Marketing in Hospitality

This report examines the concept of marketing in the hospitality industry, using Holiday Inn as a case study. It analyzes the impact of the marketing environment, the relevance of consumer markets, and the importance of market segmentation. The report also analyzes the components of the marketing mix and pricing strategies, and discusses the implementation of a marketing plan. Desklib provides past papers and solved assignments for students.

MARKETING IN
HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
P1 Discuss concept of marketing for service industry...........................................................1
M1 Identify and apply strategies to find appropriate solution...............................................4
M3 Present and communicate appropriate findings...............................................................4
1.3 Relevance of consumer market .......................................................................................4
1.4 Discuss the rationale for developing different market segments......................................5
D1 Use critical reflection to evaluate own work and justify valid conclusions.....................6
2.1 Assess the importance of components of the marketing mix to the industry...................7
M2 Select design and apply appropriate methods..................................................................8
D2 Take responsibility for managing and organising activities.............................................8
2.2 Analyse pricing strategies and policies in relation to hospitality industry.......................8
4.4 Implementation of the marketing plan ..........................................................................10
D3 Demonstrate convergent/ lateral/ creative thinking........................................................11
TASK B.........................................................................................................................................11
Covered in PPT.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing refers with a way of promoting products and services of the company as more
and more people know about it. It ensure growth and success of any service industry including
hospitality as well. It is essential for managers to conduct market research in order to analyse
customers' needs and wants, then develop marketing strategies for growth and development of
business organisations (Alserhan, 2016). In hospitality marketing, it is required to understand
market trends, knowing segments and acquire an effective marketing tool so as to increase
market share. An effective marketing tactics also aid companies to obtain high competitive edge
and goals over the market.
Holiday Inn is the chosen organisation for completion of this report. It is a British owned
United State brand of hotels and its parent organisation is InterContinental hotels group. Holiday
in was established in the year of 1952 and known as one of the world's largest hotel chain by
having 1145 hotels across the globe. Main services which are offered by the company is food
services, lodging, meetings and conventions etc.
Apart from this, the present assignment is going to be described concept of marketing and
its impact on an industry. Different market segments and components of marketing mix will also
defined briefly. Hospitality industry is required to use suitable pricing strategies and policies thus
to gain high competitive edge. Furthermore, there will be a discussion on various media
approaches for marketing of products and services.
TASK A
P1 Discuss concept of marketing for service industry
In hotel industry, marketing plays a crucial role as it helps leaders to satisfy needs and
wants of customers in the hotel. These companies are having broad range of services, i.e.
restaurant, accommodation, dinning, leisure etc. thus to manage them effectively there is needed
proper knowledge of market (Apostolopoulos, Lemke and Sönmez, 2014). Therefore, Hotel
Holiday Inn uses several customer retention tools and techniques to recognise clients' needs and
wants.
Following is defined various marketing concept which are discussed as under - Production concept – It states that customers' will only favour products which are highly
available and affordable. Production concept led marketing myopia in which
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management focus on improvizing its production and distribution efficiency. Thus, most
of the business association acquire this orientation in order to enhance its production
capabilities and make products available among customers. But it must be considered that
products are enable to meet customers' wants or requirements in most effective manner.
This marketing concept also refers that if firm has available enough products then sales
team will easily sale them among large group of customers. Product concept – In this modern era, customers will only prefer those goods and
services which carries high quality and best features as opposed to normal products.
Product concept also applicable in hospitality sector in which there is tough competition.
The marketing concept signifies that, if a company provide quality products and set
reasonable prices; then it will easily gain high market success by putting just little
marketing efforts (Mareï and Blanquart, 2016.). While following product concept, it is
suggested to companies as they must concentrate on technology which gives attractive
features or make innovative services for gaining optimum customer satisfaction level. Selling concept – This marketing orientation holds the idea that, customers' will not buy
firm's products unless a large scale selling and promotional efforts will not be acquired.
In selling concept, management emphasis on making higher sales revenues instead of
creating long term or profitable public relations (Baker and Magnini, 2016). Along with
this, the main aim of this approach is to sell which is produced rather than fulfilling
market needs and wants. Sometimes, such aggressive marketing concepts may carries
high risks or uncertainties. Henceforth, to minimise these risks firms are required to
undertake effective promotional and selling techniques so as to ensure their market
growth and success.
