Republic of the Philippines

CAMARINES SUR POLYTECHNIC COLLEGES

Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

YOROBE, SHIELA M. BSFSM 4A

ASSIGNMENT/QUIZ:

Chapter 1 – Marketing for Hospitality and Tourism

1. What is marketing for the Hospitality Industry?

2. What is Hospitality Marketing?
3. Importance of Marketing.
4. Travel Industry
5. Understanding marketing, definition and the difference.
a. Needs
b. Wants
c. Demand and products
d. Value satisfaction
e. Quality
f. Exchange transactions
g. Relationships market

6. Marketing Management
7. 5 marketing management philosophies
a. Production concepts
b. Product concepts
c. Selling concepts
d. Marketing concepts
e. Societal marketing concept

Chapter 2 - Service characteristics of Hospitality and tourism marketing

1. Service culture
2. Characteristics of services
3. Management strategies for service business

Chapter 3 – Internal Marketing

1. Internal marketing
2. Internal marketing process
3. Dissemination of marketing information to employees
4. Implementation of a reward and recognition system
5. Non-routine transaction

Ref: - Marketing for Hospitality and Tourism 3rd Edition by James Mckens
- Tourism Marketing 2015 Edition by Maricel Badilla

PREPARATION:

Chapter 1 – Marketing for Hospitality and Tourism

1. Marketing strategy is critical to building a brand, attracting new customers and

maintaining loyalty. The hospitality industry is no different. Because customer
loyalty is a key, marketing managers and executives devote a lot of time and
resources to building brand awareness and creating on going, interconnected
campaigns. These marketing efforts usually include both print and digital collateral
that target former guests while also attracting new clientele. However, this particular

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

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.

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.

2. Hospitality marketing is marketing efforts directed towards the increase of revenue

in the hospitality industry. Learn about education and careers in the hospitality
marketing industry. Schools offering Sales & Marketing degrees can also be found in
these popular choices. 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.

3. The heart of your business success lies in its marketing. Most aspects of your
business depend on successful marketing. The overall marketing umbrella covers
advertising, public relations, promotions and sales. Marketing is a process by which a
product or service is introduced and promoted to potential customers.

For a business to succeed, the product or service it provides must be known

to potential buyers. Unless your business is known in the community and have
communication with your customers readily available, you have to use marketing
strategies to create product or service awareness. Without marketing, your potential
customers may never be aware of your business offerings and your business may
not be given the opportunity to progress and succeed. Using marketing to promote
your product, service and company provides your business with a chance of being
discovered by prospective customers.

4. The travel industry caters to recreational, leisure and business travelers. The

travel sectors cover the following services:
 Transportation services (such as cruise ships, airlines and taxis)
 Hospitality services (including accommodation in hotels and resorts)
 Entertainment services (in casinos, amusement parks, shopping malls and
the theatre)

A travel agency is a private retailer or public service that provides travel

and tourism related services to the public on behalf of suppliers such
as activities, airlines, car rentals, cruise lines, hotels, railways, travel insurance,
and package tours. In addition to dealing with ordinary tourists, most travel agencies
have a separate department devoted to making travel arrangements for business
travelers; some travel agencies specialize in commercial and business travel only.
There are also travel agencies that serve as general sales agents for foreign travel
companies, allowing them to have offices in countries other than where
their headquarters are located.

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

5. The marketing concept concentrates on the buyer’s needs and then the means are
identified to meet out those needs. Therefore, the customer is regarded as the king of
the market. The marketing concept is a business idea, which states that the
company’s success lies in becoming more effective than the rivals, in producing,
delivering and communicating greater customer value to the target market.

It relies on four elements, i.e. target market, integrated marketing, customer

needs and profitability. The concept begins with the specific market, stresses on
customer needs, coordinates activities that influence customers and reaps profit by
satisfying customers. The notion holds that a firm can attain its objective of profit
maximisation, in the long run, by identifying and working on the needs of the current
and prospective buyers. The central idea of marketing concept is to fulfil the needs of
the customer, by means of the product. Hence, all the decision was taken by the firm
keeping in mind the satisfaction of consumers.

