Marketing Strategy, Analysis, and Implementation: Hyatt Hotel Report

This report provides a comprehensive analysis of marketing principles, specifically focusing on their application to the Hyatt Hotel. The report begins with an overview of the marketing process, including micro and macro environmental factors, SWOT analysis, and the importance of market orientation. It then delves into market segmentation, targeting strategies, and buyer behavior, proposing new positioning for Hyatt's products and services. The report further explores product development, distribution, pricing, and promotional activities, along with an examination of the extended marketing mix. The analysis considers various factors such as political, economic, social, technological, legal, and environmental influences. The report concludes with a discussion of marketing mixes for different segments and illustrates the differences in marketing products and services to businesses rather than consumers, providing insights into the hotel's competitive advantage and customer satisfaction strategies. The report also provides recommendations for improvement and future strategies.

Marketing principles

Table of Contents
Introduction................................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Explain the various elements of the marketing process...................................................1
1.2 Evaluate the benefits and costs of a marketing orientation for a selected organization.. 2
TASK 2......................................................................................................................................2
2.1 Show macro and micro environmental factors which influence marketing decisions.....2
2.2 Propose segmentation criteria to be used for products in different markets....................4
2.3 Choose a targeting strategy for a selected product/service..............................................4
2.4 Demonstrate how buyer behaviour affects marketing activities in different buying
situations................................................................................................................................5
2.5 Propose new positioning for a selected product/service..................................................5
Task 3.........................................................................................................................................6
3.1 Explain how products are developed to sustain competitive advantage..........................6
3.2 Explain how distribution is arranged to provide customer convenience.........................6
3.3 Explain how prices are set to reflect an organization's objectives and market conditions
................................................................................................................................................7
3.4 Illustrate how promotional activity is integrated to achieve marketing objectives..........7
3.5 Analyze the additional elements of the extended marketing mix....................................7
4.1 Plan marketing mixes for two different segments in consumer markets.........................8
4.2 Illustrate differences in marketing products and services to businesses rather than
consumers...............................................................................................................................8
Conclusion..................................................................................................................................9
references.................................................................................................................................10

INTRODUCTION
Marketing principles can be outlined as a procedure of act value of product and
services to consumers along with decent quality and brand which will lead to marketing of
that product (Nwankwo and Gbadamosi, 2010). Business organization will get a combative
advantage over their challengers. This report is based on evaluating different elements of
marketing process. Further, this report showcases the macro and micro environmental factors
which will influence the marketing decisions. Moreover, this study will also have its
significance on focusing on different services of hotel Hyatt which will lead organization in
order to get the competitive advantage over other hospitality industry.
TASK 1
1.1 Explain the various elements of the marketing process
The There are different types of elements which hotel Hyatt consists of and some of
them have been discussed as below:
 Micro-macro factors- Hotel Hyatt has to adopt some major strategic tool in
order to give their competitors a tough competition (Ruckman, Saraf and
Sambamurthy, 2015). In order to accomplish this, cited organization can
implement SWOT analysis, PESTLE analysis, Ansoff’s matrix and Porter’s
five forces model for judging the effectiveness of organization.
 Purpose and goals- Hotel Hyatt has set their marketing objectives in order to
gain higher profits and revenue. Further, goals and objectives of company are
quite different from their major competitors and firm is focusing on giving the
best of apparelling deals to their large customer base in order to develop
healthy brand image (Huang and Sarigöllü, 2012).
 Marketing Mix- Mentioned firm’s essential element for marketing strategy is
the marketing mix and Hotel Hyatt has set their services, price, place,
promotion elements by considering the income group and demand of
customers.
 Market segmentation- Hotel Hyatt’s market is large as mentioned hotel is
producing quality of services and different types of rooms to large customer
base. Further, the hotel opt different types of segmentation for attracting
different income group and their taste and preferences towards the hotel aura.
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1.2 Evaluate the benefits and costs of a marketing orientation for a selected organization.
Market orientation is an enterprise model for system which generally focuses on
delivering high quality of services at an affordable price to consumers. Hyatt in order to
attract customers can produce services either with services oriented or market oriented
concept. Service oriented concept is the one where organization develops services according
to their own wish. On the different side, market oriented concept is the one where corporate
produces only those types of services which are mostly demanded by the customers.
Moreover, costs and benefits of hotel industry have been explained. They are: Benefits: By incurring higher cost on both advertisements as well as on promotion,
Hyatt gets many benefits as it is able to achieve the hearts of large number of
customers. Once developed, customers will always be there for Hyatt if the hotel
would satisfy the needs and demand of customers in an efficacious manner (Rosen,
2009).
 Expenditure: In order to increase the sale and productivity off their hotel services,
there are different costs which usually Hyatt spends in order to develop a particular
service in the market. Furthermore, administration has got healthy trust of their
customers from whole over the world because Hyatt spends a lot of money in the
market research. Moreover, in order to develop healthy services in the market, Hyatt
usually do healthy advertisement expense which helps hotel in order to increase the
sale of their rooms, their food and different services.
TASK 2
2.1 Show macro and micro environmental factors which influence marketing decisions
Micro environmental factors are the factors which are linked with the hotel and can
significantly influence the performance of Hyatt. SWOT analysis of the hotel has been
deliberated:
 Strength: Hotel’s strength is their services and their hotel branches as Hyatt is having
almost 42 chain of hotel around the globe. Moreover, Hotel is considered as one of
the branded hotel chain in the world. Hyatt’s supply chain management is of very low
cost and their major operations like manufacturing and operations are integrated with
it. Furthermore, hotel's services are trendy as well as with beautiful aura.
 Weakness: Though Hyatt’s customer base has an immense trust on hotel’s services,
this is the only reason because of which hotel uses unusual strategy for the
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advertisement. Further, customers are price sensitive therefore; target segment might
go for cheaper and newer rooms and services.
 Opportunities: As hotel Hyatt is planning to start their one more hotel chain in UK,
there are more global markets where can explore their services and different rooms.
Still, with the popularity of digital marketing, hotel can focus on that too.
 Threats: Hyatt can have a major threat from other luxurious hotels. Further, worldly
downturn in any country can act as the major threat for their target customers. Still,
hotel faces tough competition from their major competitors namely Holiday Inn,
InterContinental Hotels Group, etc.
On the other side, macro environmental factors are those that generally impact the
corporate performance from different outside sources and some of them have been explained
as such:
 Political: Political factor is reasoned as a policy of government which hotel Hyatt
has to follow for efficacious running in the country. Moreover, it comes when
localized interferes in the economy as they come up with the laws which change
the way in which things are done in country for Hyatt. Further, Hyatt has to
understand the system of trade in order to import and export services from one
country to the other.
 Economic: These factors include change in the taxation rates, interest rates,
inflation rate as well as stock exchange rates. These economic factors have
potential to create a lot of problems for hotel Hyatt in the coming time period.
Further, the price of services and increase or decrease in tariff will also vary from
country to country (Ruckman, Saraf and Sambamurthy, 2015).
 Social: This factor plays a crucial role for hotel Hyatt as alteration in the social
trend may affect the demand for the services and also the willingness and
availability of guests to buy. Furthermore, hotel has to work on the current trends
in order to satisfy the demand of different income groups. Discount and
concessions also have their own importance (Huang and Sarigöllü, 2012).
 Technological: Technology is getting innovated day by day as bar coding,
computer related designs and online booking of rooms are the latest improvements
in the business sector. Moreover, expeditious technology can minimize the
expenditure for the hotel as well as it can enhance the services quality.
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 Legal: Media is gripping the hotel Hyatt from copyright issues and further, the
hotel, Top shop is purchased by Holiday Inn who has the best quality of services
and rooms starting from £400-£600.
 Environmental: Earlier earthquake in Japan has destroyed large number of
factories for many global organizations like Honda, Nestle, etc. Hotel Hyatt has to
take care of this factor as it is uncontrollable.
2.2 Propose segmentation criteria to be used for products in different markets
Segmentation generally provides lots of benefits to both customers as well as to
organization itself. This segmentation helps hotel Hyatt to treat all their customers in an equal
manner. Hyatt is planning to set their new empire in UK (Ruckman, Saraf and Sambamurthy,
2015). Further, this hotel can bisect their services on the basis of following segmentation: Demographic- Demographic segmentation for hotel Hyatt consists of different
income level, occupation, social class, ethnicity, etc.
 Psychographic- This segment groups the guests as per their behaviour, interest,
attitude as well as opinion.
For increasing their brand image, hotel is planning to make book their all the existing
rooms in UK market from the head office. In order to meet this, junior manager of the hotel
has focused on two segments namely the demographic and psychographic segmentation
(Rosen, 2009). With the development of global brand in UK, many customers will be
attracted towards the hotel product and by giving them discount offers in the initial stages and
different room prices for different income group; Hyatt will be able to achieve the hearts of
guests in UK as well.
