Marketing in Hospitality: A Report on Hilton Hotel's Strategies

This report provides an in-depth analysis of the marketing strategies employed by Hilton Hotel, a prominent global brand in the hospitality industry. It begins by defining key marketing concepts, including product, selling, production, marketing, and societal marketing concepts, and explains their relevance to the hospitality sector. The report then explores the impact of the marketing environment, both micro and macro, on the organization. The microenvironment includes internal factors like customers, employees, and suppliers, while the macro environment covers political, economic, social, and technological factors. The report also delves into customer markets, discussing customer issues, segmentation, and the factors influencing customer behavior, such as cultural, personal, social, and psychological aspects. Furthermore, it examines the significance of the marketing mix and its components, pricing strategies, and the role of the promotional mix. The report highlights the importance of customer satisfaction and the need for businesses to adapt to changing consumer demands and market trends. Finally, it concludes with a discussion on the implementation of marketing plans and the importance of strategic thinking in achieving business objectives. The assignment incorporates relevant models and frameworks to analyze the case study of Hilton Hotel.

MARKETING IN
HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
1.1 Concepts of marketing......................................................................................................3
1.2 Impact of marketing environment on organisation..........................................................5
M1 Identify and apply strategies to find appropriate solutions..............................................6
M3 Present and communicate appropriate findings...............................................................6
1.3 Relevance of customer market.........................................................................................7
1.4 Rational for developing market segments........................................................................8
D1 Use critical reflection to evaluate own work and justify valid conclusions.....................8
2.1 Significance of marketing mix & its components............................................................8
M2 Select/design and apply appropriate methods/techniques..............................................10
2.2 Pricing strategies and policies of firm............................................................................10
D2 Take responsibility for managing and organising activities...........................................11
4.4 Implementation of the marketing plan for a suitable service or product .......................11
D3 Demonstrate convergent / lateral / creative thinking.....................................................12
TASK B.........................................................................................................................................12
Covered in PPT.....................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing refers to the process through which firm promotes its goods and services in
market (Bharwani and Jauhari, 2013). It assists in determining needs and requirements of
potential clients which helps in the company in meeting those in effective and successful
manner. In Hospitality sector, segments like restaurants, amusement parks, resorts and hotels use
marketing tools and techniques in order to promote goods and services in an effective manner.
As hospitality industry majorly emphasize on creating experiences and developing customers,
marketing is essential for increasing customer loyalty. In the present assignment, chosen
organisation is Hilton Hotel which is a global brand of service hotels in US. The assignment
covers concepts of marketing, relevance of consumer markets as well as impact of marketing
environment on firm. Significance of marketing mix, role of promotional mix and pricing
strategies used by firm is also defined in this report.
TASK A
1.1 Concepts of marketing
Marketing concepts refers to the philosophy that companies should analyse the
requirements of their customers and takes decisions in order to satisfy those needs in much better
way than competitors (Smith, 2015). It includes 5 concepts which are defined below:
Product concept: This concept is based on the belief that customers favour those
products that offers performance, quality and innovative features. Under this concept, managers
of Hilton Hotel formulates strategies that emphasize on making constant product improvements.
Selling concept: This concept is based on the idea that people will not buy enough of
company's products unless it undergoes large scale promotional and selling efforts (Smith,
2014). Under this concept, management of Hilton hotel emphasize on developing sales
transactions instead of developing profitable long term customer relationship.
Production concept: This concept is based on the belief that customers wants products
which are accessible and affordable. Firms adopting this concept runs major risk of emphasizing
too broadly on their own activities and operations. In application of this concept, management
emphasize on improving efficiency of production and distribution (Bharwani and Jauhari, 2013).
Marketing concept: This concept holds attaining goals of organisation rely on needs of
target market and delivery of desired satisfaction (Hannam, Butler and Paris, 2014). This concept

