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Marketing for Hospitality and Tourism

Marketing for Hospitality and Tourism.

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Marketing for Hospitality and Tourism

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  1. Marketing for Hospitality and Tourism

  2. “Marketing is so basic that it cannot be considered a separate function. It is the whole of business seen from the point of view of its final result, that is, from the customers point of view…Business success is not determined by the producer, but by the customer.”-Peter Drucker ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  3. Customer Orientation • The purpose of business is to create and maintain satisfied, profitable customers • Put the customer first and reward employees for serving customers well ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  4. Customer Orientation • Without customers assets have little value • Why does Michael Leven, CEO of US Franchise Systems, say its important for businesses to have a customer orientation approach? ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  5. What is Marketing? Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  6. Marketing Manager A person involved in marketing analysis, planning, implementation, and control activities ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  7. Core Marketing Concepts ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  8. Needs, Wants, and Demands • A human need is a state of felt deprivation • Wants are how people communicate their needs • When backed by buying power, wants become demands ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  9. Product • A product is anything that can be offered to satisfy a need or a want • What are some travel and tourism “products” that you can list? ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  10. Value, Satisfaction, and Quality • Customer value is the difference between the customer benefits from owning and/or using a product and the costs of obtaining the product • Customer satisfaction is perceived value delivered relative to a buyer’s expectations • Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy customer needs ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  11. Exchange, Transactions, and Relationship Marketing • Exchange is the act of obtaining a desired object from someone by offering something in return • A transaction is marketing’s unit of measurement and consists of a trade of values between two parties • Relationship marketing is building strong economic relationships between with social ties by following through on promises ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  12. Markets A market is a set of actual and potential buyers who might transact with a seller ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  13. Marketing Management Marketing management is the analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  14. Marketing Management Philosophies • Manufacturing • Product • Selling • Marketing • Societal Marketing ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  15. Manufacturing Concept • Consumers favor available and highly affordable products • Management should improve production and distribution systems • However, don’t forget the customer! ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  16. Product Concept • Consumers prefer existing products and product forms • Management’s job is to develop good versions of these products • Inward focused like the Manufacturing Concept, so don’t forget your customers! ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  17. Selling Concept • Consumers will not buy enough products unless the company undertakes large selling and promotion efforts • Aim is to maximize sales without worrying about customer satisfaction • Fails to establish a long-term relationship with customers ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  18. Market Concept • Achieving organizational goals depends on determining the needs and wants of target markets and delivering desired satisfaction better than competitors • Creates long term customer relationships • Frequently confused with “Selling Concept” ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  19. Marketing and Sales Concepts Contrasted ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  20. Societal Marketing Concept • Organization should determine the needs, wants, and interests of target markets and deliver the desired satisfaction more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well-being ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  21. Importance of Marketing • Corporate giants have increased marketing importance for entire industry • Predicted hotel consolidation into 5 or 6 chains will create intense competition • Growing competitive pressures increasing importance of the Marketing Director ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  22. The Future of Marketing • Rapid changes make yesterday’s techniques out-of-date • All company departments are becoming involved in satisfying customers • A focus on internal as well as external marketing ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  23. Best Practices • Four Seasons and putting customers first • Singapore Airlines and its top ranked product • Dubai – ridding itself of its reputation of being the “smuggling capital of the Arab world” • Hong Kong and the “world’s best airport” ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  24. Best Practices • Ritz Carlton delivering “memorable experiences” • McDonald’s QSC&V principle ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  25. Key Terms • Create and maintain customers • Demands • Exchange • Hospitality Industry ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  26. Key Terms • Human need • Human want • Manufacturing Concept • Market ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  27. Key Terms • Marketing • Marketing Concept • Marketing Management • Marketing Manger ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  28. Key Terms • Product • Product Concept • Quality • Relationship Marketing ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

  29. Key Terms • Selling Concept • Societal Marketing Concept • Transaction ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

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