Premium Inn's Marketing Strategies: A Comprehensive Report

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Marketing Essential
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INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................4
P.1, M.1 Analysing Roles and responsibilities of marketing function in the marketing
environment............................................................................................................................4
P.2, M.2, D1 Importance of roles and responsibilities of marketing that relates to the other
functional unit of organisation...............................................................................................6
TASK 2......................................................................................................................................9
P.3, M.3, D2 comparing the marketing mix to the marketing planning to attain the business
objectives................................................................................................................................9
TASK 3....................................................................................................................................12
P.4, M.4 evaluating marketing plan for the Premium Inn....................................................12
CONCLUSION........................................................................................................................14
REFERENCES.........................................................................................................................15
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INTRODUCTION
With the increase in the competition in business world, marketing world is getting more
focused and connecting with consumers which make marketing more personalised. In this
regards, the present report is based on the marketing essential of Premium Inn hotels. It is the
British hotel chain and UK’s largest hotel brand with more than 785 hotels. The report will
highlight Roles and responsibilities of marketing function in the marketing environment. The
report will also include importance of roles and responsibilities of marketing that relates to
the other functional unit of organisation and Key elements of marketing functions in wider
context. Further, they market mix or 7p’s are being compared with other organisation to make
marketing plan in attaining business objectives. The report will present the marketing plan for
premium Inn new service.
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TASK 1
P.1, M.1 Analysing Roles and responsibilities of marketing function in the marketing
environment
Marketing: Marketing can be defined as the activities of the organisation to promote the
buying and selling of the product and services. Advertisement, selling and delivering of
products or services to another customer or business is included in marketing process.
Marketing is also termed as the process through which organisation build relation with client
and provide them products and eservices which can satisfy their requirement.
In today’s fierce competitive business world, marketing is the foremost essential process
which helps in increasing the sales of the organisation, increases revenue and competitive
advantage in the market. Premium Inn being a leading hotel chain in UK needs effective
marketing in order to increase the sales of its services so as to being competitive in UK
hospitality sector. Marketing plays an essential role in promoting the vision mission and
objectives of the organisation in order increase the sales and profit of the sales. Marketing
plays an essential role and responsibility in Premium Inn to analyse and identify the needs of
the customers, current market trend of hospitality industry. It helps the firm to produce and
offer the services to the customers and guests accordingly (Krantz, 2017). Making strategies
and decisions are also one of the essential foundations of marketing. These are the basic
functions of marketing in an organisation. The marketing function plays a crucial role in
increasing the creditability and brand image of Premium Inn in market. Following are the
main roles of the marketing functions in Premium Inn:
Marketing examination: Examining the market assist in increase the knowledge and
understanding regarding the services that customers required. It helps in assessing the market
trend that is beneficial to deliver the high quality services with the changing requirement to
the customers. Marketing provides information related to competitors so that management
can make decisions and strategies to mitigate the risk.
Market policies: It is one of the main responsibilities of marketing function in business to
formulate and execute different strategies and policies for the potential customers and quality
of the services that is provided in hotel. Effective strategic management in firm is essential to
link between chance and goals in order to run the operations in efficient way.
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Evaluating market scenario: It is very essential for business to regularly identify the market
growth and opportunities. Marketing managers has a responsibility to monitor the market
scenario and trend to change or improve the services offered by organisation. The marketing
scenario includes the changing trend, social and economical factors, external and internal
elements which can have great impact on the business operations of Premium Inn.
Segmentation of market: It is an approach for the marketing functions which allows the
marketing team to segment the market into small groups. It is a beneficial approach which
allows the marketing team to identify the potential customers and promotes the services
efficiently (Loong, 2015). This approach is also useful in properly deliver the services of
hotel to the market which is best applicable as per the needs and criteria of hotel.
