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West Visayas State University

POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

LEARNING GUIDE IN

THM 209 – TOURISM AND HOSPITALITY


MARKETING

DR. FELIX B. ALDABON


February , 2021
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

I. Course No. and Title: THM 209 – TOURISM AND HOSPITALITY MARKETING
II. Pre-requisites: None

III. School Year / Semester Offered: 2020-2021/Second Semester

IV. Course Description

This course will equip students with the necessary skills to develop actual
marketing campaign for a business within the tourism and hospitality industry.
Emphasis is on the analysis market, its competition and its products; preparation of
financial budget and the development of short-term and long –range strategies to
achieve desired profit through effective advertising, sales and effective public relations
plan.

V. Course Credit / Unit: 3 units (3 hrs. lecture) 54 hours/semester

VI. Course Outcome: (CMO 30, s.2006)

Upon successful completion of this course the students must have:

1. Acquired mastery of concepts and principles related to tourism marketing.


2. Made decisions related to enhancing the quality of service and customer
satisfaction in the tourism industry and hospitality sectors.
3. Demonstrated capacity for making simple but theoretical sound marketing
plans for a tourism business or destination of their choice.
4. Developed the students’ skills in marketing report preparation.
5. Developed the students’ problem solving and presentation skills.
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

Unit 1: INTRODUCTION TO MARKETING

Learning Objectives

At the end of the unit, the student must have:

1. Defined the meaning of market and marketing;


2. Differentiated the distinction of market and marketing in terms of functions;
3. Explained the difference of marketing and selling;
4. Discussed the nature and scope of marketing;
5. Enumerate the significance of marketing;
6. Explained the benefits of marketing; and
7. Internalized the various concepts of marketing and its benefits.

Learning Topics

1. Meaning and Definition of Market and Marketing


2. Distinction between “Market “and “Marketing”
3. Marketing versus Selling
4. Different Aspects of Marketing
5. Marketing Management
6. Marketing Philosophies/ Marketing Concept

ACQUIRE NEW KNOWLEDGE

INTRODUCTION
According to the Layman definition, Market is a place where buyers and sellers meet
personally to finalize the deal after personal inspection of goods. However, for a student of
marketing, it represents that place where buyers and sellers contact with one another due to
which the prices of goods and services tend to be equalized easily and quickly.

A market is a set of actual and potential buyers who might transact with a seller. Market
is the social arrangement where exchange of goods and services takes place among buyers and
the sellers. Traditionally, a “market was a physical place where buyers sellers gathered to buy
and sell goods

Types of Markets
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

1. Consumer Market

These are the markets for products and services bought by individuals for their own or
family use. Goods bought in consumer markets can be categorized as fast moving consumer
goods (ready meals, baked products, newspaper); consumer durables (freezers,
refrigerators, cookers, television, computers, etc.); soft goods (clothes, shoes, bags); and
services (hairdressing, dentists, child care, hospitality services).

2. Business Markets

These are markets where individuals or organizations, including commercials businesses,


governments and institutions, facilitating the sale of their products or services to other
companies or organizations that in turn resell them, use them as components in products or
services to support their operation. It other known as business- to- business marketing or B2B
marketing.

3. Global Markets

These are market which has historically been tied to international trade. A marketing
strategy used mainly by multinational companies to sell goods or services internationally.
Global marketing requires that there be harmonization between the marketing policies for
different countries and that the marketing mix for different countries can be adapted to the
local market conditions.

4. Non- profit and Government Markets

A Non- profit markets are areas where marketing is conducted by organizations and
individuals that operate in the public interest or that foster a cause and do not seek financial
profits. These markets involve organizations- Charitable groups, Unions, Universities, etc.,
people- political candidates etc., places- resorts, ideas- stop smoking as well as goods and
services.

A Government markets buy goods and services to support their internal operations
and to provide the public education, water, energy, national defense, road system and health
care.

MEANING AND DEFINITION OF MARKETING


As a comprehensive term, Marketing encompasses the entire economic process
by means of which goods and services are exchanged and their values are determined
in monetary terms. It is the business activity through which human wants are satisfied
by exchange of goods and services.
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

Marketing is the organization’s task to determine the needs, wants, and


interests 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 for these product and services and in turn expanding this demand.

