Introduction Marketing is an important tool for ensuring success of firms in services industry including hospitality sector. By nature services industry is so competitive and unless, firm use the right marketing tools and strategies they are likely to be wiped out of the market by competition. Hospitality sector is not an exemption. It is highly competitive and hotels that needs to stays in business must uses marketing techniques and tool very well. This paper will examine, evaluate and discuss the techniques, tools and process that Hotels use or can use to achieve positive results
- Discuss the concepts of marketing in a relevant service industry context
The success of any organization in the hospitality industry depends, to a large extent, on its marketing activities. Marketing is defined as the process of analyzing customers’ needs and making strategic and tactical decision to meet those need better that competitor (Palmer 1994). Marketing has several concepts all of which work together to influences the marketing activities. They include needs, wants, demands, markets, Value and satisfaction, exchanged, transaction and relationship (Palmer 1994, Kotler 1994, Tan and Wong 2009)
Need, wants and demand One of the most important concepts in marketing is that of human needs, Needs are defined as a state of felt deprivation (Tan and Wong 2009). Palmer (1994) describes needs as the human desire necessary for survival. For instance, thirsty is a need. On the other hand, wants is described as those things required to fulfil needs. For instance, to fulfil the thirst, a person may require soda, bottled water, tap water etc. All these are wants. In most cases, wants are determined by personality culture as well as other internal and external factors. Marketing aims to identify people wants and needs in order to provide those product and services that will meet them. When wants is supported by ability to purchase it become demand (Tan and Wong 2009).
Product Another important concepts or marketing is product. Product is anything that is designed to satisfy human need and want. The word product though may suggest physical object, it is used in this case, to refer to both tangible and intangible things that satisfies wants. In other word, it is used to refer to both products and services. Product is an importance concept in marketing. A firm must offer products that satisfy consumers’ needs and wants for it to be successful (Tan and Wong 2009). In hospitality industry products may include meal and beverages, accommodation services, conferences facilities recreating services among others
Value and satisfaction The guiding concepts in marketing activities are customers’ value. In most cases, consumers always have so many choices to choose from to satisfy a particular need. The choices they make are usually influenced by perceived value of a product. A product that is perceived by customers as the most need-satisfying is always chosen. Customer prefers a product that gives them most satisfying benefits at low cost (Tang and Wong 2009, Kolter 1994).
Exchange In marketing, the concepts of exchanges are crucial. In order to satisfy human needs and wants exchanges must take place. Exchanges are the act of obtaining a need satisfying product or services in exchanges of something (Tan and Wong 2009). For instance, in hospitality industry exchange take place when traveller or hotel guest inn needs of accommodation exchanges money with accommodation spaces and services
. - assess the impacts of marketing environment on industry
Just like other industry, player in the hospitality industry operate in an environment that is influenced by micro and macro environment factors such as technology, legislation, economic condition, political activities among others. The external marketing environments in which hotels operate affect the ways in which marketing activities are done. For instance, the changing social and lifestyle of consumers affects the services they needs, the channel of communication they consumers, type of information they need among others. Equally, legislation affect how marketing activities are developed, designed and implemented (Kotler, Bowen and Makens 2006).
On the other hand, they are several internal environments which affect marketing in hotel industry. These include resources available in an organization. For instance the amount of marketing budget determines the kind and type of marketing hotels should engage in. Due to the significant influences the marketing environment has on the hospitality industry, it is important that hotel marketer uses conduct a thorough environment scanning before embarking on marketing activities ( Kotler 1994, Walket et al 1995, Berry and Parasuraman 1992) . There are two common methods that can be used for environment scanning. These are PESTEL and SWOT analysis. PESTEL analysis is tool for scanning the Macro environment in which firm operate. The tool analyzes the political, economical, social, technological, and environmental and a legals issue that affect or may affect firm’s operation (Kotler 1994). In other word, it helps marketer understand the macro environment of their business. SWOT analysis on the other is tools or techniques for scanning organization micro environment. It focuses on identifying the strength and weakness of an organization as well as it opportunities and threats (Kotler 1994, Berry and Parasuraman 1992).
It is only after an environment scanning is conducted that proper marketing of services in hospitality industry can take place.
- evaluate the importance of consumer market in services industry
In the services industry, consumer market is very crucial for the survival of organization. Tan and Wong (2009), define consumer market as one which is dominated by products and services designed to meet needs and w ants of general consumers for personal consumption. In the hospitality industry, consumers market is the largest market (Tan and Wong 2009, Kotler et al 2006, Reid and Bojanic 2006). Most of hotel booking are done by individuals not business. Therefore, any organization in the hospitality industry must approach and deal well with consumers market in order to be successful.
The major limitation with consumers market is that the needs and wants of consumers are never rigid, they keep on changing and as such marketer must keep monitoring them in order to fulfil them ( Tan and Wong 2009). In addition, consumer market is highly price sensitive as compared to business market thus denying firms huge profit margin as they has to sell their products within an acceptable price range ( Kotler et al 2006).
