Unit 2 Lesson Guide in Tourism Hospitality Marketing

West Visayas State University
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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 2: INTRODUCTION TO HOSPITALITY SERVICES MARKETING
Learning Objectives
At the end of the unit, the student must have:
1. Defined the meaning of service and service marketing;

2. Explained the fundamental nature, role and difference in goods and service
marketing;
3. Defined the meaning of hospitality marketing;
4. Analyzed the transition of hotel marketing;
5. Explained the various concepts of hospitality marketing;
6. Discussed the different strategies to manage the service businesses; and
7. Explained the significance of six (6) sigma in hotel industry.
Learning Topics
1. Meaning and Definition of Service

2. Goods and Services
3. Developmental Stages of Services Marketing
4. Hospitality Marketing
5. Importance of Hospitality Marketing
6. Characteristics of Hospitality Services Marketing
7. Strategies to Manage Hospitality Service Businesses
8. “Six (6) Sigma” in Hotels
ACQUIRE NEW KNOWLEDGE
INTRODUCTION
Hospitality is defined as taking care of your guests and anticipating their needs
and it is the relationship between the guest and the host, or the act or practice of being
hospitable. This includes the reception and entertainment of guests, visitors, or
strangers.
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Service in the hospitality industry is the level of assistance provided by staff

members to facilitate the purchase by the client. It also encompasses a raft of efforts
hotels makes to achieve pleasant customer experience for guests
Marketing is a continuous, sequential process through which management plans,

researches, implements, controls, and evaluates activities designed to satisfy the customers’
needs and wants, and meet the organization’s objectives. According to Morrison
(2010), services marketing “is a concept based on recognition of the uniqueness of all
services; it is a branch of marketing that specifically applies to the service industries”.
Marketing in the tourism and hospitality industry requires an understanding of

the differences between marketing goods and marketing services. To be successful in
tourism marketing, organizations need to understand the unique characteristics of their
tourism experiences, the motivations and behaviors of travelling consumers, and the
fundamental differences between marketing goods and services.
Differences Between Goods and Services
Goods are items that are usually (but not always) tangible, such as pens, salt,
apples, and hats. Services are activities provided by other people, who include
doctors, lawn care workers, dentists, barbers, waiters, or online servers, a book, a
digital videogame or a digital movie.
A good is a tangible or physical product that someone will buy, tangible meaning
something you can touch, and a service is when you pay for a skill. A service is
something intangible, which can't be physically touched or stored.
Goods are items that are usually (but not always) tangible, such as pens, salt,
apples, and hats. Services are activities provided by other people, who include
doctors, lawn care workers, dentists, barbers, waiters, or online servers, a book, a
digital videogame or a digital movie
There are four key differences between goods and services. According to

numerous scholars (Regan; Rathmell; Shostack; Zeithaml et al. in Wolak, Kalafatis, &
Harris, 1998) services are:
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1. Intangible
2. Heterogeneous
3. Inseparable (simultaneously produced and consumed)
4. Perishable
Intangibility
Tangible goods are ones the customer can see, feel, and/or taste ahead of
payment. Intangible services, on the other hand, cannot be “touched” beforehand. An
airplane flight is an example of an intangible service because a customer purchases it in
advance and doesn’t “experience” or “consume” the product until he or she is on the
plane.
Heterogeneity
While most goods may be replicated identically, services are never exactly the
same; they are heterogeneous. Variability in experiences may be caused by location,
time, topography, season, the environment, amenities, events, and service providers.
Because human beings factor so largely in the provision of services, the quality and
level of service may differ between vendors or may even be inconsistent within one
provider.
Inseparability
A physical good may last for an extended period of time (in some cases for many
years). In contrast, a service is produced and consumed at the same time. A service
exists only at the moment or during the period in which a person is engaged and
immersed in the experience.
Perishability
Services and experiences cannot be stored; they are highly perishable. In

contrast, goods may be held in physical inventory in a lot, warehouse, or a store until
purchased, then used and stored at a person’s home or place of work. If a service is not
sold when available, it disappears forever. Using the airline example, once the airplane
takes off, the opportunity to sell tickets on that flight is lost forever, and any empty
seats represent revenue lost.
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Developmental Stages of Services Marketing

