Marketing Strategies for Hospitality Industry

The assignment discusses the importance of marketing in the hospitality industry to attract a larger segment of travelers. It covers various concepts used by hotels to develop successful strategies, including segmentation, targeting, positioning, pricing, and promotional mix. The assignment also highlights the impact of macro and micro environment factors on marketing and provides references from books and journals.

Marketing in
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concepts of Marketing.....................................................................................................1
1.3 Relevance of consumer markets in industry.....................................................................4
1.4 Rationale for development of different market segments................................................4
TASK 2 ...........................................................................................................................................5
2.1 importance of the components of marketing mix.............................................................5
2.2 Pricing strategies and policies..........................................................................................6
TASK 3............................................................................................................................................7
3.1 Role of Promotional Mix..................................................................................................7
3.3 Importance of sales promotion and public relations ........................................................7
4.1 Necessity of Market Research..........................................................................................8
TASK 4............................................................................................................................................8
3.2 Advertising Campaign......................................................................................................8
4.2 market research ................................................................................................................9
4.3 Suitability of different media for marketing...................................................................10
4.4 the implementation of the marketing plan.....................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is a phenomenon which is beneficial for every industry. It is a concept that
involves strategies for attracting customers for buying company's products or services. It is
necessary for a company to sell their offerings in order to gain profit to sustain in market for
longer duration. In hospitality industry, customers are attracted to persuade them for availing
their services (ALI, 2015). Following report includes the concepts of marketing and assessment
of impact created by marketing environment in this sector. Relevancy of consumer market and
rationale for developing segment has been discussed. Importance of components which are
involved in marketing mix and pricing strategies as well as policies of this industry is depicted.
The role of promotional mix and sales promotion is provided and acknowledgement regarding
public relation is stated for providing strategies related to effective efforts for promoting Qbic
Hotel brand.
TASK 1
1.1 Concepts of Marketing
Marketing can be defined as the activities which comprise of buying and selling a
particular services or products. It can include selling, advertising as well as delivering various
products or services to customers of the market. Following are the concepts which are involved:
The production concept- It states that while formulating any idea regarding the
production of any service, Qbic hotel focuses on the preferences and behaviour of customers as
they are very price sensitive and require quality at low cost. They provide such kind of offerings
at prices which are affordable by customers for availing them.
The product concept- It involves the concept of products or services which must be in
such a way that it should be unique and perfectly suitable for satisfying their needs and
requirements. Qbic Hotel focuses on providing the quality services and tries to develop some
innovation which can create an impact on consumers who are availing their services.
The selling concept- It states that services must be formulated in such a way that it must
be preferred by the consumers (Babin and Zikmund, 2015). First of all, need of target segment
must be assessed in order to compete with other competitors who are present in market. As for
maintenance and good revenue earning, it is important for Qbic to focus tactics which can
enhance their sale.
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The marketing concept- It comprises of ascertaining what will be the requirements of
customers and what firm can develop that can completely satisfy them and also those factors
which makes a customer satisfied. It provide them an opportunity to develop an effective
service.1.2 Impact of marketing environment on Qbic Hotel
There are two types of marketing environment which affect various operations and
functions of this firm. These are discussed as below:
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Illustration 1: Macro and Micro Environment
Sources: The Impact Of Micro and Macro Environment Factors on Marketing

Micro Environment
This surrounds factors which are involves small forces that are present in company and
can lead to affect the ability of serving. Some of those are:
Customers- They are considered to be the most influential aspect as major aim of every
firm is to understand their needs which are dynamic in nature.
Suppliers- It supplies all inventories and other kind of important resource and their in
cooperation can cause many losses.
Employees- This aspect is related with workers whose working performance can affect
the productivity of hotel. Therefore, it is essential for making them work in a coordinative
manner.
Competitors- As market is full of competition and functions of Qbic Hotel gets affected
by rivals due to their several strategies which tends to attract their consumers. Thus, resulting in
decrease of sale.
