Hospitality Marketing Chapter 1

marketing
the process of planning and executing the conception, pricing, promotion , and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals
product
all goods and services that are bundled together and offered to consumers
service
intangible product sold or purchased in the marketplace
barter
trading of goods and services without the exchange of money
marketing vs. selling
– marketing: a) concentrates on the needs of high potential markets: “sell what they want” b) Satisfies expressed demand (vs. unexpressed demand)
– selling: a) focuses on the firm’s desire to sell products to generate revenue, “sell what you have” b) creating demand
target markets
group(s) of consumers on which the hospitality company chooses to focus its marketing efforts; high potential customers; at the center of the marketing process
four P’s
1. Product
2. Price
3. Promotion
4. Place
uncontrollable external environments
economic, competitive, social, political/legal, and technological
marketing program
basis upon which the firm competes with products and services offered by other competitors; manipulate the marketing mix to create strategies to direct and coordinate marketing efforts
traditional marketing mix
(aka 4 P’s) price, product, place, promotion
hospitality marketing mix
product-service mix, presentation mix, communications mix, distribution mix
price
the value that a company places on its products and services
product
the unique combination of goods and services offered by a company to consumers; includes both tangible and intangible elements of the product
place
the manner in which the products are being delivered to consumers; involves decisions related to locations of facilities and use of intermediaries; includes decisions in regard to customer involvement in the production process
promotion
the methods used to communicate with consumer markets; includes advertising, personal selling, sales promotions (e.g. coupons, rebates, and contests), and publicity
product and promotion variables
directly affect the cost section of an income statement
product-service mix
Bundle of goods and services offered by a hospitality organization; Includes both tangibles (hotel beds) and intangibles (staff service)
presentation mix
elements used to increase the tangibility of the product service mix for the customer (value, benefits, etc.); includes both price and place in the traditional marketing model.
communication mix
refers to the two-way communication between the hospitality organization and the customer. It includes advertising, promotion, market research, and consumer feedback. For example, Marriott International uses dance as a theme in its marketing campaign to showcase the elegant design of the rooms, the graceful service, and the spacious room that some of its brand boasts.
distribution mix
includes all channels available for product and service distribution between the firm and the target market, be it travel agencies or online travel booking engines.