is customer oriented and Hilton hotel emphasize on providing value to customers for attaining
high sales and profits.
Societal marketing concept: This concept is based on the belief that marketing strategy
must deliver value to clients in a way that improves or maintain society and customer's well
being (Sharpley and Telfer, 2014).
Marketing is a sequential and continuous process through which administration in the
hospitality sector plans, implements, controls, plans and analysis activities designed to satisfy
both customers' wants and needs and their personal organization's objectives. Marketing is one of
the effective department which help to increase sales and creates awareness of services to
society. In Hilton Hotel, there are techniques which are significant and helps to perform business
operations effectively (Bowie and Buttle, 2011).
According to Philip Kotler: The marketing concepts keeps that the core to accomplishing
business goals lies in identifying the wants and needs of target audience and delivering the
wanted satisfaction more effectively and efficiently than the completions (Cohen and et. al.,
2014).
There are many other departments in Hotel such as Room services, kitchen, Human resource,
finance, sales, etc. which are related to it.
Customer wants, demands and needs: Guests have wants and needs, and when a demand
is not satisfied a void exists. There are various offers which help to work according to demand of
society. As these days there is trend of customised services, so they have to make changes in
functions of various Hilton. These days’ people visit various destination as per purpose, demand,
culture of customer. Hotel Hilton take care of such aspects which are significant for growth of
business (Chan and Guillet, 2011).
Customer satisfaction: Marketing and sales professionals strive in order to develop an
awareness of an innovative alternative to fill a current requirement through advertisement of the
product. It help the hospitality industry to maintain better relation with the gusts (Mariani and et.
al., 2014). Business runs to runs profits, this can be possible which is effective for approaching
company and this helps to know what can be done trough which customer gets satisfied.
Customer availed service from Hilton Hotel and if they get satisfied, then there will mouth to
mouth promotion which is most effective tool of marketing.

Growth of consumerism: There are variety of consumer working to make changes in
plans and policies. This is essential to know what can be done through which changes are
accepted and this helps to judge demand of customer. While in on season there are rush in Hotel
Hilton, so there must be proper facilities accordingly (Bowie and Buttle, 2011).
1.2 Impact of marketing environment on organisation
Business runs in society, this s effective for making changes in activities of business
(Chan and Guillet, 2011). There must be use of techniques which are effective for making
changes in roles and responsibilities of workers (Hyun, 2010). In business environment there are
mainly two factors, they are-
MICRO ENVIRONMENT
In micro environment, there is use of techniques which are important for running
business significantly as they are internal components of business. In macro environment
following components are included-
Internal Customer: It is a controlling functions and marketing as the combinatory function.
Along with this departments and employees within the enterprise whose success relay on the
work of other departments and workers (Pechlaner and Volgger, 2012). It effects on the business
performance and profitability in a direct manner.
Employees- Employees are people who are Working in association to achieve targets of
association. They have to take care of demand of customers and act accordingly (Dickinson and
et. al., 2014). Employee influence the entire industry as they are the core service provider of
organisation. Employee of Hotel Hilton shapes the trends of services and service providing
techniques that help organisation in thriving business.
Suppliers- In Hotel Hilton, there is requirement of various factors which help to provide
final services to customers. Supplier of Hotel Hilton affect the reputation and profit along with
good relationship i.e. vital for organisation (Lew, 2014). Hilton Hotel improve a sustainable
purchasing policy in regard of stimulating their supplier which makes the entire market suppliers
more sustainable (.Hyun, 2010.).
MACRO ENVIRONMENT
Macro environment are not in control of management of company. Impact from such
factors can be positive or negative but not in control of managers of Hotel Hilton. Components
of Hotel Hilton are discussed as under-

