Marketing in Hospitality: Impact, Strategies, and Evaluation

This report provides detailed knowledge and understanding about the impact of marketing environment on the hospitality sector and components of marketing mix that helps business. It also explores the importance of pricing strategies, role of promotional mix, and evaluates the marketing strategies used in the industry.

Marketing in hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concepts of marketing mix...................................................................................................1
1.2 Impact of the marketing environment on the industry..........................................................2
1.3 The relevance of customer markets in the industry..............................................................3
1.4 The rationale for developing various market segment..........................................................3
M1 Impact of the marketing environment using approach of Pest analysis...............................4
TASK 2............................................................................................................................................4
2.1 Importance of factors of the marketing mix to the hospitality sector...................................4
2.2 Assess the pricing strategies and policies in relation to the industry....................................5
M2 Methods for assess and evaluate pricing strategy.................................................................6
TASK 3............................................................................................................................................6
3.1 Evaluation of the role of promotional mix............................................................................6
3.3 Role of sales promotion and public relations........................................................................6
4.1 Relevance of market research to service industry.................................................................7
TASK 4............................................................................................................................................7
3.2 Advertising campaign for a service industry........................................................................7
4.2 Market research for an appropriate product and service.......................................................7
4.3 Different media for marketing product and service.............................................................8
4.4 Implementation the marketing plan for an appropriate product and service.........................8
CONCLUSION................................................................................................................................9

INTRODUCTION
In a competitive business environment, organisation requires adopting such strategy and
practice that aid to company in sustain long time in the market. Marketing is one of the
impressive strategies that help company in promoting and advertising products and services in
the market. It aids to company in introducing its services in front of customers and attract them
in large manner. The current report provides detailed knowledge and understanding about the
impact of marketing environment on the hospitality sector and components of marketing mix that
helps business.
TASK 1
1.1 Concepts of marketing mix
Marketing concepts defines that how company should understand and meet requirement of
customer regarding product and services. As per this concept, marketing have a main aim is to
identify actual needs and wants of customers regarding products and services. It assists to make
them satisfy and happy.
Thomas Cook is one of the larger travel and tourism corporations whose main aim is to
improve sales and profitability by delivering effective services and products in the market (Scott,
2015).
For addressing this objective, company have to focus on various marketing concepts to
enhance its sales and perform marketing activities in more effective manner.
Following are major five concepts of marketing that helps Thomas Cook-
 Product concept- On the basis of product concept, customers are more like to purchase
more quality and innovative product and services from organisation. Thus, it is very
important for company to produce such innovative and quality product and services that
meet requirements of customer and distinguish from its rivals in the market (Aulton and
Taylor, 2017).
 Selling concept- On the basis of this concept, buyers always prefer to purchase products
and services that corporation aggressively promote and advertise in the market. Thomas
Cook should adopt effective advertisement strategy and practices that help business unit
in attracting large numbers of customers.
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 Marketing concept- On the basis of this concept, the main aim of marketing is to
understand actual needs and wants of customers and make them satisfy. It assists in
developing a strong brand image in the market and attracts large numbers of customers.
 Social marketing concept- As per this concept, company have to maintain long and
healthy relationship with customers. With help of this concept, Thomas Cook can
maintain effective image of business in the market.
1.2 Impact of marketing environment on industry
For every business unit, it is very important to analyse and assess marketing environment
which refers to components that directly and indirectly influence business activities and
functions in large manner. In the context of Thomas Cook, there are various elements of
marketing environment that can affect its performance in the market.
Micro Environment
Customers- Buyers are major element of micro marketing environment that helps to business
unit in increasing profitability and productivity. It is very important for corporation to understand
actual needs and wants of customer regarding hospitality services like accommodation, travel
and tourism etc.
Competitors- In the hospitality sector, there are various organisations which serves same
products and services in the market. Thomas Cook can largely affect these factors as if company
changes its prices of product and services then customer can switch brand.
Suppliers- It is very important for corporation to maintain healthy relationship with suppliers as
they are those people who supplies raw material and semi finished goods to company. Company
have to provide correct information regarding the business and make payment on time for
maintaining healthy relationship with them (Babin and Zikmund, 2015).
