Marketing in Hospitality: Strategies, Environment & Market Research

This report provides a detailed analysis of marketing strategies within the hospitality industry, using Thomas Cook as a case study. It explores key marketing concepts, the impact of the marketing environment (both micro and macro) on the industry, and an evaluation of consumer markets. The report defines the significance of marketing mix components, discusses pricing strategies, and examines the role of sales promotion and public relations. Furthermore, it emphasizes the relevance of market research and suggests an advertising campaign for a service industry operation. The study also touches upon different media channels for marketing and the implementation of a marketing plan, providing a comprehensive overview of marketing practices in the context of the travel and tourism sector.

MARKETING IN
HOSPITALITY
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Table of Contents
TASK 1...............................................................................................................................................3
1.1 Concepts of marketing.............................................................................................................3
1.2 Impact of marketing environment on the industry...................................................................4
1.3 Evaluation of consumer markets..............................................................................................5
1.4 Rationale for developing various market segments.................................................................6
TASK 2...............................................................................................................................................6
2.1 Define the significance of components of marketing mix.......................................................6
2.2 Pricing strategies and policies relating to Thomas cook .........................................................8
TASK 3...............................................................................................................................................8
AC 3.3 Role of sales promotion and public relations in promotional efforts:...............................8
AC 4.1 Relevance of market research ...........................................................................................9
TASK 4.............................................................................................................................................10
AC 3.2 An advertising campaign for service industry operation.................................................10
AC 4.2 Market Research for a service:........................................................................................10
Secondary Research:....................................................................................................................11
AC 4.3 Different media for marketing.........................................................................................11
AC 4.4 Implementation of marketing plan..................................................................................11
CONCLUSION:...............................................................................................................................11
REFERENCES.................................................................................................................................12
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INTRODUCTION
In the hospitality sector, marketing is very significant activity by which organisation
can promote and advertise its product and service in the market and influence customer for
purchasing. Marketing is a systematic procedure by which goods and services transfer from
organisation to customers. IT includes several activities such as product development,
determination of price, selection of distribution channels, implementation of promotional
strategies etc. The current report discuss the several concepts of marketing and impact of
marketing environment on the industry. In addition to this, significance of the components
of marketing mix with respect of Thomas cook has been also addressed in this report. It is
the British global travel corporation listed on the London stock exchange which serves
various travel and tourisms services to its customers.
TASK 1
1.1 Concepts of marketing
Marketing concept helps to organisation to understand actual requirement of
customers and make efforts to satisfy them. With help of this company can easily meet
requirement of customers by deliver appropriate commodity. In the context of Thomas
cook its main business purpose is to become number one travel and tourism organisation
by deliver high quality of services and facilities (Kotler, Bowen and Makens, 2014). In
order to meet this objective, corporation have to focus on several concepts of marketing
which are discussed below-1. Social marketing concept- As per this social marketing concept, effective and
healthy customer relationship management is very significance within organisation.2. Marketing concepts- As per this concept, organisation must acknowledge actual
demand of buyers regarding commodity and services. For develop strong brand
image in the market, customer satisfaction is very significant.3. Product concept- As per the product concept, customers always requires high
quality and innovative commodities so company should focus on high quality,
innovative and effective product and services.
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4. Selling concept- As per this concept, company should effectively promote and
advertise product and services in the market. In order to earn maximum profitability,
Thomas cook should effectively advertise and promote commodity in the market.
1.2 Impact of marketing environment on the industry
For sustain in the competitive business environment for long time, it is very
important to consider several elements of marketing environment. Micro and macro are
major two marketing environment that can influence performance and business activities of
organisation (Gilbert, 2015). In the Thomas cook, organisation must focus on the several
elements which are discussed below-
Macro environment4. Political- This is major element of marketing environment that includes
governmental regulation, code of conduct, taxation policies, practices etc. At the
time of business operation, Thomas cook should consider political factor so as it can
securely carry out its activities and business operation.
5. Social and cultural- This factor is related to customer preferences, taste, life style,
background, culture, social value, norms etc. In order to meet customer
requirements and earn maximum profitability, organisation must consider this
element of marketing environment.
6. Technological- In the present time, there are huge changes occurs in the technology
that directly affect marketing activities within travel and tourism sector. Thomas
cook must adopt updated and advanced technology that helps to business entity in
increasing its performance.
7. Demographical factor- This factor includes age, gender, education, income level,
occupation etc. For carry out business operation in smooth manner, company must
consider several aspects of demographics so as it can fulfil actual requirement of
customers.
Micro environment
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Customer- In the micro environment, customer have huge role by which company
profitability and productivity can influence. It is very important for company to identify
customers needs and make them satisfy (Bowie, Buttle, Brookes and Mariussen, 2016).
Thomas cooks should deliver services like accommodation, travelling restaurant etc
according to demand of customers.
