Marketing and Customer Retention in Hospitality Industry

This report discusses the use of marketing mix in marketing strategies of organizations, analyzes the characteristics of the organization's relationship marketing program, and explores its success or failure as a customer retention tool. It focuses on Starwood Hotels and resorts worldwide and their preferred guest program.

Marketing and customer
retention in hospitality industry

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Use of marketing mix in marketing strategies of organisation...............................................3
Analyse the characteristics of the organisation’s relationship marketing programme and
explain its success or failure as a customer retention tool with reasons................................5
Strategy for the development of loyalty programme..............................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term customer retention refers to the action, activities and strategies of an
organisation that are formulated and implemented for reducing number of customer defection.
The goal of customer retention programmes is to aids organisation for retaining more number of
customers, often with enhancement in brand and customer loyalty initiatives. This report is
written from perspective of Starwood Hotels and resorts worldwide and it is one of the largest
organisations which is owned, franchised and operate a large number of hotels. Along with this
Starwood preferred guest programme is also formulated by management to retain customer for a
lifetime or longer period (Allan, 2016). Moreover, this report highlights use of marketing mix on
marketing strategy of hotel and the characteristic of organisation’s relationship programme to
utilise it as a customer retention tool.
TASK
Use of marketing mix in marketing strategies of organisation
Marketing is one of the most important departments of a hospitality organisation and it
relates with tactics, actions and initiative that promote business activities in market. In the
context of Starwood marketing is more essential because it aids an organisation to obtain better
results by performing all work according to customer requirements. Marketing mix is an
effective strategy and this is used by management for performing all work according to decided
strategy and methods. Starwood guest programme is implemented by management by use of
marketing mix. Extended marketing mix in context of Starwood is discussed as below:
 Starwood Hotel price/pricing strategy- The price of Starwood hotel follow the policies,
rules and regulation that keep lowest prices of services and in return they offer more
benefits and value to persons or buyer as compare to competitive organisation. Within the
context Starwood preferred guest program low price and great service aids to gain more
loyalty from customers (Avery, Dev and Stroock, 2018). This results that most consumer
stick with customers programmer of Starwood and it offer high quality service as a part of
marketing mix pricing strategy. It define that Starwood is also a part of Marriot group so
earned point also redeem later in company hotels. Therefore, it works as an effective part
for organisation to obtain better position in market.

 Starwood hotel place and distribution strategy- Starwood is a Connecticut based
organisation and it operate more than 1200 hotels among all over the world. The main
motive of Starwood place strategy is to organise and operate hotel in major cities of all
place. The organisation also dedicated researcher about performing all task which is used
for managing and completing all work as per growth objectives (Brackett and Carr II,
2015). Starwood preferred guest programme is an effective method to use marketing mix
strategy and it refer that management is focused to complete all work as per action that
attracts international number of customers. So customer prefer to buy customer service
always from Starwood services whenever, they are in other city at global level.
 Starwood hotel promotion- The promotional as well as advertising strategy is an
effective term which is used for formulation of effective marketing strategy. In the
present scenario, there are different task and it is used for promote of all products at
different level. Moreover, in context of Starwood promotion strategy management
promote all products with unique and creative techniques. Example- Management
partnered with various airlines for promotion of hotels because airline staff required
hotels to check-in. Starwood preferred guest is an effective programme and this is used
for managing all task with promotion of hotels through word of mouth method. This also
results that promotion of loyalty programme by use of customised solution (Han, Jongsik
and Hyun, 2020). Example- American Express provide discount to book hotels with use
of American Express credit cards.
 Starwood Hotel Product strategy- Product strategy and mix methods of Starwood Hotel
marketing is explained as a one of the leading luxury hotel chain. It’s presence exists at
worldwide level and this is used by management for providing better and effective hotel
services. From the perspective of Starwood hotel service strategy management is focused
towards making guest more comfortable through providing facilities that is comfortable
and provide home like experience to customers. It is also useful for management because
it aids organisation to perform their task according to guest requirement for offering them
a memorable experience.
 People- Starwood hotel offer their services by engagement of more than 180,000
individuals in order to perform all operations and functions in an organised manner. In the
present scenario, human resources are one of the most important assets for an

