Marketing Report: Strategies and Analysis for the Hospitality Sector

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This report provides a detailed analysis of marketing strategies within the hospitality industry, focusing on concepts such as marketing mix, marketing environment, and consumer behavior. It examines the application of these concepts through the example of Hilton Hotel, covering topics like marketing concepts, the impact of the marketing environment, industry correspondence to consumers, and the rationale for developing different market segments. The report further delves into the marketing mix (product, price, place, promotion), pricing strategies, promotional mix, advertising campaigns, and the role of sales promotion and public relations. It also discusses the marketing cycle, market research, media suitability, and the development of a marketing plan. The report emphasizes the importance of understanding consumer behavior, adapting to the marketing environment, and implementing effective promotional strategies to achieve success in the competitive hospitality sector. Finally, it highlights the importance of understanding the marketing mix and the marketing cycle to develop effective strategies.
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MARKETING IN
HOSPITALITY
INDUSTRY
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Marketing concepts..........................................................................................................3
1.2 Marketing environment and its impacts on industry .......................................................4
1.3 Industry correspondence to Consumer.............................................................................5
1.4 Rationale in order to develop different market segments in hospitality industry.............6
TASK 2............................................................................................................................................6
2.1 Marketing Mix..................................................................................................................6
2.2 Pricing strategy and policies for industry.........................................................................7
TASK 3............................................................................................................................................8
3.1 Promotional Mix and its role in Hospitality Industry.......................................................8
3.2 Advertising Campaign for Industrial Operation...............................................................9
3.3 Role that sales promotion and public relations play in promotional efforts...................10
TASK 4..........................................................................................................................................11
4.1 Marketing Cycle and its relevance to Service Industry ................................................11
4.2 Undertaking Market research........................................................................................12
4.3 Suitability of Media of Marketing ...............................................................................13
4.4 Marketing plan for an applicable product or service......................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
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INTRODUCTION
The process which involves creation and communication for delivering the product refers
to the concept of marketing. There is a broad network for marketing which conceptualises the
basic aspects of it with skills and a convincing power towards the client. Basically, they are
managing components which covers the elements like . the objectives of the organization,
market demands, strength of competition in the market to analyse the success of its business . .
Relationship between market and marketing tends to be in direct proportion. In UK, the Hilton
Hotel Corporation is a well known name which provides hospitality services. They have
marketing strategy with all backup consisting of various types of services that they render to
their customers.. Many of the products and services of Hotel Hilton are inspired by the dedicated
services delivered to its customers. The report is all about services that a hospitality industry
provides and the concept of marketing mix in this. Later, the promotional mix and the cycle of
marketing are also discussed.
TASK 1
1.1 Marketing concepts
Relatively, marketing is simply a reflection of all business aspects; Hilton is bit different
in its hospitality. Transportation, communication, and accommodation these all are the services
the cited hotel is providing. . Customers may have these services so they are imaging a scenario
for better quality and service. There are few concepts on which a hospitality industry should give
an eye. Marketing will be so better as the presentation of the services is so great and it should be
well understood by the one who is availing it (Nikolaou and Evangelinos, 2010). The difference
between the service which Hilton provides and the other hotels are providing clearly show how
good is yours. The hotel Hilton have a different marketing approach so that it gives a better
hospitality to customers. They have employees that are having adequacy and a well planned
schedule , they also have a team for marketing which is fully responsible for their task which are
carried out by them. The concepts of marketing include needs, demands, products, market
transaction, exchange service etc.
They have patience in their employees which are related to the marketing department and
generally it can be formed as time consuming strategy in which the organization have to do their
task on the ultimate time given to it. Clients are handled by the responsible workers which
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makes a positive impact on client (Blythe and Megicks, 2010). The limited offers based on time
are a better strategy for improving demand. Catalogues with better written data and clear photos
are used by the hotel as the customer will have the idea about the services in details. Hilton is
known for its best hospitality and dealing with it for past years, an appropriate team of workers
and supporting staff is also there so customers can have the best services. There are so many
services provided by Hilton which includes equipment, conferencing, rooms for meeting etc.