A Service Marketing is a specialized branch of marketing. Services marketing
emerged as a separate field of study in the early 1980s, following the recognition that
the unique characteristics of services required different strategies compared with the
marketing of physical goods.
Services marketing typically refers to both business to consumer (B2C)
and business-to-business (B2B) services, and includes marketing of services such
as telecommunications services, financial services, all types of
hospitality, tourism leisure and entertainment services, car rental services, health
care services and professional services and trade services. Service marketers often use
an expanded marketing mix which consists of the seven Ps: product, price, place,
promotion, people, physical evidence and process.
Just as businesses go through stages, so do products and services. The product

or service life cycle is determined by how long it’s marketable. Tracking the life cycle of
your product or service is key to determining performance and profits.
Product life cycle also plays a critical role in marketing strategy. Depending on the stage
your product or service is in, you’ll refine your marketing accordingly to help ensure
optimal performance and results in each stage.
Let’s take a closer look at each of the four product life cycle stages, and then
examine how the product life cycle will affect your company’s marketing strategy.
4 Stages of Product Life Cycle
1. Introduction
Profits are low in this stage because things such as research and development,
production and marketing costs are high. Prices are set high on the product or service
to recoup some of the development and introduction costs (but may also be low as a
way to more quickly build market share).
2. Growth
Sales generally increase with the demand for the product. Cash flow improves
and profits are at their peak.
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Although competition may be minimal in this stage, it’s important to continually

make refinements and stay ahead of the competitive curve. Build product and service
development capabilities with the cash you get from increasing sales.
3. Maturity
Sales may continue to increase or level off. Profits decrease since prices are
continually lowered to compete. Still, a great amount of cash flow is generated through
sales.
Conduct market research to determine trends. Adapt your product or service to

meet the coming trends — this is the stage in which differentiation is more important
than ever.
If you don’t look for new opportunities in new markets and new products, the
coming decline stage will leave you with products and services that no longer sell.
4. Decline
Sales drop even though prices continue to fall. Profits are extremely low at this
stage, but the product or service has generated sufficient cash flow during its life.
When a product or service hits this stage, many entrepreneurs reintroduce it

with a new feature or create a new benefit. Simply increasing the size of a candy bar by
33 percent can re-start its life cycle.
Consider making changes to your product or service and/or the way you market
it. You may decide to discontinue your product or service before losses eat into the
cash flow generated by sales.
How Your Product’s Life Cycle Affects Your Marketing Strategy
Just as each stage of the product life cycle demands a different approach to the
product itself, the stages also have specific effects on your overall marketing strategy.
In the introduction stage, for example, your marketing efforts will likely be focused on
building brand and product awareness, as well as establishing and connecting with a
target market.
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Yet in the maturity stage, you’ll be fighting to maintain market share. Here, your
marketing strategy could include incentives or promotions to further encourage
adoption of your product or service over that of your competition.
In the decline phase, your marketing will depend on what’s happening with your
product or service. If you opt to reintroduce it with a new feature or benefit, you’ll want
to refresh your marketing strategy accordingly to share that information with current
and prospective customers.
Opting to discontinue or liquidate the product, on the other hand, requires a

different marketing message than a re-introduction, so you’ll want to plan and refine
that message accordingly.
Planning for Services Marketing
To ensure effective services marketing, tourism marketers need to be strategic in

their planning process. Using a tourism marketing system requires carefully
evaluating multiple alternatives, choosing the right activities for specific markets,
anticipating challenges, adapting to these challenges, and measuring success (Morrison,
2010). Tourism marketers can choose to follow a strategic management process called
the PRICE concept, where they:
 P: plan (where are we now?)