Customer relationship management: It is termed as the approach or strategy of the
organisation to manage and analyse customer’s interaction and data in order to identifying
their behaviour, thinking and requirement from the services of hotels. It helps in managing
the services of the hotels as per the changing trend and requirement of the guests and
potential customers in order to achieve the goals of the business. The marketing department is
responsible to formulate and execute different decisions and policies in order to manage the
customers in order to retain them.
Managing the branding: It is one of the main functions of marketing to manage the brand
value of the hotel in market. The customers will go for the hotel that can provide best value to
their money. It is the responsibility of the marketing function to promote and maintain the
brand image of the hotel in the market. It leads to increase the customer base and attain the
results such as productivity and profitability.
Budget: It is an important part of the business operations which is associated with different
operations of the organisation. It is an important marketing function to formulate the budget
of the marketing activities which includes promotional campaigning, advertisement etc. the
budget assist the marketing department to manage and control the cost of the operations as
per the budget. Marketing manager also evaluate the effectiveness of different marketing
activities as per the budget.
Apart from this, there are various others elements which are involved in marketing functions
such as marketing research, improving the product life cycle, financial activities etc. It is the
responsibility of marketing function that are required to be effectively managed in order to
evaluate and determine the area to be improved in business operations in effective manner.
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P.2, M.2, D1 Importance of roles and responsibilities of marketing that relates to the other
functional unit of organisation
Marketing function plays an important role within premium Inn to define and analyse the
roles and responsibilities of such functions. These marketing functions are beneficial in order
to manage and control different department and other functional unit in organisation to
produce and offer the quality services in effective manner. This market functions is beneficial
for business operations to improve the operational activities to satisfy the requirement of both
the customer and market (Waheed and Yang, 2017). The roles and responsibility of the
marketing functions help in increasing growth and development of the hotel in terms of
profit, production and success. In this regards, marketing function also have to manage by
marketing manager to keep strategies that are linked with organisational departments and
functional unit in organisation.
Marketing and operational management: The success of the Premium Inn is depend on the
standard of the operations in order to provides services which are effective in order to satisfy
the needs and requirement as per the marketing trend and guest of the hotel. The involvement
of the employee, effective working environment, culture and producing services are essential
elements in management of operations. Marketing function plays an important role in
managing strategies and decisions through interrelated in order to identify the factors that are
related to the customer satisfaction, standard, employees etc in order to control the operations
activities more efficiently. The organisation can improve the operational process in providing
efficient service to the guest and potential customer as per the marketing trend and
requirement of the customers. It helps the business to ensure in producing and offering the
service and promoting business values to achieve the market share and profitability.
Marketing and HR management: The human resource management of Premium Inn plays
an effective role in managing different operations and employees of the organisation. They
are beneficial in improving the performance and productivity of the employees in order to
increasing the efficiency of the customer. Human resource management have essential
function of recruitment and selection of qualified and skilled employees who can contributes
to the success and growth of the organisation. The marketing manager requires to coordinator
with the HR department in order to make strategies and decisions to recruit and select the
employees who possess the knowledge, skills to meet the standard of the hospitality trend and
customers expectations (Chiasson, 2015). On the basis of the decisions, HRM conducts
training and development scissions for the employees to meet the market requirement. Thus,
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the marketing function will help HR team to provide information related to business activities
and other requirement which HR will fulfil in order to improve the business performance and
profitability.
Marketing and financial management: Financial department of Premium Inn is responsible
to manage and control the expenses of the business operation of hotel. They are liable to
prepare the budget for all the deportment and functional units and allocate the funds to them
accordingly. Financial management considered different activities which include employee’s
salary, internal operations expenses and marketing activities expenses. In this regards, the
marketing department ask for the fund to the financial department in order to carry out their
marketing and promotional activities efficiently (Sala, 2015). The marketing and finance
functions required to make effective strategies to carry out the cost from the marketing
activities that leads to increase in revenue and profit for the organisation.
