Summary Introduction to Hospitality & Tourism Marketing
145 views 1 purchase
Course
Intro to marketing
Institution
University Of Florida
Book
Marketing for Hospitality and Tourism
Summary of the book Marketing for Hospitality & Tourism Marketing by P. Kotler, J.T. Bowen & J.C. Makens 7th edition Chapter 1 to 16.
Quite in depth for easy understanding if you haven't read the whole chapter.
Samenvatting Marketing for Hospitality and Tourism, Global Edition, ISBN: 9781292156156 Marketing
Samenvatting / summary Marketing for Hospitality and Tourism, Global Edition, ISBN: 9781292156156 Marketing for Hospitality and Tourism
Summary Marketing for Hospitality and Tourism 7th edition
All for this textbook (4)
Written for
University of Florida
Intro to marketing
All documents for this subject (1)
Seller
Follow
stephanie_matos
Content preview
Hospitality Tourism Marketing
Chapter 1
What is marketing?
Marketing is a philosophy a way of thinking, a way of structuring your business and your mind.
Marketing is the process by which companies create value for costumers & society -> resulting in strong
customer relationship -> which capture value from the customers in return.
Marketing’s task = to never fool the customer or endanger the company’s image. Thus;
1. Provide real value to targeted customer
2. Motivate purchase
3. Fulfill consumer needs
Creating customer value and satisfaction is at heart.
One thing that successful companies have in common= they are strongly customer focused and heavily
committed to marketing.
Purpose of a business = to create and maintain satisfied profitable customers.
When the needs are met you attract and retain a customer.
Marketing also includes research, information system and planning.
Good job identifying consumer’s needs, developing a good product, pricing, distributing and promoting it
effectively results will be attractive product and satisfied customers.
Marketing’s aim= to know and understand consumers so well that the product or service fits them and
sells itself.
Selling and promoting is effective if u:
- Define target market
- Understand their wants
- Prepare easily accessible and available value package
Hospitality industry= accommodation, food, beverage and entertainment.
Two main industries that comprise the activities called tourism: hospitality and travel industry.
Model of the marketing process:
1. Understand the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct an integrated marketing program that delivers superior value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profit and customer equity
,Five core customer and marketplace concept:
1. Customer needs, wants and demands
a. human basic needs, satisfies human want is shaped by culture and personality and when
backed by buying power becomes demand. (hunger=need, hamburger=wants)
2. Marketing offerings (tangible products, (services and experience) intangible product)
3. Value and satisfaction
4. Exchange and relationships
5. Markets
Customer value= the difference between the benefits that the customer gains from owning and/or using a
product and the cost of obtaining the product.
Biggest nonmonetary cost for hospitality customers= TIME
Customer’s expectations are based on past buying experiences, opinions of others and market
information.
If expectations are met the customers are satisfied.
Smart companies delight customers by promising only what they can deliver and then deliver more than
promised.
Exchange= the act of obtaining a desired object from someone by offering something in return (one way)
Transaction= trade of value between two parties (two way)
Marketing occurs when people decide to satisfy needs and wants through exchange.
Marketing consists of actions taken to build and maintain desirable exchange relationship with
target markets.
Goal = to retain customers and grow their business with the company by building strong relationship
through delivering consistent superior customer value.
Customer needs and wants are fulfilled through a market offering, which results in customer value and
satisfaction after that results in exchange which results in relationship transaction and leads to market.
Once you understand consumers and marketplace, marketing management can design a customer-driven
marketing strategy.
Marketing management= the art and science of choosing target markets and building profitable
relationships with them.
Marketing managers aim= to find, attract, keep and grow target customers by creating, delivering and
communicating superior customer value.
Two important questions that marketing managers must answer:
1. What customers will we serve? What is our target market?
2. How can we serve these customers best? What is our value proposition?
Value proposition= the set of benefit or value promised to consumers to satisfy their needs.
Value proposition can differentiate one brand from another and position itself.
,Selecting customers to serve happens by dividing the market into segments of customers (market
segmentation) and selecting which segments it will go after (target market).
Five alternative concept which organizations design and carry out their marketing strategies:
- Production concept
- Product concept
- Selling concept
- Marketing concept
- Societal marketing concept
Production concept: customers will prefer product that are available and inexpensive therefor
management should focus on high production and high distribution efficiency. Mass distribution
Negative impact: management may become so focused on production system will forget customer.
Product concept: consumers will favor products that offer the most in quality, performance and innovate
features.
Focus: making continuous product improvement, if not can lead to marketing myopia, loss of interest.
Selling concept: consumers will not buy enough of the product unless the organization takes a large
selling and promotion effort.
Does not establish long-term relationship with customer, focus is only to get rid of product.
Marketing concept: philosophy that to achieve goals firms depend on determining the needs, wants and
interest of targeted market and deliver desired satisfaction more efficiently and effectively than
competitors.
Societal marketing concept: marketing concept in a way that maintains or improve the consumer and
society well-being. Marketing 3.0
Sustainable marketing, socially and environmentally responsible marketing that meets the present needs
of consumers and business while also preserving or enhancing the ability of future generations to meet
their needs. (Bucuti Tara)
Two of sustainability effort of restaurants include: 1. Reduction of food waste 2. Locally sourced food
Concept of shared value focuses on creating economic value in a way that also creates value for society.
Three considerations underlying the societal marketing concept:
- Consumer want satisfaction
- Company profit
- Society interest/well-being
Customer relationship management= the most important concept of modern marketing, it involves the
overall process of building and maintaining profitable customer relationship by delivering superior
customer value satisfaction.
CRM deals with all aspect of acquiring, engaging and growing customers.
The key to building lasting customer relationship is to create superior customer value and satisfaction.
, A customer buys from a firm that offers the highest customer-perceived value.
Customer-perceived value= the customer’s evaluation of the difference between all the benefits and all
the cost of a market offering relative to those of competing offers.
Customer satisfaction = extent to which a product perceived performance matches a buyer expectation.
Engaging customers consist of:
- Customer engagement: fostering direct and continuous customer involvement in shaping brand
conversations, experiences, and community. Goal= make brand meaningful of convo’s and lives.
o Like and share campaigns, free give aways.
- Consumer generated marketing: consumers themselves exchange their own experiences with
others on blogs and videos.
Outcomes of creating customer value:
- Customer loyalty and retention
- Growing share of customers
- Building customer equity
Life time value (LTV)= the stream of profits a customer will create over the life of a relationship to a
business. It will cost more money to do marketing for new customers than to retain a repeat customer.
Share of customers= the share they get of the customer’s purchasing in their product category.
Restaurant= more share of stomach / Airline= more share of travel
Ultimate CRM aim= to produce high customer equity.
Customer equity= total combined customer LTV of all the companies current and potential customers.
Its measures the future value of the company’s customer base.
Five major developments in marketing landscape:
- Digital age digital marketing tools = websites, social media, mobile ads and apps, email etc.
o Social media marketing provides customer engagement 10% of budget
o Mobile marketing
- Changing economic environment more conscious about spending value, buy less
- Rapid globalization global competition
- Sustainable marketing more environmental and social responsibility
- Co-creation interacting with guest to create experience through interaction.
- The sharing economy Airbnb, individuals sharing talents, time, products to gain income.
Chapter 2
Important task of a hospitality business = strong service culture.
Service culture= a system of values and beliefs in an organization that reinforces the idea that providing
the customer with quality service is the principal concern of the business.
Four characteristics of services marketing:
- Intangibility: cannot be seen, tasted, felt, heard or smelled before bought
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller stephanie_matos. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