Competitor- Thomas cook can largely influence by this factor because there are large
numbers of competitors available in the market that can affect performance of Thomas
cook.
Suppliers-Suppliers delivers raw material and semi finished goods to organisation.
Company should maintain healthy relationship with them by make effective order and
regular payment.
1.3 Evaluation of consumer markets
In the hospitality sector, customers plays a very crucial role in order to increase
profitability and market share. If buyers are effectively satisfied then it becomes easy to
develop impressive position in the market. It is also very significant to understand nature
and buying behaviour of customers. Thomas cook should focus on several factors that can
affect customer buying behaviour-
 Cost of product and services- This is very important factor that should consider by
corporation at the time of business operation. Customers always required such high
quality of product and services in affordable price (Babin and Zikmund, 2015).
Organisation should set affordable and suitable prices of product and services
 Advertisement and web design- The criteria and way of promotion and
advertisement also affects customer buying behaviour. Customer always attract
attractive design and advertisement pattern so Thomas cook should design attractive
web page in order to promote and advertise product and services.
 Safety needs- In the hospitality industry, organisation should always focus on the
safety and security concern of customers. At the visit place and destination, security
aspect is very important.
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1.4 Rationale for developing various market segments
In the marketing concepts, segmentation is very important aspect by which whole
market is divide into small parts and market (Aulton and Taylor, 2017). With help of
market segmentation, organisation can easily promote and advertise commodity in the
market. Some rationale for developing market segmentation are discussed below-
 Understand actual need of customers- Corporation can easily understand
requirement of customers with help of market segmentation. Thomas cook should
understand the significance of market segmentation so as it can effectively fulfil
requirement of customers.
 Market expansion- Thomas cook can increase size and area of market with help of
market segmentation (Armstrong, et.al, 2015).
 Reduce risk- By help of market segmentation, organisation can reduce uncertain
business risk and financial loss risk. Thomas cook can identify that which kind of
product required by which kind of customers with help of market segmentation.
TASK 2
2.1 Define the significance of components of marketing mix.
The term marketing mix of Thomas cook will work as to analyse the working of an
enterprise so that high productivity and profitability can be generated. There are differed kinds of
approaches which will be helpful in terms to generate the high amount of profitability and
productivity. There ate number of components under marketing mix elements as are-
Component of Marketing Mix Related Application In Thomas Cook
Travel
1. Product, It can be said that Thomas cook
undertaking was working at the pioneer
way at commercializing the mass
tourism exercises. Along these lines, the
centre business exercises of Thomas
cook is identified with movement,
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nourishment, inn, auto contract and
protection.
2. Pricing strategy used, In this term one might say that the
bundles of Thomas cook are accessible
at sensible costs. With help of receiving
appropriate evaluating procedures the
firm can ready to give powerful
administrations to its clients. In the
present situation the firm is utilizing the
top-notch estimating procedures with
the goal that work should be possible
according to the selections of clients. At
the season of off season the firm is
taking different activities in term to give
great and powerful administrations to
clients (Sigala, 2018).
3. Place or Channel of distribution In this, one might say that Thomas cook
undertaking is situated in the business
region. It is the real favourable position
that it is anything but difficult to
discover. A channel expert, for example,
distribution centre or merchant must
have a proficient connection with
retailers so one viable thing can be
attempted.
4. Promotional elements recommended There are real gatherings of people
identifies with the special exercises and in
this item need to get acclaimed in
showcase. Under this advancement alludes
to the correspondence of data between the
vendor and purchaser with the goal that
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successful data can be produced
(Armstrong, Kotler and Brennan, 2015).
Along these lines, Thomas cook need the
utilization of special procedures so their
benefit and efficiency can be produced.
2.2 Pricing strategies and policies relating to Thomas cook
Business follows different pricing strategies according to market conditions. Basically it is
used in marketing mix. There are different pricing strategies that is as follows :-
Premium pricing – in this business keep their prices high in the market as compared to
competitors. It is followed to attract high class people as products and services are unique.
Market penetration – in this companies set lower prices for their products as thy want to attract
large number of people. It helps in creating a strong customer base. This strategy is followed to
create market awareness.
Economy pricing – This strategy is followed when target market is very price conscious. This is
applied in specific market segment.
Price skimming – In this strategy the product price is kept high when it is introduced in the
market and then it is gradually decreased when competitors emerge.
Psychology pricing – in this price is set according to the psychological view of customers. They
usually get attracted when marketers use this strategy. For example- rather than setting price of
$500, company set it at $499.
Bundle pricing – In this company sell multiple products at low rate. It pursued customer to buy
them rather purchasing individual item.
Thomas cook can follow economy pricing as it will help then to attract large number of people.
With this they can target those people who prefers to compare prices before buying particular product.
TASK 3
AC 3.3 Role of sales promotion and public relations in promotional efforts:
Thomas Cook can provide following money benefits in terms of sales promotional strategy.
 Sponsorship of healthy family or couple competitions will mark the involvement of huge
audience (Tsai, Dev and Chintagunta, 2015). This can be beneficial for Thomas Cook.
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 Providing smaller discounts every time customer use services, and discount can be
increased in next visit will also attract consumers.
 Thomas Cook can distribute gift vouchers, discount coupons to selective customers via
lucky draw.
 Some additional packages offerings during festival seasons can also increase performance
of Thomas Cook.
 Customer loyalty programs can also enhances the customer retention for Thomas Cook.
Apart from sales promotion, Thomas Cook must also involve public relations in its pronominal
strategies.
 A regular interaction via online platform to resolve queries of customers can build a trust
worthy public relation (Leung, Bai and Stahura, 2015).
 Social media presence can make it possible for Thomas Cook to address large audience.
 Thomas Cook can conduct some entertaining events or festival ceremonies to attract the
public.
 Effective advertisement strategies are useful for establishing great public relations.
 A responsible approach for resolving customers queries and issues and serious working on
feedbacks and suggestions can also improve public relation.
AC 4.1 Relevance of market research
 Thomas Cook must conduct an intensive market research before implementing any
strategy. The market research is an essential process as it serves the following purpose.
 With market research it is possible for Thomas Cook to identify new trends and associated
drawbacks related to existing trends of hospitality and travel industry (Jones, Hillier and
Comfort, 2016). Such pre-identification guides Thomas Cook to make more productive
strategies as per global suitability.
 Market research helps Thomas Cook to predict the possible outcomes of certain strategies
on the basis of experiences of their competitors. For instance a particular target group use
travel services during end of the year then Thomas Cook can get this fact by research and
can get competitive advantage from it.
 Market research is also carried out for self evaluation (Kim, Vogt and Knutson, 2015).
Thomas Cook can conduct research to analyse its impact in market, among its customers
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and what position does it hold among its strong competitors. This self evaluation provides a
great assistance in defining strategies so that the performance and sales can be increased.
 Market research are crucial part for success of any organisation, hence Thomas Cook must also
carry these researches regularly.
TASK 4
AC 3.2 An advertising campaign for service industry operation
Jingle : Make your journey a happy journey
Advertising campaign plan is developed through following steps:
 Research: This is done to serve the wants of those people who create ads and their interest are
also promoted. Thomas Cook promotes its brand through campaign. Consumers are also
targeted through advertising campaign.
 Make a target : Secondly, market is targeted through research work. It can be referred to
individuals' preferences or the way they respond (Šerić, Gil-Saura and Ruiz-Molina, 2014).
Thomas Cook find those market effective where its profitability is appreciable.
 Setting a budget : A proper budget is set because it is also necessary to find how competitors are
working. Thomas Cook decided to spent 10000 Dollars in this campaign.
 Media Selection: Then, company decides which media will be helpful to reach customers so that
they can increase their business. There are various ways such through Flyers, Print ads, Radios
and TV promotions.
 Execution : Finally, the plan is executed through Flyers or promoted on TV (Jauhari and
Bharwani, 2017). Its result can be seen by the increasing number of customers.
AC 4.2 Market Research for a service:
Primary Research:
5. What are the best qualities of Thomas Cook company?
The Best qualities of Thomas Cook are its providing quality wise services and new launching of foods
and beverages.
6. Which social site is used by Thomas Cook?
Thomas Cook is available on Facebook and Twitter .
7. Is the staff of Thomas Cook qualified and trained?
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Its staff is well-educated, qualified and all team members have degrees of graduation. They all maintain
good communication skill.
Secondary Research:
According to the secondary research Thomas Cook has launched various plans and is planning
to open new hotels in various other nations.
AC 4.3 Different media for marketing
Various types of media are there like online, flyers, radio, TV promotion. Large scale
companies use TV promotions for enhancement of their branding. Thomas Cook use TV promotion and
flyers to promote its brand.
AC 4.4 Implementation of marketing plan.
Marketing plan helps business to become proactive and goals become measurable and it allows
every person to come on same platform (Kandampully, Zhang and Bilgihan, 2015). It has some
limitations too. Its budget is specific and it has a competitive market to sustain.
CONCLUSION:
Finally, it can be concluded that a company has to go through 7P's of Marketing Mix and
various marketing strategy to achieve success. It performs its functions effectively and also spend huge
amount in advertising campaign to attract customers.
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REFERENCES
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Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Taylor &
Francis.
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Kotler, P., Bowen, J.T. and Makens, J.C., 2014. Marketing for hospitality and tourism. Prentice
Hall.
Sigala, M., 2018. Market Formation in the Sharing Economy: Findings and Implications from the
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equity? Evidence from the hospitality industry. International Journal of Hospitality
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Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction, delight,
and loyalty in the hospitality industry. Journal of Hospitality & Tourism Research. 39(2).
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Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
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