Marketing Strategies and Consumer Behavior in Hospitality Industry

This report provides a comprehensive overview of marketing principles and their application within the hospitality industry. It explores various marketing concepts, including production, product, marketing, and selling concepts, and analyzes the impact of the marketing environment on the sector. The report delves into the relevance of the consumer market, examining factors influencing consumer decisions and the importance of market segmentation. It also discusses the components of the marketing mix (product, price, place, promotion) and their significance. Furthermore, the report analyzes pricing strategies, promotional mix elements such as public relations, sponsorship, and advertising, and the role of sales promotion techniques like discounts, gifting, and coupons. Finally, it highlights the importance of market research and the implementation of marketing plans, providing a detailed analysis of how these elements contribute to the success of hospitality businesses. The report draws examples from the Thomas Cook company to illustrate these concepts.

MARKETING IN
HOSPITALITY

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 the concepts of the marketing concepts................................................................................1
11.2 impact of the marketing environment on the hospitality sector .........................................2
21.3 relevance of the consumer market in the hospitality industry ............................................2
1.4 reasons of developing different market segment..................................................................3
TASK 2............................................................................................................................................3
2.1 importance of the components of marketing mix in the hospitality industry.......................3
2.2 explaining the pricing strategy and policies in relation to the hospitality industry .............4
TASK 3............................................................................................................................................5
3.1 the role of the promotional mix.............................................................................................5
3.3 analysing the role of the sales promotion and the public relation play an important role....5
Five types of the sales promotion are.........................................................................................5
TASK 4............................................................................................................................................6
4.1 Importance of market research..............................................................................................6
3.2 Planning an advertising campaign for hospitality industry...................................................7
4.2 undertake the market research for an appropriate product or the service.............................7
4.3................................................................................................................................................7
4.4 implementation of the marketing plan .................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In this we are covering the topic of the difernt concepts of market and how they are
helping to grow the industry. There are different reasons for which the company has made the
sole market segments. There are diverse social media which are increasing the reach of the
consumer.
TASK 1
1.1 the concepts of the marketing concepts
 Production concept – in this concept the products are available at low cost. This concept
is the oldest one. The company follows this concept then it can attract more customer
because of it is affordable by the consumer. From this company can generate the revenue.
 Product concept – this concept states that product's quality and its new features should be
there. In this the company is making regular improvement in the product without thinking
that the market font want Hartford example earlier floppy disk are used by the but the
market don't want this (Hernandez-Morales, Cross-fertilisation and McCabe, 2016).
 Marketing concept- these concepts states that knowing the market well in the sense of the
customer. Customer is the king of the market. And all the products are made according
to the needs of them. The company should follow this concept and by applying this they
can achieve better position then before.(Schroeder, A. and et. al., 2016. Managing and
Marketing Tourism Experiences: Extending the Travel Risk Perception Literature to
Address Affective Risk Perceptions. In The Handbook of Managing and Marketing
Tourism Experiences (pp. 379-395). Emerald Group Publishing Limited.)
 Selling concept- this concept states that the company will make the product whether the
customer want or not. They focus on the selling only. This organisation follows this
concept who have the bulk of the products to sell.(Law, R., and et.al. 2018. Systematic
review of hospitality CRM research. International Journal of Contemporary Hospitality
Management. 30(3), pp.1686-1704.)
The Thomas company follows the production concept because it is very inexpensive so customer
will get more attracted towards it.
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11.2 impact of the marketing environment on the hospitality sector
To understand the market people should take care of the both environments. At the time
of recession the hotel industry get affected very much. The consumer has to make the more
saving because there is no money in the market. There are various factors which are considered-
Political -any company get affected by the rules, regulations made by the government. If the
company work in the that environment where the rule changes on the regular basis then it will
make the work more complicated. The working in that restricted environment will affect their
work. (García-Lillo, and et.al. 2018)
Regulations – the all work of the hotel industry depends on the taxes only.Taxes are the most
known source of revenue which is given by the local government. If the rules and regulation is
more charged on the company then it will be difficult to work.(Campos, .and et.al., 2018)
Economic factors – the factors that are affecting the middle class people are the economic factors
like rise In the price, wage inflation etc. If the prices rises in case of the inflation then it will be
difficult for the consumer to purchase anything.(Starks and Carroll, 2018.).
)
21.3 relevance of the consumer market in the hospitality industry
In the every industry the consumers are the main part and without that no one can work ahead.
