Tourism & Hospitality Marketing Tamer Zakaria, HR Consultant Instructor of Hospitality Management...

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Tourism & Hospitality Marketing Tamer Zakaria, HR Consultant Instructor of Hospitality Management Faculty Member of the American Hotel & Lodging Educational Institute

Transcript of Tourism & Hospitality Marketing Tamer Zakaria, HR Consultant Instructor of Hospitality Management...

Tourism & Hospitality

MarketingTamer Zakaria, HR Consultant

Instructor of Hospitality ManagementFaculty Member of the American Hotel &

Lodging Educational Institute

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Session Rules

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Late persons are not accepted

Be on time

Mobiles Off/Silent

Participate

Respect

6No beside talking

Agreements

7 Have fun

Course Description

• This course prepares the students to meet the marketing challenges facing today’s tourism and hospitality industry, and gives them the knowledge and skills they need to develop and contribute to a strategic marketing plan for tourism and hospitality businesses.

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Course Objectives

By the end of the course, you will be able to:• Understand the core concepts of marketing.• Define marketing and outline the steps in the

marketing process.• Identify four service characteristics that affect the

marketing of a hospitality or travel product.• Explain company-wide strategic planning.• Describe the microenvironment and

microenvironment.• Explain the concept of the marketing information

system.• Outline the marketing research process.

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• Define market segmentation and explain why it is a critical strategic choice.

• Describe the target marketing and positioning processes.

• Describe the term product, included the core, facilitating, supporting, and augmented product.

• Describe the three-step process involved in implementing an internal marketing program.

• Identify the purpose and components of an effective communications mix.

• Describe the various roles that pricing plays in the marketing mix.

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Continued 2

• Define and explain the function and logic of tourism and hospitality distribution networks.

• Identify the purpose and components of an effective communications mix.

• Describe strategies for creating and managing tourism and hospitality advertising effectively.

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Syllabus

Unit 1• Intro. to Marketing and the Core Concepts of Marketing.Unit 2• Service Characteristics of Tourism and Hospitality

Marketing.Unit 3• The Role of Marketing in Strategic Planning.Unit 4• The Marketing Environment.Unit 5• Marketing Information Systems and Marketing Research.

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Unit 6• Market Segmentation, Targeting, and Positioning.Unit 7• Tourism and Hospitality Marketing Mix.Unit 8• Managing Tourism and Hospitality Products &

Internal Marketing .Unit 9• Tourism and Hospitality Pricing Strategies.Unit 10• Distribution Channels.

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Continued 3

Unit 11• Communication Mix (Sales, Sales Promotion, and

Merchandising).Unit 12• Communication Mix (Advertising, Publicity, and

Public Relations).

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Unit 1

Introduction to Marketing&

the Core Concepts of Marketing

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Unit 1 Outline

• The Core Concepts of Marketing.• Marketing System.• What is Marketing?• Goals of Marketing.• What is Marketed?• Evolving Views of Marketing’s Role.• Marketing Management.• Marketing Management Orientations.• Tasks of Marketing Management.• Marketing Mix.

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Core Concepts of Marketing

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Needs, Wants, and Demands Needs, Wants, and Demands

Offerings and BrandsOfferings and Brands

Value and Satisfaction Value and Satisfaction

Segmentation, Target Markets, and Positioning Segmentation, Target Markets, and Positioning

Exchange and Transactions Exchange and Transactions

Relationships and Networks Relationships and Networks

Marketing Channels Marketing Channels

Supply Chain Supply Chain

Competition Competition

Marketing Environment Marketing Environment

Marketing System

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Industry(a collection

of sellers)

Market(a collection

of Buyers)Money

Goods/services

Information

• Communication

What Is Marketing?

Marketing Is• Managing profitable customer relationships.• A social and managerial process by which

individuals and organizations obtain what they need and want through creating and exchanging value with others.

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Goals of Marketing

Twofold Goal of Marketing Is:• To attract new customers by promising superior

value.• To keep and grow current customers by delivering

satisfaction.

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What is Marketed?

• Goods.• Services.• Experiences.• Events.• Persons.• Places.• Properties.• Organizations.• Information.• Ideas.

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Evolving Views of Marketing’s Role

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a. Marketing as anequal function

FinanceProduction

Marketing HumanResources

b. Marketing as a moreimportant function

Finance

HumanResources

Marketing

Production

Continued 1

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Marketing

Finan

ce

Hum

an

Resources

Production

c. Marketing as themajor function

Customer

Human

Resou

rces

FinanceProduction

Marketing

d. The customer as thecontrolling factor

Continued 2

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Finan

ceCustomer

Production

Hum

an

resources

e. The customer as the controllingfunction and marketing as the

integrative function

Marketing Management

• Marketing Management is the art and science of choosing target markets and building profitable relationships with them.

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Marketing Management Orientations

• The Production Concept.• The Product Concept.• The Selling Concept.• The Marketing Concept.• The Societal Marketing Concept.

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The Production Concept

• The Production Concept holds that consumers will favor products that are available and highly affordable.

• Therefore, management should focus on improving production and distribution efficiency.

• This concept is one of the oldest orientations that guides sellers.

• The production concept can lead to marketing myopia.

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The Product Concept

• The Product Concept holds that consumers will favor products that offer the most quality, performance, and innovative features.

• Under this concept, marketing strategy focus on making continuous product improvements.

• Product quality and improvement are important parts of most marketing strategies.

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The Selling Concept

• The Selling Concept holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

• Aggressive Selling, however, carries high risks, It focuses on creating sales transactions rather than on building long-term, profitable customer relationships.

• The aim often is to sell what the company makes rather than making what the market wants.

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The Marketing Concept

• The Marketing Concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

• Under the marketing concept, customer focus and value are the Paths to sales and profits.

• Instead of a product-centered “ MAKE & SELL” philosophy, the marketing concept is a customer-centered

“ SENSE & RESPOND “ philosophy.

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The Societal Marketing Concept

• The Societal Marketing Concept holds that marketing strategy should deliver value to customer in a way that maintains or improves both the customer’s and the society’s well-being.

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Tasks of Marketing Management

• Developing marketing strategies and plans.• Capturing marketing insights and performance.• Connecting with customers.• Building strong brands.• Shaping the market offerings.• Delivering and communicating value.• Creating successful long-term growth.

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Marketing Mix

• Product – What do you sell?

• Place – Where do you sell it?

• Price – What do you sell it for?

• Promotion – How do you spread the word?

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Four Ps / Four Cs

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Customer

Solution

MarketingMix

Product

Price

Customer

Cost

Promotion

Communication

Place

Convenience

Unit 2

Service Characteristics of Tourism & Hospitality

Marketing

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Unit 2 Outline

• What is Tourism & Hospitality Marketing?• The Service Culture.• The Characteristics of Service Marketing.• Management Strategies for Service Businesses.

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What is Tourism & Hospitality Marketing?

• Tourism & Hospitality Marketing is a total system designed to plan, price, promote, and make available to selected markets products and services in the form of benefits and experiences that create satisfied guests and achieve organizational objectives.

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The Service Culture

• The Service Culture focuses on serving and satisfying the customer.

• The Service Culture has to start with top management and flow down.

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Characteristics of Service Marketing

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Intangibility

Inseparability

Variability

Perishability

Services

Continued

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Intangibility

Services cannot be

seen, tasted, felt, heard, or

smelled before

purchase

Perishability

Services

cannot be stored for

later sale or use

Inseparability

Services cannot be separated from their providers (People)

Services

VariabilityQuality of services

depends on who provides

them and when, where,

and how

Management Strategies for Service Businesses

• Managing differentiation.• Managing service quality.• Resolving customer complaints.• Tangibilizing the product.• Managing employees as part of the product.• Managing perceived risk.• Managing capacity and demand.• Managing customer relationships.

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Unit 3

The Role of Marketing in Strategic Planning

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Unit 3 Outline

• The Marketing Process.• The Strategic Planning.• Steps in Strategic Planning.• Marketing Analysis.• Customer-Driven Marketing Strategy.

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The Marketing Process

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Steps in The Marketing Process

Design a customer-driven marketing strategy

Understand the marketplace and customer needs & wants

Construct an integrated marketing program that delivers superior valueBuild profitable relationships and create customer delightCapture value from customers to create profits & customer equity

Strategic Planning

• Strategic Planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

• Strategic Planning helps a company select and organize its business in a manner that keeps the company healthy despite unexpected upsets in any of its specific business or product lines.

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Strategic Planning

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Steps in Strategic Planning:

Setting company objectives and goals

Defining the company mission

Designing the portfolio

Planning marketing and other functional strategies

Marketing Analysis

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

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Customer-Driven Marketing Strategy

• Market Segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior who might require separate products or marketing programs.

• Market Targeting is evaluating each market segment’s attractiveness and selecting one or more segments to enter.

• Positioning is the place the product occupies, relative to competitors’ product, in consumers’ minds.

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Marketing Mix

4Ps 4CsProduct Customer solution

Price Customer cost

Place Convenience

Promotion Communication

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Competitors

Marketingintermediaries

PublicsSuppliers

Mar

ketin

g

info

rmat

ion

syst

em

Marketing

planningsystem

Marketing

organization

system Mar

ketin

g

orga

niza

tion

and

impl

emen

tatio

n

Product

Promotion

Place PriceTarget

customers

Demographic/economic

environment

Social/cultural

environment

Technical/physical

environment

Political/legal

environment

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Strategic- Planning, Implementation, and Control

Process

Measureresults

Evaluate results

Takecorrective

action

ImplementationPlanning

Corporateplanning

Divisionplanning

Businessplanning

Productplanning

Carry out the plan

Control

Unit 4

The Marketing Environment

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Unit 4 Outline

• The Company Microenvironment.• The Company Macroenvironment.

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The Marketing Environment

• The Microenvironment consists of actors and forces close to the company that can affect its ability to serve its customers.

• The Macroenvironment consists of the larger societal forces that affect the whole microenvironment.

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Continued

Microenvironment Macroenvironment

The company Competitive environment

Existing competitors Demographic environment

Suppliers Economic environment

Marketing intermediaries Natural environment

Marketing services agencies

Technological environment

Financial intermediaries Political environment

Customers Cultural environment

Publics Tourism & Hospitality Marketing Tamer Zakaria

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