Marketing Concepts in Hospitality Industry

This document discusses various marketing concepts applied in the hospitality industry, including the impact of marketing on micro and macro factors. It explores the relevance of the consumer market and the rational for developing different market segments. The document also covers the use of marketing mix and pricing strategies in the hospitality industry, as well as the role of the promotional mix in Thomas Cook. Additionally, it explains the significance of sales promotion and public relations in promotional efforts.

Marketing and Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Various concepts of marketing in hospitality industry.....................................................1
1.2 impact of marketing on micro and macro factors ...........................................................1
1.3 Relevance of consumer market with the advantages and limitations .............................3
1.4 Discussing the rational for developing different market segments ..............................4
TASK 2............................................................................................................................................5
2.1 use of marketing mix in the context of hospitality industry............................................5
2.2 pricing strategies which is used in the hospitality industry..............................................6
TASK 3............................................................................................................................................6
3.1 Role of the promotional mix in the Thomas cook ...........................................................6
3.3 a )Explaining the role of the sales promotion and public relation play significant effect on
the promotional effort.............................................................................................................7
b )Five ways through which public relation can be used as the promotional tool in hospitality
industry ..................................................................................................................................8
4.1 importance of market research in the service industry operations...................................8
TASK 4............................................................................................................................................9
3.2 Planning an advertisement campaign for the service industry operation ......................9
4.2 market research for the appropriate product or service ................................................10
4.3 Suitability of different media for marketing of the product and service......................11
4.4 Evaluation and implementation of marketing plan of appropriate product or service...11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is important in all the fields. In this business or hotel , marketing is equally
important. Under this report, Thomas Cook is considered. It will study about various marketing
concepts applied in a hotel. It will study the impact of marketing environment on the hospitality
industry. this will tell about importance of consumer market on industry. It report will explain
about rational for developing different market segments. It will illustrate about the components
of marketing mix. Furthermore, it will define about pricing strategies and policies. It will
explain about the role of promotional mix.
TASK 1
1.1 Various concepts of marketing in hospitality industry
Marketing is wide concept which is not limited up to buying and selling of product and
services. There are 5 marketing concepts which are used as follows:
 Production concept this tells about selling concept at lower costs. Under this,
products are sold at affordable prices that are attracting the all types of the customers.
More customers will come to buy product because of availability of product.
 Product concept - under this quality of goods matters only. By making continuous
improvement in product, client will buy goods because of new thing prevailing in
product (Lalvani and et.al. ).
 Marketing concept - main motive is to sell products on basis of the customer
satisfaction. All the decision are taken on the basis of requirement of the customer.
 Selling concept - in this selling of the products which are made but not taken care of the
demands of the consumers.
 Societal concept - this concept tells about fulfilling responsibility towards society. It
includes many activities that are placing dustbins, planting trees etc.
1.2 impact of marketing on micro and macro factors
Micro factors are: suppliers, competitors, public. Macro factors include: demographic,
political, social and cultural factors.
Micro factors
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Suppliers - he is the main part of the business and without him raw materials is not supplied in
the firm. If he is not supply material to the company then work in the factory will be more
affected.
Customers- they are the main part of business. Products are made for them only. He/she is the
only one who is buying goods. If he will not purchase the goods in that case firm will be the loss.
Competitors - this have the main impact on the organisation. Both the firms are selling similar
products but the pricing and various strategies are different. Its impact on the business is
significant.
Macro
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illustration 1: Macro and Micro Factors
(Source: The Impact of Micro and Macro Environment,2018)
Demographic - it includes age, education level and cultural characteristics. It will affect the
sales of product. If a firm is unable to make goods according to customer then it will occur loss.
Political - in this where business is set up where political changes are more so in that case it will
affect the firm. Rules and regulation are strict in that case firm will not be able to work in that
environment.
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Socio Cultural - under this impact of products on the society. Society consists of various types
of people with different mindset. All have various demands from goods. If demand of the
customer are not fulfilled in that case it will affect the firm.
Legal - in this legal factors are matter by the company . This includes the rules and regulation
which are prescribed by the company. Thomas cook is also following the rules and regulation
which are already set.
Technological - Thomas cook is using the latest technology for the recording and booking of
persons . Advancement is very important for the company.
