Marketing Essentials: Hilton Hotel Case Study and Analysis Report

This report provides a comprehensive analysis of Hilton Hotel's marketing strategies, focusing on the role of marketing, its interrelation with other functional units, and the application of the marketing mix (7Ps) to achieve business objectives. The report begins with an introduction defining marketing and its importance, followed by an overview of Hilton's background and its marketing process, including mission, situation analysis, strategic marketing analysis, marketing mix planning, and implementation and control. It then delves into the roles and responsibilities of a marketing manager, the interrelation of marketing functions with other departments like operations, finance, and human resources, and the significance of effective marketing. The second part of the report compares how Hilton and Marriott hotels utilize the elements of the marketing mix (product, price, place, promotion, process, and physical evidence) to achieve their organizational objectives. The analysis highlights the strategic differences in their approaches, such as Hilton's niche strategy and premium pricing, and Marriott's follower strategy and focus on minimizing costs. The report concludes by emphasizing the importance of interdepartmental relationships for the success of a hospitality organization. This report is a valuable resource for students studying marketing and hospitality management. Students can find more resources on Desklib.

Hospitality Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
1 Explain the role of marketing and how it interrelates with other functional units in a
hospitality organisation..........................................................................................................1
LO 2 ................................................................................................................................................5
2 Compare ways in which hospitality organisations use elements of the marketing mix (7Ps)
to achieve overall business objectives....................................................................................5
CONCLUSIONS..............................................................................................................................9

INTRODUCTION
Marketing is the study of relationship among customer. It is the process of making
relationship and satisfying customers with focus on increasing profits and sales of the
organisation (Kotler and et.al., 2018). Also it is a activity done by companies to promote buying
and selling behaviour of the products and services. Following study is based on the Hilton which
is leading brand in global economy in hospitality sector. It was founded by the Conrad Hilton in
1919. I has more than 586 hotel in different locations. This study will includes the different
marketing processes and role and responsibilities of a marketing manager. It also highlights the
marketing influences on other departments and importance of marketing.
LO 1
1 Explain the role of marketing and how it interrelates with other functional units in a hospitality
organisation
Marketing process
Marketing:- marketing is process of promotion of products and services so in influences the
buying behaviour customers (Shaw, 2016). It id a customer oriented process where it focus on
the consumers and their needs. It mainly focus on satisfaction of customers and retaining the
customers. Marketing process consist five major steps-
11 Mission11 Situation analysis11 Strategic marketing analysis11 Marketing mix planning11 Marketing implementation and control
Mission:-it means that preparation of mission statement in which it contains objectives of the
company which are going to be achieve in the future. For hotel Hilton it have to set the plans of
expansion of business in UK and set objectives which have to achieve (Du Preez and Bendixen,
2015). The statement show that why is company exists in market and how it can benefits its
clients.
Situation analysis:- in means that analysis of situation which the company have to face in the
future and analyse that what are future opportunities and what will be difficulties should be face
in future. For that Hilton can analyse what is culture of UK, what is taste of customers and
what they prefer to have,who are competitors of the company and what they are providing to
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society (Ritter and Geersbro, 2018). Also Hilton have the strength of strong channel of delivering
the services so it can analyse how it can utilise it strength.
Strategic marketing analysis:- it means that the find out target section of markets or to set
audience that the company is going to target (Ardito and et.al., 2019). After evaluation of target
section Hilton should set measurable goal that should be achieve in the near future and develop
a budget for achieve goals and objectives.
Marketing mix planning:- marketing mix refers to the use of marketing mix elements. In this
step Hilton needs to set the it process of development of the products, price of products and
services that should be achieve, promotion activities which are adopt by company which cover
the more and more no. of customers and decide the place of distribution.
Implementation and control:- It means that after making the plan steps it to implement plan
or put the plan in action and check that plan is working properly or not and control the plan and
if it is not working properly than take corrective actions.
Role and responsibilities of a marketing manager
Marketing manager:- marketing manager is a person who regulate and control the activities
related to marketing also develop marketing strategies and line up goals and objectives of the
company. The marketing manager play vital functions in an organisation which are as follows
Illustration 1: marketing process overview
(source: The Definitive Guide to the Strategic Marketing
Planning, 2017)
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Work with the top management:- work with top management is as main function of the
marketing manager (Wang and et.al., 2017). It assist to top level management and determine
marketing plans and policies so that problems in making of plan can be removed.
