Marketing - MARKETING MIX in hospitality Industry

Marketing Mix

1. MARKETING MIX Module 3 1

2. Marketing Mix Introduced by Neil H. Borden - 12 Elements In 1960, E. Jerome McCarthy grouped these elements and suggested the four Ps of marketing 2

3. Marketing Mix Marketing mix is a combination of elements, tools or efforts used to market effectively to a target market. 3

4. Marketing Mix Depends on Marketing environment of the organization Marketing objectives Resources position of the firm Marketing organization structure and information system 4

5. Marketing Mix 4 Ps of Marketing Product Price Place Promotion 5

6. PRODUCT Product refers to a good, a service or a unique combination of goods and services offered by a firm to satisfy the needs and wants of consumers. 6

7. 7 PRODUCT The product includes both the tangible and intangible elements. Product decisions involve product attributes such as quality, brand name, packaging, product logos, trademarks, the breadth and mix of the product line The products can be physical objects, services, places, organisations etc.

8. PRODUCT LEVEL Hospitality managers need to think about four levels of a product. 1 Core Products Answers the question of what the buyer is really buying. 2 Facilitating Products Service or goods that must be present for the guest to use the core products 3 Supporting Products Extra products offered to add value to the core product and to help differentiate it from the competition. 8 4 Augmented Products Additional consumer services and benefits built around the core products.

9. PRICE Price refers to the monetary value of the product. Price is the value placed by a firm on its products and services. 9

10. 10 PRICE Sum of the values consumers exchange for the benefits of having or using the product or service. What the buyer pays to the seller, including discounts, allowances, credit terms, payment period etc. In service industry, the term price names- interest, rent, salary, fees etc.

11. PRICING STRATEGY Price mix influence the positioning of the product among competition as well as the customer’s perception of the product. Penetration Pricing Low price kept to capture market share Skimming Pricing High price initially then lowering of price Competition Pricing Pricing at par of competition 11

12. 12 Factors to Consider for Setting Price Internal Factors External Factors Marketing Objective Marketing Mix Strategy Cost Cost Subsidization Organisation Considerations Nature of the Market and Demand Consumer perception of Price and value Analysing the price – demand relationship Price elasticity of Demand Factors affecting Price _Demand Relations Competitors price and offers Other environmental factors

13. PLACE Place refers to the distribution of the products to the consumers. 13

14. 14 PLACE Movement of the product from the sellers to the buyers Storage at different points to make product available at convenient time and locations to the buyers. Where and how the product will be available for the customers for the actual sale

15. PLACE MIX STRATEGY 15 Intensive Distribution Cover as much market as you can Selective Distribution For premium products. Open limited outlets Franchise system Small companies distribute on your behalf. Exclusive Distribution For more exclusive products. Very less outlets

16. PROMOTION Promotion involves all the communication that takes place between travel organization and the customer. 16

17. 17 Promotion Mix Advertising Branding Personal Selling Sales Promotion Public Relations Direct Marketing Social Media Outreach

18. MARKETING MIX FOR SERVICES

19. What Makes Services Different?

20. Characteristics of Services

21. Intangibility

22. Inseparability

23. Heterogeneity

24. Perishability

25. THANK YOU! 25