ch01 KOTLER[2]

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Chapter 1Introduction

Marketing for

Hospitality and Tourism


“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



Course Overview1. Understand the hospitality and tourism

marketing process

2. Recognize developing hospitality and tourism marketing strategies

3. Understand how to develop the hospitality and tourism marketing mix

4. Comprehend managing hospitality and tourism marketing



Chapter Objectives

1. Understand the relationships between the world’s hospitality and travel industry

2. Define the role of marketing and discuss its core concepts

3. Explain the relationship between customer value satisfaction and quality



Chapter Objectives

4. Discuss how marketing managers go about developing profitable customer relationships

5. Understand how the marketing concept calls for a customer orientation



The Travel Industry

• The travel industry is the world’s largest

• One billion international travelers by 2010

• Over $1.5 trillion in receipts by 2010

• Explosive growth in the past 30 years (Dubai, Cancun, and other destinations)



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



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?



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



Marketing Manager

A person involved in marketing analysis, planning, implementation,

and control activities



Core Marketing Concepts



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



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?



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



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



Markets

A market is a set of actual and potential buyers who might

transact with a seller



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



Marketing Management Philosophies

• Manufacturing• Product• Selling• Marketing• Societal Marketing



Manufacturing Concept

• Consumers favor available and highly affordable products

• Management should improve production and distribution systems

• However, don’t forget the customer!



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!



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



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”



Marketing and Sales Concepts Contrasted



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



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



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



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”



Best Practices

• Accor and L’esprit Accor concept• Ritz Carlton delivering “memorable

experiences”• McDonald’s QSC&V principle• “DC Briefcase Incident”



Key Terms

• Create and maintain customers

• Demands

• Exchange

• Hospitality Industry



Key Terms

• Human need

• Human want

• Manufacturing Concept

• Market



Key Terms

• Marketing

• Marketing Concept

• Marketing Management

• Marketing Manger



Key Terms

• Product

• Product Concept

• Quality

• Relationship Marketing



Key Terms

• Selling Concept

• Societal Marketing Concept

• Transaction


ch01 KOTLER[2]

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