Marketing in Hospitality: A Comprehensive Analysis of Hilton Hotel

This report provides a comprehensive analysis of marketing within the hospitality sector, focusing on Hilton Hotel as a case study. It begins with an introduction to the marketing process and core concepts, followed by an assessment of the macro and micro environmental factors impacting marketing decisions. The report delves into the relevance of the consumer market, exploring consumer behavior and its influence on the hospitality industry. It then examines the application of the marketing mix variables, including product, price, place, promotion, process, people, and physical evidence, evaluating their importance in the context of Hilton Hotel. The role of various pricing policies and strategies is also discussed. Furthermore, the report analyzes the promotional mix, advertising campaigns, sales promotion, and public relations. It concludes by emphasizing the significance of marketing research, proposing media strategies for a five-star hotel, and evaluating the implementation of marketing plans for suitable products and services.

Marketing in Hospitality

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
A. Marketing process and concepts of marketing........................................................................3
B. Assessing macro and micro environment that affects marketing decisions in hospitality
sector............................................................................................................................................4
C. Relevance of consumer market within hospitality sector........................................................5
TASK 2............................................................................................................................................6
A. Marketing mix variables applicable in hospitality and assessment of importance of
marketing mix components..........................................................................................................6
B. Role of several pricing policies and strategies utilized by firm 187.......................................7
TASK 3............................................................................................................................................7
A. Promotional mix and its role in organization..........................................................................7
B. Planning advertising campaign with suitable promotional objectives....................................8
C. Analyzing the role of sales promotion and public relations play within firm.........................8
TASK 4............................................................................................................................................9
A. Discussing the relevance and importance of carrying out marketing research.......................9
B. Analysis and proposing different media for marketing five start hotel...................................9
C. Evaluating the implementation of marketing plan for suitable product and services...........10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing is referred to as the management process with which the goods as well as
services moves to the customers. It involves the coordination of four elements that reflects 4 P's
of marketing. This includes product, price, place and strategy of promotion. In other words
marketing is widely used term that assist in describing the communication among company and
audiences that aims at increasing value of the organization (Jenster, Hayes and Smith, 2005). The
main purpose of marketing relates with inducing the change in behavior in relation to the
audience.
In the present report marketing in hospitality has been discussed in context of Hilton
hotel. Hilton hotel is one of the global brand of full service hotels as well as resorts. At the end of
first quarter of 2016 there is presence of more than 570 Hilton hotel and resorts properties that
are existing in around 84 countries and territories across the six continents. Hilton hotel and
resorts is Hilton World wide flagship brand. Further is one of the largest brand of hotel across the
globe. Hilton hotel is American multinational hospitality organization that is engaged in
managing and franchising a broader portfolio of hotels as well as resorts.
The present study entails to understand the concept relating with marketing in the context
of service industry. Along with this it covers the role of marketing mix and importance of
marketing mix components. The report includes use of promotional mix and covers the
marketing cycle in service industry environment.
TASK 1
A. Marketing process and concepts of marketing
Marketing process is comprised of the manner in which the value is being created for the
customers in order to satisfy their needs. The process of marketing is continuous sequence of
actions as well as reaction among the organizations and customers that aims at creating value and
satisfying the needs of the target market. Under marketing process the analysis of situation is
done in order to determine the opportunities. Further the formulation of strategy is done for value
proposition. Further tactical decisions are also taken, implementation of plan is done and
outcomes are being monitored. The process of marketing has been enumerated in the manner
stated as under:
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 Situation Analysis: This is being done by firm like Hilton hotel in order to make
determination of opportunities prevailing in market. Further it includes understanding of
the capabilities of the business and gaining insight to the environment wherein it is
carrying out its operations. Marketing strategy: Following the identification of the opportunities in the market a
strategic plan is devised in order to pursue the opportunities determined (Kenning, 2008). Marketing mix decision: In this stage tactical decision is being made for controlling the
parameters relating with marketing mix. This is comprised of decision regarding
development of product, product pricing decision, Product distribution decision and well
as promotional decision relates with product.
