Marketing and Customer Retention in the Hospitality Industry

This report discusses marketing mix, relationship marketing, and loyalty programs in the hospitality industry. It provides insights on strategies to retain customers and increase revenue. The report uses Pollards Inn as an example to demonstrate the marketing mix and proposes a loyalty program called Pollards points. It also analyzes the characteristics of relationship marketing and proposes strategies for loyalty programs in the hospitality industry.

Marketing and
Customer Retention in
the Hospitality

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Demonstrate you knowledge and understanding about marketing mix, including.....................3
extended marketing mix of your proposed Bed and Breakfast Restaurant................................3
Analyse Characteristics of relationship marketing (Service culture, Segmentation,..................5
Database, Trust & Commitment and Recognition & reward) to implement a...........................5
successful loyal programmes.....................................................................................................5
Propose strategies of your loyalty programmes in your own business in the ............................6
hospitality industry,which you are going to open after completion of the FdA ........................6
hospitality management programme from the Nelson College...................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is related to those process of intentionally increasing the demand of goods and
services by using different methods of marketing. Nowadays marketing is the essential needs for
every business because it is important to aware the customers about the new products as well as
in innovative product of the organisation. Marketing plays an important role to retain the existing
customer of the organisation (Tan, 2020). Pollards Inn is the organisation which is chosen here to
describe various marketing mix in context of the same. This report provide detailed information
about the characteristics of relationship marketing to implement successful loyal programmes. It
contains description of various loyalty programmes of Bed and breakfast.
TASK
Demonstrate you knowledge and understanding about marketing mix, including
extended marketing mix of your proposed Bed and Breakfast Restaurant.
Marketing mix of Pollards Inn
Marketing mix is related to the set of action which company uses to promote their
products and services in market. There are four factors in this framework such as product, price,
promotion and place. To analyse the needs of improvement in this framework and increasing the
scope of marketing three more mix are added such as people, process and physical evidence. The
description of these factors on Pollards Inn are given below.
Product
This section of marketing mix is related to both product and services. The product of
business organisation should be developed in accordance to satisfy the needs of customers. It is
one of the most critical factor to be decide by company that what to sell in market. It is the
quality of successful organisation to analyse the needs of customer from the market and then
developed their product according to the needs. The quality if product would be according to the
demand of customers not on the company's will. Pollards Inn is an bed and breakfast
organisation under which it provides food with proper accommodation as their product range.
Price
Price is related to the amount or money charges by business organisation for their product
or service. It is one of the most important factor because the success and failure of product in
market is related to their pricing policy. Pricing of the product depends on many factors such as

cost of the product and also the demand of product. The fix cost of hospitality organisations is
very high and there are many big players operates in industry which provides extensive
competition in price so it is very difficult for business organisation to maintain considerable
profit margins due to high fix cost and competition (Parawansa, 2018). Pollards Inn operates in
united kingdom hospitality industry where several big hotel organisation such as Premier Inn and
British hospitality group captures market share so it is difficult for Pollards Inn to set the price
for their product and services.
Place
This factor is related to the actual place where business organisation sell their product and
also the customer purchase product and services. The place setting process of company should be
take place in accordance of consumer convenience means where consumer does not find any
difficulty to reach. One of the most important aspect to be considered in this factor is effective
distribution channel (Alamgir and Uddin, 2017). These effective distribution channels enables
the organisation to provide the product at right time at right place. In context of Pollards Inn, the
place id related to their hotel place. Under this place it is necessary to provide clean and
attractive place to their customers which helps the company to retained their customers and
motivate them to revisit their restaurants.
Promotion
It is related to those framework under which business organisation acknowledge their
customers about their new products and services and also the innovation in their existing product
and services. In hospitality business promotion is related to branding and advertising of their
hotel facilities and foods offer in their restaurants. To advertise their products hotels uses many
methods of advertisement such as direct selling print, social media advertising and effective
website designing. Pollards Inn uses many techniques to promote their restaurant foods and
accommodation services such as loyalty cards and heavy discounts in their restaurants.
Process
This factor of marketing mix is related to the processes used by business organisation in
their production of goods and services as well in their distribution of products and services. In
hospitality industry there are many process such as booking, checking in, checking out and
queuing system should be effective and efficient so that the customers becomes motivated
towards organisation. In case of Pollards Inn, the booking process is very attractive because

company provides attractive website to their customer where customer can easily book their slot
and enjoys experience in hotel. Under check in system all the luggage of customer reached their
room by their subordinates and no efforts will be done by customer while check in hotel.
People
This factor of marketing mix is related to both employees of organisation as well as
customers of organisation (Mahmoud, Hinson and Adika, 2018). Both the parties are important
for the business operations. In hospitality industry there is very critical relationship between
employees and their customers. The image of companies brand is depend on the behaviour of
their employees towards their customers and due to the covid pandemic it is necessary to follow
certain guidelines by their employees for the safety of their customers.
Physical evidence
It is related to those things or actions by business organisations which continuously
reminds the customer about the organisation's products and services. In hospitality industry
proper decorations and hygienic environment the organisation work as the physical evidence of
the organisation (Chahal and Bala, 2017). Pollards Inn makes their reception area as the most
attractive and decorative place in their working areas because it reminds their customers about
the organisation.
Analyse Characteristics of relationship marketing (Service culture, Segmentation,
Database, Trust & Commitment and Recognition & reward) to implement a
successful loyal programmes.
Relationship marketing related to the framework of customer relationship management
and it includes the loyalty of customers towards the organisation (Relationship marketing, 2020-
21). The main aim of this relationship is to engage customer with organisation for long term in
comparison of satisfying short term needs of customers. Relationship marketing is very
important to retained the existing customers of hospitality organisation because it enables the
customers to enagage with organisation for long term due to their effective marketing techniques.
Examples of relationship marketing which can use by Pollards Inn
 Pollards inn can provide extra ordinary service experience to their customer which helps
them to increase their loyalty towards company.

 It uses many social media post and posters which contains thanks statement to their
customers.
 Develops various loyalty programmes so that their customers can be easily retained.
Characteristics of relationship marketing
There are many characteristics of relationship marketing to implement loyalty
programmes particular organisation because of their importance in management of business
organisation and the brief discussion are given below;
 Service culture :- It is related to those environment under which the employees of
organisation provides superior services to the customers of company. Service culture is
very important for the retention of customers and success of loyalty programmes in the
pandemic scenario because it enables the organisation's employees to provide healthy
environment to their customers.
 Segmentation :- It is related to the division of market in different groups according to
the similar characterises such as same age group customers and a customers based on
same geographical area (Parawansa, 2018). This factor can be very useful for business
organisation because it provides a directions to company on which group of customers
be focused and it is also helpful in customer loyalty programmes.
 Recognition and reward :- It is one of the most important characteristics of
relationship management. Under this method hotel organisation provides adequate
rewards for the effective performance of their employees and given timely recognitions
to employees. These initiatives of company increases the motivation of employees and
increases the loyalty of employees towards the organisation.
 Trust and commitment :- It is essential to successfully implement loyal programme
that customers of hotel industry has trust on the organisation and company are able to
perform all their commitment effectively.

Propose strategies of your loyalty programmes in your own business in the
hospitality industry,which you are going to open after completion of the FdA
hospitality management programme from the Nelson College
There is loyalty programme which Pollards Inn prepare to retained their existing customers in
this covid pandemic called Pollards points. Under this scheme the customer who visits Pollards
Inn will be provided some loyalty point in their online portal.
Explanation of Pollards points (loyalty programme)
 Under this scheme of hotel, every customer visit hotel will be given unique identification
which customers login on the main website of hotel.
 This website contains a separate section where company provides loyalty point to their
customer on their every visits at hotel and restaurants of Pollards Inn.
 Under this system company develops different mile stones to be achieved by customers
through their points for example slot of 1000 points and 2000 points.
 Company organised many rewards to customers at the achievement of every milestone
for example if any customer reached at 2000 points they have credit of 2000 on their next
visit in hotel.
 This programme also provide free holiday at specified destination if any customer
achieve the biggest milestone such as 200000 points.
Benefits of this loyalty programmes
loyalty programmes is very important to increase the loyalty of customers towards Brown
cafe and lauge and the brief discussion on different aspects are given below.
 Increase customer experience :- Loyalty programmes is regarded one of the most
effective method to increase customer experience because it enables the Pollards inn to
provide healthy and hygienic environment to their customers (Larsson and Broström,
2019). Nowadays the preference of hospitality customer becomes dynamic (Larsson and
Broström, 2019). It demands safe and healthy experience in place of any decorative or
attractive experience of covid pandemic. These pandemic situation increases the level of
fear in human being to get infected so many hotels adds healthy environment in their
loyalty programmes.
 Increases booking :- loyalty programmes helps the organisation to make their customer
loyal towards the organisation. This loyalty enables the customer to revisit in same hotel

which ultimately increases bookings of organisation (Mahmoud, Hinson and Adika,
2018). The loyalty scheme of Pollards inn motivates their customers to continuously
visits the hotel for obtaining loyalty points which increases the customer base of
Pollards inn.
 Revenue generator :- The main aim of any loyalty programme is to increase the revenue
of hotel organisation by a way of increasing a bookings from customers (Simões and
Nogueira, 2021). There is severe downfall of Pollards inn revenue due to the covid
pandemic so loyalty programme is regarded as the most effective method to increase the
revenue of hotel.
 Helps to gain competitive advantage :- There are many big players such as Marriott and
star wood conducting in hospitality industry. These players holds major market share of
industry and provides tuff competition to other organisation. Loyalty programmes is the
way through which Pollards inn can increase their number of customers and gain
competitive advantage in industry.
CONCLUSION
From the above report it is concluded that marketing is the most important thing for the success
of business in this highly competitive market. The importance of marketing increases after the
collapse of global business structure due to covid pandemic (Ross, 2018). Economies of all
countries are badly affected due to due to pandemic and need instant solution to revive the
economy (Krautz and Hoffmann, 2017). This report enables the importance of marketing mix to
develop the strategy for marketing of Pollards inn. Relationship marketing is very important for
customer relationship management and it enables the employees of hospitality organisation to
provide effective environment to their employees.
REFERENCES
Books and Journals

Alamgir, M. and Uddin, M.N., 2017. The role of customer relationship management and
relationship maintenance on customer retention-an exploratory study. Journal of
Services Research, 17(2), pp.75-89.
Chahal, H. and Bala, R., 2017. Role of customer retention equity in creating and developing
brand value. Journal of Relationship Marketing, 16(2), pp.119-142
Krautz, C. and Hoffmann, S., 2017. The tenure-based customer retention model: a cross-cultural
validation. Journal of International Marketing, 25(3), pp.83-106.
Larsson, A. and Broström, E., 2019. Ensuring customer retention: insurers’ perception of
customer loyalty. Marketing Intelligence & Planning.
Mahmoud, M.A., Hinson, R.E. and Adika, M.K., 2018. The effect of trust, commitment, and
conflict handling on customer retention: the mediating role of customer satisfaction.
Journal of Relationship Marketing, 17(4), pp.257-276.
Parawansa, D.A.S., 2018. Effect of commitment and customers’ satisfaction on the relationship
between service quality and customer retention in rural banks in Makassar, Indonesia.
Journal of Management Development.
Ross, N., 2018. Customer retention in freemium applications. Journal of marketing analytics,
6(4), pp.127-137.
Simões, D. and Nogueira, J., 2021. Learning about the customer for improving customer
retention proposal of an analytical framework. Journal of Marketing Analytics, pp.1-14.
Tan, E.Y.Y., 2020. Social Media Brand Participation: Modelling the Major Determinants of
Customer Retention from a Marketing Capabilities Perspective (Doctoral dissertation,
Waterford Institute of Technology).
Online : Relationship marketing. 2020-21 [online]. Availaible through
:<https://searchcustomerexperience.techtarget.com/definition/relationship-marketing>