Figure 1 Marketing function with other functional unit
Key elements of marketing functions
There are various elements in marketing functions in Premium Inn which are as followed:
Research: Examining the market help a business to effectively identifying the needs,
preferences and perception in order to deliver the quality services to customers. It also helps
the organisation to get the information and data related to the competition so that an effective
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strategy can be made which helps in analysing the requirement of customers and market in
order to improve the services offered to the customer in hotel.
Pricing: The organisation has to consider the pricing strategy and different policies such and
discounts different offers in hotels. It leads to analyse the price in the market which is
affordable to customers. It is a beneficial way to manage the prices of the hotels effectively in
order to increase the profit of organisation.
Storage: It is the function of the marketing which helps in controlling the level of inventory
in organisation (Sirajuddin and Kumar, 2018). It is essential in utilising the resources such as
human force and other resources to keep it safe and readily available for the use in
operational procedure to reduce the cost of the inventory.
Distribution: It is the process through which the services are being distributed in market. It
helps the customers to get access to the services that have been offered by business in
effective manner.
Selling: It is the marketing function which includes selling of the services of an organisation
at different platform which includes B2B, B2C and retail outlets. In hotel industry, the
services is are sell through advertisement or getting direct contact from the customers in
hotel.
Planning: Managers of the marketing department formulate strategies and make plan in order
to improve and enhance the effectiveness of the production, financial, sales and promotional
and business activities. It helps in continuous improvement of the business functions to
achieve the goals and aims of the organisation.
Thus, it can be said that the marketing function plays an important role in the organisation. it
can also be analysed that marketing function works co-ordinately with other functional units
in order to improve and develop the overall performance, effectiveness, productivity and
profitability of organisation.
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TASK 2
P.3, M.3, D2 comparing the marketing mix to the marketing planning to attain the business
objectives
Marketing mix: It is marketing approach which assists in analyses different aspects of
market in order to make marketing strategies and planning for the business. It is effective
approach that management that assist the resources at right place to improve efficiency. There
are various elements of the marketing mix which helps the management to make effective
decision and strategies for the marketing planning. In this regards, Premium inn is going to
launch a new service of the premium e-card which allows them to automatic check-in and
check it. It helps there in saving their time and increases customer experience. To compare
the ways in which organisation are use marketing mix strategies, Hilton Hotel is also
explained with Premium Inn. Hilton hotel is one of the largest hotel and resorts chains which
also use marketing mix to make the marketing mix strategy. It assists in identifying their
differences within process in more effective manner.
Figure 2 Marketing mix
Product: Being a service organisation they are required to focus on their services that are
offered to the customers and improve its quality and effectiveness. It is essential for the
organisation to satisfy the requirement of the customers and in increasing the customer base
for the business. The new services of Premium Inn of the new E-card must be effective in
terms of quality and results. The new service must be effective enough to attract the
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customers and satisfy them which are essential in the hotel services businesses. Along with
this, Premium Inn is provides superior services off night stay to their customers. However, on
the other hand, Hilton hotels are famous is providing luxury services like extended stay suits
and vacations etc. In order to provide customer an effective experience of staying in the hotel,
they launched Hilton Honour programmes. It is the special services for the loyal customers
which allow the customers to have check-in and check-out facilities, online room key and
mapping facilities. The hotel maintained the quality of their services as peer the feedbacks of
the customers and satisfaction Index.
Price: The pricing strategy should be effective which can be as per the services that had been
provided in the hotels. Pricing of the hotels can have a major impact on the customers. Thus,
the price of the new services must be cost effective, reliable and as per the brand which. The
loyal customers will pay the prose which brings value to their stay at hotels (Mocevicius, R.,
2015). The effectiveness of the new services will help in allowing the organisation to naked
the premium pricing for the customers. However, Hilton hotel has accepted the premium
proving strategy as it targets the high income group and upper class customers. The price of
the Hilton also varies as per the locations. For example the Hilton resorts situated at beaches,
lake has different procaine policy than the hotels which are situated near airport. It can be
said that, the exclusive hotels always maintained exclusive pricing as well.
