Hospitality Marketing Essentials: Hilton Hotel Strategies and Analysis

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This report provides a comprehensive analysis of marketing strategies within the hospitality sector, focusing on the Hilton Hotel chain. The report begins with an introduction to marketing concepts, emphasizing their significance in building brand image, attracting customers, and fostering loyalty. It delves into the roles and responsibilities of marketing functions within Hilton, including service management, pricing strategies, research, and marketing information management. The interrelationship between marketing and other departments, such as HR, production, and finance, is explored to highlight the importance of integrated strategies. A key component of the report is a comparison of Hilton and Travelodge based on the 7 Ps of the marketing mix, assessing product, price, place, people, process, and promotion strategies. The report concludes with an overview of the marketing plan components, offering insights into how Hilton aims to achieve its business objectives and maintain a competitive edge in the global hospitality market.
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HOSPITALITY
MARKETING
ESSENTIAL
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Marketing concept .................................................................................................................3
Role and responsibilities of marketing functions in Hilton ........................................................3
Service management ...................................................................................................................3
Pricing..........................................................................................................................................4
Research ......................................................................................................................................4
Financing .....................................................................................................................................4
Marketing information Management...........................................................................................5
Promotion.....................................................................................................................................5
P2 Interrelationship of marketing and other functional departments. .........................................5
Marketing and HR........................................................................................................................5
Marketing and production............................................................................................................6
marketing and finance..................................................................................................................6
P3 Comparison between two hospitality organizations on the bases of 7 Ps'..............................6
P4 Covered in PPT.......................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing is significance in any business, it hospitality sector marketing strategies helps
to build brand image, attract new clients and maintain the loyalty of existing consumers
effectively. It include both digital and print collateral that target customers while also helps to
attract the new ones (Baker and Magnini, 2016). Hospitality industry centring on creating
relationships and enhancing experience with clients, with the helps of marketing they can inspire
consumers loyalty and also reach out to new ones which is very essential part of assuring the
member of business success. The present report is based on Hilton hotel, run its large chain of
business in UK and all around the world. It explain the responsibilities and roles of marketing
functions within organization and also discuss how it relate to wider organizational context.
Furthermore, this study justifies the ways in which two organizations apply marketing mix in
hospitality sector to achieve objectives of their business. It clarifies at last marketing plan for
company consist with different components(Baker and Magnini., 2016).
P1 Marketing concept
Managing relationships with the profitable customer, it is marketing. Marketing aim is to build
value and capture value through customers in return. In marketing concept company should
analyse the need and wants of their customers and then make decisions to complete those needs
in comparison with competition. The concept of marketing is based on the right laws. Marketing
concept is adopted by so many successful organizations. The focus is on customers that will be
fulfil by developing marketing strategies and also company can achieve organisational goals.
There are some functions of marketing which are market research, finance, setting prices,
distribution, product management, promotional channels, matching product to customers.
Role and responsibilities of marketing functions in Hilton
Service management
Hilton gives variety of hospitality services throughout the world through its chain. Loyalty
program which is known as HILTON HONORS PROGRAM is a special service for the genuine
customers. For extending the business Hilton started working together with car rentals, airlines,
online platform, cruises, dinning outlets and shopping and financial institutions for easier
payment methods. With different type of membership like blue, silver, gold and diamond can use
Hilton services at discounted prices. The hotel services are maintained by relations of customers
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via satisfaction index and feedbacks.
Pricing
Pricing strategy in hotel Hilton is low. Hilton targets customers which are exclusive section of
society. The price for different hotels by Hilton group deliver for the specific reason. Hilton
resorts are located at beach and lakeside because experiencing different from airport hotels. With
this, all premium hotels Hilton always maintained unshared price section. Price range in India for
single room of hotel Hilton is from 5000 to 35000 per night and especially in metro cities. The
range of price changes with the value added services like parking, Wi-Fi, food and other
exclusive services for guest. Premium prices are calculated on premium services which are spa,
breakfast, restaurant and activity services. The class of the hotel is maintained by premium
customers section who pays premium tariffs(Pike., 2015).