 R: research (where would we like to be?)
 I: implement (how do we get there?)
 C: control (how do we make sure we get there?)
 E: evaluate (how do we know if we got there?)
In this way, marketers can be more assured they are strategically satisfying both
the customer’s needs and the organization’s objectives (Morrison, 2010). The
relationship between company, employees, and customers in the services marketing
context can be described as a services marketing triangle (Morrison, 2010)
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Company
Internal Marketing External Marketing
Employees Customers
Interactive Marketing
Figure 1. Services marketing triangle (adapted from Morrison, 2010)
In traditional marketing, a business broadcasts messaging directly to the

consumer. In contrast, in services marketing, employees play an integral component.
The communications between the three groups can be summarized as follows
(Morrison, 2010):
1. External marketing: promotional efforts aimed at potential customers and

guests (creating a promise between the organization and the guest)
2. Internal marketing: training, culture, and internal communications (enabling
employees to deliver on the promise)
3. Interactive marketing: direct exchanges between employees and guests (delivering
the promise)
The direct and indirect ways that a company or destination reaches its
potential customers or guests can be grouped into eight concepts known as the 8 Ps of
services marketing.
8 Ps of Services Marketing
The 8 Ps are best described as the specific components required to reach

selected markets. In traditional marketing, there are four Ps: price, product, place, and
promotion. In services marketing, the list expands to the following (Morrison, 2010):
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 Product: the range of product and service mix offered to customers

 Place: how the product will be made available to consumers in the market,
selection of distribution channels, and partners
 Promotion: specific combination of marketing techniques (advertising, personal
sales, public relations, etc.)
 Pricing: part of a comprehensive revenue management and pricing plan
 People: developing human resources plans and strategies to support positive
interactions between hosts and guests
 Programming: customer-oriented activities (special events, festivals, or special
activities) designed to increase customer spending or length of stay, or to add to
the appeal of packages
 Partnership: also known as cooperative marketing, increasing the reach and
impact of marketing efforts
 Physical evidence: ways in which businesses can demonstrate their marketing
claims and customers can document their experience such as stories, reviews, blog
posts, or in-location signage and components
It’s important that these components all work together in a seamless set of
messages and activities known as integrated marketing communications, or IMC, to
ensure the guests receive a clear message and an experience that meets their
expectations.
Hospitality Marketing
Marketing is the process for getting a company's product or service out to

consumers. Hospitality marketing takes a look at how segments of the hospitality
industry, such as hotels, restaurants, resorts and amusement parks, utilize marketing
techniques to promote their products or services.
Importance of Hospitality Marketing
In any business, a solid marketing strategy is critical to building a brand,

attracting new customers and maintaining loyalty. The hospitality industry is no
different. Because customer loyalty is key, marketing managers and executives devote
a lot of time and resources to building brand awareness and creating ongoing,
interconnected campaigns. These marketing efforts usually include both print and
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digital collateral that target former guests while also attracting new clientele. However,
this particular industry has a unique set of challenges that must be overcome.
Understanding the importance of marketing in the hospitality industry can help you get
ahead and stand out in the competitive job market.
Hospitality sales are different from consumer goods sales because marketers
must sell tangible as well as intangible products. In many cases this means that they
are marketing services rather than goods, and success hinges on creating the
right feeling in the consumer. For example, a resort will want to cultivate a relaxing, fun
atmosphere that is recognizable to customers and inspires those same feelings in the
consumer.
Because the hospitality industry is mostly made up of tourism and other

experiential services, a consistent brand identity is also very important. Marketers want
to ensure that brand recognition exists so that customers will use their services again
and again. Repeat customers bring in a sizeable portion of revenue, so marketing
strategy must be split between maintaining relationships with past customers while
seeking out new ones.
Characteristics of Hospitality Services Marketing

