Lesson 1: Introduction to Marketing PDF

Lesson 1 : Introduction to marketing For a layman, “market” is a place where buyers and sellers meet personally to finalize the deal after personal inspection of goods. A market is asset of actual and potential buyers who might transact with a seller. Types of Market Different types of Market based...

Lesson 1 : Introduction to marketing For a layman, “market” is a place where buyers and sellers meet personally to finalize the deal after personal inspection of goods. A market is asset of actual and potential buyers who might transact with a seller. Types of Market Different types of Market based on Kotler, such as consumer, business, global and nonprofit. 1. Consumer Market This refers to those who buy goods for their personal use or purpose such as buying a personal computer to accomplish one academic requirements. Goods bought in consumer markets can be categorized in several ways: a. Fast Moving Consumer Goods These are high volume, low unit value, fast repurchase. Ex: ready-to-eat meals, newspaper etc. sold quickly and relatively cheaply. b. Consumer Durables goods that do not need to be purchased very often and last for at least three years. These have low volume but high unit value. Consumer durables are often divided into: 1. White Goods - large and not portable (refrigerator, microwave,air conditioner) 2. Brown Goods - small electronic goods, are portable and semi-portable electronic appliances (Personal computer, DVD players,games console) c. Soft Goods Nondurable (not long-lasting) goods as represented especially by textile products Soft goods are similar to consumer durables, except that they wear out more quickly Example: clothes and shoes d. Services This refers to a transaction in which no physical goods are transferred from the seller to the buyers. Examples: hairdressing, dentists, and hospitality services. 2. Business Markets These institutions of people buy industrial goods either for the purpose of using in business operations. Also known as B2B marketing 3. Global Markets A marketing strategy used for mainly by multinational companies to sell goods or services internationally.  It is sometimes used to refer overseas expansion efforts through licensing, franchises and joint ventures. 4. Non profit and Government Market A type of organization that doesn't earn profits for its owner. Ex: Foundation The money earned is used in pursuing the organization’s objectives. Operates in both public and private sectors like churchesm public schools, public charities, hospitals etc. Definition of Marketing CustoMer Analysis AdveRtising MarKet SalEs PromoTion PrIce InterNet TarGet Marketing is the organization’s task to determine the needs,wants and interest of target markets and to deliver the desired product/service more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being. According to Harry L. Hanson marketing is the “process of discovering and translating consumer needs and wants into product and service specification, creating demand. According to Philip Kotler, “The Father of Modern Marketing”, marketing is working with markets attempting to actualize potential exchanges, a human activity directed at satisfying needs and wants through the exchange processes. There are several basic components underlying marketing, namely: 1.Needs - Things we must have or the basic needs. 2. Wants - Things that we don't really need but would like to have. 3. Potential exchange - Where buyers and sellers physically meet and exchange goods and services. 4. Human Activity - It involves the flow of goods and services from producer and consumers. 5. Demands - Demands are human wants that are backed by buying power, an urgent request. Consumers view products as bundles of benefits and choose products that give them the best bundle for their money. DIFFERENT ASPECTS OF MARKETING Nature of Marketing 1.) Consumer-oriented process The basic objective of marketing is to fulfill the needs of human beings. 2.) Starts and Ends with the Customer Marketing is about satisfying the customer needs; it is very essential for the marketer to collect relevant information about customer choices and preferences about the product or services. 3.) Guiding Element of Business Marketing is considered as an essential element in the development of every economy. An economy which is market driven will definitely raise the standard living of the people. 4.) System-oriented process Marketing is an input-output process. This means that there is a whole lot of interaction between marketer and customer in the process of marketing. It is a process of receiving inputs of marketing from the environment. 5.) Goal-oriented Process No business can be successful unless it has a goals to achieve. Marketing is one of the most important activities that organization performs, setting proper goals is very essential. 