Marketing in Hospitality Report

This report examines the principles of marketing in the hospitality industry, using Chez Bruce and Thomas Cook Travel as examples. It covers concepts like market segmentation, the marketing mix, pricing strategies, promotional efforts, and the importance of market research. The report also evaluates the implementation of a marketing plan.

MARKETING IN
HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Concepts of marketing..........................................................................................................1
1.2 Impact of the marketing environment...................................................................................2
1.3 Relevance of consumer market.............................................................................................3
1.4 Rationale for developing different market segments............................................................4
TASK 2 ...........................................................................................................................................4
2.1 Importance of the components of marketing mix.................................................................4
2.2 Analyse pricing strategies and policies.................................................................................6
TASK 3 ...........................................................................................................................................6
3.1 Role of the promotional mix.................................................................................................6
3.3 Role of sales promotion and public relations play in
promotional efforts.....................................................................................................................7
4.1 Relevance of market research to services industry
operations...................................................................................................................................8
TASK 4............................................................................................................................................8
Covered in Poster........................................................................................................................8
4.2 Market research for an appropriate product or service.........................................................8
4.3 Suitability of different media for marketing.........................................................................9
4.4 Evaluate the implementation of the marketing plan.............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The marketing in hospitality can be described as such effective activities that helps to
boost up revenues in this industry. It is necessary to carrying out more appropriate promotional
events to make people aware about quality of products or services and improve image of brand.
Marketing is an essential procedure for every company which is beneficial to attract new
customers and improve profitability (Tsiotsou and Goldsmith, 2012). This report is based on
Chez Bruce which was founded in around 1995 to provide food products for completing
requirements of customers in an appropriate manner. It also includes discussion about several
concepts of market and impact of marketing environment on industry. This assignment will
considered the given case study of Thomas Cook Travel which is described below.
TASK 1
1.1 Concepts of marketing
Marketing refers to an effective tasks of every company in which they conduct several
activities that provide support to generate, maintain and achieve satisfaction of customer. In case
of Chez Bruce, they make people aware about their quality of services through better
photography of restaurant view. Hence, it will help to attract new clients along with retaining
current ones to get desired profitability.
Product concept: This refers that a better quality of product is expected by customers at
reasonable price that can be afforded by them easily. It is necessary to use an effective technique
to manufacture innovative featured goods in low cost and provide required benefits to people
(Line and Runyan, 2012).
Selling concept: The concept of selling is all about that fact which indicates that effective
promotion is required to make consumers convinced so that they will purchase particular
product.
Marketing concept: This concept includes that marketing activities helps to determine
actual requirements of customers which facilitate to fulfil them in an appropriate manner.
Societal concept: The societal concept states about considering needs or wants of client
in correct way along putting several efforts for welfare of society.
For example, Chez Bruce have to implement certain innovative techniques to fulfil actual
needs and fulfil societal aspects as well.
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1.2 Impact of the marketing environment
The marketing environment refers to all those micro and macro factors that impacts on
several related procedures or activities (Leung and et. al., 2013). It is necessary for markets to
focus on these components while preparing effective strategies to conduct required events in
proper way. In case of Chez Bruce, they must concentrate on such elements that effects
productivity of restaurant on regular basis to earn better profits.
(Source: Difference Between Micro and Macro Environment, 2015)
Micro factors Suppliers: The power of suppliers impacts on productivity of customers while they can
only supply required goods or raw material to company. Thus, they due to monopoly of
suppliers they can control success and profitability of business (Dev, Buschman and
Bowen, 2010). Customers: This includes criteria of completing exact needs and demands of customers
because their preferences will ensure better profits for company.
 Competitors: Implementation of effective policies will improve profits share of
competitive firms and also responsible for reducing number customers that hampers
success of business.
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Illustration 1: Difference Between Micro and Macro
Environment, 2015

Macro factors Political: This can be described as political status of a particular geographical that
impacts on regular marketing procedures of company. Economic: It includes high tax rates, inflation, growth etc. that impacts on organisational
manufacturing process as well as customer's decision making of buying specific goods
(Yoo and Bai, 2013). Social: This involves to consider several societal or cultural norms and ensure that goods
should not be harmful to people. It directly impacts on success of business and reduce
profit share rapidly.
 Technological: Several technological software or equipments are helpful to conduct
different functions along with marketing to generate desired profitability.
1.3 Relevance of consumer market
Consumer’s “Black-Box”: The concept of black box model refers that several factors
that impacts on buying behaviour of an consumers and also considers reaction on stimuli as well
as environmental forces. It includes those elements which influence the purchasing response of
clients after analysing several environmental factors like products, price, place, promotion,
culture, technology, social and so on.
In case of Chez Bruce, the marketer of restaurants have to understand desired needs,
wants and demands after analysis of certain elements that impacts on consumer behaviour. It is
important determine those components that influence buying response of clients such as cultural,
social, personal and psychological characteristics (Horner and Swarbrooke, 2012). Hence,
marketers have to aware about effects of these factors to design more appropriate product as well
as promotional activities to achieve desired response of people.
Advantages Limitations
 Appraisal of consumer behaviour helps
to frame an appropriate marketing
strategy.
 It will provide support to develop new
products in proper manner.
 The consumers exploited due to
boosting up sales by promoting
campaigns or schemes.
 Sometimes, marketers take full
advantage of weakness of customers.
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 Marketing segmentation can be done
properly and facilitate reorientation of
packaging.
 In several cases, the claims given by
firm are exaggerated and benefits to
seller not to buyer.
1.4 Rationale for developing different market segments
Target marketing and Positioning: This can be described as to break market into
segments then focus on marketing efforts considering those clients whose requirements closely
relevant to products or service (Nunkoo, Gursoy and Ramkissoon, 2013). It includes criteria of
Chez Bruce to prepare an effective strategy to boost up number of sales, attract new customers
and build a successful business. The positioning of particular brand is necessarily focussed to
establish an affective goodwill of company in market. It will help to occupies place in minds of
customers to get differentiated from products or competitive firms. Chez Bruce follow policy of
an attractive photography of it's products or serving styles to gain new clients. Market
segmentation is essential to be done on the basis of different factors that are given below:
Geographic: This refers to market segmentation on basis of different locations depending
upon scope of business in particular area. It includes neighbourhood, postal/zip code, area code,
city, province/state, region and country.
Demographic: This kind of segmentation can be defined as demographic grouping which
includes measurable statistics that includes certain factors such as gender, age, income level,
marital status, education, race and religion.
Behavioural: The term behavioural segmentation includes their choice of decision
making as per spending, consumption, life style, usage and desired benefits (Williams, 2012).
Physiographic: This can be explained as to classify target market as per socio-economic
class, personality, lifestyle preference and high status of customers. It includes certain classes
like upper-middle, middle, lower middle, skilled working, working, lowest level.
TASK 2
2.1 Importance of the components of marketing mix
Marketing mix refers to group of marketing tools that provide support to achieve desired
objectives of an organisation. It includes several factors such as product, price, place and
promotion. All these elements should be focussed by Thomas Cook Travel agency so that they
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can fulfil requirements of clients in proper way along with earning desirable goals of company.
A brief discussing about components of marketing mix in respect of organisation is given below:
Component of Marketing Mix Related Application In Thomas
Cook Travel
Product  The services provided by this company are tour
operators, charter airlines, scheduled-airline
Condor and Hotels4u, a booking website. It
includes several facilities like luxury
destinations, flights, foreign exchange service,
holiday packages, hotels, cruise, travel facilities,
insurance etc.
Pricing strategy used  They have a policy to to put effective efforts to
provide best possible holiday packages at
reasonable rates (Ayeh and et. al., 2012).
Place or Channel of distribution  This company offers tours at global level in
several countries like United Kingdom, Egypt,
Greece, Caribbean, Corfu, Portugal, India,
Turkey, United States, Spain and Italy. Thomas
Cook has wide spread distribution of channels
including 32722 capable staff members, 2926
stores and around 97 air-crafts to serve
approximately 19.1 million customers on
annually.
Promotional elements recommended  Thomas Cook has an efficient strategy to
carrying out promotional activities on electronic
media channels like television, radio, billboards
at popular places, newspapers and travel
magazines. They also organise campaigns with
help of social media portals through own
website, Facebook, Twitter, Instagram,
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YouTube and travel blogs.
2.2 Analyse pricing strategies and policies
The pricing strategy can be described as to make an appropriate decision to decide price
of particular product or services which should be given by customers while purchasing goods.
Price includes cost of manufacturing and profit margin because every firm produce goods to
fulfil desires of customers along with earning profits as well (Šerić, Gil-Saura and Ruiz-Molina,
2014). Thomas Cook follow the criteria of preparing required products or services at affordable
rates so that each client can buy them easily to complete their needs properly. Some of pricing
strategics of Thomas cook which helps to sustain is given below:
 This company move to single pricing across high street and online channels that helps to
attract more customers and sustain an appropriate position at market place.
 They has adopted mid-premium pricing policy which facilitate top grab greater market
share to remain strong competitor in tourism industry.
 This firm accept strategy of providing better packages at affordable rates to people.
TASK 3
3.1 Role of the promotional mix
The promotional mix can be defined as set of tools and techniques that are used for
promotion for particular product. This factor involves several activities like public relations,
personal selling, sponsorship, advertisements, direct marketing and sales promotion. These tools
provide support to communicate about product to target market and achieve gaols or objectives
of an organisation. Chez Bruce can use several techniques to complete their targets of sales to
earn profits. Some of promotional tools are given below:
Public relations: This refers to render information about product through third party by
indirect manner to promote specific product. It is all about to conduct publicity of goods or
services to make people aware about beneficial features and better quality.
Sponsorship: It is kind of event in which promotion will done through taking
sponsorship of an contest and promote particular brand by the same activity.
Personal
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selling: The term personal selling includes to make people convinced or help to make decision
of purchasing goods through effective oral presentation, face -to-face conversation etc.
Advertising: It is kind of conducting promotional activity to render knowledge of about
product by using several factors like posters, brochures, television, radio, catalogues etc.
Direct Marketing: This refers to such events that helps to communicate with customers
directly through e-mails, messaging and fliers.
Sales Promotion: The term sales promotion includes several kinds of methods including
marketing communication to boost up consumer demand, regulate market preference and
improve product availability.
3.3 Role of sales promotion and public relations play in
promotional efforts
The promotional efforts includes several activities or procedures that are essential to be
carried out by every organisation in order to promote product fir its' success. It has main motive
to provide information about quality of goods and improve number of customers to achieve
better profits (Jauhari and Bharwani, 2017). Chez Bruce have an effective strategy to conduct
various promotional activities by carrying out attractive photography of restaurant and it's
attractive serving techniques. It will help to make people aware about better features of services
that influence purchasing behaviour of customers which support to gain desired profitability.
Promotional activities includes sales promotion and public relations that has their own
importance which is given below:
Sales promotion: The term sales promotion is all about to boost up purchase or sales of
specific service by certain events like contests, coupons, displays, trade shows, samples,
premiums etc.
Importance of sales promotion for certain people
Producer Sales promotion help producers to make people aware about better designing
and features of product.
Intermediaries The intermediaries can generate better amount of income by this method of
promotion on regular basis.
Consumers Customers gain an appropriate information about specific service which
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support them to make correct decision of purchasing.
Public relations: This can be explained as to conduct better communication with public
to establish an appropriate relation with customers that facilitate to promote product properly
(Dominici and Guzzo, 2010). Better relations with clients directly impacts positively on profit
share of Chez Bruce. There are several ways to maintain effective public relations such as news,
speeches, special events, mobile marketing, written matter and audiovisual materials.
4.1 Relevance of market research to services industry
operations
The market research can be described as an analysis of various factors which impact on
operational activities of an organisation. It includes to determine actual requirements of
customers and evaluate impacts of changing trends of market that influence productivity of Chez
Bruce. Several significances of carrying out an effective market research are as follows:
 It is helpful to determine problems and opportunities in market which impacts on
profitability of Chez Bruce.
 The results of market search programs provide help to prepare more effective strategies
or policies to get desired benefits.
 It render support to identify actual needs, wants and demands of clients which facilitate to
fulfil them in proper way.
Benefits of market research
 It will help to conduct an accurate management by proper planning as per accurate
information about changing needs and demands of clients (Mok, Sparks and Kadampully,
2013).
 Various operational procedures or tasks can be completed in an appropriate manner to
fulfil demands of consumers along with satisfaction.
 It is helpful to conduct several promotional activities to attract more customers towards
food items of Chez Bruce to earn better profits.
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TASK 4
Covered in Poster
4.2 Market research for an appropriate product or service
The market research should be conduct effectively to determine an actual demands of
customers for new holiday package which is designed by Thomas Cook for those people who are
not able to afford expensive services.
Primary method: This includes to use several methods to conduct interviews, surveys,
questionnaires, focus groups and visits of competitive locations to know actual scope for fresh
concept which is going to be introduced.
Secondary method: The secondary technique includes to study already compiled,
gathered, organised and published by others to conclude result.
Questionnaire
 Are you satisfied with this product?
 Is the price for holiday package is appropriate or not?
 Did you find any demerits in the holiday package?
 What changes you want in this holiday package?
 DO you have any query about services?
4.3 Suitability of different media for marketing
There are various kinds of media methods which are used to carrying out an effective
marketing process as per suitability of specific product or service. Some of them are given
below:
Product or service Suitable media
Hotel facilities  Social media
Travelling airlines  Television, radio and magazines
Holiday packages  E-mails and messaging
Foreign exchange service  Advertisements
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4.4 Evaluate the implementation of the marketing plan
The market plan can be described as to make an appropriate strategies or policies to
carrying out an effective marketing process to gain desired outcomes.
Completeness of plan: This can be described as to make sure about completeness of
planning which is mandatory to implement an appropriate marketing plan to attain desired
results. It is essential to carrying out a procedure in complete manner to attain better outcomes.
Personal judgement: The term personal judgement can be explained as to personally
observe, analyse and evaluate the plan to determine threats or issues to solve them immediately
to avoid possible problem at the time of implementation.
Clear strategy: The market plan includes several strategies or policies which provide
support to conduct whole process in correct way to attain desired goals successfully.
CONCLUSION
The above report had concluded that marketing is all about to carrying out suitable
promotional activities in more effective as well as efficient manner. It will help to boost up
regular productivity and profitability of hospitality industry. Different types of market
segmentation is done on basis of various suitable factors. These tools provide support to
communicate about product to target market and achieve gaols or objectives of an organisation.
The advertising campaigns refers to an activity which includes a set of advertisement messages
which has single motive to share particular idea or thought with customers.
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REFERENCES
Books and Journals
Tsiotsou, R. H. and Goldsmith, R. E., 2012. Strategic marketing in tourism services. Emerald
Group Publishing.
Line, N. D. and Runyan, R. C., 2012. Hospitality marketing research: Recent trends and future
directions. International Journal of Hospitality Management. 31(2). pp.477-488.
Leung, D and et. al., 2013. Social media in tourism and hospitality: A literature review. Journal
of travel & tourism marketing. 30(1-2). pp.3-22.
Dev, C. S., Buschman, J. D. and Bowen, J. T., 2010. Hospitality marketing: A retrospective
analysis (1960-2010) and predictions (2010-2020). Cornell Hospitality Quarterly. 51(4).
pp.459-469.
Yoo, M. and Bai, B., 2013. Customer loyalty marketing research: A comparative approach
between hospitality and business journals. International Journal of Hospitality
Management. 33. pp.166-177.
Horner, S. and Swarbrooke, J., 2012. Leisure marketing. Routledge.
Nunkoo, R., Gursoy, D. and Ramkissoon, H., 2013. Developments in hospitality marketing and
management: Social network analysis and research themes. Journal of Hospitality
Marketing & Management. 22(3). pp.269-288.
Williams, A., 2012. Understanding the hospitality consumer. Routledge.
Ayeh, J. K and et. al., 2012. Perceptions and strategies of hospitality and tourism practitioners
on social media: An exploratory study (pp. 1-12). na.
Šerić, M., Gil-Saura, I. and Ruiz-Molina, M. E., 2014. How can integrated marketing
communications and advanced technology influence the creation of customer-based
brand equity? Evidence from the hospitality industry. International Journal of
Hospitality Management. 39. pp.144-156.
Jauhari, V. and Bharwani, S., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality Marketing
and Consumer Behavior (pp. 159-185). Apple Academic Press.
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