Module 1:

Introduction to
Principles of Marketing
Prepared by:
Ms. Justine Adigue
THMD
University of San Jose-Recoletos
In this module, we will learn:
 Definition of Marketing & Other Industry Terms

 Marketing Goals

 History & Evolution of Marketing

Service Characteristics of Tourism & Hospitality Marketing

Are you
ready?
 Marketing:
Definition & Significance
 What Is
Marketing?
Marketing is…
“…the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
high value for customers, clients, partners, and society at large.”

-- American Marketing Association

This means…
 Marketing is more than just a business function. It is not just
about advertising or sales.

Marketing is a philosophy, a way of thinking, and a way of

structuring your business and your mind.

 Marketing’s task is to:

 provide real value to targeted customers
 motivate purchase
 fulfill consumer needs
 Marketing vs. Advertising
 Marketing is often confused with advertising, with most people
believing that these two terms mean the same thing. But this is
incorrect.

Marketing is a systemic process that involves the strategic planning and

implementation of several different steps in order to achieve the
marketing goal.

 On the other hand, advertising is a component of the marketing

process. It is concerned mainly on informing the public about a product,
service, or brand.
 Core Activities of Marketing
• The American Marketing Association’s definition also highlights
the four core activities of the marketing process:

1. Creating

2. Communicating

3. Delivering

4. Exchanging
Creating…
- the process of collaborating

with suppliers and customers

to create offerings that have
VALUE.
Communicating…
 the process of describing company offerings

 also the process of learning from customers

Delivering…

- is the process of getting company products/services

to the customer in a way that optimizes VALUE.
Exchanging…
- the act of trading value
for the company’s offerings
( products / services )
Marketing Applied
to the Hospitality
Industry
 Hospitality Marketing Defined

 Hospitality Marketing is the process of creating superior

customer value and delivering customer satisfaction at a profit.

 Hospitality marketing is based on:

 trust
 understanding of guest needs and wants
 good business relationships
consistent delivery of value
Why Study
Marketing?
 Why study marketing?
 As future tourism and hospitality practitioners, it's your duty
to create superior value for your customers. You will want to
make sure that you deliver customer satisfaction at a profit.

Understanding the basic principles, functions, and

strategies of marketing will help you accomplish these goals.

 Plus, today’s most successful businesses have one thing in

common: They are strongly committed to marketing.
Other reasons to study marketing:

 Know more about your customer

 Success in the travel and hospitality industry depends on how
well you understand your customers. Marketing helps with this,
allowing you to anticipate and meet the needs of your guests.

 Learn how to captivate and engage with clients

 Certain aspects of marketing such as branding, promotion, and
public relations (PR) allow you to influence purchasing decisions
and help you create unique experiences that will inspire
customer loyalty.
Other reasons to study marketing:
 Understand data and trends
 Marketing teaches important skills in data interpretation, which are useful in
turning customer feedback, metrics, and trends into strategies that will lead
the business to success.

 Plan for success

 Marketing offers many tools and strategies that can help travel and
hospitality businesses succeed. You can even use these strategies to enrich
your professional life.

 For example, by applying the principles of marketing to your job search, you
can enhance your career opportunities and hopefully find a job you will love.
Other reasons to study marketing:
 Offers several career opportunities, including:
 marketing research
 merchandising
 sales
 advertising
 product development
 digital marketing
 social media marketing
 event marketing
 nonprofit marketing
Marketing Goals &
Objectives
 The Central Goal of Marketing

"The aim of marketing is to know

and understand customers so well
that the product or service fits
them and sells itself.”

– Peter Drucker, leading management

consultant and author
PICTURE OF YOURSELF IN FRONT OF
YOUR PRACTICUM ESTABLISHMENT
(FOR THOSE WHO DID NOT ENROLL ASSIGNMENT
IN PRACTICUM 1 YET – THE
RESTAURANT OF YOUR CHOICE) AND
AT THE BACK OF YOUR PRINT-OUT
ANSWER THE FOLLOWING
QUESTIONS:
1. NAME AND ADDRESS OF YOUR ESTABLISHMENT.
2. HOUSE SPECIALTY OR UNIQUE SELLING POINT OF THE ESTABLISHMENT.
3. HOW DID YOU ENGAGE WITH YOUR GUESTS IN ORDER TO CAPTURE THEIR
INTEREST IN THE PRODUCT OR SERVICE YOU WERE PROMOTING? / HOW DID
THE SERVICE ATTENDANT PROVIDE INFORMATION TO CAPTURE YOUR
INTEREST IN THE PRODUCT OR SERVICE BEING PROMOTED?
4. WHAT QUESTIONS/ISSUES WERE RAISED DURING THE TRANSACTION? AND
HOW WERE THEY SATISFACTORILY RESOLVED?
5. SUBMIT ON:
3252 3265
WEDNESDAY, THURSDAY,
AUGUST 30, 2023 AUGUST 31,
2023
 Understanding Marketing Goals
 Peter Drucker’s statement sums up the main goal of the marketing
process as a whole. But of course, different companies use different
methods and techniques to achieve that one central goal.

 Also, each business may formulate additional marketing goals to

suit the unique needs of its industry and customers.

 For instance, because the hospitality industry focuses heavily on

creating experiences and relationships with customers, hospitality
marketing is more focused on the goal of inspiring customer loyalty.
 Other common marketing goals:

1. Identifying the target 5. Countering competitive

market strategies
2. Increasing sales and profit 6. Achieving and maintain
good reputation
3. Increasing brand awareness
7. Increasing distribution
4. Increasing market share
channels.
 How to formulate marketing goals
 A successful marketing strategy must be designed with a particular
goal in mind. Marketing goals are statements of what results the
company wants to achieve with their marketing efforts.

 Marketing goals must be:

clear
realistic
credible
in line with the goals of the business
 Marketing Goals VS Marketing
Objectives
 Marketing goals are long-term outcomes that a business wants to
achieve. They describe how marketing will contribute to the
business in key areas of growing sales, communicating with the
audience, and saving money.

 Marketing objectives are specific short-term targets that provide a

clear direction for achieving a company’s goal/s.
 GOAL OBJECTIVE

PLAN Broad plan Narrow plan

ACTION Generic action Specific action

I want to graduate from I will pass my Principles of

EXAMPLE university. Marketing subject.
May not be strictly measurable Must be measurable and
MEASURE or tangible tangible
TIME FRAME Long term Short term
The purpose toward which the
MEANING endeavor is directed. A purpose or target.

PRINCIPLE Based on ideas Based on fact

 Assessing Marketing Objectives
 Marketing objectives are typically assessed through the SMART
method, which stands for:
 Specific

 Measurable

 Actionable

 Relevant

 Time-bound
 What are Marketing KPIs?
 Marketing KPIs – key performance indicators (KPIs) are used to
check that marketing activities of a company are on track.

 Examples of marketing KPIs include:

1. sales revenue
2. number of new customers acquired
3. cost per lead
4. brand awareness
 IDENTIFICATION QUIZ
ALTHOUGH NOT CASE SENSITIVE (Capital or Small Letters)
IDENTIFY THE THIS QUIZ IS SPELLING SENSITIVE SO PLEASE BE CAREFUL
WITH YOUR ANSWERS!!! DO NOT INCLUDE PUNCTUATION
APPROPRIATE TERM AND QUOTATION MARKS. ONLY HYPHENS ARE ALLOWED IF
APPLICABLE.
OR PHRASE
30 ITEMS ( 60 POINTS)
DESCRIBED BY EACH 3 ATTEMPTS ALLOWED
QUIZ QUIZ
ITEM. AVAILABILITY START END

3252 DAY, AUGUST , DAY,

2023 – 9 a.m. AUGUST ,2023 – 5
p.m.
3265 DAY, AUGUST , DAY,
2023 – 9 a.m. AUGUST ,2023 – 5
p.m.
Other Important
Marketing Terms
 Marketing Terms to Remember

1) Market – a set of actual and potential buyers of a

product or service. These buyers typically have the same
wants and needs.

