Marketing for Hospitality and Tourism PDF

Chapter 1 Introduction to Marketing for Hospitality and Tourism Course Overview 1. understand the hospitality and tourism marketing process 2. Recognize developing hospitality and tourism marketing strategies 3. Understand how to develop the hospitality and tourism marketing mix 4. Comprehend manag...

Chapter 1 Introduction to Marketing for Hospitality and Tourism Course Overview 1. understand the hospitality and tourism marketing process 2. Recognize developing hospitality and tourism marketing strategies 3. Understand how to develop the hospitality and tourism marketing mix 4. Comprehend managing hospitality and tourism marketing. Learning Outcomes To analyze and apply the principles of the marketing mix (the 4 P’s: Product, Price, Place, Promotion) specifically tailored to the unique context of the tourism and hospitality industry. Tourism and Hospitality Marketing Tourism and Hospitality Marketing Is how segments of the tourism industry such as transportation, hotels restaurants, resorts, amusement parks and other entertainment and accommodation businesses promote their products or services  Tourism and Hospitality Marketing The four-P framework calls on marketing professionals to decide on the product and its characteristics, set of price, decide how to distribute their product, and choose methods for promotingAstheir Example: part of products People will its Quality not travel distribution Ingredie 15 plan, nts minutes to Jollibee Develope must have travel to a d restaurants Jollibee that are Products Marketing in the Tourism and Hospitality Industry Marketing is the process for getting a company’s product or services out to consumers. Hospitality marketing – takes a look at how segments of the hospitality industry includes businesses such as hotels and motels, food services, recreation outlets, tourist destinations, performing arts and spectators, sports, museums, amusement parks and gambling establishments Tourism marketing – the marketing initiatives have to highlight the value of the memories, make the collection of services easily available and add value through additional programming and other  Marketing in the Tourism and Hospitality Industry Product Refers to the services a company wishes to sell This could be flights in the case of an airline or rooms in the case of a hotel The range of product and service mix offered to a customers that have features and benefits. Example: Hotel – guest room, fitness center, pool, restaurants, valet services concierge, housekeeping service Restaurant - meals, actual food, host/hostess, and waiters Travel – experiences consists of a chain of products and services starting at the time of acquiring and ending upon coming back from the trip.  Marketing in the Tourism and Hospitality Industry Place Refers to the location where the customers buys the collection of services It is how the product will be made available to consumers in the market, selection of distribution channels, and partners. The location of a retail business is based mostly on accessibility to the end consumers. For services, place refers to the ease of access that customers have to a service this can involve a physical decision such as where to locate a hotel. It also involves determining which intermediaries or affiliates to use to help the hotel sells the services, for example, hotels.com  Marketing in the Tourism and Hospitality Industry Promotion Is the specific combination of marketing techniques such as advertising, personal sales, public relations, and other related activities. It gives details of the product and price. The key characteristics of a travel marketing strategy are. The method of communicating the information, the content of the promotion and the cost to the operator.  Marketing in the Tourism and Hospitality Industry Pricing Is the part of a comprehensive revenue management and pricing plan. The price has to match the product, but good marketing makes the price seem more attractive. Pricing also depends on multiple other factors like geographic location of the destination, seasonality, competitor pricing and government regulations. There are non-monetary elements to price. Some examples are the time it takes to search and assess alternative products or services and the convenience of location.  Marketing in the Tourism and Hospitality Industry People Key to the success of the transaction It includes those who interact with guests – managers, receptionists, concierge staff, cleaners, spa staff, waiters and other staff Process Refers to the procedures, mechanisms and flow of activities that occur when the customer and the business interact with each other Physical Evidence These are ways in which businesses can demonstrate their marketing claims and customers can document their experience such as stories, reviews, blog spots, or in-location signage and components. Importance of Marketing to the Tourism and Hospitality Industry The hospitality industry is known as a difficult industry to succeed in. Restaurant failure rate estimates to 20% -30%. Importance of Marketing to the Tourism and Hospitality Industry  Maintaining a focus on the customer is extremely important if a business wants to achieve success. Marketing campaigns should be conducted to promote the product and service it aims to provide. How the establishment treats its customers once they Importance of Marketing to the Tourism and Hospitality Industry  Marketing campaigns will however not work on their own, if the product on offer is not of good enough quality, is not engaging enough or innovative enough. Importance of Marketing to the Tourism and Hospitality Industry Quality of service, a business must be ready to invest in good employees. They should be properly trained and motivated. Many customers can attest that, at times. Marketing Management and Philosophies Marketing concepts or marketing management philosophies are the philosophies used by the businesses to guide their marketing efforts. A business use to identify and fulfill the needs od its customers, benefiting both the customer and the company. Marketing concepts are driven by clear objectives such as cost efficiency, product quality, and customer’s need fulfillment. Marketing Management and Philosophies Production Concept Works on an assumption that consumers prefer a product which is inexpensive and widely available. Increase in the production of the product makes the companies get the advantage of economies of scale. Higher production = Lower cost. A low price may attract new customers, but the focus is just on production and not on quality A customer not always prefers an inexpensive product over others. There are many other factors which influence his purchase decision. Marketing Management and Philosophies Product Concept Assumes that consumers will favor products that have quality, performance and innovative features Under this concept, the focus of marketing is to create continuous product improvements. Concentrating to company’s product may lead to myopia. Consumers may possibly be satisfying the same need but wanted a completely different product. Marketing Management and Philosophies Selling Concept Concentrates on making every possible sale of the product, regardless of the quality of the product or the need of the customers. The main focus is to make money Companies following this concept may even try to deceive the customers to make them buy their product Marketing Management and Philosophies Marketing Concept Works on an assumption that consumers buy products which fulfill their needs. Businesses following this concept conduct researches to know about customers’ needs and wants and come out with products to satisfy the same better than the competitors Customers’ satisfactory survey. Marketing Management and Philosophies Societal Marketing Concept Focuses on society well-being as well. The business focuses on hot to fulfill the needs of the customer without affecting the environment, natural resources and focusing on the society’s well being. This philosophy believes that the business is part of the society and hence should take part in social services like the elimination of poverty, illiteracy, and controlling explosive population growth and other environmental issues. Marketing Management and Philosophies Holistic Marketing Concept Considers business and all its parts as one single entity and gives a shared purpose to every activity and person related to the business A business, like a human body, has different parts, but it’s only able to function properly when all those parts work together towards the same objective. Key Players in the Tourism and Hospitality Industry 1.Private and Non-profit Sector – this sector consists of travel agencies or tour operators' associations, financial and banking institutions, educational institutions and the insurance companies. 2.Public Sector – is composed of the provincial tourism organizations that work together to create more attractive tourism products. Tourism Promotion Board (TPB) – is the government corporation dedicated to the promotion of the Philippines as a meeting and convention destination. Key Players in the Tourismnd Hospitality Industry 3.Transportation – a good transportation system is important and beneficial for the tourism industry. 1.Roads – Trains, taxis, jeepneys, bus, and trikes are the main modes of public transportations. 2.Airlines – are experiencing increasing demand both locally and internationally 3.Cruise – is becoming a popular and successful component of the tourism industry 4.Railways – a land railway system operated by the Philippine National railways, called the Metroten. Philippines have invested large amount of money for their trains to solve Key Players in the Tourismnd Hospitality Industry 4.Accommodations – consists of hostels, bed and breakfast, tourist residence, holiday dwellings, timeshare apartments and campsites. 5.Food and Beverages – These are companies involved in the process, package and distribution of fresh and prepared foods, in addition to prepackaged foods. Both alcoholic and non- alcoholic beverages are part of this sector Key Players in the Tourismnd Hospitality Industry 6.Attractions – classified into natural and manmade 7.Events and Conferences – events are vital because of its tourist, social and cultural functions as well as to the local and national development. 8.Intermediaries – tour operators and wholesalers, travel agents, travel specialist and Web-based intermediaries are important players in the tourism industry. 9.The Tourists – it is this people that bring revenues to the tourism and hospitality industry as a whole. “Marketing is so basic that it cannot be considered a separate function. It is the whole of business seen from the point of view of its final result, that is, from the customers point of view…Business success is not determined by the producer, but by the customer.” -Peter Drucker Hospitality Marketing The art of science of finding, retaining and growing profitable customers. The Marketing Process Understanding the Marketplace and Customer Needs Marketing Core Concept a social and managerial process by which individuals and groups obtained what they need and want through creating, offering and exchanging products of value of with others. Marketing Core Concept 1. Needs, Wants and Demand Needs Wants Demands Are how people These are wants Basic human communicate their from a specific requirement needs products that are Desired by a backed by an s customer that is not ability and State of felt required for us to willingness to buy them, survive. deprivation Marketing Core Concept 2. Products and Services Anything that can be offered to satisfy a need or want. It can be in a form of goods or services. Marketing Core Concept 3. Value, Satisfaction and Quality Value A feeling of happiness or content with something. A fulfillment of a need or want. Customer Value difference between the benefits that the customer gains from owning and/or using a product and costs of obtaining the product. Marketing Core Concept 3. Value, Satisfaction and Quality Satisfaction Is the consumer’s estimate of the products overall capacity to satisfy his or her needs. Customer Satisfaction Determined by how well the product meets the customer’s expectations for that product Marketing Core Concept 3. Value, Satisfaction and Quality Quality The totality of features and characteristics of a product that bears on its ability to meet customer needs. Marketing Core Concept 4. Exchange, Transactions, and Relationships Exchange Transaction Relationship Is the act of These are basic Marketing obtaining a unit of exchange is an agreement Focuses on building desired object between a buyer relationships with a from someone and a seller to company’s by offering exchange profitable something in something of customers. return. value. Marketing Core Concept 5. Markets A market is a set of actual and potential buyers who might transact with a seller. MARKETING MANAGEMENT Marketing Management Is the art and science of choosing target markets and building profitable Marketing relationships with them. Manager Is a person who is involved in marketing analysis, planning, implementation, and control activities. Five Marketing Management Philosophies 1. Production Concept Holds that the customer will favor products that are widely available and low in cost. Therefore managers should focus on production and distribution efficiency. Five Marketing Management Philosophies 2. Product Concept Holds that the customer prefer existing products and product forms, and the job of management is to develop good versions of these products. Five Marketing Management Philosophies 3. Selling Concept Holds that the consumers will not buy enough of the organizations products unless the organization undertakes a large selling and promotion effort. Five Marketing Management Philosophies 4. Marketing Concept Holds that the key to achieving organizational goals consist in determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors. Five Marketing Management Philosophies 5. Societal Marketing Concept Holds that the organization’s task is to determine the needs, wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumers and society’s well-being.