Unit 8 Marketing in Hospitality Assignment Help
Table of Contents
In this era of highly competitive business environment, every business organization is putting a major emphasis on their marketing. Marketing has an immense role in the growth of every business organization of different industry. It is considered as a vital tool in order to establish growth and development of any service organizations such as hotels, restaurants, etc. One of the major functions of the hospitality marketing is to comprehend the needs, wants, requirements, etc so as to enhance the market share of the organizations engaged in the hospitality industry.
This report is commissioned to provide detailed comprehension regarding various aspects of hospitality marketing such as concepts of marketing in the service industry, market segments, components of the marketing mix, the significance of promotional mix, marketing cycle in the service industry, marketing plan, etc. This report also put major efforts in providing market research for appropriate product or services along with stating the suitability of different media for marketing.
The hotel or service industry is highly influenced by the role of marketing in meeting up the needs of consumers. The hospitality industry mainly comprises of various kinds of products such as restaurants, accommodations, dining, leisure, etc. There are various customer retention methods which are also utilized in order to enhance the effectiveness of the product and services provided in the hospitality industry. For instances, customer retention processes are one of the vital activity under marketing of The Ritz-Carlton hotel. They have implemented regional marketing approach by incorporate local voice into whole plans and objectives which are to be accomplished by the organization (Hsu, C.H. and Powers, T., 2008).
As per the marketing theory provided by the Theodore Levitt, it is essential for the marketers to innovate the products and services by evaluating the present marketing trends. The similar approach has been utilized by various hotels in this respective industry. These elements are the major cause for the growth of various renowned hotels such as Hilton Group of hotels, Holiday Inn, Sheraton, etc. it is essential for the hospitality organizations to understand the dynamic competitive environment and accordingly adopt the changes in the customer’s taste and preferences, purchasing power, lifestyle, etc. Therefore, an effective marketing helps the organizations to understand these elements efficiently (Hsu, C.H. and Powers, T., 2008).
Marketing environment has a significant impact on the growth and development of the hospitality industry. Marketing environment highly influences the industry as it comprises of both internal and external business environmental factors. It is important for the business organization to consider both the internal and external business environmental factors and its far-reaching impact on the hospitality industry. The marketing environment is comprised of both the Macro and Microenvironment. Any significant change in the macro or microenvironment leads to a severe impact on the industry. For instance, during the time of recession, the customer does not prefer to spend excessively for international holidays, vacations and traveling as the customers consider it as a luxury (Hsu, C.H. and Powers, T., 2008).
Therefore, even potentials customers also prefer to alter their consumption pattern to domestic holidays or short city breaks. Similarly, businessmen also chose the lowest prices to attain an accommodation for their business travel. Not only that, but there are also several factors such as consumer spending power, the level of disposable income, exchange rates, etc in marketing environment extensively impact the hospitality industry. The low consumer spending power, huge difference in exchange rates, etc restricts and constrict their purse string for spending lavishly. Thus, it is very transparent that marketing environment highly influenced the hospitality industry (Hsu, C.H. and Powers, T., 2008).
The hospitality industry is mainly customer centric and they are considered as the core part of this respective industry. Consumers are also considered as the key elements in determining the growth and development of the whole industry. Consumer culture is a vital part and concentrates on the sociological and psychological impact on spending and buying behavior of the customers. Consumer buyer behavior in the hospitality industry is considered as operations of personal influences along with external environmental forces which are presented by a generic model which reproduce the behavioral patterns of hotel consumers. It is also considered as a reflection of various types of stimuli (Geddie, M.W., DeFranco, A.L. and Geddie, M.F., 2005).
As per the notions of various authors, it is the accomplishment of trade-off among consumer and competitors orientations which assist in achieving the desired goals and objectives. Therefore, many hotel organizations are endeavoring to attain equilibrium between the two in order to get the best of both the worlds. Similarly, the approach of the value chain is also crucial in maintaining long-term relations with the customers. In that context, Holiday Inn is well renowned among its customers for providing good value chain along with delivering maximum value at fair prices (Geddie, M.W., DeFranco, A.L. and Geddie, M.F., 2005).
Market segmentation is a systematic process of categorizing the one or more homogenous groups of marketers and customers in a particular market. It helps in focusing on a specific group of people whose have common wants, needs, and expectation. When organizations implement market segmentation, then organization identify the groups of customers with suitable marketing mix in order to arrange the products, place, price, brand, physical evidence, environment, etc. It becomes more effective when it comes to the hospitality industry. The hotels may produce a high level of sales in a market where they have monopolistic conditions through segmentation (Wedel, M. and Kamakura, W.A., 2012).