 Implementation and control: At last marketing plan is executed by Hilton hotel. Further
the outcomes of marketing efforts are monitored for adjusting the marketing mix in
accordance with the changes in the market.
Concept of marketing is referred as the philosophy that business needs to analyze the
requirements of its customers and then develop decisions in order to satisfy those need
effectively in comparison with the competition. There is presence of five concept of marketing.
This is comprised of production concept, product concept, marketing concept, selling as well as
societal marketing concept (Kotler, Shalowitz and Stevens, 2011). Hilton hotel takes into
consideration customer focus marketing in order to satisfy the requirements of customers in an
effective manner. For instance the marketing needs to be done online as such at present the
customers have became aware of the use of technology within the market.
B. Assessing macro and micro environment that affects marketing decisions in hospitality sector
There is presence of various micro as well as macro environmental factors that has
impact of the decision regarding marketing. These have been enumerated in the manner stated as
under:
Micro environment Suppliers: The suppliers of Hilton hotel can control the success of the organization when
they hold the power. They hold power in situation when they are the largest suppliers of
the particular goods and services. Their role is significant in development of finished
product in right time. Thus marketing decision needs to be taken in accordance with this.
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 Customers: Marketing decisions are influenced by type of customers who are required to
be served by the company (Layton, 2011). The reason because of which the customers
are engaged in making purchase also affects the decision regarding purchase to a greater
extent. Competition: Competitors of the firm are one who makes sales of similar kind of product.
Before carrying out marketing it is significant to take into account the way that is being
used by the competitors in order to make sales.
Macro environment Demographic: It is regarded as the study of human population that relates with size,
density, location, age, race as well as occupation. Also these factors has greater impact on
the marketing decision. Thus Hilton hotel is required to design its services in accordance
with the demographic factors and this can result in success of the business for long run
course of time. Technological: Technological forces are considered factors that are changing at a faster
rate. Such forces develops new markets as well as opportunities for the marketer. Social and cultural: Cultural factor is comprised of heritage, living style as well as
religion that has huge impact on the strategy marketing (Suki, 2013). Social responsibility
has become the part of the marketing. The needs and preferences of the target market has
huge impact on the decisions taken for marketing of products and services.
 Economics: These are regarded as those macro economic factors that has huge impact on
the consumer power of buying as well as patterns of spending. It is comprised of level of
income, policies as well as nature of economy, trade cycles, distribution of income on the
basis of which the decisions regarding marketing are being taken.
C. Relevance of consumer market within hospitality sector
Consumer are considered as the major part in the hospitality sector. This is because of the
reason that they are the key element that assist in making determination of the success of the
industry on whole. The culture which is prevailing among the customers is the significant part of
the hospitality industry. It has focus on sociological as well as psychological influence on buying
and spending power of the customers. The buying behavior of the consumer in hotel industry is
the function of personal influences as well as external environment forces which demonstrates
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the behavioral pattern of the hospitality consumers. This has effectiveness in reflecting several
kind of stimuli. It is being determined that it is the attainment of trade off among customers as
well as competitors orientation that acts as an aid in attaining desired targets to a significant
level. Thus several hotels chains are making efforts in keeping a balance among the two in order
to attain best of both (Van Doren and Johns, 2010). The concept that relates with value chain is
significant in maintaining long run relationship among the customers. This is being applied in
case of hotel such as Hilton. This is renowned among the customers for effective value chain as
it makes delivery of maximum value at optimum cost in form of good rooms having TV, internet
as well as reasonable breakfast.
