MARKETING IN HOSPITALITY INTRODUCTION 3

MARKETING IN HOSPITALITY INTRODUCTION 3 1.1 Concepts of marketing for a relevant services' industry3 1.2 The impact of marketing environment on industry4 1.3 Evaluating the relevance of consumer markets in the industry 6 1.4 Rationale for developing different market segments6 TASK 27 2.1. 8 TASK 39 3.1.Evaluate the role of the promotional mix.9 3.3. 1 1.1 Concepts of marketing for a relevant services' industry Various concepts of marketing are: Product Concept: The concept believes that consumers will prefer that

MARKETING IN
HOSPITALITY
1

Table of Contents
INTRODUCTION...........................................................................................................................3
1.1 Concepts of marketing for a relevant services' industry........................................................3
1.2 The impact of marketing environment on industry................................................................4
1.3 Evaluating the relevance of consumer markets in the industry.............................................6
1.4 Rationale for developing different market segments.............................................................6
TASK 2............................................................................................................................................7
2.1. Importance of the components of marketing mix.................................................................7
2.2. Pricing strategies and policies in Thomas cook....................................................................8
TASK 3............................................................................................................................................9
3.1.Evaluate the role of the promotional mix..............................................................................9
3.3. The role that sales promotion and public relations play in promotional efforts:..................9
4.1.Relevance of market research to services' industry operations...........................................10
TASK 4..........................................................................................................................................11
3.2.Plan an advertising campaign for a services' industry operation.........................................11
4.2. Questionnaire......................................................................................................................11
Question 1: How frequent do you travel?..................................................................................11
Question 4: Would you prefer to Thomas cook over other?.....................................................11
4.3. The suitability of different media for marketing an appropriate product or service..........11
4.4. Evaluate the Implementation of the marketing plan...........................................................12
CONCLUSION..............................................................................................................................13
.....................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Hospitality industry serves the consumers directly and thus, they focus on creating and
strengthening their relationship with them. Marketing techniques and strategies prove a great
support to hospitality sector in fulfilling their goals. The motive of hospitality business is not
only to sell their products but also to make consumers visit to their place again to avail services
of company. . The report will discuss about various marketing strategies like promotional mix,
personal selling, etc., use of marketing mix as well as their impact over the business. Thomas
Cook is an international company that provides services in tourism sector. Along with this,
company provides travel related financial services. It was formed in early 1800's, today, Thomas
Cook is the largest travel company in UK and Europe.
1.1 Concepts of marketing for a relevant services' industry
Various concepts of marketing are: Product Concept: The concept believes that consumers will prefer that product which
will have better quality and performance features in comparision to normal product.
Similarly, company believes that if the services provided by them will have better quality
then it will make consumers loyal towards it. Selling concept: This concept means that company should be engaged in aggressive
selling of their products to pursue customers to buy them. It is an improper concept in
today’s marketing techniques. It forces organization to undergo selling and promotion of
products/services to pursue customers to buy the same (Line and Runyan, 2012.). Marketing concept: In this concept, strategies are made for meeting the needs and
demands of consumers before competitors. Thus, promoting and making the brand strong
enough so as consumer itself pursue companies' services. Thomas Cook is making strong
marketing strategies for attracting maximum number of consumers to opt for their
services (Leung, Law, Van Hoof and Buhalis 2013).
 Societal marketing concept: It refers To meet the needs and demands of consumers,
more efficiently and effectively with the well-being of society. Company involves in
various social campaigns to provide better services to their customers along with the
welfare of society. Thus, company strongly believes in the fulfillment of Corporate Social
Responsibility (Hall, C. M. and et. al, 2012).
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1.2 The impact of marketing environment on industry
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Political
 Introducing tourism tax by UK
government has affected Thomas
Cook.
 Company is facing the harsh impact of
redundancies policy which is affecting
its operations and creating employee
dissatisfaction.
 It is able to attract more number of
consumers to plan holiday in UK.
 Thomas Cook easily adjusts itself in
the various political systems which
help company to sustain over others.
Economic
 Company is able to generate profits
from package tours as they are
income-elastic.
 Growth in tourism industry has
increased demands for travel and
hospitality.
 Rise in price of fuels has created
burden over company.
 Global crisis and recession has bring
down the revenue of organisation.
Social
 Negative impact of redundancies
policies over consumers.
 It would be forced to provide
discounts over leisure tourism.
 Benefits to company due to increase in
income of middle class income
groups.
 Future growth in the booking sector
will benefit organisation.
Technological
 The improvement in internet service
has helped in getting economies of
scale.
 Emergence of social media has made
it easy for customers to book for tours
over internet.
 Better use of technology by
transportation sector has helped in
making pleasant and safe services to
customers.
Strengths
 It provides services at affordable
prices.
 Company is spread across the globe.
Weaknesses
 Decrease in market share due to
intense competition.
 Risk of increasing debt burden over
company.
Opportunities
 It has been benefited by digitalisation
Threats
 Uncertainty of airline business.
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of tourism sector.
 Growth in tourism business.
 Intense competition from low price
service providers.
1.3 Evaluating the relevance of consumer markets in the industry
Consumers are the main reason for revenue generation of hospitality sector. Needs and
demands of consumers are prime factors which affect the business operations of hospitality
industry. In order to know about them in detail and understand consumer behaviour it is
important for company to conduct market research. This will help it to know about the needs and
wants of potential customers. Hotels are among prime locations over other venues to host any
special events or business meetings as hotels provide package deals of food and beverages along
with open spaces and pleasant location. Now, to stimulate consumers to opt for the existing
services generated by company is termed as Black Box (Yoo and Bai, 2013).
Black Box refers to stimulate the consumers to pursue or opt for a product/services which
are made according to demands and needs of company rather than needs and wants of
consumers. This theory helps in formulating consumers’ needs and demands which are essential
as it enables understanding the consumer behaviour properly and thus, producing accordingly.
1.4 Rationale for developing different market segments
Consumers in target markets are divided among various segments which are: Geographic Segmentation: The division of market is done on geographical basis which
means consumers are divided according to the country, region, population density,
climate zone. This assists company in formulating services according to their geographic
locations. Demographic Segmentation: In this segmentation, consumers are divided in groups
based on demographic factors like age, gender, income group, ethnicity, religion and
socio economic group. Company uses this segmentation for targeting their different
consumers and formulating marketing strategies accordingly. Behavioural Segmentation: Consumers are segmented according to their behavioural
patterns. This segmentation is more effective than geographic and demographic. These
behaviour factors are purchase consideration, readiness of buyer, attitude of buyer
towards the product/services, usage factor, etc. It is utilised by company to divide it target
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markets according to behaviour pattern that helps it to make exactly what consumers
want (Cross and et. al 2015).
 Psycho graphic Segmentation: It refers to division of markets according to personality,
traits, attitudes, values and lifestyle of consumers. It helps to formulate more focused
marketing strategies according to the demands of consumers. It enables company to
properly formulate its product/ service design.
TASK 2
2.1. Importance of the components of marketing mix.
Component of Marketing Mix. Thomas Cook Travel.
1. Product.  It is a travel company that engages
in providing mass tourism service.
The company provides one stop
destination services.
 It deals in foreign exchange
business across the globe with a
largest facilitator it deals in more
than 26 currencies, it is a leading
brand that owns airline, hotel
charted services.
 Thomas cook provides insurance
service in relation to medical
expense, lose of checked baggage
and lost passport.
2. Pricing strategy used.  The company uses competitive
pricing strategies to ensure it
remains in market.
 It provides financial services along
with travelling services this enables
it to gain more profits.
 Introducing of half way premium
policy to attract more and right type
of consumer.
 Affordable pricing policy of
company generates more revenue to
it pockets (Fan and et. al., 2015).
3. Place or Channel of distribution.  The presence of company is on vast
place on global arena.
 It has strong distribution channels
that serves in many countries like;
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Europe, America, UK, Spain, Italy.
 It has both physical presence
through it headquarters and
intangible presence through online
website.
 Company is expanding it business
by opening it offices in Asian
markets.
4. Promotional elements.  The promotional policy of company
is strong and focused.
 It promotes it brands through
various social media platforms like;
Facebook, You Tube, etc.
 Company has sponsored various
events like London Olympic
Games, football club like
Manchester to advertise and
promote companies services.
 Thomas cook promotes it services
through electronic and print media
like; newspaper, T.V. Commercials,
magazines, etc.
