Marketing in the Hospitality Industry: Analysis and Strategies Report

This report provides a comprehensive overview of marketing principles and their application within the hospitality industry. It begins by defining key marketing concepts and then evaluates the impact of the marketing environment, including micro and macro factors, on businesses like Mondrian London. The report analyzes the relevance of consumer markets, exploring the black box model and the importance of understanding consumer behavior. It also examines market segmentation strategies, including geographical, demographic, and behavioral approaches. Furthermore, the report delves into the marketing mix, assessing the importance of product, price, promotion, and place, with a case study on Thomas Cook's pricing strategies. It examines the role of the promotional mix, including personal selling, advertising, and public relations, and discusses the significance of market research in service industry operations, concluding with an analysis of campaign planning and media suitability for marketing efforts. This report provides a detailed framework for understanding and implementing effective marketing strategies within the hospitality sector.

Marketing in Hospitality
Industry

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Concepts of marketing for service industry......................................................................1
1.2 Evaluate impact of marketing environment on industry..................................................2
1.3 Relevance of consumer market in the industry................................................................3
1.4 Rational for developing different market segments.........................................................3
TASK 2 ...........................................................................................................................................4
2.1 Importance of components of marketing mix.................................................................4
2.2 Evaluate pricing strategies and policies in Thomas cook ................................................5
TASK 3 ...........................................................................................................................................5
3.1 Role of promotional mix..................................................................................................5
3.3 Role of sales promotion and public relations in promotional efforts...............................6
4.1 Relevance of market research to service industry operations .........................................7
Part 2 ...............................................................................................................................................7
3.2 Effective campaign plan by designing TV clip video .....................................................7
4.2 Market research for product or service ...........................................................................8
4.3 Evaluate the suitability of different media for marketing ...............................................8
4.4 Evaluate implementation of marketing plan ....................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry consists of different fields in the service industry and it includes
lodging, event planning, transportation, cruise lines etc. Marketing is important so that the
industry can easily promote the goods and services (Bharwani and Jauhari, 2013). Company can
use various methods such as advertising, publicity and online marketing to promote various
goods. Hence, company can easily increase the profits and can enhance the market share.
Assignment describes about the Mondrian London which is a hotel and give different services to
all users. It was established in London in U.K. It also describes about Thomas cook which is
travel and tourism company. It was located in U.K. Report explains about the different concepts
of marketing and evaluating the impact of marketing environment. It also describes about the
importance of components of marketing mix to industry and evaluate the pricing strategies in
relation to industry. It also discuss about the role of marketing mix and evaluate role of sales
promotion and public relations. It also explain the planning of advertisement campaign for
service industry operations.
TASK 1
1.1 Concepts of marketing for service industry
Marketing can be refer as the study and administration of exchange relationships i.e.
optimised to create, retain and satisfy the consumer. In simple term, it is the process in which
seller sells goods to buyers according to their needs and wants. Through this, hotel can easily
fulfil all requirements and results in increasing the satisfaction all users. Different concepts of
marketing used by hotel industry are: Production: It is the concept in which hotel mainly focus on low production costs, mass
production and high production efficiency. Customers expect that they can receive
cheapest goods from hotel. Hence, hotel sells goods and services at a lower rate. They
create goods according to needs and wants of all users. For example Mac Donald and
Burger King uses this technique (Bowie and Buttle, 2011). Selling concept: It is the concept in which company sells goods and services according to
requirements and demand of all customers. Production department helps in guiding and
instructing selling section so that they can easily sell the products. For example club
membership given by Mondrian London (Chan and Guillet, 2011).
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 Marketing concept: It is the concept in which goods are promoted by using various
techniques. This concept is based on pull strategy state that company need to build strong
brand image so that consumer prefer their product. It includes advertising, publicity,
direct marketing and online techniques. Through this they can easily promote the services
of hotel and hotel can easily earn more revenues. For example Thomas cook uses this
concept.
 Societal marketing concept: In this concept, hotel performs many social activities and
they can maintain good image in minds of all people. It includes giving money to
charitable institutions . Hence hotel can maintain positive image in society and they can
expand their operations in many countries. For example Mac Donald uses this concept.

1.2 Evaluate impact of marketing environment on industry
Environment consists of different internal and external factors which can affect the hotel.
For example Mondrian London has to evaluate the impact of marketing environment. Impact of
factors on hotel industry are:
Impact of micro factors: It is also known as micro environment. Factors are described below:
 Customers: Customers demand different services from hotel and hence they have to give
different and unique services to customers. It helps hotel industry to earn more revenues. Suppliers: Suppliers give inputs to hotel industry. Hotel has to give extra incentives to
suppliers so that they can supply good quality of raw materials.
 Competitors: Various companies and hotel are giving unique services to customers.
Hence, hotel has to create plans and policies so that they can easily beat the competitors.
Impact of macro factors: Macro environment includes the external factors which can
influence the company. It includes political, economic, social, technological, environmental and
legal factors. If there is a situation when there all companies are using advanced technologies
then, Hotel has to create different plans and policies so that they can easily adopt the advanced
and latest techniques in order to easily satisfy all users and can earn more revenues (Hyun,
2010). Hence, they can maintain positive image in minds of all users. This helps hotel industry
to easily expand the operations in minimum time.
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1.3 Relevance of consumer market in the industry
It is important for hotel to evaluate the characteristics of consumer behaviour in the
market so that they can easily fulfil all needs and wants of all people. Importance of consumer
market in hotel industry is described below:
Black box model: It is the model that identifies the stimuli responsible for the customers
behaviour. It consists of two parts that is buyers characteristics and their decision making
process. Customer characteristics can be personal, social, cultural and psychological etc.
Marketer cannot bring changes as they are internal to the consumers. There is a decision
making process which consist of different step. Through all stages consumer can easily take
decision to purchase the product.
Advantages
 It is very important to identify the needs and wants and hotel can use this mode to
evaluate requirements and demand of buyers. Hence, they can change their methods and
process so that they can easily satisfy all users. Hotel can easily maintain unique image in minds of all people and this help them to
easily expand their activities and operations. For example company identifies the needs
and wants of users and can create effective promotional strategies to satisfy the users.
Hence they can maintain unique image in minds of all users.
Disadvantages:
 Test can be redundant if they are already used by the software designer also identifies the
contradictions and vagueness in functional areas.
 Test case are difficult to be designed and they do not give clear and concise
specifications.
1.4 Rational for developing different market segments
Market segmentation is dividing the whole population on basis of different criteria such
as geographical, demographic etc (Lee, Han and Kim, 2010) . There are different criteria on
basis of which company divide the population. Basis of segmentation used by hotel industry are:
Geographical segmentation: In this segmentation process hotel industry divides the
population on basis of cities, town and villages. Hence, they can reach to targetted customers.
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Demographic: Hotel industry divides the population on basis of different criteria such as
age, caste, religion, creed etc. Through this, it can easily create effective strategies to reach the
targeted users.
Physiography: In this step, hotel industry divides the population on basis of attitude,
traits, values, lifestyle and behaviour of people. Hence, they can easily create various plans and
policies so that they can easily reach the targetted customer.
Behavioural: In this method, consumer are segregated on basis of behaviour of all
people. Hence, organisation can easily reach the targetted users and can maintain unique position
in minds of all people.
Benefits of targeted marketing and positioning:
Hotel industry can easily create unique position in minds of people by creating effective
strategies and policies. Through targetting a particular market, hotel can easily satisfy all needs
and wants of all people. They can also create positioning strategies and hence they can easily
reach to targeted people. Through this, hotel can easily maintain positive image in minds of all
users and they can easily expand their operations.
TASK 2
2.1 Importance of components of marketing mix
Marketing mix refers to the set of marketing techniques which company uses to stimulate
customers to achieve firm's objectives. There are four types of marketing decisions which
Thomas Cooking travel uses that are product, price, promotion and place.
4p's of Thomas cooking Travel are as follows:
 Product: Company provides domestic and international tour packages and also
customised packages at affordable prices. Thomas Cooking travel offers forex services
like reload forex cards, buy foreign exchange. It also offers charter and schedule
passenger airlines, cruise lines, hotels & resorts.
 Price: Thomas Cooking Travel uses pricing at premium which means firm sets a cost
which is higher than its competitors.
 Promotion: Company uses various promotion tools such as public relation, direct
marketing, advertisement and sponsorship.
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 Place: Thomas Cooking travel is established in UK and operates in various countries that
are Germany, Europe and its headquarter are in Peterborough, England and Uk.
2.2 Evaluate pricing strategies and policies in Thomas cook
Company use different pricing strategies so that they can easily the prices of all products and
services. Different pricing strategies and polices used by Thomas cook is described below:
Pioneer pricing : In this hotel fixes a base price for all products and services. It is kept
high so that hotel can easily recover the development costs. They also evaluate the competitors
strategy and if rivals enter quickly then they adopt this pricing strategy so that they cannot enter
in market.
Price skimming: It is the strategy in which new or innovative company charge higher
price for services (Nunkoo, Gursoy and Ramkissoon, 2013). As demand of users are satisfied
then hotel reduce the price. Hence they keep initial higher prices and the reduce the prices. It
helps in attracting various users and hence hotel can generate more customers.
Prestige pricing: In this step company changers higher price for superior quality of
products and services. Hence company give tour packages at a huge rate . This strategy is
adopted so that they can easily capture many customers (Ong, 2012).
Psychological pricing: In this step company tries to encourage their sales based on
emotional response of all people rather than observing the rational responses. Hence hotel use
this strategy and earn more revenues.
Odd even pricing: In this hotel thought that customers are attracted through charging of
odd prices . It also helps the customers to believe that travel company is charging lower prices.
Hence they can easily attract various users.
Price lining: In this travel company can sell different tour packages at different rates so
that they can easily attract various users. This also helps the company to sell more tour packages
to all customers. If there are attractive prices then customers purchase the product even if there is
slight change in the prices.
TASK 3
3.1 Role of promotional mix
It is marketing plan that emphasis on the target market and consist of four elements.
These components are used for creating awareness and stimulate the consumers to buy particular
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products and services. Elements included in promotional mix are advertisement, public
relations, personal selling, sponsorship, direct marketing and sales promotion.
Personal Selling: This element in hotel industry is widely used as it is the most suitable
technique to cover the primarily 'group' market. It is effective tool for certain stages of buying
process, especially in building up consumer's conviction, preferences and action.
Advertisement: It can be defined as any paid type of non personal presentation of goods, ideas
and services. The main objective of advertisement is to persuade customers to buy their products
and services.
Public relationship: This element is used for obtaining favourable publicity, creating positive
company image and handling unfavourable stories or rumours.
Sponsorship: This is used for supporting an activity, event, person and company financially and
by the provision of products and services (Pechlaner and Volgger, 2012).
Direct marketing: This element of promotional mix is used for selling products and services to
the customers directly. For example mail orders, telephone selling (Tresidder and Hirst, 2012). In
hospitality industry, they have opportunity to show their presence in physical and real way with
help of direct marketing.
Sales promotion: These are the short term incentives which motivate to buy the products and
services. Example of sales promotion are special packages, coupons, bundling,etc.
3.3 Role of sales promotion and public relations in promotional efforts
Sales promotion and public relations are refers to promotional activities that help
producers in influencing customers to buy the product which in turn will drive the sale and
generate higher revenue.
Sales promotion:- It is a process of persuading the customers to the buy the good and services.
Sales promotions are of following types:
Discounts:- Company add discount to products they offer for gaining attention of customers. It is
beneficial for producers as they get higher sale which in turn will increase the revenue.
Incentive:- Under this method company offer holiday packages, monetary benefit to
intermediaries on achieving a decided target. It is beneficial for both producer and intermediaries
as company is able to achieve their target on time and mediators will get bonuses.
Coupon:- Coupons are the alternative of discount over product or services. It help customers to
buy product at lower price.
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Bundling:- Bundling is the combination of two products which are offered at special price. It is
beneficial for producers in improving their sale.
Contest:- It is a way to pursued guest to buy product and submit an entry form which provide
consumer a chance to win prize.
Public relation:- It is a promotional tool used to promote positive image of company among
public. Following are the types of public relation:
Media :- Under this companies uses media coverage for circulating messages through media
channels to get attentions of public.
Social media:- This platform allows company to bypass direct message to customers and can get
feedback for improving services.
Newsletters:- Newspaper can strengthen the brand image and personal connection with clients as
it circulate valuable information (Tsiotsou and Goldsmith, 2012) .
Brochures:- Well designed brochures will reflect true image of company and help in driving
customers to visit company's website.
Business event:- Events are opportunity to remove customer's doubt and in building a positive
brand image.
4.1 Relevance of market research to service industry operations
Market research is important so that company can easily determine the latest trends and
they can create effective strategies and policies to adopt the latest treads (Ong, 2012).
Importance of market research in Thomas cook are described below:
Identify the problem and opportunities: Company after evaluating the target market can easily
identify the problems and opportunities so that they can easily satisfy the needs and demand of
customers. It also provides relevant data and information on nature of competition, sales
performance and channel of distribution. Hence firm can easily solve the problem of customers.
Formulate marketing strategies: Company can also create different marketing strategies so that
they can easily maintain unique and good position in minds of all users.
Part 2
3.2 Effective campaign plan by designing TV clip video
Covered in Poster
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4.2 Market research for product or service
Market research can be done through various methods. In this step company performs research
and they can easily determine the needs and wants of all people. They performs research on basis
of primary or secondary basis. They use primary research in which company collects the data
and information from first time. Secondary data includes collecting data and information which
is already been collected by another person (Pechlaner and Volgger, 2012).
Company uses primary research in which it create Questionnaire. Questionnaire created by
Thomas cook is described below:
Q.1 Are you satisfied with the services?
1. Yes 2. No
Q.2 Are customers satisfied with discount?
1.Yes 2. No
Q.3 Do you want to visit the company again?
1. Yes 2. No
Q.4 Do you think that company is accepting customer's demand or any other changes?
1. Yes 2. No
Q.5 What suggestions do you want to give to the company?
4.3 Evaluate the suitability of different media for marketing
Suitability of different media by Thomas Cook is described below:
Television Television is suitable as it can reach to many
people. It is suitable for small company
Internet It is an effective and efficient mode through
which company can easily promote the
services in unique manner. Through this
company can reach to many people within and
outside country.
Direct marketing Company can easily promote various services
through this technique.
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Company uses online tools and techniques so that company can easily reach to many people in
minimum time. This helps in earning of more revenues.
4.4 Evaluate implementation of marketing plan
Marketing plan consists of objective and different strategies so that company can easily promote
various products (Tresidder and Hirst, 2012). The five way to improve the work is described
below:
 Company has to set effective objectives so that all employees can easily achieve them.
 Firm has to make changes in plans and policies so that company can easily improve their
work .
 Company has to use effective promotional techniques.
 Company has to make changes in techniques and tools to satisfy users.
 Organization has to make changes in their marketing plans so that they can easily satisfy
users.
Benefits: Through marketing plan company can easily reach to targetted users and they can
create effective strategies to target customers.
Disadvantages: Sometimes company takes wrong decisions as it is based on improper analysed
data. Hence it cannot create effective strategies (Tsiotsou and Goldsmith, 2012) .
CONCLUSION
It can be concluded from above report that marketing for hospitality is essential in every
company. Concepts of marketing and impact of marketing environment on industry. Importance
of components of marketing mix and role of promotional mix. Planning an advertisement
campaign and market research for product or service.
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REFERENCES
Books and Journals
Bharwani, S. and Jauhari, V., 2013. An exploratory study of competencies required to co-create
memorable customer experiences in the hospitality industry. International Journal of
Contemporary Hospitality Management. 25(6). pp.823-843.
Bowie, D. and Buttle, F., 2011. Hospitality marketing: principles and practice. Routledge.
Chan, N. L. and Guillet, B. D., 2011. Investigation of social media marketing: how does the
hotel industry in Hong Kong perform in marketing on social media websites?. Journal of
Travel & Tourism Marketing. 28(4). pp.345-368.
Hyun, S. S., 2010. Predictors of relationship quality and loyalty in the chain restaurant industry.
Cornell Hospitality Quarterly. 51(2). pp.251-267.
Lee, J.S., Hsu, L.T., Han, H. and Kim, Y., 2010. Understanding how consumers view green
hotels: how a hotel's green image can influence behavioural intentions. Journal of
sustainable tourism. 18(7). pp.901-914.
Leung, D. and et. al., 2013. Social media in tourism and hospitality: A literature review. Journal
of Travel & Tourism Marketing. 30(1-2), pp.3-22.
McCabe, S., 2010. Marketing communications in tourism and hospitality. Routledge.
Nunkoo, R., Gursoy, D. and Ramkissoon, H., 2013. Developments in hospitality marketing and
management: Social network analysis and research themes. Journal of Hospitality
Marketing & Management. 22(3). pp.269-288.
Ong, B. S., 2012. The perceived influence of user reviews in the hospitality industry. Journal of
Hospitality Marketing & Management. 21(5). pp.463-485.
Pechlaner, H. and Volgger, M., 2012. How to promote cooperation in the hospitality industry:
Generating practitioner-relevant knowledge using the GABEK qualitative research
strategy. International Journal of Contemporary Hospitality Management. 24(6).
pp.925-945.
Tresidder, R. and Hirst, C., 2012. Marketing in food, hospitality, tourism and events: a critical
approach. Goodfellows Publishers.
Tsiotsou, R.H. and Goldsmith, R.E., 2012. Strategic marketing in tourism services. Emerald
Group Publishing.
Online
What Is Hospitality Marketing?, 2018. [Online]. Available
through<https://learn.org/articles/What_is_Hospitality_Marketing.html>.
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