In Thomas cook tours and travels also focus on the the consumer only. They are focussing on
making offers, packages on the the basis of the consumer choices. The consumer is the king of
the market. There are many factors that make the changes in the decision of the consumer. If the
company recognises that it can make better growth in the future. Consumer will retain to the
company when it will provide the services according to him. They are making many efforts to
provide the services according to the consumer some of them are : international tour packages,
India tour packages, honeymoon holiday packages at very affordable prices. They providing the
dream come true of the consumer. On international holiday trips , they provide the facility of the
foreign exchange,visa and travel insurance. The company is providing the Ferox visa services to
the students who want to travel abroad for the sake of then study.(.Starks, and Carroll, 2018)
1.4 reasons of developing different market segment
there are many reasons that company chooses to prosper the different market segments
and some of them are :
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 For selection particular market – the foremost reason is to recognise the target market.
This is very important for the company to make the things particular for sale. For selling
also we need to make the target that for this group of people we want to sell.
 Market understanding - by dividing the market into the fragments the company can better
know the needs of the consumer. It can earn the knowledge about the different types of
the consumer. Thomas cook company also understanding the customers by
differentiating the market.
 The position of the company can be known- the true position of the company can be
known by us. It helps us to make new strategies and focus on the consumer well. The
company also doing these things so that the we can know where the company is.
 The new opportunities - by making the new fragments the company can solely focus on
the target consumer as well and pour its full energy in fulfilling the needs of the
consumer. The company is also focussing on this only so that the revenues can be
generated.
TASK 2
2.1 importance of the components of marketing mix in the hospitality industry
the study of the marketing mix is very important which includes the four p's
Product – the Thomas company always focus on providing the best services to the consumer at
affordable prices. The product features always creates value to it.Like quality of the product ,
packaging, labelling etc. increases the value it.
 Price- the company should set the price which are in the budget of the consumer. If the
owners of the company wants to earn the revenue then they have to restrict the price
according to them . Thomas also set the price after seeing all the factors. The price is
the important factor because if the prices rise than there will be the danger of
minimising or decreasing the customer.
 Place – the area where the consumer can easily reach. Thomas company is providing the
services online then the websites the consumer use should be easily opera table. The
area of the stores matters because if the area is not known than it will impact the sales.
 Promotion - the methods which are done by the marketing department to promote the
product. Thomas company also uses special techniques to promote their sales.
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Promotion is necessary in making every sales successful, without it there will be no
awareness about the product.
 The Thomas company is following all 4 p's of marketing mix. It increases the sales,
brand value . They always provide their services in the best manner. The price set by
them are all affordable. They have their online stores so the customer can reach anytime.
2.2 explaining the pricing strategy and policies in relation to the hospitality industry
Pricing strategies means that at what price the company is selling the product.
There are different types of pricing strategies some of them are : pricing at the premium, pricing
for market penetration, economy pricing, price skimming, psychology pricing, bundle pricing.
Thomas cook follows the penetration pricing strategy. By following this strategy the consumer
are more get attracted towards them. Low pricing strategy creates the word of mouth publicity
and it will benefit the company as well . The more we take the risk the more we earn the profit.
By this the company earn more profit. This pricing strategy is followed because more and more
consumer reach their services and it is in the budget of them. The more publicity the company
will get the more the brand value get stronger day by day. By seeing the low prices the all class
of people can benefited from this. After establishing the brand the company will increase the
prices so that the is standard maintained. The company is following the pricing because it is the
medium to reach the mass consumer in minimum time
TASK 3.
3.1 the role of the promotional mix
 Public relations- is very important for the company without making the long run
customer relationship, the brand value as well as the popularity increases. Its impact of
public relation on the company is massive because no company will survive without
this. For making the public relation just provide them the best services. Thomas
company also making the long run relationship with the customer that's why they are at
the top and they have their list of the loyal customer.
 Sponsorship – the sponsorship means funding for the others. The role of this very large
because by doing this they are investing the money on them and before investing they
have made full research on the company. Thomas company also done the sponsorship
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for the small or prime TV programs like take me out, the gossip, get your act together .
By doing this they are building the new talent or preparing them for their best.
 Advertisement - the role of this promotion has very vast scope. It helps the company in
making the awareness in the mind of the consumer. Thomas cook also doing the
advertisements because of this only they are reaching the customers more.
3.3 analysing the role of the sales promotion and the public relation play an important role
Five types of the sales promotion are
 Discounts – these are the most common way of the promotion. When discounts are
offered in the stores the consumer are maximised. Discounts increase the sales of the
company.
 Gifting - during the festive time the large stores provide gifts to their customers. This the
most awaited moment of the customer. The excitement remains in them about what type
of the gift the company is giving to them.
 Coupons- this is applicable in that store where the prices are high and for increasing their
sales they give coupons to their customers. It is basically the certain amount is off in the
actual prices.
 Sampling – the sampling is the expensive but the successful technique which are used by
the company selling ea tables, deodorants etc. Once the customer like the taste of the
product then he will become the loyal customer.
