Marketing in Hospitality Industry: A Comprehensive Report

This report delves into the core concepts of marketing within the hospitality industry, using Thomas Cook as a case study. It examines the marketing mix components (product, price, place, promotion) and their application, along with pricing strategies and policies. The report assesses the impact ...Read More

Marketing In Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concept of marketing for service industry.......................................................................1
1.2 Assess impact of marketing environment on service industry.........................................2
1.3 Evaluate relevance of consumer market in industry.........................................................4
1.4 Developing different market segments.............................................................................4
TASK 2............................................................................................................................................5
2.1 Importance of marketing mix components in industry.....................................................5
2.2 Analysis of pricing strategies and policies in relation to industry....................................6
TASK 3 ...........................................................................................................................................7
3.1 Evaluate role of promotional mix ....................................................................................7
3.3 Role of sales promotion and public relations in promotional efforts...............................7
a) Five types of sales promotion.............................................................................................7
b) Five ways that public relation use in part of promotional tool..........................................8
4.1 Relevance of market research to service industry ...........................................................8
TASK 4............................................................................................................................................9
3.2 COVERED IN FLYER....................................................................................................9
4.2 Undertake market research for appropriate product or service........................................9
4.3 Analyse the suitability of different media for marketing...............................................10
4.4 Evaluate the implementation of marketing plan.............................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is essential process which is conducted by management to create,
communicate and exchange information with people about products and services. This helps
organisation to target customers and attract large number of individuals to enhance sales volume
and profitability. In hospitality, marketing plays important role to construct brand and grab
attention of people by providing them data about items (Leung, Xue and Bai, 2015). Present
report is based on Thomas Cook which is leading travel firm which provide products and
services to visitors. This assignment specifies marketing and various other concepts which has
relation in hospitality sector. Besides this, macro and micro components of business environment
are acknowledged by management to examine relevance of consumer market and various
segments to provide things according to demands and requirements of people.
TASK 1
1.1 Concept of marketing for service industry
Marketing is process which organisation execute to acknowledge demands of people and
promote information to buyer about availability of products and services. This help management
to create and launch items to grab attention of public and establish appropriate position and
image in market.
Product concept: This tactic define that companies conduct market research to
acknowledge demands and needs of people to design and provide items and services accordingly.
Hospitality industry provides services to visitors for which management require to have adequate
things to target clients. It is essential that company provides appropriate facilities that is hotel,
transportation, accommodation and other services to customers (Welshand et. al., 2014).
Production concept: It is another aspect which consists essential part in firm is
manufacturing activities that are conducted to deliver quality items and services to fulfil
demands and needs of people. For this, manager responsibility is to conduct operations
effectively and lower down expenses by mass production and distribution.
Marketing concept: This is philosophy which companies conduct to assess demands of
buyers which help management to make appropriate decisions to establish firm superior than
rival brands. Along this, services are delivered by Hospitality industry to satisfy and fulfil
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demands and requirements of people. It is necessary that companies provide information to
people about hotel, accommodation and transportation facilities to attract people.
Selling concept: It is another tactic which define that Hospitality industry conducts
promotional activities to advertise information to public about products and services. This help
Hospitality industry to communicate and attract customers by providing them data about services
(Tresidder, 2015 ).
Societal marketing concept: This is essential aspect which specifies that Hospitality
industry should make decisions and execute business operations in according to long term
interests of society and not of buyers. This sector helps in development and growth of country.
1.2 Assess impact of marketing environment on service industry
Organisation is present in environment which has internal and external components
which indirectly and directly affect on business operations. For this, management require to have
complete information about market conditions and system capabilities. This help them to make
appropriate decisions which are beneficial for performance of firm (Lim, 2014).
(Source: Micro and Macro Environment Factors, 2013)
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Illustration 1: Micro and Macro Environment Factors

Macro factors: This tactic includes external components which indirectly affect on
business activities. Political, cultural, economic, demographic, natural and technological are
various factors which require to be consider by management while making decisions,
formulating strategies and designing system to execute activities effectively.
Economical: Interest rate, exchange rate, inflation, growth are various components which
depend upon conditions of country. These are factors which affect on availability of capital and
profitability of Hospitality industry, as it conducts business globally (Lovelock and Patterson,
2015). Positive impact: In UK, there is stable economic conditions which determine that people
have good income which benefits Hospitality industry to have adequate customer base to
enhance their sales volume and revenue. Negative impact: Changes in taxation policies affect on number of visitors and on
profitability of Hospitality industry.
