An Analysis of Marketing Strategies and Essentials for Hilton Hotels

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This essay provides a comprehensive analysis of Hilton Hotels' marketing strategies and essentials. It begins with an introduction to marketing in the hospitality sector, emphasizing its importance in creating, promoting, and delivering customer satisfaction. The essay delves into the key roles and responsibilities of the marketing function within Hilton, exploring how these relate to the wider organizational context and the marketing environment. It analyzes the significance of interrelationships between marketing and other functions, such as food & beverage and room divisions. Furthermore, the essay critically examines the key elements of the marketing function, including research, strategy, planning, and tactics. A comparative analysis of Hilton Hotels and McDonald's using the 7 Ps of the marketing mix is presented, highlighting differences in product, price, place, promotion, people, physical evidence, and process. Finally, the essay concludes with the production of a basic marketing plan for Travelodge, demonstrating a strategic approach to meeting marketing objectives. The essay uses relevant references and examples to support its arguments, providing a thorough understanding of marketing in the hospitality industry, specifically within the context of Hilton Hotels.
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Hospitality Marketing
Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Presenting key roles and responsibilities of marketing function of Hilton............................1
Presenting how roles and responsibilities of marketing relate to wider organizational context. 2
Analysing the roles and responsibilities of marketing in the context of marketing environment
................................................................................................................................................3
Analysis the significance of interrelationships between marketing and other function.........4
Critically analysis the key element of marketing function.....................................................4
LO2..................................................................................................................................................5
Comparing the ways in which different hospitality organization by using Marketing mix...6
Evaluate different tactics applied by a Hilton........................................................................8
LO3..................................................................................................................................................9
Producing a marketing plan for Travelodge...........................................................................9
Producing coherent marketing plan........................................................................................9
Presenting a strategic marketing plan using 7 Ps of marketing ...........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Marketing essentials have their own importance in hospitality sector. It means creating,
promoting and delivering the best outcomes to their customers. In today's world, there are so
many new tactics which many hospitality industry apply in order to promote their business. The
chosen company for this report is Hilton Hotels. It is one of the largest global level hotel whose
headquarters is in United Kingdom. It operates more than 550 hotels and resort across six
continents. Hilton offer its best services to their customers which includes bars, resort, spa and
restaurant. Report present key roles and responsibilities of marketing functions and how they are
interrelate to wider the business at global level. By using 7 P's of marketing mix, report compare
two different hospitality industry and its process to achieve business objectives. Further project
produce a basic marketing plan that help to meet out marketing objectives.
LO1
Presenting key roles and responsibilities of marketing function of Hilton
Hilton is one of the leading hotel whose headquarters are in United Kingdom. It operates
its unit in more than 550 hotels in 85 different countries. A quoted company offers best variety of
products and services to their customers that includes resort, spa, restaurants and best variety of
room facilities. Due to its best service and products offering, Hilton is consider as one of the
leading hotel in UK (Bauer, 2018). The main function of marketing is to increases the sales of a
company that further help to maximizes the profit. There are various roles and responsibilities of
marketing function for Hilton and some of them are as follows:
Role & Responsibilities of
marketing function
How it executed in Hilton
Promotion By adapting variety of promotional tools Hilton can offered
variety of products to their customers.
Selling Using various promotional tools such as advertising social
marketing, Hilton let people know about their services.
Management information
system
Marketing team of Hilton collect information and then execute
them into a short period of time by using MIS into a working
area.
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Financing A good financing system of Hilton also helps to assign budget
to different department of a company so that it will help to
minimizing the operational cost and through marketing sales
can be maximizes and as a result profitability increases.
Presenting how roles and responsibilities of marketing relate to wider organizational context
Product management: This service means the administrative department in which a
manager of Hilton plays their basic duty that includes the reservation and assignment, controlling
related to main and guest reservation etc. their main responsibilities is to keep monitoring the
entire staff whether they work in an efficient way. By keep monitoring the activities of staff will
help to wider up the organization.
Human resource management: HRM in hospitality industry recruit the best candidate
and also provide training session to their new employees so that they will help to achieve
company's goals and objectives (Waite and Perez Vega, 2018). In addition to this, they also keep
monitoring and evaluating the performance of entire staff and if find any mis-conduct then they
sudden take any strict action against them. They also develop different strategies as per the
market trend, sales and also target customers.
Purchasing and Accounting: This department of Hilton finalize the budget of a
company and also determine the cash inflows and outflows during a particular time period.
Accounting department also provides an appropriate budget to all department of Hilton for their
expenses (Hugos, 2018). As marketing department, help to analysis the needs of their customer
and then it produces those strategies in order to enhance the customer base.
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Illustration 1: Organizational chart
(Source: Organization Chart, 2018)
Analysing the roles and responsibilities of marketing in the context of marketing environment
Role Responsibilities How they relate to each other or to a marketing
environment
Develop
Promotional tools
Sales manager This responsibility is directly relates to a social
factor such as, the sales manager of Hilton
develop some marketing promotional tool and
further target different customer but they did
not know the sudden shifting behaviours of
people and as a result this social factor affect
the working environment.
Develop strategies
and technologies
to meet out goals
of a company
Research and
Development department
Research and development department main
responsibility is to develop new strategy and
policies for the welfare of a company. But this
direct affect from the political factor of a
country (Hugos, 2018). Such that as the
country's political situation is unstable then it
directly affect policies and services which are
offered to their customers. While on the other
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side it may also affect environmental factor too
because of inflation and recession.
HR of Hilton also have threat related to their
rivals because of sudden fluctuation in political
situation of a country, there may be chances of
increases/ decreases the rates of services
offered to a customers.
To use new digital
services into their
working area.
Technical department of
Hilton
This is the responsibility of Manager of
technical department in Hilton and it is
directly influence the technological factor such
as today every company and each people uses
digital technologies. So it is quite necessary for
the manager of Hilton to cope up with different
technologies and implement those into
working area.
Analysis the significance of interrelationships between marketing and other function
Marketing and Food & Beverages: These are interrelated with each other like if Hilton
provides best food services to their customers then it automatically raises their customer base. To
enhance their restaurant services, Hilton uses buzz marketing, social marketing, advertising in
order to let their customer know about new arrival in their resort or restaurant. It has been
noticed that creating online advertisement will directly attract their customers without any extra
efforts. Therefore, marketing and food & beverages are interrelate with each other.
Marketing and Room division: They are interrelated with marketing such that as the
Research and Development department of Hilton provides different ideas to their production
department then they will make their efforts to execute them while on the other side, marketing
team develop new strategy in order to let people know about new products (Uncles, 2018). In
this way, they all are interrelate with each other and try to fulfil the goals and objectives of a
company.
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Critically analysis the key element of marketing function
The key elements of marketing function are as follows:
Research: It is consider as one of the most important key element of marketing function.
Without any successful market research, business in not possible to start (Key element of
Marketing function, 2018). Therefore it is consider as a one of the most effective key element of
marketing function. This function is directly relate to HR department such that make policies and
also analyses the needs of their customer so that it will help them to execute further betterment.
Strategy: it is the second step under which after collecting entire data, now it comes to
analyses the strength and weakness of those collected information. This element is basically
provide an idea or strategy which will need to be implemented by a company (Pike, 2015). In
this marketing function, sales and marketing department of a company will help to provide best
strategy and manager provide different strategies in order to implement those into working area.
Planning: under this third element, planning should be done in order to attract wide
range of customers for the new services offered by Hilton. This basically involves financial
planning, communication, distribution and forecasting of sales. This key element is directly
interrelate with finance department of a company because this department assign budget to all
department, therefore planning is also done with a prescribed time.
Tactics: it is the forth key element which provide the method to implement the action.
These are the small and short term plans which are apply in Hilton in order to attract wide range
of customers such as by using buy one get one free strategy that help to enhance customer base.
This element is linked with marketing department of a company which helps to provide new
ideas after analysing the needs of their customers.
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LO2
Comparing the ways in which different hospitality organization by using Marketing mix
Element of (7Ps) Company 1: McDonald Company 2: Hilton Hotel
Product McDonald provide best
services related to food and
beverages such as Hamburger
and Sandwiches, chicken,
fishes, snacks and slides,
Provide services such as
meeting, banqueting and
wedding facility, special event
facility, swimming pools,
resort and spa, gift shops
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Illustration 2: Marketing Mix
(Source: Marketing Mix, 2018)
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desserts, shakes, McCafe etc. restaurant and lounges, food
and beverages. Main product is
hotel rooms in which
customers will stay.
Price The pricing technique for
McDonald is value pricing,
cost plus pricing, price
discrimination and loss leader
(7P's of Marketing mix for
Hilton, 2018). Price is slightly
vary between other restaurant.
The price range varies with the
value added services as extra
wifi, parking facility, food
with a reasonable price.
Premium prices can be
calculates in the case of
customers uses spa, breakfast
and dynamism services.
Place It is mainly located at prime
locations, almost in big cities
or near malls.
Hilton have more than 74500
rooms which operate their
services in more than 85
countries across six continents
(Larson and Draper, 2015).
Promotion Its target customer are children
and main promotional tool is
pamphlets and banners.
Another strategy is lucky
promotion strategy that is very
famous (Khan, 2014).
The promotional strategy for
Hilton is that it has
collaborated with payment
banks and different restaurant
that helps to reach wide range
of customers. Premium
magazine is another tool which
Hilton use to take reviews of
their customer.
People Target people are children and
provide fast and friendly
services and comfort
environment.
Target peoples are directly
related to business.
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Physical Evidence Staff members, location &
appearance, building
maintenance is the physical
evidence for McDonald.
Hotel booking chain and
website, building is the
physical evidence for Hilton.
Process New method of food
packaging and distribution,
training to licenses and deliver
fast services to their customers
are the process of McDonald
(Babin and Zikmund, 2015).
Hilton management system is
consider as one the best
process among all. The flow of
service to the customer of
Hilton is consistent.
Evaluate different tactics applied by a Hilton
There are so many tactics which Hilton can be apply in marketing to achieve their
business objectives and some of them are as follows:
Promotions : It is the best plan of action that help to achieve company's overall goals
and objectives. By using different promotional tools and activities, Hilton can easily draw
attention of many customers. Recently the hotel uses social advertising and advertisement related
to hoarding etc. by using social advertisement as a promotional tool which further help to take
reviews of their customers and after taking feedback form them, Hilton adopt new strategy as per
customer satisfaction (Malhotra, 2015). Hilton also uses the strategy of combo offer that
includes variety of offers such that stay for 5 days then for 1 day there will be no food charges
taken. This type of strategy will help to attract wide range of customers.
Enhancing distribution system and connect with online travel agencies: Marketing
team plays important role in marketing. Such that Hilton operates its unit in more than 85
countries which shows that it has a best range of distribution system. Online travel agencies are
also consider an important distribution channel which further help to generate more income for
the welfare of a company. By using travel agencies that help to book many booking for hotel and
as a result, it will help to raise the profit of a company and achieve all its goals and objectives
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(Huang and Sarigöllü, 2014). Furthermore, a presence on Global Distribution System will also
make sure that the hotel is available for travel agent so that customer will book room for them.
LO3
Producing a marketing plan for Travelodge
Enclosed in Poster
Producing coherent marketing plan
Marketing plan is an outline that provides a brief introduction to entire business activity
which are involving into a plan to achieve the specified marketing objectives. Marketing plan
generally starts with the identification of customer needs by generating well return for the
company.
Executive summary: This marketing plan is based upon the Travelodge who is
launching a premium economy room called as “super rooms” in UK because it wants to push out
their services to professionals. It is hospitality industry and to access its internal environment,
SWOT analysis is used and to evaluate its external analysis, PESTLE analysis is used which is
also used to determine the competitive analysis. As Travelodge is facing some issues related to
digital technologies, it will also provide some recommendation in order to improve those.
Company overview: Travelodge is one the hospitality organization which provide best
services to their customers. It recently wants to open new super rooms to look professional which
includes modern residential décor and more seating area. In order to let people know about this
new services, company to advertise through digital, social marketing promotion tool.
Marketing situation analysis:
Internal analysis: To analyses the internal environment, SWOT analysis is done which
help to determine the strength, weakness, opportunities and threats which are mentioned below:
Strength Weaknesses
Have strong customers base.
Provide super room to their customer at
cheap rates.
Network and market share is so strong.
Pricing strategy is low because they
served as per the needs of their
Low brand recognition
company did not uses the digital
technologies (Fan, Lau and Zhao,
2015).
Seasonality of earning which means
that in off season the company's earning
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customers not to earn. is not so strong.
Opportunities Threats
By launching new premium economy
class rooms will help to convert the
hotel into 5 star hotel.
By using different promotional tool and
establishing new units at global level
will help to sustain its brand image in
market.
Faces tough competition with its rival
companies such as Hilton.
As the political instability of country
will directly affect company's financial
situation.
External Analysis: To determine the external environment, PESTLE analysis is used
which help to determine the its political, social, environmental, economical, legal and
technological factors and these are mentioned below:
Political factor Economical factors
Political factors directly influence the
tourist and business travellers such as
ongoing political situation of UK may
discourage visitors to visit those places
due to their safety concern.
Sudden terrorist attack and instability
of political system of UK will also
discourage tourist to visit and as a
result it will decreases the profit of
Travelodge (Stead and Hastings, 2018).
Recession and inflation will directly
affect the company's overall financial
situation such as increases in prices of
the offered products due to economical
instability may cause negative impact
upon company's situation.
Social Factors Technological factors
Shifting customer preference towards a
travelling will also creates negative
impact upon Travelodge. Such as when
user find more cheap hotel then they
Travelodge has to cope up with new
and latest digital technologies
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suddenly shift from old ones.
Legal Factors Environmental Factors
Travel ban is also imposed on some
countries and there are so many rules
and regulation which Travelodge has to
comply wit it.
Travelodge has to take initiatives
related to sustainability act.
Marketing Strategies:
Segmentation: Travelodge has to segment on the basis of demographic, psycho- graphic
and geographic. As it wants to launch new super rooms which has to look different from
normal room and it will help to attract customers. A quoted company redevelop its entire
building by adding new super room with better facility for their customer.
Targeting: Travelodge can target business travellers and families. It is a process which
helps to maximizes profit for the company (Saks and Gruman, 2014). As It target to
satisfy their customers so that is why, it launch its super room for their customers with
more facilities.
Positioning: It is a technique which is used to make an image of the company in the mid
of their target customers which is quite differ from their rivals. Travelodge wants to look
professional in hospitality industry that is why they launch new super rooms at cheap
rates (Hanssens and et.al., 2014).
Budget for Travelodge:
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Presenting a strategic marketing plan using 7 Ps of marketing
Business objectives Marketing
mix and
strategy
Tactics Monitoring and
evaluation
To increases the
customer base.
To Improve the cross
functional
communication
To make brand image
in market.
To work at global level
Price Travelodge offer
seasonal pricing strategy
By monitoring
the entire
working
system will
help to know
that the work
is run in an
effective way.
Taking
feedback is
the another
strategy which
help to
analysing the
work
progress.
Keep follow
up s also
another
strategy which
manager of
Travelodge
can used for
marketing
control.
Place It is in United Kingdom
Product Offer super rooms or
premium economy rooms
with all extra facility
such as mirror, sitting
area, Modo Mio coffee.
People Staff members, families
and business travellers
Promotion Uses digital technologies
such as social
advertisement and
Television advertisement
(Bahadir, Bharadwaj and
Srivastava, 2015).
Physical
evidence
Building, social websites.
Process Distribution system,
service flow and booking
are help to maximizes
revenue.
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CONCLUSION
By summing up above report, it has been concluded that marketing essentials plays an
important role. Marketing functions have their own roles and responsibilities which help to
maximizes the profit of Hilton and by using 7 Ps of marketing mix report help to achieve the
organizational goals by differentiating McDonald and Hilton. Further report also concluded that
by using marketing plan for Travelodge, which help to achieve company's overall objectives and
helps to maximizes the profit for a company.
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