Customer Satisfaction and Loyalty in Marketing

This assignment delves into the critical aspect of customer satisfaction and loyalty in marketing. It requires a comprehensive analysis of customer loyalty using data mining techniques, drawing insights from studies like 'The effects of relationship quality and switching barriers on customer loyalty' by Liu et al., and 'Relationship marketing and customer loyalty: Evidence from the Ghanaian luxury hotel industry' by Narteh et al. The assignment should also consider social effects on customer retention, as discussed in 'Social effects on customer retention' by Nitzan and Libai.

MARKETING AND
CUSTOMER
RETENTION

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Concepts and principles of marketing in Alperton Intercontinental hotel.............................1
2. Theoretical framework of the marketing mix, including the extended marketing mix..........3
3. Relationship of marketing with customer satisfaction, loyalty and guest programmes..........6
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Customer retention can be simply defined as the activities and actions corporations and
enterprises that are taken to minimise the number of consumer defections. The main motive of
these users retention activities is to aid various organisations in retaining as many users as
possible frequently via providing or taking consumers loyalty as well as brand loyalty initiatives.
It is very important to retrieve or remember that retention of customers begins or starts with the
first contact a user has with a venture and continues throughout the overall life time of the
relationship. There are various benefits of the customer retention (Hollebeek, 2011). While large
number of corporations conventionally spend maximum amount of revenue on consumer
acquisition because they think it as a instant and effectual way of enhancing money. On the
contrary, customer retention often is more faster and on average costs up to six times lesser in
comparison to consumer acquisition. Marketing or selling to those users with whom company
already have a relationship is frequently more effectual way of increasing revenue as ventures do
not require to draw attention, educate and made new ones. The present report is based on the
marketing and customer retention of Alperton Intercontinental hotel which is a five star property
which had built recently. In this project, various principles and ideas of marketing such as
concepts of production, marketing, selling, product, etc. are described.
1. Concepts and principles of marketing in Alperton Intercontinental hotel
Marketing is very important factor in executing any type of businesses. Even though it is
proved to be an essential element which shapes the success of any hotel unit, yet it is a process
which is frequently taken for granted. Hospitality marketing is the phenomenon for receiving
products and services out to the customers. There are certain philosophies of hospitality
marketing management that are explained below:
 The Production Concept : This is one of the oldest concepts in business of hotel
industry. It states that users would prefer or favour those products that are widely present
and are less expensive in nature. Managers of Alperton Intercontinental hotel should
focus more on this concept in order to achieve high production efficiency, minimum
costing and distribution of goods in large number of users or in masses (Gray and Wert‐
Gray, 2012). Here, they expect that customers are principally concerned or taking interest
in product availableness and lower prices. These attitude or orientation would make sense
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in developing nations where the users are showing more interest or their curiosity in
acquiring the product in relation to its qualities. Venture using this orientation are running
a high risk of concentrating too broadly on their own trading operations and are losing
sight of the main or actual aims and objectives (Edward and Sahadev, 2011). Most times;
this production concepts could lead to myopia of marketing. Management concentrate
here on increasing as well as improving the production and supplying efficiency.
 The product Concept : This concept tells that customers would favour or prefer those
goods that provides the best quality, performance and innovational characteristics.
Managers of Alperton Intercontinental hotel who are focusing on this orientation should
concentrate more on creating best quality goods or services and upgrading them time to
time. They presume that purchasers would look up to well made goods and can evaluate
its features and performance. However, managers who are adopting this idea are some
times seen or caught up in a love affair with their goods and as a result, they forget the
real needs and requirements of the market. Here management may commit the “better-
mousetrap” fallacy as they consider that a better-mousetrap would lead consumers to beat
a way to its door.
 The Selling Concept : This is other famous concept of business. It states that , if
customers and businesses are left alone would normally do not purchase enough of the
selling products of the venture. Therefore, the corporation have to adopt an aggressive
selling and publicity efforts. This orientation expects that users typically show or display
purchasing inertia and have to coaxed into buying (Christopher, Payne and Ballantyne,
2013). It also presumes that the company has a whole battery of effectual selling and
promotional instruments in order to stimulate more purchasing. Large number of
organisations adopt this selling concepts when they consist of overcapacity. The main
motto of the organisation is to sell what they have manufactured instead of making what
are the demands of the market.