Marketing is a societal process which discerns consumers’ wants, focusses on a


product or service to fulfill those wants, and attempts to move the consumers toward
the products or services offered.

Marketing is a social and managerial process by which individuals and groups


obtain what they need and want through creating and exchanging products and value
with others.

The American Marketing Association defines Marketing as an


organizational function and a set of processes for creating, communicating and
delivering value to customers and for managing customer relationships in ways that
benefit the organization and stakeholders.

DISTINCTION BETWEEN “MARKET” AND “MARKETING”


A market is a framework or an atmosphere or a mechanism that facilitates the
price- fixing forces to operate. In today’s world, the physical presence of goods or
people at a place is not an essential condition of a developed and sensitive market.

Marketing on the other hand, is the process comprising all those activities that
are related to the free flow of goods from the point of production to the points of
consumption.

MARKETING VS. SELLING


West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

Marketing includes selling but should be preceded by needs assessment,


marketing research, product development, pricing and distribution. Marketing based on
hard selling carries high risk and dissatisfied customers.

Table 1.1 describes the difference between selling and marketing in relation to
its focus, means, and ends.

Focus Means Ends


Selling Products Aggressive selling Maximize profits
and Sales Promotion through sales
with emphasis on volume.
price variations to
close the sale. “ I
must somehow
hook the
customer?”

Marketing Customer Needs Integrated Maximize profits


Marketing Plan through increased
encompassing customer
product, price satisfaction and
promotion, and hence raised market
distribution, backed share.
by adequate
environmental
scanning, consumer
research and
opportunity analysis
with emphasis on
service. “What can
we do that will
make us in
customer’s eyes
that better than and
superior to our
competitors?”
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

In a nutshell, modern concept says that marketing is not mere selling, it is


something more. Professor Theodor Levitt in his article “Marketing Myopia” states that
bring out very concisely the distinction between selling and marketing.

These points of distinction are:

1. Selling focusses its attention on sellers’ needs while marketing on buyers’ needs.
2. A seller is interested in turning a commodity into cash while a marketer in consumer
satisfaction.
3. Selling aims profits through sales while marketing through serving consumer needs.

DIFFERENT ASPECTS OF MARKETING

Nature of Marketing

1. Consumer – oriented Process


The basic objective of marketing is to fulfill the needs of human beings. Hence,
identifying needs is the most significant aspect of every marketing organization.
Therefore, the marketing activities undertaken by the marketer should be focusing on
customer needs.

2. Starts and Ends with the Customer


Since marketing is about customer needs it is very essential for the marketer to
collect relevant information about customer choices and preferences about the
products or services. The marketer should adopt proper research techniques to find
out the taste and interest of the buyers.

3. Guiding Element of Business


Marketing today is considered as an essential element in the development of every
economy. An economy which is market driven will definitely raise the living standard
of the people. Hence, the responsibility of modern marketing is to integrate all the
activities involve and reach the customer at a maximum speed with minimum cost.
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

4. System- Oriented Process


Marketing is an input- output process. This means that there is a whole lot of
interaction happens between the marketer and the customer in the process of
marketing.

5. Goal- Oriented Process


No business can be successful unless it has a goal to achieve. There can be goals such
as increase in the volume of sales and profits, etc.

6. Exchange Process
Marketing is a dynamic process of exchange of goods and services between the sellers
and the buyers. Not only goods and services are exchanged but a whole lot of
information about the goods and services.

7. Process- Oriented Process


Marketing is a flexible process of various interrelated activities which are performed in a
particular order. The marketing process has been influenced by various environmental
factors. Necessary improvements should be brought in the process to suit these
changes.

Importance of Marketing

 Marketing helps in the realization of the objectives for which the organization has
been set up. It is essential for the survival and growth of the organization.

 It helps the community to satisfy their economic and social needs and raise their
standard of living

 It helps producing those products that are needed by the consumers and
community at large.

 It helps in an efficient and productive utilization of resources- human and


materials resources.

 It helps the enterprise to adapt to the changing conditions and circumstances.


West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

 It provides guidance to the organization on the innovation to be adopted,


enabling it to face competition more squarely.

 It helps the enterprise in achieving the maximum efficiency, productivity and


profitability with the minimum effort and cost.

 It ensures the economic growth of the enterprises which results in growth and
economic development of the country.

