Marketing in Hospitality: UK Sector Analysis and Strategies

This report offers a detailed analysis of marketing strategies within the UK hospitality sector. It begins by defining marketing concepts and assessing the impact of the marketing environment, including political, economic, social, technological, environmental, and legal factors. The report then eval...Read More

Marketing in Hospitality

Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................3
AC1.1: Define marketing and discuss any 4 concepts............................................................3
AC1.2: Assess the impact of the marketing environment on the industry.............................4
AC1.3 Evaluate the relevance of consumer markets in the industry................................................5
AC1.4 Discuss the rationale for developing different market segments.....................................5
Task 2.........................................................................................................................................6
AC 2.1: Assess the importance of the components of marketing mix to the industry...........6
AC 2.2: Analyse pricing strategies and policies in relation to the industry......................................7
AC 3.1: Evaluate the role of the promotional mix.................................................................7
AC 3.3 Analyse the role that sales promotion and public relations play in promotional
efforts:....................................................................................................................................8
AC4. 1: Discuss the relevance of market research to services industry operations..............9
Conclusion..................................................................................................................................9
Task Four..................................................................................................................................10
3.2.........................................................................................................................................10
Undertake market research for an appropriate product or service............................................10
4.3 Analyse the suitability of different media for marketing an appropriate product or service.11

Introduction
The tools and techniques related to marketing play a key role in building the brand, creating
new consumer base and also maintaining the brand loyalty. This is all the more essential in
hospitality firms as the need is to serve the consumers in a direct manner (Kotler and
Armstrong, 2016). The present study has thus paid focus on varied marketing aspects involved
in hospitality sector of UK.
Task 1
AC1.1: Define marketing and discuss any 4 concepts.
American Marketing Association defines marketing as the set of institutions and activities
meant for producing, communicating as well as exchanging the offerings so that value can be
created for consumers and society at large. There is an existence of four concepts in
marketing that are as follows;
Marketing concept states that the main purpose of any firm is to assess consumer needs and
then adapt itself so that the needs can be met in an effective manner than the competitors (Lee
and Vachon, 2016). For example, chain restaurant usually try to alter their menu so as to meet
the needs of different nations such as done by M.C. Donald’s in India so as to suit the
requirement of vegetarian consumers.
Then is the societal marketing concept which holds that marketing tactics should be such that
they are able to deliver value to consumers and maintain well-being of society. For example,
Starbucks in the present times is focusing on ensuring that its cups are fully sustainable so as
to meet the needs of a safe and healthy environment (Starbucks invests $10m to create truly
sustainable cups, 2018).
Selling concept is the one which holds that consumers may not buy enough of company’s
products if there has not been an aggressive promotional strategy. For example, this strategy
can be adopted by hotels during lean season so as to attract the guests to make a stay. Heavy
discounts can thus be provided to them.

AC1.2: Assess the impact of the marketing environment on the industry
Factors Positive impact Negative impact
Political Overall stable political environment which
helps in smooth running of UK hospitality
sector.
UK has good relations with Brazil which
has favoured the overall operations on
account of coffee beans import.
Brexit issue has led to a decrease
in purchasing power of
consumers.
Economic There has been an increased growth of
labour market followed by consumer
spending. This has led to continuous
flourishment of UK hospitality industry.
Unemployment is rising within
UK that has led to decrease in
wage structure (Geppert, Matten,
and Williams, 2016)
Social Trend of vegetarian consumption on a rise
hence it gives opportunity to hospitality
firms for producing products.
There is a very abrupt change in
the taste and references of
consumers hence it is difficult to
find as to what exactly will
motivate them and what should
be the offerings of a company.
Technological London is a technologically advanced
nation which has favoured the growth of
Technology has increased the
chances of privacy issues hence it

the industry. may led to legal penalties if the
situation is not handled properly.
Environmental Environmental sustainability norms are in
trend which can be used an opportunity by
the firms. This can be done by introducing
itself as a firm that adheres with
environmental friendly norms (Grendy and
Moxon, 2013).
The companies are required to
adhere with the norms of carbon
footprint etc. that may increase
the overall cost factor.
Legal Due to legal pressure the firms are required
to focus on making tourism activities,
travel, accommodation, meals etc safer for
the employees.
It is essential that each and every
member of the firm is trained
with the laws associated with
their work so as to avoid any
legal issues.
AC1.3 Evaluate the relevance of consumer markets in the industry.
As per the consumer black box theory of Consumer buying behavior is impacted by a large
number of factors being personal, psychological, cultural and social. Same applies to
hospitality industry as well. The hospitality firms are thus required to have awareness about
the said traits as well as overall consumer behavior process so as to enhance total revenue,
brand equity as well as change the product portfolio as per the needs of consumers. However
this process has a set of its own disadvantages such as same steps for each type of product or
service which cannot work for hospitality sector as all services are quite different from each
other (Gretzel and et.al., 2015). Moreover consumer buying beaver in hospitality is not a
simple one as large number of complicated psychological variables are involved such as
motivation, perception, memory, attitude among others.
AC1.4 Discuss the rationale for developing different market segments
different segments Basis Benefits in relation to
targeted marketing and
positioning.
Geographic Its basis is classifying the
markets into various
geographical areas as same
Allows big companies to
target needs and wants of

strategies cannot be applied
at different places.
consumers in different
regions.
Demographic It is based on varied
variables such as age group,
gender, occupation etc.
As the demographics are
quite easy to understand
hence it can be easier to
build in a marketing plan
from management, to sales
and consumer service staff.
Behavioural Its basis is the consumer
loyalty shown by them
towards a brand that helps
them to classify in small
groups and each group has
a presence of individuals
that are loyal towards the
brand.
Quite useful in mature
markets where the firm
focuses on understanding as
to what activates a non-user
and converts medium user
into a heavy one.
Physiographic- It is based on the overall
lifestyle of individual; his
attitude; interest as well as
value that aids in helping
the marketers to classify
them in small groups
(Lammgård and Andersson,
2014).
Provides an increased
insight into the needs and
motives of consumers as a
person.
Task 2
AC 2.1: Assess the importance of the components of marketing mix to the industry
Component of Marketing Mix Related Application In Thomas Cook Travel
1. Product Core product is organising package holidays that
is inclusive of travel, food, hotel, insurance as well

as car hire.
2. Pricing strategy used The packages are available at reasonable prices
which help the firm to stay relevant abd
competitive.
3. Place or Channel of distribution The stores of Thomas cook are available in form
of physical stores as well as on online level.
4. Promotional elements
recommended
Has an active profile on social media
It is involved in sponsoring big events that
increases it brand visibility
Uses tagline being Let’s go.
AC 2.2: Analyse pricing strategies and policies in relation to the industry
Two main pricing strategies that are followed by Thomas cook are value pricing where price
is kept in response to external factors such as recession etc. and the products are there to
provide value to the consumers. This pricing strategy makes the employees feel that they are
being provided with value for money services and makes then purchase the offerings of the
company.
There is also a presence of Competitive pricing which is set on the basis of what is being
charged by the competitors. As the tour operator industry is a highly competitive one hence
this strategy aids in curbing of competition and also meets up the targets related to increase
sales revenue and profit figures.
Task 3
AC 3.1: Evaluate the role of the promotional mix
Thomas cook has always adhered with aggressive promotional strategies such as sponsoring
for big events lie football matches, carrying out public relations activities; starting social
media campaigns through the usage of various taglines among others. These have played a
key role in many areas. For example, it was on account of its social medium promotions that
the company posted a profit of 50 million pounds after a time span of 5 years. There was also
a build-up of strong demand for its branded hotels in UK and north Europe region. Overall
bookings also rose up by 1 percent and average prices were up by 3 percent by end of
September (Hobbs, 2015). Reports have further suggested towards an increase in consumer
awareness about the products and services that are offered by Thomas Cook.