 Marketing concept – It entails with fulfilling needs and demands of target audiences by
delivering them value (Zorin and Prikhodko, 2015). Marketing concept holds that
accomplishment of organisational goals can be obtained with providing customers' high
satisfaction level. Under this, market trends and values are the prime route of obtaining
high sales and profitability.
1.2 Impact of marketing environment on hospitality sector
Marketing environment plays a crucial role in succession or failure of a business
organisation. Hotel Holiday Inn operates in internal and external environment which keeps
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changing continuously. Marketing environment put a huge impact on decision making process of
companies by creating either opportunities or threats. Following is defined certain factors which
may affect working activities of Holiday Inn in direct and indirect manner -
 Political or regulatory factors – It involves federal, state and local authorities which sets
out laws or restriction on business organisations. Political factors also relates with taxes,
duties, VAT, tariff rates, foreign exchange rates etc. UK government also make certain
reforms in order to create a much better environment for development of hotel industries.
British government agencies proposed plans in order to sponsor holidays for people who
does not have money to travel (Berezina and et. al., 2016).
 Economic factors – It includes wage inflation, price inflation, exchange rates, gross
domestic product per capita, disposable income of people etc. In UK, after economic
recession labour wages aren't increased thus still people are able to spend more on leisure
and travelling activities. Due to which, GDP of the nation also goes down because
customers' spending patterns are changed. Apart from this, after Brexit Pound is
weakening against Euro which may also be another downturn for UK economy.
 Technological factors – Nowadays, technology has vastly affected hospitality industry as
many new trends are being come up in this sectors. Companies, i.e. Hotel holiday inn is
using different mobile applications or software which allows to users to find out their
nearest branches of Holiday Inn via GPS. It also helps customers to check availability of
rooms and prices. Beside this, in this modern era customers' can gain information about
accommodations or check ins through different social media platforms, i.e. Facebook,
Twitter, Instagram. By using these tools, managers can also recognise current market
trends, competitors strategies and further cultural aspects of a markets (Zorin and
Prikhodko, 2015). Therefore, if hospitality industries will use advance technologies then
they can obtain high competitive edge.
 Social and cultural factors – Values, beliefs and attitude of customers are fluctuating at
fast pace. Due to changes in lifestyle and living patterns, consumers' are demanding new
and innovative products which gives them higher level of satisfactions (Bowen and Chen
McCain, 2015). For instance – products and services which are harmful for society must
be eliminated as it represents firms are aware towards social responsibilities. In
hospitality sectors, services have to be environmental friendly.
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Therefore, by considering all those factors Holiday Inn will enable to develop an
effective marketing plan and gain strategic goals or objectives in a certain time period.
M1 Identify and apply strategies to find appropriate solution
In this defined various strategies and plans which support in developing organisation with
the help of effective marketing. Holiday Inn is dealing in service industry and provide various
hospitality services including lodging, hotel rooms, foods and beverages, cab facilities and
sightseeing of any visiting purpose. Therefore, they are trying to adopt best strategies for
attracting number of visitors towards hotel so that Holiday Inn can get competitive advantages.
M3 Present and communicate appropriate findings
From the above informations, it has been founded that marketing environment is
surrounded by various factors that must be considered by Holiday Inn while making strategies
and producing plans as well. It is necessary to undertake an adequate marketing study for
achieving competitive advantages in which they focus on current trends, fashions, customers
choices, preferences and tastes, market situations and many more through conducting research.
Hospitality industry is growing rapidly so there is required for Holiday Inn to formulate effective
strategies
1.3 Relevance of consumer market
Consumers are primary part of hotel industry as they are key components to ensure
growth and success of companies. Consumer markets are defined as markets in which goods or
services are designed for dominating customers at markets. These are mainly classified into four
categories, such as – consumer products, retail products, food & beverages products and
transportation products. Relevance of consumer market in hospitality industry can be determined
through long term relationship, consumer orientation, value, satisfaction and value chain.
Following is defined relevance of four aspects on which selection of consumer markets are based
upon -
 Long term relationship – It builds effective even emotional connection with target
audiences of a brand which lead ongoing business activities and functions. For this
purpose, management should focus on offerings quality services to customers instead of
one time sales.
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 Value and satisfaction – It creates customers rather than just a consumer by offering the
value for money and exceeding their expectations what people are look for. For this,
company can provide low costs products to target audiences because it is cheaper to
retain customer than getting new ones (Bowie and et. al., 2016).
 Customers' orientation – Its a key to accomplish business and marketing goals. Holiday
Inn can attain and retain its customers through staff as if employees are trained and well
qualified they enable to attract people's eye towards the brand (Peterson and Ajjan, 2015).
 Decision making – Most of the marketing decisions relies upon the type of investment
and what the customer wants.
 Customer's cultures – It implies influencing customers by advertisements or promotional
channels that appeals a specific cultural. In hospitality industry, companies can promote
eastern cultural in its marketing plan.
Along with this, consumer market are crucial for hospitality industries, i.e. Holiday Inn as
it allows them to make purchases of products and services. Here, decisions are relies upon how
to involve customers, there are three types of decision making processes, i.e. extensive, limited
and routine. In which Extensive decisions are taken when a product requires high investment
whereas limited decision making process is acquired when company has an experience with
product and only limited decisions are to be taken. At last, routine decision making process it is
used to make day to day decisions (Chrisman, Memili and Misra, 2014). Therefore, it can be said
that consumer markets are vital for hotel industry as it supports Holiday Inn to create impeccable
tactics. It contributes in profitability and obtaining loyal consumers by making long term
relationship strategies. In order to gain value and satisfaction from consumer markets there must
be needed to provide new and innovative products carrying high quality; it also build long term
customer relations.
1.4 Discuss the rationale for developing different market segments
It is essential for every organisation to understand needs and requirement of customers
which helps them in developing its products and services accordingly. In relation to this,
organisation often prefers market segmentation for understanding customers behaviour. In
context to Hospitality industry, organisation of this sector divides complete market in small
segment fro understanding requirements and wants individually. In context to Holiday inn, its
marketing manager have formulated several strategies according to segmentation. This also
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suggest the marketing in developing every product in more effective manner which provides
maximum level of satisfaction to customers (Cook, Hsu and Marqua, 2014). Market
segmentation is done on the basis of demographics, behavioural, geographic and psychographic.
In context to Holiday inn, its manager have done segmentation which are evaluated as below: Demographics segmentation: In this customers are separated on the basis of age,
income, family, occupation and gender. It helps the firm is making their strategies
according to customers and tries to attain attention of customers and also persuades them
to remain loyal with the company. Geographic segmentation: In this, customer are separated according to their nation,
regions, cities and states. In relation to this, manager of Holiday inn have developed their
services on the basis country (Gómez, and Martens, 2015). For example: If Footprint of
holiday inn is in UK then their services like food and beverages will include speciality of
that country. This attracts clients from other countries to try their speciality.
 Behaviour segmentation: In this customers of organisation are divided on he basis of
attitude, knowledge and responses. Manager of Holiday inn are formulating various kind
strategies to deal with the customer of different behaviour in their daily routine schedule
(Gayle and Goodrich, 2014). In relation to this various kind of training session are
conducted at workplace for developing interpersonal skills of each employee which
helps them in satisfy requirement of every client.
All the above mentioned type of market segmentation are beneficial for Holiday inn as it
helps this hotel in understanding needs and requirements of customer on the basis of their
segments. Along with this, it simplifies work of marketing team as they can make more effective
strategies which satisfies every small segment. As a result it is beneficial for organisation to
attaining long term objective and also provide monetary benefit to the firm.
D1 Use critical reflection to evaluate own work and justify valid conclusions
As per the........., it has been analysed that marketing function play a crucial role in
developing firm and enhance its sales by creating market demands and customer awareness as
well. I have founded that how consumer market is important for analysing demands and their
choices towards goods and services. Holiday inn considered the customers tastes and their
comfortability regarding hotel services sop that they can enjoy precious time and money that are
to be spent. It is necessary to undertake effective marketing plans and appropriate study for
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identifying the consumer needs and wants so that organisation can segment particular market
accordingly.