Political- There is important role of political party to perform business goals and
objectives in effective way. Due to change in government body, there is need of change in
working style (Sharpley and Telfer, 2015). Hospitality industry of UK is vitally influenced by the
recent political affairs of country after Brexit that has led to change in norms and hospitality
policies of country.
Economical- There is need of finance which is important for running business smoothly.
Hence there must be sources which are significant for growth of company. Numerous
economical and financial affairs of UK is leading to numerous variance in the day-to-day
activities of business in more organised manner (Lee, Hsu, Han and Kim, 2010).
Social- There is use of techniques which help to work as per change in roles and
responsibilities of workers to work according to demand (Vellas, 2016). Social factors such as
market trends, people's choice, preferences etc. frame the trends of business activities and recent
affairs according which entire industry requirements is being developed.
Technological- As in Hotels there is upgraded lock style, check in check out, etc. which
help to provide ease in services. Numerous advancements in technologies and various trends in
market are shaping the hospitality trends within the nation (Tussyadiah and Pesonen, 2016).
M1 Identify and apply strategies to find appropriate solutions
Internal and external factor of the company is identify best strategy which is apply by
Hilton Hotel with motive to identify better outcomes (Jenkins,Hall and Mkono, 2014). This will
support the company to expand their business operations at international and different level in an
effective and efficient manner. It is very essential for firm to consider all the internal and
external factors so that effective strategies can be formulated such as use of high end technology
in business processes. Implementation of these strategies helps company in resolving issues
effectively and gaining high competitive advantage in market.
M3 Present and communicate appropriate findings
Appropriate finding is important for the business to analysis accurate resources which
help them to maintain their strong position at marketplace. Above discussed all internal and
external factor that effects on the productivity and profitability of company in negative and
positive manner. In this some rules and regulations that influence the working of business which
is not good for them to survive in marketplace (Leung and et. al., 2013).

1.3 Relevance of customer market
Customer market consist of numerous people who takes decisions regarding what to buy
or not. Every individual who buy goods and service is called consumer. For determining needs
and requirements of clients, a model is applied by Hilton Hotel which are defined below:
Customer's issue: customer's has different issue such as response time, service, pricing, product
quality, presentation standards (Pechlaner and Volgger, 2012). Complain management and so on.
In order to overcome such issue, customer wants speed service, options, efforts, simplicity etc.
Customer segmentation: It is also a main part of customer market which helps firm in
identifying taste and preferences of customers in order to serve them in more better manner. This
segmentation is classified into certain parts are determined as under:
Lifestyle segmentation: Classified customers into teams as per their way of activities,
interests and living (McCabe, 2010).
Purchase occasion segmentation: Divide clients into teams according to the buy
occurrence. Traveling for leisure or business.
Customer culture: This aspect emphasizes on buying behaviour of clients. It involves
sociological and psychological aspects. For determining purchasing behaviour of customer, some
aspects needs to be analysed by firm (Lee, Hsu, Han and Kim, 2010). These are:
Cultural: It is related with social class and culture of clients. So, manager of Hilton Hotel
requires to consider culture and class of customers and provide services accordingly.
Personal: This factor includes factors like occupation, age, lifestyle and income of
customer.(Leung and et. al., 2013). Consideration of these factors helps firm in developing
products and services accordingly.
Social: Family, status etc. are the factors included in it which is beneficial for firm to
identify buying behaviour of customers.
Psychological: It involves perception, beliefs, attitudes and learnings. It is beneficial for
firm in determining behaviours of customers so that effective services can be provided to them.
When it comes to occasions, from receptions of wedding to business conventions,
hospitality organisations are often seen as primary place to host such events (Pechlaner and
Volgger, 2012). Whether the functions or occasions calls for unambiguous meetings of business
or an elegant celebration, hospitality organisations have an benefit over other venues in that they

may give both food and beverage packages and space that meet a wide variety of requirements
(Nunkoo, Gursoy and Ramkissoon, 2013).
1.4 Rational for developing market segments
Market segment: It is an activity in which firm divides its market in small segments. It is
done by Hilton Hotel on the basis of:
Geographic segmentation: Divide clients into teams based on their destination—
continents, countries. It is important for the company to identify geographic segmentation of the
customers which help them to make strong preferences at international marketplace.
Demographic segmentation: In this customers are divided into groups which is based
on age, income, family size,ethnicity, gender. It is also essential and main aspects for the growth
and development of company. In this business hospitality industry provide their services
according to the income, age level of customers (Ong, 2012).
Firmographic segmentation: Divide buyers by the characteristics of the enterprise, such
as kind of industry.
Behavioural: Behaviour and attitudes of customers are the factors on the basis of which
market is divided by Hilton Hotel.
Market Segmentation enables Hilton Hotel in identifying different groups in market. If
the market strategy of company is rely upon targeting the complete mass market, it will not
survive. So, it is very important for manager of Hilton Hotel to segment market as it allows firm
in precisely reaching a customer with their particular needs and wants. This will assist company
in narrow down a large consumer group into more more broadly defined target group. It enables
managers to generate accurate predictions of each segment's likely responses. It helps them in
formulating effective strategies that are assistive in attaining organisational goals (Pechlaner and
Volgger, 2012).
D1 Use critical reflection to evaluate own work and justify valid conclusions
According to the Leung, (2013) in the organisation I am play vital and effective role for
attracting large number of customers towards business products and services. In this I have
different role to segment marketplace on the basis of customers taste, preference, choice and
many other equipments. In this I will try to follow different communication channels and
promotional mix which support me to easily attract various number of customers as well as
accomplish long term objectives.

2.1 Significance of marketing mix & its components
The tool of marketing mix is used by Hilton Hotel for developing right marketing
strategy that assists in growth of firm. It includes:
Products: Hilton hotel offers various products as well as services in the form of goods to
its customers such as food, luxury rooms, etc. They provide products and services as per the
needs of customers in order to satisfy them and gain their loyalty (Pechlaner and Volgger, 2012).
Price: Penetration pricing strategy is used by company for setting prices of its services
and products. In it, they set high prices for their product (7Ps of Marketing, 2018). Before setting
prices, various internal and external factors needs to be considered by manager such as
marketing objectives, costs, competition, nature of demand and market, perceptions of customers
regarding price etc. As the competition in hospitality sector is high, so Hilton Hotel charge prices
similar to to that of Rival's product.
Place: Hotel must be situated in those areas where customers can easily access that,
traffic flows are more etc. The hotel is located in various countries (Pechlaner and Volgger,
2012). It is located in such areas where it becomes easy for customers to access.
Promotion: Various promotional tools are used by company in order to promote its
goods and services in market and improve its brand image such as digital media, print media etc
(McCabe, 2010).
People: By its skilled and competent manpower, Hilton hotel provides high quality
services to their potential customers (Ong, 2012). They are the individuals who can make
difference among average & exceptional guest services.
Process: Well documented and detailed procedures are utilized by Hilton Hotel for
addressing every service context and situation supported by IT systems and infrastructure. They
also provide training to their employees so that they can handle system and processes in more
effective way and enables to deliver high quality services to customers (Nunkoo, Gursoy and
Ramkissoon, 2013). For example: Meal service, entertainment, reservation etc.
Physical evidence: Good experience of customers is extremely important for gaining
high loyalty of customers. Hilton hotel has good inner-exteriors, cleanliness, ticket counters,
reservation facilities etc. in the form of physical evidence (Tresidder and Hirst, 2012).
Significance of Marketing Mix to industry:

Marketing mix is an important tool for developing right marketing strategy and their
proper execution through effective tactics. In overall marketing approach, assessment of roles of
product, price, place and promotion plays vital role (McCabe, 2010). Marketing mix helps
manager of Hilton Hotel in determining appropriate market strategy that is effective for
organisation. In creating marketing plan, this is the first step. Its reason is that the decisions
regarding marketing mix also impacts on targeting, positioning and segmentation decisions.
Components of marketing mix assists manager of Hilton Hotel in new product development,
increasing product portfolio, provides direction to improve business, assist in differentiation and
helps firm in being dynamic.
M2 Select/design and apply appropriate methods/techniques
Marketing mix is one of the appropriate and effective method whch is used by each and
every organisation with purpose to introduce their new services and products to the visitors. It
will support the organisation to attract maximum base of customer as well as gain competitive
benefits within predetermined period of time. Market segmentation helps firm in selecting their
target market on the basis of various variables like age, income, attitude, behaviour, lifestyle,
geographic region etc. Selection of appropriate pricing strategy assists company in gaining
competitive advantage in market and attracting more customers towards products of firm
(Tsiotsou and Goldsmith, 2012.).
2.2 Pricing strategies and policies of firm
In order to gain attention of large group of customers and attaining business objectives,
firm use Penetration pricing strategy. In this, managers of Hilton Hotel set high prices for their
goods and services (Nunkoo, Gursoy and Ramkissoon, 2013). They also provides some discount
to customers on advance bookings and online bookings. These strategies and policies are based
on demand and supply of clients. Discount offers provided by company helps in gaining
attention of large group of customers which in turn results in attainment of goals and objectives
of company. At the time of peak load, price discrimination strategy is used by Hilton Hotel. As
the demand high, firm increase its prices and at the time when demand is low, they decline prices
of their products.
In relation to hospitality industry, different pricing strategies and policies can be utilized
which are defined below:

