Marketing Essentials for Travel and Tourism: IHG Hotel Analysis Report

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This report analyzes marketing essentials within the travel and tourism industry, using InterContinental Hotels Group (IHG) as a case study. It explores the key roles and responsibilities of the marketing function, its interrelation with other organizational units, and the significance of the marketing environment. The report compares IHG with Marriott, applying the marketing mix (7Ps) to achieve business objectives and designs a strategic marketing plan. It covers topics like gathering market information, marketing planning, branding, and customer support, emphasizing the importance of promotional strategies. The analysis includes how marketing interrelates with human resources, sales, and research and development. The report concludes with a basic marketing plan to meet organizational objectives and enhance customer satisfaction and competitive advantage within the hospitality sector.
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Marketing Essentials for
Travel and Tourism
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Key roles and responsibilities of the marketing function within a selected travel and
tourism organisation.....................................................................................................................3
P2: Interrelation of roles and responsibilities of marketing with wider organisational context. .5
M1: Analyse the roles and responsibilities of marketing in the context of the marketing
environment ................................................................................................................................6
M2: Analyse the significance of interrelationships between marketing and other functional
units..............................................................................................................................................6
D1: Critically analyse the key elements of the marketing function and their interrelate with
other functional units...................................................................................................................6
TASK 2............................................................................................................................................7
P3: Compare organisations by applying the marketing mix to achieve business objectives ......7
M3: Evaluate different tactics applied by travel and tourism organisations..............................10
D2: Design a strategic marketing plan to achieve overall marketing objectives.......................10
TASK 3..........................................................................................................................................10
P4 & M4: Produce a basic marketing plan for a travel and tourism organisation to meet
marketing objectives..................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Marketing is the set of different activities that involve in creating and communicating the
best suited offers to the clients, partners, customer as well as society. It identify the requirement
of customer for which data is collected based on which the company tap into the untapped need
which act as opportunity to cover the whole market effectively (Yanenko, 2018). Within
marketing essential, the market research determine the vital information that is useful to address
the specific issue, design collection of vivid information, analyse significant result and
communicate the same to the interested stakeholders of company.
In terms of services, marketing is based on delivering the value and formulated strategy
to build long term relationship with ultimate target market. To deal in services firm need to
cautious due to its unique intangible experience that helps to build strong experience of customer
regarding the offerings. For the better understanding of report Inter Contionenetial hotel group
has been selected which is the multinational hospitality company that has the headquarter in
England(Yanenko, 2018). The company basically provide different services like hotels and
resorts to the customer in order to cater the tourist of different country and make their trip
memorable. This report cover tropics like role of marketing and its interrelation with the
different functional unit. Compare the ways by which different travel and tourism organisations
uses the marketing mix. Further, develop the marketing plan to meet the objective of an
organisation are covered in this report. Report is about the marketing plan which is being
implemented by company in order to achieve their goals and objectives
TASK 1
P1: Key roles and responsibilities of the marketing function within a selected travel and tourism
organisation
Marketing function assist the company to identify as well as promote the successful
brand within the diverse market by differentiating it with others. The typical functioning
comprises of different roles as well as responsibilities such as conducting in-depth marketing
research, preparing plan and maintaining public relation for potentially functioning of an
organisation (Jeon, Ok and Choi, 2018). Explanation of roles and responsibility of diverse
marketing functions for IHG hotel are defined below:
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Gather market information: This is the prime marketing function that assist the
organisation to gather the significant data which is required for potential functioning of firm. It is
useful way to collect the data that can be used by the IHG hotel to cater the needs of customer.
Analysis of the relevant information is the core responsibility that help to design the criteria and
promote adequate business functioning.
Marketing planning: It is the essential part of the marketing functioning under which
the future action as well as strategies are determined for the functioning of firm. Within IHG
hotel the roles and responsibility of marketing function helps to enhance the overall production
as well as sales of company. So adequate or strong planning leads to smooth business
functioning required for sustainable development.
Branding: This marketing function is responsible to generate the awareness of the hotel
and differentiated the services with other rivalries. It consist of the brand promise that need to be
catered by the company (Sharma and Kaurav, 2018). Like, the IHG hotel which offer luxury
services exclusively pay attention to the need of each and every individual in order to retain its
image within hospitality industry.
Customer support service: It involve different kind of function like provide after sales
service, handling the issue or problem faced by customer, procuring the credit services and so on.