 Exchange offers – this technique is very common one and available at the time of the
occasions. If you are exchanging the product then the company will give you the certain
percentage of the discounts.
Thomas cook follows all the sales promotion techniques because it increases the customers and
by this their brand value also increased.
The importance of the sales promotion in respect of the consumer, producer, intermediaries-
sales promotion is necessary for the producers because by increasing the sales the revenue will
maximise. The producer earn profit. The consumer can purchase more because all the offers are
for the consumer only (Schroeder and et.al., 2016). The companies try that how well they serve
them. The intermediaries earn more commission because the sales increases then their
commission also increase.
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The public relation can be used as the promotional tool in the organisation because the company
is making the long term relationship with the customers because the list of the loyal customer
will increase and maximise customer will retail in the organisation.
TASK 4
4.1 Importance of market research
Market research plays an important role for the business as it helps in ensuring that all the
areas related to attraction of customers have been covered. Satisfying the needs and requirements
of the customers is the sole objective of every company which is required to be achieved by
them. In this scenario, data is collected by the management to determine that whether a particular
product or service will be able to satisfy the requirements of the customers or not. Further,
decision making regarding what is to be offered to be them can also be decided based on it.
Thomas Cook can gain various information through market research (Fernández-Morales,
Cisneros-Martínez and McCabe, 2016). It can be inclusive of invaluable information with respect
to the competitors, demographics to be targeted, current market trends, etc. It also helps in
analysing spending traits of the consumers to make an assessment that what type of pricing
strategy must be adopted by Thomas Cook. The collected data will then aid in decision making
aspects of the organization. Discovering customer needs can also help in indulging in long term
planning for the organization in such a manner that it can help in reducing the overall risk of
decision making. It can also help in offering the services which are not offered by the other
competitors so that their needs and requirements can be fulfilled in the maximum possible
manner. It also helps in gathering information regarding income range of customers, buying
behaviour and location aspects that plays a substantial role in overall decision-making aspects.
3.2 Planning an advertising campaign for hospitality industry
Attached in Flyer
4.2 undertake the market research for an appropriate product or the service
Thomas company is providing the packages of tours and travels. They are providing the tour for
the students and for this they are making the research primarily . They are making the contact to
the students that which type of the tours they want and after that they are making past research
on the basis of that they come to know the that previously the customer are satisfied or not and
what changes we can made to increase our sales.
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4.3
Media Suitability of media
Social media The role of the social media in promoting the
services of Thomas cook is they are more
connected to the mass of the consumer and
their reach to the consumer also increases.
Social media has the aware the consumer about
the services which are provided by the
company.
TV advertisement The TV advertisement has vast reach to the
consumer because the people who are not
following the company online they are
reaching them through this. Through visuals
the customer can easily identify the company
as well as make presence in the mind of the
consumer.
4.4 implementation of the marketing plan
Thomas cooks by using the social media they have increased the brand awareness among the
customers mind. The customer become more loyal to the company. The company can make its
brand equity. They can reach the more customers more. They are making the presence in the
mind of the consumer . Through this they are making the reputation or the status of the company.
The emphasise the customer to more engage ib their company. They are providing the best
service to the customer . By incrasuing the brand loyalty the sales will increase and company can
earn more profits.
CONCLUSION
From this we conclude that the importance of the marketing concepts are very helpful for the
company. We get to know the real position of the company. Social media is very helpful in
making the brand . Through the market research we will be knowing that whre we are standing .
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REFERENCES
Books and Journals
Hernandez-Morales, A., Cross-fertilisation, J. D. and McCabe, S., 2016. Seasonal concentration
of tourism demand: Decomposition analysis and marketing implications. Tourism
Management. 56. Pp.172-190.
Schroeder, A. and et. al., 2016. Managing and Marketing Tourism Experiences: Extending the
Travel Risk Perception Literature to Address Affective Risk Perceptions. In The
Handbook of Managing and Marketing Tourism Experiences (pp. 379-395). Emerald
Group Publishing Limited.
Law, R., and et.al. 2018. Systematic review of hospitality CRM research. International Journal
of Contemporary Hospitality Management. 30(3), pp.1686-1704.
García-Lillo, A. and et.al. 2018. Mapping the “intellectual structure” of research on human
resources in the “tourism and hospitality management scientific domain” Reviewing the field and
shedding light on future directions.International Journal of Contemporary Hospitality
Management, 30(3), pp.1741-1768.
Campos, A. C.and et.al., 2018. Co-creation of tourist experiences: A literature review. Current
Issues in Tourism, 21(4). pp.369-400
.Starks, P. and Carroll, W., 2018. Hospitality Business Simulations Today: New Generation
Simulations for New Generation Students in a New Generation Marketplace. InInnovation in
Hospitality Education (pp. 181-193). Springer, Cham.
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