Marketing Report: Strategies of Hospitality Industry

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This report delves into the core concepts of marketing within the hospitality industry, with a specific focus on Marriott Hotel. It examines the influence of the marketing environment, including micro and macro factors, on the industry's operations. The report highlights the relevance of consumer markets and the rationale for market segmentation to cater to diverse customer needs. It then explores the importance of the marketing mix components and pricing strategies. Furthermore, it analyzes the role of the promotional mix, including planning and advertising campaigns. The assignment concludes by assessing the significance of market research for effective product or service development and implementation of marketing plans. Overall, the report provides a comprehensive overview of marketing strategies and their application in the hospitality sector.
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Marketing in
hospitality
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concepts of marketing for service industry..........................................................................1
1.2 Influence of marketing environment on industry..................................................................3
1.3 Relevance of consumer markets............................................................................................4
1.4 Rationale for developing market segments...........................................................................5
TASK 2............................................................................................................................................6
2.1 Importance of marketing mix components...........................................................................6
2.2 Pricing strategies and policies related to industry.................................................................8
TASK 3............................................................................................................................................9
3.1 Role of promotional mix.......................................................................................................9
3.2 Planning and advertising campaign for operational department of services industry..........9
TASK 4..........................................................................................................................................10
4.1 Relevance of marketing research for an effective product or service.................................10
4.2 Market research for specific goods.....................................................................................11
4.3 Assessment of suitable media for promoting selected product...........................................13
4.4 Implementation of marketing plan......................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
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INTRODUCTION
Marketing is a term which shows the exchange relationships between seller and purchaser
at marketplace for creating a positive connection with customers. In fact, it consist of numerous
of impressive methods for promoting goods or services across international boundaries for
seeking attention of domestic as well as foreign clients (Atwal and Williams, 2012). Basically, it
helps an organization in attaining their set targets in a minimum duration by using various
promotional techniques such as; advertisement through newspapers, magazines, campaigning
and so on. Marriott hotel is consider as a luxury five star hotel in UK by having its branches in
numerous of countries for attaining maximum benefits. This organization is established by
billionaire whose name is John Christodoulou. Along with this, hotel Marriott is popular for its
luxury bed rooms with splendid interior and attract millions of visitors which resulted in success
or development of an organization. This assignment is going to classified into four different parts
for highlighting the promotional technique used by enterprise for expanding their business.
Initially, concepts of marketing in the eye of service industry will be described for understanding
the environment in order to utilized promotional tools for accomplishing overall merchandising
activities. Along with this, it also explains useful role of marketing and promotional mix in
hospitality industry because main objectives of this industry is to facilitate consumers in best
manner by fulfilling their wants or needs. Later on, significance of investigation team is also
outlined in this project for designing a research team in order to accumulate necessary
information used by organization while manufacturing particular goods or services. At last,
proper implementation of marketing activities are shown in this report.
TASK 1
1.1 Concepts of marketing for service industry
Marketing is an ongoing process which plays a major role in service industry because it
supports their leaders in meeting requirement of desired customers. In fact, maximum number of
goods or services fall in hospitality industry for example; restaurant, dinning, accommodation,
leisure activities and so on (Ayeh and et. al., 2012). Marriott hotel is famous for its qualitative
products or services with attractive themes in order to attract numerous of domestic and foreign
customers by satisfying their needs. Along with this, this association also use customer retention
technique for increasing effectiveness of their services. Basically, retention of consumers is an
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appropriate process which is used by marketing department of an organization for encouraging
society towards experiencing the services provided by Marriott hotel.
In other words, marketing in hospitality industry implemented a protocol for creating a
understanding relationships with customers, interacting and distributing value to consumers in
that way which become beneficial for enterprise as well as various shareholder (Bowie and
Buttle, 2011). On contrary to this, merchandising in service sector is totally different from other
industry because it deals with tangible items such as ; bed, food, ambience or services and so on.
After understanding the concept of marketing, referred association uses many more promotional
techniques for encouraging their services at European marketplace by facilitating their customers
demands. However, main focus of Marriott hotel is one identifying their consumers
requirements, desires or wants for designing policies or strategies accordingly. After considering
this, managers of a company is focussing on maximization of revenue and trying to earn
maximum return on their initial investment for establishing their goodwill at marketplace
(Bowie and et. al., 2016). Therefore, it has been understood that integrated marketing is a joint
exertion of entire staff members within the enterprise.
Furthermore, it has been analysed that concept of marketing is defined in number of ways
for understanding their benefits and drawbacks in hospitality industry which are explained as
follows:-
Benefits of effective strategies of marketing is given as follows:-
Promotion of goods or services across international marketplace for gaining trust or
loyalty of foreign clients.