In context to the IHG hotel the main responsibility of this function is to retain the interest of
overall customer by solving their issue within suitable duration. Arising issue is not the major
issue if it is handled adequately so the selected hotel offer the customer support services via its
website which is the part of online platform as well as physical hotels.
Promotion: As per promotion marketing function all the necessary detail such as its
attributes, usage as well as prices of the product or services is shared with the customer in order
to persuade them to take the action suitably. Some of the promotional tools used by IHG hotel
comprises of advertisement method and building positive publicity whose roles and
responsibility is to build the sound image of company which is required to take all the possible
actions.
Therefore, various marketing functions cover diverse areas but the sole objective of these
roles and responsibility is to attract the customer and fulfil their expectations which are
beneficial for the service marketing to gain competitive advantage. Thus, the marketing manager
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of IHG hotel is to anticipate the external market and enhance the profitability as well as
productivity of firm.
P2: Interrelation of roles and responsibilities of marketing with wider organisational context
Marketing is the vital business activity that help the firm to maintain customer
satisfaction and maintain long lasting relationship with them for adequate functioning of firm.
This marketing function is highly related with the other function of an organisation as all the
function are the internal part of an organisation whose ultimate objective to attain the objective
of firm. This laid the marketing department to be backed up by other department and carry out
the effective performance (Yilmaz, 2018). If the IHG hotel prepare plan then the marketing
department needs to support of HR, finance, production as well as sales. Explanation on the
interrelation of different department are determined below:
Marketing with HRM: Human resource department are responsible to hire the right
applicant, train as well as engage them by formulating effective employment relation. The basic
purpose of this department is to manage the personnel and and motivate them to enrich the
existing skills and capabilities in order to attain the desired outcome. So marketing department of
IHG hotel depend upon HR department to get the potential employee that can boost up the
reputation of firm. Similarity, they can get the performance evaluation report based on which the
marketing manager can organise the session to attain the collective target.
Marketing with sales: Sales department is responsible to direct deliver the services to
customer by pitch them and sharing the usefulness of particular product and services. This
ultimately help the organisation to enhance its profitability as well as productivity. Similarly,
marketing is the broad term which is not only confined to selling the services but it cover the
activities like conducting market research, convert business idea into concept and then finally
deliver it to the potential market (Shinohara, 2018). Thus, both of the function are interrelated
with one another like the marketing department of IHG hotel depend upon the sales department
to attract the customer and enhance the footfall of company. Also with the help of this
department company can gain the idea of customer response as well as behaviour towards the
product so that they can bring modification in the existing product.
Marketing and research department: Research and development department is
responsible to analyse the external environment or surrounding and anticipate the changing trend
based on which existing organisation need to bring certain alteration. Data is the prominent part
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of the marketing department which is generated from the research technique which depict the
interrelation of marketing function with research and development. Like, earlier IHG used to
maintain most of the data manually but with the help of R&D department it understand the
marketing department understand the relevance of technology to store all the vital data of
customer. This data can be further used to analyse the performance of company and understand
the response of customer in order to build the long term relationship with customer.
M1: Analyse the roles and responsibilities of marketing in the context of the marketing
environment
Marketing is the successful tool that laid the manager to sell the ultimate product or
services to the customer in order to enhance the sales as well as profitability of firm. It involve
the different marketing function that help the company to establish the base of loyal customers
that can facilitate the performance of firm (Paniandi and et. al., 2018). The marketing function
analyse the external marketing environment and carry out different roles and responsibilities
liker to gather the essential information regarding changing preferences and taste of customers.
Develop the suitable branding and promotional strategy in order to facilitate the customer to
make the final purchases. Further, it even involve the after sales service to gain the trust and
build long term relationship with potential customer.
M2: Analyse the significance of interrelationships between marketing and other functional units
As marketing department is interrelated with the other functional area such as sale,
research and development which benefit it by getting the wide arena on the basis of which
suitable actions can be taken for the effective business performance. Like, the significance of
interrelations with HR department is that the marketing head gets the pool of suitable candidate
who are trained enough to perform their respective tasks effectively (SINGH, 2018). Similarly,
interaction with sales department is significant to handle customer grievances and widen up the
sales of services.
