Marketing Strategies for Hotel Hilton

The assignment content discusses the marketing principles of Hotel Hilton, focusing on domestic and international marketing. Domestic marketing refers to marketing activities performed within a nation's boundary, whereas international marketing involves performing marketing activities outside the nation's surrounding. The text highlights that language and cultural barriers are not significant issues in doing marketing for the hotel. Furthermore, it states that the degree of risk involved is low for domestic marketing but high for international marketing. Lastly, the conclusion emphasizes the need to take extra care while promoting products internationally due to the high level of risk.

MARKETING
PRINCIPLES

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Various elements of the marketing process...........................................................................3
1.2 Benefits and costs of a marketing orientation........................................................................4
2.1 Identification and analysis of macro and micro environment................................................5
2.2 Segmentation criteria.............................................................................................................7
2.3 Target Strategy.......................................................................................................................7
2.5 Product Positioning................................................................................................................8
2.4 Buyer's behaviour in different buying situations...................................................................8
3.1 Development of product/services to sustain competitive advantage.....................................9
3.2 Product Distribution...............................................................................................................9
3.3 Pricing Strategy......................................................................................................................9
3.4 Promotional Activity............................................................................................................10
3.5 Additional elements of the extended marketing mix...........................................................10
Task 2.............................................................................................................................................11
4.1 Marketing mixes for the two different segments in consumer markets...............................11
4.2 Differences between B2B and B2C.....................................................................................11
4.3 Differences in international marketing and domestic marketing.........................................12
Conclusion....................................................................................................................................13
References......................................................................................................................................14
2

INDEX OF TABLES
Table 1: Cost and Benefit Analysis.................................................................................................5
Table 2: Porter's 5 Forces Model.....................................................................................................6
Table 3: SWOT Analysis.................................................................................................................8
Table 4: Buyer's Behavior..............................................................................................................10
Table 5: Marketing Mix in Different Segment..............................................................................13
Table 6: B2B v/s B2C....................................................................................................................14
Table 7: Domestic Marketing v/s International Marketing............................................................15
ILLUSTRATION INDEX
Illustration 1: Porter's 5 Forces Model.............................................................................................7
Illustration 2: SWOT Analysis.........................................................................................................8
3

INTRODUCTION
Marketing principles are the guidelines for conducting marketing process in an effective
manner. This involves a range of processes which are required to carry out the findings about
consumers needs and wants thereafter providing and satisfying their needs (Cochoy, 2014).
Marketing principles aids the seller to meet their ultimate consumers in an effective manner. For
better understanding of the topic, marketing activities of Hilton Hotel has been taken into
consideration and in depth study have been conducted. Further, this report describes the concept
and process of the chosen organization and the company's ability to use the segmentation,
targeting and positioning. Moreover, discussion has been made about the extended marketing
mix in Hilton Hotel and also the ability of a firm to use the marketing mix (Darley and Blankson,
2008).
TASK 1
1.1 Various elements of the marketing process
Marketing process is a process which is followed by the Hotel Hilton to reach its
customers for providing the services in an effective manner. Hotel follow the process in order to
attract large pool of customers (Dooley, Jones and Iverson, 2012). There are several elements
involve in the process which are described below: Environmental Scanning: By using scanning tools such as SWOT, PESTLE and value
chain analysis, hotel scan the environment in order to assess the favorable and
unfavorable factors prevailing in the internal and external environment. Identification of Target Market: After assessing the environment, hotel target its market
such as high income group people of age group 18-65 from various regions and countries. Setting Objectives: Organization sets the objective so that it provides a guidance to them
so that they take further step accordingly. For instance, hotel set the objective to increase
the profit by 25% till next year. Applying Marketing Mix: After setting the objective company plans the action and
implement marketing mix in order to achieve its objective (French and Bennett, 2015).
4

