Marketing Report: Analyzing Marketing Strategies in Hospitality

This report provides a comprehensive analysis of marketing concepts and their application within the hospitality industry, using Thomas Cook as a case study. It covers key marketing concepts, the impact of the marketing environment (micro and macro factors), and the relevance of consumer markets in this sector. The report delves into the marketing mix (product, price, place, and promotion), examining pricing strategies and the role of the promotional mix, including advertising, sales promotion, and public relations. It also highlights the importance of market research and the planning of advertising campaigns, along with the use of various media marketing channels. Furthermore, the report discusses market segmentation and its importance, and concludes with an overview of the implementation of marketing plans, offering valuable insights into effective marketing strategies for the hospitality industry.

MARKETING IN
HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Concepts of marketing ...........................................................................................................1
1.2 Explaining the impact of marketing environment ...........................................................2
1.3 Relevance of consumer market in hospitality sector........................................................3
1.4 Explaining the reasons of developing different segments................................................3
TASK 2............................................................................................................................................4
2.1 Marketing mix components and its importance ..............................................................4
2.2 Different pricing strategies and policies suitable for company........................................5
TASK 3............................................................................................................................................5
3.1 Role of promotional mix .................................................................................................5
3.3 Sales promotion and public relation play an important role............................................6
TASK 4 .........................................................................................................................................7
4.1 importance of market research in hospitality industry.....................................................7
3.2 planning advertising campaign for service industry.........................................................8
4.3 different media marketing for appropriate product or service .........................................8
4.4 implementation of marketing plan....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is all vast concept and not limited to selling only . Firm takes care of consumer
satisfaction. Thomas Cook tours and travels is one of the largest group which is providing
services of tours in world (Tresidder, 2015). It provides packages of holidays in different ranges.
Company's success depends upon the quality of services provided by them. Current assignment
will cover concepts of marketing and its importance in hospitality industry. It will describe the
effect of micro and macro factors on marketing environment. Study will emphasise on the need
for developing various segments and marketing mix importance with its components.
Furthermore, report will explain pricing strategies followed by company, role of promotional
mix and its functions with reference to Thomas Cook.
TASK 1
Concepts of marketing
There are five concepts of marketing which are -
 Production concept - In this concept, customer will choose that product which are in the
budget of consumer . The importance of this concept is that , it is of low cost and used by
all class of people. For example parley G which is available in all sizes with basic price.
 Product concept - This concept refers regular improvement in the product and It
includes quality, quantity as well . Consumers always like the product with some new
features. This is important because without adding the new features, entity can’t retain
customers (Goffnett, Lepisto and Hayes, 2016).
 Selling concept - It means selling product with satisfaction of consumers. Company
follows various techniques to sell the product. It is a common method which is followed
in company. There focus is on sales of the product , not in customer wants. This is
important because company has to sell the products which they are making.
 Marketing concept - It refers to selling the product with consent of consumers. Under
this, firm retains customers by providing quality services. The brand of the product is
established and that's why customers are retained.
 Societal marketing concept – It means to fulfilling all the responsibilities towards
society while working. This is necessary because every organisation is engaged in
earning profit and ignoring the environment (Bowen and Baloglu, 2015).

Marketing concept which is best for Thomas Cook is product concept because by
making regular improvement in product firm can retain customers well. It will more attract
clients .
1.2 Explaining the impact of marketing environment
There are many factors which are micro and macro. Some they are
Illustration 1: Macro factors
Source: (Six Microenvironmental Factors That Affect Businesses, 2018)
 Suppliers - the supplier is one who is supplying the material to the company. They are
core part and having the abilities to hold the company because they are the only supplier.
Its effect is very much if the supplier is not doing the work then our product is not
distributed to retail shops.
 Customers – the customers are those who purchase the product. Their impact is huge,
without them firm can't make right kind of product and not able to satisfy consumers. The
firm (Six Microenvironmental Factors That Affect Businesses, 2018).
 Technological factors – if right kind of technology is not used then it will affect
marketing part of it. There is regular breakdown s then company has to suffer loss.
 Demographic factors - before opening the factory person should consider all the factors
like region, age, education level, cultural factors, etc. All these factors affect the business
very much. If people are not educated or cultural difference are there then it directly
affect the sales part.
 Economic factors - if the condition of recession is prevailing then it is not right time to
launch or start something new. Economic factors affect the marketing. People not having
enough budget at this time.

Thomas Cook also follows and consider all these factors before starting a new product.
All these factors affect their earning capacity of the firm (Udunuwara and Sanders, 2016).
1.3 Relevance of consumer market in hospitality sector
Consumer is king in market and consider the god. All the goods which firm make are
depended on them. They are important for hospitality sector. Industry is seasonal and the
shortage of employees is common. Tourist are consumers there and from them only they are
earning profit. The revenue is utilized in maintaining in developing this sector. The money
comes from government. The services which are used by the clients are source of money which
are used in work of the hospitality sector. If the consumer is happy with the work or services
provided by firm then he can become loyal all the time and retain as well (Pizam, Shapoval and
Ellis, 2016).
1.4 Explaining the reasons of developing different segments
Segmentation means fragmentation of department so that work will be in efficient
manner.
It is necessary because by making multiple departments the work will be divided and the
quality of the work will increase. Firm is targeting their customers and want to make the
presence in mind of consumer. Segmentation are of 4 types named as geographic, demographic,
behavioural and psycho graphic. By making these departments, firm will know the exact habits,
behaviour of choosing things, prices of product, age, gender and family. From these, hospitality
sector come to know the preference of the consumer (Gulbahar and Yildirim, 2015). The
segmentation made the work easier for this sector. The sector has chosen the demographic sector
and by selecting this, they are particular about their customers. This segmentations helpful in
identifying particular needs of consumers on the basis of their age and income. This helps in
satisfying consumers by offering their products according their requirements
TASK 2
2.1 Marketing mix components and its importance
Marketing mix includes, product, price, pale and promotion. There are 4 p's which are
included in this:
Product In this, company is making products or

services which are suitable for customers.
Focus is on satisfying the needs of clients.
Thomas Cook is also working on this. It
provides various services like tour packages in
low budget which are suitable to all classes
(Tresidder, 2015).
Price The rate decided by company is low so that
maximum people can get benefited from this.
They are attracting the customers by its
affordable prices. Thomas cook also set prices
which are in budget of the consumers. Cited
firm adopts price skimming strategy that helps
in gaining competitive advantage.
Place It is the most important place to be considered.
The working area is at that place where firm
can peacefully do business. Thomas Cook has
chosen the business area from which maximum
clients can get the benefits (Gulbahar and
Yildirim, 2015).
Promotion The promotion of the product and services of
Thomas Cook are advertising, social media,
word of mouth publicity, etc. All this
promotion are help company to grow and make
long run relationship with customers.
2.2 Different pricing strategies and policies suitable for company
There are various pricing strategies followed by different firms. Some of them are:
 Premium pricing – In this, firm decides the price which are more than contenders.

 Penetration pricing for market - In the early stage of business, firms are choosing this
strategy. It refers to selling at low price. In this, firm has to bear loss in its initial years
but later on, they have a strong position because mass consumers are with them
(Goffnett, Lepisto and Hayes, 2016).
 Economy pricing – Mostly, this type of strategy is followed by the suppliers of food and
retailers who are giving discounts. Company is focussing on the consumers who are
more price affective.
 Price skimming – In this entity provides products to consumers at lower rate and once
people start liking its products then it gradually increase cost of products. Thomas cook
adopts this strategy that helps entity in attracting many people towards the brand
(Goffnett, Lepisto and Hayes, 2016).
TASK 3
3.1 Role of promotional mix
Promotional mix refers to promoting product and ensure that they reach to customer well
it includes making aware about the product. Some of them are
 Advertising – it is the paid form of selling the products. Its visual affects position in the
mind of the consumer. For making it attractive company are using graphics and giving
the full information about the product (Tresidder, 2015).
 Personnel selling – it refers selling the product directly to the consumer. The daily
interaction make more helpful to understanding needs and wants of consumer.
 Sales promotion - it means how we are promoting the sales of the goods. There are
various methods which are used on different occasions. Some of them are discounts,
coupons, discounts, offers etc (Bowie and et.al, 2016).
 public relations – firm can make good public relation by building the image in market.
Firm always try to make long term relations with people so that maximum customer can
retain in market and become loyal to firm.
 Sponsorship – it refers to investing money on various activities to encourage the fresh
talent in the eyes of world (Walker and Walker, 2016).
Thomas cook is also following promotional mix so that all its services are used by customer
could satisfy them.

3.3 Sales promotion and public relation play an important role
There are different types of sales promotion. Some of them are
 Price- off - in this the prices are minimised for some time. It is mostly seen in areas
where the products are costly and to increase their sales they are following this strategy.
 Coupons – it refers to lowering certain prices of the product and only that person can
avail this service who has coupon in his hand. Mostly found in large stores where the
prices of the products are high (Goffnett, Lepisto and Hayes, 2016).
 Samples – this is very old technique used by the firm. Mostly in ea tables,
deodorants ,soaps etc. It is very expensive method. Most of the times it is successful.
 Discounts – it is very common technique used by firms to attract customers. In this
certain amount are off in the real prices.
Importance of sales promotion in context to consumer, producer, intermediaries from the
eyes of producer sales promotion is very necessary because when sales will maximise then only
they can earn more profit (Baker and Magnini, 2016). Producer makes the product for selling
purpose only. For this promoting the product is important. For attracting consumer the sales
promotion are needed. Through this they get opportunity to purchase more and more. For
intermediaries also it is important because by increasing sale of the product they will get more
commission.
Public relation can be used as a tool of sales promotion
There are many ways from which public relation firm can use as sales promotion tool.
These are described as below:
 Social media – on social media entity can regularly stay in touch with the customer. They
get to know the needs and wants of the clients. Firm can get feedback also and fulfil their
lacking points as well (Pizam, Shapoval and Ellis, 2016).
 Publications – nowadays consumers are more reading blogs , magazines and there firm
has given information about the product then they will influence by that. Through
writing regularly on company's blog interact with the consumers more.
 Speaking in conferences – telling about the product in events like conference and where
there is more renowned personality are sitting can earn more publicity.