Encouraging employees towards making friendly relations with customers.
Efforts for seeking attention of millions of clients toward their services (Wearne and
Morrison, 2013).
Develop the employees personally and occupationally by enforcing them towards
performing marketing activities in an efficient manner.
Drawbacks are highlighted below:-
Sometimes salesmen trying to force the clients by irritating them with again and again.
Inaccurate information creates confusion (Chan and Guillet, 2011).
Lack of confusion between employees and employers while accomplishing promotional
activities.
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All these above terms shows advantageous of marketing and its certain drawbacks which
sometime act as a barriers in development path of an enterprise. Therefore, at the end it has been
identified that marketing is an appropriate term which helps Marriott hotel in maximizing their
profit by promoting goods or services offered by them as well as making plans or strategies for
highlighting impressive quality (Cooper, 2013). Hence, this concept is very beneficial term in
attaining set objectives or goals.
1.2 Influence of marketing environment on industry
Marketing surrounding plays a very vital role in growth of Marriott hotel because all the
factors are interlinked with each other and always fluctuated due to alteration in one elements.
Micro and macro environment have a greater impact on a hospitality industry because customers
are coming from across the world and Marriott hotel is having its branches in number of
countries (Hyun, 2010). Therefore, managers of an enterprise needs to design their policies or
promotional strategies according to changes in internal or extrinsic factors. Thus, influence of
marketing environment is shows as follows:-
Micro environment:- Various elements are there which falls under this category is stated
below:- Consumers:- Marriott hotel has to ensure that products or services which was designing
by them must be according to choice of customers as well as they need to consider recent
trends in order to obtain attention of clients (Yoo, Lee and Bai, 2011). However,
customers are seen as a end user as products are finally consumed by them only.
Therefore, it is essential for managerial team to decorate or design rooms of their hotel
as per customers choice, preferences and taste so that they get attracted towards interior
of hotel (Korstanje and Olsen, 2011). In hospitality industry consumers are seen as most
indispensable part and they helps in development of an organization. Suppliers:- Crude materials, other settlement like transportation offices to their clients
and different administrations are given by providers just . Subsequently, lodging industry
requires to keep up positive associations with accomplices or providers since it impact
their assembling division in different way. For instance; lodgings dependably give
nourishment benefits in complimentary and if there is non attendance of vegetables or
different fixings then kitchen division can't cook delicious sustenance which
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straightforwardly impact the picture of Marriott inn (Morosan, Bowen and Atwood,
2014).
Employees:- All the activities, roles and responsibilities are performed by human
resource because they are indispensable asset for every industry. Therefore fulfilment of
employees demand is necessary for enterprise in order to accomplish assigned task in a
defined time period by maintaining quality (Lee and et. al., 2010).
Macro environment:- Factors that are not controlled or regulated by organization are fall
under this category which are highlighted as follows:- Political:- Number of norms, beliefs, acts, rules and regulations are enacted by regulatory
bodies for creating a peaceful environment in UK (Thakran and Verma, 2013). Along
with this, they are also trying to eradicate discrimination from marketplace and focussing
on protecting buyers or sellers from any exploitation because it influence image of
Marriott hotel. Legal:- Laws are designed by legislation bodies for creating equality among European
market between various competitors. Their main focus is to eliminate issues , barriers or
problems which is faced by hospitality industry. Economical:- Development of economy is fully depend upon success of hospitality
industry because if employees or customers both are satisfied as well as company is
succeeded in creating maximum employment opportunities then it automatically enhance
the economy of a nation (Leung and et. al., 2013). Apart from this, if there is any change
in exchange rate or currency rate then it may influence success of an organization by
affecting international deals.
Social :- Taste, preferences and choices of consumers always fluctuate or changes due to
emergence of various competitors that are coming with innovative ideas of designing
hotels or facilitating customers in hospitality industry (Li and Wang2010).
Therefore, at the end it has been understood that marketing environment have a major
influence on development or growth of hospitality industry due to their roles and responsibilities
towards success of an enterprise.
1.3 Relevance of consumer markets
In hospitality industry customers are seen as necessary elements because all the products
or services are finally consumed by them only and as they are also known as a end user. It has
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been analysed that major objective of marketing is to anticipate, satisfied and meet the
requirements of customers by identifying recent trends at marketplace (Line and Runyan, 2012).
Marriott hotel is focusing on their desired clients and always designed services or rooms
according to likes or dislikes of society in order to satisfied them with best or qualitative
products. An individuals who is purchasing hospitality services for their personal use or
satisfaction are known as end users and this team is denoted as customer market. Thus, it has
been identified that there are number of elements which have a greater influence on buying
decisions of domestic as well as foreign customers. But sometimes managers of Marriott hotel
failed in remembering those elements which may affects judgement of different consumers.
