, if some discount needs to be offered by the marketing
team on certain types of products and services than it is essential to have communication with
finance and F&B department of the hotel. After that this kind of strategy can be executed. As
a result, it is quite true to say that each and every department or function have their own
entity and identity but all are inter-linked to increase the return of the hotel as well as to
achieve higher growth and success.
LO – 2
P3 Comparison of ways of applying marketing mix to the marketing planning process by
different hospitality organizations
Elements of
Marketing Mix
McDonalds Holiday Inn
Product
McDonalds offers snacks, desserts,
sandwiches, hamburgers, salads,
chicken and fish etc. For breakfast
customers, McCafe is introduced
by the company. Special discounts,
advertisement and promotional
schemes to attract large pool of
customers (Borden, 2011).
The product of the hotel
encompasses swimming pool,
rooms, suites, food and beverage
services, bars, restaurants etc.
Improvements are also being
made by the hotel from time to
time in these products such as
free mobiles hones to business
clients etc.
Price
The pricing policy being adopted
by McDonald is competitive
pricing. Even they adopt varied
pricing strategy for varied outlets
according to the demand.
Holiday Inn makes use of
premium policy since their target
customers belongs to the higher
income group.
It is concerned with the distribution
strategy adopted by the firm. Their
Since Holiday Inn belong to the
luxurious hotel chain, place is
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Place
strategies varies from nation to
nation. Somewhere it is open 24
hours, whereas in other they have
free home delivery services. They
follow intensive distribution
strategy in order to ensure that
products are present for sale
through all the channels of
distribution.
very crucial element for them.
The hotel ensures that their
properties are located in prime
location of the cities so that large
pool of customers can be
attracted. Distribution costs,
storage as well as stock are also
kept at acceptable levels in
Holiday Inn (Borden, 2011).
Promotion
McDonald adopts varied techniques
for promoting their products and
services such as newspaper,
magazines, and television, internet
and media outlets. Even sales
promotion approach such as get six
stickers with six cup of tea or
coffee. Further, discount coupons
are also offered on particular type
of products.
Holiday Inn makes use of their
travel advisory and travel
management websites for the
purpose of advertising their
products and services.
People
McDonalds employs around more
than 85000 people in UK and in
Northern Ireland. They even invest
huge amount on rendering training
and development opportunities to
their workers. Their main focus is
on satisfying their employees so
that they can offer better services to
their clients (McDonald’s, 2017).
Holiday Inn has varied
departments and employees in all
such department has crucial role
to play. They offer 24 hour room
services to their customers and
arrange different training events
to enhance the ability of the staff
members so that they can provide
extra-ordinary services.
For the purpose of delivering goods
and services to the customers,
different kind of activities is carried
out by the company. For instance,
guests can see how their ordered
food is being prepared and how
Holiday Inn belongs to the luxury
segment and thus, they are
required to be very process
oriented. Their main aim is to
perform their operation in
minimum possible costs. Even
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Process cooking is being processed. For
placing the order, they have
electronic machines. Other than
this, they have systematic process
of offering food to their customers
by their care assistants.
they have set processes for their
day to day operation and
preparing food for their
customers. Right quality, quantity
and timely delivery of food is
being maintained by the hotel by
adopting just in time technology.
Physical
Evidence
Physical evidence is being
concerned with the physical
environment veteran by the
customers within the café. All the
function within the company is
being impacted by the physical
evidence. For example, the interiors
are quite fascinating, healthy and
clean. Many of the outlets too have
play zone for kids. They even have
nice sitting arrangement to eat and
relax.
In case of Holiday Inn, physical
environment and infrastructure
are all part of service experience.
The properties of the Holiday inn
are in the architectural form. It
also includes many décors in
interiors and exteriors of the hotel
(IHG, 2018).
Different marketing tactics applied by Holiday Inn for achieving objectives
Making use of Content
marketing
By making use of content marketing, Holiday Inn can attain
their desired goals of marketing. With the content marketing
strategy in place, the hotel can also ensure regular addition of
fresh content to the website of their hotel. This can easily draw
focus of most of the visitors. In addition to this, the hotel can
also share their content on range of social media platforms in
order to increase their views. For instance, Holiday Inn can
create a web articles, blog and video content for marketing their
products and services (Lilly, 2014).
Further, the marketing objectives of the Holiday Inn can also be
achieved by adopting another marketing tactic known as Unique
8

Marketing the Unique
Selling Preposition
(USP)
selling preposition (USP). The hotel should have something in
unique from their competitors such as luxurious services, variety
of food, taste and quality etc. This should further be promoted
through all marketing channels of the hotel.
LO – 3
P4 Producing a basic marketing plan for Travelodge to meet out marketing objectives
Poster presentation
For the purpose of producing a basic marketing plan in regards with Travelodge who
has decided to launch a premium economy room known as super rooms all throughout the
UK, numerous steps needs to be utilized such as carrying out situational analysis, deciding
objectives, carrying out actions and monitoring and control (Changchien and Lin, 2013). All
steps in basic marketing plan is being defined in the below poster:
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Detailed, coherent and evidence-based marketing plan
Competitor’s analysis (Porter’s five force model)
Competitive rivalry
The rate of competition is quite high, as it is competing with
the five star hotels operating in the market of United
Kingdom by offering budget stay with high quality services
Threats of substitute The substitute of the hotel is corporate guest house and other
informal accommodation means. They are quite cheaper and
thus, offer high threat of substitute.
