Marketing Mix Application in Hospitality

This assignment examines the application of the marketing mix (4Ps) within the context of the hospitality industry. It analyzes real-world examples from prominent companies like IHG and McDonald's, demonstrating how they leverage product, price, place, and promotion strategies to succeed in their respective markets. The assignment draws on academic literature to provide theoretical grounding and practical insights into effective marketing mix strategies for the hospitality sector.

MARKETING ESSENTIALS

CONTENTS
INTRODUCTION......................................................................................................................1
TASK – 1...................................................................................................................................1
P1 Explaining the key roles and responsibilities of the marketing function within Inter-
continental hotel.....................................................................................................................1
P2 Roles and responsibilities of marketing relate to the wider organisational context..........3
TASK – 2...................................................................................................................................5
P3 Comparing the way of applying the marketing mix to the marketing planning process to
achieve business objectives by different hospitality organizations........................................5
TASK – 3...................................................................................................................................8
P4 Marketing plan for Travelodge to meet out marketing objectives....................................8
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

INTRODUCTION
Marketing is quite important function of business and is a very broad concept. It
initiates with identifying the requirement of the client and culminates with the self-
actualization. Thus, marketing can be defined as a process through which relationship of the
firm with its business environment is evaluated. Pertaining to high level of competition and
globalization, hotels, accommodations and restaurants are facing issues regarding carrying
out market research (Lamb, Hair and McDaniel, 2008). Companies engaged in the hospitality
industry are required to have better understanding of market place, building profitable
relationships, demand of the customers, customer driven marketing strategy and offer quality
to the customers in this modern business scenario. Consequently, the main aim of the current
essay is to understand the role of marketing and its relations with other functions of the
organization. In this regards, Inter-continental Hotel is being taken under consideration. It is a
British Multinational hotel company having more than 5000 hotels all across the world. The
study will analyse the marketing mix of the hotel and will compare with some other
hospitality organization. The later part will throw light on marketing plan to achieve the
marketing objectives of the hotel.
TASK – 1
P1 Explaining the key roles and responsibilities of the marketing function within Inter-
continental hotel
According to the American Marketing Association (AMA), marketing is a continuous
process that supports the business organizations to transfer the products and services to the
final consumers. Further, it is nothing but an activity related to product distribution that
abandons marketing research as well as market segmentation (Hooley and Graham, 2008).
This definition of marketing alters with the changing trends in the market. In this current
competitive world, customers are of supreme importance to the firms and in case of Hotels it
increases by manifolds. Inter-continental Hotel group is also engaged rendering quality and
effective services to their guests so as to make them gratified. Seeking help from the
marketing function, the hotel is not just offering products and services to their clients but in
fact they are accomplishing their desires as well. Thus, it can be attributed that the growth of
the hotel pertains to the marketing strategies being adopted by them. There are many brands
within Inter-continental Hotel such as Holiday Inn, Crown Plaza, Candlewood suites,
Kimpton Hotel etc. The main aim of Inter-continental group is to provide fast and friendly
services to their customers, quality products, clean restaurants and value in the menu being
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offered (IHG, 2018). The main roles and responsibilities of function of marketing is being
defined below:
Roles and
Responsibilities
Execution in Inter-Continental Hotel
Selling
This is being regarded as one of the most important roles of marketing
function, as it is related with the overall sales of the hotel. For selling
the products and services in the market, different techniques is used by
hotel from time to time. Further, to achieve high sales figure, the inter-
continental hotel pay emphasis on comprehending that marketing is
diverse from selling and determines the needs of the target market.
With this, they attract large customers towards the hotel (Michael, Hitt
and Robert, 2004).
Distribution
It is also equally vital to understand the ways through which products
and services are being sold or given to the customers. It is the
responsibility of the marketing function to manage and maintain
distribution channels like online booking, alterations in the web page,
computer reserve system etc. Further, for commercialization the
products, the hotel makes use of channels of distribution.
Market
Research
Inter-continental hotel performs market research in order to identify
the taste and preferences of the customers and to determine the
potentials customers. With this, requirement of the target group and
prevailing competition in the market can be analysed (Sanderson,
2008).
Financing
Another important role being performed by marketing function of
inter-continental hotel is financing. When the hotel develops
marketing plan numerous aspects are being involved that involves
high costs. For getting maximum return more investment is made by
the hotel. The main role of financing function of marketing is to return
the money back being invested by the hotel in long run and helps in
making the marketing plans which are achievable, believable and
understandable. Further, budget and also sources of finance for
marketing plan is decided by this function (Lancaster and Reynolds,
2004).