 Review and Control: After implementing the action, hotel review its performance and if
it is not going in accordance than control on wrong activities are done and accordingly
corrective measures will be taken so that variations can be reduced.
1.2 Benefits and costs of a marketing orientation
Marketing Orientation is basically a model in which company lays stress on delivering
the product and services which is deigned according to desire, requirements and need of the
customers in addition with product and production orientation (Henley, Raffin and Caemmerer,
2011). In this, hotel makes decision based on customers’ needs and wants instead of
organization's thinking.
Cost and Benefits Evaluation
Table 1: Cost and Benefit Analysis
Advantages Disadvantages
Marketing Orientation is customer centered
approach as it gives importance towards their
demands and needs.
This involves costly research and this
orientation is considered to be cost ineffective
process.
It provides benefits to customers by creating
buyer value which will help the hotel to gain
customer loyalty and repeat business (Hughes,
2002).
If benefits are provided to customer as per their
needs than it will definitely increase the prices
of the product.
Competitive advantage can be achieved by
Hilton Hotel if they provide services in
accordance to their needs.
There are diverse needs of all the customers,
thus it becomes tough for the organization to
provide different services to different
customers (Jafari, 2013).
Resources can be optimally utilized if this
approach is adopted because there will least
wastage of efforts and other resources.
This approach involves a lot of time which
may contribute in wasting the precious
resources of an organization.
2.1 Identification and analysis of macro and micro environment
5

Hilton Hotel is working in a dynamic environment and its internal and external
environment both have direct impact on its working (Korotkov, Occhiocupo and Simkin, 2013).
Thus, it becomes necessary for the firm to assess its environment so as to ensure smooth working
of an organization.
Micro Environment Analysis
By using the techniques of VRIO tool, an internal environment of hotel is assessed.
1. Valuable: The human resource of company brings value to the firm, thus they create
competitive advantage for the organization.
2. Rare: The human resource are rare in this hotel and also the hotel have economies of
scale on other resources such as the veggies comes directly from farms.
3. Inimitable: Hotel provides the services which is in unique in its own manner but some of
the services are common as other hotels (Kubacki, 2015).
4. Organized: The resources are highly organized in the enterprise. Duties and roles are
clearly defined to the staff members and all the task are organized so it does not create
any chaos.
Macro Environment Analysis
To assess the environment which is prevailing outside the business borders, porter's 5
forces model have been applied so that company can analyze its position in the industry.
Table 2: Porter's 5 Forces Model
5 Forces Implications Degree of Impact
Bargaining Power
of Supplier
 Switching cost is high as they supply large
amount of raw material.
 Ancillary services of suppliers.
 Hotel have an opportunity to take backward
integration (Onkvisit and Shaw, 2002).
Low
Bargaining Power
of Buyer
 There are large number of buyers.
 Many other brands are available and they have
high access to information.
High
6

 Switching cost is low, thus they can switch
anytime.
Threat of
Substitute
 There are varied options in the market such as
Villas, resorts, houseboats, cottages, etc.
 Easily available these days due to high
competition (Bowman and Gatignon, 2010).
Moderate
Threat of New
Entrants
 Huge capital investment requires.
 Strong brand presence should be there.
 Emergence of new entrepreneurial players.
Low
Industry Rivalry  Competition level has been increased with the
increase of competitors.
 High utilization of capacity (Kotler and
Armstrong, 2013).
High
(Source: Porter’s Five Forces Model, 2009)
7
Illustration 1: Porter's 5 Forces Model

As per the above findings, SWOT analysis of Hotel Hilton has been carried out, which is
described as follows:
(Source: What is SWOT Analysis, 2015)
Table 3: SWOT Analysis
Strengths Weaknesses
 High value human resources are
possessed by hotel.
 Resources are also rare and it possess
economies of scale.
 Suppliers cannot increase its demand.
 Good employee retention (Kotler,
2010).
 Company has a capability of employing
technical innovations to improve the
services of customers.
 Some of its services are similar with
that of other hotels, thus, hotel lacks
innovations and uniqueness.
 Market share is limited although
company is highly recognized.
 Customer are getting switch due to less
innovation.
Opportunities Threats
 Firm have an opportunity to take  There is a high threat of substitute and
8
Illustration 2: SWOT Analysis