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It helps in analysing the
internal capabilities of
Travelodge, its competitors
and give insight about the
customers
Satisfaction
of the
Customers,
quality
services,
Money
liberator
Process of
reporting
and actions
Resources and
skills
Processes
Responsibilities
and structures
Marketing mix of
Travelodge
Market
segmentation
, target
market and
positioning
strategies

Bargaining power of
suppliers
It is quite low because of presence of large suppliers
(Zeithaml and Bitner, 2003)
Bargaining power of
buyers
It is also low as there are pool of customers available
Threat from new entrants
It is comparatively low as Travelodge is using strong
branding to attract clients.
Marketing objectives
 Offering high quality products and services
 To become price saviour
 To earn reasonable profits
 Promotion of new launch of “super-rooms”
Marketing Strategies
 Segmentation – Demographic segmentation (income level, age, gender)
 Targeting – Business professional (25-45 years)
 Positioning – Positioning as best quality provider of accommodating services by
using digital platforms like Twitter, Facebook and internet marketing (Peck and et.al,
2009).
Business objectives Marketing mix &
strategy
Tactics Monitoring &
evaluation
Becoming price
saviour and earning
reasonable profit
Average pricing
policy should be
followed
Market research &
cost effective
processes
Activities should be
controlled by
supervisors
High product quality
Rooms with internet,
video-conferencing,
network connectivity
and other services
should be offered
Development of
efficient product
team
Specialized
supervisors
Customer
satisfaction
People are vital and
thus, firm should
hire professional
service providers
Making
improvement in their
skills, body
language, inter-
personal
Launching customer
feedback programs
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communication
Promotion of new
launch of “Super-
rooms”
Business
professionals should
be targeted through
digital focus
Internet marketing,
Twitter, Facebook
and other social
media can be
adopted
Remaining active on
social media and
launching supporting
campaigns
CONCLUSION
Consequently, it can be said that marketing is quite necessary for carrying out
successful business operations. It was explored from the research that principles, tactics as
well as concepts of marketing should be applied in the organization efficiently so that no
activities are hampered. Marketing strategies can helps hotel in overcoming challenges and
issues coming from the external business environment.
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REFERENCES
Books and journals
Baines, P., Fill, C. and Page, K., 2013. Essentials of marketing. Oxford University Press.
Borden, N.H., 2011. The Concept of the Marketing Mix. In Schwartz, George. Science in
marketing. Wiley marketing series.
Borden, N.H., 2011. The concept of the marketing mix. Journal of advertising research, 4(2),
pp.2-7.
Brody, D., 2009. Latest Trend in Hotel industries. Delhi: Global Media.
Changchien, S.W. and Lin, M.C., 2013. Design and implementation of a case-based
reasoning system for marketing plans. Expert systems with applications, 28(1), pp.43-53.
Elliott, G., Waller, D. and Rundle-Thiele, S., 2014. Marketing. 3rded. Australia: John Wiley
and Sons.
Ferrell, O.C. and Hartline, M.D., 2008. Marketing strategy. 4thed. South-Western, Mason,
OH: Thomson.
Gazzoli, G., Hancer, M. and Park, Y., 2010. The role and effect of job satisfaction and
empowerment on customers’ perception of service quality: a study in the restaurant
industry. Journal of Hospitality & Tourism Research, 43(1), pp.56–77.
Griffith, D., Lee, H., Seob Yeo, C. and Calantone, R., 2014. Marketing process adaptation.
International Marketing Review, 31(3), pp.308-334.
Hooley, A. and Graham, H., 2008. Marketing Strategy and Competitive Positioning. Pearson
Education.
Hudson, S., 2008. Tourism and hospitality marketing, A Global Perspective. London: Sage
Publications Ltd.
Kotler, P. and Armstrong, G., 2010. Principles of marketing. New Jersey: Pearson Prentice
Hall.
Kotler, P., Bowen, J.T., Makens, J.C. and Baloglu, S., 2017. Marketing for Hospitality and
Tourism. 7thed. England: Pearson.
Lilly, M.C., 2014. Content Marketing Essentials for Small Business. SAGE.
McDaniel, C. and Gates, R., 2014. Marketing research. Wiley Global Education.
Peck, H., Payne, A., Christopher, M. and Clark, M., 2009. Relationship Marketing for
Competitive Advantage: Winning and Keeping Customers. Butterworth-Heinemann.
Sheela, A.M., 2002. Economics of Hotel Management. New Delhi: New Age international.
Zeithaml, V.A. and Bitner, M.J., 2003. Services Marketing. McGraw-Hill.
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Online references
IHG. 2018. [Online]. Available through: <https://www.ihg.com/content/us/en/about/brands>.
[Accessed on 8thFebruary 2019].
McDonald’s. 2017. About McDonald’s. [Online]. Available through:
<http://www.mcdonalds.co.uk/ukhome/Aboutus/Newsroom/facts_and_stats0.html>.
[Accessed on 8thFebruary 2019].
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