2.2. Pricing strategies and policies in Thomas cook.
The pricing strategies and policies of Thomas cook is as follows: Competitive pricing: Company has adopted competitive pricing sot to attract more
customers towards services provided by them. These strategies help it to survive in
industry and be relevant. Target Pricing method: this means that every product should generate certain amount of
profit. It is suitable as Thomas cook deals in more than one service line this allows
company to generate revenue from all it service provided. Package Deals: Thomas cook is the largest company that provides package deals to it
customers. These deals helps company to target niche markets, example, leisure tour
package, wine and food tours, etc. they provide a competitive benefits to company has it
provides different types of services along with these packages, this benefits company as it
gives economies of scale (Abrate, Fraquelli and Viglia,2012). Discounting: The most common form of strategies adopted by travel and tourism
business is discounting. Company provides discounts to attract customers from low
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income groups to avail the services. Also, it offers discounts in off season of business to
attract and maintain customers and meet targets.
 Value Pricing: This done by organisation/company to create high value image. It attracts
consumers who poses high values and potential or those who are visiting or availing the
service for first time. This would help to gain a competitive advantage and improves
public image of company (Nagle and Müller, 2017).
TASK 3
3.1.Evaluate the role of the promotional mix.
The promotional mix consist of five types of promotional tools they are: Public Relations: This means to create positive image, make goodwill of
product/services, or to make a publicity of what company is offering. It can be done
through releasing positive interviews through newspapers, or T.V., sponsoring social
campaigns, conducting or hosting special events, etc. Thomas cook has sponsored many
special events like football team for Manchester, company is creating package tours to
fulfil it social responsibilities. Personal Selling: This refers to pursuing customers to buy the products/services of
company directly through face to face communication or through phone calls. Examples;
sales presentation, sampling, etc. company believes to have 40% of it sales through
personal selling and it has established many physical stores.
 Advertising: It is a paid form of media communication which includes, ads in
newspapers, trade journals, T.V. Commercials. Electronic media like website building,
billboards, etc. They proved as best source of promoting service of company as they have
mass reach to target markets across the globe (Oladepo and Abimbola, 2015). Sales promotion: it is done to attract more number of consumers towards the service/
products for short period, in order to increase sales, consumer demands, etc. Examples;
coupons, discounts, rebates, etc.
 Direct Marketing: The consumers are been directly targeted and asked to buy the
particular product or services. It can be done through e-mailing, visiting store, or
providing catalogues to consumers.
3.3. The role that sales promotion and public relations play in promotional efforts:
Five types of sale promotions are:
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 Coupons: it helps to instigate customers to buy products. This is an incentive given to
customer over the buying rate. Discounts: The most common sale promotion techniques is discount. It can be of two
type trade discounts, consumer discounts. Gifting: This is provided to customers to increase sales and pursue them to visit again to
the same place. Financing: It gives incentive to customer to purchase or avail the product/services on
instalment with less interest fees like; EMI or other financing options (Williams, 2012).
 Contest: These incentives are used to make consumer aware about the products/ service
of company. It can be in any form; scratching of cards, or lucky draw, etc.
Five types of public relations are: Media Relations: They help to maintain a positive image of company in industry. Strong
relation with media gives good coverage of the company and it services. Public Affairs: These are the professionals which maintain contracts with government
and other organisation. Crisis Management: The effective management of untimely problems and disaster. Corporate and social Responsibility: It refers to fulfilment of moral duties of company
towards society, environment, community. It is to increase reputation of company
regarding charity.
 Community Relations: to survive within the industry it should maintain better
relationship with the local communities of the region.
4.1.Relevance of market research to services' industry operations.
The market research helps in knowing the target more properly. Tourism sector operates
within dynamic environment that keeps on changing. To make the services available according
to consumer needs it is important to undergo a market research. Recent trends, ongoing changes
in market conditions, strategies of competitor etc. are some important aspects that can be known
through market research. It helps to know what are the demands and needs of consumers and
accordingly making up of strategies to meet them (Mariani,Buhalis, Longhi and Vitouladiti,
2014).
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TASK 4
3.2.Plan an advertising campaign for a services' industry operation.
Attached in flyer.
4.2. Questionnaire.
Question 1: How frequent do you travel?
 Once in a six months.
 Once in a year.
 Once in a month.
Question 2: Do you use Thomas cook services?
 Yes.
 No.
Question 3: Changes needed in which?
 Customer policies.
 Customer services.
 Meals provided by company.