Technological: This factor define that management require to implement advanced technologies
and equipments in system for making growth and success of business. Positive impact: In Hospitality industry, latest tools and technologies are used which help
firm provide quality and best services to customers.
 Negative impact: Hospitality industry require to make changes in technology which
affect on funds and quality of services which depend upon skills and knowledge of
employees in respect to system (Maggon and Chaudhry, 2015).
Micro factors: It is another aspect which comprises internal elements which directly
influence on operations of firm. Competitors, public, customers, intermediaries, suppliers and
company are various factors which administration acknowledge to execute activities to satisfy
demands and needs of people.
Competitors: Each sector have large number of firms which are conducting business to
deliver products and services to customers and generate adequate profit. For this, management
require to establish competitive advantage to attract people and sustain its position and share in
market.
Positive impact: Hospitality industry provides quality services which helps superior to
construct strong brand value by using appropriate promotional techniques to advertise
information to people about services (Martínez, 2015).
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Negative impact: Sales and profitability of Hospitality industry are affected due to
competitors offerings and services.
Customers: Organisation require to provide different variety of products and services to
satisfy needs and wants of people. For this, market research is appropriate tool which helps
management to have complete information about choices and demands of public.
Positive impact: Hospitality industry provide quality services to customers which help
firm to satisfy people and construct loyal clients (Miao, Lehto and Wei, 2014).
Negative impact: Hospitality industry reputation decline, if appropriate services are not
provided to people which affect on sales and revenue of firm.
1.3 Evaluate relevance of consumer market in industry
Consumer behaviour refer to study conducted by management about behaviour,
emotional, mental and various other aspects which affect on purchase decision of people. It is
necessary that Hospitality industry provide products and services in according to choices and
needs of buyers to generate adequate profit from business. For this, feedback from customers is
appropriate technique which helps management to provide quality services to people.
Characteristics of Consumer behaviour:
People buying decision depend upon their choices and requirements which differ with
each other in respect to their age, gender, religion, income, learning, lifestyle, personality and
many other aspects.
Advantage: Management of Hospitality industry asses consumer behaviour which help
them to anticipate purchase pattern of people to provide them services accordingly. This help
company in making changes in system and enhancing quality of services (Murphy and et. al.,
2014).
Limitations: In Hospitality industry, superior faces problem in respect to changing
expectations of buyers which affect on sales and profitability of firm. For this, company require
to make alterations and modification in system which impact on employees work and quality of
services.
1.4 Developing different market segments
Market segmentation is activity which is conducted by management to divide population
and provide products and services in according to choices and demands of people. This help
Hospitality industry to provide appropriate variety of services in respect to needs and
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requirements of customers to satisfy them and construct loyal buyers. It is necessary that
company These are different market segment which are described beneath:
Geographic: This form of segmentation comprises market size, region, location and
country are various tactics which define that company sales depend upon population in particular
area where branch is established (Rogers and Davidson, 2015).
Demographic: It is another type of segmentation which includes various characteristics
that differentiate people from each other which are gender, age, income, education, lifestyle and
various other aspects. These are different components which management of Hospitality industry
determine to provide appropriate services to visitors.
Behavioural: This segmentation define that people purchase depend upon their needs
which determine frequency, loyalty and usage rate. Along this, buyers choices and demands also
depend on quality of products and services.
Benefits in relation to target marketing and positioning: Hospitality industry require to
provide services in according to requirements and demands of people which help management to
attract large number of visitors. Segmentation is technique which helps management to divide
population and acknowledge demands and needs of people. This provide superior support about
selecting a particular target segment and providing services accordingly. For this, firm uses
promotional tools to inform public about their services to establish appropriate position in their
mind.
TASK 2
2.1 Importance of marketing mix components in industry
Marketing mix comprises different elements which firm require to control and design to
influence buyers and make them purchase products and services to fulfil their demands and
satisfy them. Product, price, place and promotion are various factors which management of
Thomas Cook formulate to attract large number of people are described beneath (Schuckert, Liu
and Law, 2015):
Component of Marketing Mix Application in Thomas Cook Travel
Product Thomas Cook provide different variety of services to
visitors which are hotel, insurance, food, travel,
transportation and various other services. These are various
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services which people require to get while they travel to
either domestically or internationally for weekend and
holidays.
Pricing strategy In Thomas Cook, management uses premium pricing
policy which is to provide services at affordable rates. This
help firm to attract large number of people and generate
good amount of revenue from business.
Place Thomas Cook is conducting business globally which
determine that firm provides services to visitors to make
them visit different destinations that are UK, Spain, Italy,
Greece and many other nations (Šerić, Gil-Saura and Ruiz-
Molina, 2014).
