This report explores the role of marketing in the hospitality industry, using Travelodge as a case study. It analyzes the marketing mix, compares it to McDonald's, and develops a marketing plan to achieve organizational objectives. The report also examines the interrelationships between marketing and other functional units within Travelodge.
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HOSPITALITY MARKETING ESSENTIALS
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Table of Contents INTRODUCTION-..........................................................................................................................1 P1 explain role and responsibilities of marketing in travel lodge...............................................1 P3 compare the different hospitality organization how they are using marketing mix in their businesses....................................................................................................................................8 P4 Create a marketing plan which meet with the objectives of the hospitality organizations..10 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION- Marketing is important activity which is performed with motive of increasing sales and profitability. Marketing is the process which includes developing, promoting and delivering of products and services. Present study is based onTravelodge hotel which is a hotel chain located in UK. Known for its super deluxe, luxury rooms andrestaurant. Staff of 10000 people try it gives the best service toTravelodge customers. This study is relation to know the role and responsibility of marketing function in Travelodge and external and internal factor affect a hospitality organisation. Report summarise relation and interchange a department have with another to run whole organisation smoothly. Report provide information about Marketing mix policy of Travelodge with its evaluation and tactics and practises perform by Travelodge to take competitor advantage . P1. explain role and responsibilities of marketing in Travelodge Hospitality Organisation:hospitality organisation offer services to their customer. They do business of services rather than product for example hotel industry, tour and travel service, airline and cruise. Any economic change in economy or environment hit this kind of organisation because they deal in luxury service not in essential services. Lack of disposal income can make a person withdrawal from these services, if there is any major environmental change occur at any place also decreases sale. Hospitality organisation put more emphasis on customer satisfaction. Brand loyalty, brand positing and public image play a very important role for this organisation. Another unique feature of hospitality organisation is they can follow special theme like a hotel can follow only wooden decoration theme(Awan And et.al., 2015). Travelodge is ahotel chain offer variety of service in the hotel like super room, luxury rooms, group booking, free meal to children, free wi-fi access, spa, food restaurant, bar facility. It also has unique feature room like room changes its colour according to body clock. Role and responsibility of marketing Roles and responsibilitiesHow is it executed in the selected Organisation Opportunity investigator-marketing seek opportunity for growth, expansion and improvement. This is done by doing research regarding customer behaviour, product innovation and competitiveness, research for advertisement tool, location cost effectiveness, look for suitable distribution channel align with cost, know prediction of changes in external and internal business environment, customer satisfaction analysis Travelodgeuse marketing research in knowing demographic factors affecting like income level of people, age, culture, customer want and need. Factor affecting choosing location like easy accessibility, near to market, railway or airport, weather condition, no social elements etc. travel lodge use advertising on social media, mail marketing, promotion on travel agency site, referral, collaboration with local business. Customer satisfaction is prime concern check by feedbacks, CRM, and two waycommunication. 1
Build Public image- marketing help in build public image through company social responsibly programme, charity, host event, sponsor education and health program, environment friendly activities etc. Travelodge organise free health check-up programme, Christmas events, sports event, new year eve, contribute on environment day, mother day greetings, use co-operate social responsibilities, help government in disaster management, Brand positioning– brand positioning is efforts try to occupy image and impression in customers brain. Brand positioning strategy include clear massage of statement conveying why your product is different from and what benefit it will give to the customers. But before defining positioning statement organisation must clearing recognise their target audiences and customer behaviour. Travelodge useits website and advertisement tool to make impression on customer by show them what they have as their service as environmental friendly atmosphere, free complementary food for child, discounts, Categories of rooms according to income and requirement of people, luxury experience, give value to each customers, spa treatment and transformational experience. Make coordination– Marketing create action plan to meet business objective, give instruction to team, give information to higher authority regarding plan, issues and strategy and co-ordinate with other functional units of organisation.(Baker, 2016.) Marketing team of Travelodge plan for room booking, advertisement and customer satisfaction. Also, coordinate with room division, food department and finance and HR department for smooth working. P.2 Roles and responsibilities of marketing in the context of the marketing 2
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llustration1: Role and responsibilities of marketing environment of travel lodge Researcher– research help in analysing the environment and factors in which a business working. Diagnosis research deal with find out deviation in actual and desire result. Where extrapolative research deals with find out new customer, new product and new strategies. Provide information-it is responsibility of marketing department to acquire and provide information regarding sales, production, changes in technology, trend, customer need and preference, complainants, competitor pricing and policies etc. For performing accurate, result oriented and effective research Travel lodge gather information about internal factor like service improvement, customer segment , buying habits, preferences, and external factor like Govt. policy, trend, cultural, social class of targeted customers. Marketing planner- marketing planning consist setting marketing objectives alien with organisational objective, marketing analyse with help of market assumption and SWOT, Develop marketing strategy, Promotion- promotion is effort to give information about product or service to target audience. It can be done through direct sale, advertisement, world to mouth sale, social marketing, make public relation and Travel lodge consider External factors like infrastructure, resource and facility availability, inflation, labour cost, climate, cultural norms, government policy affect business plan. Internal factor like skill and competency of human resource, business cycle, available 3