Question 4: Would you prefer to Thomas cook over other?
 Yes.
 No.
Question 5: Are the services of company is good or not?
 Yes.
 No.
4.3. The suitability of different media for marketing an appropriate product or service.
Different forms of media. Suitability.
Television.  It is a widely used form of media.
 It enables company to make it
product/services reach to large target
market.
 T.V., are the best source of promotion
of products.
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Radio.  Radio is the cheapest form of media
for promoting about products/services.
 It targets the mass audience.
 Helps to reach to remote parts or areas
of world.
Newspapers  One of the oldest form of promoting.
 It is widely reached and use make it
one of the best forms of promotion.
 It is a cost effective tool of promotion.
Social Media.  It is a most widely used media
nowadays, it helps to target customers
beyond geographical barriers.
 It is a cheap form of promotion.
 Enables to make company reach to
large groups of customers (Teller,
Kotzab and Grant,2012. ).
4.4. Evaluate the Implementation of the marketing plan.
The formulation of marketing plan by company for USA tour packages shows following
benefits:
 It generates good amount of revenue to company.
 Shows an excellent growth in first two weeks of 10%.
 Attracts maximum number of crowds from UK, Europe, Italy and Spain.
 Company gains profit through allowing discounts and attracts large group of people from
it target markets.
 It benefited from this new fusion of package deals including Contiki.
The growth of the package deal make it a huge success for company. But, it has certain
drawbacks and limitations which stops it from becoming a grand success for company they are:
 Promotional events of company were not up to the mark.
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 The location chosen by company for promotion was not enough for the package to be
promoted. It should have placed billboards over main streets of UK, Europe, and other
targeted areas.
 Lacks of strong marketing strategies reduces down companies profit.
 It would have added certain other features to the package deals.
 Services provided by company was not satisfactory.
CONCLUSION.
Hospitality sector emerges out as growing business, requirement of marketing tools and
strategies is the need of an hour. Thus, marketing plays a key role in development and promoting
of tourism sector. Different concept of marketing helps tourism company to formulate itLine,
N.D. and Runyan, R. C., 2012. policy accordingly. The use of market segments like;
demographic, geographic, psycho graphic segmentation, etc. helps them to easily target there
customers and makes products/services in relation to there needs and demands. PESTLE
Analysis of Thomas Cook shows the effect of various factors on the working of companies.
Further, we can see the role of promotional mix such as personal selling, public relations, direct
marketing is useful for effective promotion of products/services. Thomas Cook is a vast travel
company that needs strong marketing strategies to promote it services and attract potential
customers.
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REFERENCES.
Books and Journals.
Abrate, G., Fraquelli, G. and Viglia, G., 2012. Dynamic pricing strategies: Evidence from
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study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual
Conference (pp. 531-536). Springer, Cham.
Fan, S. and et. al., 2015. Demystifying big data analytics for business intelligence through the
lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Hall, C. M. and et. al, 2012. Safety and security in tourism: relationships, manaLine, N.D. and
Runyan, R. C., 2012.gement, and marketing. Routledge.
Leung, D., Law, R., Van Hoof, H. and Buhalis, D., 2013. Social media in tourism and
hospitality: A literature review. Journal of Travel & Tourism Marketing. 30(1-2). pp.3-
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Line, N.D. and Runyan, R. C., 2012. Hospitality marketing research: Recent trends and future
directions. International Journal of Hospitality Management. 31(2). pp.477-488.
Mariani, M. M., Buhalis, D., Longhi, C. and Vitouladiti, O., 2014. Managing change in tourism
destinations: Key issues and current trends. Journal of Destination Marketing &
Management. 2(4). pp.269-272.
Nagle, T. T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Oladepo, O. I. and Abimbola, O. S., 2015. The influence of brand image and promotional mix on
consumer buying decision-a study of beverage consumers in Lagos State, Nigeria.
British journal of marketing studies. 3(4). pp.97-109.
Teller, C., Kotzab, H. and Grant, D.B., 2012. The relevance of shopper logistics for consumers
of store-based retail formats. Journal of Retailing and Consumer Services. 19(1). pp.59-
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Yoo, M. and Bai, B., 2013. Customer loyalty marketing research: A comparative approach
between hospitality and business journals. International Journal of Hospitality
Management. 33. pp.166-177.
Williams, A., 2012. Understanding the hospitality consumer. Routledge.
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