2) Target market – refers to the group of consumers that

a business desires to have as customers.
Target Market: Example

Market: travelers

Target Market: budget travelers

 This is why Cebu Pacific offers

affordable rates and make sure
this is the focus of their
advertisements.
 Marketing Terms to Remember

3) Marketing Mix – a combination of

elements or factors that allows a
company to create an effective
product/service package for the target
market. This is also known as the “4 Ps of
Marketing.”

 Because of the unique aspects of the

hospitality industry, it uses a marketing
mix with seven (7) elements instead of
four (4).
 Marketing Terms to Remember

4) Customer Needs - refers to a customer’s basic requirements for survival,

such as food, shelter, clothing, and safety. They can also be more complex
social needs, such as recognition and belongingness.

5) Customer Wants
 are the form customer needs take as they are shaped by
culture and
individual personality. Wants are how people communicate and satisfy their
needs.

 One major limitation to how people satisfy their wants is money. This is
when consumers begin to form buying decisions.
 Marketing Terms to Remember

6) Customer / Consumer Demands – these are customer wants that are

backed by buying power. People often choose products/services that give
them the most satisfaction and value for their money.

7) Market Supply – refers to the number of companies or

establishments available to provide the products/services required by
customers. In the hospitality industry, this is called “industry capacity”.

8) Market Offerings – some combination of tangible products,

services, information, or experiences that are offered to the market.
 Marketing Terms to Remember

9) Customer Value – this is the difference between the benefits that the
customer gains from owning and/or using a product and the costs of
obtaining a product.

 Costs can be both monetary and non-monetary. One of the biggest

non-monetary cost is time.

customer value = customer benefits — customer

cost (price + hassle)
 Marketing Terms to Remember

10) Marketing strategy – this is the marketing logic by

which the company hopes to create customer value and
achieve profitable relationships with customers.
 TRUE OR FALSE
CLASSROOM QUIZ -- IMPORTANT MARKETING TERMS
– ¼ SHEET OF PAPER

DETERMINE IF THE
3252 3265
STATEMENTS ARE DAY, DAY,
TRUE OR FALSE. [20 SEPTEMBER , SEPTEMBER ,
2023 2023
ITEMS/2 POINTS
EACH]
History & Evolution of
Marketing
 History of Marketing
 Marketing has been around for as long as human beings have
been trading goods and services, starting approximately 15,000
years ago. The method of advertising was predominantly word-of-
mouth.

 Other forms of advertising during the pre-printing press period

include:
 trademarks – the practice of attaching seals or marks to products to
determine where they were sold or who sold them.

 sign-boards – signs attached on the front of shops, inns, and taverns.

 town criers – these are people appointed to call out official

announcements and general news. Town criers were often found in
cities or towns where majority of the citizens were illiterate.
 History of Marketing
 Everything changed when the printing press was invented by
Johannes Gutenberg in 1450. This enabled the mass production
of marketing and advertising materials, allowing businesses to
reach more potential customers.

 In 1836, the first paid advertisement was released, starting the

trend for ads on newspapers, magazines, and other
publications.

 From the 1900s onwards, various technologies have been

used to market and advertise products. These include the
telephone, radio, television, and the internet.
 Evolution of Marketing Concepts
 Through the years, the concepts governing the marketing process have also
evolved.

 Here are the different evolution stages of the marketing concept:

1. production concept
2. product concept
3. selling concept
4. marketing concept
5. societal marketing concept
 Production Concept Era
 This was the time of the Industrial Revolution from the 1860s to 1920s.
Mass production increased the availability of product options.

 The production concept holds that customers will choose products that
are available and highly affordable, so the focus was on production and
distribution efficiency.

 The prevailing attitude of businesses was that: “If you build it,
customers will come.”
 Product Concept Era
 Focus shifted from mass production to quality production.

 The idea was that consumers will favor products that offer the most quality,
performance, and features. Businesses devoted their energy on making
continuous product improvements.

 The problem: cost of products became too high that customers did not want
to pay for features they did not want to use.
 Sales Concept Era
 The sales concept, also known as the “selling concept”, is the
idea that consumers will not buy enough of a company’s
product unless the company undertakes a large selling and
promotion effort.

 This saturated the market and increased competition so much

that businesses found it hard to get actual sales.