Hospitality industry has many characteristics such as intangible, perishable,
inseparable, simultaneous, variable, shift work, graveyard shift and guest satisfaction.
Service marketers must understand the four characteristics of services:

intangibility, inseparability, variability, and perishability.
A) Intangibility
Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled
before they are purchased. One implication of experiential products is that we take
away only the memories of our experiences. Service marketers should provide tangible
evidence or takeaways. However, physical evidence that is not managed properly can
hurt a business
B) Inseparability
Hospitality products are first sold and then produced and consumed at the same
time. Customers and employees must understand the service delivery system because
they are coproducing the service.
C. Variability
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Services are highly variable. Their quality depends on who provides them and
when and where they are provided. Variability or lack of consistency in the product is a
major cause of customer disappointment in the hospitality industry
D) Perishability
Services cannot be stored.
Example: A 100-room hotel that sells only 60 rooms on a particular night cannot
inventory the 40 unused rooms and then sell 140 rooms the next night. Revenue lost
from not selling those 40 rooms is gone forever.
“Six (6) Sigma” in Hotels

“Six Sigma is a methodology that seeks to understand the causes and effects of
quality breakdowns. Six Sigma teams are taught to use techniques and tools to
evaluate and determine change value, which is then measured against change cost.
Six Sigma statistical-based methodologies used to reduce variation and eliminate

defects in business transactions and processes. This improves consistency and reduces
waste.
Lean is a methodology focused on boosting efficiency of business processes by

eliminating waste throughout the production cycle. Historically associated with factories,
this methodology has become a common management philosophy around maintaining
tight control over operational efficiency.
Lean Six Sigma combines these two concepts into a single management
framework which focuses on eliminating waste, reducing defects, and overall efficiency.
For hotels, any process that generates an outcome that negatively impacts the guest
experience is a defect. Defects usually occur because of variations in the processes.
The overall objective of Lean Six Sigma is to make processes as consistent as
possible so the operation flows smoothly and there are no variations in the guest
experience.
At its core, six sigma requires skills like data collection, problem-solving and data
analysis. Without these fundamental skills it's difficult to identify the holes in your
existing processes and achieve operational excellence.
Brief History of Six Sigma and Lean

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Six Sigma was popularized by engineer Bill Smith at Motorola in the 1980s and
Lean by Toyota automotive from the 1940s onwards as part of its Toyota Production
System.
Six Sigma is a methodology used to reduce variation and eliminate defects in
business processes. While the concept was coined in the 80’s, the history of Six Sigma
dates as early as 1924. Here are some of the key dates in its development:
 1924: Mathematician Walter Shewhart introduced statistical quality control via
“control charts” that measures process efficiency
 1986: Bill Smith introduced the concept of Six Sigma at Motorola, eventually
saving the company more than $16 billion.
 1995: Jack Welch popularized Six Sigma by making it his core strategy focus at
General Electric -- and transforming the company in the process.
Lean, as a paradigm for eliminating all forms of non-value-added work, has a

timeline that starts over a century ago:
 1890s: Mechanical engineer Frederick Taylor performed his famous time study to
optimize standardized factory work.
 1913: Henry Ford makes faster production time and higher outputs through the
“flow production” method.
 1960s: Industrial engineer Taiichi Ohno fathered Toyota’s famous production
system which became known as Lean Manufacturing.
The Principles of Lean Six Sigma
The key principles of Lean Six Sigma center on the Japanese concept of “muda,” or
waste, which was at the core of the lean methodology invented by Toyota.
At your hotel, you should focus on identifying waste (and thus inefficiencies) in eight
areas:
1. Motion: Look for wasted physical efforts due to unnecessary steps in a checklist
or other areas where excessive motion wastes productivity. Example: walking to
get reservation documents from the printer at check-in, storing inventory far
from where it's needed the most
2. Transportation: Look for areas where items (rather than people) move

inefficiently from point A to point B; this can also include data. Example:
delivering room keys to guests, excessive back and forth coordinating events,
and confusing/excessive email attachments.
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3. Waiting: Any time staff member is waiting on another staff member or a guest

to do something, there's waste. Example: housekeepers knocking on doors to
see if they can clean a particular room.
4. Overproduction: These are times when there is excessive production of items,

either because of poor process or because it's unnecessary. Example: using
physical room keys instead of digital ones, printing paper schedules or room
assignments, printing out emails.
5. Inventory: Holding onto too much inventory is a classic example of waste.

