Marketing in Hospitality: A Report on the Hilton Hotel's Strategies

This report provides a comprehensive analysis of marketing strategies within the hospitality industry, with a specific focus on the Hilton Hotel. The report begins with an introduction to the hospitality industry and the role of marketing, followed by an examination of different marketing concepts such as product, selling, marketing, and production concepts. Task 1 explores the impact of the marketing environment, evaluating consumer relevance and rationale for market segmentation. Task 2 delves into the components of the marketing mix, analyzing pricing strategies and policies. Task 3 evaluates the role of the promotional mix, analyzing public relations, sales promotion, and the relevance of market research. Finally, Task 4 outlines the planning of an advertisement campaign, constituting market research, and analyzing suitable media for a product or service, concluding with an evaluation of marketing plan implementation.

Marketing in Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explaining different concepts of marketing...........................................................................1
Impact of marketing environment on the industry.................................................................2
Evaluation of consumer relevance..........................................................................................3
Rational for development of different market segments........................................................3
TASK 2............................................................................................................................................4
Importance of components of marketing mix........................................................................4
Analysis of pricing strategies and policies.............................................................................5
TASK 3...................................................................................................................................6
Evaluation of role of promotional mix...................................................................................6
Analysis of role of public relation and sales promotion.........................................................7
Relevance of market research for service industry.................................................................8
TASK 4...................................................................................................................................8
Planning of an advertisement campaign for service industry.................................................8
Constituting a market research for product/service................................................................9
Analysis of different media suitable for a product/ service..................................................10
Evaluation of implementation of a marketing plan..............................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industry is mainly a service providing industry to provides its clients and
guests comfort and leisure and recreational facilities to the guest and clients. The hospitality
industry include hotels, restaurants, pubs, leisure companies etc. the main purpose of all these are
to entertain the guest while providing food and other facilities and amenities to them. This
industry have contributed around 4% in the GDP of UK. The marketing means a study and
management of exchange relationship. Marketing is done to create, retain and satisfy he
consumer along with determination of their preferences and demand. To determine the market
trends, preferences and habits of the consumer is must for the hospitality sector as this industry
deals with taste and preferences of people which changes very frequently. The present report in
about the marketing in the hospitality industry and for this report hotel Hilton has been chosen.
TASK 1
Explaining different concepts of marketing
Product concept
A product concept focuses on providing high quality products and service which
differentiate your services and products from that of others and helps in fulfilment of customer
needs and attract them. Eg:- Hilton hotel provide luxurious facility to its customers which are
different from that of the rival hotels and at minimum cost.
Selling concept
A company produces product without any investigation in the market and whether
customers prefer those products or not. Customer will buy the product only if it is highly
promoted and advertised and they get influenced by them (Goldberg and Majka, Zoomdining,
2017). The goal is to sell the products no matter what customer wants.
Marketing concept
The customer is the king and the goal is to fulfil the needs of the customer and this can by
achieved by doing a lot of research as to what are the expectation of the customer and how we
can fulfil this expectation. Eg:- Hilton hotel collects feedback from their customers so that they
can improve their services.
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Production concept
This concept assumes that customer will prefer those goods and services which are easily
available and highly inexpensive. Eg:- There are some rooms in Hilton hotel available at low
rate and does not have necessary accommodations.
Impact of marketing environment on the industry
MICRO FACTORS
 Supplier
They may impact the reputation and profits. So it is important to maintain a healthy relationship.
Hilton provides variety of its products to others countries by supplying quality ad quantitative
products.
 Customer
They provide variety of services to its customer like organising events and meetings, arranging
parties, wedding ceremonies and other facilities. Customer can seek hotel for breaks, tourism
purpose and for business purpose.
 Competitors
Due to its luxury services and heavy advertising, Hilton has grabbed a position in the market ,
thus treat of new entrants is not possible to survive in the industry. They provide facility of
earning points which could be redeemed on the next visit.
 Media
They provide customers to book hotel online easily and they have their personal page and
website where the room can be seen and booking can be done (Kandampully, Zhang and
Bilgihan, 2015). Hotel has set up solar panels for consumption of electricity which have
increased there reputation in press.
MACRO FACTORS
 Social
Hilton earns most of its revenue from the hospitality sector and they contribute some % in the
GDP for growth and development. They also have the community which contributes towards the
needs of the society.
 Economical
They have provided employment opportunity to many people in there hotel and also strengthen
the other sectors of travel and tourism.
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 Technological
They have their own apps and websites where they offer online facility of room booking, paying
and avail discounts (Jauhari, and Bharwani, 2017). They provide free Wi-Fi service to their
guest.
 Political
Since law keeps on changing and every place has different law which impacts the performance
of the organisation.
 Environmental
Hotels are contributing towards increasing the pollution and global warming. The company has
regulation focusing on reducing the carbon emission by increasing operational cost of the
company.
Evaluation of consumer relevance
For Hinton hotel consumers are most important part as they are the one who have final
provision of their product and services (Šerić, Gil-Saura and Ruiz-Molina, 2014). To understand
the behaviours, taste, preference and habits of consumers are vital for hotel Hilton. As consumer
satisfaction is the ultimate key of success for the organisation to increase the profitability of the
hotel.
Rational for development of different market segments
Demographic
It includes division of customers on basis of gender, age, education, income, occupation
caste and creed which is the most common factor of division of customers in the targeted market
because they are related with the needs and wants of the customer and is a easy tool for
measurement.
Geographic
This is the another segment for division on the basis of country, state, region, city,
locality. The hotel can then focus on the particular division. They can track their customer by
using the GPS facility as well. For better understanding of customers, this approach is used.
Behavioural
It includes the behaviour pattern of the customers as to how they buy, use, where do they
spend and how much they are loyal towards a particular brand. A business guest will use the
same hotel whenever he visits but a traveller will prefer different hotel every time he visits.
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Psycho graphic
It helps in measuring attitude, lifestyle and behaviour of the customers. This division
helps to divide the customer of common values together. Hilton hotel can obtain this by
conducting surveys and preparing questionnaires or can ask to rate and review online.
TASK 2
Importance of components of marketing mix
Product: a product or a service that is built by the Thomas cook in order to satisfy the
consumers that is the travel group of the society. The services provided along with the certain
products shall be right type which is in demand in the market (Kim, Vogt and Knutson, 2015) .
So during the phase of developments of the services or product the marketing team of Thomas
cook shall carry out an intensive market research about the life cycle of the product/service they
are creating.
Pricing strategy: the price means the amount for the services which a consumer pays in
order to enjoy that services. Price is very crucial for Thomas and cook as it determines the
profits and endures survival of the organisation. The three major pricing strategies are market
penetration pricing, market skimming pricing and neutral pricing.
Channel and place of distribution: selection of a palace for distribution of the service
so developed is very important for Thom ans and cook. The importance of place is related with
the availability of consumer at place of service distribution, in other words it can be stated as the
to make available services where there is demand for the services. So selection of proper channel
of distribution and a perfect place is essential for Thomas and Cook.
Promotional elements: promotion is very important for Thomas ans cook as this will
boost up the brand recognition and dales of the company. The various components in promotions
are sales organisations, public relation, advertising and sales promotions (Perera and Perera,
2018). With an effective promotion of the brand name along with the services and products
offered by Thomas ans cook will enhance the sales of the business.
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4P's of Marketing Mix
Analysis of pricing strategies and policies
Pricing strategies: this means the techniques and tools adopted for determination and
fixing the price of a product or service. Thomas Cook shall set a price such that consumers are
willing to pay the price in return for the product or services consumed by them (Neirotti,
Raguseo and Paolucci, 2016). Thomas Cook shall follow certain guidelines for evaluation of
pricing strategies and for selection of the right price for that predict or service:
 the value proposition of the organisation ans its goal of market share ;
 a rights price for the brand strategy of the organisation.
 The floor price and cost of goods sold of product/service.
 The price and value offered by the competitors.
 The price elasticity.
 The optimal price of the product/service of the organisation.
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Pricing Strategy
The price of a product/services offered by Thomas cook shall:
 reflects the value of product in comparison with the competitors.
 Support the organisational brand.
 Maximizes the organisational profits.
 Match the offers of organisation with actual price consumers truly pays.
There are mainly three Pricing Strategies which Thomas Cook can follow:
1. Market penetration pricing: in this strategy in which the price of the product /services
is kept low initially and gradually increased to higher levels. This strategy is adopted
attract the consumers to a new brand or product with a lower price.
2. Market skimming pricing: this is exactly the opposite oh market penetration strategy. In
this the higher prices are lower down gradually over time (Jauhari and Bharwani, 2017) .
With the satisfaction of the demand of the first consumers and entrance of the
competitors in the market a business lower the price of its product or services in order to
retain ad attract the consumers.
3. Neutral pricing: this is a strategy for safe play in the market. In this the price is set in
accordance with general market and prices of the competitors. This strategy does no
involve high risk as a result does not attract major profits for an organisation.
TASK 3
Evaluation of role of promotional mix
Public relation: with an effective promotional mix a better communication and relation
is set up with the public as they have access to the information about the services or products
offered by the organisation in hospitality sector.
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Sponsorship: With an efficient price and effective promotions many sponsors are
attracted towards a business with a purpose if investment in the business. This will lead to
increment in the funds of a business and the easy availability of operational funds.
Personal selling: this is a technique in which a product/services is sold to a consumer
after meeting face to face with them. The seller need to have a charming and positive attitude in
order to sell the product /service.
Advertisement: this another type technique for promotion of a product/service. The
advertisement can be done in many ways such as through print media, telepathic promotions,
radio advertisement and television media.
Direct marketing: this is a technique in which the product/service s sold directly to the
consumers rather than through the retailers (Sipe and Testa, 2018. This can be dine by directly
contacting them in person or through mail orders or telephone selling.
Sales promotional: this is a strategy used when a business wants to generate intimidate
traffic, revenue or cash flow. This is very common in the hospitality industry as organisations in
this sector always faces a tough incompletion while trying to lure the consumers.
Analysis of role of public relation and sales promotion
A) 5 steps of sales promotion
Free trials: in this consumer can try a new product with elimination of the risk. This is
beneficial for products which are unique in the market place and consumers are leery to trying
that out.
Free samples: this is a technique to new product in the market place. This gives
consumer a chance to see how will they liked a product which they have not used or will not
buy.
Consumer contest: this is a technique in which consumers are even chance to win
merchandise and cash form the store (Qi and et.al., 2018). Being creative at market place create
more buzz among the consumers.
Special pricing: the products are offers at a lower price then the usual price for a specific
tome or on the purchase of multiple quantities. The manufactures generally provides subsidies to
the store for such price reduction.
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Digital marketing: this directly folds in to another promotion strategy by providing a
different avenue, online displays of the ad or through direct marketing to provide advertisement
to the consumers with different centric effort.
Importance of sales promotion
Consumers: to have a knowledge about the new product /service launched and various
offers presented by the sellers (Lederer, Van Niekerk and Okumus, 2017). They are provided
with a wide range of product to choose from.
Intermediaries: they are mediators between consumers and sellers that have direct
knowledge of demands of the product /services.
Producers: the better the promotion, the better will be the demand and sales and with a
goods sales higher profits are ensured.
B) Public relations as a part of promotional tool
A good public relation effort by a business helps it in creating a rapport with consumers
by promoting what it has to offers. PR includes information that a business want public to know.
The public includes consumers, employees, stakeholders and public. This helps in creating a
positive image of the business through the publicity. An effective PR generates a positive
consumer perception, so this can be stated that PR is vital for a business to have a positive image.
Relevance of market research for service industry
Market research means to study the trends in the market along with the changes in the
preferences and habits of consumers. A change in the perception and mind set of consumers is
also evaluated in market research. All these factors are very important for an organisation in
services industry as with a change in the era the demands and requirement of people is also
changing, so to keep a pace with the changing trends and preferences a market research is
essential for each and every organisation in service sector.
TASK 4
Planning of an advertisement campaign for service industry
Enclosed in Flyer
Constituting a market research for product/service
The service here selected for research is holiday packages provided by hotels:
Primary sources:  The main source was data collection
from participant and visitors in the
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exhibition. 10 respondents were chosen
randomly and information was
gathered.
Secondary sources:
 The data provided on the sites of
various hotels was collected for
research.
 The data and trends given in different
articles and journals were also
considered for this research.
QUESTIONNAIRE
Number Questions
1. In which season would you like to subscribe to a holiday package?
A. January to march
B. April to June
C. July to September
D. Octobers to December
2. Which time duration do you prefer for a holiday package?
A. 2-3 days
B. 5-7 days
C. 8-10 days
D. 10-15 days
3. Would you prefer any weekends in you holiday package?
A. yes
B. NO
4. If yes: how many?
A. 1
B. 2
C. 3
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5. How much amount would you like to spend on a holiday package?
A. 100-200 euros
B.200-300 euros
C.500-1000 euros
D. more than 1000 euros
Analysis of different media suitable for a product/ service
Various types of media for marketing of
holiday packages
Suitability
Print media  Advertisement can be given in
newspapers.
 Flyers can be distributed in tourist
places and spots of the city.
This will not serve the exact purpose as lesser
number of people read newspapers these days.
Telephonic media  Direct communication with the
potential consumers through telephonic
communication.
The method is time and money consuming and
the target market is very vast, so not every one
can be contacted (Marketing in the Hospitality
Industry, 2018).
Social Media  Marketing can be done through
platforms of social media.
 All ages groups can be targeted.
 Different methods can be used such as
audio clips, short videos and graphical
presentations.
This is the best method for marketing as social
media does not have national or international
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