1.3 Relevance of consumer market with the advantages and limitations
Consumer is the king of market. It tells about the importance of consumer in the
hospitality industry. Under this, all services are provided by the company, consumer will like it
then only he will retain there impact of marketing on micro and macro factors
Micro factors are: suppliers, competitors, public. Macro factors include: demographic,
political, social and cultural factors.
Micro factors
Suppliers - he is the main part of the business and without him raw materials is not supplied in
the firm. if he is not supply material to the company then work in the factory will be more
affected.
Customers- they are the main part of business. Products are made for them only. He/she is the
only one who is buying goods. If he will not purchase the goods in that case firm will be the loss.
Competitors - this have the main impact on the organisation. Both the firms are selling similar
products but the pricing and various strategies are different. Its impact on the business is
significant(Gowreesunkar and et.al.2018).
Macro
Demographic - it includes age, education level and cultural characteristics. It will affect the
sales of product. If a firm is unable to make goods according to customer then it will occur loss.
Political - in this where business is set up where political changes are more so in that case it will
affect the firm. Rules and regulation are strict in that case firm will not be able to work in that
environment.
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Socio Cultural - under this impact of products on the society. Society consists of various types
of people with different mindset. All have various demands from goods. If demand of the
customer are not fulfilled in that case it will affect the firm. ).
Advantages: for consumer only the products are made and their feedback is most important for
understanding the demands of him. It is necessary for the owner to keep in touch with them. It
will help in growth of the company. If consumer likes the product then firm will be successful
but if product is not like by the company then it can be more loss to the firm. The consumer will
be happier if products are according to demands of the consumer.
Limitation - work will always be according to the owner not by the consumer. The demands of
the consumer are taken care but not the irrelevant one. Sometimes it is not possible for the firm
not to fulfil all the demands of the consumer.
1.4 Discussing the rational for developing different market segments
Various segments are there but it will be more helpful in targeting customers in the
market.
Demographic - this includes age, educational level, cultural backgrounds and many more.
Mostly companies make products according to that and after that target those clients which are
coming under this. It will tell about products and how targeting is made to the consumers(1.2
impact of marketing on micro and macro factors
Micro factors are: suppliers, competitors, public. Macro factors include: demographic,
political, social and cultural factors.
Micro factors
Suppliers - he is the main part of the business and without him raw materials is not supplied in
the firm. if he is not supply material to the company then work in the factory will be more
affected.
Customers- they are the main part of business. Products are made for them only. He/she is the
only one who is buying goods. If he will not purchase the goods in that case firm will be the loss.
Competitors - this have the main impact on the organisation. Both the firms are selling similar
products but the pricing and various strategies are different. Its impact on the business is
significant.
Macro
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Demographic - it includes age, education level and cultural characteristics. It will affect the
sales of product(Katrine and Harini 2018). If a firm is unable to to make goods according to
customer then it will occur loss.
Political - in this where business is set up where political changes are more so in that case it will
affect the firm. Rules and regulation are strict in that case firm will not be able to work in that
environment.
Socio Cultural - under this impact of products on the society. Society consists of various types
of people with different mindset. All have various demands from goods. If demand of the
customer are not fulfilled in that case it will affect the firm.
Psychographic - under this, owner must have capability to read mind of consumer. This skill
is very helpful in market. It is duty of the owner to make segments according to bifurcation of
product.
Behavioural - in this, consumer behaviour is noticed by owner and after that the demands of the
consumer are met by them. In this, their taste and preference of consumer are considered and
after that only decision is taken about the product.
Geographic- in this according to the place the consumer is targeted. It is the duty of owner to
take care the likes and dislikes about product and then only decision of segmentation is taken
TASK 2
2.1 use of marketing mix in the context of hospitality industry
Marketing Mix Use
Product In context of hospitality sector, the product is
made according to needs and wants of
consumer. Services are served in this and
owner tries to provide services to satisfy
consumers.
Price Price plays very important role in any sector. It
determines number of customer will consume
the services. If services are not up to the mark
then client will deny in paying the price.
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Place For selling any product or services, place
matters. It determines about selling of number
of quantity of the goods.
Promotion These products cannot be sold without the
promotion of it. Company spend huge amount
in promotion of goods.
Thomas cook is using the marketing mix in the industry. It will be more helpful for the company
to sell the products. From this development of the company will be there(Koritos and et.al.
2018).
