1PRINCIPLES OF TOURISM &

HOSPITALITY MARKETING

(HT103)

DEPARTMENT OF TOURISM & HOSPITALITY

2WO

RD

O

F M

OU

TH

M

AR

KE

TIN

G

CREATING BUZZ

3INTRODUCTION

CHAPTER 1

RTA : 3HR

27 DEC 11 & 3 JAN 12

41.1.1 Define marketing

1.1.2 Explain the functions of marketing

1.1.3 Explain marketing concepts:

a. Product concept

b. Selling concept

c. Modern marketing concept

d. Societal marketing concept

1.1.4 Discuss the characteristics of the

service industry

1.1.5 Identify the unique marketing

approaches required in tourism and

hospitality industry

5 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

viewBusiness success is not determined by the producer, but by the customer.

Peter Drucker

61.1.1 DEFINE MARKETING

A societal process by which individuals and groups obtain what

they need and want through creating, offering, and freely

exchanging products and services of value with others. -PhilipKotler-

A continuous, sequential process through which management in the

hospitality and tourism industry plans, researches, implements,

controls, and evaluates activities designed to satisfy both

customers needs and wants and their own organisationsobjectives. -Morrison-

71.1.2 THE FUNCTIONS OF MARKETING

Distribution

Financing

Marketing-Information Management

Pricing

Product/Service Management

Promotion

Selling

8Distribution involves

deciding where and to whom

products need to be sold in

order to reach the final

users.

Financing is getting the

money needed to pay for the

operation of a business.

1.1.2 THE FUNCTIONS OF MARKETING

9Marketing-Information Management

involves getting the necessary information to

make sound business decisions.

Pricing dictates how much to charge for

goods and services.

Product/Service Management is obtaining,

developing, maintaining, and improving a

product.

1.1.2 THE FUNCTIONS OF MARKETING

10

Promotion is

communicating with potential

customers to inform,

persuade, or remind them

about a company.

Selling is providing

customers with goods and

services they want.

1.1.2 THE FUNCTIONS OF MARKETING

11

1.1.3 MARKETING CONCEPTS

a. Product Concept

Consumer prefer existing products and product forms Managements job is to develop good versions of these products

12

1.1.3 MARKETING CONCEPTS

b. Selling Concept

Consumers will not buy enough products unless thecompany undertakes large selling and promotion

efforts

Aim is to maximize sales without worrying aboutcustomer satisfaction

Fails to establish a long-term relationship withcustomers

13

1.1.3 MARKETING CONCEPTS

c. Modern Marketing Concept

Achieving organizational goals depends ondetermining the needs and wants of target markets

and delivering desired satisfaction better than

competitors

Creates long term customer relationships Frequently confused with Selling Concept

14

Marketing And Sales Concepts Contrasted

SELLING CONCEPT

MARKETING CONCEPT

Starting

Point Focus Means Ends

Factory Existing Selling & Profit through

products Promoting sales volume

Market Customer Integrated Profit through

needs marketing customer

satisfaction

15

1.1.3 MARKETING CONCEPTS

d. Societal Marketing Concept

Organization should determine the needs, wants,and interests of target markets and deliver the

desired satisfaction more effectively than

competitors in a way that maintains or improves

the consumers and societys well-being

16

100% INCREASE IN AD SPENDING JUST TO ADD 1% - 2% IN SALES

17

ONLY 14% TRUST ADS

18

1.1.4 CHARACTERISTICS OF THE SERVICE

INDUSTRY

SERVICES

19

Intangibility

Services can not be seen, tasted, felt, heard, or smelled.

Tangible evidences reduce uncertainty

High risk associated with services.

Lack of tangibility after the experience

Providers should create memorable guest experiences

Tangibles provide signals as to the quality of the intangible

service.

Exterior and Interior design

Uniforms of employees

Someone who purchase a service may go away empty-handed, but do not go away empty-headed - Robert Lewis

20

Inseparability

Provider and receiver are part of the product

Other receivers become part of service

The provider becomes part of service

The provider and the receiver interact with the

service delivery system.

Receivers and providers must understand the

service delivery system.

21

Variability Services are highly variable

Services are produced and consumed simultaneously.

Service consistency depends on the service providers skill.

Fluctuating demand makes it difficult to deliver consistent quality.

Lack of consistency a major source of customer disappointment.

Guest expectations are different.

Train contact and non-contact employee

Quality can not be controlled; must be produced

22

PerishabilityLack of ability to inventory

Lack of ability to inventory services can not be stored

Capacity and demand must be successfully managed

If services are to maximize revenue, they must manage

capacity and demand.

Change customer use pattern (Hourly, daily, seasonally)

Cross-train employees

Involve customer in the service delivery system

END OF THE SHOW

THANK YOU

23