Unit 15: Hospitality Marketing Essentials - Hilton Hotel Report

This report delves into the essentials of hospitality marketing, using Hilton Hotel as a case study. It begins by outlining the roles and responsibilities of a marketing department within a hospitality organization, emphasizing market research, pricing strategies, promotion, and product delivery. The report then explores how the marketing function interrelates with other departments, such as HR and Finance, highlighting their interconnectedness. A comparative analysis of Hilton and Marriott's marketing mix (7Ps) is presented, examining their approaches to product, price, place, promotion, people, process, and physical evidence to achieve business objectives. Finally, the report culminates in the development of a marketing plan specifically for Hilton Hotel, including an executive summary, mission and vision statements, marketing objectives, segmentation, targeting, positioning, SWOT and PESTLE analysis, marketing mix, and a marketing budget with monitoring and evaluation strategies. The report provides a comprehensive overview of marketing strategies within the hospitality industry, offering insights into effective planning and implementation.

Hospitality Marketing
Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1 Roles and responsibilities of marketing functions.................................................................1
P 2 How marketing role and responsibilities are connected to wider organisation context........2
LO2..................................................................................................................................................3
P3 Comparing ways in which hospitality company applies marketing mix to achieve business
objectives.....................................................................................................................................3
LO3..................................................................................................................................................5
P4 Marketing Plan for Hilton Hotel.............................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing essentials plays an important part in order to create, communicate, deliver an
effective marketing plan in the organization in order to reach objectives of the firm(Perreault,
2018).. Present study is based on the company Hilton hotel that is a privately held company
founded in the year 1919 by Conrad Hilton having its headquarter at McLean. Virginia, US.
Report will include roles and responsibilities of marketing function and also its relation with
wider organizational context. Different marketing mix is plan in order to achieve business
objective. A marketing plan is prepared in order to meet marketing objectives.
LO 1
P 1 Roles and responsibilities of marketing functions
Marketing department of Hilton hotel plays a vital role in doing market research, finance,
setting price, promotions, product management etc. Marketing department has various roles and
responsibilities to perform these functions, these functions are as follows:
 Market research: Marketing department of Hilton hotel plays an important role in doing
market research such as identifying the needs of customers, doing competitors analysis,
identifying new trends, target customers. Hilton hotel marketing manager is responsible
to collect information related to customers needs competitors, new trends and target
customers in order to frame marketing strategies. It is one of the most important role
played by marketing department(Kotler and et.al., 2017).
 Setting price: The main role of marketing department of Hilton hotel is to make pricing
strategies on the basis of purchasing power of the customers. Marketing department role
is to identify the purchasing power of customers and them frame policies because if the
price are high then company may loose the customers. Marketing department is
responsible for listening the needs of customers and respond to their wants by delivering
the products at affordable price(Datta, Ailawadi and Van Heerde, 2017).
 Promotion: To promote and make customers aware of the product, the role of marketing
here is to build positive brand image in the minds of customers so that they become loyal.
Hilton hotel marketing manager is responsible to communicate their products and
services in such a ways that it creates brand positioning(vom Brocke, Zelt and Schmiedel,
2016). They need to communicate their products on social media as well so that they
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attract large customer base. They need to satisfy existing customers and attract new
potential customer to increase customer base.
 Product delivery: The role of marketing department is to deliver the product according
to the needs of customer. Marketing department of Hilton hotel identify the needs of
customers such as what are their perceptions, wants etc. Customer also expects a good
quality and affordable products(Fan, Lau and Zhao, 2015). It is the responsibility of
marketers to produce and deliver good quality product, deliver products on time, product
should not be defected and need top meet the requirements of consumers.
P 2 How marketing role and responsibilities are connected to wider organisation context
There are various departments in the organisation and marketing department is related
with other departments of Hilton hotel as follows:
 HR department with marketing: Both the departments are dependent on each other and
if one of the department fail to perform their duty then it will impact the business
performance. The role of HR department of Hilton hotel is to hire skilled and talented
employees so that they can perform the given job profile effectively. It also deals with the
training and development of employees to make sure that they are being updated with the
current technologies and skills. Marketing department is responsible to evaluate all the
market activity and ensure that their performance is better than their competitors. If HR
department fails to recruit skilled candidates then an individual is not able to perform the
task properly thus, business will suffer loss(Golder, Jap and Steckel, 2017).
 Finance department with marketing: The role of finance department of Hilton hotel is
to make budgets and make sure that every department in working under the
predetermined budgets. Finance department evaluate the performance of the company
and develop budgets by forecasting previous years budgets. Finance department analyse
financial report of the company, cash flow statements etc. to identify the expenses and
make budgets on the basis of them. The role marketing is to promote the products and
services of Hilton hotel as per the given budget(Javanmard, Noruzi and Nakhoda, 2016).
It is necessary to plan all the marketing activities such as creating brand awareness,
advertisement of services, doing market research etc. according to the given budget.
Marketing department can use social media platforms to market their services in order to
reduce cost and use the budget efficiently.
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LO2
P3 Comparing ways in which hospitality company applies marketing mix to achieve business
objectives
Elements Hotel Hilton Hotel Marriott
Product The hotel is classified as a full
service hotel and this provides a
range services which includes
arranging for birthday parties,
weddings, banqueting facilities,
restaurant, food and beverages
services, swimming pools and
many other services (Astuti,
Silalahi and Wijaya, 2015).
This is the most recognized luxury
hotel chains within the hospitality
sector. Its product mix includes
three types of services that are core,
actual and augmented services.
These includes services like
hospitality management, lodging,
resort, hotels and many other.
Price Hotel Hilton uses the pricing
strategy of Premium pricing. It is
because of the reason that the
hotel provides for five star and
four star rooms which are of
premium quality. Therefore, to
maintain this quality the hotel
charges high and premium prices
by the customers coming there.
The pricing strategy followed by
the hotel Marriott is the competitive
pricing strategy. Under this type of
strategy the hotel fix its prices by
analysing the prices of the
competitors and the current market
conditions.
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Place Place refers to as the place of
distribution where the company
produces the products for the use
of the ultimate consumers. Hilton
is a hotel which has its set- ups in
more than 103 countries along
with more that 5100 properties.
Also the hotel serves for around
745,000 rooms in more than 100
countries and territories.
The hotel Marriott is situated in
more than 120 countries all over
the globe. These hotel chain are
mainly situated in city, at highways
or within market or near airports
where more public movement is
there (Golder, Jap and Steckel,
2017).
Promotion This is a well established business
within the hospitality industry.
Therefore, the name of the hotel is
just enough for the promotion of
the hotel. But Hilton has many tie-
ups and collaboration with
different multi- national
companies, institutes, payment
banks and other organization.
With help of these tie- ups the
hotel and provides gift vouchers
and discounts to their customers.
With latest up gradations the hotel
focuses mainly on digital marketing
and has created a website with all
the detailed products and services
provided by the hotel in good and
attractive manner (Fan, Lau and
Zhao, 2015).
People It includes all the people relating
to the business whether be it target
customers or the employees or the
investors within the hotel. As this
is a premium hotel therefore the
main target consumer of the hotel
are upper class people of the
society.
The people included in the hotel are
the investors, owners, employees
and the customers coming to the
hotel. The hotel knows the
importance of placing right people
at right position and the hotel also
performs it efficiently.
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Process The process of managing the hotel
and the customer is very
consistent and the hotel has also
maintained a very clear and
reliable supply chain management
system which helps the hotel in
managing its inventory before
time and this minimizes the
operating cost for the hotel (Datta,
Ailawadi and Van Heerde, 2017).
Under the process, the hotel makes
sure that the customer are provided
with their required services on or
before time so that they are
satisfied with the hotel services.
Physical evidence The physical evidence is a major
element for the success of the
hotel. It is because eof the reason
that the consumer gets attracted
more by what they see rather than
what they read or listen. The hotel
is famous for its places where it is
situated and also situated in
variety of places and is famous for
its environment of the hotel.
The hotel building and the
infrastructure are the major
physical evidence of the hotel. It is
because of the reason that services
are intangible so the physical things
eventually liked by the customer
are the ambiance of the hotel
(Javanmard, Noruzi and Nakhoda,
2016).
These marketing mix helps in achieving business objectives because all the elements of
the marketing mix outlines the whole working of the business. And if these elements are properly
managed then automatically it will lead to the accomplishment of the business objectives and
goals.
LO3
P4 Marketing Plan for Hilton Hotel
Executive summary:- Hilton hotel is a privately held company founded in the year 1919 by
Conrad Hilton having its headquarter at McLean. Virginia, US. Marketing plan is prepared so
that company is able to focus on its resources and can make an effective plan for its growth.
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Mission and vision of the company is been analysed and then objectives are set in order to
achieve them. Company have also segmented its customers on basis of there age, gender, income
and behaviour(Kotler and et.al., 2017). On that bases only customers are targeted and company is
making its positioning in market. In order to analyse the micro and macro environment factors
affecting company, SWOT and PESTLE analysis is been done. Report also includes marketing
mix of the company and marketing program is prepared. Further report includes marketing
budget and monitoring and evaluation of that budget.
Mission:- To be first choice of guests, team members and owners by creating high value and a
positive impact in communities.
Vision:- To fill the earth with the light and warmth of Hospitality by delivering exceptional
experiences to every hotel, every guest, every time.
Marketing Objectives:-
 To increase it sales unto 15% in 2020
 To implement digital technology in the business
Segmentation:- Hilton hotel have to segment the consumer group on geographic, demographic
and psycho-graphic bases.
Targeting:- According to geographic segmentation company have to expand its business at
different business and travel locations like Bankside, Trafalgar Square etc. According to
demographic Hotel have to target its middle and senior aged professionals having high income
and luxury lifestyle. On bases of Psycho-graphic segmentation company have to target ambitious
individuals.
Positioning:- Hilton hotel pursues multi-segment type of positioning and targeting different
segment of customers at same time with different brands within its portfolio. Waldorf Astoria
and Conrad is coming in its luxury brands, Canopy is positioning the market with respect to
lifestyle of the customers(Camilleri, 2018). Hilton Hotels and Resorts, CURIO are giving full
services to the customers, Hilton Garden Inn is giving focused services and Hilton Grand
Vacations is giving Vacation ownership to the customers.
SWOT analysis:-
Strength:-
 Company is having strong dealer community where dealers are not only promoting their
products but also invest in training the sales team.
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 They are superior in product innovation and always come out with innovative technology
that attracts customers.
 Strong free cash flow is seen that provides resources in order to expand the business. There distribution network is also strong enough in order to reach their potential market.
Weaknesses:-
 Gap is seen in product range and this can give competitive advantage to other firms.
 Financial planning is not done efficiently as current asset ratio and liquid asset ratios
suggest that company is not using cash more efficiently. High attrition rate is seen in the workforce.
Opportunity:-
 With more cash in hand company can invest in new technologies as well as new product
can be segmented in market. Adoption of new technology and government free trade policy can provide opportunity to
enter in new market.
Threats:-
 There is rise in raw material that can pose threat to profitability of hotel.
 Currency fluctuation can be there as company is operating in different countries.
PEST analysis:-
Figure:- 1
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Source: pestle analysis. 2019. [ONLINE]. Available. Through<https://www.google.com/search?
biw=1602&bih=826&tbm=isch&sa=1&ei=7Y97XZf5IMr_vgTSy5_AAw&q=pest+analysis&oq
=pest+analysis&gs_l=img.3...5618.5778..6716...0.0..0.0.0.......0....1..gws-wiz-img.xZNnD8-
vqNo&ved=0ahUKEwjXo6nH6s3kAhXKv48KHdLlBzgQ4dUDCAY&uact=5#imgrc=81DNhu
wEe9aoBM:>
Political:-
 Different acts of terrorism in London can reduce number of visitors to London and this
can bring a negative impact on Hilton performance(Perreault, 2018). Company is involved in lodging in different countries that can bring political system
risks.
Economic:-
 As inflation rate is increasing company may face difficulty to extract potential customers As company is operating in different countries, exchange rates may fluctuate.
Social:-
 As lifestyle of people is changing company have provide advance services and products.
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 As company is operating in different countries, services have to be provided on bases of
there culture.
Technological:-
 In order to bring competitive advantage, company have to work in order to provide
advance technology to there customers, to give them great experience.
Marketing Mix:-
Product:-
Hilton hotel have to come up with digital technology in order ton serve their customers in
effective manner. This may include robotic technology while giving food services to the
customers and room services can be made more advanced by providing digital keys for room,
providing separate AV rooms or meeting rooms for the clients(Massingham and Pomering,
2017). These digital services will attract the customers and their experience will motivate them
to come again to take such advance services.
Price:-
Company can give their services at a reasonable rate so that all can afford the services.
Price range should be in such way that all are ready to take services. Premium price have to set
for advance services and this will help the company to generate more sales for their business.
Not only this company can give special discounts on different occasions in order to attract the
customers on vacations.
Place:-
Company have to expand its business to western countries at different locations with the
help of distribution strategies. This will helps in increasing their sales and for the same company
have to reach different places where most of the customers come for vacations.
Promotion:-
Company have to use digital marketing tools in order to promote there services. They
have to make there online page more attractive and informative for the customers.
Marketing program:-
Channels Sources
Direct marketing Email marketing
Digital marketing Social media marketing
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Commercial marketing Television, Magazines
Marketing budget:-
Cost
Operating cost 6,000$
Direct cost 5,000$
Administrative cost 5,000$
Digital marketing 4,000$
Total cost 20,000$
Monitoring and evaluation:-
Time to time monitoring and evaluating the budget and plan leads to improvement in the
performance of the company that further results in achievement of the objective. Hilton hotel is
using cost benefit analysis that helps to identify associated costs(Perreault, 2018). It also uses
salves analysis in order to analyse effectiveness of sales force and to analyse the performance of
the company.
CONCLUSION
With the completion of the assignment it may be concluded that within the hospitality
industry marketing is very essential. It is because of the reason that hospitality is a vast industry
and the competition is very fierce and to face it the hotels need to have good marketing strategy.
The assignment highlighted the different types of roles and responsibilities of marketing
function. Next the report discussed about the relation between marketing with other
organizational functions like human resource, finance and many other. Further it compared the
marketing mix of hotel Hilton with hotel Marriott. At last for the improvement a marketing plan
for Hilton hotel was made.
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REFERENCES
Books and Journals
Astuti, R., Silalahi, R.L.R. and Wijaya, G.D.P., 2015. Marketing strategy based on marketing
mix influence on purchasing decisions of Malang apples consumers at giant Olympic
garden mall (MOG), Malang city, East Java province, Indonesia. Agriculture and
Agricultural Science Procedia. 3. pp.67-71.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel Marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
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Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research. 2(1). pp.28-32.
Golder, P.N., Jap, S. and Steckel, J.H., 2017. The future of Marketing Letters. Marketing Letters.
28(3). pp.335-339.
Javanmard, M., Noruzi, A. and Nakhoda, M., 2016. Identify factors affecting the increase of
users of the libraries of Astan Quds Razavi based on the marketing mix 4C. Iranian
Journal of Library and Information Science. 18(4). pp.31-54.
Kotler, P. and et.al., 2017. Marketing for hospitality and tourism.
Massingham, P.R. and Pomering, A.A., 2017. Introducing Knowledge Management to the
Marketing Mix.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Rowley, J.E., 2017. Information marketing. Routledge.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management. 36(3). pp.486-495.
ONLINE
pestle analysis. 2019. [ONLINE]. Available. Through<https://www.google.com/search?
biw=1602&bih=826&tbm=isch&sa=1&ei=7Y97XZf5IMr_vgTSy5_AAw&q=pest+analysis&oq
=pest+analysis&gs_l=img.3...5618.5778..6716...0.0..0.0.0.......0....1..gws-wiz-img.xZNnD8-
vqNo&ved=0ahUKEwjXo6nH6s3kAhXKv48KHdLlBzgQ4dUDCAY&uact=5#imgrc=81DNhu
wEe9aoBM:>
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