2.3 Choose a targeting strategy for a selected product/service
As holiday season is upcoming, Hyatt in UK will have major emphasis on deluxe
rooms for standard guests on the basis of their income. Moreover, after the accomplishment
of market segmentation criteria, Hyatt can develop appropriate targeting in order to give
tough competition to their major competitors. Different pricing strategies have been given
below:
 Concentrated strategy: Concentrated strategy focuses on designing promotional
message which will communicate the advantage of a service for a particular segment.
 Undifferentiated strategy: It is a strategy where organization sends a single
promotional message to all the potential customers. Further, this strategy is helpful
only when a hotel services have fewer stragglers in the market.
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 Differentiated strategy: Differentiated strategy is the one where organization focuses
on two or more market segments by developing appropriate market mix for each
segment.
Further, for promoting of the deluxe rooms, hotel can implement differentiated
strategy as Hyatt has to advertise different promotional messages for both income groups and
according to guest taste and preferences.
2.4 Demonstrate how buyer behaviour affects marketing activities in different buying
situations.
Customers generally use the services according to their needs and demands. Hotel
Hyatt can face buyer perception towards their wants in UK because buyers will have their
own taste and preferences in order to choose the services. Hotel Hyatt cannot force people to
choose their hotel for the stay (Huang and Sarigöllü, 2012). Moreover, in order to increase
the sale and productivity; hotel can use effective advertisement and sale promotion for
increasing the customer base in UK.
Furthermore, customers are generally price oriented therefore; hotel Hyatt has to set
the price for deluxe room for quite low at an earlier stage. This is because; it will attract the
potential customers in order to buy Hyatt's services. Hotel is also having the liability to give
wide variety of rooms and hotel chain indifferent locations for attracting consumer’s
attention. This hotel is giving varied service options so that customers would get satisfied and
will become loyal towards the Hyatt.
2.5 Propose new positioning for a selected product/service
Positioning is defined as developing services as well as the brand image of hotel in
the eyes of consumers. This process also includes improving the perception of consumers
regarding the experience they had after using the hotel's services. Furthermore, Hyatt has
clearly mentioned the price and size of rooms provides which will attract the minds of
customers. Hyatt hotel's motto is to attract the middle class as well as higher upper class
people. By seeing this, Hyatt provides the best rooms and services at an affordable price
(Ruckman, Saraf and Sambamurthy, 2015).
Further, aforementioned hotel can implement price positioning strategy as Hyatt can
set the price of rooms provided by the hotel according to different sizes and even by
considering the aspect of income approach towards these services.
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TASK 3
3.1 Explain how products are developed to sustain competitive advantage
Hyatt produces only those services which give organization a competitive advantage
over their competitors. Competitive advantage is considered as a positioning of hotel services
in the eyes of customers as the services gives maximum satisfaction as compared with the
other services (Kim and Hyun, 2011). This instance certainly happens when business
enterprise develops a genuine brand loyalty in the eyes of their large customer base. Some of
the competitive advantages which mentioned company can use are stated as below: Expenditure competitive advantage: It is the one where hotel utilizes its skilled
employees, inexpensive raw materials and excellent operations in order to generate
the maximum value to consumers. Hyatt hotel use offshore methods for keeping their
cost of services provided at down level.
 Services secernment: If services of Hyatt are unique as compared with of other
competitors then certainly differentiation will come into place. Further, price of Hyatt
rooms differ on the room services which they are taking in order to provide that
service. However, hotel generally cares for their customers’ needs and demand and
generally focuses that customers would get the best quality of services at an
affordable price.
3.2 Explain how distribution is arranged to provide customer convenience.
Distribution channel will play a crucial role for Hyatt hotel in order to provide more
convenience to the consumers. Hotel will focus on providing hotel rooms and services far
from at a place where a mass of individuals reside so that more customers will approach the
hotel for beautiful ambiance. Further, main aim of distribution channel is to keep the
distribution expenditure as low as possible. Further, to develop effective sale, the hotel can
choose: Qualifier distribution: This distribution strategy will focus on making maximum
availability of rooms and services within all the hotel chain so that customers would
get the best quality services at an affordable price (Nwankwo and Gbadamosi, 2010).