6.) Exchange Process Marketing is a dynamic process of exchange of goods and services between sellers and buyers. It also a exchange information about goods and services between the sellers and buyers. Importance of Marketing Marketing helps the organization to reach the objective into the realization in order for them to become more effective in marketing aspect that will guide them to survive in the state competition of business. Marketing Philosophies 1. Marketing Concept It is a management orientation which holds that the key task of the organization is to determine the needs and wants of the target market and to adopt the organization to delivering the desired satisfaction more effectively and efficiently than its competitors. The Basic Components of Marketing Concepts are: Consumer Orientation It refers to the organization culture process and system aimed at understanding customer needs strategically and developing products and services that provide satisfaction to the consumer and consumer needs strategically and developing products and services provide satisfaction to the consumer in ways that yield profitably to the business. Integrated Marketing This strategy aimed at unifying (bring together) different marketing methods such as mass marketing, one to one marketing and direct marketing. Marketing Research and Long-term Planning and Development Keeping pace with market trends is never easy. It is important to acknowledge that industry is ever changing and in order to stay ahead of the curve and competitors passing by you you need to be able to move with the times for the benefit of long term business planning. 2. Selling Concept This is a management orientation which assumes that consumers will either buy or not buy enough of the organization's products unless the organization makes a substantial effort to stimulate their interest in its product. LESSON 2: HOSPITALITY SERVICES MARKETING Definition of Service Philip Kotler - “A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything its production may or may not be tied to a physical product”. William J Stanton - “Services are separately undefiable essentially intangible activities which provide one satisfaction and not necessarily tied to the sale of a product or another service to provide the service may or may not require use of tangible goods however when you touch uses required there is no transfer of title or permanent ownership of this tangible goods”. The Concept of Service Service is an act of courtesy not only providing what the customer wants but giving them beyond their expectations. 1.) Friendliness It is the most basic of all customer needs. It is usually associated with being greeted politely and with courtesy. 2.) Understanding and Empathy The service provider should put oneself in the customer's shoes and act to fulfill their need. 3.) Fairness The need to be treated fairly is high up on most customers' list of needs. 4.) Control Control represents the customers' need to feel as if they have an impact on the way things turn out. This brings confidence in the customer's mind. 5.) Options and Alternatives Customers need to feel that the other avenues to getting what they want are available. 6.) Information Customers need to be educated and informed about the products, policies and procedures they encounter when dealing with your company. GROWTH OF SERVICE SECTOR The following can be noted as some of the implications of changes in the service operations: 1. Growing demand for many services; 2. Greater competition 3. Innovation through the application of new and improved technologies; 4. Evolution of customer needs and behavior; and 5. Introduction of better marketing strategies. SERVICES MARKETING It aims to demonstrate the benefits and building brand awareness most effectively after the sale. It is the process of researching and promoting the non-physical goods known as services. HOSPITALITY MARKETING Hospitality Marketing is centered on thinking about the business in terms of customer needs and satisfaction. Hospitality marketing takes a lookout different sectors of the hospitality industry develop marketing to promote their products or services resulting in an increase in revenue. (REVFINE 2022) HOSPITALITY MARKETING ORIENTATION 1. Supplier Provider Orientation In the provider orientation approach, the hospitality industry focuses on internal operations, activities and procedures and guests are expected to adjust to the hospitality offerings instead of the offerings being adjusted to the guests. 2. Sales Orientation This orientation or philosophy believes in cut-throat competition and concentrates on forceful sales through competitive pricing. Here, the service provider does not bother about the profits. This concepts also has a limitation of standardization of products and services. 3. Promotional Orientation This orientation has given importance to the promotional activities like advertising, personal selling, sales promotions, public relations, etc. 4. Marketing Orientation The marketing orientation or the customer orientation focuses on the needs and wants of the guest in the hospitality services. CHARACTERISTICS OF SERVICE MARKETING 1. Intangibility 2. Inseparability - cannot be separated from the service providers 3. Heterogeneity 4. Perishability - services can’t be stored for later sale or use 5. Ownership - there is no ownership or title passes from the service provider to the customer TYPES OF MARKETING IN SERVICE INDUSTRIES 1.) External Marketing - The transaction between the marketer and the customer. - External marketing represents the promises which the organization makes to its customers with regard to the products and services they offer. 2.) Interactive marketing - Marketing is an interaction between the buyer and the seller at a particular point of time. - Customer oriented market bar it is important to know the preferences, likes, and dislikes to provide the right kind of product or services. 3.) Internal marketing - Internal marketing is a very significant aspect of service marketing. The marketing process that enables the marketer to deliver promises to the customer is called internal marketing. - Internal marketing is extremely important for the success of any business or the employers have to effectively sell internal product (job) to the internal customer (employees). HOTEL CUSTOMER AND PRINCIPAL EXPECTATIONS Type of service Type of customer Principal expectations Hotel Guest Provide a clean room. Provide the secure room. Treat me like a guest. HOSPITALITY SERVICE ENCOUNTER 1. Arrival of guest at the entrance 2. Greeting 3. Reception 4. Luggage handling 5. Trip to room 6. Entry into the room THE SIX S’s OF SERVICE ENCOUNTER The hospitality provider must ask question on: 1. Specification - describing what, when, where and how the service is provided. 2. Staff - who the service staff are, what skill does the staff have, how committed the service personnel etc. 3. Space - where the service happens, adequacy of the space, appropriateness of the space for service etc. 4. Systems - information adequacy, coordination between various departments 5. Support - what kind of financial, human, and other support reward system, technology, employing training, supervision etc. 6. Style - attitude, emphasis on quality by the service provider. DETERMINANTS OF SERVICE QUALITY 1. Reliability 2. Responsiveness 3. Competence 4. Access 5. Courtesy 6. Communication 7. Credibility 8. Security 9. Understanding Knowing the Customer 10. Tangibles LESSON 3 CONTENT HOSPITALITY MARKETING MIX MARKETING MIX - is a term used to describe the combination of tactics used by a business to achieve its objectives by marketing its product or services effectively Marketing Mix by Jerome McCarthy: 1. PRODUCT It is the actual item that a consumer purchases. 2. PRICE One of the most important elements in marketing mix it is the only element of marketing mix which generates a turnover of the organization. The amount of money or goods for which a thing is bought or sold. 3. PLACE It refers to contact between the service provider and the person who gets the benefits of the service example the consumer All such channels that are available between the firm and the target market. 4. PROMOTION A tool of communication used to inform the target market customer about the goods and services to facilitate the exchange process. Extension of 4P's- 7P’s According to Stevie Langford (2021) as marketers we know that it is foolish to underestimate the power of planning. For most of us it means it is necessary to create a suitable and effective marketing strategy. The four piece paved way for two modern academics Booms and Bitner who in 1981 so three additional factor that serve a great purpose: physical evidence, people, and process or known as 7P’s 5. PEOPLE - It refers to anyone directly or indirectly involved in the business side of enterprise. People are also the heart of every business. 6. PROCESS - It describes the series of actions or elements that are involved in delivering product or service to the customer. 7. PHYSICAL EVIDENCE - is the last extension of marketing mix (7 P's) physical evidence is about proof of purchase. Ex: Logo, website branding, social media, packaging of the product etc. Encompasses the overall existence of your brand. The Marketing Mix is a term used to describe the combination of tactics used by a business to achieve its objectives by marketing its product or services effectively to a particular target group.  Marketing Mix is an integral part of business which needs to make sure that they are marketing. The Right Product to The Right Person to The Right Price in The right place and at The right time The marketing mix originally developed by Prof. Neil Borden of Harvard University has six elements- product planning, pricing, distribution, promotion, servicing, and market research. These were later reduced to four elements by Mccarthy product, price, place and promotion. Marketing mix is the controllable marketing variables that firm uses to pursue the sought level of sales in the target market. Target market are the buyers of the goods. They can be present product users or they can be prospective buyers being targeted by the marketing organizations.