D1: Critically analyse the key elements of the marketing function and their interrelate with other
functional units
Marketing function involves different steps to reach out the final consumer. These steps
start from gathering data and work till customer satisfaction. So it is vital to carry out each stage
other it may lead to dissonance and wastage of company both in terms of money and cost. The
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IHG hotel with the help of market research analyse the customer behaviour as well as
competitors strategy based on which firm prepare its own strategy and conduct promotion. It is is
done and planned effective then it will lead to favourable result otherwise this will give the
opportunity to the rivalry in order to enhance their market (Birdir, Dalgic and Birdir, 2018).
TASK 2
P3: Compare organisations by applying the marketing mix to achieve business objectives
Marketing mix consist of 7P's that help to make the desired strategy in order to attain the
better result and serve the whole market effectively. This represent the set of tactics that help the
firm to focuses on different elements and attain the objective by enhancing the brand amongst
significant consumers.
Basis of difference IHG hotel Marriott hotel
Product IHG hotels sells the product within
different categories such as Even
hotel which help the firm to
concentrate and focus on the
different product lines due to which
customer gets the opportunity to
select that variety or category
which suits their requirements.
Thus, the company is more keen to
deliver the supreme quality service
in order to retain the interest of
customers (Intercontinental Hotels
Group Marketing Mix Strategy 7Ps
Analysis. 2018).
Marriott hotel is highly recognised
in terms of its luxury chains of hotel.
This helps the company to attract the
tourist of different geographical and
get the benefit to avail core, actual as
well as augmented services from
company in order to suitably enjoy
the stay.
Price As the company seek for the
differentiated strategy for which it
has the skimming or premium
pricing structure which is relatively
higher than the price of
Although the company charges high
prices but sill it varies as per they
location, customer requirement as
well as different hotels such as JW
Marriott, Gaylord and so on. The
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competitors. Even the loyal
customer do not mind paying
higher prices because of the
additional features and customer
oriented services.
company set prices on the basis of
need of customer so that they remain
satisfied and find worth spending in
particular company.
Place The different category of the hotels
that fall under IHG cover different
geographical market including both
developed as well as developing
part of the country. There are
approximately five thousand hotels
and eight lac room. This represent
the capacity of company to cover
the huge guests and look after their
needs effectively. Also it uses both
online and physical hotels to deals
with the customer and create value
addition.
The company currently function
around 120 countries and usually
select the locations which are near
the crowded marker or airport for
the convenience of customers
(Marriott Marketing Mix (4Ps)
Strategy. 2019).
Promotion The company depends upon
multiple channel to appeal the
interest of customer and promote its
different services wisely. This
include the use of traditional media
that comprises of print media or
television as well as digital
platform such as website and social
media to attract the people and
widen its reach. Thus, it is the
potential platform that help to
convert the potential customer into
Marriott solely uses the digital
platform to share all the detail
information to the customer. As
majority of the people are internet
user so it uses different marketing
marketing tools like website, email
marketing, SEO, affiliate market and
most important social media to
remain connected with customer and
resolve their queries.
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the loyal ones.
Physical evidence In terms of Physical evidence the
company has the online user
friendly website that allow the
customer to view the distinct
product and services that are
suitable enough to maintain the
quality and fulfil the requirement
effectively.
The hotel, resort, great ambiance as
well as physical objects such as
towel or other toiletry items are the
part of physical evidence. This leads
to the lasting experience of company
and retail the interest of customer.
People People who are the part of
respective hotel are highly trained
as well as competitive enough to
understand the preferences of
customer and guide them in the
potential direction. As the company
changes the high prices and have
sound reputation sue to which they
cannot afford compromising its
services. This led them to
understand the required of
customer and fulfil them in order to
enrich existing skill and capacity of
workforce and eradicate the
chances of dissonance.
Service the guest potentially is the
basic objective based on which the
hotel prepare the different strategy.
Staff or the personnel delivers the
services so the manager offer them
consistent training to standout their
services amongst the rivalries
(Llopis-Amorós, and et. al., 2018).
Process With the advancement of
technology, the internal staff area
more prone to use the latest
innovation that help in systematic
functioning and quality delivery of
services. Along with that the
To ensure the delivery of quality
services the processes of Marriott
hotel include the efficient booking as
well as comfortable stay. Almost all
the activities starting from the online
booking, check-in rooms as well as
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company uses special software and
customised database management
system to record all necessary
information and enhance the
process on the basis of cost as well
efficiency.
check out are done in the well versed
ways.