The step towards building effective market segmentation is to identify base for segmenting the market. There are various variables which are utilized for the purpose of market segmentation. Those variables associated with the consumer demographics, psychographic, geographical and behavior. Therefore, the market segmentation is divided as geographic segmentation, demographic segmentation, value-based segmentation, psychographic segmentation and behavioral segmentation. The hotels of UK can segregate the hospitality market on the basis of stated segmentation in order to develop effective marketing strategies so that it can accomplish its organizational goals and objectives (Wedel, M. and Kamakura, W.A., 2012).
The marketing mix is one of the major activities for every business organizations engaged in the hospitality industry. The four major components of the marketing mix are product or services, price, place, and promotion. There is a great importance of all these elements of marketing mix. The product and services of the hotel industry are highly perishable and indivisible in nature. Thus, it is essential for the marketers to put a major emphasis on producing an exclusive combination of marketing which is capable of achieving the demands of the consumers. While framing the product strategy, hotels must focus on offering unique selling points in their products or services (Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L., 2010).
Place element in marketing mix also plays a vital role as it refers to the process through which the service actually provided to the end consumers and that can be ensured by utilizing an effective distribution channel. It will help them in delivering the service in right time. The pricing strategy must also be effective so that it can give tough competition to the rivals and ensure profitability of the business organizations. Similarly, promotion is also essential to boost the sales with the help of effective advertising and promotional strategies. Without, all these elements of marketing mix, it is difficult for the hospitality organizations to ensure sustainability in this highly competitive market (Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L., 2010).
As per the pricing theory, it mainly comprises of cost, demand or competition based. The pricing elements assist in framing the financial objectives that have to be achieved by the business organization in order to achieve larger market share. The leading hospitality organizations utilize the pricing policies of demand-oriented along with competitive pricing strategies. If small hotels around big hotels charge high prices, then it leads to implementing the same principle. On contrary, if there is an area wise reduction in pricing, then the same concept is utilized by the hotel (Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L., 2010).
The pricing strategies of the hotels are mainly framed and implemented on the basis of demand and supply which compels the hotels to increase and decrease their prices accordingly. For instance, when London Olympics held in 2012, a majority of the hotels in London city has decreased their prices in order to gain maximum customers. Therefore, competitive situations also compel the hotels to implement competitive pricing strategies so that it can fulfill the norms of demand and supply. Apart from this, certain factors such as seasonal fluctuations and increasing competition also influence the pricing strategies. In such conditions, the majority of the hotels of UK follow the ethical norms while charging their customers (Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L., 2010).
The promotional mix has great importance in the growth and development of the UK hotel industry which includes the undertaking of endeavors to deliver their products from business to the end consumers. There are various promotional strategies which are implemented by the hotels in the UK. Promotional strategies help the hospitality business organization to aware its potential customers regarding their products and services. It also helps in boosting the brand element of the organization. Not only had that, but the elements of sales promotions also led to improving the level of sales. For instance, the promotional strategy of introducing a wide variety of dishes with uniqueness etc enhances the sales of the hotels. A large number of hotels also promoted themselves by utilizing the concept of online marketing through various ad campaigns with the help of web-based platforms (Geddie, M.W., DeFranco, A.L. and Geddie, M.F., 2005).
There are various elements which must be considered while framing promotional mix approach. Generally, the budget allotted for promotional activities becomes higher and it has a severe impact on the organizational capability to enhance the profit margins. Therefore, promotional strategies must be framed in such a manner so that it can enhance the brand and sales volume of the organization along in reasonable budget (Constantinides, E., 2006).
An efficient advertising campaign of the service organization helps in enhancing the sales volume and simultaneously assists in building brand recognition of the organization. Advertising campaigns determine the rate of growth and success of the organization, especially in the hospitality industry. The advertising campaign has a significant role in the promotional strategy of the organization. Advertising campaigns also help in raising the target demographics’ awareness of different issues with which the customer is unfamiliar and educate them regarding the associated benefits of the product and services of the organization (Franz, M.M., Freedman, P.B., Goldstein, K.M. and Ridout, T.N., 2009). An advertising campaign of the Ritz Carlton hotel known as “Let us stay with you” helped the organization to build an impression of the premium brand within the mind of customers. This advertising campaign of the organization has recently changed and revamped the entire marketing efforts of the organization. A prevailing advertising campaign is essential in reminding the existing customers regarding the products and services of the organizations. The influencing advertising campaigns help in customer retention and repeat purchase of products and services of the organization. This advertising campaign will also boost the level of sales in upcoming years. In this way, the organization will achieve new heights of success (Franz, M.M., Freedman, P.B., Goldstein, K.M. and Ridout, T.N., 2009).
The sales proceeds are considered as the lifeblood for an organization. It is very important to build certain strategies which help in boosting the level of the sales organization if the concerned organization wants to expand its operations and profitability. It not only helps in enhancing the sales but also assists the organization to attract new customers and at the same time retaining the existing customers so that they do not shift to other brands. A business can endorse itself through effective sales promotions as it provides knowledge regarding their products and assists the business in identifying its primary objectives (Solomon, M.R., 2014.).