backward.
 Company can expand themselves and
gain high market share.
 Innovative services can be introduced.
potential threats for new entrants
(Miletsky, 2009).
 Customers bargaining power is
increasing on a regular basis.
 Economic disturbance may reduce the
profitability.
2.2 Segmentation criteria
Segmentation basically means dividing the mass market into small subsets on the basis of
similar characteristics, needs, location, etc. There are 4 types of segmentation that is
Demographic, Geographical, Behavioral and Psychographic. The criteria used to segment the
market are homogeneity, heterogeneity, measurable, accessibility and responsiveness (Ferrell,
and et.al., 2014).
Hotel Hilton is introducing new services of customized rooms for which it has segmented
its market on the basis of Demographic and Psychographic that is high income group and age
group 20-40. Further, criteria used for segmentation are homogeneity, measurable and
accessibility.
2.3 Target Strategy
There are 3 types of targeting strategy which is being used by every organization such as:
1. Differentiated Strategy: In this, all the segments are contacted using different strategy.
2. Concentrated Strategy: Each segment is appealed using separate strategy for each
segment.
3. Undifferentiated Strategy: All the segments are communicated and attracted using single
strategy or information (Richter, 2012).
Hotel Hilton uses the strategy of differentiated for targeting its segments because the
segmentation has been done on the basis of age group and income group. So every age group
will be communicated by using different promotional method.
2.5 Product Positioning
Positioning is a type of marketing strategy which is being used to make its product or
brand occupy a distinct place in the minds of customers against the competitors (Cochoy, 2014).
9

There are various factors on the basis of whom product is being positioned that are
features/attributes, quality, price, competitors strategy, suitable image that is premium, luxurious,
etc.
Hilton Hotel have positioned its new product that is customized rooms on the basis of
features that is it will be according to the customer's desire, it will have all the amenities to assist
the customers to have great experience. Also positioning has been done by image that is
premium and luxurious which will provide homely feeling and also on the basis of highest
quality (Darley and Blankson, 2008).
2.4 Buyer's behaviour in different buying situations
There are basically 3 types of buying situations and in those situations, buyers behaviour
has different influence on the marketing activities, the description has been made as follows:
Table 4: Buyer's Behavior
Buying Situations Buyer's Behavior Impact on Marketing
Activities
Complex Buying Situation In this situation buyer take
high amount of time for taking
decisions as whether to avail
the services or not. They ask
other expertise before buying.
Marketing of the brand or
product is done by spending
high cost on its promotion
because the product or service
is precious.
Dissonance Buying Situation In such situation buyer take
lesser amount of time than
complex situation because
there are not much options
available in this situations
(Dooley, Jones and Iverson,
2012).
Marketers do the promotion of
products by using sales
promotion and advertisements.
Routine Buying Situation Involvement of thinking for
taking decisions is low due to
Marketing of such products is
done without assessing the
10

the presence of large number
of similar products. These
products are purchased by
customers on a regular basis.
market because customers will
purchase these products
whenever required (French and
Bennett, 2015).
New service of Hilton Hotel falls under complex buying situations and customers do not
buy the services without consulting others' review, thus, it is necessary for the company to
provide excellent services to customers and influence them to avail this services by heavily
promoting the products among the target market.
3.1 Development of product/services to sustain competitive advantage
Hilton Hotel is planning to develop the new product that is customized rooms in an hotel
as per the requirements and desire of customers. In order to gain the sustainable competitive
advantage the product should be develop by following range of steps that is hotel firstly generate
the idea and then scanning of those idea should be done (Henley, Raffin and Caemmerer, 2011).
Further, the concept should be developed and sent for testing for a sample customers. Later, the
feedback about such concept will be taken and then as per the customer views modification can
be done. Thereafter, product is developed according to the customer requirements. Again the
product can be sent to the market for final testing and price determination. Lastly, the product is
launched in the market. If these steps are followed and new product is developed, this will
sustain competitive advantage for longer time.
3.2 Product Distribution
Distribution refers to as the place at which products and services are made available in
order to make it convenient for the consumers to buy the products. Hotel Hilton can build new
premises in UK and make available this new services to them in order to make it convenient to
the customers (Hughes, 2002). It will be difficult for the hotel to provide new services in an
existing building so for this purpose, new premises should be build. However, it will incur high
cost but this will be convenient distribution of the services.
3.3 Pricing Strategy
There are basically two types of pricing strategy in a marketing concept which is used at
the time of new product development, strategies are explained as follows:
11