forecast sale or result, marketing budget allocation, take corrective action plan for meet marketing objectives. Manage sale personnel and their competencies. charity work, email marketing, phone marketing, website, free tour arrangements, videos, photos, virtual tour experience etc. (Wirtz,Tuzovic ,Kuppelwieser 2014) fund, research and development efforts, communication and organisational structure. Promotion strategy must be followed by considering education level of people, technology available, awareness, ethical and socio cultural factor. Innovators- without innovation and up gradation no business can run in this high competitive business environment. Innovation in service, product, packaging. Use of new technology in promotion are part of marketing function. Insure customer satisfaction-Customer satisfaction can be avail by pricing policy, handling issue and complaint on time, quality of service, environment, discounts, etc. Emerging technologies, adaption power of human resource, accessibility of information, education quality, competitor's innovation and idea can hamper innovation of organisation. Marketing interrelation with other functional units of travel lodge Food and beverage and marketing- marketing perform research regarding food preference, taste and age, cultural factor like use of beef, non-veg or veg, egg consumption, disposable income, food outlet preference, education and awareness level of target customer. Travel lodge customises product on the basis of research provided by marketing team like different food purchase for family and students, location of outlet, variety of food as per age and taste like less oil cooking andnutrition, less sugar, high in fibrefor health conscious people and sensory food for youngsters. Marketing and room division- room division department of Travel lodge communicate guest information with other supportive department to insure non interrupt service like housekeeping department, cleaning staff, food staff etc. marketing help in proving regular booking by their sale efforts. Marketing team tell about offers and discount given to customer, decoration theme of the hotel is also suggested by marketing team because they know what is happening in industry. Purchasing and marketing- people will get to know about the product throw promotion effort, Travel lodge's marketing department give best price and deals, create awareness and brand image of the product. New technology avail in rooms, Customer relation management increases brand loyalty and satisfaction, trust and goodwill. Travel lodge use website, travel agent link, social media, email marketing for announcement of new product and schemes. Marketing and human resource management– marketing promote companies polices in market which attract people to join the organisation. Product and services alone cannot help an organisation to sustain. Travel lodge has clear vision and mission, work ethics and culture which is seen in marketing efforts. HR department of Travel lodge also provide best deal in form of salary, compensation, bonus, motivation, training, facilities and organisation environment. 4
Interrelationships between marketing and other departments within travel lodge Marketing department and human resource department– marketing department cannot work in isolation. It has coordinate activities with other department. Travel lodge's Human resources' department help in define competency and skill requirement according to need of marketing department, provide training to existing sale team for adopt changes, help in assigning job to suitable person, maintain performance. Nice marketing practice improve brand image which attract talent people to join the organisation, marketing team give HR. suggestion and information for training and development program needed.(Feng And et.al., 2015.) Marketing and finance department-travel lodge's finance department provide fund to marketing team also help in cost management, budget, estimation of advertisement expenses, give bases to judge marketing efforts efficiencies in form of sale and cost ratio. Where marketing department provide sale to company or finance department. Not a single function can be done without profit. Hormone y in Relation between two department help in taking right decision on time. Also, impact the efficiency of organisation. For example finance department communicate about expenditure made on sale and marketing and actual money receive from this sale effort. If there is big gap between two, marketing team control and manage their resources and marketing efficiency accordingly. 5
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Comparison of ways that apply to elements of marketing mix. Below table showing the different between McDonald's andTravelodgemarketing mix Element of 7 p'sMcDonald’sTravelodge ProductMcDonald’s has a wide range of food and beverage product like Hamburgers, cheeseburgers, shakes, coffee, salads, desserts and shakes, Happy meal. Product strategy of McDonald’s is unique they are focus on profit maximization and volume sale. In menu of McDonald’s some items are didn't change after the initial changes. Some of its product change seasonally. McDonald’s expanded its outlets globally so several products are developed according to the market demand. Its match the taste of food and beverage with customer demand. There are range of the products Provide by the travel lodge like banquets facilities, conference hall, business centre, spa, gym facility, food and beverage outlets, swimming pool, saloon, souvenir shops etc. there are many products are developed by the travel lodge by the time. Their main preference is guest’s satisfactions so that is their concern area which they have to attain. The competition of hotel industry in the market is on boom now it’s not just a choice to provide a wide range of product to the guest now it is key to survive in market. PriceMcDonald’s has a various range of price techniques of their products, it's also depend on the market situations, basically McDonald’s use two types of technique to sale volume and profit (1) bundle pricing strategy- this strategy shows that a bundle products price is a discounted in compared to individual item its good strategy for sales volume.(2) psychological pricing method- in this strategy product price appear more affordable like - $ 1.99, .99$ etc. Price of the products are depends on the market demand and supply rules, if demand of the product or serviced will high then the price of product goes up, if demand is not much of that product then the price will may reduce, this strategy mainly apply on the perishable product like Room night is a perishable if a room is not sale on the particular night than it will be loss of company (Hamzah and Sutanto 2016.).
