Marketing in the Hospitality Industry: A Comprehensive Report

This report provides a comprehensive analysis of marketing strategies within the hospitality industry, examining key concepts and their practical applications. It begins by defining marketing in the context of hospitality, exploring concepts like product, production, selling, marketing, and societal marketing. The report then investigates the micro and macro environmental factors influencing marketing efforts, including suppliers, customers, economic factors, and technological advancements. Buyer behavior is analyzed, including the influence of cultural, social, psychological, and personal factors. Market segmentation strategies, such as geographic, demographic, behavioral, and psychographic segmentation, are also discussed. The report further examines the elements of the marketing mix (product, pricing, place, and promotion) and their application, using Thomas Cook as a case study. It delves into pricing policies, promotional mix, and the roles of sales promotion and public relations. Finally, the report covers advertising campaigns and market research methodologies for product and service development. The document also presents sales promotion techniques like gifting, discounts, and coupons.

Marketing in Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Concept of marketing for a relevant hospitality industry......................................................3
1.2 Influence of marketing surrounding......................................................................................4
1.3 Relevance of buyers market..................................................................................................6
TASK 2............................................................................................................................................8
2.1 Elements of marketing mix...................................................................................................8
2.2 Analysing pricing policies and strategies..............................................................................9
TASK 3............................................................................................................................................9
3.1 Role of promotional mix.......................................................................................................9
3.3 Role of sales promotion and public relation play within promotional efforts....................10
a) 5 kinds of sales promotion....................................................................................................10
b) 5 ways of using public relation as promotional technique....................................................11
4.1 Relevance market research..................................................................................................11
TASK 4..........................................................................................................................................12
3.2 Plan of advertisement campaign.........................................................................................12
4.2 Market research for adequate products and services...........................................................13
4.3 Different marketing media for adequate products and services..........................................14
4.4 Evaluate the applying of marketing plan............................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Marketing hospitality is termed as the study and management of exchanging relation to
satisfy, retain and create buyers (Alserhan, 2016). It takes a look at various segments of
hospitality services like as amusement parks, accommodation and Food oriented services upon
which marketing tactics are applied so that good and services can be sold. Hospitality industry is
define as a marketing efforts which direct towards increasing of revenue within hospitality
sector. Thomas Cook is an organisation that is being undertaken in the second section of the
report. It is one of largest travel group all over the globe and it is the company second largest in
UK. In this report it involve all the concepts of marketing and impact of its surrounding. Along
with this also discuss the role of promotional mix. The assessment will be carried out on the
importance of marketing for a business along with its components. The development of
individual portfolio will also be carried later in this report.
TASK 1
1.1 Concept of marketing for a relevant hospitality industry
Marketing is a process, activity or set of communication, exchanging, delivering and
creating various offer which gave value to society and customers at large number (Bowie, Buttle
and et.al., 2016). Some of concepts of marketing for hospitality services which are as follows:
Illustration 1: Marketing concepts

(Source: Marketing concepts, 2018) Product concept: According to management, if firm is producing a quality goods at
cheaper cost then then it need very less marketing efforts. For example: Hospitality
industry is giving service quality at low prices (Chen and Chen, 2014). Production concept: In this, organization produce the goods & services according to its
buyers needs. For example: Hospitality industry is providing products as per buyers
requirements and wants. Selling concept: In this, buyers will not buy their products unless company will not
encourage them to purchase their goods and services. For example: Hospitality industry
promote their products & services by using social media. Marketing concept: In this, organization identify the buyers requirements for fulfilling
their needs and wants. For example: They are taking feedback from their customers and
analyses their needs for fulfilling them.
 Societal marketing concept: In this, Hospitality industry focus on satisfying customers
requirements for a long time to achieve objectives and accomplish practices of social
welfare.
1.2 Influence of marketing surrounding
Micro
Components of micro environment are competitors, suppliers, distributors, public and
customers (Del Chiappa and Baggio, 2015). All these factors are having its positive as well as
negative impact. Some of are explained below:
Suppliers: This help in controlling the success of enterprise when firm is holding power. Thomas
Cook supply the services in the market. Positive impact: Organization gives the products within various areas. Negative impact: The suppliers can form monopoly as they can charge prices as per their
wishes from the businesses.
Customers: Buyers are acquirer of products, service and idea goods which is get from suppliers,
seller or vendor by exchange or financial transaction. Positive impact: Consumers help in raising the sales of an company.

 Negative impact: If firms wants to raise profits then they have to fulfill the buyers
demands.
(Source: Micro and Macro factors of environment, 2018)
Macro
External environment factors gave influence on enterprise activities. These components
are not in the hands of organisation. These all are having its advantages and disadvantages
aspects as well. Some of components negative & positive aspects are as follows:
Economic factors: It gives influence on the process of consumer buying decision and
organisation production involve exchange policies, growth rate, currency rate and so on. Positive impact: Because of less exchange rate and interest rates enterprise can easily
introduce services for a long duration within United Kingdom economy (Gayle and
Goodrich, 2014). Negative impact: Economic factors which gave effect on buying behaviour of customers
according to their income.
Technology factors:Hospitality industry adopt latest technology and make changes accordingly
like as online services etc.
Illustration 2: Micro and Macro
factors of environment, 2018

 Positive impact: Through adopting advanced technology it will help the company in
smoothly running within marketplace.
 Negative impact: By using latest innovative technology makes the services very
expensive.
1.3 Relevance of buyers market
In this industry, marketing is one of main factor which help in achieving potential
customers effectively (Gummesson, 2014). Behaviour of buyer is important aspect which refer to
understand about how particular teams, buying, utilise and select products or disposed ideas to
satisfy their desires and needs as well. It will assist in finding core features of products offered
by new or existing business such as Hospitality industry in United Kingdom. Companies is
providing quality of services to their buyers.
Hence, customer culture can play a very main role within the workplace. As it show
emphasizes on sociology and physiology part of organisation in United Kingdom. Advantages: Hospitality industry will fulfil buyers requirements as it will help in
grabbing large numbers of buyers. It will also aid in enhancing profits and sales in the
market.
 Disadvantages: If firm will not give services as per buyers needs then customers will
not purchase them again. It is having limited customers interest within market.
Black box of consumer behaviour
In this term, it emphasis the end consumer purchasing behaviour will impact by various
characteristics or factors sets Black box of buyers (Kim and Law, 2015). Consumers behaviour is
linked on stimuli coming from environment such as determinants of surrounding and marketing
mix. This stimuli go to black box of consumer behaviour. These factors which impact the Black
box consumer behaviour which are as given below:
Social Cultural Psychological Personal
 Reference
groups
 Family
 Roles & Status
 Sub-culture
 Social class
 Culture
 Perception
 Learning
 Motivation etc.
 Personality
 Occupation
 Life-cycle
stage and age
 Economic

situations
 Lifestyle
Hospitality industry are adopting personal factor for knowing buyers behaviour so that
they can satisfy the needs and wants of customers.
1.4 Rational for developing several market segments
Marketing segments is the process of designing products and services in the market. It is
categorised in four parts of consumer markets such as buyers goods,beverages products, retail
items and transportation goods. Marketing segments are explained in detail below:
( Source: Different marketing segment, 2016 ) Geographic: In this market segment, it is based on climate, market size, region and
density population. Thomas Cook organisation target United Kingdom market as well as
they position their firm according to market size. Demographic: This is based on income, background, gender, education, age and many
more. Company identify their customers by their features. Along with this company can
target their market products & services accordingly (Kim, Vogt and Knutson, 2015).
Illustration 3: Different marketing segment,
2016

 Behavioural: In this market segment, it consists customers status, buyer advantages,
usage rate, brand loyalty and so on. Organisation target their customers in UK are based
on behavioural characteristics. Thomas Cook position its brand image within the mind of
customers.
 Psychographic: This market segment is based on customers interests, activities, attitude,
beliefs, opinion and values. Firms is targeting UK market for accomplishing their
research on this segment. Organisation position their firm by offering their customers
effectively.
TASK 2
2.1 Elements of marketing mix
Marketing mix is an important components in making a perfect marketing techniques and
apply them effectively. It consists are:
( Source: 4Ps of marketing mix, 2017)
Components of
Marketing Mix
Related Application In Thomas Cook Travel
Product Thomas cook main goods are food, hotel, travel, car hire,
insurance and so on (Knani, 2014). They provide several
holidays packages like as senior citizen, international,
weekend and domestic holidays.
Illustration 4: 4Ps of marketing mix

Pricing strategy In present times, company is adopting premium pricing
strategy for attracting a right type of customers and give
services on cheaper rates.
Place Company store are available across the whole world in a
online form as well as physical stores are in Asia,Europe,
UK etc.
Promotional Thomas Cook encourage their business through showcasing
its holiday packages such as honeymoon special, festive
holidays, groups tours, adventure tours etc. Company are
advertising their services by using you tube, newspapers,
magazines, television, internet and hoardings .
2.2 Analysing pricing policies and strategies
Thomas Cook is using premium pricing technique in their organisation. It will aid
enterprise in setting their high cost as compared to its competitors. This strategy of pricing is
very effective as well as aid in selling a different goods to its buyers. As customers need to
perceive products according to its cost of business as it create the valuable perception within
buyers. Along with this it also give a quality of services and goods to their buyers at lower cost
which help them in maintaining premium pricing strategy within their company.
TASK 3
3.1 Role of promotional mix Personal selling: This technique is very much effective as it help in maintaining long
time relations with their buyers and employees as well (Leung and Stahura, 2015).
Thomas Cook is making relations which aid in raising future opportunities by achieving
customers expectations. Public relations: This campaign is implementing by grand opening, major events,
newsletter, press releases and social media. Thomas Cook travel is promoting their
services by using social media which is very helpful technique for maintaining public
relations.

