Chapter1++Marketing+for+H&T[1]lecture

Chapter1IntroductionMarketingforHospitalityandTourism“Marketingissobasicthatitcannotbeconsideredaseparatefunction.Itisthewholeofbusinessseenfromthepointofviewofitsfinalresult,thatis,fromthecustomerspointofview…Businesssuccessisnotdeterminedbytheproducer,butbythecustomer.”-PeterDruckerCourseOverview1.Understandthehospitalityandtourismmarketingprocess2.Recognizedevelopinghospitalityandtourismmarketingstrategies3.Understandhowtodevelopthehospitalityandtourismmarketingmix4.ComprehendmanaginghospitalityandtourismmarketingChapterObjectives1.Understandtherelationshipsbetweentheworld’shospitalityandtravelindustry2.Definetheroleofmarketinganddiscussitscoreconcepts3.ExplaintherelationshipbetweencustomervaluesatisfactionandqualityChapterObjectives4.Discusshowmarketingmanagersgoaboutdevelopingprofitablecustomerrelationships5.UnderstandhowthemarketingconceptcallsforacustomerorientationTheTravelIndustry•Thetravelindustryistheworld’slargest•Onebillioninternationaltravelersby2010•Over$1.5trillioninreceiptsby2010•Explosivegrowthinthepast30years(Dubai,Cancun,andotherdestinations)CustomerOrientation•Thepurposeofbusinessistocreateandmaintainsatisfied,profitablecustomers•PutthecustomerfirstandrewardemployeesforservingcustomerswellTheFourPsMarketingMixProductPricePromotionPlace(Distribution)ThePromotionalMixAdvertisingSalespromotionPackagingPersonalsellingPublicrelationsWhatisMarketing?MarketingisasocialandmanagerialprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreatingandexchangingproductsandvaluewithothersMarketingManagerApersoninvolvedinmarketinganalysis,planning,implementation,andcontrolactivitiesCoreMarketingConceptsNeeds,Wants,andDemands•Ahumanneedisastateoffeltdeprivation•Wantsarehowpeoplecommunicatetheirneeds•Whenbackedbybuyingpower,wantsbecomedemandsProduct•Aproductisanythingthatcanbeofferedtosatisfyaneedorawant•Whataresometravelandtourism“products”thatyoucanlist?Value,Satisfaction,andQuality•Customervalueisthedifferencebetweenthecustomerbenefitsfromowningand/orusingaproductandthecostsofobtainingtheproduct•Customersatisfactionisperceivedvaluedeliveredrelativetoabuyer’sexpectations•QualityisthetotalityoffeaturesandcharacteristicsofaproductorservicethatbearonitsabilitytosatisfycustomerneedsExchange,Transactions,andRelationshipMarketing•Exchangeistheactofobtainingadesiredobjectfromsomeonebyofferingsomethinginreturn•Atransactionismarketing’sunitofmeasurementandconsistsofatradeofvaluesbetweentwoparties•RelationshipmarketingisbuildingstrongeconomicrelationshipsbetweenwithsocialtiesbyfollowingthroughonpromisesMarketsAmarketisasetofactualandpotentialbuyerswhomighttransactwithasellerMarketingManagementMarketingmanagementistheanalysis,planning,implementation,andcontrolofprogramsdesignedtocreate,build,andmaintainbeneficialexchangeswithtargetbuyersforthepurposeofachievingorganizationalobjectivesMarketingManagementPhilosophies•Manufacturing•Product•Selling•Marketing•SocietalMarketingManufacturingConcept•Consumersfavoravailableandhighlyaffordableproducts•Managementshouldimproveproductionanddistributionsystems•However,don’tforgetthecustomer!ProductConcept•Consumerspreferexistingproductsandproductforms•Management’sjobistodevelopgoodversionsoftheseproducts•InwardfocusedliketheManufacturingConcept,sodon’tforgetyourcustomers!SellingConcept•Consumerswillnotbuyenoughproductsunlessthecompanyundertakeslargesellingandpromotionefforts•Aimistomaximizesaleswithoutworryingaboutcustomersatisfaction•Failstoestablishalong-termrelationshipwithcustomersMarketConcept•Achievingorganizationalgoalsdependsondeterminingtheneedsandwantsoftargetmarketsanddeliveringdesiredsatisfactionbetterthancompetitors•Createslongtermcustomerrelationships•Frequentlyconfusedwith“SellingConcept”MarketingandSalesConceptsContrastedSocietalMarketingConcept•Organizationshoulddeterminetheneeds,wants,andinterestsoftargetmarketsanddeliverthedesiredsatisfactionmoreeffectivelyandefficientlythancompetitorsinawaythatmaintainsorimprovestheconsumer’sandsociety’swell-beingProductionConceptProductConceptSellingConceptMarketingConceptSocietalMarketingConcept•Consumersfavorproductsthatareavailableandhighlyaffordable.Improveproductionanddistribution.•Consumersfavorproductsthatofferthemostquality,performance,andinnovativefeatures.•Consumerswillbuyproductsonlyifthecompanypromotes/sellstheseproducts.•Focusesonneeds/wantsoftargetmarkets&deliveringsatisfactionbetterthancompetitors.•Focusesonneeds/wantsoftargetmarkets&deliveringsuperiorvalue.MarketingManagementPhilosophiesImportanceofMarketing•Corporategiantshaveincreasedmarketingimportanceforentireindustry•Predictedhotelconsolidationinto5or6chainswillcreateintensecompetition•GrowingcompetitivepressuresincreasingimportanceoftheMarketingDirectorTheFutureofMarketing•Rapidchangesmakeyesterday’stechniquesout-of-date•Allcompanydepartmentsarebecominginvolvedinsatisfyingcustomers•AfocusoninternalaswellasexternalmarketingBestPractices•FourSeasons:Puttingcustomersfirst•SingaporeAirlines:Toprankedproduct•Dubai:Riddingitselfofitsreputat