 Commoditization emerged: products became mere

commodities and price became the distinguishing competitive
advantage.
 Marketing Concept Era
 The marketing concept is a more recent business philosophy and one that
has been adopted by the tourism and hospitality industry.

 The marketing concept holds that achieving organizational goals depends

on:
 determining the needs and wants of target markets
 delivering desired satisfactions more effectively than competitors.

 Here, marketing is no longer limited to one department. Instead, everyone

in the company was involved in the marketing effort.
 Marketing Concept Era
 Figure 1.0 shows the difference between the Selling Concept and the Marketing
Concept:
 Societal Marketing Concept Era
 The societal marketing concept is a relatively recent development in the field
of marketing.

 It promotes the idea that an organization should determine the needs, wants,
and interests of target markets and deliver the desired satisfactions more
effectively and efficiently than competitors --- in a way that maintains or
improves the consumer’s and society’s well-being.

 Essentially, this concept is champions the use of sustainable and responsible

marketing practices.
 Societal Marketing Concept Era
 This concept is also known as “Marketing 3.0”.
 Figure 1.1 below shows the considerations of the societal marketing concept.
Sample Vintage Ads
 Where Marketing Is Now
Today, both the marketing concept and societal
marketing concept are used by companies. There is also
a huge emphasis on:
 creating value through personalized service
 aligning company values with values of customers
 using digital and online marketing tools

 The customer has essentially become the driver of

marketing activities, showing businesses how they want
products and services to be advertised.
 Customer as the Driver
 Today’s marketing model revolves around
engagement.

 Customers are actively searching for brands they

can trust.

 The way companies create that trust is by creating

content that’s geared toward the purchaser.

 Instead of “Buy our product,” it is, “Join our

community.”
Sample Modern Ads
Sample search ad, also
called a search engine ad
Sample social media ad
Service Characteristics of
Hospitality Marketing
 What Makes Hospitality Marketing Unique?

 Marketing typically deals with goods and services as separate products, so

the techniques used are relatively simple and straightforward.

 goods – products which are tangible items that satisfy customer needs and wants.
 services – products which are intangible items that satisfy customer needs and
wants.

 But marketing for tourism and hospitality is slightly different because it does
not sell a tangible product or an identifiable service. It sells a an experience.
 What Makes Hospitality Marketing Unique?

 Hospitality marketing combines tangible products, like a bed in the hotel or

food in the restaurant, with the intangible aspects of hospitality service.

 This creates a unique and memorable experience that will hopefully stay
with the guest as a cherished memory and inspire loyalty.

 To plan for success, marketers must always take into account the service
characteristics of tourism and hospitality marketing.
 Service
Characteristics
of Tourism &
Hospitality Marketing
What does the tourism and hospitality
industry sell?

EXPERIENCES HIGH QUALITY

SERVICE

• To create effective marketing strategies, we must consider the

service characteristics of hospitality.
 Service Characteristics of Tourism &
Hospitality Marketing

Intangible Can’t be seen, tasted, felt, heard,

Intangible or smelled before purchase.

Inseparable
Inseparable Can’t be separated from service
providers.

Variable
Variable Quality of service depends on who
provides them and when, where and
how.
 Service Characteristics of Tourism &
Hospitality Marketing

Perishable
Perishable Can’t be stored for later sale or use.

Can’t sustain high demand all-year

Seasonal
Seasonal round.

Substitutable
Substitutable Competition is fierce so each
establishment can be easily replaced.
What do these characteristics
mean for hospitality
marketing?
Challenges for Hospitality
Marketers & Relevant
Suggestions
 Other suggestions for managing
INSEPARABILITY
 Make sure customers understand the service delivery system in the
establishment. This means:
 customers must understand the menu items in a restaurant so they get the food
they expect.

 hospitality and travel organizations must inform and train guests on how to avail
of their services and use any tools/technology in the establishment. This will help
avoid guest complaints and frustrations.

 A good example is how hotels and restaurants today are posting ads and videos to
inform guests about the new health protocols they must follow to avoid the
spread of COVID-19. See video: Vikings – Health and Safety Protocols 2020
 End of
Module 1

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