Chapter 1

Introduction to hospitality marketing

 What is Marketing?
 Definitions
 Hierarchy of customer value
 Marketing Concept
 Management Orientations
 Environmental Influences
 Macro
 Micro
 Special Characteristics of Services Marketing
 Hospitality Marketing Mix
Many different definitions of marketing
 business philosophy to create and retain
satisfied customers
 exchange process – short term transactional
marketing
 relationship marketing - development of
mutually beneficial long-term relationships
between suppliers and customers
 creating memorable experiences
Figure 1.1 The hierarchy of customer value
Marketing is:

 a business philosophy with the customer at the center

of a hospitality organization’s purpose
 an exchange activity between hospitality organizations
and their customers
 a management process that focuses on planning for the
future success of the organization
 a set of marketing tools, which marketers use to
understand customers’ needs and wants and to develop
products, and services to satisfy or delight customers

The central purpose of marketing is to manage demand

 Product or service orientation
 Operations or production orientation
 Selling orientation
 Marketing orientation
 Societal marketing orientation
Figure 1.2 Marketing orientations
Figure 1.3 Macro- and micro-environmental
influences on hospitality organizations
 The macro-environment

 Political
 Economic
 Socio-cultural
 Technological
 Environmental

 Interaction of PESTE factors

 Hospitality companies have limited
control over PESTE influences; but
major changes in even one PESTE
factor can significantly impact on the
business, either for better or worse

 PESTE factors are constantly changing

 Growth: Occupancy and room rates increase
in response to growing demand
 Peak: Occupancy and room rates remain
strong, funds still available for investment;
growth tends to slow
 Decline: Occupancy begins to decrease
 Trough: There is a large imbalance of supply
and demand during a recession; hospitality
businesses fail
 Resurgence: There is a gradual resurgence,
and the cycle starts all over again
Figure 1.4 Typical hotel industry cycle
 internal company factors
 customers
 employees
 Suppliers
 Intermediaries

 external factors
 direct competitors
 various publics
Hospitality companies have more
influence over the micro-
environment than over the macro-
environment
 seasonality
 intangibility
 Perishability
 Inseparability
 Variability
 Interdependence
 supply
 exceeding demand
 high fixed costs
 The term marketing mix is used to
describe the tools that the marketer
uses to influence demand
 The marketing mix is a core concept in
marketing
 The hospitality marketing mix adopted
in this text is
based on the eight marketing activities
Figure 1.5 The hospitality marketing mix
 People who work in marketing work in:
 online and offline advertising, sales promotion and
publicity
 sales, sales promotion, print and publicity, direct
mail, advertising,
 public relations and customer relations
 marketing research
 online sales and marketing roles such as guest user
interface (GUI) management, web product
development, website sales, search engine
optimization
 database management, daily web operations and
content management
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