Comprehensive Marketing Strategies in the Hospitality Industry Report

This report provides a comprehensive analysis of marketing strategies within the hospitality industry. It begins with an introduction to marketing concepts, the impact of the marketing environment, and the relevance of consumer markets. The report then delves into the marketing mix, exploring the importance of product, price, place, and promotion, along with an analysis of pricing strategies and policies. It further examines the role of the promotional mix, sales promotions, public relations, and market research in promotional efforts. The report also includes a discussion of an advertising campaign, the suitability of different media, and the implementation of a marketing plan, using Thomas Cook as a case study. The report concludes with a summary of the key findings and recommendations for effective marketing in the hospitality sector.

Marketing in Hospitality

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concepts of marketing......................................................................................................1
1.2 Impact of marketing environment on industry.................................................................1
1.3 Relevance of consumer markets in industry.....................................................................2
1.4 Rationale for developing different market segments........................................................3
TASK 2............................................................................................................................................4
2.1 Importance of the components of marketing mix.............................................................4
2.2 Analysing pricing strategies and policies.........................................................................5
TASK 3............................................................................................................................................5
3.1 Role of the promotional mix.............................................................................................5
3.3 Role of sales promotions and public relations in promotional efforts..............................6
4.1 Relevance of market research...........................................................................................7
TASK 4............................................................................................................................................7
3.2 Advertising campaign.......................................................................................................7
4.2 Undertaking market research..........................................................................................10
4.3 Suitability of different media..........................................................................................11
4.4 Implementation of the marketing plan...........................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is essential for every business in order to increase the production and
profitability through effective strategies and plans. The report will cover concepts of marketing,
impact of marketing environment, relevance of consumer markets and rationale for developing
different market segments. In addition to this, importance of the components of marketing mix
and pricing strategies as well as policies will be discussed. Role of the promotional mix, sales
promotions, public relations and market research in promotional efforts will be explained here.
Finally, report will demonstrate advertising campaign, suitability of different media and
implementation of the marketing plan for Thomas Cook.
TASK 1
1.1 Concepts of marketing
The marketing concept is the philosophy that firms should analyze the needs of their
customers and then make decisions to satisfy those needs
The product concept: The product should be of good quality offered by Thomas Cook with a set
of reasonable prices that help to put a little marketing effort. This will help customers to choose
their services according to their affordability.
The selling concept: Selling concept is directly connected with promotional activities which
defines that a customer can easily buy a product or service if it is promoted well by a company.
The marketing concept: Marketing concept describes that a customer’s requirements should be
addressed by firm in order to provide satisfaction effectively (Maggon and Chaudhry, 2015).
The societal concept: This concept focuses on satisfying requirements of customers in order to
accomplish objectives and goals of business which is also in favour of welfare of societies
effectively.
1.2 Impact of marketing environment on industry
It can be said that marketing environment has a great impact on Thomas Cook in terms of
macro and micro environmental factors which affect the operations as well as other internal and
external activities. In addition to this, marketing environment is an important player which
decides the failure and success of a marketing plan of a business. Thomas Cook operates in a
macro and micro environment that keeps changing consistently and effectively. This can create
an opportunity or threat for business and holders.
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PESTLE ANALYSIS
An effective coordination with customers,
suppliers, finance management and
competitors which are micro environmental
factors will help to execute smooth business
operations.
Apart from this, macro environmental factors
such as political, economic, social,
technological, legal and environmental also
have a positive and negative impact on
business and its operations effectively.
Estimating size, age, structure and occupation
of population will help to detect the price
competitors as well as current trends.
The focus will be on economic factors such as
disposal income, interest rates, consumption
patterns and GDP is crucial that it will affect
the operational activities (Walsh, Chang and
Tse, 2015).
Political factors should be considered such as
tax policies, patents and government stability
according to the legal requirements of firm.
In addition to this, technological factors like
new product, technique or software upgrades
should be checked in a timely manner.
Social factors like family size, population
analysis, people awareness and lifestyle must
be focused to develop an effective marketing
strategy efficiently.
Thus, all the factors should be managed and
controlled by firm to run business smoothly.
1.3 Relevance of consumer markets in industry
Consmuer behaviour: The aim of Thomas Cook is to anticipate, meet and satisfy requirements of
consumers in the market and therefore, it is crucial to determine target customers according to
their buying nature. For an example, the marketing team of Thomas Cook can review the case
study of other competitors in order to determine issues that they have faced during establishing
an effective marketing chain (Abbey, 2014).
Advantage: The main advantage is the investment and commitment provided by firm which is
the main strength that helps to keep existing customers as well as to attract new ones effectively.
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Disadvantage: In addition to this, there are different factors that act as a disadvantage for firm
which affect decisions made by customers and many a times, business fails to recognise such
factors.
A better understanding of present and future needs of both customers and business will
help to avoid such situations. This will help to create an effective marketing plan for business
according to the relevance of consumer markets effectively.
1.4 Rationale for developing different market segments
Segmentation can be done on the basis of Geographic, Demographic, Behavioural and
Physiographic for developing different segments. Market segmentation is required for effective
marketing strategies according to various factors identified in segmentation. This can be done by
dividing overall market in smaller groups or frame consisting customers who have similar
choices. This will help to frame marketing strategies while considering requirements of each
group effectively.
Demographic segmentations: The segment is one in which consumers are divided according to
the age, gender, family size, occupation and income.
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Illustration 1: Consumer Black-Box
Source: Course, 2015

Geographic groups: These are divided on the basis of states, nation, cities and regions.
Behaviour: Behaviour of customers can be divided according to their response, attitude and
knowledge.
Demographic: Thus, it is useful for business to understand structure of market condition so that
the management will be able to develop different market segments effectively.
TASK 2
2.1 Importance of the components of marketing mix
Marketing can be simply described as putting the right product in right place at the right
time effectively. This may look easy but a lot of hard work and research is needed to go into
setting this simple definition up. Marketing mix is an important element that helps business to
understand what products or services can offer and how to plan for a successful offering in the
market towards customers. The marketing mix is commonly executed through 4Ps of marketing
mix which are described as below:
Product: The product can be defined either as a tangible or intangible service which seems to
meet specific requirements of customers. A logical product life cycle is followed by all products
which is also vital for marketers in order to determine the strategies and unique challenges
involved in it (Kriechbaumer and Christodoulidou, 2014). Quality products and services will
help business to expand its operations as well as increase customer base and benefits.
Price: Price can be described as an actual amount paid by customers for a product or service
effectively. This is linked to what the perceived values of the products is to customers rather than
an objectives costing of product on offers. Products with high prices and lower than its perceived
values are not worth to sell. Prices are affected by distribution plan, cost of value chain and
rivalry competitor’s prices.
Place: Place is where business provides its products or service to customers. Distribution is a key
element of placement. Placement strategy will help Thomas Cook to assess which channel is the
most suitable for a product distribution. How a product is accessed by end user also needs to
compliment the rest of product strategy (Park, Ok and Chae, 2016).
Promotion: Promotional activities such as advertising, sales promotions, public relations and
special offers are some strategies used to promote services offered by firm in the market. It can
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be described as a communication aspect of all marketing functions. Thus, it is also important to
differentiate between promotion and marketing.
2.2 Analysing pricing strategies and policies
Thomas Cook is one of the largest travel group in the world and also the second largest in
the UK that in 2008 they organised holidays for around 16.03 million people in UK alone
effectively. The main reason behind their success is their commitment and investment towards
providing customers 'A time of their life' and 'Value for money'. It can be said that people are
using online websites world wide web to plan their holidays instead of conventional means. The
firm believes in corporate social responsibility and work as a responsible tourism business.
Pricing strategy and policy has a main role in the successful execution of plans. Pricing
strategies and policies are important for both customers and firm in order to provide services
with affordable cost. It is imperative to understand and determine how a consumer sees what you
are selling. A positive customer value will help product to be a successful priced higher than its
objective monetary values (Pérez-Pineda, Alcaraz and Colón, 2017). Prices are affected by
distribution plan, cost of value chain and rivalry competitors prices that it must be set according
to the market segmentation and valuable analysis. There are some necessary factors which
should be considered by Thomas Cook while setting prices for their products and services such
as flexibility and uniqueness of product or service, value added services and operation costs. In
addition to this, pricing strategy made up to some components such as rack rates, seasonal
pricing, last minute pricing, discounting and package deals. Thus, this will be the suitable pricing
strategy for business in order to set prices for their customers to provide services and products
effectively and efficiently.
TASK 3
3.1 Role of the promotional mix
It can be said that promotions are an integral part of marketing mix in which the role of
promotion is critical for businesses who wants to ensure that the right customers are reached and
objectives are met effectively and efficiently. Thomas Cook is able to achieve this by using
strategic tactics to connect with customers in order to create a response. There are some
functions associated with promotional mix such as public relations, sponsorship, personal selling,
advertising, direct marketing and sales promotion.
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Public relations: Public relations can be described as a management function that helps to
establish and maintain beneficial relationship between business and public (Kolb, 2018). There
are total twelve functions of public relations including competencies, four step process,
communication, stakeholder relationship, social media management and content development
etc.
Sponsorship: In order to promote products and services offered by firm, it is required to have
enough funding for promotional activities. Sponsorship is one of the best option for business to
promote their operations and activities through extra funding. They work as a supporting
community and also an essential element or function of promotional mix effectively.
Personal selling: Personal selling is a face to face communication process in which a person on
behalf of company directly makes a conversation with customers for he purposes of selling and
exchanging services effectively.
Advertising: One of the most strong and effective function of advertising is to create customer
demand for specific services and products offered by business through ad campaigns that target
audience are most likely to purchase them (Suess and Mody, 2017). Concepts, ideas and services
are sold in volume, according to the consumer demand of them.
Direct marketing and sales promotion: Direct marketing is also added as a proactive function of
building database and mailing lists using federal statistical surveys, sources and telephone
queries effectively. In addition to this, sales promotion is different from advertising that it is
intent to create a sense of urgency which helps to encourage action opposed to build a sales for
business over a long period. Market research, customer analysis, buying patterns and current
trends analysis are some example of sales promotion.
3.3 Role of sales promotions and public relations in promotional efforts
Sales promotions are usually used together with advertising, personal selling, or other
promotion mix tools.
Sales promotion: Sales promotion contains methods of stimulating customer purchase and it is
also based on immediate and short term goals. Sales promotion is important to the producer,
intermediaries and consumers in order to maintain sales and profitability. Discount, gifting,
refunds, exchange offers and coupons are the five elements of sales promotional activities. These
are applicable for both customers and business (Huang and Rundle-Thiele, 2014).
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Public relations: Public relations can be used in different ways towards promotional activities
that it will help to promote operations, services and offers provided by firm to customers. There
are total twelve functions of public relations including competencies, four step process,
communication, stakeholder relationship, social media management and content development
etc. Public relations are focused on product or service publicity.
4.1 Relevance of market research
Market Research is important for your business in order to understand the interests &
opinions of your customers, strengths & weaknesses of Thomas Cook competitors. It can be said
that market research is important for Thomas Cook business in order to determine problem and
development areas. Market research will help to understand requirement of existing customers
and also provide reason why they chose services over competitors effectively. This will help to
develop effective marketing strategies in order to take decisions which increases market as well
as profitability.
In addition to this, Thomas Cook is able to attract new consumers in the market by
implementing market strategies that helps to determine needs of consumers. It is an integral part
of daily business operations which also keep up to date with the latest technology and equipment.
TASK 4
3.2 Advertising campaign
There are different types of campaign used by Thomas Cook in order to introduce a new
service in the market towards customers which would be providing mid-range of classic
packages for people with middle class affordability in UK. The service should be well promoted
so that the people of UK can communicate with the most prospects who are interested in this
service effectively. In respect to this, the campaign will be based on media coverages such as
print media, television, social media platform etc. according to this, social media platform will be
the best campaign for the firm in order to promote their activities that it is not required any kind
of huge investment in today's world effectively. Everyone is connected with social media and all
the latest news around world is upgraded in social media (Tanford, Shoemaker and Dinca, 2016).
Television and print media are also effective but costly and traditional methods if campaigning
and very limited people see the advertisement on newspaper.
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Thus, social media platform will help to spread news and services offered by firm at large
level. This will also help Thomas Cook to provide information regarding their new product or
service launched in market in order to attract new and existing customers as well.
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Illustration 2: Flyer From Thomas Cook

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Illustration 3: Flyer Thomas Cook

4.2 Undertaking market research
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Illustration 4: Flyer Thomas Cook