AC 3.3 Analyse the role that sales promotion and public relations play in promotional efforts:
a) Define any five types of sales promotion and explain how sales promotion can be
important to the producer, intermediaries and consumers.
 Free gifts may attract the consumers to make a purchase while intermediaries get a
chance to clear up the dead stock that is lying with them. The company however gets
a good word of mouth publicity which may attract other clients towards the products.
 Discounts help the consumer in saving the money which can be used elsewhere. The
company and intermediaries benefit as the existing buyers can be convinced to
increase their overall purchase and also accelerate the overall usage. It further helps in
increasing the overall brand loyalty towards the product and service offering of the
company.
 Contests motivate the employee to be a part of the services offered by company.
These are important for the company as well as intermediaries to spreads awareness
about the brand. It further benefits as consumers penetrate faster and are in situation
to buy more services.
 Continuity programs such as frequent flyer program by Thomas cook airlines ensures
that consumers use the services of the company as and when they get an opportunity
to fly. The company as well as intermediaries benefit as they help to retain old
customers in an effective manner.
 Financing is also a best strategy for those who wish to travel at a good location but do
not have money for the same at that time. The consumers get a chance to enjoy their
trip at a minor processing fee and less interest while dealers can liquidate the service
faster.
b) State and explain five (5) ways that public relations can be used as part of the promotional
tool in Thomas Cook
 Media relations can be used by management of Thomas cook to circulate messages
about the activities of the company. This can help to enhance the awareness of
consumers towards the firm and also generate positive word of mouth publicity.
 Newsletters in print or email form can be a good means for promoting the business
and communicating consumers about available product and service offerings. The
issue of newsletters on regular basis can be utilised for strengthening the personal

connections with the consumers. Information of value can further be offered to them
through this technique.
 Brochures and catalogues help to keep the consumers think about the business and
also give them a confidence towards the brand followed by driving the consumers.
 Social media is a very high public relations tool for Thomas Cook. This is as it serves
as a place where the management can interact with the consumers, work on their
queries and also get a list to hundreds of suggestions with respect to their product and
service offerings.
 Thomas Cook has been involved in many forms of sponsorship activities that not only
generate good will for the company but also increase the overall loyalty.
AC4. 1: Discuss the relevance of market research to services industry operations
Market research activities are quite essential for hospitality firms. This is as these help to
identify the overall problem areas that are being faced by the company. It further helps to find
out about diverse needs and preferences of consumers which can help the company to serve
them in a better manner. The management further gets chance to know about the on-going
business trends hence new services can be provided to the consumers. These can be related to
novel food and beverage offering or providing additional services while they are heading for
a tour (Kaminski and Rink, 2015). Competitor analysis can further be carried out that can be
used to find out what strategies are being utilised by them and targets can then be set for
overall growth and development. Overall there can be making of a well-informed market
decisions about the services and hence effective strategies can be developed for the same.
Conclusion
From the above report it can be concluded that marketing concepts and strategies such as
selling, production, buying concept as well as consumer behaviour plays an important role in
hospitality sector due to direct involvement with the consumers. However the need is to
assess the pestle factors before forming pricing strategies and carrying out activities related to
sales promotion and public relations. This can only be done when market research is done in
best manner.

Task Four
3.2
Flyer in separate file.
Undertake market research for an appropriate product or service
Market research on Educational tours for adult students (above 18 years)
 Aim: To assess the benefits of Educational tours on adult students.
 Research type: There will be a use of qualitative research type to find out the impact
of attending educational tours on the overall life of students.
 Data collection: This will be done the use of primary as well as secondary data
sources. Primary data will be inclusive of administrating survey questions to the
students who have recently attended educational trips. This will aid in finding out
where the trip has aided in increasing the knowledge base of students or not.
Secondary data will focus on journal and newspaper articles, books etc. written by
authors so as to assess the overall impact of Educational tours on adult students.
 Data analysis: Thematic analysis will be used to assess the collected data by creating
themes on the topic and carrying out a discussion on it.
Questionnaire
Do educational tours interest you?
 Yes
 No
Have these tours brought an increase in your over knowledge about the places you visited?
 Yes
 No
 Somewhat
What skills you learned during the tour
 Being organised
 Time management
 Socialisation
 All of the above
Plan an advertising campaign for a services industry operation.

Do you feel such trips should be conducted on a regular basis?
 Yes
 No
Suggest some ways by which these trips can be improved .
4.3 Analyse the suitability of different media for marketing an appropriate product or service
different media for
marketing in Thomas
cook
suitability
Broadcast on
Television and radio
by ad commercials.
Television offers visual stimulation and creativity which is most
required to attract consumers to the business of tour and travels.
On the other hand, radio offers local reach within London and
also involves for repetition of the commercials.
Print through
Newspapers and
magazines
Newspapers are quite affordable for the company and provide
easy reach to consumers. Magazines can focus on the needs of
niche consumers due to its high selectivity (Lillqvist and
Louhiala-Salminen, 2014).
Digital and
Interactive through
Internet, email and
mobile devices
Act as a direct touch point for making contact with potential
clients of Thomas cook to sell their tours.
Social Media by
Facebook, twitter,
instagram
Low cost means to promote the packages of Thomas cook and
ensures towards increased consumer engagement.
As per my belief, the best form of media that will suit in marketing of Thomas cook tour is
social media strategy as most of the people these days have an active presence on social
media and hence connection can be made with them easily. It can further act as a channel for
effective customer enquiry and problem resolution.
AC4.4 Evaluate the implementation of the marketing plan for an appropriate product or
service
The work during the exhibition could have been improved by

 Setting proper aim and objective in the very start of plan so that all those involved in
it can be made aware of it.
 Other than this the need is also to identify the exact consumer base for which the
marketing plan is being created.
 The need was further to divide work responsibilities among staff members and
appoints a leader for each group who reported directly to the management.
 The need was further to make a written record of all the activities that were carried
out so that flaws etc. can be judged in coming future.
 Implementation of the marketing plan also requires communication in a transperant
manner to ensure success.
Conclusion
From the above report it can be concluded that marketing activities in the area of hospitality
are of huge importance for the overall success of business. The need is to implement them in
the proper manner so that fruitful results can be obtained. This is all the more essential for
Thomas cook as it has a presence on a worldwide level hence the need is to understand that
different marketing strategies are required for every market.

References
Geppert, M., Matten, D. and Williams, K. eds., 2016. Challenges for European management
in a global context: Experiences from Britain and Germany. Springer.
Gretzel, U. and et.al., 2015. Smart tourism: foundations and developments. Electronic
Markets. 25(3). 179-188.
Grundy, M. and Moxon, R., 2013. The effectiveness of airline crisis management on brand
protection: A case study of British Airways. Journal of Air Transport Management.
28. pp.55-61.
Hobbs, J., 2015. Thomas Cook brings ‘renewed customer focus’ to its marketing with new
campaign. [Online]. Available through:
<https://www.marketingweek.com/2015/12/16/thomas-cook-brings-renewed-
customer-focus-to-its-marketing-with-new-campaign/> [Accessed on 5th July 2018].
Kaminski, P.F. and Rink, D.R., 2015. Synchronization of Transportation Strategies with
Demand: A Prescriptive Model. Springer.
Kotler, P., Armstrong, G., 2016. Principles of Marketing. Pearson.
Lammgård, C. and Andersson, D., 2014. Environmental considerations and trade-offs in
purchasing of transportation services. Research in Transportation Business &
Management. 10. pp.45-52.
Lee, K.H. and Vachon, S., 2016. Integrated Supply Network and Business Sustainability.
Palgrave Macmillan, London.
Lillqvist, E. and Louhiala-Salminen, L., 2014. Facing Facebook: Impression management
strategies in company–consumer interactions. Journal of Business and Technical
Communication. 28(1). pp.3-30.