2.2 pricing strategies which is used in the hospitality industry.
There are various pricing strategies which is used in the hospitality sector. Making the
pricing strategies are very difficult for the firm because different things are considered while
taking decision. Various pricing strategies are :
 Pricing at premium - in this pricing organisation set the prices which are more than the
competitors. It is mostly suitable for the small business. It is beneficial in the initial
stages of the company then it customer will not like to pay that much price(Litvin and
et.al. 2018.).
 Pricing for the market penetration- for taking attention of more people the company try
to set the low prices then the competitor. In initial years business has to face the loss but
after that all profit can be earned in business.
 Economy pricing - in this all the firm related to the food items attract the customers
discounts are given. In this all the firm is target the consumers who are more price
concious. This will minimise the pricing of the firm.
Thomas cook is using the premium pricing strategy. This will be more effective because this
company is providing the tours at lower prices so that all the consumer will be attracted towards
it.
TASK 3
3.1 Role of the promotional mix in the Thomas cook .
Role of the promotional mix in the organisation is very important. Various promotion
mix used by the company
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 Public relations- in the context of the company the public relation is very important. It
makes the organisation more popular. For the tours and travels company it is
necessary to make good public relation(Katrine and Harini 2018.).
 Sponsorship- in means the investing money in the other organisation. It will be more
helpful for the company by getting the support from the others. Thomas cook is also
sponsoring the various business which needs more fund to develop.
 Advertising- Thomas cook is also selling the products with the help of advertisement. It
also does the online advertisement.
3.3 a )Explaining the role of the sales promotion and public relation play significant effect on
the promotional effort.
Five types of sales promotion in the businesses and their benefits for the producer ,
intermediaries and consumer.
Sales promotion will be more helpful for attracting the customer. There are various types
of sales promotion used by the company to pro mote the product.
 Discounts - this is very common for the business to attract by this means. This given to
the customers mainly on the occasion.
 Price off - in this price off deals are more to attract the customer. Like in liquor bars is
providing the happy hours for the particular day to attract customer.
 Price pack deals - this type of deals is given on the liquid food products. It will
encourage the customers to buy the products which are likely to them .
 Samples - in this sample is distributed in the mass audience to know the taste of the
consumer . It helps in getting the instant feedback from them.
 Coupons - this type of selling is done in the expensive shops. In this on the products
through coupons the prices are off(Gursoy 2018).
Benefits to producer - in this more customer will buy the product then it will be helpful for the
growth of the company. In this producer will earn more profit. Consumer will like the product
and increase in the sale will maximise the development of the company.
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Benefits of the consumer- all the products are made according to the consumer. If product will
be more helpful in retaining the customer. From the point of view of the consumer the products
are purchase because of them. If the product is not according to them in that case they will not
buy the goods and loss will occur to the organisation only.
Benefits of the intermediaries - organisation will distribute to the whole seller and they will
sell to the retailer . He will distribute to the agents and they are directly selling to the customers.
If more goods are sold to the consumer in that case agent will earn more commission. The more
he will sell the more he gets .
b )Five ways through which public relation can be used as the promotional tool in hospitality
industry
In the promotion , public relation can be used is the biggest tool . It is contributes in
maximise in the sales of the company. By keeping in regular touch with the public is the
necessary for company(Gowreesunkar and et.al.2018.). Regular feedback from the customer is
boon for the company. It is good for the company because it will increase the popularity and
recognition. It will make status of the company in the eyes of law. It is the duty of the owner to
take care of the demands of the consumer. In this all hospitality sector ,it is more needed. Public
relation will maximise the contacts. It will increase the duty of the superior to provide good
service to customer and by which mouth publicity will increase the popularity in public about the
company. Thomas cook is also following these practices to increase the sales of the
organisation.
4.1 importance of market research in the service industry operations
Significance of market research in service industry operation are very helpful for the
organisation. Research is necessary for the market. It helps to determine the needs and wants of
the consumer . It supports company to follow the recent trends. It will be very helpful for the
company's development. It helps in knowing about the competitors of the business . Strategies
they are following for pricing , for development of the company. It is more helpful for the firm
to make appropriate decisions by seeing the contenders of the company. This will help firm in
taking correct decision about price setting of the firm. Thomas cook also do market research of
the company through this exact customers who are interested in the organisation and whom to
target will be known by organisation. This helps to pre plan the future about the arrangements of
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tours and travels. Through market research it will be more support for the company to determine
the target customers like families , students , professionals and many more.