PlaceMcDonald’s has a more than 37000 restaurants in over 100 countries. They place selection of the McDonald's is depends on the country McDonald’s has mostly open its restaurants near the crowd place like Malls, main road, markets etc. McDonald's outlets are situated on accessible place where tomers can easily reach. Company also have to maintain the set standards. Travelodge has over 500 hotels in UK and few other hotels in different countries. The place of hotel depend on the which type of hotel is going to open if it's a resort property then it will open near the mountain, lakes or any other peaceful place. Business hotel open in industrial areas. PromotionPromotion relate to the company's presentation in market, there are various strategy which used by the McDonald's to promote its product for examples- social media, TV, newspaper, magazine etc. Promotion ofTravelodge depend on its tour operators, market reputations, social media, travel blogged, magazines, travel websites etc. Travelodgecreate a long term relationship with its guest. PeoplePeople are relate to the employees who are engaged with the McDonald's, approximately there 97000 people work for the McDonald's. In UK 70% outlets owned by the business man and women. Employees of theTravelodge ismore than 15000 from different place of the world. The hotels provide many facilities to their employees because they are the responsible for their business performance. Physical evidencePhysical evidence relate to the physical environment, Ambience, experience of customer, it’s not only impact on customers' perspective of restaurants but also good for the outlets functions. Hotels physical evidence relate to its infrastructure, how employees are providing service to the guests, guest comfort level, guest satisfactions etc. ProcessActivities which performed to achieve the goals of the organizations there are many activities are performed by the McDonald's to deliver their product to the customers. Like waiting time of customers for their order, how staff look after the customer etc. Travelodgeusing numerous business process to provide a good guest services there are transparencies in booking process. Many sources are there which the booking process to check out process convenient to the guests. Differentiate the various business strategy applied by hospitality organization that how to achieve their objectives. Proper utilization of social media-proper use of social media is the best tool of marketing and its allow to reach the present guests as well as paid advertisement on social media 7
like Facebook, Instagram, twitter help to reach the beyond this audience and attract the new guests. It is great strategy follow by the hospitality organizations to achieve their goals(Bowie and et. al., 2016) . Relation with online travel agencies and GDS-online agencies are very important distribution channel. It targets the guest who are not recognized the organizations. GDS allows the travel agent and guest to know about the room status that rooms are available or not. P4 Create a marketing plan which meet with the objectives of the hospitality organizations Executive summary-Travelodge isplanning to launch new premium economy rooms throughout the UK to make it service more professionals. It's providing wide range of facilities with many room amenities. The plan is made to get the business from the mid-class to hiigh class customers, and improve in sales of the hotels Objectives-add new choice room help to bring more business toTravelodge,Nowadays people are savvier with their money. This plan attracts the middle class customers to their hotels and help to attain the company objectives. Objective is to set a specific group of customer, it should be measurable to target the objectives, and achievable for the company on a set time frame. Situational analysis-STRENGTH- help to attract more customers, profit maximize, help to increase in potential customer. WEAKNESS- Need much money to investment, time consuming process. Limited choices being offered to consumers(Stead and Hastings 2018). OPPORTUNITY- add new customers on list, dominant in market with this type of affordable service. THREAT- Competitor may adopt the strategy, increase in taxes, changes in political rules and regulations. Segmentations-its help to target a specific variety of guest group which are meet with the set needs and budget level. Its help to find out the different guests, identify the trends of businesses. Segmentation may be different forTravelodgehotels. Segmentation based on – demographics, psycho graphics,geography, life style, behaviour. Targeting-after the segmentations of guests the next process target the group of guests where the most profits is generates its help the hotels to attract that group which gives more profit on from same available resources. Strategy is set on the basis of criteria size, money, target must be achievable, focus on different benefits. Positioning –after targeting of the particular group guests then ensure that the hotel is on the best possible position of market. Positions consider the strengths and weakness of the organizations. Positioning allow the organizations to highlight the areas where they are best in compare to competitors.Travelodge has positioning to launch the economy premium room with better amenities. Monitoring and controlling-monitoring and controlling is related with operate the property in right manner, its include all the factors that affect the business for example cost control, control of risk etc. Monitoring help to guide hotel workers that how operations are run. Controlling help to set a parameter of activity, budget related concern etc. hotels have different department all the department have their own managers and executive who monitor and control their department.