1. Skimming Pricing Strategy: In this type, high pricing is kept for the new product. This
strategy is applied on those products which are of high value, completely unique in the
market and has copyright (Jafari, 2013).
2. Penetration Pricing Strategy: Pricing is kept low in this type of strategy in order to
penetrate the whole market. This is done when product is of routine use and is available
in large variety.
Hilton Hotel is introducing a product which is completely unique and is of high value,
thus organization should use skimming pricing strategy and keep the high price of the product.
3.4 Promotional Activity
Promotion is the 4th P of a marketing mix, where the product information is
communicated with the target market using several promotional techniques. It includes print and
media advertisements, personal selling, sales promotion, social media marketing, etc. Hilton
Hotel's target market is high income group people of age 20-40 (Korotkov, Occhiocupo and
Simkin, 2013). Thus, hotel can do advertisements in business magazines and other fashion
magazines. Further, company can sent email to the target market or those regular customers who
have already visited the hotel. Discount vouchers can be provided to the routine customers
through social media marketing.
3.5 Additional elements of the extended marketing mix
Traditional marketing mix is consist of 4 P's but modern marketing mix have 7 P's. There
are 3 more P's which have been included in the marketing mix known as extended marketing mix
whose description has been given below:
 People: The staff member of the hotel is known as people. People directly interact with
the customers, satisfy them and influence them for the repeat business. For this purpose,
human resource should be efficient in order to attract the customers and satisfy them with
the new services (Kubacki, 2015). For the same, company should provide effective
training to them and develop the communication skills among them. Moreover,
organization should hire new and skilled personnel in order to fill the vacancy and train
them accordingly.
 Process: It involves the process of handling customer complaints, identification of their
needs and the process of providing efficient and quick services. Hotel should have the
12

staff and other facility which can identify their need and provide them the services which
can satisfy their need. Moreover, the issues of the customers should be handled properly
and quickly responses should be given to them (Onkvisit and Shaw, 2002).
 Physical Evidence: This includes the physical layout of the hotel. In a new service of
customized products, the layout should be highly pleasant and each and every room
should have all the modern amenities so that it attracts the customers to avail this service.
TASK 2
4.1 Marketing mixes for the two different segments in consumer markets
Table 5: Marketing Mix in Different Segment
Marketing Mix Income Group Age Group
Product Customized Rooms – all the
automated facilities, 24*7 staff
availability (Bowman and
Gatignon, 2010).
Customized Rooms – items as
per the age factor that is for 20
years group girlish and boyish
look for 30 years group
different layout.
Price High pricing due to innovative
and uniqueness of the
products, product is luxurious.
Prices varies as per the age
group and facilities included.
Place New premises can be built
near the beach or hilly areas.
New premises can be built
near the beach or hilly areas
(Kotler and Armstrong 2013).
Promotion Promotion through business
magazines and emails.
To younger age group,
promotion can be done
through fashion magazines and
social media marketing. To
middle age group promotion
through business magazines.
13

