Marketing and Customer Retention in the Hospitality Industry

This report discusses marketing mix, relationship marketing, and loyalty program strategies in the hospitality industry, with a focus on introducing a new restaurant. It covers topics such as customer satisfaction, segmentation, and recognition & reward. The report concludes that customer loyalty is crucial for the growth of any business in the hospitality industry.

Marketing and
Customer Retention in
Hospital Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.) Demonstrate about marketing mix in the context of Bed & Breakfast Restaurant................3
2.) Define charateristic of relationship marketing to implement a successful loyalty program..4
3.) Propose strategies of loyalty program of business in hospitality industry............................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality industry define an act of making customer satisfaction. It means feel happy to
the customer through entertainment and comfort. This business may break down into
segments that is food and beverages, travel and tourism, fun zone, lodging and
recreation(Book, Gatling and Kim, 2019). The report is based on introducing new restaurent
named( Bed & Breakfast). This report discusses about marketing mix including their
proposed with bed and restaurant of breakfast, analyse marketing features for implementing
a loyal programmes successfully and define strategies of loyalty plans in their hospitality
business.
MAIN BODY
1.) Demonstrate about marketing mix in the context of Bed & Breakfast Restaurant.
It focus several areas that can used by the company to promoting its products and
services. It can divided into 7P's of marketing which are as follows;
 Product: It refers to a combination of a combination of goods and services that they
offer to public. And it can make according to the customer desire. This comprises design,
quality, variety,brand name, service and packaging. A restaurant ( Bed & Breakfast) will
make some extra effort for ensuring the product meets with target audience and clients
can attract through better service and core customer value.
 Price : It is a methodology for entire pricing . This segments generally involves discount
and fair pricing of the product. A company can make the price according to current
position of their competitors in the market . For case of new restaurant price will make in
a competitive manner marketers have to make long term plans to keep the rising demand
and smooth supplies. This will help in gaining profit for business as well as influence
customer decision.
 Place: This criteria may decided according to customer comfort(Budur and Poturak,
2021). It is very important tool for sales, this can help consumer to finding the product
with ease. Company have to focus on customer ease to access because this may help in
influencing the business sales and generating revenue.
 Promotion: This define the idea that can help company product known to public. It
simply define connection with target customers and providing the information about the

product quality and persuade them for purchase it. Market have to use different channeld
for advertiusing their brand image such as Intagram , youtube, facebook , twitter etc. and
also make interesting discount campaigns.THis will help making strong relationship with
customer and gaining its attention.
 People: It defines a person who sells or advertising product with their full dedication. It
involves employees, sales people, customer service team and any other person who are
indulge in this process. Bed & Breakfast restaurant have to focus on effective counselling
and training of staff. So that they can handle customer complaints in future and give
them a quick response regarding product related query.
 Process: It define step of providing goods and services to its consumer. It performed
many task , activities and functions for keeping your procedures smoothly(Curatman and
Suroso, 2021). It will be prove a effective addition for bed & breakfast restaurant. And a
positive outcome may arise only if delivered process can measure in terms of customer
satisfaction.
 Physical Evidence: It refers something physical to validate the purchase of customer.
Company have to provide a proof like souvenirs and mementos to its customer. This will
help in soothing and comforting satisfaction level of customer and also provide a
positive result for company.
2.) Define charateristic of relationship marketing to implement a successful loyalty program.
It refer top marketing activity that help in improving and maintaining long term
relationship with clients and focus on their loyalty. Basically loyal programmes is a strategy that
offer discounts , rewards and other incentive that help to customer's repeat business. Bed &
Breakfast willcome up with a point system , valid upto 12 months. In this customers will be
provided with some points which can be used at the time of their next visit.
 Service Culture: It is a area where people are motivated with providing a best customer
service to its customer(Karunaratna and Kumara, 2018). It focus on customer centric
approach that derives customer satisfaction.This feature of relationship marketing help
Bed & Breakfast in order top retain customer that will make repeat purchases.If
restaurant makes customer happy. This will enhanced brand loyalty , evolving clients
demands or become a brand ambassadors.

 Segmentation: It refer to act of dividing the marketplace into different sectors that help
seller for providing best product and services in respect to needs, desire and ability to pay
of customers. Customer segmentation includes making a group of customer with their
certyain similarities , tastes and preferences. This will help Bed & Breakfast to enrich its
loyalty program because this feature assist to handle client service in a very informed
manner and determine customer advocacy. So this will increase the awareness of brand in
marketplace.
 Database: It refer to direct marketing potential of customer to generate an effective
communication in order to promote company items for purpose of marketing
(Konovalova And et.al., 2018). The main of this marketing is to generate new customers
and collect huge amount of data for existing customer. For Bed & Breakfast, database
marketing relationship will help to identify customer groups and provide a best loyalty
wioth high value customers and occasional buyers. This will improve the customer
service and client interaction with brand.
 Trust & Commitment: It is a fundamental factors of relationship marketing. This will
create mutual loyalty among parties and make along lasting bond with their with their
clients.Trust builds a confidence between both the parties and develop trust by standing
behind their promises. The commitment desires continuously invest in developing and
maintaing relationship with customers. Inshort a serious relationship activities help
business to make their trust and relationship with customers. Bed & Breakfast will make
sure to provide a promise at each stage of customer journey. Then this will help
restaurant to win the product awards and increse its brand reach to customer.
 Recognition & Reward: It leads a greater employee engagement than this may increase
retention and productivity(Kwiatek, Morgan and Baltezarevic, 2018). Basically this help
to motivate workers to do their best for business growth. So, for running any business,
focus on loyalty of customer and buils a solid connection with them. This loyalty
program help the business to maintaing its relationship with clients. Recognition &
reward will build a user engagment then this will enhancing business sales. Company will
make a loyalty program that encourage action and boosting connection.

3.) Propose strategies of loyalty program of business in hospitality industry.
It refer to a marketing strategy that attract customers to retain business and properties.
Following are strategies that will use Bed & Breakfast restaurant at the time of making loyalty
programme:
 Make the simple process: This is the first step to make loyalty program successful.
While introducing any loyal program make sure that process may not too long because
this will tired the clients. So, Bed & Breaskfast have to focus on making the process very
simple and user friendly by which a clients wants to enroll themselves without thinking
twice. This will help in boosting the restaurant customer retention.
 Give Reward & Recognition to customers: A client will only be feel happy and
satisfied when they get involved and friendly with the environment(Menicucci, 2018).
So Bed & Breakfast have to create a value focused recognition ceremony that make best
suits for audience. Give them some extra discount on a specific offer or a complementary
meal everytime when they visit. It will help in increasing ratio of customer also influence
their perception and bring positive growth for industry.
 Stay in touch with clients: This strategy is very important to bring a success in venture.
So, staff of the restaurant have to maintain a strong and healthy relationship with their
client and consistently touch with them (Mody, Hanks and Dogru, 2019). It will helps to
inform loyal customer about new updates related to menu & offers, products and
services and make happy time to change mindset of customers. Bed & Breakfast have to
put some efforts on proving information about new insertions to its audience. Thus, thi
swill make an edge over others in market.
 Adopt several channels service system: For making a customer loyalty then Bed &
Breakfast have to take multi channel service system. It is one of the best way to connect
aur interact with audience.If company often more with customer then more chance create
to make influence on customer experience.This multiple channel service systenm
enhancing the satisfaction level of customer because, it assure to make consumer service
more accessible and company also easily reach to them.
 Provide Exceptional Service: Bed & Breakfast must try to go above and beyond
expectation of consumer and give them exceptional service. It doesn't mean that provide
them free products or free services. But try to solve their problems and give them some

discounts this will work as a bandage at that time. Always listen to customer and give
them first preference in terms of business alongwith provide them a positive solution. If
they will feel happier then they will help in incresing the deal.
 Be consistent: This strategy create a large impact on business (Park and Min, 2020).
Because it improves efficiency and building trust also help to make plan that may define
the purpose, objective,vision of organisation. So, Bed& Breakfast also have to check the
level of consistency to run in the market alongwith their upcoming competitors. Clients
always know their expectation from restaurant every time when they go, so if company
grant them consistency through their product and services then their audience will highly
committed and incorporated with them. Being consistent derives a promise regarding the
business.
 Share positive customer experience: For the growth of company it is important to
make a positive conversation with customers. This helps to maximize the value of
customers. Bed& Breakfast will encourage its upcoming customers by giving them a
positive review. If customers are satisfied with the response then they share testimonials
which they can upload over a website and many more channels.Thus, this process will
help to make reputation of business and also enhancing its market share.
 Provide additional values: Now a days everyone is part of racing in corporate world and
doing so well for company growth (Sipe and Testa, 2018). Beyond a loyalty program,
Bed & Breakfast have to focus on buiding a relationship with their clients and feel them
familier. Because, it will expand the moment of purchase.For adding a value in customer
experience company have to host some contest, events, campaigns that help to motivated
target audience. Customer community is another way to add more value in their
experience and alos help to maintain the social status of company.
 Take Feedback: A geuine response to customer help in effective working. It is most
important aspect for running any successful restaurant. An effective loyalty program
assist to understand more about customer preference and perception. So, Bed & Breakfast
have to focus on filling out the surveys ocassionally through questionaire and adopt
acustomer feedback in terms of loyalty points. This is a great area that make learn
something about experience of customer and after evaluating satisfying them by fulfilling
their needs.

CONCLUSION
From the above report it is concluded that hospitality industry provides best quality of goods and
services to its customer this will help to achieving the industry target. This analysis is totally
based on customer perception in regarding to introducing new restaurant.This will help in
making some tips that can be used at a time of opening new restaurant. This anlysis try to help to
solving the queries in terms of place, promotion tips, customer loyalty etc.Customer is a king of
market they majorly help in generating revenue and enhancing positive growth of organisation.

REFERENCES
Books and Journals
Book, L., Gatling, A. and Kim, J., 2019. The effects of leadership satisfaction on employee
engagement, loyalty, and retention in the hospitality industry. Journal of Human
Resources in Hospitality & Tourism. 18(3). pp.368-393.
Budur, T. and Poturak, M., 2021. Employee performance and customer loyalty: Mediation effect
of customer satisfaction. Middle East Journal of Management. 8(5). pp.453-474.
Curatman, A. and Suroso, A., 2021. Loyalty program and communication effectiveness as
drivers of store loyalty. Measuring Business Excellence.
Karunaratna, A.C. and Kumara, P.A.P., 2018. Determinants of customer loyalty: A literature
review. Journal of Customer Behaviour. 17(1-2). pp.49-73.
Konovalova, E.E. And et.al., 2018. Forming approaches to strategic management and
development of tourism and hospitality industry in the regions. Journal of
Environmental Management & Tourism. 9(2 (26)). pp.241-247.
Kwiatek, P., Morgan, Z. and Baltezarevic, R., 2018. Actions speak louder than words:
Understanding the meaning of loyalty program building blocks. Economics &
Sociology. 11(2). pp.305-319.
Menicucci, E., 2018. The influence of firm characteristics on profitability: Evidence from Italian
hospitality industry. International Journal of Contemporary Hospitality Management.
Mody, M., Hanks, L. and Dogru, T., 2019. Parallel pathways to brand loyalty: Mapping the
consequences of authentic consumption experiences for hotels and Airbnb. Tourism
Management. 74 . pp.65-80.
Park, J. and Min, H.K., 2020. Turnover intention in the hospitality industry: a meta-
analysis. International Journal of Hospitality Management. 90. p.102599.
Sipe, L.J. and Testa, M.R., 2018. From satisfied to memorable: An empirical study of service
and experience dimensions on guest outcomes in the hospitality industry. Journal of
Hospitality Marketing & Management. 27(2). pp.178-195.