They also have the babysitting for the convenience of the family (Nwankwo, 2010). Shops for
gift, news stand, lounge, staff for luggage, laundry and more. Through these marketing concepts,
empire of this hotel Hilton is established in all over the world.
1.2 Marketing environment and its impacts on industry
The industry have so many things and by some of which it has affected, basically there
are so many impacts of marketing environment on a firm. Relatively the firm is a part of industry
so the value of some products in market will definitely decreases. Some of them can be
controlled by the organization itself some are out of their control. The Hilton have so much of
impacts of the marketing environment, they are having those impacts with some positive or
negative points. Basically there are three types of marketing environments which may affect an
organization beyond the industry: internal, macro and micro.
The internal environment is the reflection of the things which are done in the Hilton
itself. Internal environment is having the basic aspects like employees, policy of company,
structure of the firm and the products ( Sakkthivel, 2011). If the details of the employees or the
customer sounds any difference due to this marketing strategy will suffer as the wrong
authentication of customers and employee will make an impact on market which will further
affect the industry. As above it is controllable by the organisation and respected Hotel can make
sure about this as their internal affairs can be handled by the corporation and if there is any need
it can be modified.
Organisation is availing their services on daily to daily basis. It consist of the things
which have the direct interaction with the hotel and its aspects. For example the Customers and
the unions related to trade, in market there are so many competitors (Simkin and Dibb, 2012).
As the business of the Hilton is marketed so rapidly but there are some elements like unwanted
people in town, some other competitors who wants to let the Hilton down, can keep a negative
impact on image of hotel in market, then industry will also get a mark by this. Besides this, it is
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important to have a complete knowledge of latest trend that is running in the market at present.
This will help in rendering latest and best service to the consumers as per the current trends.
Thus, a better satisfaction level among customers can be established. Thus, the marketing of firm
should also be based on the modern methods and trends (Chabowski, Mena and Gonzalez-
Padron, 2011).
So as of them some are controllable by the management of the hotel and some are not.
Stakeholder analysis is the key for interpreting the micro environment stream of the marketing
environment, organisation can get over these impacts as they maintain their relation with their
stakeholder.
Macro environment is defined as an extensive approach of the factors that are not that
near to the Hilton. Impacts are determined with it and can be measured globally. There are so
many other hotels that can be affected by this environment. Legislation, the economy, and
changes in technology are the factors of macro environment. The policies and laws of a place
affects highly the decisions regarding pricing, designing etc. (Miles and et.al., 2016). Thus,
theses macro environmental impacts are necessary to be considered. Apart from this, the hotel
must also consider the fact that products and services should be based on giving welfare and
quality service to customers which is socially acceptable. The marketing of such goods and
services will greatly help in leveraging the image of firm.
1.3 Industry correspondence to Consumer
Hotel industry has so many different components on which it depends; consumer is the
element which can decide quality of services provided by the hotel. In UK, competition in the
hospitality industry is quite challenging due to the other good competitors. The success of the
host is completely based on the feedback of their customers. It is important that how the
consumer behaves throughout analysing the services and products that are provided to him by
Hotel Hilton. To get the result which is desired by the Hospitality industry, it develops personal
relationship with the customer. There is a great impact of the external environment on marketing
area of Hilton., and due to that impact some fluctuations are also there regarding customers.
Customer who influenced personally his behaviour is depends on the marketing plans adopted by
Hilton (Houben, Lenie and Vanhoof, 2010).Competition in market and the sense of realising it
both are the important factor for an appropriate marketing. .
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So many competitors are willing to have their customers with a symmetrical relationship.
They want to maintain a proportion with their consumers according to their demands and market.
Hilton believes in the concept of making a chain of regular customers for long time. Good
Relationship with customers is a better approach for making a goodwill in market. They are
providing best facilities to their regular and seasonal consumers including the room and the other
facilities. Hilton have lot of employees and other staff to handle so many customers at one time,
so the hospitality always remains same. To build a successful consumer market that is correlated
with industry, it is essential to provide best services to them which can help in building personnel
bond.