However, marketing department of a refereed association consider the scenario of a
Starbucks in which they are facing an issues while establishing a branch in a china because
Chinese society is not welcoming the company (McCabe, 2010). Along with this people living
there thought that emergence of new companies resulted in introduction of western culture which
may influence their national tradition. In fact these circumstances arise only due to lack of
understanding between countries . Therefore it has been understood that if an organization get
succeeded in making better understanding with customers then these kinds of problems might be
erased or minimized. Thus, marketing department of Marriott hotel needs to pay full attention on
getting updated about consumer desires in order to make effective or appropriate promotional
strategy by satisfying their clients (Minazzi, 2015).
Apart from this, culture of customers is a part of hotel industry that emphasizes on
sociological and psychological influence of purchaser and spending large amount for
understanding behaviour of customers. Managers of Marriott hotel trying to maintain long term
relationship with their loyal clients by gaining their trust. Therefore for maintaining this an
enterprise is going to use value chain strategy for satisfying customers needs and desires.
According to this schemes operational department of an enterprise is liable for performing
specific task for delivering valuable products to their consumers.
1.4 Rationale for developing market segments
Before emerging into any developed market hospitality industry needs to segment
according to demands or needs of customers by targetting their audience in much more efficient
way. Basically, segmentation of market is a word which means classification of market into
smaller groups by analysing similarities in customers choices or preferences in order to eliminate
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problems which may arise at the time performing merchandising activities (Mok, Sparks and
Kadampully, 2013). Along with these, after assessing the requirement of different visitor
managers of Marriott hotel needs to design their promotional strategies as well as they are also
focussing on customers demand of each and every groups. Additionally , market segmentation
aids in remembering specific choice of members which helps while designing process.
(Source:- Market Segmentation, 2017 )
TASK 2
2.1 Importance of marketing mix components
Cluster of 7 P'S is known as marketing mix whose main objective is to understand the
taste, preferences, and choices of entire community before designing any food items. Marketing
in hospitality is different from other industries because another sectors offers tangible or
intangible goods but service sector offers only intangible goods. Products and services of
Marriott hotel are highly perishable or indivisible in nature. Components of merchandising mix
plays a very vital role in attaining their set objectives by serving customers in a minimum
duration with the help of effective strategies (Nunkoo, Gursoy and Ramkissoon, 2013). Elements
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Illustration 1: Market Segmentation
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of mix consist of ; place, promotion, price, products, process, physical evidence, people. All
these components are necessary for understanding role of marketing mix as well as its
importance. Thus, significance of various component are described as follows:- Price:- Cost of items or services which is offered by Marriott hotel is totally depend upon
entire value which was incurred while designing that product for attaining maximum
return on investment. Thus, it has been understood that price of goods is very
indispensable component because profit of an enterprise is indirectly depend upon this
only. Promotion:- Various techniques are available for seeking the attention of millions of
customers with the use of different methods of promotion for example; advertisement
through newspapers, TV , radio, magazines, social sites or so on . Thus, number of tools
are available which is adopted by marketing department for attracting domestic as well as
foreign customers (Šerić, Gil-Saura and Ruiz-Molina, 2014). Products:- Profit of a company is based on impressive or qualitative items which is
offered by Marriott hotel for obtaining attention of overall society. In fact innovative
products is a key to success because customers select Marriott due to their impressive
strategies, food items, interior, themes, tasty or delicious dishes and many more things
which make products more significant. Process:- Distribution channel needs to be appropriate for delivering products at a right
place in a minimum duration to a correct clients. In hospitality industry, managers need to
ensure that right room is allot to correct clients. Physical evidence:- Services which is offered by Marriott hotel is intangible in nature
and feedback which is acquired by organization is also intangible. Understanding of
satisfaction level of consumers is also necessary (Sigala Christou and Gretzel, 2012). People:- Human resource are seen as a indispensable asset for entire association because
marketing activities are managed by them only.
Place:- Locations is also one of necessary component of marketing mix because it helps
in maximizing sales. If an organization is located at convenient place then most of the
customers is like this prefer first.