Example: stocking up on plastic shampoo bottles, buying too much food for a
banquet event.
6. Over processing: This refers to any step or task that’s unnecessary and doesn't
add value. Example: manual data entry during a night audit, generating “reports
for reports sake” that never get used.
Within each of these areas lies a wealth of opportunities to kill inefficiencies and
eliminate waste. Whether it's reducing housekeepers' steps, dropping duplicative steps
in your hotel checklists or improving communication so maintenance doesn’t have to
walk back to the front desk, each incremental improvement snowballs into major
change.
Examples of Six Sigma in the Hotel Industry

Lean Six Sigma is made much easier with software, especially property
management and all-in-one hotel software. One option is the integrated software suite
provided by Guestline, which pulls together front office, back office and reservations
into a single platform. With technology like this on their side, staff across all
departments will enjoy better prioritization, clearer communication, and happier guests.
Here’s how tools like Guestline help your hotel implement a Lean Six Sigma
mindset that drives key metrics for your hotel:
1. Faster processes
Metrics: Check-in speed, room turn time
Fewer redundant steps means that your staff is more responsive to guests and
work on tasks that matter most to the hotel. For instance, with Guestline's
housekeeping module, your team can get real-time room prioritization and can thus
turn rooms more quickly. This eliminates waiting around for a guest to leave by sending
housekeepers to the right rooms at the right time.
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2. Lower costs.
Metrics: Labor as a percentage of revenue, facilities repair cost
When you tighten your processes and eliminate wasted effort, you reduce your
costs. You’re usually able to deliver the better quality service, because staff aren’t
wasting their time on redundant steps (and are usually happier and less frustrated).
With Guestline, you’re also able to stay on top of both urgent and routine maintenance
through native integrations, which saves you money in the long term.
3. Happier staff.
Metrics: Turnover rate, staff satisfaction survey.
In a competitive labor environment, hotels must empower their teams with the
tools they need to do their jobs effectively. By eliminating stresses, such as
miscommunications that lead to a guest checking into a dirty room, Guestline's
centralized staff collaboration features keeps staff on the same page from night audits
to cleaning schedules -- leading to fewer conflicts with guests (and each other!). It also
offers a sense of accountability and trust, which is key to long-term satisfaction at work.
As you can see, Lean Six Sigma will streamline your operation by helping you
and your team identifies and fixes defective processes to most efficiently allocate labor
resources. Those efficiencies mean that you can do more with less.
And, since a stronger guest experience results in better, more consistent
reviews, this methodology leads to stronger competitiveness in your market and more
gross revenue. That’s a potent mix of efficiency and reputation, which means that
you’ve got a more profitable hotel.
Some of the Areas/ Processes where Six (6) Sigma may Add Value
A. Hotel- wide
 Enhance customer loyalty
 Reduce employee attrition
 Productivity/ efficiency improvement
 Improve work- life balance
 Reduce billing errors/ losses
 Developing better performance measures/ metrics
 Increase revenue
 Reduce cost
 Capture “Voice of Customers” data
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B. Front Office Operation/ Sales and Marketing
 Reduce wait- time during peak check- in time

 Reduce wait- time during peak check- out time
 Eliminate billing errors and improve accuracy
 Reduce “no shows”
 Increase occupancy
 Utilize optimally of the current product mix (rooms) to increase revenue
 Increase customer delight at the executive club
 Reduce/ eliminate loss calls (operator’s area)
 Maintain accuracy of information
C. Food and Beverage Service/ Production
 Maintain optimal inventory