1.4 Rationale in order to develop different market segments in hospitality industry
Every company and business enterprise of different industry wants to make higher and
better position in the market where it operates. Hilton hotel is a highly known brand in the
hospitality industry who provide its services on to every age of people as well as in different
geographic segments as well. If the Hilton hotel develops different market segments then it able
to attract more number of customers for consuming its hospitality services. Further, it helps the
firm in order to develop more number of opportunities in hospitality sector at the national as well
as international level. In addition to this, another rationale of market segments are creating niche
market and strategies, gain competitive advantages, expand the firm at the higher level etc.
TASK 2
2.1 Marketing Mix
Marketing mix of Hilton is containing the 4 P's, including Product, Place, Price,
Promotion. For attaining the goals and the objectives the department of marketing is following
this theory. The services are provided by the firm either it is tangible as the goods or intangible
as the services. There are 2 things which extract the marketing mix, one is quality of the service
and the other one is decision must be safe for the betterment of customers and the organization.
Product: Product mix is referred to the services that provided by the firm either it is tangible as
the goods or intangible as the services. There are 2 things which extract the product mix for the
Hilton, one is quality of its service and the other one is decisions that has been made for safety
and betterment of customers and the organization (Strauss, 2016). Product that is available on
the floor needs to be effective which leads to better choice for consumer.
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Price: Price mix is the aspect that has to be so competitive because of the other hotels are in also
have their feet in the business. The services should have the price which can compete for so long
as the other may not get better. The pricing strategy is always being very effective through out
the year of Hilton, either it is for seasonal customers and or for the daily customers (Baker and
Saren, 2016). The cash payments should get the offers for discount and payments which are early
must have the consideration of management for serving the policies. In the seasons prices of
services involved to activate the fairness of business as their prices for whole year are justified.
Place: Place mix is quite generative in the nature, essentially in market it provides the channels
for distribution of their goods. The business grows as its coverage in market and transportation
allows it (Boztepe, 2016). As it is known, Hilton has established its business in all over the
world, because they wants to make available all there services at as maximum places as they can.
In UK the Hilton is ranked in one of the top 5 hotels which makes it so popular. place mix have
reverse logistics and management of inventory in its zone.
Promotion: A brand wants to keep a big hand in market then it must have a promotional
strategy. There is a team for promoting the business in market in Hilton, which is advertising and
promoting the name of Hilton over the internet with the help of banners and some of other
standards. Promotional events are also organised by the Hilton through trade fairs and
exhibitions in different countries. To promote the quality of facilities they are providing and let
the people know about their specialities, promotion is done by newspapers, social media, the
team of Hilton. They do some promotional events in various cities as nationally and
internationally (Fidel, Cervera and Schlesinger, 2016). Realization to promotion mix is ensured
as the relations to public and their publicity are so essential for this. Competitors in the industry
will always look for a better choice so Hilton have so bright impact on their clients regarding the
services is provided to them makes a healthy competition.
2.2 Pricing strategy and policies for industry
Theory of pricing depends on some important factors like cost of the raw material,
demand in market as requirement of the customers and precisely on the basis of competitors.
Pricing of the certain services and products is so helpful in achieving the objectives that the
Hilton wants to. The share in market is increased day by day with the appropriate strategy of
pricing and policies. The strategy of the Hilton hotel is plotted on the basis of the orientation of
market demand and the price that can give the competition to the other parties (Berthon, 2012).
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The other hotels have high pricing of their services then the Hilton will apply the same strategy
for its betterment. The price is decreased as the area is not that supportive to the hotel and the
price is getting down consistently then the hotel is applying the exact method on their pricing
strategy. Hence the adjust of the price takes place according to area that it serves.
The increment and decrement in the prices are depended on the demand of customers.
Regarding the policies of the pricing there are more circumstances on which it depends. Because
there are many competitors in market have so much of potential in their prices so to be in the
competition, the pricing strategies should be competitive that can look up the demands in
market . In season there are some fluctuations in the pricing strategy because the number of
customers is comparatively high then normal days and in case of pricing all the decisions are so
critical for above mentioned hotel.
Loyalty is very essential in hospitality industry, their aspects should follow the ethics.
During the pricing of services that are provided to customer, hotels in UK are following the
ethics to make a reputed mark of their brand in the competitive market. Hilton is operating its
luxury and well situated hotels nationally and internationally so the business area is so broad.