(Massingham and Pomering, 2017). Marketing budget-marketing budget is the estimate amount of the cost that require for the business operations, Travelodge have to set their budget on the basis of size of hotels, employing staff, etc. 8
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Describe Marketing plan with evidence based that applies the marketing mix to meet hospitalityorganization objectives. Travelodge objectives is to earn profit from selling of its product if Travelodge planning to open new property then it is necessary to create a market planning to get a good profit from market. Product of the Travelodge is their room and other services which they provide to its guests. Positioning relate in marketing mix with place of distribution, from there they operate the business. It is important for Travelodge to make good analysis of situation what are the Strengths, weaknesses, opportunity and threat. Travelodge have to analysis the different segmentation of the market they have to select a segment which have to target. Mostly that type of segments are on priority who can generates the best profit. Best segment decide that which type of hotels has to open in that place it could be resort, business class or leisure hotel.In marketing plan the segmentation is important factor for Travellodge it is set the product price on the basis of behaviuor, geographical location of property, lifestyle etc.Launching of the new project need a good monitoring and guidance, they have to work on set a budget, company policies, control risk, control quality etc. Monitoring and controlling process track, review and progress of the projectMonitoring and controling relate with the people who are working the organizations. Explain the marketing plan with use of 7ps and monitoring and evaluations to achieve the marketing objectives. Business objectivesMarketing mix & strategy TacticsMonitoring and evaluation Customer satisfactionIn customer satisfactions product and price are the strategy which affect most this factor. Travelodge haveto focus on its product's quality, extra benefits and set right price for right product. Provide good service which meet the guests expectations and satisfied them(Haile and Krupka, 2016). Collect the review from websites, feedback etc. Profit maximizationProfit maximization is main aim for hotel price, promotion, and place help to maximize the profit. Promotion help to promote the hotel, place decide the price. Extra facilities provide the business good option to earn profit, Travelodgeplan to start premium economy room which is the best tactics. Monitored by performance of hotel, financial statements, previous data etc. Sale volumeCompanies have objectives to sale their product in bulk. Promotion and quality of product help to sale Discount on group booking, offer new products, make good relation with online agencies, travel Revenue data, companies finance statement etc. 9
volume.operators etc. CONCLUSION It has been concluded from the report that marketing plays an important role to achieve organization’s objectives. Study has also concluded that there is great significance of interrelationship between marketingand different department relationship in company. Furtherer the report summarizes marketing mix is an important part of promotional plan without marketing plan objectives cannot be achievable. 10
REFERENCES Books and Journals Awan, H.M. And et.al., 2015. Internal marketing and customer loyalty: A dyadic analysis. Journal of Service Science and Management, 8(02), p.216. Baker, M.J., 2016. What is marketing?. InThe Marketing Book(pp. 25-42). Routledge. Feng, H. And et.al., 2015. Marketing department power and firm performance.Journal of Marketing.79(5).pp.1-20. Wirtz, J., Tuzovic, S. and G. Kuppelwieser, V., 2014. The role of marketing in today's enterprises. Journal of Service Management.25(2). pp.171-194. Bowie, D. and et. al., 2016.Hospitality marketing. Routledge. Hamzah, S. B. and Sutanto, J. E., 2016. The Role of Marketing Mix (7P) for Consumer Buying Decision Pastry Cake in Malang City. Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance right. InSocial Marketing(pp. 29-43). Psychology Press. Massingham, P. R. and Pomering, A. A., 2017. Introducing Knowledge Management to the Marketing Mix. Haile, M. and Krupka, J., 2016. Fuzzy evaluation of SWOT analysis.International Journal of Supply Chain Management.5(3). pp.172-179. 11