Macro Environment
These are the external factors which affect business strategies of a company and its
sustenance in marketing . Some of macro factors are discussed below:
Political- This factor is related with political scenario of an area which affects the
expansion of a business.
Economical- It is related with those factors which are involved in an economy such as
inflation rate, trade agreement, recession or boom and many other factors that influence the
financial strategy of a business.
Social- It represents the demographical features of individuals according to particular
location and their influence on strategies of a bushiness
Technological- It is related with technological feature which can affect the performance
of business activities.
Legal- These are related to all those regulations and policies which are enacted by
government for smooth functioning of business.
Environmental- It is related to climatic conditions as well as geographical features where
main structural building is residing.
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1.3 Relevance of consumer markets in industry
Market is controlled by all those services and products which are produced for potential
customers. Consumer Market can be bifurcated in four categories such as consumer, food and
beverage, retail as well as transportation products. There are several aspects which are developed
in consumer market which are completely relevant to it. Some of them are discussed in following
ways:
Developing Long term Relationship- It is very necessary in order to connect the emotion
of a customer with the product of particular brand in order to initiate a relation of trust ( Bilgihan
and et.al., 2016). It is very essential because development of such relationship makes the bond
strong and more effective.
Value and satisfaction- Qbic hotel focuses on the value of each customers and their
satisfaction level which is required for building an immense base of customers for effective
sustenance in market. This helps to attain the highest satisfaction level of customers.
Consumer Orientation- It is regarded as an important key for successful business. As
services which are provided must be oriented on the basis of customer preferences in order to
achieve their high satisfaction level.
Value Chain- A business should focus on delivering of maximum value which is
provided on least cost value that leads to create competitive advantages (Baker, 2016). All the
processes of production are taken in concern with producing more than being investing into them
production which will provide them product at affordable cost.
Decision Making- All commercial activities require decisions which are needed to be
made in order to take decisions related to investments and expectations of customers.
Customer Culture- Every society has different culture which is required to be influenced
by developing effective strategies for persuading them for their services.
1.4 Rationale for development of different market segments
Market segmentation is an important aspect because it provides division of customers
into several groups that have similar characteristics and nature. It is very important to bifurcate
particular market as it provides them an opportunity for formulating strategies according to these
aspects that can be impactful, providing a successful targeting and positioning of their services in
their mind set for attracting them to avail their services (Ebert and et.al., 2014). There are many
factors on the basis of which segmentation is done which are discussed as below:
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Geographic- This provides a base to divide segments on the basis of physical locations
which is generally based on geographical boundaries such as region, state or a country. It is
done for making strategies for different areas.
Demographic- It serves the grouping of market on the basis of their natural
characteristics such as gender, age, socio- economic status and income as well as size of family
or particular situation. It is done to provide essential products for every community according to
their necessity.
Behavioural- Under this category, segmentation is dependent on the buying behaviour
and consumption pattern of customers for different products which help them to assess their
attitude and perception related to different products or services available in market. It leads to
formulate effective strategies for convincing them for a product.
Psycho graphic- This segment is based on particular characteristic traits which
are associated to lifestyle, personality or social characteristics (Fahy and Jobber, 2012). These
aspects provides the base for thinking procedures developed for particular product.
TASK 2
2.1 importance of the components of marketing mix
COMPONENTS SPECIFICATION
Product Many services are provided by Thomas Cook
such as holiday packages, programmes for
luxurious destination, facilities for foreign
exchange, holiday deals, vacation offer for
various hotels, site tours, cruising and other
travel opportunities
Price The major pricing strategy which is followed
by it is skimming pricing which focuses on
customer who belongs to upper class level in
society and can afford high prices for availing
luxury services (Kotler, 2015). They tends to
value service more as compared to other factor
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specially the price which will be paid by them
for that service
Place They have opened their agencies across the
world and have expanded their business in
Asian and European nations for providing them
similar services related to travelling. They have
special agency services for countries like
Egypt, UK , Greece, Caribbean etc.
Promotion Promotional activities which they have used
for promoting their services across the world is
maintenance of their brand name by effective
positioning through various advertisement
campaign on television, radio and other printed
media such as hoarding, magazine as well as
their brochures which provides all information
regarding their travel agency and other offers
provided to customer.
2.2 Pricing strategies and policies
Every firm has their own pricing strategy to provide services which are affordable by the
customer of their target segment. Pricing is an important part of marketing strategy. Skimming
pricing strategy is adopted by Thomas Cook for attracting larger segment of target customer. In
this, the company usually sets up high prices for their products which tends to eliminate
unwanted customers of market and attract those segment for which the strategy has been made.
The particular group of customer for which strategy ha been made normally focuses on the
quality and the luxury of services that is provided for them and in result they pays the particular
high amount (Mason, 2015). This policy of pricing provide an effective development of their
brand name which maximises their reputation in market that serve to increase the customer for
their services. The strategy controls the psychology of customers by highlight the value of their
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services instead of high prices which are offered by them. There various advantages which are
associated with them that are discussed as below :
 It facilitates in recovery of cost which is related to research and development that can be
invested for new product development.
 The customer of this segment does not demand for bargaining and they are not affected
by the price which is offered to them.
 From this strategy, one can derive high amount of profit which can be measured for a
great development in business.
 It develop a sense of status for the brand name in market.
TASK 3
3.1 Role of Promotional Mix
Role of several Promotional mix are defined below :
Public relations- It is used by hotels for developing a relation with their consumers
which tends to increase their trust that maximise their chance for getting preferred over other
competitor for availing services for next time. It helps to develop loyal customers.
Sponsorship- In this, several event are organised by firm by provide host funds for
successful conduction of programmes. This provides advertisement of brand at local level. There
are various types of formal and informal programmes which are facilitates under their name
which provides an promotion of their name.
Personal selling- It tends to provide service to customer directly and helpful in gaining
suggestions as well as feedback for their brand. It develop a direct communication level with
their consumers.
Advertising- It is a creative way for attracting customers and provide broadcasting of
their advertisement to mass which attract customers across the world (Page, 2014). It is the
innovative way of persuading customers in a shorter duration
Direct Marketing – It is also known as direct selling in which sales person are hired
which contact and male customers directly in the market
Sales promotion- These are done on seasonal bases by providing offer such as discount
in order to attract potential customers and develop a strong base of consumers and earn high
profitability by increasing sale through these offer.
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3.3 Importance of sales promotion and public relations
Sales Promotion- Under this strategy, various offer are introduced for increasing sales
for a time period. It has an effective role for promoting brand name of Qbic Hotel such as
 It leads to develop new customers which can increase their turnover amount of the sale
by conversion of potential customer into their regular consumers.
 Existing buyers are provided extra privileges through sales promotion which makes them
loyal to their brand.
 It provides elimination of all middle man which used to acquire benefits from both side.
The deal of sale is done directly between company and the customer.
 It helps to maintain as well as develop relation with their buyers on positive terms
Public Relation- It focuses on building up of effective relation of Qbic hotel with their
customer and its role can be defined in following way:
 It provides a better source for communicating which is beneficial for strengthening their
relation.
 It serves effective solution for all the problem because customer can directly convey it to
the company itself.
 This lead to increase the advertisement of brand through word of mouth in future purpose
which can be beneficial for their brand name in future.
4.1 Necessity of Market Research
 It make the company able to formulae strategies by procuring accurate information and
data related to several aspect of market where it will launch the product.
 It helps in estimation of the exact amount of product or services which are needed to be
produced and delivered to avoid any shortage or wastage.
 Strategies for marketing can be invented which can provide effective increase their sales
and revenue generation in target market (Xiang, Magnini and Fesenmaier, 2015).