Benefits of Marketing

A. Benefits to Society

 It is the instrument for changing the living standards of society.


 It provides gainful employment opportunities.
 It is the stabilizer of economic conditions.

B. Benefits to the Individual Firms

 It is an outlet to earn profit.


 It provides base for business decisions
 It is a source of new ideas.

MARKETING MANAGEMENT

Marketing management signifies an important functional area of business


management responsible for the flow of goods and services from the producers to the
consumers. It is one accountable for planning, organizing directing, coordinating,
motivating and controlling the marketing activities. It is the management of the crucial
and creative task of delivering consumer satisfaction and earning profits through
consumer demand.

According to American Marketing Association, it is “planning production and


control of entire marketing activity of a firm or a division of a firm including the
formulation of marketing objectives, policies, programs, strategy and re- appraising
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

product development organization to carry out the plans, professional working


operations and controlling performance”.

In words of Professor Philip Kotler, “it is the analysis of planning, implementation


and control of programmes designed to bring about desired exchanges with target
auaudience
audience for the purpose of personal or mutual gains.

In short , marketing management sets marketing objectives, develops marketing


plan, organizes marketing plans and strategies into action and monitors the marketing
programme in the final analysis.

MARKETING PHILOSOPHIES/ MARKETING CONCEPT

A concept is a philosophy, an attitude, a course of thinking, an idea, or a notion


relating to any aspect of divine and human creation. In other words, a concept is an
orientation or a marketing management philosophy. According to Robert H. Hartley, “
marketing concept is an integration of marketing activities directed towards customer
satisfaction.

Basic Components of the Marketing Concepts

1. Consumer Orientation
It refers to the organizational culture, processes and systems aimed at
understanding customer needs strategically and developing products and services that
provide satisfaction to the consumer.

2. Integrated Marketing
This strategy aimed at unifying different marketing methods such as mass
marketing, one- to- one marketing and direct marketing.

3. Marketing Research and Long- term Planning and Development


West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

The concept of marketing in today’s business world, the customer is at the


forefront not all business in the past worked accordingly. This orientation or ideology
put other factors rather than the customer first.

Types of Marketing Concepts

1. Manufacturing Concept
According to this concept, the company believes that based on quality and
features, it has a superior product and the customers would like it. Here, the marketer
believes that consumers favor the available products and they are able to produce
highly affordable products. From here, the management should improve production and
distribution system on a regular basis.

2. Product Concept
Under this marketing concept, production is the starting point. The product
acceptability occurs after the product is produced. The demand for a product is greater
than its supply. This concept is used to increase profit by focusing on production
efficiency. Another one, this concept is useful when increasing production raises
economies to reduce price.

The focus of the business is not in the needs of the customers but on reducing
the cost by mass production. This concept believes that consumers prefer existing
products and product form and management’s job is to develop good version of
products.

Good Product Good Sales

Figure 1.1 Product Concepts


West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

3. Selling Concept
This philosophy has been sales oriented. It states that making available the best
product is not enough. It is futile unless the firm resorts to aggressive sales promotion,
effective salesmanship and vigorous advertising. The product moves in the market only
when we have tremendous and forceful promotional efforts – both personal and
impersonal. The essence of sales oriented marketing philosophy is that the goods are
not brought but are sold. According to this concept, the demand for a product is equal
to its supply.

Product Promotion Sales

Figure 1.2 Selling Concept

The focus here is to make the product and then try to sell it to the target market.
However, the problem could be that consumers do not like what is being sold to them.
This concept believes that consumers will not buy enough products unless the company
undertakes large selling and promotion efforts. The management’s aim is to maximize
sales without worrying about customer satisfaction.

4. Marketing or Customer Concept

This philosophy was brought into play during the 1950s and it points out that the
fundamental tasks of the firm is to study and understand the needs, wants, desire and
values of the potential customer and produce the goods in the light of these findings so
that the customers or users will have the desired satisfaction.

This consumer orientation is based on the following assumptions:

1. Consumer is the king.


2. Market information is a must for understanding.
3. The dual objective of consumer satisfaction and profit maximization is to kept in
focus.