 Exclusive distribution: Exclusive distribution focuses on creating high market sales
by developing effective sales and by making the services available in the hotel's outlet
itself.
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3.3 Explain how prices are set to reflect an organization's objectives and market conditions
Prices for hotel rooms need to be set in order to achieve the value for Hyatt hotel.
Further, the hotel is focusing on increasing higher sales of rooms in UK market which will
simultaneously increase the goodwill of Hyatt. Further, some pricing strategy has been
elaborated below: Superior pricing: Hyatt hotel is focusing on some Super Qweeny Suits which will
only target the rich and high income class people. As hotel is a popular brand in
Spain, corporate has loyal customers from whole around the globe which generally
increases the demand and brand image for the corporate (Huang and Sarigöllü, 2012).
 Combative pricing: Prices are set for the Hyatt rooms by considering the needs and
demand of customers.
3.4 Illustrate how promotional activity is integrated to achieve marketing objectives.
Promotional activities play a significant role in order to achieve the marketing
objectives as promotion is considered as an important element of the marketing mix.
Promotional measures which are adopted by the hotel are: Online promotion: Online promotion is recent and the most effective means of
promotion within competitive market which is generally increasing the sale of rooms
in hospitality industry. Online promotion can be through different tools like Add
words, Search engine mechanism, Social media marketing, etc.
 Advertisement: Advertising on TV is a common practice which is followed by each
and every organization. Advertisement shows pricing strategy and place strategy that
is the location of customers. Further, services should be easy in reach of individuals
(Kim and Hyun, 2011).
3.5 Analyze the additional elements of the extended marketing mix
Marketing mix is performed by Hyatt after distinguishing the marketing strategy. These are
elaborated below: People: Employees are the one who increase the sale and productivity of the hotel as
they provide the best quality services in order to attract large customer base. Further,
by recruiting right qualified staff at right time increases the efficiency of Hyatt as
these individuals give rise to other sales promotion activities of the services. Process: Managing quality and cost of services is one of the crucial requirements of
the hotel. Further, Hyatt should have well tailored process in order to minimize the
cost. Moreover, online and physical sales help Hyatt to increase income as these
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measures attract consumers to choose hotel services and rooms instead of their
competitor’s.
 Physical evidence: This shows the way in which Hyatt and its service is perceived in
the market place. Further, physical presence of services cannot be possible. Rooms
with all innovative features explain the usability of rooms for the guests. Moreover,
organization should have multiple hotel chain at metropolitan areas in order to
increase its sale and (Henley, Raffin and Caemmerer, 2011).
4.1 Plan marketing mixes for two different segments in consumer markets.
The present plan will focus on room services in hotel is seeking its presence in UK.
Marketing mix for the same has been given: Product: Newly designed rooms will attract both segments as hotel will come with
the best designs and quality services (Rosen, 2009). Price: Competitive pricing will be set by Hyatt in order to get trust of different
income groups and this will also help the hotel to develop a loyal customer base. Place: hotel rooms will be available at both physical booking of rooms and online
booking of hotel. This gives a convenient position to customers for choosing their
selected hotel rooms according to their affordability.
 Promotion: Selective promotion through sponsorship and sales promotion will help
hotel in saving high expenditure (Ruckman, Saraf and Sambamurthy, 2015).
4.2 Illustrate differences in marketing products and services to businesses rather than
consumers.
The marketing measures for business and consumers which Hyatt will follow have
been explained as below: Product: Hyatt focuses on developing high quality rate of services as the
consignment size in consumer market is quite low. On the contrary, for business unit,
Hyatt deals with enhancing higher sales through developing flexible the demand in
B2B market. Price: Hyatt adopts cost plus pricing measures to generate the demand within
business units and to enhance the sales as well. On the contrary, for consumers,
competitive pricing policy has been adopted by mentioned hotel. Place: For marketing services to business units, Hyatt approaches companies because
limited number of buyers is available in the market. However, for consumers,
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effective measures have been developed to increase the sales and productivity (Kim
and Hyun, 2011).
 Promotion: Promotional measures such as advertisement and sales promotion are
adopted to attract more consumers towards services whereas for business units, Hyatt
adopts sales promotional measures for developing high room discounts to create
effective sales.
CONCLUSION
It can be concluded that hotel follow different marketing techniques and measures.
Business organization will get a combative advantage over their challengers. These measures
help the hotel in enhancing market sales by creating effective market demand and through
effective product promotion within the hotel Hyatt.
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