 Minimize wastage/ pilferage
 Standardize output of food and beverage
 Reduce the time from order to service
 Utilize optimally the current product mix (F&B/ Outlets) to increase revenue
D. Accommodation Operation (Housekeeping)
 Reduce the turnaround time of making/ turning down a room

 Standardization of cleanliness across areas
 Purchase/ stores
 Reduce inventory surplus
 Cost- benefit analysis between cost of inventory and cost of storage of products
where prices vary seasonally
 Standardize the operating procedures of issuance to various department
 Reduce the turnaround time of issuance to various departments
E. Human Resources/ Personnel
 Maintain accuracy of payroll

 Have a good system of documentation management
 Reduce the turnaround time of recruitment
 Reduce the turnaround time of relieving
 Increase the employee satisfaction rate
APPLICATION
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Name : _________________________________________________ Score: ______

Course, Year & Section: ___________________________________ Date: _______
Subject: ________________________________________________
Subject Teacher: _________________________________________
Direction: Read and analyze the following set of case articles below. Answer the
following questions at the end of the article. 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. Case on Point: Resolution given for a Travel Hotspot
A Filipino bellman of a famous hotel and resort in the Middle East got sacked
after having caught stealing jewelries from a guest’s luggage. CCTV footages showed
that he opened her luggage while the guest was away. The accused didn’t plead no
contest to charges of stealing as all evidences prodded him. He confessed that he was
forced to steal from the guest because of his father who got ill. He pawned the
jewelries he stole and sent the money to his family in the Philippines.
Unfortunately, a copy of the CCTV was uploaded online, and it became viral on
different social media sites. As much as the hotel valued the service of the Filipino
bellboy, who has been a reliable and trustworthy employee for more than three years,
they can’t just tolerate the damage that the incident has caused their reputation as a
major tourism destination.
It is good that the accuser didn’t push through sending the employee to jail but
was only terminated and repatriated to save the company from further embarrassment.
Questions:
1. What is the statement of the problem of the case? Why? Discuss. (10 points)
2. What are the possible alternative courses of action (ACA) will the management
should take to solve the problem? Cite at least two (2) ACA’s and discuss. (20 points)
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2. Case Article: Repurposing hospitality to better serve the Filipino

community
Like a thief in the night, this pandemic knocked down tourism all over the world,
in the middle of a hospitality-industry-high, felt from luxury hotels & resorts to hostels
and communal lodging spaces. With travel, considered as the most progressive
expression of human interest, a pillar of tourism, lodging, was shaken to its core.
Yet, from the rubble will rise, independent brands and smaller players, pushed to
survive the ravages of a war against an invisible enemy. With a grim outlook never seen
in a century, in the aftermath of the COVID-19 storm, the only question that remains is,
where is the light at the end of the tunnel?
Hotel brands that capitalized on revenue sharing models, from local and global
clients, unbelievably, are faced with dwindled revenues. No one could have predicted
this crippling impact of a pandemic, having survived a serious bout of the original SARS
outbreak almost 20 years ago.
With no historical data that can come close to what should happen in the next 2-
3 years, the brightest minds of the industry will need to figure out how to repurpose
accommodation facilities.
The visionaries will see how bedrooms can be transformed into classrooms, with
hotels repurposed as high-end boarding schools and/or field trip destinations and
retreat houses.
Family staycations are face-lifted to long-stay family “work-from-hotel” vacations,

