MKTG608: Hilton Hotel Services Marketing Strategy Analysis Report

This report provides an analysis of Hilton Hotel's services marketing strategies, covering aspects such as product categories, target markets, core benefits, and the nature of its service offerings. Hilton, as a leading international hotel chain, employs various marketing strategies, including defensive, aggressive, flanking, mainstream, and niche approaches, to maintain its competitive advantage. The analysis also delves into Hilton's use of cost leadership as a generic business strategy, focusing on minimizing costs to increase profits and market share. The report references academic sources to support its findings, offering a comprehensive overview of Hilton's approach to services marketing and its strategies for attracting and retaining customers in the competitive hospitality industry. Desklib provides access to this and many other solved assignments for students.

Managing services, services marketing 0
hilton hotel
Managing services, services marketing

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Contents
Product category...................................................................................................................................2
Target market........................................................................................................................................2
Core benefit...........................................................................................................................................2
Nature of product..................................................................................................................................3
Support of marketing strategy...............................................................................................................3
Generic business strategies...................................................................................................................3
References.............................................................................................................................................4

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Hilton is one of the leading hotels in service and hospitality industries. It is an international
hotel chain. Hilton was founded in 1919. It offers authentic and up-to-date experience to the
guests. Hilton has more than 570 properties across 6 continents. Hilton is a global leader of
hospitality. The hotels have skilled professionals who work together to deliver excellent
services. It is the vision of hotel to provide hospitality by delivering unique services.
Product category
Hilton includes various categories of service offering. Hilton makes the most of stay for customers by
offering the services and amenities expected by customers. It is an American hospitality company
which franchises a brand portfolio of hotels. It includes more than 5200 properties. The Hilton Hotel
offers
 Conrad hotels and resorts
 Canopy by Hilton
 Curio
 Hilton
 Double Tree by Hilton
 Hilton Garden Inn
 Hampton by Hilton
 Homewood Suites by Hilton
 Hilton Grand vacations
 Tru by Hilton
 Waldorf Astoria hotels and resorts
Target market
Hilton targets customers of both primary and secondary market. The primary market consists of the
potential buyers of hotels. The primary target market includes the customers who are more likely to
use services of hotels such as businessmen and families. Most of the revenue comes to hotel from
the primary market only. The secondary market has the next greatest potential to use services of
hotel in the near future (Pastiu & Muresan, 2015). The secondary market has also potential to
influence someone else to use services of hotel. This market includes the future primary buyers.
Their way of selecting hotel is usually different from the customers of primary market.
Core benefit
The core benefits provided by Hilton to the customers include room upgrades, internet access,
complementary gym access, late checkout and guaranteed room availability. The room upgrade
service is provided to the customers who are having membership. The customers can upgrade to
enhanced rooms subject to availability. The internet access is provided to the customers
complementary along with their stay (Holt, Alix, Thompson & Maltby, 2016). The gym access is
provided to the customers limited to their stay. The regular customers get the guaranteed late stay.
The guests also get the guaranteed room stay if they book by 3pm and 72 hours prior to arrival.

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Nature of product
The services offered by Hilton make stay more enjoyable. The nature of products offered by Hilton
covers which includes business convenience such as phone service, meeting rooms, printer, photo
copying services, video conferencing service and more (Berry, 2016). The business class is something
which differentiates from competitors. The services for family’s ease and convenience are high
chairs, family packages, cribs and children’s menu. For the comfort and accessibility of guests Hilton
provides baggage storage, laundry service, lounge, ATM, currency exchange service, room services
etc. (Baker & Magnini, 2016). The accessibility needs are also provide by Hilton such as accessible
rooms, parking, elevators, meeting rooms and swimming pools.
Support of marketing strategy
Hilton uses various marketing strategies such as aggressive, flanking, defensive, mainstream
competition and niche.
 The defensive strategy is used by Hilton to focus on the existing customers. It is used to
protect market share and profitability and positioning. It helps company to stay ahead from
the competitors. The company introduces new services to attract customers.
 The aggressive marketing strategy includes active programs to expand operations in the new
markets. This strategy includes analysing, defending, prospecting and reactive marketing.
 The flanking strategy is used by Hilton to displace competitors in the market. This strategy is
useful to capture the market which is not well served earlier by other hotels (Dabholkar,
2015).
 The mainstream strategy directed towards a broad group of target audience.
 The niche marketing strategy caters the needs of particular segment of customers. It
promotes and sells products to the specialised segment of market. It has probability of
success.
Generic business strategies
The generic business strategies are important to gain competitive advantage. Hilton makes use of
cost leadership. It is all about minimising the cost of delivering product and service to customers.
There are two ways to use this strategy. First is to increase profits by reducing costs. The other is to
increase market share by charging low prices while generating profits. The profits can be generated
through economies of scale. This approach has advantage like entry barriers. As a result, the
competitors cannot provide services at low level of cost. The cost leadership used by Hilton is broad
in scope as it provides service in different parts of country (Ogbari, Dayo & Ibidunni, 2018).

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References
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality marketing and
building the constituency model for hospitality marketing. International Journal of Contemporary
Hospitality Management, 28(8), pp.1510-1534.
Berry, L.L., 2016. Revisiting “big ideas in services marketing” 30 years later. Journal of Services
Marketing, 30(1), pp.3-6.
Dabholkar, P. A. (2015). How to improve perceived service quality by increasing customer
participation. In Proceedings of the 1990 academy of marketing science (AMS) annual
conference (pp. 483-487). Springer, Cham.
Holt, A.R., Alix, A., Thompson, A. and Maltby, L., 2016. Food production, ecosystem services and
biodiversity: We can't have it all everywhere. Science of the Total Environment, 573, pp.1422-1429.
Ogbari, M.E., Dayo, A.T. and Ibidunni, O.S., 2018. Concise Adoption of Generic Business Strategies,
Virtues for Accomplishing: Corporate Mission in Multinational Firms in Nigeria. Canadian Social
Science, 14(1), pp.9-19.
Pastiu, C.A. and Muresan, M., 2015. The Analysis Of The Relationship Between Marketing Strategies
And The Performance Of Small And Medium Sized Businesses In Romania. Annales Universitatis
Apulensis: Series Oeconomica, 17(2), p.66.