TASK 4
3.2 Planning an advertisement campaign for the service industry operation
Thomas cook is planning to organise an advertisement campaign for the educational tour
for the youngsters. Tour will 15 days and start from the 5 of march 2018 till 15 march 2018.
The places will be covered in this are Egypt and Paris. In this guide will be arranged for
students who will describe each and every thing to them . Transportation and hotel facilities are
given by the company itself. In this company is charging only Rs. 1000 per person. Tour will
start from the Egypt at 8 o clock sharp and no students must be late at any cost. Though it is an
educational tour but some activities are arranged by the organisation for having fun while
touring. The firm is providing the all facilities but no kind of misbehave is tolerable otherwise
strict action is taken against them. Students are allowed to carry the snacks with them. Costly
items are carried on their own responsibility(Lo and Fang 2018.). In tour there will be two
members to take care of students. Students who are interested must give their names to their
teacher before 26 February 2018 . Bus will be arranged by the entity and passport and visa as
well. Students who are interested must provide all their information with documents to officer
who send by firm.
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4.2 market research for the appropriate product or service
Market researches for the service of educational tours is arranged for students. For this
firstly it is determined by the company that which product is liked by the consumer. The
demands of the consumer which is needed in the product. For this primary and secondary
research is done by the company.
Primary research secondary research
This refers to the direct research done by the
company to know about the consumer. There
are different ways through which it can be
done are questionnaire , survey ,etc.
In this market research is done by taking the
data and facts of the research which is already
done. Sources are magazines ,journals , etc.
Through this research company get to the real
facts about the interested people.
By this data is taken of secondary research. It
is not sure that facts are correct or not. Firm
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can't totally rely on this.
4.3 Suitability of different media for marketing of the product and service
Media Uses
television Through this it will reach the mass audience
and help the Thomas cook to gain popularity.
It is most media used by the business.
Magazines Magazines are read by most of the people.
Nowadays there is more trend of the social
media. But it also reaching the audience and
helping the company to gain more popularity.
4.4 Evaluation and implementation of marketing plan of appropriate product or service
Thomas cook is using different marketing media for the promoting the services. It will
increase the awareness of the product and services and after that it is using various promotion for
services provided by Thomas cook . By implementing the marketing plan for the company it
will be create more opportunities for the firm . It helps the company to increase the sales by
following different strategies by which the company can move to the development path.
CONCLUSION
From this report it is concluded that five concepts of marketing are discussed. Under this
it has also discussed impact of macro and micro factors on the business. it is also discussed
about the implementation of marketing plan for the services. Different media which is suitable
for the Thomas cook . Importance of marketing research for the services which is used in the
company. Planning of advertisement campaign for the educational tour for firm. Role of
promotional mix is also discussed in this study. Various pricing strategies which are used by the
entity. Use of marketing mix in the context of the hospitality industry.
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REFERENCES
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management perspectives.25. pp.185-188.
Katrine, D. and Harini, C., 2018. THE ANALYSIS OF EFFECT OF SENSE, FEEL, THINK,
ACT, AND RELATE AS THE EXPERIENTIAL MARKETING VARIABLES TO
CUSTOMER LOYALTY OF ANDELIR HOTEL SEMARANG. Journal of
Management.4(4).
Koritos,and et.al. 2018. Hospitality servicescape effects on customer-employee interactions: a
multilevel study. Tourism Management.
Lalvani and et.al. 2018. SYSTEM AND METHOD FOR HOTEL MARKETING AND MANAGING
INVENTORY. U.S. Patent Application 15/698.428.
Lo, Y.C. and Fang, C.Y., 2018. Facebook marketing campaign benchmarking for a franchised
hotel. International Journal of Contemporary Hospitality Management. 30(3). pp.1705-
1723.
Perera, G.R. and Perera, I., 2018. Influence of Social Media Marketing on the Brand Image of
Organizations in the Hospitality Industry of Sri Lanka. In Media Influence: Breakthroughs
in Research and Practice (pp. 371-383). IGI Global.
Online
The Impact Of Micro and Macro Environment Factors on Marketing. 2018. [Online]. Available
through <https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-
macro-environment-factors-on-marketing/>
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