with online learning and zoom meetings enabled in luxurious suites. After all, hotel
staycations are no more. There are only vacation rentals.
The digital nomads, restless at home, may choose to stay in resorts or island
destinations for months, enjoying the open spaces away from crowds at night while
doing Zoom marathons during the day. Bleisure just became the new normal.
The entire hotel can be a movie-set: With green screens providing the backdrop
to epic scenes of exotic locations, superimposed during editing. The entertainment
industry: Films, TV and Fashion, all buzzing inside the hotel “bubble” to produce “new
normal” content, on the makeshift catwalks against the same green background, edited
as if in Paris or Madrid.
The “bubble” opportunity continues. Convention hotels can transform into sports
arenas with huge ballrooms converted into basketball courts, volleyball stadium and
other competitive sports facilities.
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In the meantime, the weekend leisure traveler is locked-up inside a hotel suite,
indulging in room service caviar, dry-aged steak and vintage red wine, watching Netflix
and YouTube all day long, or enjoying the live feed of sports events or movie shoots
happening downstairs, inside the ground floor ballroom.
Staying in hotels and resorts for big conferences and meetings are not to see
each other, but rather to be alone, together. After all, everyone needs a break from the
household clutter and noise to focus and be productive. Might as well do it in an empty
5-star hotel suite with a 4-star room rate.
Repurposing living rooms of suites into “meeting rooms” for doctors and patients
as “safe spaces” for the non-COVID-infected population, will save lives of people who
refuse to go to hospitals for fear of the virus.
Convention halls will become extensions of BPO offices that were previously
maximized in capacity, but now lacking the social distances demanded by the new
normal.
Brands will curate hotel-grade merchandise, from coffee to cutleries to linens.

After all, merchandise is a reminder of the relaxing hotel experience and the great old
friendships between staff and loyal guests and patrons.
Hotels will feature original native delicacies and mementos, sourced directly from
local growers or manufacturers, resold as part of their “community collection”, bringing
the authenticity of places to the consumers sold together with the hotel stay… on a
“Book Now Use Later” scheme.
With neighborhood and office marketplaces dominating the retail landscape,

hospitality-modeled e-commerce platforms will welcome these informal sellers within
customized virtual spaces, where all kinds of stuff are sold, even hotel food, beverage
and giveaways.
Online travel agency (OTA) and meta-search platforms will step aside as hotel
digital marketing experts power-up marketplace booking (buying) engines, channels
and payment gateways.
Targeting groups of customers has become harder, and the size smaller. Within
demographic segments of the female working class, you will find the essential-oil
sniffing, blue-collar graphic artist and gamer, who happens to like Adele; just one of the
numerous micro-segments that will define the future products and services of the new
normal world. But don’t look too far. Literally speaking. Proximity will drive people to
destinations that are accessible by car or a short airplane ride.
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Rebuilding the hospitality industry anchors on the recovery of the destination and
the resilience of the communities. Expect hoteliers to dip their fingers in domestic
marketing initiatives, collaboratively with competitors and other stakeholders, beyond
government. Expect consumer brands to partner with tourism campaigns and local
sustainability programs to get people to travel again or to support homegrown
capabilities. The savvy hotelier becomes the one-stop-shop of strategic partnerships, for
marketing, event management and execution of initiatives.
The hotel business, as we know it, may take a back seat, in the meantime. The
light may be dim, at the end of a pitch-black tunnel, but the bright minds of the hotel
and tourism mavericks will shine through these dark days and lead the rebirth of the
hotel industry, with a vengeance it well deserves.
Questions:
1. What do you think is the statement of the problem of the case? Why? (10 points)
2. Are you favor with repurposing the hospitality industry to serve the community
amidst COVID- 19 pandemic? Why? (10 points)
3. If you are the general manager or owner of the hotel, what marketing strategy
would you implement in order to save the hotel sales and promote employee
retention inspite of this time of pandemic? Discuss. (20 points)
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ASSESSMENT
Name : _________________________________________________ Score: ______

