Lesson-1-Tourism-and-Hospitality-Marketing (1).pptx

Tourism-and-Hospitality-Marketing

1. TOURISM AND HOSPITALITY MARKETING Tourmar First Semester / AY 2024-2025

2. What is Marketing? Marketing is not selling or advertising. Marketing is the management of creating and exchanging products and value in order to satisfy the needs and wants of the customers . Marketing involves building profitable, long-term relationships with customers . The goal of marketing is to satisfy customers at a profit.

3. What is Marketing? If the marketer does a good job of understanding consumer needs, develops products that provide superior value, and prices, distributes, and promotes them effectively , these products will SELL EASILY . Selling and advertising are only part of a larger `marketing mix` - a set of marketing tools that work together to affect the marketplace.

4. “ Creating customer value and satisfaction are at the heart of hospitality and travel industry marketing”

5. Group Activity (GT 1: 5 points) Love the Philippines Enchanted Kingdom Sofitel Hotel and Resorts Shangrila Hotels and Resorts Disney Cruise Line Qatar Airways Jollibee

6. The Marketing Process Managers must realize that they cannot satisfy all customers; they have to choose their customers carefully.

7. The Marketing Process Companies work to: (1) understand consumers, (2) construct marketing programs to create superior value for the customer, (3) build profitable relationships and create customer delight, and in turn (4) capture value from customers in the forms of sales, profits and long-term customer equity.

8. Core Marketing Concepts

9. Needs, Wants, and Demands Consumers have needs, wants, and demands to be satisfied. Consumers view products as “bundles of benefits” and choose products that give them the best value for their money and most satisfaction. Fairfield Inn → comfortable bed, clean room, low price JW Marriott Hotels & Resorts → fine dining, luxury, comfort and productivity

10. Understanding needs and wants What are people looking for when they visit different destinations? Why would a tourist choose to holiday in Florida rather than Spain – what variables are at work apart from cost? Why would he choose to travel with British Airways, but not with Lufthansa? Why would he buy an independent inclusive tour, but not a group tour?

11. Need Satisfaction Theory All consumer purchases, including choice of travel destination, are made to satisfy a need of the consumer. Do people travel just to travel? People do not travel just to travel. Travel fills some need in each consumer. Travelers’ needs differ.

12. Do we really need ? Often people talk about what they need, say a new television set, a new dress, or a holiday. But do they really need these things? Or are they just expressing a desire for more? Due to today’s increased material consumption patterns , it is becoming difficult to distinguish wants from needs.

13. Maslow’s hierarchy of needs Self-actualization (e.g. self-fulfillment, etc.) Ego needs (e.g. self-respect, status, success, etc.) Social needs (e.g. affection, love, friendship, etc.) Safety needs (e.g. security, protection, etc.) Physiological needs (e.g. food, water, air, etc.)

14. The Main Motives for Travel and Tourism Motivation for travel and tourism can be categorized as; Physical motivations Cultural motivations Personal motivations Prestige and Status motivations (Mathieson and Wall, 1993)

15. Physical motivations refreshment of body and mind (rest and relaxation) – beach holidays, lakes and mountains, etc.; for health purposes (i.e. either medically prescribed or undertaken voluntarily) – spas, etc.; for participation in sports – skiing, canoeing, safari parks, pony trekking, etc.; pleasure , - fun, excitement, romance and entertainment, to shop.

16. Cultural motivations curiosity about foreign countries, people and places; interests in art, music, architecture, folklore – music festivals, theatre visits, etc.; interest in historical places (remains, monuments, churches); experiencing specific international and national events - Olympic Games, Oktoberfest, etc.

17. Personal motivations visiting relatives and friends; meeting new people and seeking new friendships; seeking new and different experiences in different environments – sailing etc.; escaping from one’s own permanent social environment (i.e. desire for a change) personal excitement of traveling; visiting places and people for spiritual reasons (i.e. pilgrimages) traveling for travel’s sake

18. Prestige and Status motivations pursuit of hobbies – craft or painting holidays etc.; continuation of education or learning - study tours etc.; seeking of business contacts and professional goals – fairs, etc.; conference and meetings ; ego enhancement and sensual indulgence ; fashion

19. Core Marketing Concepts

20. Products A product is anything that can satisfy a need or want. Producers must see themselves as providing a solution to a need (benefits) rather than just selling a product. Research is a must to understand the needs and wants of the customers to produce the right product. E.g. At Disney World, each manager spends a day in the park in a Mickey costume or work on the front line - taking tickets, selling pop-corn.

21. Disney World, Orlando

22. 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 “Customers do not judge product values objectively, on the contrary they act on perceived value.” © 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

23. Value, Satisfaction, and Quality Customer satisfaction is perceived value delivered relative to a buyer’s expectations the difference between the product’s performance and buyer’s expectations. “Smart companies aim to satisfy customers by promising only what they can give, then giving more than they promise.” J2B

24. Value, Satisfaction, and Quality Benefits of satisfying customers : Customer satisfaction create an emotional tie (customer loyalty) to a product. Highly satisfied customers make (1) repeat purchases, (2) are less price sensitive (3) talk positively to their friends.

25. Value, Satisfaction, and Quality Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy customer needs simply quality can be defined as “freedom from defects”.

26. Value, Satisfaction, and Quality Quality starts with customer needs and ends with customer satisfaction . The concept of “total quality management” is in a away “total customer satisfaction”. Improving the quality of a product that customers want increases customer satisfaction, therefore increases profit.

27. Exchange, Transactions, and Relationship Marketing Exchange is the act of obtaining a desired object from someone by offering something in return 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.

28. Markets A market is the set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchanges and relationships.

29. Markets Creating these relationships takes work. Sellers must search for buyers, identify their needs, design right marketing offers ( products) , set right prices , promote and deliver (place) the products in the right ways (4Ps of Marketing). These are the core marketing activities.

30. Marketing Management It is the art and science of choosing target markets and building profitable relationships with them . The marketing manager’s aim is to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value .

31. Marketing Management Marketing management is in a way, demand (customer) management. A company’s demand comes from two groups: new customers and repeat customers.

32. Marketing Management Marketing management deals with finding ways (1) to attract new customers and create transactions with them (2) to retain current customers and build lasting customer relationships .

33. Marketing Management Some people think of marketing management as finding as many customers as possible and increasing demand. But marketing managers should know that they cannot serve all customers in every way. By trying to serve all customers, they may not serve any customers well. Instead, the company wants to select only customers that it can serve well and profitably.

34. Marketing Management Within the broad categories of main and additional holidays, typical subsidiary purposes would include sea and beach holidays (with and without children), cultural interests, walking and other activity interests and an interest in exotic destinations.

35. Choosing a Value Proposition The company must also decide how it will serve targeted customers – how it will differentiate and position itself in the marketplace. A company’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs. E.g. Northwest Airlines punctual, friendly, fun flight; Singapore Airlines luxurious, prestigious, special flight

36. clear value proposition that’s easy for guests to absorb It can be read and understood within 10-20 seconds It explains what makes you different or unique It avoids vague filler descriptions like “the best rated” or “satisfaction guaranteed” It conveys the benefits of choosing your hotel. Your guest should know exactly how he gets more value when staying with you

37. Choosing a Value Proposition Such value propositions differentiate one brand from another. They answer the customer’s question “Why should I buy your brand rather than a competitor’s?” Companies must design strong value propositions that give them the greatest advantage in their target markets.

38. Marketing Management Philosophies

39. The Production Concept It holds that consumers will favor products that are available and highly affordable. Here, the management focus on improving production and distribution. This oldest philosophy is useful in two types of situation. (1) when the demand for a product exceeds the supply (2) when the product’s cost is too high and improved productivity is needed to bring it down.

40. The Product Concept It holds that consumers favor products that offer the most quality, performance and innovative features. The organization should focus on making continuous product improvement. Consumers prefer existing products and product forms

41. 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 E.g. Disney, McDonald’s, Ritz-Carlton Hotels… are customer-driven companies.

42. 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 Most companies use the selling concept when they have overcapacity

43. 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

44. Societal Marketing Concept E.g. Critics against fast-food restaurants that food has a lot of fat and salt harmful for health, a lot of packaging increasing waste and pollution. Here, the companies try to balance company profits (2) consumer wants (3) society’s interests.

45. 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

46. 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 The Future of Marketing