Marketing Strategies in Hospitality Industry

The provided document is a review and future directions with a special focus on the hospitality industry. It discusses various marketing strategies such as customer relationship management, social media marketing, and online marketing in hotels and restaurants. The document also examines the impact of technology on hotel marketing and provides a summary of relevant research studies and articles related to the topic.

Running head: PRINCIPLES AND PRACTICES OF MARKETING
Principles and practices of marketing
University Name
Student Name
Authors’ Note

2PRINCIPLES AND PRACTICES OF MARKETING
Executive summary:
The report is prepared for evaluating the effectiveness of customer relationship management
strategies of company based in United Kingdom. Improvement of customer relationship
management strategies have been recommended in the report. Promotional mix techniques of
organization are evaluated by the application of proper marketing principles relating to
promotional strategies. The chosen organization for conducting the analysis of relationship
marketing strategies is Radisson Blu Edwardian Hotels. Later part of report demonstrates the
recommendations made for improving the promotional mix of organization.

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Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Evaluating the effectiveness of CRM techniques used by Radisson Blu Edwardian Hotels:....3
Recommendations on how organization can improve its CRM:...............................................6
Evaluating the promotional mix techniques used by Radisson Blu Edwardian Hotels:............7
Recommending promotional mix strategy for future:..............................................................11
Conclusion:..............................................................................................................................12
References list:.........................................................................................................................13

4PRINCIPLES AND PRACTICES OF MARKETING
Introduction:
The report is prepared to evaluate the effectiveness of customer relationship
management techniques of chosen organization that is Radisson Blu Edwardian Hotels.
Radisson Blu Edwardian is a collection of distinctive hotels in Manchester and London.
Customer relationship strategies are strategies that concerns customers and are about tailoring
of service delivery process and physical process to customer’s requirement. Such services
and products are modified as per preferences and needs of customers and leads to
development of customized marketing at individual customer level. Radisson hotels are ideal
for group travels by providing options of four star and five star hotels that are located close to
main districts of city. They are a division of Carslon hospitality worldwide that is a
hospitality service provider globally. Such hotel groups prioritize on group check in and
arranging group meals, special weekend conference rates, theatre tickets and other
requirements (RadissonBlu-Edwardian.com 2018). Report also demonstrates the promotional
mix techniques that are used by hotel groups. Furthermore, recommendations are provided on
further improving the techniques customer relationship management and promotional mix
strategy by the application of AIDA model in such strategy formulation.
Discussion:
Evaluating the effectiveness of CRM techniques used by Radisson Blu Edwardian
Hotels:
CRM is the philosophy of anticipating the needs of customer for providing right
product at right time and at right place. A strategy aligns the interaction of customers with
culture of organization, business structure and information technology to the benefits and
satisfaction of customers and profits of organization (Armstrong et al. 2014). Such techniques
can be regarded as a set of leadership communication between customers and representatives

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of customer services. In the competitive scenario, many organizations such as hotel are trying
to get into close relationship with customers by capturing external and internal data for
ascertaining preferences and needs of customers. Objective of CRM is to align the business
process and strategies of customers for building long-term customer loyalty and ultimately
generating profits for company. Hotel industry is a service sector that put great emphasis on
relationship marketing for building loyal customer base and thereby increasing the profits
(Gummesson 2014).
The Customer relationship management program of Radisson Hotel takes into account
three components comprising of customized dialogue, incentives and personalized service
and recognition. CRM is a strategic tool that is used by hotel group of Radisson that entails
interaction with its customers. One of the integral parts of CRM strategy of Radisson is
taking actions and recognition (Kandampully et al. 2015). Criticality of the relationship
strategy is about building profitable relationship with the most valuable customers of
organization. The integral part of process of CRM of organization is guest logic with the help
of which Radisson delivers and recognizes high level of service to the most valuable
customers (RadissonBlu-Edwardian.com 2018). This guest logic intends to address the
recognition component of customer relationship management. Radisson hotel is able to
identify, act, recognize and ensure successful delivery of services to customers with the help
of harmony suite of products and guest logic. Hotel is able to understand the activities of
micro markets, profiles of customers and accordingly target the customers and tracking the
return on investment of direct marketing campaigns (Xie and Chen 2014).
The strategy of CRM is largely dependent upon commitment, attitude of staffs and
performance. Primary contact for all support services and business delivery is the director of
hotel services. Such services involve customer service, information technology, distribution,
marketing and sales, education and training activities. Moreover, business channels of hotel

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levers tools of customer relationship management and such program helps in leveraging
strength across entire group of hotels. Focus on practices of customer relationship
management is created by involvement of nineteen-person division that uses the program
management and analytics. At Radisson, there are always efforts to provide customers with
some extra services and they are being offered gold point plus. In addition to this, reward
program is tailored to needs and preferences of customers. The adoption of contemporary
marketing techniques in hotels would require readiness of hotels that are associated with
organizational factors (Leung et al. 2017). Such factors involve financial resources, business
size and experience of business.
The maintenance of relationship marketing implementation requires hotels to work on
facilitation of technology installation, cost of training, cost of maintenance and subsequent
enhancement. Hotels are better prepared for the implementation of relationship marketing if
they have adequate financial resources. In order to pull the customers, the advanced
computerized marketing efforts have been utilized by Radisson hotels. Nevertheless,
requirement and expectations of customers can put pressure on hotels and customers cannot
explicitly ask hotels for the application of relationship marketing strategies. Therefore,
customer pressure can be regarded as an external factor affecting the implementation of
relationship marketing. If hotels have sufficient support from technology vendors, then they
are more willing to risk of technological innovation adoption (Nowak et al. 2015).
Customization is seen as an approach that lessens the variability by controlling the
nature of yield and minimization of standards. Customized service is regarded as an
instrument of administration for controlling, foreseeing and shaping the experiences of
services. It has been purported that hotels such as Radisson are looking for ways for
influencing youthful customers. Superior quality and superior value are the central point to
the customization concept of customer relationship marketing strategy at Radisson (Padilla

7PRINCIPLES AND PRACTICES OF MARKETING
and Garrido 2014). However, the efficiencies of hotel relating to customer service are
questionable.
Recommendations on how organization can improve its CRM:
For improving the strategies of customer relationship management in hotel industry,
continuous improvement should be made in database and technology functions. This would
make organization effective in analyzing behaviour and information of customers.
Firms among potential and current customers should take efforts to increase customer
loyalty by encouraging communication and building brand communities. The strategy of
CRM should be implemented in such a way that it helps in contribution to enhancing bottom
line profits and ongoing relationship of customers.
An offshoot of CRM is customer experience management that is a marketing
movement focusing on experience of customers at every touch points between customer and
service provider. Techniques of customer experience management should be included in
CRM as it is a valuable and effective practice (Rahimi and Gunlu 2016). It is depicted from
industrial survey that if guest experience problem during their stay in hotel, then they are less
likely to return. CRM techniques should incorporate techniques of improvement analysis so
that Radisson group can eliminate recurring problems and maintain loyal base of customers
(Rahimi 2017). It would have positive impact on satisfaction of guests and lowering cost of
operations.
CRM techniques provides hotels with latest offering that will help hoteliers in
developing comprehensive profiles of guests from reservation information and create
demonstration of the fact that property of hotel is suitable to their needs. Moreover, it will
also help in generating realistic profiles on stay and spending patterns of guests. Therefore,
for increasing the spending and loyalty of customers, such profile generation will help in