Promotional elements Thomas Cook marketing team uses print media, electronic
media and online tools to inform people about services and
packages. Facebook, YouTube, Instagram and firm's
website are various techniques which help management to
establish strong brand reputation and image in market.
In Thomas Cook, management design system and provide appropriate services that is
hotel, transportation, food and other things to visitors to make their experience wonderful and
satisfy them. Firm uses premium pricing policy that is services are provided at reasonable rates
to attract large number of people. Along this, promotional activities are used by superior to
advertise and inform public about their existence and services.
2.2 Analysis of pricing strategies and policies in relation to industry
Management formulate policies to direct subordinates and conduct business activities to
deliver adequate products and services to people. It is necessary that marketing team select and
uses appropriate pricing strategy to enhance customer base and sales. In Thomas Cook, manager
uses premium pricing strategy which define that firm offers services at reasonable prices. This
help members to attract large number of visitors and generate adequate revenue. Besides this,
company also position higher than rival firms (Leung, Xue and Bai, 2015).
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TASK 3
3.1 Evaluate role of promotional mix
Promotion mix define various tools which management can use to advertise and promote
information to public about products and services. This tactic comprises combination of personal
selling, personal selling, publicity, sales promotion, public relation and many other tools which
are used by firm to establish appropriate reputation and image in market. These are various
techniques which are used by management of Thomas Cook are stated below:
Sponsorship: This is effective technique which Thomas Cook uses is to sponsor a
particular event, movie or other activity to promote information to people about existence of firm
and its services. This help company to construct strong brand value to easily attract customers
and make them avail services (Lim, 2014).
Personal selling: It is traditional form of promotion which is used by firm to interact
with people and provide information about services to influence their purchase decision. This
help company to construct and maintain brand value in market in respect to competitors.
Sales promotion: This is another tool which is used by Thomas Cook is to provide
discount, offer, rebate and other benefits to public to attract large number of customers for
enhancing their sales and profitability.
3.3 Role of sales promotion and public relations in promotional efforts
In Thomas Cook, promotional activity plays essential and important role to establish
appropriate position and reputation in market. It is essential that company provide offers and
deals to attract large number of visitors to enhance their sales and revenue (Lovelock and
Patterson, 2015).
a) Five types of sales promotion
Refunds and rebates: Thomas Cook also provide this facility to visitors which define
that refund of money or certain percentage rebate in prices is given to people to attract them and
establish competitive advantage over rival.
Coupons: This is effective tool which helps management of Thomas Cook to provide
coupon to customers to make them visit again.
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Discounts: Thomas Cook provides discounts to visitors to attract them and avail
services. For this, company reduce prices of services to position firm higher than competitor
(Maggon and Chaudhry, 2015).
Gifting: This is another technique which is used by management to provide gift to
visitors to enhance their experience towards firm.
Bulk purchase: This tool determine that company offers products and services at lower
rates, if purchased in bulk.
These are various forms of sales promotion which are used by management of Thomas
Cook to grab attention of large number of people to enhance sales volume and profit. Along this,
company is even able to establish competitive advantage in respect to rival firms to sustain its
position and reputation in market.
b) Five ways that public relation use in part of promotional tool
Media relations: Thomas Cook construct and maintain connection with media firms to
promote and advertise information to people about services.
Internal relations: Meeting and conference are conducted by management to inform
employees about policies, responsibilities and activities that require to be conducted to deliver
appropriate services to customers (Martínez, 2015).
Social media: YouTube, Instagram, Facebook and other tools are used by marketing
team of Thomas Cook to inform and provide information to people about products and services.
Government relations: Corporate social responsibility, consumer protection, fair
competition and employee protection are various policies which company require to follow to
sustain its position in market. Along this, management is even able to maintain relations with
people to have good customer base.
Community relations: This is another technique which management of Thomas Cook
uses to establish brand value by conducting business and protecting environment conditions.
Along this, education to people is another facility provided to visitors.
4.1 Relevance of market research to service industry
Relevance of market research in respect to service sector are stated below (Miao, Lehto
and Wei, 2014):
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Increase sale: Superior of Thomas Cook find out demands and buying behaviour of
people to provide appropriate services and things to visitors. This help firm to have good market
image and reputation to attract large number of people and enhance sales volume and revenue.
Improve target audience: Market research helps management to asses requirements of
people by segmentation process. This help Thomas Cook to provide services in according to
target customers to maintain reputation of firm in market (Murphy and et. al., 2014).
TASK 4
3.2 COVERED IN FLYER
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4.2 Undertake market research for appropriate product or service
Market research is activity conducted by management to acknowledge needs and
requirements of people. This help superior of Thomas Cook to design system and provide
appropriate services to visitors to satisfy them and give them quality experience. For this,
primary and secondary sources are used by firm to asses requirements of visitors.
Research Method
Primary Method: It is efficient technique which is used by investigator to acknowledge
demands and opinions of public. Interview and questionnaire are tools which are used by
researcher of Thomas Cook to gain data about requirements of tourists and market position of
firm.
Secondary Method: It is another method which is used by investigator is collect information by
using journal, newspaper, magazine and other techniques (Rogers and Davidson, 2015).
Questionnaire: This are questions which are formulated by management of Thomas
Cook to asses opinion and suggestions of visitors are:
1 What is your age group?
 Under 18
 18 to 40
 Above 40
2. What is your gender?
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 Female
 Male
3. For how much time you remembered advertisement of company?
 Often
 Don't remembered
4. Were you able to understand message of advertisement?
 Yes
 No
5. Were you able to make choices with help of advertisement?
 Yes
 No
4.3 Analyse the suitability of different media for marketing
Different media Different products and services
Marriott hotel uses electronic media, sales
promotion, electronic media to establish
appropriate position and reputation in market.
This help management accomplish outstanding
results for firm.
Management of Marriott hotel uses social
media, company's websites, radio, newspaper
and other sources to provide information to
people about products and services (Schuckert,
Liuand Law, 2015).
4.4 Evaluate the implementation of marketing plan
Management of Marriott hotel make alterations and improvement in system to execute
marketing plan which have following advantage and disadvantage which are: Know how to distribute and promote companies goods and services: In Marriott Hotel
management provide information to members about use of promotional techniques which
help them to attract visitors and enhance sales volume and profitability.
 Strategy Documentation: Superior has formulated plan which define subordinates about
targets and actions which require to be conducted by them. This help staff to perform
tasks effectively and provide quality services to people (Šerić, Gil-Saura and Ruiz-
Molina, 2014).
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CONCLUSION
From the above report, it can be comprehended that marketing plays essential role in
hospitality industry. It is essential that management asses impact of marketing environment and
consumer market to select appropriate market segment which are beneficial for company's
performance. Along this, marketing mix is formulated and appropriate promotional techniques
are used by firm to establish appropriate position and image in market and in mind of people.
Management also conduct market research to frame adequate marketing plan for firm.
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REFERENCES
Books and Journals
Leung, X. Y., Xue, L. and Bai, B., 2015. Internet marketing research in hospitality and tourism: a
review and journal preferences. International Journal of Contemporary Hospitality
Management. 27(7). pp.1556-1572.
Lim, W. M., 2014. The antecedents and consequences of customer hedonism in hospitality
services. Journal of Hospitality Marketing & Management. 23(6). pp.626-651.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Maggon, M. and Chaudhry, H., 2015. Revisiting relationship marketing and customer
relationship management in leading tourism and hospitality journals: research trends
from 2001 to 2013. Journal of Relationship Marketing. 14(1). pp.53-77.
Martínez, P., 2015. Customer loyalty: exploring its antecedents from a green marketing
perspective. International Journal of Contemporary Hospitality Management. 27(5).
pp.896-917.
Miao, L., Lehto, X. and Wei, W., 2014. The hedonic value of hospitality consumption: Evidence
from spring break experiences. Journal of Hospitality Marketing & Management. 23(2).
pp.99-121.
Murphy, J. and et. al., 2014. Massive open online courses: Strategies and research areas. Journal
of Hospitality & Tourism Education. 26(1). pp.39-43.
Rogers, T. and Davidson, R., 2015. Marketing destinations and venues for conferences,
conventions and business events. Routledge.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing. 32(5). pp.608-621.
Šerić, M., Gil-Saura, I. and Ruiz-Molina, M. E., 2014. How can integrated marketing
communications and advanced technology influence the creation of customer-based
brand equity? Evidence from the hospitality industry. International Journal of
Hospitality Management. 39. pp.144-156.
Tresidder, R., 2015. Experiences marketing: A cultural philosophy for contemporary hospitality
marketing studies. Journal of Hospitality Marketing & Management. 24(7). pp.708-726.
Welsh, D. H. and et. al., 2014. Japanese women entrepreneurs: implications for family firms.
Journal of Small Business Management. 52(2). pp.286-305.
Online
Marketing's Creative Suicide, 2018. [Online] Available through:
<https://www.linkedin.com/pulse/marketings-creative-suicide-shelly-lucas>.
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