Create marketing plan:- marketing manager make marketing plan of company. Hilton
marketing manager have duty to create a plan which is suitable for the company and can be
easily achievable for the employees. It forecast sales, advertisement, sales promotion and
products related decisions
Responsibilities of marketing manager
Responsibilities towards the organisation:- manager of Hilton is responsible for hotel where it
responsible for achievement of predetermined goal and objectives of company. Where manager
gather the results of market research and control quality and quantity of the production. Also
forecast sales of company and produce plan for products and price fixation.
Responsibilities towards the employees:- a manager is responsible for the employees also
because employees are dependable for managers (Fan, Lau and Zhao, 2015). So that manager is
responsible for the providing proper training and fair remuneration to employees. Also make
schemes for employees welfare.
Interrelates the marketing functions with other functions of the organisation.
Marketing is a function which affect all other department functions of the organisation.
Relationship with the operation department:- marketing department needs to work closely
with the production department so that it ensure that satisfaction of customers needs by adequate
research an developing the product needed. Also marketer research that quantity needed in
market and production of quantity. Operation department works proper if the marketer will
collect the proper information. And marketing department works properly if operation
department provides the resources.
Relationship with the finance department:- marketing department also affect decisions of the
finance department. There is adequate budget to meet needs of research, promotion and
distribution of research. The finance department have to ensure performance of all the
department so that Hilton hotel finance department should provide appropriate funds to its
marketing department for the successful research. If the finance department provide the fund
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properly than marketing department also work proper and if marketers work properly than funds
of finance are also increase
Relationship with the human resource management:- marketing also relates with the HRM
where in ensure the proper skills and staffing levels for research and development of the new
product and ideas. Also meat production targets (Datta, Ailawadi and Van Heerde, 2017). So
that employees fulfil needs of marketing department. If Human resource department provide
the good workforce to the marketing department than performance marketing will increase.
Importance of marketing
Marketing is a important part of organisation for being successful in the long run it helps
to promote the sales with better service to customers. In environment of competitors and full of
similar products and services marketing create differentiation. Following reasons proves that it
is important part of every organisation
11 helps communicate with customers:- the marketing is source to communicate with
customers where marketers directly connect with consumers and identify there needs so
that it attract the customers towards organisation.11 differentiate products from competitors:- it also helps to differentiate the product from
the other companies by enabling marketing (Loo and Leung 2018). For Hilton Marketing
helps to design products and services according to needs of customers and it makes the
product which attract customers.11 it empowers the customer services:- it helps to increase customers services by providing
them products according to there needs and wants. so that customer becomes the loyal
consumers of organisation. If marketer successfully analyse need of the customers than
it helps in production of goods and services. Which increase sales of company. For
hotel Hilton it helps to gives services which are needed by the customers from market
research.
Significance of effective relationship between functional department, conclusion.
Without a interrelationship between different departments the organisation such as Hilton
can not survive. For example if finance department do not record sales made by sales
department, then it is completely abominable for the sales department to do sales (Loo and
Leung 2018). So it is very important that all departments must co operate each other to reduce
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competition which is unproductive, knowledge enhancement, helps in trust building, also
encourage ownership sense.
LO 2
2 Compare ways in which hospitality organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives
Different Tactics which is applied by the organisation to achieve the organisational
objectives
Marketing Mix Hilton hotel Marriott hotel
Product Generally people or the
audience see a product as a
tangible thing but it is not
merely a tangible thing it
includes services also in it
which is intangible. In the
planning of Hilton variety
products will be offered to the
customers. Product plays a
vital role in the developing a
plan and also achieving
overall marketing strategy of
Hilton by finding out what are
the product which are needed
by the customers. Hilton
follows Niche strategy which
focuses on niche market.
Marriott hotel follows follower
strategy. Which mean the
Marriott hotel do not invest in
research and development
heavily. Therefore focuses on
lower prices of the product.
Price Price includes positioning
which means what price is
appropriate for the product,
Discount which includes when
to avail discount and on which
time to avail discount to the
Marriott uses no frill approach,
which involves minimizing the
marketing and selling cost.
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customers, What payment
method to be adopted and
whether to apply credit
payment or not. While
planning for Hilton Premium
price for products will be
charged and also discounts at
festivals and at winter season
will applied (Du Preez and
Bendixen, 2015). Price helps
to achieve the overall
marketing objective by
following the above mention
point.
Place Place includes the channel of
the distribution of product
from manufacturer to the
customer. Plan for Place can
be choosing large channel for
Hilton achieving the
marketing objective of
minimum cost.
Marriott hotel believes in small
channel for distributing the
products, because it suits the
hotel which is favourable for
their operations.
Promotion This include all the activities
to inform the customers about
the product. Digital marketing
is chosen in designing the plan
for Hilton (Fan, Lau and Zhao,
2015). This can achieve the
objective of marketing by
gathering more and more
customers.
Marriott uses traditional selling
approach and believes that it is
more effective.
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Process The meaning of Physical
evidence is the environment
which include delivering of
service. The example of
Physical evidence is business
cards, websites etc. In
designing the plan for Hilton
physical evidence in the form
big building in which hotel
can provide prominentProcess
is the activities in flow in
which delivery of service take
place. To plan for Hilton
which is by achieving 50% of
the market share by doing
marketing planning (Du Preez
and Bendixen, 2015). This
will contribute towards
achieving the objective of
Hilton by creating deadline
and forming direction.
services is taken. This will
contribute to the objective of
the Hilton by attracting
customers by the
infrastructure in the building.
Marriott hotel uses its website
for the process because this
can gain more and more
customer nationally as well as
internationally.
People People are the one
which includes all humans
which play a role in delivery
of service. For planning in
Hilton prominent people will
Marriott hotel believe in hiring
people and then providing
appropriate training to them to
make people more skilled and
competent.
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be hired. This will enhance the
service quality of Hilton.
Process Process is the activities in
flow in which delivery of
service take place. To plan for
Hilton which is by achieving
50% of the market share by
doing marketing planning (Du
Preez and Bendixen, 2015).
This will contribute towards
achieving the objective of
Hilton by creating deadline
and forming direction.
Marriott hotel rather than
creating target believes in
actual activities performed by
the people. This benefits the
Hotel by doing actual
evaluation.
Plan for strategic marketing which uses 7Ps in order to achieve the object which is overall
for marketing.
Company information
Hilton is a global brand and was founded in may 1919, have completed about 100 years.
The founder of the hotel was Conrad Hilton (Fan, Lau and Zhao, 2015). The hotel is having its
headquarter in McLean, Virginia, U.S. The hotel is located in near around 580 locations. It is one
of the largest brand in the entire world. Hilton is famous for providing free Wi-Fi, keyless entry
etc.
Objective
The aim of Hilton hotel is to make more and more profit and selling its variety of things
such as service of room, maximising its sales and also marketing.
SWOT analyses
 Strength of Hilton hotel is, the hotel is having a lot of experience and also having vast
scope in hotel line.
 Weaknesses of Hilton hotel is, The hotel is having a high amount of debts.
 Opportunity of Hilton Hotels, making international alliances.
 Threat, is of political instability and terrorism threat.
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PEST analyses
 Political instability is a huge risk factor in UK which influences the visitors in number.
 Economic factors such as change in interest rates among the nations effects the customers
a lot by which if the currency value declines it can result in increase in customers (Datta,
Ailawadi and Van Heerde, 2017).
 Social factors includes growing population in UK which will definitely increase the
customers for Hilton.
 Technological factors, usage of internet have been drastically increased which is an
opportunity for Hilton hotel to do digital marketing.
Marketing strategies
The marketing strategy used by the Hilton Hotel is customer satisfaction strategy which
includes satisfaction of the customer at its top level.
STP
Segmentation of Hilton is scrutiny of the most prominent guest and taking utmost care of them.
Targeting of Hilton is on the rich people who are ready to spend money on Hilton due to which
Hilton can generate high profits (Du Preez and Bendixen, 2015). Positioning is after targeting the
customers, positioning which means how the future guest see the property of Hilton as a best
ever choice.
Budget
The budget which is estimated for this year is around £500000 for marketing and selling
of Hilton Hotel.
Monitoring and controlling
In monitoring which event and which tool to be used in the event and what actions are
necessary for the event is considered for the Hilton hotel. Monitoring can be done on launching a
new cuisine in the new location of Hilton (Loo and Leung 2018). Whereas controlling is
rectifying the deviation which occurs while comparison of actual and budgeted performance.
CONCLUSIONS
From the above report it can be concluded that marketing is a essential part of every
organisation before starting any new business or expanding business. It concludes that hotel
Hilton has a good opportunities in the starting new firm in UK with effective market planning
and management. It also highlighted that marketing manager is important for every organisation.
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