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creating marketing efforts that are guest centric. Other latest offerings of CRM that should be
incorporated into the strategy are driving guest centric data down to the level of transactions
(Nazir et al. 2014). This in turn would help in delivering greater value to customers by
allowing guest facing technology and employees.
Evaluating the promotional mix techniques used by Radisson Blu Edwardian Hotels:
The hotel industry is one of the main demanding and developing industry all over the
globe and therefore the organizations associated in the hotel business are in the idea of
constructing an effective marketing plan with the help of which they can increase their sales
and increase their customer base (Solnet, Boztugand Dolnicar 2016). The marketing mix
strategy is designed by most of the organizations with the help of which the companies are
able to course a path and a plan with the help of which they market their brand name and
their services to the potential and the existing customers. One of the key elements of the
marketing mix is the promotional mix that is looked upon as a significant aspect that helps in
the promotion and advertisement of the products and services.
The promotional mix techniques explains a blend of the promotional variables that are
selected by the management of Radisson Blu in order to attain their goals and objectives. The
promotional mix is a part of the marketing mix and it is seen that there is an ideal process of
budget allocation for the different components within the promotional mix in order to attain
the most effective marketing outcome. The challenge for the management is to discover the
precise mix for the company (Li, Wangand Yu 2015). Radisson Blu Edwardian Hotels like
any other hotel chains have their own and unique marketing mix strategies and focus mainly
on the promotional mix strategies as the company is associated with the hotel business and
therefore they have the main intention of serving their customers with quality and desirable
services in order to satisfy their customers and generate customer loyalty. The rise in
competition in the hotel industry has compelled Radisson Blu Hotels to look into their own

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strategies and thereafter make changes in their policies according to the changing demand in
the market. Radisson Blu Hotel chain have identified that promotional mix is one of the key
components that is useful for advertising and promoting their hotel in the economy and even
in the market so that they can attain their desirable goals and objectives (Durna, Dedeogluand
Balikçioglu 2015). It is essential to understand the techniques that have been incorporated by
Radisson Blu in order to have an understanding of the changes that can be implemented in the
coming future in order to enhance their promotional strategies and thereby increase their sales
and customer base. The promotional mix technique incorporated by Radisson Blu has been
explained as follows:
Advertising: Radisson Blu in the current time period have discovered that there has
been significant rise in the level of competition and therefore rise in the level of
advertisement in the market where the hotel operates is essential with the help of which the
potential customers can have knowledge about the hotel and the kind of services and
amenities that are offered to them (Huang and Sarigöllü 2014). The hotel chain has
recognised that social media is one of the precise areas where they can advertise their
company. Radisson Blu therefore advertises their company and their services and products in
various social websites in the form of small videos so that the users of these websites can
gain knowledge about the same. The company when making use of social media for the
purpose of advertising does not initiate broadcasting (Riasiand Pourmiri 2015). The most
precise campaign is the one that activates and engages most of the individuals to become
their brand ambassador. The company is hugely dependent on the mouth to mouth publicity
because of the fact that the customers who are satisfied become regular and loyal and thereby
they are the ones who suggest the hotel to the others. Radisson even advertises in various
newspapers and signboards that are displayed in the localised areas with the help of which the
customers and individuals can have some idea about Radisson. Radisson has appointed

10PRINCIPLES AND PRACTICES OF MARKETING
distinctive mass medium sponsors who have the task of advertising on behalf of Radisson
through various mediums like billboards, print media etc (Harrington, Ottenbacherand Fauser
2017). The strategies of advertising are undertaken according to the budget that is allocated
for advertising. Being a hotel business, advertisement is one of the key aspects.
Personal Selling: Personal selling is the mechanism of persuading and assisting one
or more prospects in order to purchase a service or a product or even perform on any ideas by
oral communication generally through telephone and face to face communications (Leung,
Xueand Bai 2015). Radisson has their belief on individual attention and therefore associates
to their customers on personal grounds. The company forwards SMS and electronic mails to
their regular and frequent customers and offers them with discount coupons for free or
upgraded services in order to reward their loyalty towards the hotel chain. The process of
direct selling is a key process with the help of which Radisson can interact with the customers
directly and thereby can communicate with them about the services they offer and can even
obtain suggestions from them with respect to what other products and services that can be
introduced in the hotel. Radisson is aware of their communal accountabilities and therefore
takes initiative in the corporate social responsibilities.
Sales Promotion: This is the non-media and media marketing communication which
is utilised for a pre-determined restricted time to raise the demand among the consumers,
encourage the demand in the market or enhance the availability of the product (Yang 2015).
In this respect, Radisson undertakes various contests where the consumers are asked to
participate and the winners are given attractive prizes like free night stays in the hotel along
with complementary dinners and lunches. Radisson even undertakes exhibitions where they
display their special features and amenities so that the customers can be satisfied and get
motivated to stay in their hotel. Radisson has huge banquet halls and therefore looks to offer
wedding ceremonies and corporate meetings. Radisson offers discounts and special offers to