organisation and it aids Starwood to formulate a competitive-edge in market. Starwood
preferred guest programme is formulated and created by professional who are
experienced in industry from more than ten years. Further, Starwood management believe
that guest satisfaction is at first priority for hotel staff. So manager and leader motivate
workforce for performing the role with more efficiency (Huang and et. al., 2016).
Therefore, Starwood guest trained themselves to maintain same standards according to
Starwood hotels.
 Process- The term process is explicated as a mechanism that is used for delivering
effective and accurate services. In context of hospitality organisation process start from
booking of hotel and it is done according to methods of online and offline basis. Process
can be completed through engagement of travel agents and it used for formulation of
effective programmes that is designed by management for improving customer loyalty
and sustainability in programmes. Starwood preferred guest process is transparent and
this is understood by all individuals for performing all work with an easy process.
 Physical evidence- The Starwood hotel is recognised as a five-star hotel chain and the
infrastructure of hotel is developed through luxurious and glamorous perspective.
Moreover, the Starwood hotels are situated in prime locations and this is used in
Starwood preferred guest programme to obtain competitive-edge in market. This aids
guest for performing their work at those locations which aids them to obtain better view
from hotels.
Analyse the characteristics of the organisation’s relationship marketing programme and explain
its success or failure as a customer retention tool with reasons
The term relationship marketing is defined as a fact for customer relationship management
(CRM) and it focus on customer loyalty and the long term retention of individuals within
organisation. Starwood Preferred guest programme is focused towards the implement of
customer acquisition and individual sales (Lakhtina, 2015). From the perspective of Starwood
marketing programme management is focused towards formulation of on-going business
operations whether with online system or offline methods.
Relationship showcasing remains rather than the more customary conditional advertising
approach, which center around expanding the quantity of individual deals. In the conditional
model, the profit for client procurement cost might be lacking. A client might be persuaded to

choose that brand one time, however without a solid relationship advertising methodology, the
client may not return to that brand later on. So Starwood consolidate components of both
relationships and value-based advertising, client relationship promoting is beginning to assume a
more significant part for some organizations.
Implement of relationship procedure
Relationship showcasing depends on the principles of client experience the executives
(CEM), which centers on improving client connections to encourage better brand steadfastness.
While these connections can in any case happen face to face or via telephone, a lot of relationship
advertising and CEM has taken to the Web.
With the bounty of data on the Web and thriving utilization of web-based media, most of the
hospitality consumer purchasers hope to have simple, customized admittance to insights
concerning a brand and even anticipate that the open door should impact items and
administrations through web-based media posts and online audits (Leung, Bai and Erdem, 2017).
Today, relationship promoting includes making simple two-path correspondence among clients
and the business, following client exercises and giving customized data to clients for performing
work in an organised manner. There are different task performed by management and it is used in
enhancement of task by setting procedures as per Starwood guest requirements.
Success points for Starwood loyalty programme Point Generation- The first and foremost hotel chain offer rewards to the guest with
points and it is earned by individuals through constant visit of hotels. The success of
customer loyalty programme is measured through considering individual task and it leads
persons for generation of good loyalty programmes. It is also useful for customers
because Starwood develop horizon and point generation that are possible to get. Loyalty programme status and benefits- If a customer stay in the hotel for a certain
amount of nights than different benefits are obtained by buyer like, complimentary
breakfast, drinks and late checkout etc. In the context of Starwood preferred guest
management provide program status and in return of managing programmes it aids to
perform all task by managing all task with points that aids to earn more amount and
profits (Minazzi, 2015). The success is gained by management through performing all
work as per company benefits and aspects.

