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Chapter 1
Introduction to hospitality marketing
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What is marketing?
Definitions
Hierarchy of customer value
Marketing concept
Management orientations
Environmental influences
 macro
 micro
Special characteristics of services marketing
Hospitality marketing mix
Many different definitions of marketing
business philosophy to create and retain
satisfied customers
 exchange process – short term transactional
marketing
 relationship marketing – development of
mutually beneficial long-term relationships
between suppliers and customers
 creating memorable experiences
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Figure 1.1 The hierarchy of customer value
Marketing is:
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a business philosophy with the customer at the centre of
a hospitality organization’s purpose
an exchange activity between hospitality organizations
and their customers
a management process that focuses on planning for the
future success of the organization
a set of marketing tools, which marketers use to
understand customers’ needs and wants and to develop
products, and services to satisfy or delight customers
The central purpose of marketing is to manage demand
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Product or service orientation
Operations or production orientation
Selling orientation
Marketing orientation
Societal marketing orientation
Figure 1.2 Marketing orientations
Figure 1.3 Macro- and micro-environmental
influences on hospitality organizations
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The macro-environment
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Political
Economic
Socio-cultural
Technological
Environmental
Interaction of PESTE factors
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Hospitality companies have limited
control over PESTE influences; but
major changes in even one PESTE
factor can significantly impact on the
business, either for better or worse
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PESTE factors are constantly changing
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Growth: occupancy and room rates increase in
response to growing demand
Peak: occupancy and room rates remain
strong, funds still available for investment;
growth tends to slow
Decline: occupancy begins to decrease
Trough: there is a large imbalance of supply
and demand during a recession; hospitality
businesses fail
Resurgence: there is a gradual resurgence, and
the cycle starts all over again
Figure 1.4 Typical hotel industry cycle
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Internal company factors
customers
 employees
 suppliers
 intermediaries
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External factors
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direct competitors
various publics
Hospitality companies have more
influence over the microenvironment than over the macroenvironment
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Seasonality
Intangibility
Perishability
Inseparability
Variability
Interdependence
Supply
Exceeding demand
High fixed costs
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The term marketing mix is used to
describe the tools that the marketer
uses to influence demand
The marketing mix is a core concept in
marketing
The hospitality marketing mix adopted
in this text is based on the eight
marketing activities:
Figure 1.5 The hospitality marketing mix
People who work in marketing work in:
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online and offline advertising, sales promotion and
publicity
sales, sales promotion, print and publicity, direct
mail, advertising
public relations and customer relations
marketing research
online sales and marketing roles such as guest user
interface (GUI) management, web product
development, website sales, search engine
optimization
database management, daily web operations and
content management
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