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Therefore, from the above discussion it can be said that marketing function of Inter-
continental hotel has numerous roles and responsibilities which needs to be carried out
effectively for achieving growth. In the present era, there is intense competition in the market
and thus, inter-continental hotel has budged their focus towards providing products and
services which offer added value to their patrons, community, partners and stakeholders. All
these marketing functions have different roles to promote growth in the hotel. Thus,
marketing function has a crucial role to play in the company and is closely linked with the
other functions of inter-continental hotel.
P2 Roles and responsibilities of marketing relate to the wider organisational context
Throwing light in relation with the term marketing, it is not just constrained with
selling and advertising of the merchandise of the organization but actually it rather a helping
hand that determines the requirements of the customers in the market (McKenna, 2001). A
strong relationship do exist between marketing functions and other functions of inter-
continental hotel.
Since the hotel is related with hospitality industry and part of service sector, there are
many functions needs to be performed to align with the pace of the world such as room
division, front office, food and beverage department, finance and accounting department,
human resource management etc. Each and every function in the hotel have their different
methods, procedures and standards of carrying out operations. However, there activities are
directed for accomplishing the common goals of the hotel and they have some of the other
relation with the marketing function of inter-continental hotel (Graham, 2009). Therefore, it
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Marketing
Front Desk
services
Reservation
Purchasing/
Accounting
Human
Resource
Management
Food and
beverage
Room
Division

is very crucial to evaluate the inter-relationship of various functions and marketing function
of inter-continental hotel.
Function Roles Responsibility Inter-relationship with
each other
Human
Resource
Management
Human resource
management
function of inter-
continental hotel
plays a vital role,
as their main
purpose is
attracting,
retaining, training,
developing and
appraising the
human capital
within the firm.
Numerous staff
members are required
to perform daily
operations of the hotel
ad thus, the HRM
function is responsible
for HR planning,
recruitment, selection,
performance
management and
training and
development of all the
employees (Rieple,
2008).
HRM and marketing
function are inter-
connected as the hotel
will require workforce for
conducting marketing
research, making plans,
implementing strategies
etc. The developmental
needs is analysed by the
HR department and
training is being rendered
accordingly so that goals
are accomplished
Finance and
Accounting
The role of Finance
and accounting
department of
inter-continental
hotel is to manage
all the financial
activity within the
firm.
They are responsible
for monitoring the
financial transactions,
processing payrolls,
operating data,
preparing financial
statements, internal
reports etc.
The marketing function of
the hotel need to work
closely with finance
department to make sure
that there is adequate
budget for meeting out the
needs of promotion,
research and distribution.
Food and
beverage
The main role of
Food and beverage
department of the
hotel is to promote
positive influence
towards the guests
by extra-ordinary
The main
responsibility of F&B
department within
inter-continental hotel
is maintaining high
quality services and
food quality, food
The marketing department
also requires to closely
work with this department
as well so as to make sure
that adequate research and
development is being
planned to satisfy the
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services and food
quality
costing, managing
restaurants, bars and
other services, keeping
high standards for
cleanliness etc.
needs and wants of the
guests, proper food item
can be produced (Griffith
and et.al, 2014). Further,
volume of order being
generated by marketing
team can be fulfilled
within the time schedule.
According to Katz and Kahn, the interaction between the marketing function and
other functions of the organizations can be regarded as a specified form of open social
system. Throwing light towards the open social system, it involves a group of two or more
individuals, functions or departments that interact with each other and exchange things of
value on a regular basis. From this statement, it is not peculiar to say that each and every
department of the organization is inter-connected with each other (Ruekert and Walker,
2007). Their behaviour is being directed to achieve a common objective. As in the case of
Intercontinental hotel, the marketing department within the hotel requires back up by other
operational departments so as to perform effectively. For instance, if the marketing
department of Inter-continental hotel want to offer some discount on particular services or
products than it is necessary for them to communicate effectively with finance as well as food
& beverage department of the hotel initially and then decided upon a particular strategy. Thus
it is rightly said that marketing department is separate entity in the organization however each
and every department as well as functions are linked and inter-connected for increasing the
profitability of the business concern (Schminke, Ambrose and Cropanzano, 2000).
TASK – 2
P3 Comparing the way of applying the marketing mix to the marketing planning process to
achieve business objectives by different hospitality organizations
Elements of
Marketing Mix
McDonalds Inter-continental Hotel
The product of McDonald mainly
includes food and beverage
products such as salads, snacks,
desserts, hamburgers, sandwiches,
The hotel offers luxurious stay to
their customers which includes
numerous rooms, suites, bars,
restaurants, pubs, swimming
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Product
chicken and fish. Further, for
breakfast purpose McCafe is being
designed by the firm. These
products are offered considering the
viewpoint of the customers. The
firm also provide special discounts,
advertisements and variation in the
name of the product (McDonald’s,
2017).
pool, modern amenities,
refrigerator, TV’s, interiors, arts,
food and beverage services etc.