TASK 2
A. Marketing mix variables applicable in hospitality and assessment of importance of marketing
mix components
The marketing mix elements under hotel industry is comprised of product, price, place,
promotion, process, people and physical evidence. The products as well as services of the
hospitality industry that includes Hilton hotel to a greater extent are perishable as well as
inseparable in nature. Thus it is important for the marketers to pay due attention towards making
production of unique combination of marketing mix that is relevant in meeting the demands at
several point of time. When developing the product it is significant for the hotel to pay attention
towards unique selling point that is being given by varied products as well as services. Further
they ought to make development of strategies through controlled test marketing process and
makes development of process as well as devise the concept and brand themselves (Verhoef and
Rust, 2005). Place can be defined as the manner in which the services would be attained by the
customers. Knowledge regarding the same can be attained when use of suitable channel of
distribution is made for delivering the services at right point of time and in right amount. This is
in order to ensure greater convenience among the customers and service availability.
For instance, there is presence of several hotels that are engaged in making use of Hotel
online services as distribution channel with the aim to make delivery of superior quality to the
customers through better logistics management. Technology is playing a major role in bringing
changes in the distribution pattern used by the hospitality industry. Several new models have
been devised in form of internet based channel as well as franchising that allows customers to
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make online reservation and avoid developing intermediaries. There is existence of ethical issues
regarding the usage of power by the leader of channel (Foxall, 2000). It is significant element
that is required to be analyzed by the executive of hotel so that leader is not exerting pressure on
the less powerful channel to fulfill specified standards within the behavior.
B. Role of several pricing policies and strategies utilized by firm
The theory of pricing needs to be based upon the cost, demand as well as competition.
This element assist in setting financial objectives that are required to be attained by hospitality
business. This is in order to attain greater market share in comparison with the rivalries. Hilton
hotel is making use of pricing strategy that is based upon the demand as well as competition
based. In situation when prices of its rivalries are high then company adopt the similar approach
(Graa and Dani-elKebir, 2010). However in case of decline in the pricing Hilton hotel also
makes application of such. Thus it makes adjustment of prices in accordance with the
competition.
The policy of pricing in the hospitality sector is on the basis of demand as well as supply.
There is presence of various circumstances that results in making hotel price increase or
decrease. For instance when London Olympics took place the hotel within London slashed their
prices in order to fill rooms on account of the domestic buyers. Competitors exert pressure on the
hotel to make adoption of competitive pricing strategies so as to keep balance with the demand
and supply norms (Hung and Lin, 2015). In addition to this seasonal fluctuation as well as
increasing competition assist in altering and carrying out strategic and tactical decision regarding
pricing. Hilton hotel comply with ethical norms while charging consumers as it has effective role
in the brand loyalty aspect to a greater extent.
TASK 3
A. Promotional mix and its role in organization
The role of promotional mix is significant in UK hospitality industry. This involves
making efforts to take the product from business to consumers. A larger number of strategies
have been carried out by the hospitality businesses within UK. Being a part of the branding
element of promotion mix Hilton hotel has made introduction of new fusion menu. It is
comprised of introduction of wide range of dishes to in order to come up with new ideas. This
was being successful in order to enhance the revenue during the London Olympics 2012. The
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firm made its promotion by making use of elements of online marketing through internet based
channel so as to reduce the London based hotels. Greater numbers of factors are required to be
considered while devising promotional mix approach. The budget which is being established by
the hotel on the activities of promotion needs to be determined in advance so that activities can
be carried out with greater effectiveness (Olimpia, 2011). The most significant elements of
promotion involves advertising, sales promotion, personal selling as well as public relation. They
can effective role in reaching the greater number of customers within less duration of time. With
the elements of promotional mix the major benefit firm can see is within the sales of the
organization.
B. Planning advertising campaign with suitable promotional objectives
The promotional objectives of Hilton hotel is to bring enhancement in the sales of the
company. In this regard planning is being done to develop advertising campaign so that
organization can reach larger market within minimum duration of time. For this company can put
hoarding on different places so that customers can be made aware regarding the product that are
being sold to the target market (Weinstein, 2013). In addition to this it is being developed with
the aim to increasing greater attention among the customers within the market. Advertising is the
heart of commerce without this the firm cannot makes effective promotion of its services.
