Marketing and Customer Retention in the Hospitality Industry

This report discusses the implementation of marketing mix and organizational relationship marketing program in the hospitality industry, with a focus on Marriott. It analyzes the company's performance in their relationship marketing plan and provides recommendations for improving customer loyalty. The report also explores loyalty programs for Marriott and suggests changes in pricing structure, better customer communication, and improvement in customer loyalty programs.

Marketing and Customer
Retention in the Hospitality
Industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1: Implementation of marketing mix...........................................................................................3
2: Organizational relationship marketing programme.................................................................5
3: Loyalty programme for Marriott..............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing Strategy is the complete set of activities which are done by organization for
reaching wide number of customers. Marriott international is chosen for the analysis in this
report. It is one of the largest multinational hospitality service provider around the globe and is
having several branches within UK. With that company run its loyalty programmes for
maintaining customer engagement. The report will analyse implementation of marketing mix in
organizational context and with that evaluation of company's relationship in their marketing
program will also be included in this report. Analysis of company's performance in their
relationship marketing plan is done in this report.
MAIN BODY
1: Implementation of marketing mix
Marketing strategies are the overall activities which are done by organizations for
achieving a wide range of customers towards them. These strategies are consists of several
activities in which marketing mix is widely used among them (Stead and Hastings, 2018).
Following is the marketing mix analysis of Marriott international.
Product-
Marriott international is a hospitality service provider, which is having several hotels and
resorts throughout the globe with that company also provide lodging services to their customers,
due to which organization is able to attract large number of customers toward them. But on the
other hand limited products are provided by organization to their customers because of which
chances of brand switching increases. So company must enhance their products as per current
market trend.
Price-
Marriott uses premium pricing for their services because of which company is able to
achieve a large profit margin and to maintain customer's engagement with organization, loyalty
programmes are held, such as Marriott rewards this increases customer's engagement. But
because of high pricing it is having limited number of customers (Lahtinen, Dietrich and Rundle-
Thiele, 2020). With that in the present scenario because of COVID-19 organization's customer
count is reduces drastically, so company should make price relaxation, so they can increase their
customers count.

Place-
Marriott is having its branches in more that 134 countries and is having more that 5,700
properties. Company's hotels are situated at prime locations such as airport, main road central
cities, etc. because of which it stays as number one choice of customers. In the present scenario
of COVID-19 company can extend their work areas in other countries so it can increase its
customer count and get a better grip on market.
Promotion-
Marriott is well-known as luxury service provider among its customers, now in order to
enhance its customer count company promote itself through many platforms, such as TV,
newspaper and social media advertisement. Now with the help of application and website
company is able to provide exciting offers to their customers. To improve its customer
engagement company should increase its involvement with social media influencers such as
YouTubers, so company can advertise themselves among their followers which will increase
company's customer count.
People-
Marriott is having around 176,000 employees working all around the globe. Company
pays high interest in providing best in class training to their employees because employees will
be representing organization and their performance will decide customer's loyalty towards
organization (Abril and Rodriguez-Cánovas, 2016). Therefore scheduled training is provided to
organizational employees, before implementing any organizational change. Even though
company is providing training to its employees but creative ideas in technological development,
so by recruiting new candidates company would be getting creatively new ideas by which it can
improve its performance.
Process-
Company uses several technological advancements for improving their performance in
front of customers and for achieving this it uses technological advancements like application and
websites are used. Through these methods company improves customers experience with
organization which increases their loyalty. With that Marriott is also having partnership with
other industries also, such as travel industry and booking industry. By doing, so they can share
each others customers which will increase customer count for organization and provide
additional benefits to customers.

Physical Evidence-
Marriott is having several tangible items in its marketing mix strategy such as hotels and
resorts all over the globe with will finish furnitures which attracts large number of customers
towards it. Company uses this structure for promoting themselves such that customer's
engagement with organization can be improved (Andika and Susanti, 2018). Company's website
and application is also a source for attracting customers towards them which follows for
improving customers experience with organization, in this several options are provided by
organization such as digital check in and check out by which company has improved customers
experience.
2: Organizational relationship marketing programme
Relationship marketing is a marketing strategy which is done by organizations for
developing and maintaining long term relationship with customers. Through this continuous
engagement of customer with organization, company can get important feedbacks from their
customer's through which it can improve its organizational working. To maintain this long term
relationship company uses its loyalty programmes in which customers are rewarded for
maintaining an efficient relationship with organization. In case of Marriott they use Marriott
Rewards for rewarding its customers.
For Marriott reward company provide several additional benefits to its loyal customers
such as, attractive discount offers, add on services, free up gradation, Mobile check-In and
mobile check-out, free Wi-Fi, and many other additional facilities (Pogorelova and et.al, 2016).
Through these efforts company reduces customer's time at booking desk allowing them more
personal space, which showcase company's improved working capabilities in front of its
customers.
Customer Loyalty Programmes-
It is the easiest way in which Marriott increases customer's loyalty, in this some
additional benefits like VIP treatments are given to customers on the basis of their engagement
with organization. These benefits will generate a relationship between customer and company
which will result in increment in their loyalty towards organization and reduces chances of brand
switching, therefore this is a successful strategy.
Content Personalization-