2.1 Assess the importance of components of the marketing mix to the industry.
Marketing mix refers to tools which are used by organisation in order to attain its
marketing objectives. It is considered as the combination of several factors which are controlled
by firm for persuading customers to buy products and services. In context to Hospitality industry,
components of marketing mix helps the firm to enhance their business according to their
potential (Hubbard and Wilkinson, 2015). Marketing team of Holiday inn is using various factors
for particular market segment. Marketing of Holiday inn is described below:
Products: It refers to the item which is offered at market place in order to satisfy need of
buyer. Hospitality industry offers services to the customers according to their needs and
requirements. In context to Holiday inn, this hotel provides guest rooms, banquet halls,
recreational facilities, food and beverages, travel desk, parking facilities, gym area, executive
lounge and various other services to its customers. All these services are delivered to the
customers in best manner in order to provide them high level of satisfaction.
Place: Place is considered as the area where an products and services are sold. In context
to Holiday inn, this hotel has its presence across the world. Its services are easily accessible to
the customers as they can use it in most of the countries and cities (Malpas, 2018). This
component is essential for firm in order to expand the business and attain targeted customers.
Promotion: It refers to the activity of spreading awareness among the customers related
to product and service offered by the organisation. In relation with the hospitality industry,
organisation under this uses communication for promoting its services at market place.
Marketing manager of Holiday inn is using various promotional channels like Hotel websites,
Brochures, social media, billboards, TV commercials etc. to communicate its targeted
customers. This spreads brand awareness of this hotel in effective manner (Kandampully,
Zhangand Bilgihan, 2015).
Price: It refers to amount of money for particular product. In context to Holiday inn, this
hotel is using effective pricing strategy in order to remain competitive at market place. Along
with this, prices fro the services are finalized according to customers as well which gives them
reason to remain loyal with hotel.
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All the above mentioned components of marketing mix are essentials for Holiday inn. As
they helps firm in increasing customers satisfaction level and also influences them remain loyal
with this hotel for long term (Hubbard, P. and Wilkinson, E., 2015). This factors also contributes
in achieving its targeted goals and objective and leads to monetary profit.
M2 Select design and apply appropriate methods
There is required to identify adequate methods and strategies for appropriate marketing of
industry so that positive result can be get. Holiday Inn required various strategies for promoting
its products or services including digital marketing, social media, online booking, attractive
offers and prices with discount. Apart from this, management undertake several area that are
being changed such as pricing, services and places that depends on the decision making so that
higher growth can be sustained.
D2 Take responsibility for managing and organising activities
For running a business firm, manager play vital role in managing entire operations with
an effective manner. They undertake different operations and functions for the purpose of
attaining particular goals as well. Holiday inn is focusing on effective marketing so they
considered various activities such as organising events and occasions including parties, marriage,
ceremonies, meetings and conferences and many more that facilitate in attracting number of
customers. Manager try to organise such programs and manage entire operations with utilising
available resource among all process that helps in getting better outcomes. Therefore, manager
also focus on managing entire marketings activities by considering various factors like
promotions, prices, places and products or services so that better result can be get.
2.2 Analyse pricing strategies and policies in relation to hospitality industry
Pricing strategies undertake on the basis of actual costs, demand and competition of
products and services offered by a firm. Price is a value which is put on a product or services and
result of calculations, research and risk taking ability. It helps company to set its financial goals
and objectives thus to obtain high market share against competitors. In hospitality industry,
pricing strategy taken into account on the basis of market segmentations, customers' ability to
pay, competitors' strength, trade margins, market conditions and input costs (Law, Buhali and
Cobanoglu, 2014).
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There are various types of pricing strategies which can be also acquired by Hotel Holiday
Inn, such are stated as under - Penetration pricing – In this, prices are set low temporarily in order to gain high market
share and competitive position in a minimal time period. It can be done while introducing
a new product or services but it must be considered that prices will be increased once
promotion period is over and marketing goals has been achieved. Few companies can
acquire these strategies with an aim to enter into market and obtain maximum market
share. Premium pricing – In this pricing strategy, firm charges high prices than their rivals in
order to gain high competitive edge. The goal of premium pricing policy is to create
perception among consumers' mind that these products have high value than others. Most
of the companies acquire this strategy whose brand image is strong at marketplace
(Leung, Xue and Bai, 2015). For example – Holiday Inn is a well known brand and
customers have trust on the quality of its services thus company can adopt premium
pricing strategy. Competitive pricing – This pricing strategy is acquired by companies when demand of
products are high. Competitive pricing strategy is all about setting the price of product as
per the market competition. It is more than just possessing the prices are charged by
rivals for services. At this time, managers of hotel industry have good knowledge of
market trends and on which time prices will be increased or decreased. For example – at
the time of London Olympics most of hotels in London has slashed their prices in order
to fill rooms. Competitive scenario were also forced hotels to acquire competitive pricing
strategy thus to put balance between demand and supply.
 Skimming pricing – It is strategy in which firm charges highest initial prices of its
products that customers' can pay (Riasi and Pourmiri, 2015). According to price
skimming strategy, if the demand of first customers' get fulfilled then firm can lower its
prices to attract others and making more price sensitive segment. In addition to this, the
main goal of pricing skimming strategy is to obtain as much revenues as possible when
demand is high and there is no competition in market.
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4.4 Implementation of the marketing plan
It is essential for business organisations to conduct marketing research by using primary
and secondary methods as it makes easier decision making process of the company. It will
provide fair information to company towards new fusion menus and leisure activities offered to
customers. After this, interpret the information has gathered from customers and applying the
same with menu of the hotel thus to recognise that whether or not it will be accepted by
customers or not (Lovelock.and Patterson, 2015).
The new fusion menu is succeed to meet customers' taste or preferences. Market research
will also aids to decide price range of products which charged by Holiday Inn; price of the menu
is based upon its quantity. In addition this, the new fusion menu will be framed as it will suits all
types of market segments. Therefore, according to the feedback respondents company will fail to
produce new fusion then its offerings cannot capture customers' interest as well as cannot
compete with competitors.
Holiday Inn has considered an effective marketing plan for the purpose of creating
customers awareness and attract them towards hotels so that they prefer this hotel rather than
others. It is necessary to undertake various marketing activities and strategies for the purpose of
building good brand image and reputation among competitors. Many of companies focus on their
marketing activities and action plan by undertaking different methods such as social media,
digital marketings, e-commerce and search engine optimisation as well. Holiday In is focus on
increasing the level of hotel services and providing various facilities to the customers so that they
will remain loyal towards organisation. There is necessary follow appropriate steps of marketing
plan for its implementation which are as followings: Set the right expectations : In this, company needs to set its goals and objectives as well
as set expectations regarding market for better achievements. Holiday Inn is serving
number of hotel services including lodging, foods and beverages. Their main purpose is
to create more awareness among target audiences to satisfy their desired expectations. Build the team and resources: It is next step where the marketing plan is to be
implemented with appropriate way. Manager of Holiday Inn focus on creating a better
team who can find the best opportunities for growing business and maximise size of firm
with the helps of better marketing strategies. Fusion menu is the new product of Holiday
Inn which must be popular by advertisements or other tools.
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 Communicate the plan: In this phase, managers have to communicate the plan with other
members as well as internal and external customers with an effective manner so that they
can be aware regarding new products or services. Build different tasks: There is necessary to implement such particular plan with the help
of dividing the entire tasks among different staff members to get better outcomes.
Manager ensure about the work that must be performed with accurate manner. They have
top allocate entire necessary resources among different activities of marketing so that
more customers can be attracted.
 Monitoring and check regularly: in this defined the regular inspections and check ups
which support in making entire process effective. This is required for improving
marketing plan as Holiday Inn can consider the better strategies to introduce the fusion
menu that facilitates in enhancing growth and increase profitability. Monitoring process
support in ensuring that how things are going on as well as contributed in attaining
success.
D3 Demonstrate convergent/ lateral/ creative thinking
In this defined that marketing activities must be creative and unique which support in
developing organisation with well manner. There is also required for increasing level of
productivity and profitability. Holiday Inn is largest hotel chain that deals in global market as
they have good reputation in the market place which is possible due to having attractive
advertisements and promotional channels. Therefore, it is necessary to adopt best and creative
marketings tools so that predetermined goals or objectives can be attained.
TASK B
Covered in PPT
CONCLUSION
From the above mentioned report, it get concluded that marketing plays a vital role in
growth and development of hospitality industry as it help managers to get know about products
and services of the firm. The report has stated that political, economic, social etc. factors of
marketing environment put a huge impact on decision making process of hotels. While
developing a marketing plan, top management should categorised markets into different
segments, i.e. geographical, behavioural and demographical.
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