 Competition based pricing: This is the most common practice in hospitality industry. In
hotels, this strategy is prevalent and is also called price matching (Leung and et. al.,
2013). As per the competition in industry, prices are change by hotels. Value pricing: This strategy is often used by organisations that try to develop high value
image like quick service restaurants and budget hotels (Hyun, 2010). They try to
maintain value leadership by providing lowest possible prices for amenities.
 Cost based approach:This is the easiest approach to be implement in hospitality industry.
In this, price of product is adjusted to attain desired cost percentage (Lee, Hsu, Han and
Kim, 2010).
D2 Take responsibility for managing and organising activities
In order to take roles and responsibility in the Hotel, business manager organise different
activities and mange all functions in an appropriate and effective manner (Chan and Guillet,
2011). It is essential for the company to maximise their revenue and sales within an organisation.
Further, they set up promotional strategy which assist them to easily introduce their products and
services as well as maximise customer base in the enterprise.
4.4 Implementation of the marketing plan for a suitable service or product
Marketing plan is very important for the each and every organisation in order to promote
their products and service in an effective manner (Ong, 2012). Proper marketing plan helps
company in effectively promoting their goods. So, managers of Hilton Hotel requires to develop
a proper plan in which all the activities, tools and techniques used etc. are included.
Implementation of this plan assists in gaining better outcomes. Developed marketing plan can be
implemented by manager of hotel in following manner:
Marketing
plan
Implementati
on
Timescales Costs Evaluation of
objectives
Outcomes
Suite room This room is
significant for
couple
purpose.
2 to 3 days £1339.18 per
day
This is
significant for
earning good
profits and
there are some
complementar
It helps to get
good image in
industry.

y services too.
Twin In this type of
room there are
two beds.
These are
economical.
4 Days £1239.18 for
two days.
These rooms
are for
purpose of
short business
or educational
trips.
Serving
customer is
main target of
this type of
room.
Above mentioned is the plan for Hilton Hotel that is implemented by marketing manager
by formulating appropriate strategies and using different promotional tools like advertising, sales
promotion etc. various campaigns are also conduct by manager of hotel and discounts are
provided to customers in order to promote products and attract large group of customers (Bowie
and Buttle, 2011).
D3 Demonstrate convergent / lateral / creative thinking
It is the role of manager to innovate in their business operations and activities which
support them to attract different number of customers in an easy manner. Thus, it help the
company to achieve their goals and targets in given time period. In this hotel manager develop a
plan for suit and twin room for the visitors. It help the organisation to maximum customer
loyalty in the company for long duration (Bharwani and Jauhari, 2013).
TASK B
Covered in PPT
CONCLUSION
As per the above mentioned report, it has been concluded that marketing is an essential
aspect that assists business firm in communicating benefits and value of its goods and services in
market and accomplishing its objectives and targets in an effective and efficient manner.
Promotional mix is used by firm for gaining attention of large group of customers. For
formulating appropriate strategies and implementation tactics, marketing mix is a vital tool for
company. Manager requires to consider various macro economic factors so that suitable
strategies can be formulated and implemented. Use of appropriate promotional tools like
advertisement, sales promotion, public relation etc. helps company in promoting their goods and

services in an effective and efficient way. Components of marketing mix are very essential in
formulating appropriate marketing strategy that helps company in improving its sales and profit
ratios. In hospitality industry, different pricing approaches like cost based pricing, value pricing
etc. are used in order to gain high competitive advantage in market over the competitors.

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