According to this concept, the supply for a product is greater than demand and
creating intense competition among supplier.
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

Marketing Sales
Customer Product Sales
Research Promotion

Figure 1.3 Marketing or Customer Concept

This concept puts the customer at the heart of the business. The organization
tries to understand the needs of the customers by using appropriate research methods
and processes are developed to make sure that information from customers is fed back
into the heart of the organization. In essence, all activities in the organization are
centered to the customer. The customer is truly the King! This concept believes that
organizational goals can be achieved only when the management is able to identify the
needs and wants of target market and desired satisfaction better than competitors and
created a long- term customer relationships.

5. Societal Marketing Concept

There has been further refinement in the marketing concept, particularly during
1970s and 1980s. Accordingly, the latest concept has gone beyond understanding the
consumer needs and making products and services available as per aspirations. It tries
to replace consumer satisfaction by consumer welfare or social welfare. The social
welfare speaks of better pollution- free environment and quality life. That is, the
marketing organization should discharge its social responsibilities in the normal course
of making available consumer goods and services.

Marketing Research Sales


Customer Product Sales
Research & Dev’t Promotion

Figure 1.4 Societal Marketing Concept

The social oriented philosophy is called “integrated” approach and works on the
following four basic points:

1. To produce the products that adds to the general welfare


2. To enhance the consumer satisfaction
3. To meet the social responsibility at reasonable profit
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

4. To supply or deliver the goods to the society as warranted by changing conditions in


various dimensions

APPLICATION

Name : _________________________________________________ Score: ______


Course, Year & Section: ___________________________________ Date: _______
Subject: ________________________________________________
Subject Teacher: _________________________________________

Direction: Read and analyze the following set of questions below. Justify your answer
in paragraph form. Answer it substantially to the best of your ability.
Kindly place your answer in a yellow pad and follow this format.

Question:

1. Many managers think that the purpose of business is for profit while some view it
as being able to create, maintain and expand customer. Explain how these
alternative viewpoints could affect a company’s interactions with its customers. (20
points)

2. If a manager views the purpose as being able to create and maintain a customer,
does this means the manager is not concerned with profits? (10 points)
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

ASSESSMENT

Name : _________________________________________________ Score: ______


Course, Year & Section: ___________________________________ Date: _______
Subject: ________________________________________________
Subject Teacher: _________________________________________

Part I. TRUE OR FALSE


Direction: Read and analyze the following set of statements below. Write letter “T” if
the statement is True and letter “F” if otherwise. Kindly place your answer in
a yellow pad and follow this format.

1. Marketing evolves from the basic wants only of the consumer.


2. Goods marketing are concerned with the sale of anything under the sun, from pins to
plane.
3. Marketers often use the term market to cover various groupings of customers.
4. Good quality marketing is no mishap, but a result of careful planning and execution.
5. Marketing is both art and science- there is constant pressure between the formulated
and the creative side of marketing.
6. In today’s world, the physical presence of profit is not an essential condition of a
developed and sensitive market.
7. In any walk of life “speaking” result in thinking, it is the way of thinking that
determines the course of speaking.
8. Information marketing is concerned about production, packaging and distribution of
information.
9. Marriot Hotels Incorporated is an example of global market.
10. Marketing theory and practice is justified on the belief that customers use a product
or service because it provides a perceived benefit.

Part II. ESSAY


Direction: Read and analyze the following set of questions below. Justify your answer in
paragraph form. Answer it substantially to the best of your ability. Kindly
place your answer in a yellow pad and follow this format.

1. Define the word “market” in other perspectives. Definition in the learning guide is not
acceptable. State at least 3 different definitions with cited authors. (10 points)

2. In your own point of view, which is the best marketing concept? And why? (10
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

points)

3. Can a Green Marketing be acceptable in today’s business? Why? (10 points)

REFERENCES
Kumar, P. 2010. Marketing of Hospitality and Tourism Services. Mc Graw- Hill
International Edition. Mc Graw Hill Education Private Limited

Badilla – Gatchalian, M. 2015. Tourism Marketing- 1st Edition. Rex Book Store
Incorporated. Sampaloc, Manila, Philippines
West Visayas State University
POTOTAN CAMPUS
School of Business and Management
Brgy. Cau-ayan, Pototan, Iloilo, Philippines 5008
Trunkline: (063) (033) 529-8716 * Telefax No.: (033) 529-8716
Website: www.wvsu.edu.ph *Email Address: pototan@wvsu.edu.ph

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