Research
By using information after doing some research in the market, Hilton have to look about those
customers who wants to stay in other hotels and according to market research they have to think
for rival hotels, and observe the trend in the market and observe that who are the competitors.
Need of improvement is necessary in decision making of hotel Hilton and marketing activities.
They have to decide what they going to change and how it will help them to compete with
competitors(Neirotti, Raguseo and Paolucci., 2016).
Financing
If we want to earn money then we have to invest also because money attracts money. This is also
important function of marketing because we have to decide the budgets to run the activities
through the hotel, necessary needs of funds for operations of the hotel like invest in loans to
advertise or promote our hotel. Financing in hotel is the best thing because hotel is that asset
which gives you high returns. It is a long term and huge investment and there is a risk factor also
in this but if it successfully runs then it will increase your assets.
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Marketing information Management
Management of Hilton through the information about making a hotel as attractive as possible to
attract so many customers as possible. Marketing plays a vital role in creating a brand, attract
new customers and maintain a loyalty in hotel. Hotel industry is also not different. Hotel industry
mainly consist of tourism. Marketers want to assure that awareness of brand is still exist so the
customers will easily use their services. Maintaining relationship with the old customers is
actually a future revenue for us because they will not going to other hotels when they have good
relationships with our hotel. So information about market is important with that we can manage
the whole things(Law, Buhalis and Cobanoglu., 2014).
Promotion
Every hotel knows that how to promote their hotel. Hilton also knows that through advertisement
they will attract new customers and the existed customers will also come back. There are so
many ways for promoting our hotel which are giving better services to customers, give cards of
your hotel which helps customer to remember your hotel and he can give it to others also and by
inviting famous personalities in your hotel will help to make it famous through all over the
world. With the help of different ways like, social media, online marketing and different source
of promoting our hotel, we can reach to the more customers, so promotion have a great impact
on the hotels.
P2 Interrelationship of marketing and other functional departments.
Marketing has various roles and responsibilities in case of hotel Hilton. Marketing helps the
hotel to achieve the goal as well as objectives by building various marketing plans. Key elements
of marketing which are relating with the hotel Hilton are:
Marketing and HR
When HR and marketing both cooperate and work together then it will lead to benefits to the
hotel. These benefits convert into rewards for consumers, employees and potential employees.
There are various challenges in the market and one of the main is focus on tourism. HR have to
cooperate with market and this will help them to increase their revenue. Marketing have to
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cooperate with the HR of hotel it will help to spread brand messaging through the whole
company with the help of internal communication(Lamb and Crompton., 2017).
Marketing and production
Marketing and production both are important for hotel Hilton. When we work in a group there is
a need of management. Marketing and production work together for a new changes which are
needed in hotel. What actually people wants it will be find by marketing which shows the ways
that they will need to provide services and by adding new features it will change the price and
time of providing services. By working together on services that both the market wants, and they
can give it efficiently. providing right services by working together at the correct price, without
getting any problem(Khan., 2014).
marketing and finance
Bringing people of finance into the decisions of marketing can make finance people feel
possessive for every decision that is made. Finance group feel more friendly with hotels when
you share that what are the reasons of your plans because finance people actually wants the
business more successful. Build a strong physical contact in both the groups together this will
enhance finance along with marketing. by supporting other hotels will have to put the team in the
central position. Hotel Hilton teach that how to integrate marketing and finance into the
environment which aims at maximizing financial performance as well as values of customer
too(Paley., 2017).
P3 Comparison between two hospitality organizations on the bases of 7 Ps'
Marketing mix (7Ps) is the set of recognised marketing plans or strategies, which is used
by Travelodge and Hilton hotel within hospitality sector to achieve their business objectives
effectively. Hilton organization objective is to increase their sales by expand their business and
provide lodging facilities to consumers for enhancing their experience on travelling (Luo, Roach
and Jiratchot, 2015). On the other hand, Travelodge also has the quite similar business objective
thus, they wants to generate awareness among people about services and products they provide
to them for increasing profitability(Luo, Roach and Jiratchot., 2015).