( Source: Promotional mix, 2018 ) Advertisement: This tool play a very main role in promoting products and services of
their industry. Organisation is adopting social media for encouraging their services &
products which help in attracting higher numbers of buyers at the same time. Sales promotion: It provides a better way to make their buyers for buying goods and
services through Thomas Cook. Organisation also enhance their services by giving
several discounts, offers, vouchers and so on.
 Direct marketing: They are adopting technology in order to target buyers. It consists
catalogs, telephone calls, apps and e-mail. It is helpful for firms as they can target a
individual person by spending low level of cost.
3.3 Role of sales promotion and public relation play within promotional efforts
Sales promotion and public relation activities play a important role within Thomas Cook
Travel (Leung and Bai, 2015). PR are maintain by the firms by using social media and sales
promotion will help in enhancing sales by providing several offers.
a) 5 kinds of sales promotion Gifting: This organisation provide various gifts to its buyers for grabbing largest numbers
of customers such as Thomas Cook Travel gives key chains of firms name to its
customers. Discounts: Organisation is giving discounts packages at off seasons. It will help in
enhancing sales within off-seasons.
Illustration 5: Promotional mix

 Coupons: Sometimes Thomas Cook Travel also give coupons for enhancing their sales.
Company provides these coupons by online business websites through increasing the
enterprise online. Bundling: Organisation give advantages of bundling. For example: Visiting of 15
persons company will make payments of 3 peoples.
 Sampling: Organisation provides sampling of their products for making customers satisfy
that they are taking good products and services. Thomas Cook also show demos of
existing customers for making their buyers so exited for their trips.
This tool is giving advantage to producer by distributing revenue, buyers by providing
intermediaries and exotics schemes which help in increasing sales. Therefore, this is main for
distinct bodies or entities accordingly.
b) 5 ways of using public relation as promotional technique Media relation: Thomas Cook mainly deals with public media like as giving press
conferences, press releases and scheduling interviews. Mainly, firms wants that media
should do their advertisement in free. Social and corporate responsibility: PR enhance the firms reputation for ethics, charity
work, environmental responsibility and community. It gave affect on companies
practices. Public affairs: In this Thomas Cook is getting the government on its side. Organisation
wants to make modifications within farming legislation. So, they can sell their products at
high cost. It is professional work for making government contracts. It is occasionally
personable, tenacious and sneaky. Crisis management: It is an PR which need disaster strikes: financial crisis, recalled
faulty products and so on. It will spoil company reputation and need to dealt fastly. Offers interviews: By conducing interviews with main staff like as CEO, president,
founder and many more. It will aid reporters fast creation of original report and publish
higher quality of material (Del Chiappa and Baggio, 2015).
4.1 Relevance market research
While conducting a market research it gives various importance by providing its benefits
are:

 Making marketing decisions: Thomas Cook Travel accomplishing research work, it
will assist in analysing the customers needs for providing best quality of goods and
services. Survive within competition: If organisation will complete their research work
effectively. Then it will help in beating competitors in an effective way. Maximise profits: Effective organising of research work will assist in earning higher
level of profits and effective use of resources.
 Increasing sales: Market research will also give advantages through raising the sales
volume which will carry out proper research. It will assist in providing services
according to customers requirements.
TASK 4
3.2 Plan of advertisement campaign
Aim
Its important aim is to encourage their sales for increasing and earning higher level of
profits.
Objectives
 Making higher profits.
 Increasing sales volume. Grabbing buyer towards the company.
Target market and buyers
Thomas Cook Travel company will target a United Kingdom market and company will
target its buyers according to its interest such as senior citizen for religious trips, youngster for
adventure trips and many more.
Techniques used in advertisements
Thomas Cook is adopting television, newspaper, social media, print media, magazines
and online websites for grabbing higher numbers of buyers towards organisation.
4.2 Market research for adequate products and services
For accomplishing a proper research organisation collect the data of customers towards
advanced fusion introduced by organisation. Thomas Cook Travel is considering two types of
research which are given below: