H4035

HOSPITALITY STRATEGIC MARKETING TOPIC 1: INTRODUCTION

MARKETING
DEFINITION:

A social and managerial process by which individuals and group obtain what they need and want through creating and exchanging products and value with others

STRATEGIC MARKETING
An effort to maintain profit and competitive advantages through a latest and comprehensive marketing strategy.

MARKETING MIX
* Combination

8 important elements in hospitality marketing. * Traditional 4 Ps of marketing: PRODUCT, PLACE, PROMOTION, PRICE * Additional 4 Ps of Hospitality & Tourism Marketing: PEOPLE, PACKAGE, PROGRAMME, PARTNERSHIP

PRODUCT
- Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. - Includes physical objects, services, persons, places, organizations & idea.

SERVICE
- Any activity @ benefit that one party can offer to another that is essentially intangible & does not result in the ownership of anything.

PRODUCT MIX
- Combination

of product and services offered by hospitality industry inclusive the tangible and intangible items.

PERFORMANCE
- Elements used by marketing management in order to increase the products attraction, physical appearance & satisfy customers need. - Influence the buyers to rate their satisfaction, deciding whether to continue, modify or drop the relationship.

COMMUNICATION
- The process of expressing ideas and feelings or of giving people information. - Involves the activity of sending a message from the sender to receiver. - Message and related media used to communicate with a market. (advertising, branding, graphic design, packaging, promotion, publicity)

COMMUNICATION
COMMUNICATION
Intrapersonal Interpersonal Verbal Non-verbal

PROMOTION MIX
The FOUR major promotion tools: 1. Advertising 2. Sales promotion 3. Public Relations 4. Personal selling

SERVICE MARKETING
What is SERVICE? Any activity or benefit that one party can offer to another that is essentially intangible and does not in the ownership of anything. 2 sectors of service: i. Profit making business tourism, banks, airlines, insurance, accountant, consulting firms. ii. Non profit business (Governments service courts, education (school), medical (hospital), military, police and fire department.

THE CHARACTERISTICS (CRITERIA) OF SERVICE MARKETING

1. Intangibility 2. Inseperability

SERVICES

3. Variability / Heteroginity 5. Lack of ownership

4. Perishability

THE CHARACTERISTICS OF SERVICE MARKETING

1. Service Intangibility they cannot be seen, tasted, felt, heard or smelled before they are bought. 2. Service Inseparability they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. 3. Service Variability / Heterogeneity their quality may vary greatly, depending on who provides them and when, where and how. how.

THE CHARACTERISTICS OF SERVICE MARKETING

4. Service Perishability they cannot be stored for later sale or use. 5. Service Lack of ownership they cannot be owned after sale transaction happened. (only for certain period)

CUSTOMER ATTITUDES TOWARD SERVICE

1. CULTURAL FACTORS Culture, Subculture, Social classes. 2. SOCIAL FACTORS Reference group, family, roles and status. 3. PERSONAL FACTORS Age, Occupation, Economic situation, Lifestyle, Personality & self-concept. 4. PSYCHOLOGICAL FACTORS Motivation, Perception, Learning, Beliefs & attitudes.

CUSTOMER ATTITUDES TOWARD SERVICE CULTURAL FACTORS

CULTURE It comprises the basic values,

perceptions, wants & behavior that a person learns continuously in a society.

SUBCULTURE Contains smaller subcultures,

group of people with shared value systems based on common experience and situations.

SOCIAL CLASS Relatively permanent and

ordered divisions in a society whose members share similar values, interests and behaviors.

CUSTOMER ATTITUDES TOWARD SERVICE SOCIAL FACTORS

REFERENCE GROUPS - Serve as direct (faceto-face) or indirect point of comparison or reference in the forming of a persons attitude and behavior.

FAMILY Strong influence on buyer behavior. ROLE AND STATUS A role consists of the
activities that a person is expected to perform according to the persons around him/her. Each role carries a status reflecting the general esteem given to it by society. People often choose products that show their status in society.

CUSTOMER ATTITUDES TOWARD SERVICE PERSONAL FACTORS

AGE - change during people lifetimes. OCCUPATION Affects the goods and services bought ECONOMIC SITUATION Greatly affects product
choice and the decision to purchase a particular product.

LIFESTYLE A persons pattern of living as expressed in

his/her activities, interest, opinion.

PERSONALITY & SELF-CONCEPT Distinguishing psychological characteristics that disclose a persons relatively individualized, consistent and enduring responses to the environment.

CUSTOMER ATTITUDES TOWARD SERVICE PSYCHOLOGICAL FACTORS

MOTIVATION A need becomes a motivate when

it is aroused to a sufficient level of intensity.

PERCEPTION Process by which a person selects,

organizes and interprets information to create a meaningful situation.

LEARNING Describes changes in a persons

behavior arising from experience.

BELIEFS & ATTITUDES Belief: a descriptive

thought that a person holds about something. Attitude describes a persons relatively consistent evaluations, feelings & tendencies toward an object or idea.

MANAGEMENT ASPECTS IN SERVICE MARKETING

1. Tangibilizing the service product. 2. Managing employees 3. Managing perceived risk 4. Managing capacity and demand 5. Managing consistency

MANAGEMENT ASPECTS IN SERVICE MARKETING

1. Tangibilizing the service product product.

Promotional material, employees appearance & service firms physical environment.

a) Trade dress distinctive nature of a hospitality

industrys total visual image & overall appearance.

b) Employee uniform & costumes have a

legitimate & useful role in differentiating 1 hospitality firm from another & for instilling pride in the employees.

c) Physical surroundings Should be designed to

reinforce the products position in the customers mind.

d) Greening of the hospitality industry Use of

outside natural landscaping, inside lights & plants to create differentiation & tangibilizing the product.

MANAGEMENT ASPECTS IN SERVICE MARKETING 2. Managing employees employees are

a critical part of product & marketing mix. HR and marketing dept. musk work closely together. Effective training & motivation. 3. Managing perceived risk increase loyalty to company which provided with a consistent product.

MANAGEMENT ASPECTS IN SERVICE MARKETING

4. Managing capacity and demand - Service must adjust their operating systems to enable the business operate at maximum capacity.

5. Managing consistency Customers will receive the expected product.