M3: Evaluate different tactics applied by travel and tourism organisations
Tactics basically refer to the innovative technique or strategic plan that basically assist
the organisation to enhance the performance of business. For this the manager of IHG hotel
makes significant effort to focus on the different elements of marketing mix and articulate right
tactics for each and every elements. Such as the company concentrate to prepare differentiated
strategy for each of its divisions to et the unique image of company. Also innovative technology
are used by company such as automation and use of special software for which training is
provided to the staff. This lead to potential deliver of the services with the perspective to attain
the overall objective.
D2: Design a strategic marketing plan to achieve overall marketing objectives
Marketing plan is the structured process that comprises of various components like
setting the objective as well as vision and mission for the offerings of company. Based on this
the marketing mix is prepared in order to avoid the chances of deviation. As the marketing plan
of company is to enrich its services and become the top most luxury brand so according it
prepare the tactics for marketing (Abou-Shouk and et. al., 2018). IHG hotels believes in deliver
quality services for which premium prices are set which is higher than rivalries strategy. Along
with that it chooses its location appropriately like near airports so that the traveller do not have to
strive hard in order to reach the particular hotel. Further, the quick and potential services led the
hotel to retain the interest of customer and attain the overall marketing objective effectively.
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TASK 3
P4 & M4: Produce a basic marketing plan for a travel and tourism organisation to meet
marketing objectives
Marketing plan is the systematic structure or comprehensive activity that outline and
develop the effective functioning of firm. This is most preferable method which is used by the
organisation before launching the new product in market. Application of marketing plan laid the
manager of IHG hotel to enhance the overall profitability of firm by preparing the set objectives
as well as strategies related to the marketing and advertisement functioning in order to
accomplish the set objective.
Overview of IHG hotel
InterContinental hotel is the public limited company tahat was founded in 2003 and
curern6tly operate in more than ninety countries. The company has different divisions like Even
hotels, Candlewood suites, Holiday Inn, Crowne Plaza and so on. These different division are
responsible to effectively cater the need of traveller who require the hotel and accommodation
facility in order to relax and enjoy the stay. Due to which it has the wide capacity to cover
approx eight lac guest at a time (Tadic, Ratkic, and Suput, 2019). Thus, to smoothly expand and
diversify the business, IHG hotel has planned to use the robotics technology in order to reduce
the waiting cost and carry out different activities smoothly.
Objective: To deliver the supreme level of services within stipulate time period with the
help of Robotics technology. This will possibly attract the traveller so the objective of firm is to
widen its profit margin by 15% within one year.
Vision and Mission: The vision of IHG hotel is to be the prime option for the customer
in terms of luxury hotel. So to fulfil it the mission of company is to maintain the relationship
with customer and provide additional feature to the customer in terms of convenient booking,
pick up and drop facility, provide workout and spa corner.
SWOT Analysis
Strength
The wide size of the IHG hotel can help them
to gain the advantage of economies of scale in
terms of further expansion, use advance
Opportunity
As most of the customer largely depend upon
the internet, so use of digital media is an
opportunity for company. This can help the
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technology and promotion of company to
effectively attract the huge customer base
(Gupta, 2019).
IHG hotel to promote the innovative Robotics
technology with the use of online platform.
Along with that with the help of analytical tool
the company can analyse the existing
performance of company for which
improvement actions can be taken to engage
the traffic.
Weakness
The all division of company serve the premium
customers only due to which no economic
holding is the weakness for company that has
laid to the confined customer base. As well as
dynamic environment and changes in the
external factor act as a weakness because it
affect the performance of internal staff.
Threat
There care various competitor of company
such as Marriott and Hilton that too offer the
luxury services to the customers but at low
rates in comparison to the IHG. So strong
presence of substitute is the threat to company.
Marketing mix: The marketing mix for the new innovative that is Robotics technology
is described below:
Product Introductions of the Robots to carry out different functions of an
organisation such as house keeping with leads to perfection as it
does not involve human error.
Price The manager charges high or the premium prices from the
prestigious customer.
Place Initially, IHG hotel has decided to launch the robotics technology
in UK and USA to check the customer response.
Promotion Use of digital platform to share the post regarding advance
technology.
Physical evidence Computer system, robots as well as technical equipment are
particularly the physical evidence that help build customer
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