CH1 Introduction to MKT Hospitality Industry PDF

MKT2182 Marketing for the Hospitality Industry CH1 Introduction to Marketing Ekaterina Vlad Marketing Concepts Marketing Concepts Marketing Marketing Process Marketing Manager’s Job Marketing Mix Needs, Wants, Demands Market...

MKT2182 Marketing for the Hospitality Industry CH1 Introduction to Marketing Ekaterina Vlad Marketing Concepts Marketing Concepts Marketing Marketing Process Marketing Manager’s Job Marketing Mix Needs, Wants, Demands Market Marketing Orientations 3 INTERNAL Marketing Marketing – the process by which companies create value for customers and society, resulting in strong customer relationships that capture value from the customers in return. (Kotler, Bowen, Makens, & Baloglu, 2017, p.31) 4 INTERNAL Marketing Process 5 INTERNAL Marketing Manager’s Job Marketing manager’s job is to find, attract, keep and grow target customers by creating, delivering, and communicating superior customer value. 6 INTERNAL Marketing Mix (Red bike marketing, n.d.) 7 INTERNAL Needs, Wants and Demands A human need is a state of felt deprivation Wants are how people communicate their needs When backed by buying power, wants become demands 8 INTERNAL Product A product is anything that can be offered to satisfy a need or a want. What are some travel and tourism “products” that you can list? 9 INTERNAL Value, Satisfaction and Quality Customer value is the difference between the customer benefits from owning and/or using a product and the costs of obtaining the product Customer satisfaction is perceived value delivered relative to a buyer’s expectations Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy customer needs 10 INTERNAL Market A market is a set of actual and potential buyers who might transact with a seller. 11 INTERNAL Customer Relationship Management Customer relationship management (CRM) is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, engaging, and growing customers. CRM involves managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty. 12 INTERNAL Customer Loyalty A loyal customer: ✓ Believes in the value of your offering ✓ Considers you the best available choice ✓ Continues to choose you over the competition Name three brands you are loyal to? 13 INTERNAL Customer Retention Example 14 INTERNAL Customer Life-Time Value The LTV of a customer is the stream of profits a customer will create over the life of his or her relationship to a business. (KC Karnes, 2020) 15 INTERNAL Exercise: Customer LTV calculation Calculate LTV & Customer LTV for any product of your choice. 16 INTERNAL  Marketing Orientations 17 INTERNAL Marketing Orientations Marketing orientations - concepts under which organizations design and carry out their marketing strategies. Societal Production Product Selling Marketing Marketing 18 INTERNAL Marketing Orientations 1. Production Concept Belief that consumers will favor products that are available and highly affordable, and therefore management should focus on production and distribution efficiency. 2. Product Concept Belief that consumers will favor products that offer the most in quality, performance, and innovative features. 3. Selling Concept Belief that consumers will not buy enough of the organization’s products unless the organization undertakes a large selling and promotion effort. 19 INTERNAL Marketing Orientations 4. Marketing Concept Belief that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors. 5. Societal Marketing Concept Belief companies should consider not only consumer wants, company profits but society’s wellbeing too. It includes customer collaboration & participation, globalization, shared value and sustainable marketing. 20 INTERNAL Societal Concept Example 21 INTERNAL Discussion 1. Define marketing in your own words. 2. Who should study marketing and why? 3. Many managers view the purpose of business as making a profit, whereas some view the purpose as being able to create and maintain a customer. How can these alternative viewpoints affect a company’s interaction with its customers? 4. If a manager views the purpose as being able to create and maintain a customer, does this mean that the manager is not concerned with profits?? 23 INTERNAL  References 24 INTERNAL References Karnes, KC. (2020, July 30). Customer Lifetime Value: What is it and How to Calculate. https://clevertap.com/blog/customer-lifetime-value/ Kotler, P., Bowen, J.T., Makens, J.C., & Baloglu, S. (2017). Marketing for hospitality and tourism (7th ed.). Harlow, UK: Pearson. Learning Theories. (2017). Maslow’s Hierarchy of Needs. Retrieved from https://www.learning- theories.com/maslows-hierarchy-of-needs.html Red Bike Marketing. (n.d.). The 4Ps Marketing Mix. https://redbikemarketing.com/marketing/marketing-mix-4ps/ 25 INTERNAL