Marco Environment
Political factor- This element includes legislation, rules, regulations, code of conduct, practices
and policies that developed by the government. Hospitality organisation must focus on this
component at the time of operating its business.
Economical factor- This factor includes inflation, recession, interest rate and other economic
condition. These all components largely affect business condition and performance. Company
have to develop pricing strategy according to the economic conditions of country.
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Demographical factor- Demographic factor includes age, gender, education, occupation,
income etc. At the time of producing and delivering product and services in the market, company
have to understand demographic factors of marketing environment. This element aids to
company in deliver effective product and services according to demand and requirement of
buyers.
Technological factor- This is another major component that affects marketing activities and
performance of business. Due to changing technology and equipments, corporation have to make
changes within business activities and functions. This factor assists to company in improving
Promotion and marketing activities.
1.3 relevance of customer markets in the industry
Customer plays a very crucial role to earn profitability and market share. In order to achieve
determined objectives of business and earn effective profitability, company have to make
customers satisfied to maintain their brand image that can automatically improve. Corporation
should understand several factors that affect customer behaviour. Following are several factors
that affect customer buying behaviour- Pricing factor- This is very significant factor that should consider by company at the
time of operation of business. Company have to set affordable and suitable prices of
product and services. This factor affect buying behaviour of customers they always
required effective quality of product in the affordable prices (Kotler, Bowen and Makens,
2014). Psychological factor- This factor is related to customer perception, beliefs, interest,
requirement etc. For instance, most of the customer prefers to visit clean and peaceful
place. On the other hand many of the customer prefers to visit at historical place. Thus, it
can be said that different perception, interest and choice can affect buying behaviour of
customers. Web- Advertisement and promotion activity of business can largely affect the customer
buying behaviour in the market. Most of the customers like to purchase that commodity
and service that is promoted by favourite celebrity. Well design and attractive web page
can more attract customers in the hospitality sector.
 Safety requirement- Customer always prefers to visit at that place where more security
and safety. Thus, corporation have to focus on security and safety aspects.
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1.4 The rationale for developing various market segment
Market division is a procedure in which a general market is separated into little fragments
that comprises of clients having comparable enthusiasm for their decisions. Before venturing into
any market benefit, organization should fragment their market to accomplish their focused on
clients in proficient way. By breaking down the necessities and needs of the clients, Thomas
cook can outline out their techniques. These advertising systems of division can assist the
organization with recognizing their items and benefits and can work productively keeping in
mind the end goal to accomplish their focused on objectives.
Division should be possible based on topographies in which they are separated into
countries, areas, state, and so forth. In statistic division, clients are separated based on age, sex,
pay, occupation, and so on and on conduct division they are isolated on their mentality and
reaction towards other, and so forth. Market portion is helpful for Thomas cook to examine and
comprehend their clients better. Following are some sane for creating market division
Have better correspondence With help of market division, Thomas cook can without much of a
stretch comprehend the necessities and needs of specific portion clients and render
administrations as indicated by their prerequisite. They can without much of a stretch build up
correspondence and recognize the surveys and criticism from them in regards to administrations
of inn.
Lessen hazard The real essentialness of market division is that organization can undoubtedly
decrease the questionable danger of business misfortune and money related misfortune. By this
way, enterprise can distinguish what sort of administrations requires by which sort of clients.
M1 Impact of the marketing environment using approach of Pest analysis
With help of Pestle analysis and Porter five force technique, company can easily analyse
marketing environment and its various components that can affect the business performance.
These techniques assist to corporation in analyse the factors that is essential to analyse and
assess.
TASK 2
2.1 Importance of factors of the marketing mix to the hospitality sector
Showcasing blend assume an exceptionally pivotal part which alludes to the arrangement of
activities or strategies, that enterprise uses to advance its image or item in the market. In other
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word one might say that showcasing blend is a mix of four noteworthy segments that is item,
value, place and advancement. Following are different parts of advertising blend
Item Product alludes to substantial and immaterial merchandise which fulfill needs and needs of
client in the market. This item and administrations esteem is resolved as far as cash. Thomas
cook gives travel and tourism related administrations to its clients. It has additionally aircraft
administrations, inn and resort in its product offering.