Course, Year & Section: ___________________________________ Date: _______
Subject: ________________________________________________
Subject Teacher: _________________________________________
I. 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. Explain marketing as a management process using a hotel as an example. (10

points)
2. How important is six (6) sigma in a hotel management operation? (10 points)
3. Simplify the discussion on the product life cycle of hospitality products and services.
(10 points)
4. Discuss the economic benefits of marketing to: a) hospitality industry; and b) to the
country. (10 points)
REFERENCES
POTOTAN CAMPUS
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
https://www.economicsdiscussion.net/articles/goods-and-services-meaning-and-
classification-of-goods-and-services/2014
https://en.wikipedia.org/wiki/Goods_and_services
https://en.wikipedia.org/wiki/Services_marketing
https://learn.org/articles/What_is_Hospitality_Marketing.html
https://hoteltechreport.com/news/six-sigma

Unit 2 Lesson Guide in Tourism Hospitality Marketing

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Unit 2 Lesson Guide in Tourism Hospitality Marketing

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West Visayas State University

Unit 2: INTRODUCTION TO HOSPITALITY SERVICES MARKETING

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

1. Defined the meaning of service and service marketing;

1. Meaning and Definition of Service

ACQUIRE NEW KNOWLEDGE

Service in the hospitality industry is the level of assistance provided by staff

Marketing is a continuous, sequential process through which management plans,

Marketing in the tourism and hospitality industry requires an understanding of

Differences Between Goods and Services

There are four key differences between goods and services. According to

Services and experiences cannot be stored; they are highly perishable. In

Developmental Stages of Services Marketing

Just as businesses go through stages, so do products and services. The product

4 Stages of Product Life Cycle

Although competition may be minimal in this stage, it’s important to continually

Conduct market research to determine trends. Adapt your product or service to

When a product or service hits this stage, many entrepreneurs reintroduce it

How Your Product’s Life Cycle Affects Your Marketing Strategy

Opting to discontinue or liquidate the product, on the other hand, requires a

Planning for Services Marketing

To ensure effective services marketing, tourism marketers need to be strategic in

 P: plan (where are we now?)

Internal Marketing External Marketing

Figure 1. Services marketing triangle (adapted from Morrison, 2010)

In traditional marketing, a business broadcasts messaging directly to the

1. External marketing: promotional efforts aimed at potential customers and

The 8 Ps are best described as the specific components required to reach

 Product: the range of product and service mix offered to customers

Marketing is the process for getting a company's product or service out to

Importance of Hospitality Marketing

In any business, a solid marketing strategy is critical to building a brand,

Because the hospitality industry is mostly made up of tourism and other

Characteristics of Hospitality Services Marketing

Service marketers must understand the four characteristics of services:

“Six (6) Sigma” in Hotels

Six Sigma statistical-based methodologies used to reduce variation and eliminate

Lean is a methodology focused on boosting efficiency of business processes by

Brief History of Six Sigma and Lean

Lean, as a paradigm for eliminating all forms of non-value-added work, has a

The Principles of Lean Six Sigma

2. Transportation: Look for areas where items (rather than people) move

3. Waiting: Any time staff member is waiting on another staff member or a guest

4. Overproduction: These are times when there is excessive production of items,

5. Inventory: Holding onto too much inventory is a classic example of waste.

Examples of Six Sigma in the Hotel Industry

B. Front Office Operation/ Sales and Marketing

 Reduce wait- time during peak check- in time

C. Food and Beverage Service/ Production

 Maintain optimal inventory

D. Accommodation Operation (Housekeeping)

 Reduce the turnaround time of making/ turning down a room

E. Human Resources/ Personnel

 Maintain accuracy of payroll

Name : _________________________________________________ Score: ______

1. Case on Point: Resolution given for a Travel Hotspot

2. Case Article: Repurposing hospitality to better serve the Filipino

Family staycations are face-lifted to long-stay family “work-from-hotel” vacations,

Brands will curate hotel-grade merchandise, from coffee to cutleries to linens.

With neighborhood and office marketplaces dominating the retail landscape,

Name : _________________________________________________ Score: ______

1. Explain marketing as a management process using a hotel as an example. (10

Kumar, P. 2010. Marketing of Hospitality and Tourism Services. Mc Graw- Hill

Name : ___________________________________________ Score:

Name : ___________________________________________ Score: