Hospitality Marketing Essentials: IHG Marketing Strategies Report

This report provides a comprehensive analysis of marketing essentials within the hospitality industry, specifically focusing on the Intercontinental Hotels Group (IHG). The report begins by outlining the key roles and responsibilities of marketing functions, including market research, product development, brand value, promotional campaigns, and customer relationship services. It then examines the interrelationship between the marketing department and other functional units, such as sales, finance, and production, highlighting the importance of coordination for organizational success. The core of the report involves a detailed comparison of the 7Ps of the marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence) between IHG and its competitor, Hilton Hotels and Resorts. This comparison evaluates the strategies employed by each company in the context of their respective offerings and market positions, providing insights into their competitive advantages. The report concludes with a summary of findings and provides a foundation for developing effective marketing strategies within the hospitality sector. The report emphasizes the importance of understanding customer needs, conducting thorough market research, and adapting marketing strategies to maintain a competitive edge.

HOSPITALITY
MARKETING
ESSENTIALS

Table of Contents
TASK 1............................................................................................................................................3
P1. Key roles and responsibilities of marketing functions within an organisation.....................3
P2. Interrelationship of marketing functions with other functional units of an organisation.....4
TASK 2............................................................................................................................................5
P3. Comparison of 7P's of marketing mix in organisational context..........................................5
TASK 3............................................................................................................................................9
P4. Covered in PPT.....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a process which is undertaken by every company to promote and advertise
the buying and selling of products and services (marketing, 2019). It is an activity which
includes good innovation and communication skills to deliver or exchange the products (Gibson
and Parkman, 2018). In order to achieve long term success, company need to conduct research of
requirement and demand of customers and find a solution by using appropriate approaches and
concepts for it and their purpose is to increase overall sales and profitability of company. This
report is in the context of Intercontinental hotels group which is a British multinational
hospitality company, headquarter in Denham, UK and founded in 1946. It provide its services at
global level and has around 180 hotels and resorts. This assignment is based on the concept of
marketing in hospitality industry and explains its roles and responsibilities which is used in
analysing that how marketing influences the other departments. It also contains interrelationship
with the functional departments and also analyses their importance in the context of an
organisation. It includes the comparison an organisation with its competitors in order to analyse
the different tactics and at last marketing plan is prepared.
TASK 1
P1. Key roles and responsibilities of marketing functions within an organisation
Marketing is a business process which helps in building the relationship with customers
and also bridges the differences between them. It is a main element of business environment
which is used increasing the sale, revenues and profitability of an organisation (Ong, Lee and
Ramayah, 2018). Hospitality industry contains various food and services, entertainment sectors
and many more. This industry is developing very fast but does not include changes with it.
Functions of marketing helps in identifying the success of product and this identification process
involves market research, sales, promotion and other related activities (Cheng and Chen, 2017).
Various roles and responsibilities are as follows:
Market research: It is an important role which is used in identifying the demand and
requirement of the market. Companies conduct this in order to gain competitive advantage of the
environment and to understand the behaviour of customers (Björk and Kauppinen-Räisänen,
2016). It provide appropriate data and figures which is helpful in facing various challenges by
company. In the context of Intercontinental hotels group, their main responsibility is to conduct

research of their targeted market to gain competitive edge. Moreover, it is helpful in collecting
the relevant information.
Product development: Here marketing department determines the sale of products and
services in order to look for the various opportunities which is helpful in innovation of new
products (Rahman, 2019 ). To develop its products, Intercontinental hotels group need to
determine the market and its conditions in order to launch its products.
Brand value: It is an image of the products and services which company shares within
the external environment. It is type of marketing strategy which is maintained by top level
management and marketing department. Marketing department of Intercontinental hotels group
is responsible making communication which creates brand image and make sure that they
convey these ideas and communication in an unified manner.
Promotional campaigns: Here, marketing department develops different promotional
strategies which is helpful in attracting customers and advertises the brand of company (Altinay,
Paraskevas and Jang, 2015). It revolves around the budget, action plan and targeted audience.
Here, Intercontinental hotels group need to focus on social campaigns for creating awareness
among customers regarding their offerings.
Customer relationship services: If an organisation want to get success then customer
satisfaction is their main objective as market is customer oriented (Jolliffe, 2016). Hence,
Intercontinental hotels group perform various marketing functions such as after sales services,
handling complaints of customers and information and many more.
P2. Interrelationship of marketing functions with other functional units of an organisation
Marketing department need close link with other key areas of an organisation which
helps in ensuring the long term success and also for attaining the organisational objectives of an
organisation. The interrelationship among other departments are as follows:
Marketing and Sales department: Both the departments are separate and perform
different functions in an organisation. Sales department ensures the development of relationship
with customers and then convert it into sales which results in increased productivity whereas
marketing department emphasis on providing the information about the offerings of the company
by its promotional techniques and strategies in order to develop wide customer base (Camilleri
and Neuhofer, 2017). In terms of Intercontinental hotels groups, its marketing department has
made things easier of its sales team in order to connect with its customers effectively and its

sales department make sure that the efforts of the other department does not get waste by
generating more revenues and profit from sales.
Marketing and Finance department: Both the departments should work closely in order
to make sure the availability of the adequate budget in order to meet the expenses which occurs
while marketing of products (Frash Jr, DiPietro and Smith, 2015). In the context of
Intercontinental hotels group, its marketing team makes decisions about the prices and
manufacturing of the product whereas finance department emphasis on covering all the cost and
cash flows as soon as possible. Marketing department of Intercontinental hotels group depends
on its finance team for getting the budget for research, promotion and distribution whereas
finance department generate revenues through marketing activities which helps in fulfilling the
financial needs and capital requirement to manage overall funds.
Marketing and Production department: These departments work consequently, as
marketing department forecast the needs of customers by conducting proper market research and
production department manufactures the product of a particular design which is demanded by
customers (Caliskan, 2019). Production department of Intercontinental hotels group, repairs and
replace the existing products in order to meet the changing needs and taste of customers whereas
marketing department set standards and deadline for production team to get the products on time
and make it always available in stock for future demand of customers.
Importance of the interrelationship: It is important to attain the competitive advantage of
market and directly or indirectly all the departments are interconnected with each other.
Appropriate relationship among different departments increases the capacity of production which
helps in motivating the employees to coordinate with them. Success of each department is
depends on the efforts of other department such as their coordination and cooperation level
which helps in increasing the production and productivity for the achievement of long term
objectives. Like, success and growth of marketing is depends on the funds collected by the
finance team.
TASK 2
P3. Comparison of 7P's of marketing mix in organisational context
Marketing mix is a collection of strategies which business use to advertise or promote
their products at marketplace. It is an important marketing technique which impacts the demand

of products (Marčeková, Šebová and Pompurová, 2019). It includes 7 elements which influences
each other as these elements are helpful in building the marketing plan for Intercontinental hotels
group which is helpful in attaining the success in market. It would be effective technique for the
company in order to create the correct marketing strategy. To update their existing plans and
policies the manager of Intercontinental hotels groups need to compare it with its competitors.
Basis Definition Intercontinental
hotels group
Hilton hotels and
resorts
Product Products are those
goods and services
which are offered by
company to its
potential customers
(Teoh, Wang and
Kwek, 2019).
Intercontinental hotels
group sell its own
products and serve as
its own product line.
Products they are
offered are highly
differentiated with lot
of features and hence
its products are
considered as unique.
Hilton is a hotel chain
which offers luxurious
rooms, restaurants,
bars, party area and
many more. They also
offer their own
transportation services
and also look for their
guest in the premises.
Price It is the amount which
customers are willing
to pay for the
exchange of offered
products and
services(Baker and
Saren, 2016).
They use competitive
based pricing strategy
as data is easily
available as many
competitors exist in
the industry. They
charge higher prices as
they offer more
features than their
competitors.
In order to maintain
the reputation and top
class services, hotel
charge premium prices
in order to sale its
products. Hilton
provide five star
services with the aim
of providing luxury to
their customers (Pike,
2015).
Place A location or venue by
which goods are
Intercontinental hotels
group offers two
Hilton covers six
continents and provide

transferred form
manufacturer to
customers or to their
final destination.
marketing channels
first one is through
online website and
other one is by
wholesalers. Company
build network to over
500 suppliers which
provide raw materials
for production.
its services in 84
countries. Its
properties are
managed by single
person under its own
brand name. They
provide excellent
experience to their
customers such as
beach sides, peace and
many more which
make it desirable
option for people.
Promotion It refers to the
communication which
includes sales
promotion,
advertisement,
personal selling etc.
Here, company use
multiple media
transmission to
promote their
products. They use
traditional method as
TV and radio for
advertisement and in
modern method online
and social media
advertisement which is
cheaper.
Hilton provide
excellent and
exclusive membership
to its customers by
selecting the unique
promotional activities.
Well qualified team
focus on the marketing
strategies to bring out
unique advertising
policies (Chandiok and
Sharma, 2017).
People It includes the staff
and employees who
are working for selling
of products and
services
It has many people
working under its sales
team which is
important in
marketing. It has
Hilton has huge
amount of workforce
which is important for
marketing of its
products and for itself.

(Fotouhnezhad, 2017). people working in it
like customer service
department, suppliers
etc. in order to
increase the quality of
product.
Hilton divide its
manpower in various
department in order to
increase its efficiency.
Process In includes those
activities and services
which involves the
delivery of products
and services to
specific customers.
Company offers it
products through
various modes such as
online or available
them on retail stores. It
also involve research
marketing activities in
order to understand the
requirements of
customers.
Hilton launch its
products and services
by different modes
such they take support
of various channels to
make available their
products. It also
conduct research and
development activities
to observe the needs
and taste of customers.
Physical evidence It refers to the tangible
or those elements
which can be seen or
touch that facilitate the
communication of
products and services.
Intercontinental hotels
group offer its
products in different
colours of packaging
which can easily
identify on retail
shelves. It also allow
their customers to see
their products images
in high quality.
Hilton mostly work on
its appearance which
is helpful in increasing
their customer base. In
this they include their
rooms, usage products
and services and many
more which include in
physical appearance.
Brief Analysis: Above discussed marketing mix is based on two organisations who are dealing in
same industry and offer almost same quality products and services and give tough competition to

each other. By the above discussion it is analysed that Intercontinental hotel group is capable
enough to create its strong reputation in front of their customers and that is the only reason why
they does not more invest in promotional strategies because their offered services and brand
image is capable enough to satisfy their customers.
TASK 3
P4. Covered in PPT
CONCLUSION
By the above information it is concluded that the success of every businesses is
dependent on the way how they are marketing their products as marketing of products or services
is the crucial stage of all businesses. Therefore, company should analyse the needs and wants of
customers before introducing the new product in the market. Therefore, it is concluded that
creativity is important for an organisation in order to attain market segment and its all functional
departments are interrelated with each other for smooth running of company.

REFERENCES
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Online
marketing. 2019. [Online] Available through
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