The instant growth of the hotel which have made a large chain shows that it is the best pricing
strategy and the policy under which the chain in working on.
TASK 3
3.1 Promotional Mix and its role in Hospitality Industry
To be successful, with concentration on the quality we also need to focus on the
promotional mix by promoting the company in the prospective way that company good quality
can be offered to the consumers by convening them (Miles, 2016). At this point there is need to
focus our attention on the innovational promoting measures. It increases the sales in short
duration with long extension in reliability and promoting the customer to purchase the services
and products in the market. The main component required for promotion by hotel executives are
online marketing, advertisements, sales publicity, promotional selling, public relationship.
Brand Hilton enjoys its promotion and advertisement with the promotional team
members via internet. Monitoring the competitors and giving a healthy competition, Hilton
Hotels is very effective in the business. The Hilton takes care about the customer preferences and
offers its services to target directly the market by focusing on the travellers, authorize persons,
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business person and families coming for the vacations. Because of technological advancement in
countries like U.S. where marketing and the transaction are done online. In countries where
technologies are not so advance TV and local media is used for advertisements like in South
Africa. Before promotion the Hilton Hotels always carry out the market research. Through
promotion in media the consumers can go through the standards the accommodation offered like
the rooms, services, the style and patterns used. By this consumer get attracted by organising and
planning the wedding, meeting and other functional programmes.
The brand name of Hilton Hotels owns its success in the promotional strategies. Hilton
offers best incentives tour and make arrangements for there duration they stayed there with
proper accommodation. They also promote by welcoming the guest from the entrance, collecting
there luggage and other services so that they can offer friendly relationship of what management
is going to offer. The hotel offers the discount up to 25% during the special holiday months like
March, April, October, December and during off periods it offers 50% discount. For regular
customer they offer special membership card having some discount values. At hospitality
services Hilton was at number four all-over the world making its publicity more strong.
3.2 Advertising Campaign for Industrial Operation
Advertisement mainly focuses on the physical comparison between products and
professional services offered for selling them (Berthon, 2012). There are many ways of selling
the products and services. The advertisement when focused on the customer preferences makes
the cultural factor an important aspect. The product and services can become a brand if
communication in the market is positive. As a part of advertisement campaign, the awareness
and the influence to the customer for buying the product serves as tools. The outcome of this
campaigns are measured as the brand level which in terms results to the main focus to hoteliers.
Th campaign helps the customer to understand the brand name, its featured details, design, look
and logo.
While campaigning the companies should stay focus to there brand title as this will
increase the brand awareness resulting in attracting the consumer's. The campaigning can be
done through targeting the audience through media, budget, timing and the message delivered to
the consumers. Advertisement mainly focus on the newly launched products and services so that
customer gets it recognize. It promotes the purchase or product sales. There are two methods by
which the campaigning can be done. Emotional way creates the appeal making the customer
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decision based on the emotions and the other is rational way which focus on the practical details,
needs and its functional benefits to the consumers. For rational way the print media is mostly
suited. This type of campaign promotion helps to spread the business. For the industrial
operation both developing elements are taken care for effective profits.
Marketing expert describes that you can create the great and impressive advertisement
campaign but your services and products will help to promote the industries (Čačija, 2013).
Hotel Hilton promotes its campaign through means of media. Through this they cover the event
planner details and other forecast other accommodations to the clients. Also offering different
incentive plans they promote there services and increases the sales promotion. The campaigning
can be done through person to person, E-marketing, Guerrilla marketing, viral marketing and by
utilizing the public relationship strategies. The Hotel Hilton sends its details to other countries
like the sales and marketing personnel for marketing communication. Hilton takes care about the
training given to there employees.
3.3 Role that sales promotion and public relations play in promotional efforts
Sales promotion offers the consumers and the the distributors an extra value for creating
the fast sales. It provides extra incentive to the promotional efforts made by the hoteliers. The
simple methods can include coupon, discounts in prices, free distribution of services and
products. It also promotes the manufacturing products as discounting can make the product
stored in terms of stocks. The sales promotion can be divided into two; one is for the consumer
attraction and other is for trade oriented. First one includes bonus packs, discount in prices,
samples etc. This are made to attract the consumers and to influence them to purchase the
services and products. The other one includes the incentives, carry on point and delivering the
consumers product. Marketers utilizes this systems to get familiar to the services and the
products offered by the hoteliers to the customers.