 Point Redemption- When individual earn high points according to dollar and it is used
by management for completion of all work with motive of redeem points. This is used by
organisation to complete all work through which task are completed with offering
equivalent value and this is used for managing all point in order to redeem them in an
efficient manner. Success is understood of Starwood Programme through analysing all
tasks and redeem of points in shorter period. It results customers visit hotel in small span
of time.
Failure of programmes Crucial decisions- Starwood loyalist is useful and this also beneficial for managing the
programmes by taking effective decisions. This is appeared in the programmes and this is
also used for managing and completing all work by understood of ease programmes
(Tsai, 2014). There are different task performed by managed and it is used to link all
activities by managing accounts, transfer points and to update system. So it is difficult for
management for customers because monetary aspect is not issue for individual who visit
Starwood but if guest face problem in understand of programme than it directly impacts
on customer relations. Lack of communication- Starwood also perform work with managing task by engaging
of Marriot hotel. So now digital systems are attached by organisation and it make
upcoming system are both linked with customers. This define communication is an
important term and this leads organisation for completion of raising value by which
management provide updates to individuals to complete task. But due to constant system
it is difficult for organisation in managing task with use of communication system. Thus,
if customer face challenges to book hotels than it is difficult to maintain positive
relations.
With the above points it is identified by management that with adoption of effective techniques.
This is easy for Starwood to develop effective programmes and it leads management to complete
all work with more efficiency. From the perspective of company communication is an important
term for Starwood to maintain positive relations.
Strategy for the development of loyalty programme
Customer loyalty programme is an effective term and this is used for deciding an effective
business model in order to combine organisation all work with each other. Example- All

functions which are performed by me aids to generate system that provides better loyalty
programmes to organisation (Xie and Chen, 2014). In context of strategy, tiered program strategy
is implemented by me and this is used to attain better rewards. Receive of more points, initial
loyalty and encourage to consume more services are the reason to select tiered system for
completion of all work according to strategy of programmes.
CONCLUSION
With the analyses of above report it is concluded by management that marketing is an
important function and it is used to retain customers for longer period. Marketing mix is one of
the most appropriate actions and this aids organisation to complete all work by considering
effective marketing strategies. Marketing programme plays an important role and this is used for
completion of work that develop effective relationship programme for accomplishing better
success in market. In the last, selection of appropriate strategy is also evaluated to attract more
number of customers.

REFERENCES
Books and Journals
Allan, M.M., 2016. The Relationship Between Service Quality and Customer Satisfaction and
Retention in Ghana's Luxury Hotels. IUP Journal of Marketing Management, 15(4).
Avery, J., Dev, C.S. and Stroock, L.M., 2018. The Marriott-Starwood Merger: Navigating Brand
Portfolio Strategy and Brand Architecture.
Brackett, L. and Carr II, B.N., 2015. Sustainability marketing: US hotels vs. international hotel
chains. World Journal of Entrepreneurship, Management and Sustainable Development.
Han, H., Jongsik, Y. and Hyun, S.S., 2020. Nature based solutions and customer retention
strategy: Eliciting customer well-being experiences and self-rated mental
health. International Journal of Hospitality Management, 86, p.102446.
Huang, Y.C and et. al., 2016. Exploring the implications of virtual reality technology in tourism
marketing: An integrated research framework. International Journal of Tourism
Research, 18(2), pp.116-128.
Lakhtina, K., 2015, April. Value Formation of Loyalty Programs in the Hotel Industry: Starwood
Preferred Guest, Marriott Rewards, Hyatt Gold Passport. In ISCONTOUR 2015-Tourism
Research Perspectives: Proceedings of the International Student Conference in Tourism
Research (p. 59). BoD–Books on Demand.
Leung, X.Y., Bai, B. and Erdem, M., 2017. Hotel social media marketing: a study on message
strategy and its effectiveness. Journal of Hospitality and Tourism Technology.
Minazzi, R., 2015. Mobile Social Media Marketing in Tourism. In Social Media Marketing in
Tourism and Hospitality (pp. 127-135). Springer, Cham.
Tsai, S.P., 2014. Love and satisfaction drive persistent stickiness: investigating international
tourist hotel brands. International Journal of Tourism Research, 16(6), pp.565-577.
Xie, L.K. and Chen, C.C., 2014. Hotel loyalty programs: how valuable is valuable
enough?. International Journal of Contemporary Hospitality Management.