Cost while administrations and item trade amongst purchaser and merchants then their esteem is
resolved regarding cash. Cost is significant segment of promoting blend which to a great extent
influence the organization deal and benefit. Thomas cook can receive advertise infiltration
valuing methodology under which company gives its convenience benefits in the low cost at
beginning stage in the market.
Advancement With help of this component organization can advance and publicize its
administrations in the market. Thomas cook can utilize online and disconnected special
exercises.
Place-Place is viewed as a helpful area at the correct time. Thomas cook offices, inns and
resorts is arranged at business zone in the UK where each client can without much of a stretch
arrive.
As per the above discussion it has been assessed that marketing mix of Thomas cook helps to
company in deliver right product and service to the right customer, at the right time and at right
distribution place. Marketing mix helps to corporation in promoting and advertising its product
and services in the market. It helps to company in convey the messgae about product and
services.
2.2 Assess the pricing strategies and policies in relation to the industry
Valuing systems and approaches for any organization is critical in numerous angles. The
evaluating structure draws a picture of the organization and setting up a particular client base.
Examination of value system uncovers that Thomas cook has a scope of choices in their
estimating toolbox which they can use to expand their advertising activities.
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If Thomas cook embraces the value skimming system under which it charges high costs of the
item and administrations at the underlying level. This can be trailed by an organization by
charging skimming costs for another item in spearheading stage. The significant favorable
position of this evaluating system is that high starting costs help to back the floatation of the item
(McDonald and Wilson, 2016). In the beginning period, the cost of generation and association of
appropriations are high. One another evaluating system is entrance estimating by which company
charges the most minimal costs for the new item and administrations. This target to brisk in
deals, catch piece of the overall industry, use full limit and economies of scale in gainful process
and repel the opponents from advertise. Evaluating entrance is a long haul valuing methodology
and ought to be embraced with incredible alert.
M2 Methods for assess and evaluate pricing strategy
There are various techniques and method through which company can evaluate and asses
the pricing strategy for product and services. These techniques include Cost based pricing
strategy, value based pricing, demand based pricing and competition based pricing etc.
TASK 3
3.1 Evaluation of the role of promotional mix
The special blend is one of the real component of the showcasing blend strategies that are been
taken in thought by the Thomas cook and includes the utilization of publicizing, advertising,
individual offering of products and advancement of offers. It causes the organization to associate
with the objective market and satisfy the objectives and benefits of authoritative deals.
The real part is to speak with the objective client of the organization by the methods for
publicizing or the business advancements, in view of the objectives and spending plan of the
organization. The monetary allowance has an extremely critical impact as it will decide the vital
advances that are been mulled over by the Thomas cook It causes the organization to pick the
reasonable strategies to meet the prerequisites of the clients and help them to meet the consumer
loyalty (Malhotra and Peterson, 2014.). With help of this advancement blend, Thomas cook can
make mindfulness about administrations among clients in the market. It can without much of a
stretch give the data about item costs, highlights, quality and so on. Further, organization can
likewise rouse and energize client for acquiring administrations by utilization of individual
offering, open connection
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With help of promotion mix, company can easily promote and advertise its product and services
in the market and inform them about product and service information.
3.3 Role of sales promotion and public relations
There is an awesome significance of offers advancement and advertising in the special endeavors
for the organization. Utilizing diverse techniques and systems in the limited time blend will
obviously say in regards to associations' correspondence destinations (Lee and How, 2018).
Thomas cook utilize the advancement blend to make their client mindful about their lodging
administrations. A large portion of the focal point of the Thomas cook is on their limited time
exercises concentrating on the advantages and estimations of the focused on clients. Limited time
blend keeps up the long haul correspondence while deals advancement can be portrayed as a
technique utilized when the organization is meaning to create moment benefit from their client.