Similarly public relations are the efforts that an organisation makes in order to develop
the society and convince them towards the organization (Chabowski, 2011). Its creates co-
relationship between the consumer and company. Its also helps to create the brand image, its
product and services. It creates powerful communication between the consumer's. Sometimes its
also recognized as the social interaction as this creates the interaction between the customers.
Impact on customer services get affected through the physical response by them.
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As described above Hilton offers the cards services to their potential customers. It also
termed as the card Hilton Honours. Through this regular customer can get discount on he
services provided by the Hotel. Its also benefits the customer through direct entry to the Hotel
without being in the queue with other customer. Not only this some offers like weekend
packages and other incentive plan are organized by the Hilton in order to sales promotions.
Public relation of Hilton is best resulted in the every countries. The hotels public
relationship helps to create the boundaries from the other hotels. The publicity of Hilton Hotel is
also through its ranking number four in the world for the hospitality services. Also through
public relation many famous personalities utilize this hotels for the party purpose and other
events. Hilton focuses on the guest experience and promises them to serve the unique way. For
the customer satisfaction the organization always look forward for the new innovation and
technologies to make them feel luxury.
TASK 4
4.1 Marketing Cycle and its relevance to Service Industry
This are the patterns that describes the marketing environment which makes the
organization to make researches on themselves in order to be different from others. Price may be
one of the factor which can be considered. Marketing cycle is generally created in order to
innovate something new, to describe the product guidelines and asset the environment (Quinton,
2016). Revenue collected and the profit gain may forecast the growth line of the company with
comparison to other companies. Marketing cycles consist of three phase which can be further
extended. Getting attention, it can be described as people should be aware about you that you
exist and about your products and services. The second phase includes the post; customer should
understand your services and values. At last it comes the selling, for the first time and repeat of
the sales.
Marketing cycle is the process to organize a sale or repeat it. The first thing it includes is
to make research, surveys and analysis in order to get information related to marketing the
product. Second comes the goal setting which includes the desired solution by the organization.
Then comes the content strategy, creation and duration for which planning, identifying and
publishing the outcomes. At last the distribution and the engagement where marketing of
product and reactions of customers is observed.
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This marketing process are utilized by the company for the establishment of the
production (Huotari, 2004). This cycle is completely based on the customer reviews or its
feedback on the products and services. As described above that its the observational response of
the consumer from different social media sources and other questionnaire responses. Hilton
Hotel also had the qualitative research which was utilize and to get feedback of the customer
observation. The feedback is usually done through the email process then it is stored in the word
and forecasted to the other people. Because of marketing cycles Hilton hotel is biggest
hospitality provider in the world, having more than 3000 hotels with over 100000 workers
working worldwide. The customer feedback is always appreciated here.
4.2 Undertaking Market research
Marketing research is a stepwise, systematic collection and analysis of data targeting the
market, product sales, competition and environment. Its is done in order to understand the
subject matter completely as it provides the crucial details to the organization to understand the
market and other competitors(Rundh, 2011). Through this we can explore the new opportunities
and consumer's behaviour. Marketing research helps to understand the customer completely
about there demands and provide them services and products that are beneficial for them.
Marketing research process includes many steps descried below. They are getting
problems related to market by identifying and defining them. Conducting investigation and
exploring problem related to the market. Determining the objective related to the research, data
collection process and their sources. Doing the research and having ideal questionnaire which
helps in understand the information collected regarding the market strategies. Organizing,
analysing, preparing and presenting the research report to the marketing manager. The marketing
manager then can separate the details according to the qualitative and quantitative research. The
most formulated results includes the increment in the sales output, getting better feedback from
the consumers, also wide range of audience can be targeted. After all this there is satisfactory
growth in development of the business with increase in sales. The best marketing research can
make the business to grow, succeed and achieve the greatest height in the market leaving the
other competitors down to earth.
Hilton marketing segmentation is divided into four main components such as the
geographic area; demographic ; the personality, lifestyle and values; benefits gained by the
organization. This segments are divided on the bases of the market condition. Hilton hotel
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