11PRINCIPLES AND PRACTICES OF MARKETING
the corporate groups where they offer a package for the banquet halls and stays so that the
corporate companies can receive all the services under one roof (Dzhandzhugazovaet al.
2016).
Public relations: Radisson maintains a separate public relations within their
management structure and they have the job of communicating and meeting with the clients
and interact with them with the help of which the desires and the grievances of the customers
can be known and thereafter changes can be made so that they can satisfy their customers.
The public relation department undertakes press releases and corporate anniversary parties
and even advertises their packages and services to the market with the help advertising in the
newspapers, magazines and even in televisions (Choiet al. 2016). Charitable contributions are
undertaken by Radisson in order to make the customers aware of the social attributes of the
company.
Direct Marketing: The process of direct marketing is a form of advertising that
permits Radisson to directly communicate with their customers and this mainly undertaken
by providing feedback form to the customers so that they can write their experiences and
recommendations to the hotel and they can make changes in the same. The management
maintains a database of their existing customers and interact with them on frequent basis
making the customers feel that the company cares about them and thereby motivating them to
visit the hotel once again(Ali, Aminand Cobanoglu 2016).
Sponsorship: The management of Radisson Blu even sponsors in various events and
programs with the help of which customers can observe the advertisements and thereby their
promotional activities can be developed.
These are the techniques that are incorporated by Radisson with respect to the
promotional mix that plays an influential role in the development of the marketing strategies

12PRINCIPLES AND PRACTICES OF MARKETING
of Radisson. The promotional strategies that have been incorporated by Radisson are in line
with the AIDA framework. The impact of the advertising media on the promotional mix of
Radisson is even observed as Radisson initiates attention, desire, action and interest among
their customers so that customers are attracted towards the services they offer and become
loyal to them(Šerić, Gil-Sauraand Ruiz-Molina 2014). The sales process of Radisson are
optimised sustainably and this is undertaken on the basis of the AIDA framework.
Recommending promotional mix strategy for future:
The promotional mix strategy that is incorporated by Radisson Blu is an ideal one but
according to the changes in the market that is taking place, it is seen that several changes can
be undertaken that can be helpful in enhancing the operational activities and the marketing
strategies of the company. Radisson can undertake Guerrilla marketing which is a new and
innovative concept with the help of which the hotel can bring the attention of the customers
towards the services and products that have been offered. They can use flyers, posters and
graffiti and even viral marketing campaigns that are not anticipated by the customers. These
kinds of strategies and management can be helpful in developing the promotional strategies
for Radisson. Radisson even can assess the strategies that have been incorporated by the rival
companies with the help of which they can understand the changes that can be brought
forward and thereby changes can be made accordingly that would be useful for the
improvement of the promotional mix strategies. AIDA model of promotion helps
organization in gaining attention of target market. Consumers respond to promotional
messages of hotel via affective, cognitive and conative methods. Radisson can employ AIDA
model in their promotion mix strategies that would help in creating demand for their services
and products. Furthermore, it would also help in gaining attention of customers. Moreover, it
also helps in the involvement of customers in the process of product development.

13PRINCIPLES AND PRACTICES OF MARKETING
Conclusion:
From the analysis of customer relation management strategies of Radisson, it can be
seen that hotel has been able to embrace relationship marketing at their best and have assisted
in fusion their vision. The system of their relationship marketing intends to create credibility
among customers. Prior to the implementation of such customer relationship strategies,
marketing strategies were done independently by particular department. However, such
relationship building strategies came with minimal effort services that elucidates decline in
specialized efficiencies and sharp decline in services provided to customers. It has also been
ascertained that hotel lacks coordinated marketing approach and this has the consequences of
negatively influencing the Radisson hotel marketing exercise. Evaluating of promotional
strategies of Radisson depicts that they are well incorporated into the marketing efforts. It is
so because hotel makes use of several platforms for promoting their brand. Therefore, it can
be concluded that Radisson is required to make further improvement in their techniques of
CRM in order to strengthen their brand identity and adopt a suitable promotional mix
strategies.

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