Marketing Report: KFC and Hilton's Promotional Efforts

This marketing report delves into the promotional and marketing strategies employed by Kentucky Fried Chicken (KFC) and Hilton Hotels and Resorts. The report examines the concept of marketing within the service industry, emphasizing the importance of understanding the consumer market and the rationale behind market segmentation. It analyzes the significance of the marketing mix components (product, price, place, and promotion) for both companies, highlighting how they tailor these elements to attract and retain customers. The report further explores the role of promotional selling, including advertising campaigns, sales promotion, and public relations, providing insights into how KFC and Hilton leverage these tools to enhance their brand presence and drive sales. The analysis includes discussions on market research, budgeting, objective setting, and the design of advertising campaigns, as well as the impact of sales promotion and public relations on promotional efforts. The report emphasizes the competitive landscape and the need for businesses to adapt their strategies to meet evolving consumer demands.

MARKETING

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
1.1 Concept of marketing for relevant service industry .............................................................3
1.3 Relevance of consumer market ............................................................................................4
1.4 Rationale for developing different market segment .............................................................4
TASK 2............................................................................................................................................5
2.1 Importance of components of marketing mix ......................................................................5
TASK 3............................................................................................................................................6
3.1 Role of promotional selling ..................................................................................................6
3.2 Advertising campaign for services .......................................................................................7
3.3 Roles which sales promotion and public relations play in the promotional efforts .............8
REFERENCES.................................................................................................................................9

TASK 1
1.1 Concept of marketing for relevant service industry
Kentucky Fried Chicken (KFC) is a fast food chain of fried chicken and other products. It
is also the second largest restaurant chain because it has its restaurants in more than 20,000
locations in 123 different countries. The major products offered by the company are fried
chicken, sandwiches, wraps, French fries and different other products. Mentioned firm also has
strength of large number of employees who are giving their productive services throughout the
globe (Berinsky, Huber and Lenz, 2012). Cited firm majorly emphasize on giving their customer
a great experience with their food products so that they customer become a loyal customer for the
firm. Moreover, KFC also has various outlets in different places in UK which is satisfying
customers needs effectively.
Marketing can be defined as a concept which is used to describe communication between
the customers. With the help of it, the firm will be able to increase the value of their products.
Further, by attracting more of customers towards the same, the organization will be able to
enhance their revenue, profits and brand image in an effective manner. The major techniques
which are used in marketing involve selecting a target market with the help of market analysis
and market segmentation.
Further, the major purpose of organisation is to retain their customer base and satisfy
them with their existing and new products. Firm is facing stiff competition from its major rival
McDonald's who is ahead in this fast food business (Wang, Chen and Chen, 2012). Thus,
increasing the customer base will lead in developing goodwill which will help KFC in gaining
competitive edge in the coming time period. Further, it is also found that the cost of attracting
new customers is generally 6 times higher as compared to cost of retaining their existing ones.
Further, traditional marketing concept does not seem like to give venture that much of success in
this competitive atmosphere
Further, it is also necessary for skilled team of KFC to evaluate the present market trends.
Effective feedback needs to be taken from the customers to know their perception that what they
are in need off. By taking their suggestion into consideration, firm can focus on producing the
same to attract more customers towards the product (Principles of Marketing, 2015).

1.3 Relevance of consumer market
Customers are considered as a base for success and business venture produces goods and
services in such a manner so that they can attract customers towards their products. Consumer
culture is generally considered as a part of hospitality sector and it focuses on sociological and
psychological impact of buying and spending of the individuals (Li and et.al., 2013). Hilton
hotels and resorts is an international chain of hotels and resorts who is working under flagship of
Hilton Worldwide. Mentioned firm has their operations throughout the globe and the
organization also has large strength of employees who are rendering their productive services in
the world. Hilton Hotel generally considers this aspect so that they can increase customer’s base
and goodwill of the organization. Venture usually consider both consumer market namely leisure
and business individuals.
Further, the major difference lies between these two markets can be generally categorized
into nature of purchase, demand and global perspective. Moreover, it is also necessary for the
cited firm to segment their market accordingly to have better and effective operations. Further,
services rendered to leisure customers relatively differs from the services given to business
individuals. However, the main aim of the mentioned firm is to satisfy their needs and demands
in exceptional manner so that they can become loyal customer base for the venture.
1.4 Rationale for developing different market segment
Hilton hotel is working in dynamic environment and therefore it is necessary for the
manager of Hilton to undertake different initiative so that they can get ahead of their competitors
who are working in the same industry (Dolnicar and et.al., 2012). In order to enhance their
goodwill, firm can majorly focus on specific market segment for capitalizing their products. It is
necessary for the organization to focus on specific market segment and produce their goods and
services accordingly.
The different marketing segmentations are geographic, demographic, psychographic and
Behavioural. Mentioned firm can emphasize on demographic and psychographic segmentation to
increase the sale of their products and services. Demographic segmentation is based on major
variables like age, sex, gender, income level, etc. On the contrary side, psychographic
segmentation focuses on customer's lifestyle, taste and preferences, their needs and demand, etc.
The rationale to divide market sector is generally based on high complexity and competition
which persist in the business environment (Lees-Marshment and Wymer Jr, 2013). Further, it

generally helps the hospitality organization to focus on particular market segment so that they
can earn better results from these segments. Moreover, it is also necessary for the firm to set the
marketing mix elements as per the convenience of customers so that they can use the
organisation products and services whenever they are in need of. Through behavioural
segmentation, Hilton can focus on analysing the needs and preferences of the customers.
Evaluation of these needs will help in designing the strategies for the business. The target market
has to be selected with taking into consideration the environmental conditions.
TASK 2
2.1 Importance of components of marketing mix
One of the major components which comes at the time of preparing marketing plan is
various components of the marketing mix. Marketing mix is considered as a set of actions which
is generally taken by e business venture to promote the product in eyes of the customers. The
different elements which persist in marketing mix are Product, Price, Place, and Promotion
(Solomon and et.al., 2014). Nowadays, the elements of marketing mix has been extended and
different P's like people, process and physical evidence has also been included in the same.
It is necessary for the Hilton hotel and resorts to consider these elements before
promoting their services in the eyes of customers. Marketers of cited hospitality have to come up
with unique combination of marketing mix elements so that they can satisfy needs and demands
of their customers in an effective manner. Elements of marketing mix in relation with Hilton
hotel has been discussed down under: Product: The product which organisation are providing to their customers need to be
unique so that it attract audience at the first glimpse. It is also necessary for the venture to
enhance quality of services for better and effective results. Price: It is necessary for the cited venture to keep the price of their services within the
reach of the customers. Further, by considering the same, more middle class people will
be able to use organisation services (Cleveland, Papadopoulos and Laroche, 2011). Place: Cited firm has its operation throughout globe and their projects are generally set at
the prime location which attracts customers in an effective manner.

 Promotion: Mentioned hospitality venture can promote their products and services with
the help of different promotional tools like giving advertisement in newspaper, journals,
social media promotion, etc.
TASK 3
3.1 Role of promotional selling
Promotional mix is one of the element of 4 P's in marketing. This mix consist of public
relation, advertising, sales promotion as well as personal selling. Promotional mix budget
generally differ from one organisation to the another. Some of the major activities which Hilton
can consider has been discussed down under:
 Advertisement: It is the tool which is mostly used by cited venture in order to attract
their target customers towards the same. It is one of the paid tool which include
promotion of ideas to a large mass of individuals.
 Personal selling: This is treated as a oral presentation where firm can attract target
audience with the help of word of mouth (Mintz and Currim, 2013). Being a recognised
hospitality sector, firm usually avoid this type of activity because they have already
effective brand image whole around the globe.
 Sales promotion: This is one of the non-media marketing communication which is
usually used by Hilton hotel to increase the customer demand and also their productivity
in the competitive market. It includes giving discount coupons, sweepstakes, samples, etc.
This usually increases their revenue and profits (Roadshow presentation, 2015).
Illustration 1: Elements of Promotional mix

 Direct marketing: Firm also focuses on doing direct marketing with the help of using
different social media channels like Facebook, YouTube, Twitter, Instagram, etc. By
promoting their new dish and varieties in services on these social media channels will
certainly increase their goodwill and productivity in effective manner. Cited firm can post
their product and services details on constant basis to increase the popularity of their
services in the eyes of their target audience (Leonidou, Katsikeas and Morgan, 2013).
3.2 Advertising campaign for services
Advertisement campaign helps Hilton hotels and resorts to promote their existing and
newly launched services in the eyes of potential customers. Further, their exist number of
fundamental steps which can be useful by venture for increasing their revenue and productivity.
These steps are discussed down under: Market research: Hilton has to do environmental scanning with the help of different
analysis in order to identify their position that where they exist in the competition
environment. Moreover, for finding this, firm can undertake SWOT analysis, PESTLE
analysis, Porter five forces, BCG matrix, etc. Mentioned fiorm also need to scan their
environment at the time of starting their new operations in effective manner (Li and et.al.,
2013). If this is not taken into consideration then their decision can affect their
performance Budgeting: Hilton has to set the budget for their advertisement campaign that what will
be the maximum amount they will be spending in promoting their service. Their main
aim should be attracting large mass of individuals from the same. If their products and
services does not come in the eyes of individual then firm will not be able to make the
best of it. Setting objectives: The main aim of the advertisement should be stated and the same
should not influence the morale and perspective of customers. Further, using unethical
advertising will also influence their performance and competitors will get an upper hand
who are working in same industry.
 Designing of words: The quotations and punch lines should address the eyes of
individuals. Further, it should be written in the best font and colour to attract customers.
Further, their should exist creativity in advertisement (Wang, Chen and Chen, 2012).

Promoting the services with brand new concept will also attract audience towards the
same.
3.3 Roles which sales promotion and public relations play in the promotional efforts
Sales promotion is considered as an activity which is conducted by business enterprise in
order to sell products and services with the help of free samples or promoting the same with the
help of exhibitions. These sales promotion lead into immediate action, often in the form of
purchase, rather than of building the long term loyalty. These sales promotion generally helps
venture in effective manner. Some of its advantages are:
 Increase in short term sales
 Building up of long term market share
 Build new customers
These sales promotion are generally important because it increases the awareness of
brand in the eyes of customers, provide relevant information regarding the services and increase
customers traffic in effective manner. On the contrary side, public relation helps business
enterprise to make strong relationship with their stakeholders and legislators (Berinsky, Huber
and Lenz, 2012). Public relation can be made by Hilton by regularly getting in touch with their
stakeholders, conducting corporate events, etc. This process will certainly help cited venture in
increasing their customer base, profits, turnover and most important their brand image.
Sales promotion like in form of conducting tourism affairs, giving discount to customers
has eventually increases corporate image. On the contrary side, being in touch with customers
has helped firm to maintain sound relationship with them. This also assist venture in making their
customer base loyal towards different organisation products and services. Moreover, tour
operators also help Hilton in increasing their market share by tie-up with them (Brand
positioning, 2015). Generally, public relation does not help Hilton in selling their packages and
services.
Both parties are doing their work in effective manner to raise hospitality brand image and
also satisfying customers needs (Mintz and Currim, 2013). By giving effective services to clients,
they will become loyal customer for the firm and will try to use their services again and again.

REFERENCES
Journals and Books
Berinsky, A. J., Huber, G. A., and Lenz, G. S., 2012. Evaluating online labor markets for
experimental research: Amazon. com's Mechanical Turk. Political Analysis. 20(3). pp. 351-
368.
Cleveland, M., Papadopoulos, N. and Laroche, M. 2011. Identity, demographics, and consumer
behaviors: International market segmentation across product categories. International
Marketing Review. 28(3). pp. 244-266.
Dolnicar, S. and et.al., 2012. Biclustering overcoming data dimensionality problems in market
segmentation. Journal of Travel Research, 51(1). pp. 41-49.
Lees-Marshment, J., and Wymer Jr, W. W., 2013. Current issues in political marketing.
Routledge.
Leonidou, C. N., Katsikeas, C. S., and Morgan, N. A., 2013. “Greening” the marketing mix: do
firms do it and does it pay off?. Journal of the Academy of Marketing Science. 41(2). pp.
151-170.
Li, X. R. and et.al., 2013. Understanding China's long-haul outbound travel market: An
overlapped segmentation approach. Journal of Business Research. 66(6). pp. 786-793.
Mintz, O. and Currim, I. S. 2013. What drives managerial use of marketing and financial metrics
and does metric use affect performance of marketing-mix activities?. Journal of Marketing.
77(2). pp. 17-40.
Solomon, M. R. and et.al., 2014. Consumer behavior: buying, having, and being. Upper Saddle
River, NJ: Prentice Hall.
Wang, C. H., Chen, K. Y. and Chen, S. C. 2012. Total quality management, market orientation
and hotel performance: The moderating effects of external environmental factors.
International Journal of Hospitality Management. 31(1). pp. 119-129.
Online
Brand positioning. 2015. [Online]. Available through:
<http://www.marketingmagazine.co.uk/article/1221475/easyjet-heralds-resonant-brand-
positioning-profits-leap-51>. [Accessed on 23rd June 2016].
Principles of Marketing. 2015. [Online]. Available through:
<https://learn.saylor.org/course/bus203>. [Accessed on 23rd June 2016].
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Roadshow presentation. 2015. [Online]. Available through:
<http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/investors/results-
centre/2013/2013-q1-roadshow-presentation.pdf>. [Accessed on 23rd June 2016].
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