Imaginatively and carefully framed sales promotions can lead to long-term benefits to the hospitality organization. As hospitality industry is primarily customer centric, the Ritz Carlton hotel must put a major emphasis on its sales promotions so that it can enhance the decreasing sales volume and diminishing brand recognition of the organization. Similarly, public relation equally endeavors in building relations with the customers. The customer loyalty can only be built with creating an effective public relation with the potential customers (Solomon, M.R., 2014.).
An effectively planned market research has huge significance in comprehending the services offered by the other competitors in the hospitality industry. An effective market research can be considered as a source of innovation in regard to the launch of new services which replace the existing services and offering of the firm. This is generally conducted in the hotel industry by utilizing the market information system which has significant importance in gathering information regarding prices and other elements. Along with that, it also assists in evaluating the present market demand and forecasting. The whole procedure of market research has an extensive role in collecting and analyzing the data so that the management can make effective decisions regarding its products and services (Constantinides, E., 2006).
A large number of hotels in the UK have understood the importance of effective market research which is generally conducted at corporate level using corporate marketing services. The major aim is to provide for effective management of various services in the hotels along with developing a better knowledge of markets and consumers. Therefore, market research is considered as the quality tool by the hotels so as to understand the perceptions of the consumers in regards to the diverse products and services (Ekinci, Y., Prokopaki, P. and Cobanoglu, C., 2003).
A market research is generally carried out to comprehend the response of consumers in regards to the new fusion menus introduced by The Ritz-Carlton hotel so that it can attract customer globally. The selection of location was its outlets which are present all over the UK. The primary research technique can be conducted on the consumers of the concerned organization trough performing various interview sessions involving open and close-ended questionnaires. On the other hand, a secondary research will be conducted by utilizing internal records such as industry journals, government publications, articles published in the newspaper, etc. The collected data will be analyzed by utilizing bar graphs and pie charts prepared from the feedbacks provided by the sample population or respondents. The data interpretation and findings will enable the Ritz Carlton Hotel to identify whether the new fusion menus and verities are successful with the needs, taste, and preferences of the consumers or not (Ekinci, Y., Prokopaki, P. and Cobanoglu, C., 2003).
It is equally important to implement appropriate media for marketing a product or service by the organization so that the organizations can effectively aware maximum number of customers regarding its products or services. The selection of appropriate media has great importance in boosting the level of sales and brand awareness, especially for the hospitality organization. The marketing media must be reasonable budgeted in order to accomplish maximum results. On contrary, if the marketing budget becomes higher, it may lead to reducing the profit margins of the organization (Constantinides, E., 2002).
There are various media available for the hotel for marketing its products and services such as TV, print media i.e. magazines, journals, newspaper; radio, pamphlets, banners, etc. The selection of media is influenced by the nature of products, services, and market under consideration. For instance, if the Ritz Carlton hotel wants to attract global customers, then the best suitable media will be web based advertising as it is widely used all across the globe. Similarly, for attracting domestic and local customers, the concerned organization can take the help of print media i.e. magazines, newspaper, etc and regional TV networks (Constantinides, E., 2002).
It is important for the business organization to evaluate its marketing research as it facilitates in effective decision making. The marketing research of the Ritz Carlton hotel can give the fair information regarding the new fusion menus offered to the customers of UK. The market research conducted by the organization has significantly achieved its goals and objectives. By the findings and interpretation of the feedback collected by the respondents suggested that the new fusion menu of the organization can be accepted by the customers (DelVecchio, D., Henard, D.H. and Freling, T.H., 2006).
The new fusion menu is successful in meeting the new trends of taste and preferences of the customers. The research has also suggested that the price range of the products as charged by the organization is slightly as per the quality of the menu is concerned. The new fusion menu will be framed in such a manner that it can suit all types of the market segment. As per the feedback of the respondents, if the organization fails to produce new fusion menu then the product may fail to capture the market and compete with the products of rivals brands (DelVecchio, D., Henard, D.H. and Freling, T.H., 2006).
From the above-mentioned comprehension, it can be concluded that marketing has huge importance in the growth and development of the hospitality industry, especially in the UK. The hospitality industry of UK is continuously evolving since past few decades. The concepts, theories, approaches, principles, etc as discussed above has a huge contribution in understanding various aspects of the marketing mix in the hospitality industry. Not only that, but this report has also discussed the various components of the marketing mix in detail. This report has put a major emphasis on discussing the promotional mix of the organization which helps in enhancing the level of sales and brand recognition of the organization. An effective marketing mix is one of the effective tools for attaining competitive advantages over the rival firms and gaining high profitability in comparison to other competitors in the same market. This report has also been effective in presenting market research for newly launched products or services by a hospitality industry.
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