In this customer's preferences are analysed by organization and then advertisements are
done in such a way that customers can easily relate their requirements with the services provided
by Marriott. This personalization of content motivates customers to increase their engagement
with company because company is able to understand their requirements.
Customer Support Help-desk-
Technological developments have limitations like working as per preset program, but
humans learn from their experience and therefore through proper training of employees Marriott
improves customer's experience within company (Wu and Li, 2018). Employee's effective
communication and good problem solving capabilities enhances customer's experience which
lead to successful increment in their loyalty.
Improved On-board experience-
All customers at Marriott are treated equally because of its highly trained staff and
customer friendly technological developments. By doing so company makes a base performance
through which it is able to improve each customer's experience which will motivate them to visit
again (Blut, Teller and Floh, 2018). This will allow organization to successfully maintain its
existing customer count.
Taking Feedbacks-
Customer's feedbacks are taken at time of their checkout, through this Marriott gets a
report of its ground level performance. Through these feedbacks company gets an estimate to
segments which requires improvement and by improving these segments, customers get a sense
that their suggestions are being listen by organization which will improve their loyalty toward
Marriott which is its success.
Social media interaction-
Due to increasing popularity of social media company is able to reach wide range of
customers which is much more cost-efficient. Company uses this for promoting themselves in
front of customers which is its success but at the same time it fails to generate effective
communication with customers by using Facebook messenger chat bots. So by establishing
social media communication company can enhance customer's loyalty by increasing its
engagement in organizational activities.
Email Marketing-

Marriott uses email marketing for showcasing its services to customers, this is a creative
way to keep customers engaged with organization activities. But on the other hand this is a less
attractive way for engaging with organizational customers because of traditional photographic
advertisement which is less interesting to customers in case of online advertisements. However
this keeps customers aware of brand availability and reduces the chances of brand switching,
therefore it is a success. But company can use several developments for increasing the
effectiveness of its email marketing.
A/B testing-
This is related to improving company's online presence like improving organizational
website and application. Marriott has developed its online structure such that it motivates
customers to implement these technological advancements at the time of interaction within
organization. For example, online check in allows loyal customers to have direct access to their
rooms, just like home without dealing with conventional booking table which a success for
Marriott.
3: Loyalty programme for Marriott
Marriott is one of the largest hospitality service provider around the globe which provide
hospitality services to its customers. Company uses creative advertisement for attracting new
customer and also runs loyalty programmes like Marriott rewarding its customers on the basis
their loyalty toward organization (HR and Aithal, 2020). Even though Marriott is one of the
largest service provider but its working capabilities can be improved. Following are the
recommendations for improving customer loyalty towards Marriott.
Changes in pricing structure-
Marriott uses premium pricing strategy in which products are priced higher than
compared to market competition, by doing so organization generates a sense of high quality in its
services which leads to large profit margin. But on the other hand this also reduces number of
customer's which organization is having, therefore it is recommended to Marriott that it
implement changes in organizational pricing structure. It is important because in present time
due to presence of COVID-19 world tourism is affected badly and by providing price relaxations
company would be able to attract mid range customers. This will promote company to reach

other segments of society, resulting increment in sales and at the same time it will also motivate
existing organizational customers for enhancing their involvement in organizational activities.
Better customer communication-
Marriott uses creative communication techniques for attracting wide range of customers
and for it keep on upgrading its marketing techniques such as from traditional marketing to email
marketing and currently social media marketing is used. In each case primary focus is not on
facilities provided by organization but instead these services are showcased as secondary
objectives, which is sometimes hard for customers to clearly understand company's message.
Company should also use technological developments within social media for effectively
communicating with its existing customers.
Improvement in customer loyalty programmes-
Marriott provides additional services to its loyal customers for maintaining their loyalty
toward organization and for that it provide additional benefits, such as fast check in and fast
check out. In this advancement customers don't have to wait in line for checking in, they can
directly go in their room by bypassing booking desk same as their home. With that some
additional benefits are also provided like free Wi-Fi and VIP treatments, which is insufficient as
per market competition (Išoraitė, 2016). So company should provide additional benefits such as
complementary stays, proving loyalty perks, special discount offers and award ceremony for
special customers. This activity will make a positive impact on other customers, and they will be
motivated for increasing their involvement with company.
CONCLUSION
From the analysis in the above report it can be concluded that Marriott is having large
number of customer database throughout the globe and for that it becomes very important that it
is as able to maintain its existing customer count. Although Marriott run loyalty programmes but
brand switching is often a case because its premium pricing strategy, therefore it must implement
changes in its pricing structure so it can maintain its customer count. With that, in order to attract
new customer toward organization it must implement certain technological advancements with
creative marketing, so Marriott can increase its customer count.

REFERENCES
Books and journals
Abril, C. and Rodriguez-Cánovas, B., 2016. Marketing mix effects on private labels brand
equity. European Journal of Management and Business Economics. 25(3). pp.168-175.
Andika, A. and Susanti, F., 2018. Pengaruh Marketing Mix Terhadap Keputusan Pembelian
Parfum di Azzwars Parfum Lubeg Padang.
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of Retailing. 94(2). pp.113-135.
HR, G. and Aithal, P.S., 2020. Integrated Marketing Mix Framework for Baby Care Retailing in
India. International Journal of Applied Engineering and Management Letters
(IJAEML). 4(1). pp.191-218.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of
Social Marketing.
Pogorelova, E. and et.al, 2016. Marketing Mix for E-commerce. International journal of
environmental & science education. 11(14). pp.6744-6759.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing(pp. 29-43). Psychology Press.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
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