Hospitality Marketing Essentials: Strategies, Analysis, and Planning

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This report delves into the core principles of hospitality marketing, examining its definitions, characteristics, and current trends. It analyzes the role and responsibilities of marketing functions within the context of Hilton Worldwide, exploring its influence on other departments and its overall value. The report dissects the marketing mix, specifically the 7Ps, illustrating how hospitality companies utilize these elements to achieve business objectives. It evaluates various tactics employed by organizations like Hilton and Holiday Inn, demonstrating how they align with strategic goals. Furthermore, the report outlines the creation of a basic marketing plan, emphasizing the application of the 7Ps and the importance of monitoring and evaluation to ensure success in the competitive hospitality market.
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HOSPITALITY
MARKETING ESSENTIALS
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1 .................................................................................................................................................3
Introducing services marketing and its definitions, characteristics, current and future trends,
marketing concepts etc.................................................................................................................3
Explaining the role and responsibilities of marketing functions in context of Hilton
Worldwide....................................................................................................................................4
Analysing the roles and responsibilities of marketing in context of marketing environment.....4
Analysing the influence of marketing and how it interrelates with other functional departments
of the organisation........................................................................................................................5
The value and importance of marketing role in context of Hilton Worldwide............................5
Discussing how roles and responsibilities of marketing relate to the wider organisational
context..........................................................................................................................................5
Conclusions based on critical analysis of the significance of effective interrelationships
between different functional departments ..................................................................................6
LO2..................................................................................................................................................6
Explaining marketing mix and the 7Ps........................................................................................6
Explaining different ways hospitality companies use marketing mix 7ps to achieve company
objectives.....................................................................................................................................7
Evaluating different tactics applied by the hospitality organisations to demonstrate how
business objectives are achieved..................................................................................................8
LO 3.................................................................................................................................................8
Marketing strategy which capture the goals and mission of Hilton.............................................8
Producing a basic marketing plan for Hilton to meet marketing objectives................................9
Designing a strategic marketing plan that tactically applied use of 7ps and measures for
monitoring & evaluation............................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Hospitality marketing defines about the marketing techniques used by the hospitality
industries such as hotels, restaurants etc. to promote their business and services. This project is
designed to introduce students with the essentials of the marketing for the hospitality industry
and the characteristics and current- future trends. Marketing is an important part of any business
to influence the customers and engage them with their product/service to achieve the business
goals. The current project determines the marketing concepts used by the hospitality industry to
inform and influence the audience about the industry/firm. Hilton Worldwide, a global
hospitality chain that use variety of marketing strategies and charity campaigns to achieve
broader success. The current project explains the role and responsibilities of marketing and how
it effects other functional units of Hilton Worldwide. It analyses how this company uses the
elements of marketing mix and different tactics to achieve its business objectives.
MAIN BODY
LO1
Introducing services marketing and its definitions, characteristics, current and future trends,
marketing concepts etc.
Services marketing is an area of marketing where a service or an intangible material is
promoted and marketed among the target customers. Opposite to the product marketing where a
physical product is promoted, service marketing promotes non-physical service to the customer
(Hole, Pawar and Bhaskar, 2018). An intangible commodity is paid and consumed in the
process. There are many characteristics of services such as services are performed and are
totally discrete from any physical item. Unlike any product, services cannot be transferred to
one another, for example service of a taxi can be obtained but cannot own it. A service cannot
be separated from the service provider, it is inseparable from the person who acquire the skills to
perform that service.
The most significant trend of service marketing is mobilisation. The use of
smartphones share the content quickly and efficiently. Ultra personalization of content to deliver
relevance for an individual client impact the ability to retain the audience. Marketing
automation, empowered technology are the upcoming trends that may significantly impact the
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service marketing field in the future. The concept of service marketing draws the value and
desired outcomes of its service and the way it may be perceived by its customer.
Explaining the role and responsibilities of marketing functions in context of Hilton Worldwide.
Roles
The marketing department plays an integral role in promoting the business mission of
Hilton. It makes channels to interact with the customers and improve their experience with the
brand (Camilleri, 2018).
Marketing initiatives and social campaigns may be planned to attract more audience and
create value for the Hilton Worldwide.
It may create proper marketing content to promote the core product/service for the
company.
The marketing team is responsible for keeping the website information current and make
sure the presentation is attractive and comes quickly when someone searches.
The best place where marketing can contribute is the social media. Hilton marketing team
may manage accounts carefully and analyse various social media trends that can affect the
business of organization.
Responsibilities
The main responsibility of the marketing department is defining and managing the brand.
It involves defining the value and meaning of the brand and how it delivers the customer
experience.
The marketing strategies may be kept up to date as the products/ services keep evolving
with time. The web information and data improvements and corrections may be done on a
regular basis.