- discuss the rationale of developing different market segments
One important function is marketing is to divide a general market into well defined market segment. The process of developing different marketing segment is referred to as marketing segmentation. The needs and wants of consumers in any given market, though related are never the same. For instance in hospitality, the services that a business traveller needs may different from that of tourist and leisure-seeking traveller. It is thus important to divide the market according to different segment using well defined criteria. Developing various market segment help organization to focus entire on the identified market segment in order to fully meet the needs and wants of consumers in that segment (Kotler et al 2006).
2.1 Assess the importance of marketing mix Deciding the market mix is very crucial for success of any business. In the hospitality industry marketing mix is crucial as it determine how well hotel meet the needs of the targets market. Basically, marketing mix is used to refer to four marketing variables that are crucial in marketing a products or services. These are Products/services, place, promotion and price (Tan and Wong 2009, Kotler et al 2006, Kotler 1994)
Product- this is a term used to refer to what an organization has to offers to the market. It therefore refers to both products and services (Kotler et al 2006). In the hospitality industry, product is the primarily variable for marketing and they include meal, accommodation, conferences facilities, recreation facilities, spa etc (Tan and Wong 2009). In order to meet the need of the target market, firms in the industry must offers products/services that are relevant to the target market. For instances, if a hotels target leisure tourists,
it must offers services such as recreation facilities alongside basic offering such as food and accommodation since they are crucial and important to leisure traveller (Tan and Wong 2009).
Place- The place in which the target market accesses the products is crucial. In hospitality industry, the location of hotels and it services is very important in meeting the needs of target markets. For instance, if a hotel target, leisure and tourist traveller, it hotel facilities need to be located near or in tourism attracting destination. Equally, if a hotels is targeting business traveller, it is should be located in areas that is conveniences for business people. These may include airport, town and cites etc (Tan and Wong 2009).
Pricing- defining the pricing strategy to be used in the services industry is crucial in attracting and retaining the customers. In the hospitality industry, the pricing of key offering including food and beverages accommodation, conferences facilities etc is crucial. If priced competitively, it becomes easier to attract and retain customers since most of customers are driven by value. I.e. achieve much benefit at fair or low costs (Tan and Wong 2009).
Promotion - Having the right products, choosing the rights location and pricing services competitively is not enough to attract and retain customers. The marketing managers need to promote the services being offered. Promotion is defined as the process of communicating with target customers (Kotler et al 2006). There are several ways in which hospitality services can be promoted. These include TV advertisement, Brochures, social media, Billboard, newspapers ad among others (Tan and Wong 2009).
2.2 analyze pricing strategies and policies in relation to the industry As mentioned earlier, the pricing strategies adopted by any firm is crucial in attracting and retaining customers (Tan and Wong 2009). The prices should therefore be determined carefully. There are several pricing strategies that hotel can use to determine the price of their services. These include, psychological pricing, Penetration pricing, premium pricing skimming pricing.
Psychology pricing involves pricing service or product using unrounded figure in order to influence consumer mind positively. For instance, € 99 instead of €100 in the minds of customers, a price of €99 is far less than €100 (Leigh 2016).
Penetration Pricing – this is a pricing strategy used by firms to enter and capture market share by offering lower prices that what competitor offers to attract buyers (Leigh 2016). This strategies is most appropriate to use when a new hotels is entering the market. As mentioned by Assael et al (1995) the penetration strategy help create awareness and also motivate people to try the services being offered.
Premium pricing- This strategies involves charging higher prices that competitor does. It is most appropriate to uses when a hotel has competitive advantages of it key competitors. This pricing strategy gives the highest profit margin but each sale (Leigh 2016).
Skimming strategies- This is a pricing strategy in which the firm or hotel charges high prices in the initial stages of operation but later lowers the prices (Leigh 2016, Kotler et al 2006). The strategy is best used when a hotel enter new market with no of few competitors (Leigh 2016). The skimming pricing strategies allows a firm to gain maximum revenues before the market is saturated with similar products or services (Kotler et al 2006. Kotler 1994)
Due to the important impacts pricing strategies has on hotel success, it is important that the environment both internal and external is analyzed before and organization decide on the right strategy to use.
3.1 Evaluate the role of promotion mix Promotion mix plays an important role in marketing hotel services. According to Lombardo (2016) Promotion mix is a blend of promotional variables that are used by marketer to help firm achieve it marketing goals. In the hospitality industry, there are several promotional mix variables that can be used by hotels to reach their target market these include Public relation, personal selling, advertising and sale promotion
Public relation refers to a process of communication that aims to build mutually beneficial relationship between organization and their public (Lombardo 2016). Public Relation plays an important role in promotion. It helps create positive image about a hotel.
Sale promotion is another important component of promotion mix. It involves the uses of method and techniques to stimulate customers purchase. Generally speaking, sale promotion is involves in enticing and motivating customers to make purchase (Lombardo 2016).
Advertising is a form of Impersonal communication used by firms to create awareness about their products and services. In the hospitality industry, advertising play a very important role of creating awareness, educating and create desire in relation to hotel offerings/services (Tan and Wong 2009). Basically speaking, the major role of advertisings is to reach the mass target customers of a hotel and informing them about services and products on offers.
All these variables work together to create good reputation for hotel, increases sale and create awareness to as many people as possible (Tan and Wong 2009).
3.2 Analyze the role of sale promotion and public relation play in promotion effort Sale promotion and public relation are two most important variables in the promotion effort. Sale promotion involves the uses of method and techniques to stimulate customers purchase. Generally speaking, sale promotion is involves in enticing and motivating customers to make purchase. It focuses in short-term in nature such that it aims to create as many sales as possible within the shortest time possible (Lombardo 2016).
On the other hand, Public relation refers to a process of communication that aims to build mutually beneficial relationship between organization and their public. Public Relation plays an important role in promotion. It helps create a positive image about a hotel (Lombardo 2016). There are several public relation activities that hotels can engage in. These include environment conservation, Charity to the needy, among others (Reid and Bojanic 2006)
3.3Discuss the relevance of marketing research in services industry context One important component of marketing in the services industry is marketing research. As mentioned earlier, the aims of marketing is to identified customers needs and put in place strategies to meet them (Kotler 1994). Market research help marketer identify and understand the needs of consumers. It is therefore a primary function in marketing. Without proper market research, not objective marketing activities can take place. Boyce (2002) define marketing research as the process of gathering information to understand consumers’ needs and identified marketing opportunities.
Proper marketing research is crucial in services industry. In the hospitality industry, marketing research help market not only identified market opportunities, it also allows marketer to keep on monitoring the ever changing consumers’ needs. This help Hotels to align their services and offering to the current needs of customers. In additional, as mentioned by Reid and Bojanic2006) no single hotel operate in vacuum. This mean that each hotels is affected by the action of others hotels, in the industry. Marketing research helps identified the action take by competitor hence giving a hotel the opportunity to respond appropriately
. Generally, marketing research is the tools that help players in the hotels industry to understand current consumers’ needs identify any market opportunity and monitor the action of competitor so as to respond appropriately
. 4.1 Undertake an appropriate market research for services operation Marketing research is an important tool in marketing. However, as mentioned by Hair et al (2003), Usefulness of marketing research depends on how it conducted. If properly conducted, it provides valuable information that informs marketing activities. If improperly done it can provide misleading nformation. There are various ways in which a proper marketing research can be conducted. These include surveys, interview, observation, analysis of existing data (Boyce 2002). The choices of each method mentioned above depend on the prevailing condition such of targeted market, information needed, among others. Boyce (2012) stated that, when conducting a market research, it is important to ensure it is conducted in very objective manners. This help in gathering feedback from customers that is valuable and relevant. If conducted in a subjective manner, market research can lead to gathering of misleading and biased information.
4.2 Analyzes the suitability of different media in marketing services There are various media that are used for marketing purpose. These may include Television, Radio, newspaper, social media, brochures, Billboard and posters (Ahmed and Rafique 2002) each of these media has their strength and weakness and such the suitability of each of them in marketing hotel services depend on the prevailing condition and objectives of the firm. For instances, If a hotels want to communicate to something urgent to it customer, television, radio and social media are the fasted media hence more suitable in such case. On the other hand, if a hotel wants to provide detailed information related to its operation, print media such as newspaper is the most suitable media to use as they allow inclusion of more detail (Kotler et al 2006).
Social media including face book, Trip advisor, twitter, WhatsApp, etc has emerged to give hotels and firms a new interactive channel for communication. Unlike all other media, social media allows hotels marketer to engage instantly and directly with customers. The interactivity Brough by social media make them suitable to use when marketer needs to understand their customers very well (Kang 2011).
4.4 Evaluate the implementation of marketing plan for a products or services In order to market services such as those offered by hospitality industry more effectively, a marketing plan must be developed and implemented. Marketing plan blueprint that identified the firm’s marketing objectives, target customer and the method and techniques to be used for promotion (Reid and Bojanic 2006). The success of organization marketing effort depends on how well it marketing plan is developed and implemented (McDonald 2002).
Proper implementation of marketing plan requires that all staffs relevant to it implementation are well trained and on brought on board (McDonald 2002). Equally, enough resources must be allocated towards it allocation. There is no ways a marketing plan can be implemented without resources such as finances, and human resources (Reid and Bojanic 2006).
There are however several challenges that are likely to be faced when implementing marketing places. One of such problem is the changing needs of customers. As asserted by Walker et al (1995) sometime customers’ taste, preferences and needs may changes so quickly even before a company implement it plan fully. Another, challenges faced during implementation of marketing plan is retaliation from competitor. The aims of having marketing plan is outdo the competitor in the market and as such when competitor retaliates to any strategy adopted, the marketing plan may become ineffective (Walker et al 1995).
Despite the little challenges faced in implementation of marketing, It implementation is crucial for achievement of organization goals. It is thus crucial to develop and implement the marketing plan in very flexible manners to accommodate any arise contemporary issues
Conclusion This paper has discusses, examined and evaluated various marketing techniques, tool and process used in marketing services more specifically hospitality related services. In this paper, it has become so clear that marketing in services industry is crucial as it directly affect performances of an organization. And as such it is important that marketers in the hospitality industry take serious a very marketing tool at their disposal to achieve the required performances
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