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Transcript
Chapter 1 Introduction Marketing for Hospitality and Tourism ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens “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 ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens Chapter Objectives Chapter Objectives 1. Understand the relationships between the world’s hospitality and travel industry 3. Explain the relationships between customer value, satisfaction and quality 2. Define the role of marketing and discuss its core concepts 4. Discuss how marketing managers go about developing profitable customer relationships ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 INTERNATIONAL TOURIST CHANGE The Travel Industry 1950 RANK DESTINATION • The travel industry is the world’s largest industry • 1.6 billion international travelers by 2020 • Over $ 2 trillion in receipts by 2020 DESTINATION 1990 PIE DESTINATION 2006 PIE DESTINATION U.S.A. ITALY FRANCE FRANCE 2 CANADA CANADA U.S.A. SPAIN 3 ITALY 71% FRANCE 43% SPAIN 38% U.S.A. 4 FRANCE SPAIN ITALY CHINA 5 SWITZERLAND U.S.A. HUNGARY ITALY 6 IRELAND AUSTRIA AUSTRIA U.K. 7 AUSTRIA GERMANY U.K. MEXICO 8 SPAIN 9 GERMANY 17% SWITZERLAND 22% YUGOSLAVIA U.K. MEXICO 19% GERMANY GERMANY U.K. CANADA NORWAY HUNGARY SWITZERLAND CANADA 12 ARGENTINA CZECH REP. GREECE MALAYSIA 13 MEXICO 14 NETHERLAND BULGARIA MALAYSIA HONG-KONG 15 DENMARK ROMANIA CROATIA SIAM 9% 3% BELGIUM OTHERS 25% TOTAL ©2006 Pearson Education, Inc. 25,3 Million Upper Saddle River, NJ 07458 10% 165,8 Million PORTUGAL OTHERS PIE 33% 14% TURKEY 11 OTHERS Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens 1970 PIE 1 10 ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens AUSTRIA 10% 33% POLAND OTHERS 9,5% 43,8% Marketing for Hospitality and Tourism, 4th edition 441 Million 806 Million Kotler, Bowen, and Makens 1 The Four Ps 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 ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens Marketing Mix 4P • • • • PRODUCT PRICE PLACE PROMOTION 4C • • • • Customer Solution Customer Cost Convenience Communication ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens Needs, Wants, and Demands Marketing Mix Place (Distribution) Product Price Promotion ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens 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 ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing forand Hospitality Marketing for Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens Needs, Wants, and Demands What Motivates a Consumer to Take Action? What Motivates a Consumer to Take Action? • A human need is a state of felt deprivation • Wants are how people communicate their needs (=> I want a Coca-Cola) (physical needs for food, social needs for belonging and individual needs for self-expression. => I am thirsty.) ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens 2 Needs, Wants, and Demands Product What Will Satisfy Consumer’s Needs and Wants? • When backed by buying power, wants become demands (=> I have money to buy a Coke) • 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? ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Value, Satisfaction From Product to Services Products Marketing for Hospitality Tourism,and 4thTourism, edition 4th edition Marketing forand Hospitality Kotler, Kotler,Bowen, Bowen, and andMakens Makens How Do Consumers Choose Among Many Products and Services? Services self-service petrol station Personel computer photocopy machine Fast-Food Restaurant Restaurant Car repairement Airlines • 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 Hairdresser ©2006 Pearson ©2006 Pearson Education, Education, Inc. Inc. Upper UpperSaddle Saddle River, River, NJNJ 07458 07458 Marketing Marketing for Hospitality for Hospitality and and Tourism, Tourism, 4th edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens It can be seen that there are significant gaps among these two kind of customers according to their recommendation and re-purchase intentions. ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4th edition 17 Kotler, Bowen, and Makens 3 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 ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens Exchange, and Relationship Marketing • Exchange is the act of obtaining a desired object from someone by offering something in return • Relationship marketing is building strong economic relationships between with social ties by following through on promises ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens Markets 80 / 20 Rule (Pareto’s Principle) • A market is a set of actual and potential buyers who might transact with a seller. Guest ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 • These people share a need or want that can be satisfied through exchange relationships. Profit Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens 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 ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing forand Hospitality Marketing for Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens Marketing Management Philosophies • • • • • ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Manufacturing Product Selling Marketing Societal Marketing Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens 4 Product Concept Manufacturing Concept • Consumers favor available and highly affordable products • Management should improve production and distribution systems • However, don’t forget the customer! ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality Tourism,and 4thTourism, edition 4th edition Marketing forand Hospitality Kotler, Kotler,Bowen, Bowen, and andMakens Makens • 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! ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens Selling Concept Market 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 • 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” ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing forand Hospitality Marketing for Hospitality Tourism,and 4thTourism, edition 4th edition Kotler,Bowen, Bowen, and andMakens Makens Kotler, Marketing and Sales Concepts Contrasted ©2006 ©2006 Pearson Pearson Education, Education, Inc. Inc. Upper Upper Saddle Saddle River, River, NJ NJ 07458 07458 Marketing for Hospitality Tourism,and 4thTourism, edition 4th edition Marketing forand Hospitality Kotler, Kotler,Bowen, Bowen, and andMakens Makens Social 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 ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens 5 Social Marketing Concept New Marketing Challenges New Marketing Landscape & Information Technology Ethical Concerns Nonprofit Marketing Emerging Challenges Globalization Changing World Economy ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen, and andMakens Makens ©2006 Pearson ©2006 Pearson Education, Education, Inc. Inc. Upper UpperSaddle Saddle River, River, NJNJ 07458 07458 Marketing Marketing for Hospitality for Hospitality and and Tourism, Tourism, 4th edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens New Marketing Challenges Marketing’s Future • Marketing encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. • Marketing has become the job of everyone. ©2006 Pearson ©2006 Pearson Education, Education, Inc. Inc. Upper UpperSaddle Saddle River, River, NJNJ 07458 07458 Marketing Marketing for Hospitality for Hospitality and and Tourism, Tourism, 4th edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 6