4.2 Differences between B2B and B2C
Table 6: B2B v/s B2C
Basis B2B B2C
Meaning It is that situation where producer
provide products or services to
other organization for further use.
It refers to the situation where
manufacturer or the producer sells
the product or services to ultimate
consumers for consumption.
Product In this case, company provides
product in bulk and not in smaller
quantity (Kotler, 2010).
Here, product is provided in single
unit or in smaller quantity and the
product cannot be used for further
production.
Price Prices are generally kept low due
to bulk purchasing.
Prices are relatively higher that
those given in B2B.
Place There is no defined place or layout
for this case, in fact the products
and services are provided directly
through the place of origin.
There are range of hotel premise in
order to provide services to the
customers.
Promotion Direct selling is done in this case
and regular contact or public
relation is maintained in order to
retain the business customers.
In this, several sales promotion
technique is applies, heavy
advertisements are done and digital
marketing is done to attract lot of
customers.
Example Hilton Hotel can provide
restaurants and bars on lease to
other famous restaurants chain and
bar chain (Miletsky, 2009).
Rooms facilities, membership
facilities, other hotel facility, etc.
14

4.3 Differences in international marketing and domestic marketing
Table 7: Domestic Marketing v/s International Marketing
Basis Domestic Marketing International Marketing
Meaning Marketing activity which is
performed within the nation
boundary is termed as domestic
marketing (Ferrell and et.al., 2014).
Performance of marketing
activity outside the nation's
surrounding is termed as
international marketing.
Languages and Culture There is no such barriers of
language and company can do
hassle free marketing. The cultural
differences are also not much so it
will be easier for the hotel to do
marketing without undermining the
culture of people.
High language barrier and
there is huge culture diversity,
hence complex procedure for
the hotel.
Risk Involvement Degree of risk involved is low. There is a high degree of risk
involved.
Knowledge Requirement Due to familiar market, less
knowledge of customers are
required.
Market is totally unfamiliar so
high amount of knowledge and
risk is required to carry out
marketing (Richter, 2012).
CONCLUSION
As per the study made on marketing principles of Hotel Hilton, it has been concluded that
Hotel Hilton has assessed its environment and then it has developed its new product of
customized rooms in a market. This product is completely unique and innovative so prices are
kept high and it has been promoted using different promotional techniques. Further, the buyer's
bargaining power is high and company has adopted many efficient techniques to retain its
15

customers. Further, it has to take extra care while promoting its product in international market
as high risk is involved in this.
16

REFERENCES
Journals
Cochoy, F., 2014. The American Marketing Association: A handrail for marketers and marketing
history. Journal of Historical Research in Marketing. 6(4). pp.538-547.
Darley, K. W. and Blankson, C., 2008. African culture and business markets: implications for
marketing practices. Journal of Business & Industrial Marketing. 23(6). pp.374-383.
Dooley, A. J., Jones, C. S. and Iverson, D., 2012. Web 2.0: an assessment of social marketing
principles. Journal of Social Marketing. 2(3). pp.207-221.
French, J. and Bennett, R., 2015. A hierarchical model of social marketing. Journal of Social
Marketing. 5(2). pp.139-159.
Henley, N., Raffin, S. and Caemmerer, B., 2011. The application of marketing principles to a
social marketing campaign. Marketing Intelligence & Planning. 29(7). pp.697-706.
Hughes, J. T., 2002. Marketing principles in the application of e‐commerce. Qualitative Market
Research: An International Journal. 5(4). pp.252-260.
Jafari, A., 2013. The Principles of Islamic Marketing. European Journal of Marketing. 47(10).
pp.1774-1776.
Korotkov, N., Occhiocupo, N. and Simkin, L., 2013. Simulated test marketing in emerging
markets: the need to re-think. Marketing Intelligence & Planning. 31(7). pp.807-822.
Kubacki, K., 2015. A systematic review assessing the extent of social marketing principle use in
interventions targeting children (2000-2014). Young Consumers. 16(2). pp. 141-158.
Onkvisit, S and Shaw. J. J., 2002. Marketing/advertising concepts and principles in the
international context: Universal or unique?. New Directions in International Advertising
Research. Advances in International Marketing, Volume 12. pp.85-99.
Books
Bowman, D. and Gatignon, H., 2010. Market Response and Marketing Mix Models: Trends and
Research Opportunities. Now Publishers Inc.
17