Needs, wants and demands are a basic part of the marketing principles. Needs, wants
and demands play a vital role in terms of marketing management. It becomes easier to deal with
monotonous problems, related to marketing. Needs Wants and Demands: Marketing Concept
To begin with, needs, wants and demands are tied. We, humans, have infinite wants and
demands. When the feeling of deprivation emerges and our mind requires something, we call it
needs. Now, let’s have an in-depth discussion about all three of them.

A. Needs
The easiest explanation of the concept “needs” is the basic human requirements like
shelter, clothe, food, water, etc. These are essential for human beings to survive. If we take the
topic further, other needs are education, healthcare, insurance, pension, etc.

Basically, things that we can associate with “needs” don’t require a boost because these
are the products and services people always buy (for example, people who are into home
security, always purchase Arlo or Arlo Pro Security Cameras).

Though, don’t feel relieved if you’re planning to promote a product or a service that falls
under the “needs” category. In the 21st century, thousands of brands are promoting the same
products and services from the needs category. In other words, there are thousands of
competitors trying to sell the same things you are. In addition, needs aren’t only physical. Needs
can be a social thing, for example, social class, belonging to a certain society and need of self-
expression.

B. Wants
This is quite different from needs. Wants aren’t permanent and it regularly changes. As
time passes, people and location change, wants change accordingly. Wants aren’t essential for
humans to survive, but it’s associated with needs.

For example, if we always manage to satisfy our wants, it transforms into a need. To
summarize this concept, let’s say wants are shaped by one’s society and surroundings. When,
you have the desire to purchase a product that isn’t essential for your survival. Simply put, a
want is a product desired by a customer that is not required for us to survive. So, want is the
complete opposite of need, which is essential for our survival. Today, majority of
products desired by customers can be classified as a “want”. Why? Because, for most people,
the only needs are shelter, water, food and clothe.

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

C. Demands
Let’s discard the boring explanation process and start with an example. There are two
options; you either buy a Samsung’s or Apple’s product. Though, the prices are really different.
The Samsung’s phone costs $150 and the Apple’s iPhone $780. We’d prefer to purchase the
Apple product, but the question is, can we?

If we, financially, are strong enough and can allow ourselves to buy a $780 iPhone, it
means that we’ve transformed our want/need into a demand.

So, the key difference between wants and demand is desire. Consequently, for people,
who can afford a desirable product are transforming their wants into demands. In other words, if
a customer is willing and able to buy a need or a want, it means that they have a demand for
that need or a want.

Categories:

D. Value, satisfaction and quality are

interrelated concept. Because customers focus
to value, quality and satisfaction while
purchasing the things form the market. To be
familiar about these concepts very well below
is their details:

a) Value: It is the ratio between what the

customer gets and what he gives. The
customer gets benefits and gives costs.
Product choice is guided by the value provided
by the product.
• Benefits of customer may be functional and
emotional
• Cost of products can be monetary, time,
energy and psychic.

Marketing should provide value to the customers by raising benefits and reducing costs.

b) Satisfaction: It is the customer’s perceived performance from a product in relation to

the expectations. The customer is dissatisfied if the performance matches the
expectations; delighted if the performance exceeds expectations. Marketing aims for
total customer satisfaction by matching product performance with expectations.

E. Quality: Quality is perception of product excellence by customers. It is linked to

customer need satisfaction. Organizations adopt the concept of Total Quality
Management (TQM). They continuously improve the quality of their products for
customer satisfaction. Everyone is committed and involved to satisfy customer needs
though quality improvement.

F. Exchange transactions are transactions in which one entity receives assets or services,

or has liabilities extinguished, and directly gives approximately equal value (primarily in

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

the form of cash, goods, services, or use of assets) to another entity in exchange. In
an exchange transaction, the payee agrees to exchange cash or assets and expects to
receive some agreed upon benefit in return. A contract is an example of an exchange
transaction whereas the organization accepts cash in exchange for agreeing to complete
the services that are outlined in the contract.

G. Relationship marketing was first defined as a form of marketing developed from direct

response marketing campaigns which emphasizes customer retention and satisfaction,
rather than a focus on sales transactions. [1] Relationship marketing differs from other
forms of marketing in that it recognizes the long term value of customer relationships and
extends communication beyond intrusive advertising and sales promotional messages.[2]
With the growth of the internet and mobile platforms, relationship marketing has
continued to evolve as technology opens more collaborative and social communication
channels. This includes tools for managing relationships with customers that go beyond
demographic and customer service data. Relationship marketing extends to include
inbound marketing efforts, (a combination of search optimization and strategic
content), PR, social media and application development. Relationship marketing refers to
an arrangement where both the buyer and seller have an interest in providing a more
satisfying exchange. This approach tries to transcend the post purchase-exchange
process with a customer to make richer contact by providing a
more personalised purchase, and uses the experience to create stronger ties.
Relationship marketing is different from other marketing techniques as it mainly focuses
on long term relationship with customers.
(https://en.wikipedia.org/wiki/Relationship_marketing)

6. The application, tracking and review of a company are marketing resources and
activities. The scope of a business' marketing management depends on the size of
the business and the industry in which the business operates. Effective marketing
management will use a company's resources to increase its customer base, improve
customer opinions of the company's products and services, and increase the
company's perceived value.
(http://www.businessdictionary.com/definition/marketing-management.html)

Marketing managers play a critical role in the success of a company. Responsible

for developing the customer base of a company, a marketing manager plays a direct role
in fostering relationships with customers. Extensive travel and long hours are part of the
experience of being a marketing manager for a company. When a person serves as a
marketing manager for a company, he or she will receive a great salary and benefits
package. The road to becoming a marketing manager usually takes years of experience
in the field of marketing. As long as an employee has proven his or her ability to attract
and retain new customers, this is usually a reason that is powerful enough to promote
him or her to this position.

Responsibility:

One of the major responsibilities of a marketing manager is developing programs

that will develop the customer base for a product. This means that you may develop a
new social media marketing initiative that increases the interest that young people have
in your product. You are responsible for essentially creating the “buzz” about a product.
You may need to oversee a group of marketing agents and ensure that they meet their

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

goals for a given month. You play an important role in representing the brand of your
company, especially when you are on the road.

7. Marketing Management Philosophies (5 Concepts)

a.  Production Concept:
Production concept lays emphasis on availability and affordability of products. If
these two elements are present in marketing, the enterprise will succeed. Accordingly,
marketing should aim at the reduction in the cost of production and concentrate on mass
production and distribution. This concept holds that potential exchange would be realized
when the products are inexpensive and are widely available.

However, this concept is not entirely true. Sometimes customers don’t always buy
products which are inexpensive and easily available. For example, fleet shoes.

b.  Product Concept:
Product concept lays emphasis on ‘quality of production’ rather than ‘quantity of
production’. Accordingly, the enterprise should concentrate on product and its continuous
improvement over time because customers favour high quality products and are ready to
pay higher prices for them.

The enterprises following this concept direct their maximum efforts into creating
superior products and improving the existing products. However, the main drawback of
this concept is that customers will buy the product only if they require the same. For
example, a firm may be dealing in very spacious, luxurious and expensive cars but the
customers will demand same only when they really need them and can afford their price.

c. Sales Concept:
This concept stresses on attracting and persuading customers to buy the product
by making aggressive selling and promotional efforts. Thus, the focus of business firms
is to ensure the sale of products through aggressive selling techniques such as
advertising, personal selling and sales promotion without giving any consideration to
customers’ satisfaction.