7 Ps of marketing mix Hilton Travelodge
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Product It is considered as an item that
is produced or built to satisfy
the requirement of target
consumers effectively. Hilton
hotel as compare to
Travelodge satisfy their
consumers affectively, they
conduct market research to
gather information about
trends in marketplace as well
as to identify the preference of
people that helps to provide
products accordingly.
On the other hand, Travelodge
also cater the lodging and F&B
services to customers
according to their needs, they
wants to achieve it business
objective with the help of
applying marketing mix
elements. They focused on
each and every stage of
product life styles for
analysing the effectiveness of
product development
accordant to market needs.
Price Price or cost of goods is
basically amount that people
pay for to enjoy the services or
products. It is one of the most
essential components of
marketing mix (Pike, 2015).
Hilton hotel apply market
penetration pricing strategy
within its business that helps to
attract new as well as existing
consumers based on low cost
and also increased profit
margin.
As compare to Hilton,
Travelodge adopt neutral
pricing strategy which is
highly beneficial for them as
helps to garb the attention of
consumers and increase their
profitability rather than before.
Place Distribution or placement is
essential part of the whole
procedure, Hilton distribute
and position its goods in place
To attract consumers towards
them, Travelodge provide the
best service and they always
focused on delivering the
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that is accessible to potential
consumers. Organization chose
the best location for their
business such as Beach sides,
because it is one of the main
attraction point for consumers.
They want to expand its
current business in new place
for this they has to select the
great location as compare to
other hotels.
quality products in selecting
better locations for retaining
people. Through mobile
applications they give the best
opportunity for people to chose
its package of services and
room where they want to stay.
People To run business effectively
and retain consumer with them
for longer, Hilton hotel as
compare to Travelodge
maintain the work
environment effectively. They
hire people who are well
known about the areas where
they start up its business, it is
beneficial for them to gather
info about people and make
them able to provide goods
according to preferences.
As compare to Hilton, they
wants to maintain its consumer
base for long period of time
which is very important
(Neirotti, Raguseo and
Paolucci, 2016). Hence to keep
organized this, they trained
their existing staff to
organized each and every
operations within business
effectively.
Process Procedure and systems of
Hilton hotel is considered as
one of the best management
hotel chain in all over the
world. They need to enlarge
business in new marketplace
On the other side, to achieve
objective efficiently
Travelodge also work harder
and apply various tactics for
the same. By developing web
portal on social media sites
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and apply different marketing
plan or tactics for this.
Organization adopt online
booking facility that allows
people to book room according
to preferences easily.
they can generate awareness
among group of people and
maximize revenue.
Promotion It is very essential element of
marketing mix as it help to
boost up brand recognition or
sales. Hilton hotel apply
personal selling as one of the
best promotional strategy for
their business because it
centring on relationships rather
than other activity (Paley,
2017). According to this
strategy organization can reach
out its target consumer one on
one via email or phone.
Direct marketing can adopt
by Travelodge company which
help to react at large number of
clients through social media
message.
Physical evidence In hospitality industry, there
must be physical evidence that
products or services was
delivered. They designed very
unique structure of building
that set the positive image in
mind of people.
Travelodge also perform better
than other companies in same
sector, they create pleasant
physical environment around
the place where they provide
its services.
P4 Covered in PPT
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REFERENCES
Book and Journals
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Pike, S., 2015. Destination marketing: essentials. Routledge.
Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Are customers’ reviews creating value in the
hospitality industry? Exploring the moderating effects of market
positioning. International Journal of Information Management. 36(6). pp.1133-1143.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
Hospitality Management. 26(5). pp.727-750.
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management. 6(2). p.95.
Luo, A., Roach, S. and Jiratchot, C., 2015. The effect of the 7Ps of the marketing mix on air
freight customer satisfaction and repurchase intention. Journal of Supply Chain
Management Research and Practice. 9(2). pp.28-36.
Paley, N., 2017. How to Develop a Strategic Marketing Plan: A step-by-step guide. Routledge.
Lamb, C.W. and Crompton, J.L., 2017. Analyzing marketing performance. In Marketing the
Public Sector (pp. 173-184). Routledge.
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