 Improvisation of SEO - firm needs to make the platform of online search where
information about the product are given and visible to all (Udunuwara and Sanders,
2016).
 More interaction with the consumer – the more firm will interact with consumer resultant
is they are fully satisfied. When they will enter in the firm best quality services are
provided to them.
Thomas cook use different ways through which it can build long term customer
relationship . It is very necessary because if firm has to dominate in the market then this tool is
very effective (Ramkissoon, 2018).
TASK 4
4.1 importance of market research in hospitality industry
Research about market is important. It is very beneficial for organisation and without
market research there are chances of lacking behind from competitors. Research tells about the
data, facts and figures giving the information of market. Many firms follow this due to advantage
of moving ahead to competitors. In hospitality sector market research helps to know the current
position of market. By knowing this the chance of losses are minimum. The new laws can be
implemented and firm is not updated then there will be loss to firm. By making research, the
correct position of it (Fong and et.al., 2016). It involves the pricing strategies which are applied
by competitors. Without doing market research there is major risk in making the decision not
every time there are chance of earning profit sometimes it can be loss as well. The firms are
operating its task with applied research so that there decision are correct. The chances of loss are
minimised and firm can more satisfy the need of customer. Researchers doing work for the
company only. It is major task given to them because without the correct facts no one can take
decision correctly. Thomas cook also doing the research before starting anything because it helps
them to get accurate position of it (Bowen and Baloglu, 2015).

3.2 planning advertising campaign for service industry
Thomas cook company is planning for
starting the tour of visiting Egypt and the
offering the 10 days tour and first 100
customers will get the chance of getting 20%
discount.
The transportation are arranged by company
itself and giving the service of hotels also in
different range. One guide will be provided by
the organisation for giving the information.
4.3 different media marketing for appropriate product or service
There are various media for promoting the product or service and some of them are
 Print media – it means advertisements in newspapers, magazines, telephone directories
etc. newspapers are most common mode of sharing and getting the information and if
firm has to promote its product then it is the best medium (Bharwani and Mathews,
2016).

 Radio – earlier and now days also people are using the radio. All types of audience are
there to reach the target customers. It is one of appropriate ways to launch the product.
Any type of advertisement firm can do on this.
 Television -most common way to reach the consumer. All people who can't be on internet
are using medium as TV. It can reach the maximum people. For launching the product it
can be the best source and reach to more customer (Gulbahar and Yildirim, 2015).
 Direct mail - it includes flyers, letters, catalogues through which firm can reach customer.
many a times the advertisement of product are sent to wrong customers then at that time
it can be blocked by that person .
Thomas cook is using diverse media for different products and they are effectively implemented
in correct way as well. The company is using various offers for their services and getting success
in the task (Six Microenvironmental Factors That Affect Businesses, 2018).
4.4 implementation of marketing plan
For implementing the marketing plan there are various ways and some of them are
 Set right expectation - setting the high expectation is not correct because it will take time
to get success in implementation of plan. Understand the team members not to get upset
due most consumption of time. Thomas cook has to set right expectations so that it can
implement plan in effective manner (Udunuwara and Sanders, 2016).
 Make team and secure resources - for marketing implementation there is need for the
team and for that firstly decides who will be in the team which can help firm to reach the
target.
 Tell the plan – after making the marketing team make sure that all are aware of the plan
and what are targets to achieve. Team leader has to make sure that all member are equally
contributing in this (Pizam, Shapoval and Ellis, 2016).
 Build task in fragments – all tasks are fragmented that's why they are manageable by
every one . Company always have to ensure that it doest not create burden on employees.
This will help in satisfying people and they will contribute well in implementing
marketing plan effectively.
 for measuring success – success measurement is not easy task for that proper tools are
there and by applying them firm can know the correct position (Tresidder, 2015).
 Check regularly - by checking and monitoring firm can know where is deficiencies .

Changes can be acceptable – if some change are required then be ready to fulfil them they
are for the further betterment.
 Communicate results – after making all efforts let the team members celebrate their
success and congratulate them for their hard-work (Goffnett, Lepisto and Hayes, 2016).
CONCLUSION
From the above study it can be concluded the concepts of marketing are very important
for any business. It tells us about their benefits which are applied in real situation. Research
shows real position of firm and how to overcome risk. The promotional mix is ways are applied
by firm to promote their product. After making marketing plan need to implement it correctly.
There are many methods to sell the product through different media like social media, engaging
in public speaking, radio, TV and many more. Segments are developed for efficient working.
Pricing strategies followed by company.