Place: It can be said that Premium Inn is one of the leading hotel brand in UK with more than
785 hotels. The strategy of place is the physical site from where the organisation sells their
products and services. Many a times, the buying decisions of the custom are highly
influenced with the location of hotels as well. the organisation should have effective place
strategy, as Premium Inn are opening more hotels in UK at different lavations which helps in
increasing their effective and improve the customer base. However, Hilton has used effective
place strategy as or present in more than 103 countries with more than 5100 properties. It can
be seen that organisation has seen considerately high growth in their services. The hotel has
focused on the western countries as it targeted the high income group customers. Hilton has
different, marketing and distribution strategies which focused on the best service those results
in effective location for their new hotels.
Promotion: Every organisation requires effective promotional activities for their operations;
the promotional strategies should be able to promote the vision, mission and objectives
statements of the firm. The promotional strategy of the Premium Inn should be effective to
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attract more customers towards the new services in hotel. It can be said that sales marketing
is the new marketing strategy for the sales. Premium Inn also adopted the promotional
strategies like discounts on products, vouchers, different offers, e-mails which assist in
retaining the customers of hotels as well. On the other hand, Hilton hotels adapted different
promotional activities through target the exclusive business customers over the globe. the
Hilton groups has also collaborated with different restaurants, Payment banks which is
included in its promotional strategies of Hilton.
People: In the service industry, effective human resourced power is required in order to
manage different operational activities and provide effective services go the customers and
guest of the hotels. Premium Inn has targeted the upper class customer’s and tourist fir the
new services. The loyal customers are also the target customers for the hotel. On the other
hand, Hilton customers are depends on the loyal and upcoming market customer.
Physical evidence: It is related to provide the effective information related to the service of
the organisation, where the customers can contact in case of any grievances and queries.
Premium Inn has selected the best locations to provide the new services and make strategies
to improve the distribution of the services in its selected locations based on the customers of
those locations (Waheed and Yang, 2017). While the Hilton hotels and resorts have great
presence of its working properties around the globe. The hotels have also collaborated with
different hotels booking sores and websites in order to increase its reach and evidence of the
market.
Thus, both Premium Inn and Hilton hotel can make effective marketing strategies by
implementing 7Ps elements in order to improve their abilities to improve the services and
achieve the success. Premium Inn can use this strategy in order to launching their new e-card
services in target marker.
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TASK 3
P.4, M.4 evaluating marketing plan for the Premium Inn
Marketing plan can be termed as the statement that helps the Premium Inn in able to operate
and advertise their operational process effectively. This plan will assist in determining the
future needs and requirement of business and customers as per the change in market. Below
presented the marketing plan for new services:
Marketing Plan of Premium Inn
SWOT analysis: This approach assist in examining the internal and external factors of the
organisation such as its strength, weakness, threat and opportunity. The SWOT analysis of
Premium inn are as below:
Strength: the hotel has effective profitability in market. It has strong presence in UK market
which assists in attracting more customers. The company had effective brand image in
market.
Weakness: The hotels have inadequate hygiene which leads to lowering down their image.
The hotels have limited global presence in comparison to other market leaders.
Opportunity: The hotels can enter a new market with its strong brand image and profitability
(Robinson-Dooley, Kirk and Riapos, 2016). Hotels also include new decor, ambience and
upgrade the room.
Threat: the hotel had facing a fierce competition from the global leaders and new entrants.
Other than this the hotels is also facing some legal issues.
Objectives: The premium hotel has effective customer base with its large presence in UK
market. The new service of e-card will helps in increasing the customer base and marker
share effectively.
Strategy: The hotel will target the medium and upper class level for the new services. The
loyal customers and new market customers will be the target customers for the hotel. In
addition to this, the hotel will adopt the premium pricing strategy for the new services.
Action plan: It includes the allocation of budget for the launching of the new services and its
promotional activities. The promotional activity will include through the advertisement in
magazine, newspapers and websites.
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