Inter-continental hotel is making
efforts to improve their facilities
as well as services by introducing
free mobile phones to business
customers.
Price
Wide range of techniques are being
adopted by the company to sell
their products in the target market.
The main aim of McDonald is to
offer food at competitive value
driven price. Further, they have
diverse pricing strategies for
different outlets pertaining to
demand and competition. The
franchisee can set their own pricing
as per their local market
On the other hand, the inter-
continental hotel adopts premium
pricing policy, as their target
market is higher income level
group and are engaged into
offering quality products and
services to their clients. The hotel
is marketing itself as a luxurious
segment rather than a price
leader.
Place
It involves different distribution
strategy being adopted by the
company. McDonalds have varied
strategies in different nations. They
offer home delivery in some
nations, somewhere it opens for 24
hours and considers intensive
distribution strategy. By adopting
this strategy, the firm make sure
that all the products are made
available for sale by all possible
channels of distribution.
It is being regarded as the most
vital in case of luxury hotels like
inter-continental hotel group.
They hotel make sure that there
properties are being located in
prime location. The key assets of
the hotel is having properties in
the best of locations in major
cities of the world. Further,
storage, distribution costs and
inventory are kept at the hotel at
acceptable levels (IHG, 2018).
The advertisements of McDonalds
are quite noticeable among its
The inter-continental hotel relies
mainly on promotions and
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Promotion
techniques of promotion. They
make use of newspaper, magazines,
television, internet and media
outlets for communicating with
their patrons. In addition to this,
varied sales promotion tools like
six cups of tea/coffee and collect
six stickers. Moreover, coupons and
discounts are also offered on
certain products.
The restaurant also offers discount
coupons and freebies for certain
products (Anitsal, Girard and
Anitsal, 2012).
advertisement of their brand.
They makes use of travel
advisory and travel management
websites for promoting their
products and services in the target
market. Other than this, the hotel
also mainly depends on word of
mouth marketing.
.
People
More than 90000 people work
within the company in United
Kingdom and Northern Ireland.
Around £40million is invested by
the firm to offer training and
development to their valuable
employees. McDonalds makes sure
that their staff members are
satisfied as then only they will
deliver excellent services to their
customers.
Employees within different
department of the hotel has
played a significant role in
offering extra-ordinary
experience to the customers.
They have 24 hour room staff so
to provide privileged services to
their guests to offer food from
their rooms. Further, there are
many expatriate staff in the hotel
and thus, training and
development sessions is arranged
on a continuous basis.
Process
Numerous activities are being
undertaken by McDonald to deliver
products and services to their
customers. The food preparation in
the restaurant is quite transparent
i.e. the customer can easily see how
cooking is done. Other process are
Since, Inter-continental hotel is
luxury hotel they need to be very
process oriented. They carry out
their operations with lowest
possible costs. The hotel has
fixed processes for their routine
activities as well as to cook food
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related to how orders are being
placed, how much time the
customer is waiting for their food
and how they are being offered
services by the customer care
assistants.
for their guests. Just-in-time
technology is being used by the
hotel that helps in delivering right
quality to the customers (Rafiq
and Ahmed, 2005).
Physical
Evidence
It deals with the physical
environment being experienced by
the clients within the café. The
functions of McDonald is mainly
influenced by the physical
evidence. For instance, the interior
of the restaurant is quite attractive,
clean and hygienic. Many outlets
have play zone for kids as well and
nice sitting arrangements to hang
on.
For inter-continental hotel,
physical environment as well as
infrastructure is a part of service
experience. The property of the
hotel is architectural as it includes
various décor in interiors and
exteriors of the hotel.
Marketing tactics for achieving objectives
 Using content marketing – Seeking help from this tactic, the hotel can achieve their
desired marketing objectives. With the help from content marketing strategy, the hotel
can make sure that fresh content is being added to the website of the hotel regularly
and can draw the attention of the visitors. Further, the content can be shared all
throughout the spectrum of social media platforms for increasing views. For example,
Inter-continental hotel can produce a blog, web articles and video content (Ivy, 2008).
 Marketing the Unique Selling Preposition (USP) – This is considered as an important
strategy for accomplishing the objectives of the hotel. The inter-continental hotel need
to have something which makes them unique and different from the other hotels in the
market. For instance, the USP of the hotel is their luxurious services and properties.
This needs to be promoted and this identify should be conveyed to all the marketing
channels of the hotel.
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TASK – 3
P4 Marketing plan for Travelodge to meet out marketing objectives
Poster presentation of basic marketing plan
In order to produce a basic marketing plan for Travelodge, which is launching a
premium economy rooms called “Super-rooms” all across the United Kingdom because the
firm want to push their current services and products to professionals. Pertaining to this,
various steps are required to be adopted like situational analysis, setting marketing objectives,
formulating strategies as well as tactics, undertaking actions and finally monitoring and
controlling (Moorman and Rust, 2009).
Coherent and evidence-based marketing plan which makes use of marketing mix to meet
marketing objectives for Travelodge
9
Internal capabilities of
Travelodge,
competitor analysis
and insight of the
customer
Customer
satisfaction,
efficient
services,
Money
saviour
Process of
reporting
and
actions
Resources
and skills
Processes
Responsibiliti
es and
structures Marketing mix of
Travelodge
Market
segmentation
, target
market and
positioning
strategies

Competitor’s analysis (Porter’s five force model)
 Competitive rivalry – The degree of competitive rivalry is quite high, as there are
numerous 5 star hotels operating in UK and Travelodge is competing with them with
cheapest budget and high standard infrastructure and services (Deshpandé and
Webster, 2009).
 Threats of substitute – The main substitutes of Travelodge is corporate guest house
for business travellers and other informal means of accommodation. These options are
cheaper than other hospitality organizations and thus, switching costs is quite low.
This makes the attractiveness of industry in relation with substitutes low.
 Bargaining power of suppliers – The overall supplier power of the company is low, a
there is huge supplier market and there is strong competition.
 Bargaining power of buyers – The bargaining power of buyers is low for Travelodge,
as there are numerous customers of the company and loss of one will not impact them.
 Threat from new entrants – The threat of new entry is relatively low as the hotel
makes use of its strong bran to attract customers. Further, the profitability of the
company is higher than the individual operations (Brody, 2009). A new hotel cannot
compete with well-established players in relation with services, quality and price.
Marketing objectives
 High product quality
 High level of customer satisfaction
 To become price saviour
 To earn reasonable profits
 Providing Efficient services
 Promoting the new launch of “super-rooms”
Marketing Strategies
 Segmentation – In this strategy, Travelodge segments there UK market on the basis of
demographic segmentation such as income level, age, gender etc.
 Targeting – At this stage, the company further narrows down their segment and thus,
the target market for the firm is business professional of age group 25 to 45 years.
 Positioning – With this, the company makes efforts to create image in the intellects of
their target customers. They are positioning themselves as best quality provider of
accommodating services by making use of digital platforms such as Twitter,
Facebook and internet marketing (Guido and et.al, 2014).
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Business objectives Marketing mix and
strategy
Tactic Monitoring and
evaluation
To become price
saviour and earn
reasonable profit
They need to follow
average pricing
policy so that
business
professionals can be
targeted
Better research and
development and
cost effective
processes
Supervisory control
on each and every
activity
High product quality
Provide quality
rooms with better
amenities such as
internet, video-
conferencing,
network connectivity
etc.
Developing better
product team, better
analysis for service
providers (Jha,
2010)
Appointing
specialized
supervisors to
control the activities
Customer
satisfaction
Role of people
strategy is crucial as
people are the core
asset of the firm.
The company should
hire professional
service provider
Improving their
skills concerning
body language,
inter-personal,
communication etc.
Establishing
customer feedback
programs
To establish
properties in highly
professional areas
to achieve this
objective, the
company should
establish their
properties in areas
To have better
knowledge of the
operating areas.
Better cost analysis
plans and techniques
should be applied
according to the
operational places.
Promoting the new
launch of “Super-
rooms”
The main focus of
the company is to
target business
professionals and
thus digital focus is
quite vital
Internet marketing,
social media like
Twitter, Facebook
etc. should be used
(Kotler, P. and
Armstrong, 2010)
Active on social
media, information
gathering and
supporting
campaigns
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CONCLUSION
Thus, from the present research project it can be said that marketing function is
essential for determining as well as satisfying the requirements of the customers. It was found
from the study that better marketing principles, concepts and tactics are being applied in the
hotel such that no problem arise in near future. It has been further observed that the hotel has
great potential to compete in the industry and by adopting such strategies they will overcome
their weaknesses as well.
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REFERENCES
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Online references
IHG. 2018. [Online]. Available through: <https://www.ihg.com/content/us/en/about/brands>.
[Accessed on 17thOctober 2018].
McDonald’s. 2017. About McDonald’s. [Online]. Available through:
<http://www.mcdonalds.co.uk/ukhome/Aboutus/Newsroom/facts_and_stats0.html>.
[Accessed on 18thOctober 2018].
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