Monitoring and managing digital media and producing personalized interactions is a key
responsibility of the marketing function (Rangaswamy and et.al., 2020).
Analysing the roles and responsibilities of marketing in context of marketing environment.
Marketing plays a crucial role in promoting the brand in a significant manner. There are
so many factors that include in the marketing environment. These factors are demographic
factors, economic factors, socio- cultural factors, political and legal factors, technological factors
and social media. Proper marketing promotes the brand in the right and positive context to
influence the targetted audience in the best way possible. The main roles of marketing are
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defining the brand, managing campaigns, producing creative promotional materials and
monitoring digital platforms to make strategies (Michael and Joshua, 2020). It is also
responsible for managing the brands value and image, considering socio- cultural factors and
demographics and improving personalized experience.
Analysing the influence of marketing and how it interrelates with other functional departments of
the organisation.
Marketing and Human Resource Management
The marketing department of Hilton Worldwide works firmly with the Human Resource
Department to assure suitable staffing. The Human Resource Department of the organization
also balance the marketing obligations and create a competent sales and research team.
Marketing and Finance
The Marketing department of Hilton works sharply with the finance department to assure
am all right budget to meet its requirements. The finance department make sure the business
operates within the lines of the organizations financial capabilities. The marketing department
focus on sales and volume whereas the finance department focus on cost and cash flow.
Marketing and IT.
The marketing and technology team works closely to ensure the latest technology and
advanced tactics are being used by the organisation. The IT. department is responsible for
providing the latest technologies to marketing function to keep then up to date.
The value and importance of marketing role in context of Hilton Worldwide.
Marketing teaches the people about the organisation by giving adequate information
about the services of the organisation. When people are well- informed about the services and
benefits of the organization, they consider the company above other market competitions. It this
tough marketing environment effective marketing is the key to establish strong place in the
market and improve revenue generation. Hilton identifies the needs and desires of the customers
and promotes the solutions through marketing and offers appropriate products and services.
Discussing how roles and responsibilities of marketing relate to the wider organisational context.
The roles and responsibilities of marketing in Hilton includes market research, service
improvement, personalized interaction, planning, promotion, bring out campaigns and selling the
services. Marketing can be considered as the pre- interaction between the brand and the
customer. It is the subset of the organization that makes the first impression on the customer and
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if this impression is effective enough then it can lead to convincing them to utilize the service at
the first place. Effective marketing strategies and reaching out big audience may be the key to
success for the organization (Tuomi, Tussyadiah and Stienmetz, 2021).
Conclusions based on critical analysis of the significance of effective interrelationships between
different functional departments
The different functional departments of the organisation have strong connection with
each others and works firmly with one another to run the organisation fluently and counter
various challenges. The HR department recruits the best skills, the production/service unit is
responsible for best quality product/service, the finance department controls the cash flow and
budgeting and the marketing department is responsible for displaying the core features and
attracting more audience and increase sales and retain customers. But in case of any
miscommunication or conflict between any two more departments, it mat result into the entire
organisational structure losing its coordination and instability in business.
LO2
Explaining marketing mix and the 7P's
Marketing mix comprises multiple areas of consideration of a concise marketing plan. It
includes strategically designed practices that the organization uses to successfully drive its
business and promotional functions (Lim, 2021). The seven P's of the marketing mix are:
Product or service- The quality of service, the features it has and the appropriate options
that the organisation provides are the main things the customer care about.
Price- The pricing strategy plays a direct role in influencing the customer's buying intent.
It can either add customers or decrease the number based on the competition from other service
providers.
Promotion- It is the part that the audience interacts with. It includes various channels
such as television, newspaper, social media and email marketing. Sometimes unique promotion
and advertising techniques impress new customers and drive them to try out the product/ service.
Place- The right placement for the right product in front of the right audience in very
important in instant sale of the goods/ service.
People- Hiring professional marketers with appropriate skills is important to carry out
impactful results and develop a strong relationship with the customers.
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Packaging- The organization's packaging work attracts the attention of buyers in
competitive marketplace and retain maximum customers.
Process- The more frictionless the process is, the more positive will be the customer
experience. Smooth services create a comfortable place for the customer and results in a positive
feedback.
Explaining different ways hospitality companies use marketing mix 7ps to achieve company
objectives.
7Ps of marketing mix Hilton Holiday Inn
Product In order to achieve target aims,
organization may take
approach to distinguish its
items into different categories
such as core items, supporting
goods, etc.
This organization may also
apply the 7ps of marketing mix
in form of providing quality
products such as meals and
satisfactory services.
Price For purpose of retaining
customers, organization may
use premium pricing tactic.
It may use competitive pricing
tactic, that help to reach desire
outcomes in form of increasing
profitability.
People To make workforce more
effective organization may
focus on hiring new people
and providing training to
everyone, either new or
existing.