The main aim of selling is to convert the goods into cash by using fair or unfair
means. But the buyers cannot be manipulated every time; hence selling can be
successful only for short period but not during long period.

d. Marketing Concept:
According to this concept, customer satisfaction is the key to organisational
success. It assumes that a firm can achieve its objective of maximizing profit in the long
run only by identifying and satisfying the need of present and prospective buyers in an

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

effective way. Business firms don’t sell what they can make; rather they make and sell
what customers want.

This concept is based on the following pillars:

(i) To identify the market or customers who are selected as the target of
marketing effort.
(ii) To understand the needs and wants of customers in the target market.
(iii) Developing products or services for satisfying the needs of the target
customers.

(iv) To ensure better satisfaction of needs of the target market as compared to

competitors.
(v) To do all this at a profit.

e. The Social Marketing Concept:

The marketing concept has been criticized by some of the people because of the
challenges posed by social problems like environmental pollution, deforestation, population
explosion, inflation etc.

This is because any activity which results in customer satisfaction but is harmful for the
interest of the society at large cannot be justified. Therefore, the firms must perform the
functions of marketing keeping in view the social welfare. For example: No to plastic bags,
recycled paper.

Chapter 2 - Service characteristics of Hospitality and tourism marketing

1. A service culture exists when you motivate the employees in your organization to take a
customer-centric approach to their regular duties and work activities. Sales and service
employees put customer needs first when presenting solutions and providing support.
Other employees work behind the scenes to ensure customers get a good product
experience. Developing a service culture requires time and consistency.

The first step in developing a service culture is to show genuine interest in finding
out what your customers want from your company, products and services. Ongoing
research can help you gain insight as to how your company currently performs and what
improvements you must make to strength loyal relationships. Your employees can more
easily by into the customer-first mentality you project if they see you working to gather
information about your customers.

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

Communicate and Establish Consistency

Most elements of a company culture begin at the top. As a business owner or
manager, your actions and words set the tone for what employees view as core
philosophies of the business. If you project a service attitude in your dealings with
customers or clients, that helps. You can establish a vision and company objectives that
emphasize customer service. In delegating responsibilities to departments, work teams
and employees, you want to convey the specific duties each holds in the bigger picture.
Reward and Recognize

No matter what you say to instil viability in any cultural component, you must
reinforce its importance through action. To perpetuate a service culture, you need to
include service standards in job descriptions, employee evaluations and compensation. If
you emphasize customer service in assessments, raises and promotion decisions, even
above other production and sales standards, it strengthens your commitment. Publicly
recognizing top service performers with praise and awards may encourage workers to
work on their reputations as elite service performers. You may also have to eliminate
workers that don't fit into or desire to fit into the culture.
Set Policies and Train

You service culture is also developed through formal written documents and
communications. Your company mission, website, employee policy manual and
customer service policy all provide opportunities to infuse customer-oriented policies for
internal or external communication. Once you establish customer-friendly policies, you
need to orient and train new employees to accept the standards. Part of developing an
enduring service culture is getting new hires to quickly assimilate into it.

(http://smallbusiness.chron.com/term-service-culture-mean-companies-develop-
service-culture-74446.html)

2. The four key characteristics of service businesses are: Intangibility, Inseparability,

Perishability, and Variability. Let's take a closer look at each of these qualities so you can
apply them to your service business. I will also provide some tips for dealing with the
challenges inherent in each characteristic.

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

1) Intangibility. When you buy a car, you can see it, feel it, and even test it prior to purchase.
In other words, products have tangible qualities that provide information to consumers so they
can easily compare one product to another. Services, on the other hand, are intangible. Most
services cannot be experienced or consumed until the purchase is made. Customers can easily
end up feeling like they have to make a purchasing decision without adequate information.

2) Inseparability. To continue using the automobile analogy, cars are produced at one
location, sold at another, and used at yet another location. Services are unique because they
are usually provided and consumed at the same time in the same location (e.g. a haircut or car
tune-up). Because of the characteristic of inseparability, customers have strong expectations
about how a service will be provided, which can lead to disappointment if their expectations are
not met.