 It help to find out loop hole between the understanding of company and expectation of
customer for providing high satisfaction.
 It tries to find out all the obstacle and remedies for the removal in order to make
successful business plan for implementation.
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TASK 4
3.2 Advertising Campaign
Target Audience Leisure travellers
Objective To gain customer base of travel market
Advertising problem Selection of best platform for advertisement
with low cost
Advertising Budget £25,000-£30,000
Media Plan Social Media platforms and broadcasting
Advertising Message Stay with Comfort
Advertising strategy The ads will deliver experience and
recommendation of regular customer.
Duration 12 months
4.2 market research
Primary research will be conducted through taking survey for which Questionnaire has
been provided below :
Questionnaire
1. Categorise yourself in provided choices
Business Travellers
Frequent travellers
Leisure Travellers
2. Do you know about Qbic Hotel ?
Yes
No
3.How was your experience with them
Excellent
Average
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Poor
4. For a selecting a hotel, what are your expectations ?
Luxury Services
Affordable Prices
Ambience
All of the above
5. Would you like to visit Qbic Hotel after this session ?
Sure
Not Sure
May be
4.3 Suitability of different media for marketing
Type of Media Suitability
Print Media Require less cost and can be very informative.
Platform which can be used are newspaper,
magazines, brochures, hoardings. It will lead to
attract customer on regional basis.
Non Print Media Effective and creative source but require more
cost for implementation. The platform which
can be used are broadcasting advertisement in
televisions and radio which will lead to attract
mass audience but will be less informative.
Social Media It has a reach to audience present across the
world requires skilled candidate for organising.
Instantaneous approach. Time and Cost
effective.
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4.4 the implementation of the marketing plan
Marketing plan is very necessary in order to build up a framework which is required for
enlightening marketer for developing strategies to increase the sale as well as promoting it to
customers for an effective growth of the business.
Objectives  To attract larger segment of leisure
travellers
 To increase the consumer base by 6%
 To make effective promotional
strategies
Target Markets Target market will be hospitality and travel and
tourism.
Strategies For pricing the strategy which will be used is
penetrating pricing and skimming according to
the service which will be provided. Social
media will used fro advertising as it will cover
larger audience
Time Limit 6 months
Budget £35,000 –£ 40,000
CONCLUSION
It has been concluded that marketing is very essential in hospitality industry to attract
larger segment of traveller for availing their services. There are various concepts which are used
in marketing by the hotel for developing their successful strategies. Apart from this there are
various macro and micro factor that impacts the functioning of the firm in many way therefore it
is very important to assess them in order to provide effective product and services and
sustenance in respective markets. Promotional mix is very essential fro promoting the product in
various markets through several way such as sales promotion, personal relation, advertisement
etc which are necessary in order to attract customers. Apart from this, segmentation is very
necessary which is done on many grounds such as behavioural, psycho graphical, geographical
and demographical that helps to provide effective positioning of their product.
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REFERENCES
Books and Journals
ALI, M. A. B., 2015. Travel and tourism management. PHI Learning Pvt. Ltd.
Babin, B. J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Baker, M. J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Bilgihan, A. and et.al., 2016. Consumer perception of knowledge-sharing in travel-related
online social networks. Tourism Management.52. pp.287-296.
Ebert, R.J. And et.al., 2014. Business essentials. Pearson Education Canada.Koontz, H., 2010.
Essentials of management. Tata McGraw-Hill Education.
Fahy, J. and Jobber, D., 2012. Foundations of marketing.
Kotler, P., 2015. Framework for marketing management. Pearson Education India.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Page, S. J., 2014. Tourism management. Routledge.
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services. 22.pp.244-249.
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Online
The Impact Of Micro and Macro Environment Factors on Marketing. 2018. [online]. Available
Through <https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-
and-macro-environment-factors-on-marketing/>
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