Rivalry is developing step by step, where lodging businesses are continually intending to pull in
their focused on clients. Advertising are kept up by sorting out various exercises that are
performed by the Thomas cook to pull in various clients. The primary point of battling is to
assemble smooth connection between inn staff and the client
4.1 Relevance of market research to service industry
There is an awesome significance of promoting research in any business to set up in the
market. Statistical surveying can ensure the accomplishment of the showcasing efforts, and thus
offers of the organization. It helps in distinguishing new business openings, as well as aides in
planning promoting efforts that will specifically focus on the intrigued clients and will likewise
help in expanding deals (Kotler, Bowen and Makens, 2014). It gives data about the capability of
the neighborliness division. Through advertising research Thomas cook can stay with a keep tabs
on's development and will likewise give data in regards to their rivals. With statistical surveying,
Thomas cook can diminish the odds of misfortune to a vast degree in the market. It will
recognize the zone where the most issue emerges in the office
TASK 4
3.2 Advertising campaign for a service industry
Thomas cook is going to organise the summer holiday package for the lower income and
middle income group of customers. For address this objective and conduct this activity, firm
have to design an impressive advertising campaign. In the first stage, company select a specific
segment of market where it will desire to distribute its product and services. In the second stage,
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company will focus on pricing strategy for product and services (Gilbert, 2015). Cited venture
will select penetration pricing strategy under which company will sale its product and services in
the lower prices. In the next stage company will focus on promotional activities by which it can
advertise its product and services in the market. In this aspect, Thomas cook will use social
media for conduct promotion and marketing activities.
4.2 Market research for an appropriate product and service
Market research is very significant aspect in order to implement marketing plan regarding
promotion and advertisement of product and services. With help of market research, company
can identify the actual needs and wants of customers and deliver them commodity and services
accordingly (Bowie, Buttle, Brookes and Mariussen 2016.). The statistical surveying is vital for
the better administration of the tasks by getting the thought regarding the necessities and requests
of the organization and plan as needs be. Thomas cook will attempt the statistical surveying to
show signs of improvement thought of arranging its tasks that it requires undertaking to pick up a
superior client base in the market. It will enable Thomas to cook to diminish the loses and
increment the offers of its items and administrations. Likewise, it deals with the opposition in the
market.
4.3 Different media for marketing product and service
To draw in business official by furnishing extravagance suits to them with a few rebates and
offers will enable Thomas to cook a great deal. There are distinctive media which are accessible
for limited time occasions. For example,
Print media: This is the generally utilized media for limited time exercises. It should be possible
by giving business cards, pamphlet and postcards, through accumulating notice, and so on (Babin
and Zikmund, 2015).
Through Website: This is the most conspicuous instrument used to publicize or advance
something. It is extremely helpful for the client to accumulate data identified with their
advantage.
Through Social Media: This is the most well-known strategy which is being utilized now-a-days
as open is more positive toward online life. It is a simple stage to advance anything.
4.4 Implementation the marketing plan for an appropriate product and service
Assume we pick internet based life for the limited time occasion of the extravagance suites of
Thomas cook The administration group will ensure that the group has transferred the notice on
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the web based life handles of Thomas cook, for example, Facebook, Twitter, Instagram, and so
forth (Aulton and Taylor, 2017). This will assist the organization with increasing their clients as
the vast majority of the age is utilizing internet based life a few or alternate ways. These sort or
advancements looks so extravagant which produces interest in the client's brain to discover that
promotion.
Following are ways to implement marketing plan-
 Go to advertise system When element venturing into the commercial centers and get
some new item which serves to them for making methodologies. Leaders of Thomas cook
are make some arranging and promoting methodologies related its most recent bundles.
 New item dispatch technique Launching new item or administrations in the market is an
extremely difficult assignment for associations. Prior to this organization needs to
distinguishing market request of an item (Armstrong et.al, 2015). To gaining more
benefits with this Thomas cook make some arranging and dispatch its most recent bundle
with setting techniques.
CONCLUSION
From this report it has been concluded that in the hospitality sector marketing plays a
very crucial role for promote and advertise product and services. Marketing mix and promotion
mix assists to Thomas cook company in conduct various marketing activities in the market. It has
been also concluded that market research assists to corporation in increasing its brand image in
market and meet customer requirement regarding product and services.
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REFERENCES
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Online
 Unit 8 Marketing in Hospitality Assignment. 2018. Available through:
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