Marketing in Hospitality: Strategies and Analysis Report

This report provides a comprehensive analysis of marketing strategies within the hospitality industry, focusing on the application of marketing principles to the hotel sector, using Hilton as a case study. It explores key concepts such as the marketing mix (product, price, place, promotion), the impact of the marketing environment, and the relevance of consumer markets. The report delves into market segmentation, pricing strategies, and their importance in the industry. It also discusses the rationale for developing different market segments and the implementation of marketing plans. Furthermore, it examines the importance of integrated marketing and service-oriented attitudes within the hospitality context. The report concludes with an overview of how these strategies can be applied to achieve business objectives and satisfy customer needs in a competitive market.

MARKETING IN HOSPITALITY
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1.1 Discussing the concept of marketing for a relevant services industry..................................3
1.2 The impact of the marketing environment on the industry...................................................4
1.3 The relevance of consumer markets in the industry..............................................................4
1.4 The rationale for developing different market segments......................................................5
2.1 The importance of components of the marketing mix to the industry..................................5
2.2 Pricing strategies and policies in relation to the industry.....................................................6
4.4 The implementation of the marketing plan for an appropriate product or service................8
CONCLUSION ..............................................................................................................................9
REFERENCES .............................................................................................................................10
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Illustration Index
Illustration 1: Demand and supply curve.........................................................................................9
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INTRODUCTION
Marketing leads to play an important role with respect to accomplishing success. Similar
to this, marketing also helps in playing a significant role to drive hospitality industry. There are
various concepts of marketing in hospitality industry sectors. Furthermore, this report defines the
role of marketing mix which considers all 4p's as price, place, promotion and product.
Marketing plan is essential in-service sector because it provides information regarding
putting efforts by company in the market. To implement these plans are the complex part which
consider various phases as define objectives, then target the customers and markets or
monitoring (Walker and Walker, 2016). Pricing strategies also plays a crucial role in business.
Hotel Hilton is using demand-oriented pricing strategy and competitive pricing strategy. In
addition to this, there are more various strategies which are also beneficial for service industries
to determine the price of products and services.
1.1 Concept of marketing for relevant services industry
Marketing is known as the set of protocol which helps in building a relationship with
customers, communication and delivering value to customers in such a way which can benefit
the firm and its stakeholders. Marketing in hospitality is different as it has to deal with different
tangibles object such as bed, service, food and ambience.
With respect to use of tools of marketing in an effective manner, the profitability of the
firm and requirement of customers should be integrated. Hilton hotel is focusing on fulfilling
needs and wants of their customers. In regard to this they can easily enhance revenue of the firm.
When company consider the needs of customers then it should focus in enhancing income of the
firm (Jauhari and Bharwani, 2017). Hence, it can be said that integrated marketing is known as
combined effort of all personnel within the firm.
Before, focusing on marketing concept it is essential for the firm to analyse the persisting
marketing culture in the market and focus in unique concept of integrated marketing. Hilton
hotel uses the integrated marketing concept for carrying out their marketing campaign. It clearly
depicts that the firm aims to generate high revenue through placing its guest needs on the top
priority and accomplish significant growth in respect of income through the use of this concept.
Success of any company is also depended on service-oriented attitude of all their
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employees which is very important in the service sector (Kandampully, Zhang and Bilgihan,
2015).
It is critically analyses that for companies it is important to understand marketing concept
before implementing within the firm. There are different types of concept such as marketing
concept, product concept etc. I analyses that company can adopt marketing concept which is
effective in order to sale product and services in an effective manner. At the time when firm
started selling product they typically used to set up separate marketing department whose role is
to satisfy needs and wants of customers (Goworek, McGoldrick and McGoldrick, 2015).
1.2 Impact of the marketing environment on the industry
Marketing environment is known as a crucial player which helps in deciding success and
failure of a marketing plan. Hilton hotel operates its business in both macro and
microenvironment which leads to change on a constant rate. This all changes lead to create
opportunities and threats for the business. Hence it is suggested that management team of Hilton
hotel can closely analyse these factors before making decisions related to marketing factor.
It is important to coordinate with supplier, arrange finances, and analyse the competitors
to attract customers as some essential factors in the firm which assist in execution of business
operations of a firm (Ma, Huang and Yang, 2019).
Through analysing demographic such as estimating population, size, structure,
occupation and gender ratio is required to be done at the first step which help in detecting price
competitions.
It is critically analysed that concentrating on monetary variables like extra cash, current
loan cost, GDP, and utilization design is additionally critical as it specifically influences the
business activities. Political elements like duty approaches, licenses, strength of the government
ought to be considered as working as per the laws and control might be an extreme undertaking
for the association (Kim, Vogt and Knutson, 2015). Mechanical variables like new item,
applications, programming overhauls ought to be check in a consistent interim of time. Social
variables like ways of life of individuals, family estimate, limit of individuals, and mindfulness
among individuals must be engaged so as to build up a powerful advertising procedure for the
Hilton hotel.
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1.3 Relevance of consumer markets in the industry
The point of showcasing for Hotel Hilton is to foresee, address and fulfil issues of clients
and thusly it is fundamental for hospitality advertisers to recognize their objective clients and
their purchasing concept (Ma, Huang and Yang, 2018). The people who purchase cordiality
benefit for their work force usage are named as end clients of the administration and this
gathering is named as customer advertise. There are different elements that impact the buying
choice of end customer and commonly associations’ bomb in perceiving these components and
how these elements can impact the purchasing choices of the shopper showcase (Radojevic,
Stanisic and Stanic, 2015).
The advertising group at Hotel Hilton can survey the contextual analysis of Starbucks which
confronted an issue in building up a chain in China, as Chinese individuals did not welcome
them. They felt that the nearness of such organizations is an indication of expanding impact of
Western culture in their nation. This circumstance emerges because of the absence of
comprehension by the organization of the Chinese custom. In the event that associations keep a
superior comprehension of present and future needs of their shoppers these circumstances can be
effectively maintained a strategic distance from (Bowie, Buttle and Mariussen, 2016). In this
way, for the advertising group in Sheraton; understanding shopper market will help in making
powerful promoting getting ready for benefit industry
1.4 Rationale for developing different market segments
Market segmentation is the process of sectioning market into small portions that have
identical requirements and features. Hotel Hilton has various product line and product ranges
which contain numerous facilities, accommodations, rewards and online services. The cost of
accommodation is varied upon location. There may be differences between the costs of hotels as
the price of one night per individual from the hotel which is locating in other area. It allows
hospitality industries to find out various groups into geographical location which will also assist
hotel in developing marketing plan and marketing mix to achieve success of business and
requirements of customers (Jones, Hillier and Comfort, 2016).
Segmentation also helps the company to differentiate products as per needs of different
forms of consumers. Apart from this, it also enables the hotel Hilton to modify cost of the
product on basis of different time period. Market segmentation can be done by developing proper
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marketing strategy. Hospitality industries will gain success by developing proper and effective
marketing strategy.
Market segmentation is a strategy of market planning. It is the process of dividing the
entire market into sub division with similar requirements. It is essential to create marketing
activities, generate savings, proper allocation of budget, and overcome the negative effect of
external factors and to focus on achieving the goals of the Hilton hotel. It can be categorized into
three different factors as behavioral, psycho graphic and profile (Leung, Bai and Stahura, 2015).
Behavioral includes usage, purchase occasion and advantages sought while psycho graphic
consider lifestyle and personality of customers. In addition to this, demographic, social and
economic factors are the main components of profile of the Hilton hotel.
It is critically analyzed that there are different types of market segmentation which divide
the market into a potential customer in various groups and segmentation. Hilton hotel can target
its customers based on products and services which is offered to them (Bahl and Chandra, 2018).
I analyzed that Hilton Hotel is selling product and services to customers which are unique
and luxury based. Along with this, they are also delivering services to customers of all ages.
Hence, it can target market based on demographic segmentation (Rahmani, Emamisaleh and
Yadegari, 2015). It is simplest way through which firm can easily target customers based on
income, age, religion etc.
2.1 Importance of components of the marketing mix to the industry
Products: There are different types of services that are delivered by Hilton hotel. They have
collaboration with various airlines, rental cars, leisure segments, etc. further all services are
maintained by customer’s relations with the help of satisfaction index and feedbacks. There are
frequently take suggestions from the employees as well so that they are able to determine the
areas in which improvement can be made (Ali, Amin and Cobanoglu, 2016). Workers have
direct interaction with customers and also have proper understanding about problems that are
faced by them. As per the findings made, regular improvements are made.
Price: Hilton being an executive services provider, the customers who are targeted are exclusive
segment of the society. Each of the services delivered by Hilton group services are for specific
purpose. Cited firm deliver their services at high price and with increase in price, they also
maintain the quality. This way, it is identified that they fail in providing all people with similar
type of services (Tsai, Dev and Chintagunta, 2015). The target audience set by people is of high
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class and with the price that they take; it does maintain quality and meets satisfaction level of
customers in an appropriate manner. It includes innovative discounts such as off season sales,
festival or exchange offers and discount sales in shopping malls.
Place: It represents area and location where company is situated and product can be bought. It is
also considered as distribution channel which may include physical channels and virtual
channels. Physical distribution includes the mode of transporting of goods from producer to
consumers by Hilton hotel (Lanz and Carmichael, 2015). It may consider other factors as
storage, inventory control and warehousing. Channels of distribution are the ways by which
ownership of a product has transferred to consumers. It has various kinds such as distributor,
wholesalers and retailers or super market.
Promotion: It may be in different forms such as advertising, personal selling, sales promotion,
public relations and viral advertisement. It refers to all resources of communication that are used
by marketer to promote their products and services in marketplace. Specifically it is considered
two different ways such as above the line and below the line. ATL includes advertising
techniques by using social media to boost their productivity (Walker and Walker, 2016). This
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Illustration 1: Marketing mix
(Source: Marketing mix, 2014)

strategy generally utilized the current traditional approach of media. For example BTL strategy
believes in unconventional resources as direct mail and so on. This is linked to non media
communication and advertising.
It is critically evaluated that marketing mix elements are effective enough in order to grab
attention of customers (Pavlou and Stewart, 2015). It consists of all essential core elements that
can help customers to understand about effectiveness of products and its usage. Furthermore, I
analyzed that at the time of marketing products and services of company it is important to
understand all different. For instance, company can understand requirements of customers and
modify them accordingly which help in grabbing attention of customers (Kotler and Armstrong,
2018).
2.2 Pricing strategies and policies in relation to the industry
Pricing strategies are based on cost, competition level and demand. As there are various
strategies and policies hence hotel Hilton is using demand-oriented pricing strategy and
competitive pricing strategy (Ma, Huang and Yang, 2019). Policies of hospitality industries are
based on the chain of demand and supply of product and services which includes changes in
price according to demand and supply norms.
These strategies are based on monitoring price factors of competitors. It is not restricted
to just matching price and undercutting rivals price (Ma, Huang and Yang, 2019). This strategy
described that what price should be charged to a product based on rivals pricing. When a price of
a product is set on the basis of what rivals are charging, is called as competitive pricing. It is
essential to study about the product life cycle before setting up a price because this cycle will
define the stage in which product is existing. In addition to this, demand oriented pricing uses the
demand level of customers to fixing the price (Tsai, Dev and Chintagunta, 2015). In which a plan
should be developed. This plan starts with the determination of consumer's capacity to pay for
the product. Price and demand are positively connected as price is high when demand is high and
price is low when demand is low. It can be understand by the following diagram:
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As per the above graph, it can be interpreting that demand and price are depended on
each other. The factors which are essential and responsible in demand-based pricing are cost of
production, competition, product quality and market conditions. Some techniques utilized by
company for demand-based pricing are odd even pricing, prestige, penetration, skimming and
price bundling (Radojevic, Stanisic and Stanic, 2015).
It is critically evaluated selection of the marketing strategies need to be done carefully as
it can directly affect the sales of the firm (Ali, Amin and Cobanoglu, 2016). At the time of
selection of pricing strategy, it is important to understand the requirements of customers and how
much they prefer product which help in setting the pricing strategy in an effective manner (Oak
and Patii, 2015).
It is critically analyses that, there are various more pricing strategies which can be used
by hospitality industries to fix the price of the product like cost plus pricing, marginal cost
pricing, price discrimination, tender pricing, target pricing, absorption cost pricing, value and
psychological pricing (Ali, Amin and Cobanoglu, 2016). Under the strategy of penetration, a
company put lower price to gain high sales volume. This is useful when a company is going to
launch a new product into a new market. While skimming strategy is based on the concept of
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Illustration 2: Demand and supply curve
(Source: Demand and supply curve, 2016)

high price and low volumes. It is appropriate for that product which have short term life cycle in
the market. Furthermore, tender pricing is based on contract awarded on tender base.
I analyzed that among all the pricing strategy company can focus on adopting skimming
pricing strategy. It is one of the effective strategies in which Hilton hotel can set a relatively high
initial price of the product firstly (Fellague and Bennafla, 2015). Then it lowers the price after
some time. It is effective in targeting a large number of customers and increase sales of the firm.
For instance, before adopting skimming price it is important for company to ensure that its
product is different from its competitor. It will help in increasing sales and earning high revenue.
4.4 The implementation of the marketing plan for an appropriate product or service
Marketing plan is a document which describes overall marketing efforts of a company.
This is the framework which outlines how hotel Hilton will implement their marketing strategy.
As there are various strategies like single, multi and total market strategy. Furthermore, it
considers cause marketing, relationship, offline, digital, scarcity and call to action marketing. It
is critically analyses that there are various phases tends to include as objectives, marketing
overview, landscape, SWOT analysis, specific aims, brand and promotional strategy or budget. It
is essential to communicate marketing plan with staff members and employees of an
organization (Jones, Hillier and Comfort, 2016).
Under this communication, supervisor is ensured about that all employees of the Hilton
hotel understood the objectives and plans of the company. If a leader of the business has great
communication skills then employees will share their skills and aptitude with others to
implement marketing plan. Aim should be clear and specific to achieve success. It is essential for
the company to monitor progress (Tsai, Dev and Chintagunta, 2015). It can be accomplished by
developing a set of questionnaires. This analysis helps the supervisor to identify the performance
level of different employees. They are capable to pick out one of the best activities which is
beneficial for the company to attain success.
The marketing plan includes following areas:
 Define objectives: First important thing in implementing the marketing plan is to define
the objectives of the company. Hilton hotel defined the objectives to their employees in
effective manner then it will be easy to achieve success.
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 Identify resources: Next step is to find out resources by which company will provide its
services to customers and promote their products. There are various techniques of market
advertising and promoting of Hilton hotel. Which source is appropriate as per the
requirements are essential to be identified. (Kim, Vogt and Knutson, 2015).
 Define target market and target customers: The main target of company is to provide
maximum satisfaction to their customers. Hotel Hilton is focusing on target customers to
increase sales volume and margin of profitability.
 Implement the plan: After identifying the best resources and target customers, next step
is to implement the marketing plan in actual. Hilton hotel focus on the demand level of
consumers. (Lanz and Carmichael, 2015).
 Monitor the plan: To analyze that marketing plan is successful or not, it is essential to
be monitored. It is done by taking feedback from the employees of Hilton hotel.
I analyzed that at the time of implementing the marketing plan it is important to ensure that
company conduct market research and understand requirement of customers (Yakubovskiy and
Briatko, 2016). On the basis of which it can easily implement marketing plan in successful
manner. Through conducting macro analysis, company need to understand condition of market
and current trends.
CONCLUSION
From the above report, it can be concluded that focusing on marketing concept it is
essential for the firm to analyse the persisting marketing culture in the market and focus in
unique concept of integrated marketing. Environment in which country operates its business lead
to play important role. Before carrying out marketing activity firm should know the way
customers can be targeted and gain opportunity for attracting large number of customers. Market
segmentation is the process of sectioning market into small portions that have identical
requirements and features. Segmentation also helps the company to differentiate products as per
needs of different forms of consumers. Further it is concluded that, promotion is of different
forms such as advertising, personal selling, sales promotion, public relations and viral
advertisement. It refers to all resources of communication that are used by marketer to promote
their products and services in marketplace. Marketing plan is a document which describes overall
marketing efforts of a company. Further, it is concluded that companies can use marketing mix
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