3) Perishability. If a car does not sell today, it can be stored and sold the following day or at
some other time in the future. Services, on the other hand, are often perishable, meaning that
unused capacity cannot be stored for future use or sale. For example, a restaurant might be full
one night and half empty the next. If the restaurant runs with an inflexible staffing model,
expenses are the same each night. However, the revenue picture is quite different, which
impacts profits. The same is true for Mt. Bachelor – every empty seat on the chairlift is lost
revenue.

4) Variability. Once you have decided to buy a Honda Accord, you know that there will be no
variation in the quality of the Accord from one Honda dealer to another. Manufactured goods
tend to have automated processes and quality assurance procedures that result in a consistent
product. However, the quality of a service can vary by many factors, including who provides it,
where it is provided, when it is provided, and how it is provided. The more your business relies
on humans to provide services (instead of automation), the more susceptible you are to
variability.

3. Management strategies for service business

 Reel In Customers With Incentives.

 Stay in Touch.
 Make Use of Social Networking.
 Stock Up on Business Cards.
 Connect With the Community.
 Get in the News.
 Compete Based on Value, Not Price.

Chapter 3 – Internal Marketing

1. INTERNAL MARKETING is an on-going process that occurs strictly within a company or

organization whereby the functional process is to aligns, motivates and empowers
employees at all management levels to consistently deliver a satisfying customer
experience. With an internal marketing strategy, employees are treated as “internal
customers” who must be convinced of a company's vision and worth just as aggressively
as “external customers.” The goal of internal marketing is to align every aspect of a
company’s internal operations to ensure they are as capable as possible of providing
value to customers. If a company can operate in a coordinated and standardized way,
that company can provide a more consistent experience to their customers.

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BACHELOR OF SCIENCE IN FOOD SERVICE MANAGEMENT

Internal marketing is based on the idea that customers’ attitudes toward a

company are based on their entire experience with that company, and not just their
experience with the company’s products. Any time a customer interacts with an
employee, it affects their overall satisfaction. Everyone from a sales clerk to an over-the-
phone tech support specialist helps to shape that customer's experience. Therefore,
customer satisfaction is deeply dependent on the performance of a company's staff. 

2. INTERNAL MARKETING PROCESS

 Establishment of a service culture
 Development of a marketing approach to human resource management
 Dissemination of marketing information to employees
 Implementation of a reward and recognition system

3. Dissemination of marketing information to employees

Meetings are expensive ways to distribute information to employees. Rather than

waste work hours telling people the details about the latest protocol in person, companies
can save money by disseminating information in more efficient ways. Keep your employees
up-to-date by using a combination of communication methods to get the word out.

 Email
 Website
 Fliers and posters
 Group text messaging

4. Implementation of a reward and recognition system

Although these terms are often used interchangeably, reward and recognition
systems should be considered separately. Employee reward systems refer to programs set
up by a company to reward performance and motivate employees on individual and/or group
levels. They are normally considered separate from salary but may be monetary in nature or
otherwise have a cost to the company. While previously considered the domain of large
companies, small businesses have also begun employing them as a tool to lure top
employees in a competitive job market as well as to increase employee performance.

As noted, although employee recognition programs are often combined with reward
programs they retain a different purpose altogether. They are intended to provide a
psychological—reward a financial—benefit. Although many elements of designing and
maintaining reward and recognition systems are the same, it is useful to keep this difference
in mind, especially for small business owners interested in motivating staffs while keeping
costs low.

5. Non-routine transactions include the acquisition or disposal of a business unit, the

adoption or cancellation of a benefit plan, a change in accounting principles, the
opening/closing/sale of a plant, implementation of a restructuring plant, and any other
item that is considered to be infrequent or unusual to operations and is determined to be
non-routine.

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