Campaign that is demonstrating suitable offers and discounts by the company is effective in
attracting large market.
C. Analyzing the role of sales promotion and public relations play within firm
In the present era the business world is highly competitive. The firms are require to gain
edge from the competitors so that they can be made more appealing and interesting to both
public as well as media. Public relation is comprised of wide range of programmes that have
been developed in order to promote as well as protect the image of the organization. The major
aim of public relation is to enhance the reputation of the business such as Hilton hotel. The
employees working for the same are specialist who present the company in an effective manner
before the world.
Sales promotion is regarded as the activity that acts as an aid in boosting the sales of the
product and services that are offered by Hilton hotel. It is comprised of wide range of activities
that includes offering free gifts, offering discounts and offers in order to encourage the customer
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to avail the services that are offered by Hilton hotel (Mohr, Sengupta and Slater, 2009). It has
effective role in attracting large number of customers and make them loyal towards the brand. It
has greater role in increasing the awareness regarding the brand in the market which can result in
increasing its sales to a greater extent.
TASK 4
A. Discussing the relevance and importance of carrying out marketing research
The role of proper planned marketing research is significant in gaining insight to the
services that are being provided by the rivalries businesses. It is considered as the source of
innovation in relation with introducing new services offerings and bringing alterations within the
existing ones. This is being carried out within the hospitality industry by making utilization of
market information system that has significant role in making collection of information regarding
prices as well as other aspects. It also acts as an aid in analyzing the current demand in the
market and assist in making proper forecasting (Murmann and Frenken, 2006). The process of
market research has significant role in this relation as it includes collection and analysis of the
data in order to reach at a particular conclusion and make suitable evaluation.
Hilton hotel has gain insight to such that has assisted it in performing at corporate level.
The major target is to offer better management of several services within the hotel and develop
better understanding in relation to market as well as consumers (Kotler, Shalowitz and Stevens,
2011). It has acted as an aid in effective positioning of its services through the means such as
forecasting of demand. It is being utilized as quality tool by the hotel in order to affect the
consumer perception in relation to several products as well as services.
Market research can be conducted for the purpose of determining the responses of the
customers in relation to the new fusion menu developed by Hilton hotel. This is in order to
attract large number of customers from across the globe in an effective manner. Primary
investigation can be done by the hotel on the consumers by carrying out interview sessions
through open and close ended questionnaire. This would act as an aid in receiving the feedbacks
with the assistance of two way communication (Penn, 2014). However secondary research can
also be carried out by making utilization of internal records that are in form of government
publications.
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B. Analysis and proposing different media for marketing five start hotel
There is presence of several kind of media that are being utilized by the hospitality
business such as Hilton hotel within UK. This is for the purpose of attaining suitable outcomes in
their marketing efforts. It includes form such as TV, print media such as newspaper as well as
magazines, radio etc (Layton, 2011). In addition to this it is comprised of visual sources such as
bill boards as well as posters. The usage of such sources differs from services, product as well as
market under consideration. For instance in case Hilton desires to reach global market then it can
make use of internet based media. In case the organization desires to make promotion of its new
website then the most suitable method it can use is the internet in comparison with radio.
C. Evaluating the implementation of marketing plan for suitable product and services
The marketing plan for the purpose of promoting the product of the firm that includes
new fusion menu can be promoted by the means of making use of internet as well as print media.
Through this awareness can be created among large number of customers (Suki, 2013). This has
effective role in increasing awareness among the target market in an effective manner. The
method is suitable as with this the sales of the company can be increased. This is because of the
reason that relates with enhancement in the awareness regarding the product to a significant
level.
CONCLUSION
It can be concluded from the study the marketing has significant role in creating greater
awareness among the customers regarding the products and services. There is presence of
marketing mix elements that acts as an aid in determining the success of the firm to a greater
extent.
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