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2.2 Pricing strategies and policies related to industry
As per pricing approach it is based on total cost, demand or requirement of purchaser and
either it may depend on competition level. It means in hospitality industry, managers decide their
price these three elements for gaining competitive advantage. Number of hotels are emerges in
service sector and giving tough competition to Marriott hotel. For example; Hilton hotel is also
one of the popular organization by having numerous of branches with qualitative items in
European marketplace (Sihala, Christou and Gretzel,2012). Therefore, managers of Marriott are
having full stressed on them while making deciding price of their goods or services offered by
them. Thus, several policies are designed by organization related with pricing of an enterprise
which is described as follows:- Demand and supply:- In Marriott hotel they have number of rooms like around 300 in
which few of them are luxurious and some are deluxe or many more. It means if demand
of luxurious of rooms get increases then price is also get maximized to earn maximum
benefits and if demand of particular room is low then cost may also affected by it or
minimized. Thus , price of products are fluctuated due to increase or decrease in demand
or supply. Competition:- Rivalries increases at marketplace due to demand of hospitality increases
day by day because of rise in income level of a nation. Thus due to availability of
competitors, organization have to focussed on their price and need to charge low price as
compare to their competitors (Ariffin and Maghzi, 2012). Total cost:- Main objective of hotel is to earn maximum return on their investment. Thus
before deciding cost of a products they need to go through overall price which incurred
while designing particular package. For example; in hotel industry an enterprise offers
deluxe room consist of air conditioner, hot or cold 24 hours running water, wi-fi
connection, television facilities with breakfast and dinner for one day. Thus they need to
charge according to this package (Tresidder and Hirst, 2012).
Monopolistic market:- They need to analyse market current situation before making
plans or policies of price or before deciding cost of any packages.
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TASK 3
3.1 Role of promotional mix
Promotional mix plays a very vital role in hospitality industry because it helps in
encouraging goods or services across international boundaries in seconds. Marriott hotels uses
effective techniques or methods of encouraging their services which are detailed as follows:- Transfers products to customers:- Initial role of organization is to distribute goods from
one place to another by transferring it in proper manner. Along with this they are
responsible for making policies to delivered goods or services to right customers at a
right place. Maximization in revenue:- By promoting policies, reasonable packages of Marriott
hotel, food items and special services an organization may able to generate maximum
revenue in a minimum duration by satisfying customers demands. Trying to satisfied consumers:- Consumers are end users which means final
consumption is done by them only. Therefore, fulfilment of their requirement is a key
role or essential duty of a company (Tresidder, 2015). Campaigning:- Sometime marketing manager of an enterprise conduct promotional
campaign for encouraging their products across number of geographical areas or all over
the world. It helps in gaining maximum benefits. Circulated in various regions:- Major responsibility of promotional team is to conduct
encouragement sessions in every area and provides chances to every individuals
whosoever is interested.
Advertisement techniques:- Apart from all these above one of the major obligation of
promotional department is to highlight various effective methods for example;
magazines, newspapers, magazines and social sites for seeking minds of various
customers.
Apart from this one of the major role of promotional team is to manipulate minds of
entire public by showing numerous of advantage sand benefits.
3.2 Planning and advertising campaign for operational department of services industry
Operational department consist of number of responsibility whose main objective is to
manage or organize all the activities in an appropriate manner for accomplishing it in a minimum
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duration. In fact , systematic approach is requires for impressive marketing strategy for attaining
set objectives or goals. Marriott hotel is going to expand their business in other geographical area
for generating more revenue and trying to become king of hospitality industry (Tsiotsou and
Goldsmith, 2012). Thus for preparing an promotional campaign for new branch of a Marriott
hotel certain well structured, experienced and tested technique of advertising campaign will be
utilized. Along with this they need to take extra care of because if existing strategies may failed
then modification in them will work . Thus, proper steps should be taken before conducting
campaign for new branch which is highlighted below:- Capturing the transportation sector:- With the help of this sector an organization may
able to offers vehicles facilities to their customers. Covering the local arena:- Try to build stronghold in local regions because it is essential
to know your consumers as if you are not able to control localities then you might be
failed in manipulating foreign clients. Trying to adopt technology based advertising:- It has been analysed that almost 83.5 %
of hotel room bookings are executed by online services because customers are circulated
with modern equipments.
Gain advantages without compromising with profits:- It is essential for attaining
maximum benefits without suffering any problems.
Apart from all these covering of media is also one of the useful option because of modern
world (Wearne and Morrison, 2013).
TASK 4
4.1 Relevance of marketing research for an effective product or service
Marketing research is very important for the survival and expansion of business of
Marriott West Indian. It makes the corporation capable of improving the competitive behaviour
of their business and also minimises risks (Bowie and Buttle, 2011). Correct and planned market
researches would play an eminent role in understanding the services provided by the rival hotel
organisations. It also considered as a source of innovation towards presentation of new products
and services offerings and making modifications in the current ones. This is normally carried in
the hospitality industry by taking use of marketing information system which shows a major role
in gathering the information about the costing and various other aspects. In addition to that it also
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