While, Holiday Inn may focus
on hiring people instead of
providing training that is time-
consuming (WHAT ARE THE
7 PS OF MARKETING, 2022).
Place Hilton and its stakeholders
tend to achieve target aim and
because of this reason they
may select the best locations to
establish ventures. It the world
it may have more than 5100
It may also take initiative to
choose the best location where
customer reach easily and that
may drive the attention of
organization toward
developing outlets in the UK
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properties and exist in more
than 103 nations.
and across the nation, which
might be approx 1,1218.
Promotion To promote venture globally,
organization may focus on
using digital market channels
such as social media, print
advertisement, etc.
Holiday Inn may use
traditional and digital
marketing channels.
Process For purpose of aim
achievement, it may adopt the
process of collaborating with
sustainable suppliers.
The consideration of this
element, may also drive
Holiday Inn attention toward
conducting process of building
relation with profitable
stakeholders.
Physical evidence Hilton prefers to use billboard,
websites, and other digital
sources to show physical
evidence.
It may show its venture
existence in the market by
using different sources such as
holdings, etc.
Evaluating different tactics applied by the hospitality organisations to demonstrate how business
objectives are achieved.
Hospitality organizations like Hilton and Holiday Inn apply various tactics to achieve
their business objectives. Hilton Worldwide use premium pricing tactic whereas Holiday Inn use
competitive pricing tactic in order to increase their revenues. In case of Hilton, the premium
pricing may have higher profit margins but cuts off low and medium budget customers. The
competitive pricing strategy of Holiday Inn attracts more customers and may be the little margins
add up to become big profits but requires more effort in managing and promotional activities.
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LO 3
Marketing strategy which capture the goals and mission of Hilton.
The current marketing strategy in case of Hilton is based on promoting products and
services that organization will plan to offer to target market, after making changes due to
pandemic (Boiko and et.al., 2021). The main motive behind making change is to obtain
unpredictable outcomes and these are form in several terms such as;
Mission -
The mission of Hilton is to increase customer base and enhance their satisfaction level”.
Aims or objectives-
To increase profitability and improve organizational performance level by 50% within 2
years.
To increase consumer base up to 50% within 2 years.
To gain competitive advantages within 2 years.
To generate web traffic up to 40% within 3 years.
Producing a basic marketing plan for Hilton to meet marketing objectives.
Executive summary-
Hilton tends to stand competitive in the hospitality industry, for its take strategic action in
form of developing and taking decision to develop effective marketing plan, that specify clear
aim and objectives. With the help of this plan organization take pleasure of increase sales, that is
beneficial and essential for its rapid growth in the market.
Market analysis-
It is important for management to conduct market analysis and consider each factor that
may put direct impact on their performance and success. This analysis they may conduct by
using certain strategic frameworks and these are;
PESTLE analysis-
Political factor-
Political stability may put positive impact on Hilton in term of driving organization
attention toward entering into new market with better marketing plan (Kara, 2018).
Economic factor-
This factor may put positive impact on marketing plan of organization in form of gaining
potential customer attention and generating revenue by retaining them.
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Social factor-
Market trends may affect positively upon Hilton success and growth in form of
increasing profitability as organization may consider each trend and then make plan to proceed
further with that.
Technology factor-
Technology advancement may contribute to increase marketer performance in form of
driving attention toward using advanced technologies such as digital marketing channels.
Legal factor-
Any kind of change related to laws and regulations that Hilton may follow, put direct
impact on its current planning and activities in negative manner.
Environmental factor-
This factor may put positive impact on success of Hilton marketing plan in form of
driving the attention of company toward adopting and accepting sustainable practices.
SWOT analysis-
Strengths-
Skilled workforce and strategic planing are the key strengths of Hilton that may support
organization to get success in the context of marketing plan.
Weaknesses-
Lack of knowledge related to market changes is the biggest weakness of chosen hotel that
may put adverse impact on its success in the market or overall industry.
Opportunities-
Technology advancement and accessibility of talent in the world, may provide
organization chance to make their marketing plan successful.
Threats-
COVID-19 and Brexit may affect negatively upon Hilton in term of creating barrier for
organizational growth and success.
STP-
Segmentation-
For purpose of segmenting people or potential customers, organization may utilize
demographic, behavioural and geographic tactics, which drive the attention of Hilton toward
segmenting people on the basis of age, gender, race, location and other factors.
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Targetting-
In order to target middle and senior aged professionals along with all individuals, Hilton
and its management will take strategic approach in form of using undifferentiated targetting
tactic.
Positioning-
For purpose of setting excellent position in the mind of all guest, organization may take
approach to use social media channels. It will also Hilton to gain the attention of target market
appropriately.
Marketing mix-
Product-
In order to achieve target aims and objectives, organization will take approach to consider
customers needs and then move to prepare meal accordingly.
Price-
For purpose of retaining customers and gaining the attention of new, organization will
take initiative to use premium pricing tactic, which help to achieve marketing plan objectives,
along with obtaining these two benefits.
People-
Organization while running venture into hospitality industry, will focus on enhancing
workforce and increasing employees' capability by developing training session tactic. It will
allow management to reach desire outcomes effectively.
Place-
To increase profitability and generate revenue, organization will take approach to select
specific location or place in the new and existing market, where people may reach easily.
Promotion-
For promoting venture, Hilton will use social media and other trending promotional tools
as well as techniques that help to make marketing plan more effective.
Process-
To make the current marketing plan valuable, hotel and its management will focus on
purchasing organic products that they used to prepare meal according to target market needs.
Physical evidence-
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Billboard, official website and social media existence will enable company to show its
existence in the hospitality industry.
Budget-
Resources Cost (£)
Market research 25000
Technology implementation 35000
Training and development 30000
Hiring and selection 450000
Profile development 20000
Resources and raw materials 390000
Total 950000
Monitoring and controlling-
For purpose of monitoring and evaluating the performance of employees and
effectiveness of marketing plan, marketer will take initiative to utilize the best measures. They
will take approach to use KPI, such as guest retention rate, which will drive the attention of
Hilton and its management toward measuring or monitoring success effectively (Jetter, Eimecke
and Rese, 2018). It allows them to evaluate success of marketing plan that in turn contribute to
increase customer retention rate, more than last few years. Along with this initiative, they will
take more efforts in term of providing each candidates training related to products such as food
items that they are accountable to prepare according to customers need, with consideration of
pandemic situation. It will enable them to make a good command on employees' performance,
who will contribute to make marketing plan success and worth it.
Designing a strategic marketing plan that tactically applied use of 7ps and measures for
monitoring & evaluation.
The above marketing plan in the context of Hilton, encompasses and appropriately
applied 7ps of marketing mix, which may enable organization to gain further benefits in several
terms. It also includes the effective and useful measures related to monitoring the overall plan
and evaluation of its effectiveness that will achieve the target objectives appropriately.
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CONCLUSION
From above analysis it has been concluded that marketing functions in the hotel has
contributed to achieved target aims and objectives of business. It has supported to generate
excellent brand awareness in the hospitality sector that has gained the attention of new
customers, whether they live in national or international boundaries. Marketer in the organization
has achieved the targets, by using effective strategies and developing more in appropriate
manner, that has supported to obtained competitive advantages. Furthermore, from above
discussion, it has been identified that the relationship between each department has enabled
company to take pleasure of increasing profitability and productivity level. The development of
marketing plan and their implementation into practical manner has provided growth
opportunities to organization in form of gaining competitive benefit that is not easy for other
hotels in the hospitality sector. Moreover, it has been determined that utilization of 7ps, has
enhanced brand competitiveness.
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REFERENCES
Books and journals
Boiko, V and et.al., 2021. Development of Culinary Tourism in European Countries.
International Journal of Computer Science & Network Security. 21(4). pp.167-177.
Camilleri, M.A., 2018. Strategic planning and the marketing effectiveness audit. In Travel
marketing, tourism economics and the airline product (pp. 117-135).
Hole, Y., Pawar, S. and Bhaskar, M.P., 2018. Service marketing and quality
strategies. Periodicals of engineering and natural sciences. 6(1). pp.182-196.
Jetter, J., Eimecke, J. and Rese, A., 2018. Augmented reality tools for industrial applications:
What are potential key performance indicators and who benefits?. Computers in Human
Behavior. 87. pp.18-33.
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Kara, E., 2018. A contemporary approach for strategic management in tourism sector: pestel
analysis on the city Muğla, Turkey. İşletme Araştırmaları Dergisi. 10(2). pp.598-608.
Lim, W.M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing. 29(5). pp.453-469.
Michael, D. and Joshua, D., 2020. Marketing Function: Organizational Roles of Marketing
Department in Academic Library. Marketing.15(2).
Rangaswamy, A. and et.al., 2020. The role of marketing in digital business platforms. Journal of
Interactive Marketing. 51. pp.72-90.
Tuomi, A., Tussyadiah, I.P. and Stienmetz, J., 2021. Applications and implications of service
robots in hospitality. Cornell Hospitality Quarterly. 62(2). pp.232-247.
Online
WHAT ARE THE 7 PS OF MARKETING. 2022. [Online]. Available Through:
<https://assemblo.com/guides/what-are-the-7-ps-of-marketing/#:~:text=It's%20called%20the
%20seven%20Ps%20of%20marketing%20and%20includes%20product,%2C%20process%2C
%20and%20physical%20evidence.>
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