Summary Marketing for Hospitality and Tourism, by Kotler
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Course
Marketing
Institution
Breda University Of Applied Sciences
Book
Marketing for Hospitality and Tourism: Pearson International Edition
This extensive, but simply written summary of the book Marketing for Hospitality and Tourism (CH1 to 16) will lead you through the topics in a logical way and will help you to understand the topics being discussed. The summary is filled with illustrations that clarify the theories and models per ch...
Summary Marketing for hospitality and tourism
1 Introduction: marketing for hospitality and Tourism
1.1 Your passport to success
Today’s marketing isn’t simply a business function: It’s a philosophy, a way of thinking, and a way
of structuring your business and your mind. The role of marketing is to attract customers by setting
expectations. It should not fool customers by setting the expectations too high and should ensure that the
company’s image is never damaged. Marketing should motivate purchase and fulfill needs of customers.
Goal of marketing To provide real value to targeted customers, motivate purchase and fulfil
customer needs.
1.2 Customer orientation
The purpose of a business Create and maintain satisfied, profitable customers.
Hospitality focus VS profit focus Hospitality focus is when the business goal is to satisfy the
customer while the customer is paying a fair price for the product that leads to profits for the business.
Profit focus is only based on gaining profits and conduct negative reactions from customers
1.3 What is hospitality and Tourism Marketing?
Marketing mix A set of marketing tools that work together to produce satisfied customers Four P’s:
Product, Price, Place (Distribution) and Promotion. Marketing also includes research, information systems
and planning. The aim of the marketing mix is to know and understand customers so well that the product
or service fits them and sells it.
1.3.1 Marketing in the hospitality industry
Hospitality industry Businesses that offer one or more of the following services: accommodation,
prepared food and beverage and entertainment.
Hospitality Marketing The art and science of finding, retaining and growing profitable customers.
Promoting the products or services from the business does this.
1.3.1 Marketing in the tourism industry
Tourism Marketing (not the definition but characteristics) Successful marketing is dependent on the
entire travel industry, government agencies play important roles in travel industry marketing through
legislation aimed at enhancing the industry and through promotions of regions, and nations.
1.4 The marketing process:
1. Understand the marketplace and customers’ needs and wants
2. Design a customer-driven marketing strategy
3. Construct an integrated marketing program that delivers superior value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity
View illustration on next page
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,1.5 Marketing process
2.5.1 Step 1. Understanding the marketplace and customer needs
Five core customer and marketplace concepts:
1. Customer needs, wants and demands:
Understanding customer’s needs, wants and demands in detail provides important input for designing
marketing strategies.
(Human) Needs this is the basic physical need for example food, safety or belonging.
Human) Wants are how people communicate their needs. People have almost unlimited
wants, but limited resources, they choose products that produce the most satisfaction for their
money.
Demands When backed by buying power, wants become demands.
2. Marketing offerings (Tangible products, services and experiences):
A marketing offering a product that is some combination of tangible, services, information or
experiential products components. In the hospitality industry, the intangible products including
customer service and experiences are more important than the tangible products.
3. Customer value and satisfaction:
Customer value the difference between the benefits that the customer gains from owning
and/or using a product and the costs of obtaining the product. One of the biggest nonmonetary
costs for hospitality customers is time.
Customer expectations based on past buying experiences, the opinions of friends and
market information. If a company manages to meet or exceed the expectations, the result is
customer satisfaction.
4. Exchanges and relationships:
But first of all, the company should attract customers to arrange exchanges of resources The
act of obtaining a desired object from someone by offering something in return. A relationship is
not based on transactions only.
5. Markets
The collection of transactions creates a market A set of potential and actual buyers that share
a common interest.
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, 2.5.2 Step 2. Designing customer-driven marketing strategy
Marketing management The art and science of choosing target markets and building profitable
relationship with them.
A Marketing Manager’s aim Find, attract, keep and grow target customers by creating, delivering and
communicating superior customer value.
Market segmentation Finding target groups by dividing society in different groups and then choosing
a selection of them (target marketing).
Choosing Value propositions The set of benefits or values it promises to deliver to consumers to
satisfy their needs. Value proposition can differentiate a brand from another.
Marketing Management Orientations
5 different ways to strategically build profitable relationships with target consumers:
1. Production concept Holds that consumers will favour products that are available and highly
affordable, and therefore management should focus on production and distribution efficiency.
2. Product concept Consumer’s desire products that are qualitative therefore focus in on
product improvement.
3. Selling concept Consumers do not desire products unless high effort is put in promotion and
sales. The focus is on selling ‘harder and more’ instead of adapting to customer needs. (Doesn’t
establish a long-term relationship)
4. Marketing concept Achieving organizational goals depends on determining the needs and
wishes of target market and delivering the desired satisfaction more effectively and efficiently
than competitors. (Goes for long-term relationships when meeting the customers values and
satisfaction)
5. Marketing 3.0 Holds that instead of treating people simply as consumers, marketers approach
them as whole human beings with minds, hearts, and spirits.
Three major forces that shape the business of marketing 3.0:
Participation and collaboration; social media has enabled customers to participate and
collaborate with each other and companies
Globalization; the world is connected, understanding cultures is important
Creative society; it’s about weaving values into the corporate business.
2.5.3 Step 3. Construct an integrated marketing program
A marketing program builds customer relationships by transforming the chosen strategy into action.
It consists of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing
strategy. To deliver on its value proposition, the firm must first create a need-satisfying market offering (a
product). It must decide how much it will charge for the offer (the price). And how it will make the offer
available to target consumers (place). Finally it must communicate target customers about the offer and
persuade them of its merits (promotion).
2.5.4 Step 4. Building Costumer Relationships
Three ways to develop a strong customer relationship:
1. By adding financial benefits (discounts, point systems)
2. By adding social and financial benefits (bonding with the guests and personalizing the
product)
3. By adding structural ties, social and financial benefits (special lounges transport, etcetera).
Customers are chosen, because not every customer is profitable.
Customer relationship management (CRM) knowing customers individually and by carefully
organizing touch points this is any point that the customer encounters the product. This is used to
maximize loyalty of consumers.
Changing the nature of customer relationships
Instead of the former mass marketing, companies are building deeper, more direct and lasting
relationships with selective consumers. It’s important to know which customers you don't’ want as well as
the customers you do want. Today companies are seeking for a two-way customer relationship also seen
as co-creation between companies and consumers.
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