 The Marketing Concept : This is one of the business philosophy that challenges all the
above mentioned three concepts of marketing. The main or central dogma crystallised in
the year of 1950. It states that the main aim of acquiring organisational goals or the
ambitions of the selling venture is to being more efficacious in comparison to its
competitors in the job of manufacturing, supplying and transferring or conveying
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customer value to its selected or expected users. This marketing pillar lies on four pillars
that are user's needs, target market, profitability and merged marketing.
 The Social marketing concept : This orientation states that the main job or task of the
venture is to find out the requirements or demands, wishes and interests of the expected
or targeted market. Delivering the desired or wished satisfactions more efficaciously and
efficiently in relation to the competitors is another important task of the firm (Chen,
2012). In addition, it tells that this overall activities have to be carried on in a way that
would preserves or increases the customer's and the society's well being. This concepts
rises some of the questions like whether the concept of marketing is a proper philosophy
in the time of environmental declination, shortage of resources, high growth of
population, increased poverty and hunger in world and the unnoticed social services.
2. Theoretical framework of the marketing mix, including the extended marketing mix
The marketing mix can be simply defined as a tool or instrument which is utilised by
businesses as well as marketers in order to determine a product or brand offering. E. Jerome Mc
Carthy has created four Ps associated with the marketing mix in the year of 1960. Alperton
Intercontinental hotel should focus on such marketing mix that are described below:
 Product : It states that product should be made according to the demands of the
consumers or as per their wishes. It should work to meet the desires of users. Here
organisation should manufacture or produce best quality products and provide luxurious
services to their clients. People desires an attractive hotel which should provide all the
basic needs of them such as accommodation, food arrangements, extra or additional
facilities like beauty parlour for both men and women, playing facilities for children,
Gym, Yoga classes, Bars, restaurants, etc. Therefore, company should focus more on
providing these services as this will attract large number of travellers. The another factor
is safety. This is the main element that is desired by each and every user (Cardy and
Lengnick-Hall, 2011). So, venture should spend more money on the safety purposes.
Such as they should hire guards for their hotel. They can put the 24 hours camera
facilities so that each and every activity that occurs in hotel should be captured. And as a
result, if any unwanted phenomenon occur, they can catch that and solved. Cleanliness is
also a factor that is important as people choose a clean and healthy environment for their
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holidays so that they do not get ill. So, owner of hotel should focus also on cleanliness
and maintenance of the hotel and their surroundings.
 Place : It states that products or services should be available easily to the targeted
consumers so the venture should build their shops or offices in those places that are likely
to be nearest to the people. Organisation should make their hotels around those places
which are considered as more famous in the eyes of people that is where customers often
roam or travel for the purpose of entertainment. As a result, they would select their hotels
for staying in their vacations. They can provide their hospitality service also through
providing online shopping. People easily plan their vacation trip and book their hotels for
that. Company should make an attractive websites offering hospitality services. This as a
result attract large number of travellers. This also expends their business throughout the
world and can earn large sum of revenue.
 Price : The product or services should always be seen as symbolising good value for the
revenue. Although, this does not mean that organisation should provide their services or
products at minimum prices and would suffer from looses (Ashley and et. al., 2011). It
represents that company should give their services at affordable prices so that each and
every sections of the society would take advantages of their services. If the venture would
provide best quality services as per the needs of their consumers, then they usually be
happy to pay a little more for their services that proves really well for them. Additionally,
organisation should make their pricing by examining the pricing of their challengers so
that they can take competitive advantages (How marketing mix affects pricing decisions?,
2017). If they offer their services at a lower prices in relation to their competitors than
this as a result draw attention of large number of travellers as every one wants cheap and
best services.
 Promotion : In order to make their services or products in the eyes of customers,
company take use of several promotional tools like advertising, personal selling, social
media like Face book, What's app, twitter, You tube, sales promotion, etc. by taking use
of such communication tools, organisation easily send messages to their clients that how
luxurious and best quality services are they offering (Arnold, Fang and Palmatier, 2011).
So, Alperton Intercontinental Hotel should make effective or attractive promotional
activities in order to attract large number of travellers.
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(Source : Hitesh Bhasin, 2016)
Some of the other extended marketings mix are also explained below:
 People : Each and every firms are depending on the people who are responsible to run
them from the front line sales members to the managing directors. So, organisation
should hire appropriate people because they are the only one who made contribution in
manufacturing the services and maintaining their brand image (Angelova and Zekiri,
2011). Company can take use of human resource management for the purpose of hiring
or recruiting right people for the right job so that corporation would upgrade their
performance and increase their turn over.
 Processes : This states to the distribution channels via which firm can supply their
services to the large number of users effectively on the allocated time (Armstrong and et.
al., 2015. So the organisation should deliver their services to the presented consumers as
per they are paying for.
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Illustration 1: How marketing mix affects
pricing decisions?

 Physical evidence : Almost all the services involves some physical elements even if the
high volume of what the users are paying for is in- tangible. Here, venture should
provide effective services to their clients by taking care of their feedbacks.
Alperton Intercontinental Hotel should take care of two more elements that are marketing
segmentation as well targeting and positioning. This is described below:
 Marketing segmentation : This refers to the division of the broad customers or
business market as per the people are living there. This generally consist of targeted
users that are being sub groups having the same features. Organization should divide
their broad consumers as per the social sectors like rich, medium, poor people. They
should provide their services as per their adorableness or affordability.
 Targeting and positioning : Company should focus on the expected users and
provide services as per their demands. They should take care of all the wishes of their
potential customers in order to make long term relationship with that (Nitzan and
Libai, 2011).
3. Relationship of marketing with customer satisfaction, loyalty and guest programmes
Intercontinental Hotels & Resorts are having nearby 180 hotels around 60 countries across the
world. In last 70 years, the its brand is one of the major luxury hotel and resort brands in world.
Their marketing strategy is very strong as they focusses on high-quality growth and
strengthening diverse function of specialized brands, creating healthy guest relationships, and
making revenue to hotels with low cost (Sarwar, Abbasi and Pervaiz, 2012). Another strategy
is great technology and suggestion to third-party possessor is extremely contending and drives
fantastic returns.
Relation between marketing and customer satisfaction-
 Builds consumer loyalty:- Satisfaction is the best way to build loyalty between
organisation and customers. Marketing helps in improving brand image and creates
goodwill of company. It includes attractive ways to grab more attention of customers and
these are designed in the way so as to give more satisfaction to users.
 Design products as per customer taste:- Product designing is an important activity of
marketing process. Before starting this, it is essential to identify customer,s tastes and
preferences. It includes analysing their demands, expectations and preferences from
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market survey. On the basis of that study designing is to be done so that more satisfaction
can be derived.
 Identification of target market:- It includes identifying the target market where more
consumers will be interested in services provided by the enterprise. This will facilitate in
making marketing strategies more focussed and effective towards the target groups. As a
result end users will be more happy (Peck and et. al., 2013).
 Seasonal product:- Hotel industry should focus on seasonal modification of its services
so that consumers will get more pleasure after delivery of services. For this, marketing
strategies need to be changed as per seasonal requirements. New and attractive offers are
to be given to enhance the sales.
 Effective distribution channel:- It is essential to have a strong delivery channel of
services so that services will reach properly to users. Barriers in distribution of services is
to be avoided. Efficient and skilled intermediaries are to be involved to provide quality
services to customers. Delay in services should be evicted and this will help in giving
more satisfaction to clients.
 Pricing strategy:- For more satisfied customers, pricing strategy should be made by
keeping every segment of end users. It includes providing services for all income class
people. There should be range in pricing and it will help in satisfying all customers
whether they are willing to pay less or more.
 Point of differentiation:- There is need for some uniqueness in manner of service
providing which will make it different from the competitors and more customers gets
attracted towards it and this difference will derive more pleasure out of them.
 It increases customer lifetime value:- Effective marketing will increase customer
traffic and make them repurchase the services. This will result in enhancing customers
for long time.
Reduces negative word of mouth:-Customer satisfaction is closely joined to income and repeat
purchases. Negative publicity is one thing to suffer a client because they were unhappy. So,
marketing will help in reducing this bad impact and facilitate satisfaction.
Alperton hotel of intercontinental group focussed on their marketing strategy by
considering accurate information and data as well as tried to understand the taste or preferences
of entire society. Along with this, they can also try to make plans or policies as per gathered data
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for removing barriers which influence their revenue. In fact, this group of hospitality industry
believes that customer are god for them and always make strategies for satisfying them as well as
implement frequent guest programmes for capturing their minds. Apart from this they also come
up with various loyalty programmes which are classified into number of ways. These are
explained as follows:-
 Frequency of stays:- According to this factor, an organization may identified trust of
guest as per their staying frequency for example; if Mr. X is preferring same hotel again
and again then it automatically increase their trust towards services of hotel. Thus, it is
essential for manager of organization to serve their customer in an appropriate manner by
fulfilling their demand in a given time frame or as soon as possible.
 Methods of using loyalty programmes:- Apart from above component, there are other
techniques are available which is used by hotel industry for attracting their customer and
tries to satisfied them (Sashi, 2012). For example;-
1. Conducting competition between different clients and award them with bronze or
silver cards after winning it. Thus it automatically attarct the society towards their
company.
2. Additional benefits.
3. Welcome drinks on arrival.
4. Regards and gifts.
5. Instant services without wasting much time.
Hence, it has been observed that marketing team of refereed association trying to gain
maximum attention of customers by training their employees how to convince them with
effective communication process. In fact before dealing with consumers, managers of hotel
industry requires to train their employees in an appropriate which is explained as follows:-
 Implement training and personality enhancement sessions for improving the skills of
talent of employees performing at workplace.
 Teach them how to convince customers by interacting them in an effective way.
 Make healthy and friendly environment for attracting foreign as well as domestic clients
towards their different policies.
All these above thing is essential just to enhance the learning of employees because they
are liable to deal with different clients in an appropriate manner (Taleghani Gilaninia and
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Mousavian, 2011). In fact most of the customers are very curious to know something new or
wanted to experience different things in their life. Thus, manager of hotel is responsible to
implement various things for satisfying their customers or to earn maximum benefits. Therefore,
various additional things going to added by company for their guest are explained below:- Advanced technique of payment :- Initial benefit which is added by enterprise is modern
method of transactions or paying advanced due to emergence of number equipments for
example; internet source, credit cards, debit cards, Paytm etc. This function plays a major
role in minimizing process of payment which safeguard the time period of entire
association as well as customers. Seasonal off or discounts:- Sometime higher authority of an organization offers
discounts on actual price because of festival, peak season, due to held of sports
programmes etc. Apart from this some personal reasons are also there due to which
company may offer special offers like; anniversary of an organization, special occasions
for entrepreneur, appraisal sessions, high turnover, achievement of set objectives in a
minimum time period ( Trainor and et. al., 2011). All these are few major reasons which
enforce or motivate managing director of an organization to introduce special discounts
or offers. Gifts and surprise:- Provides special gifts or instant surprises on some special occasions
because it plays a major role in capturing attention of millions of customers.
 Complementary stays:- According to this function an organization may offers additional
benefits because of few personal reasons.
However, major reason behind offering these extra benefits are detained as follows:-
 Capturing minds of domestic as well as foreign clients.
 For increasing retention of customers and tries to satisfied their needs or wants by
fulfilling their demand as soon as possible.
 One of the major objectives behind these policies are to maximize their turnover as
compare to their competitors which are emerges at a marketplace.
 Wanted to establish their hotel image or goodwill at international market by considering
relevant facts and figures or essential factors which have a greater influence development
of entire association.
 To defeat their competitors by coming up with different or unique plans or strategies.
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Instead of all these above points it has been analysed that Alperton hotel of
intercontinental group is trying to make effective marketing strategies by considering taste or
preferences of entire society for generating maximum revenue in a minimum time period
(Wilson and et. al., 2012). Their main objective is to satisfied their customers with qualitative
goods or on time services which attract number of clients. Basically major role which is played
by manger of hospitality industry is to pay full attention on consumer demand or choice by
considering recent trends by satisfying their customers. Apart from all this, one of foremost
motive of hospitality sector is to gain trust or loyalty of customers by focussing on their choice.
Hence, effective marketing plans and policies plays a major role in increasing the sales of
entire association by using or adopting numerous of promotional strategies with the help of
accurate information and data.
CONCLUSION
From the above based report, it can be concluded that marketing and customer retention
is nothing but making the good relationship with the potential consumers so that extra revenue
as well as time do not get wasted in making promotional activities. This can be done by
providing best quality products and services to the people by the Alperton Intercontinental
Hotel. Here the marking mix like product, price, place, promotion, etc. are described. The
different philosophies of the marketing are also explained like production concepts, product
concepts, etc.
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Online
How marketing mix affects pricing decisions?. 2017. [Online]. Available through :
<https://www.marketing91.com/marketing-mix-affects-pricing-decisions/>. Accessed on 2nd
November 2017.
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