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1PRINCIPLES OF TOURISM &
HOSPITALITY MARKETING
(HT103)
DEPARTMENT OF TOURISM & HOSPITALITY
2WO
RD
O
F M
OU
TH
M
AR
KE
TIN
G
CREATING BUZZ
3INTRODUCTION
CHAPTER 1
RTA : 3HR
27 DEC 11 & 3 JAN 12
41.1.1 Define marketing
1.1.2 Explain the functions of marketing
1.1.3 Explain marketing concepts:
a. Product concept
b. Selling concept
c. Modern marketing concept
d. Societal marketing concept
1.1.4 Discuss the characteristics of the
service industry
1.1.5 Identify the unique marketing
approaches required in tourism and
hospitality industry
5 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
viewBusiness success is not determined by the producer, but by the customer.
Peter Drucker
61.1.1 DEFINE MARKETING
A societal process by which individuals and groups obtain what
they need and want through creating, offering, and freely
exchanging products and services of value with others. -PhilipKotler-
A continuous, sequential process through which management in the
hospitality and tourism industry plans, researches, implements,
controls, and evaluates activities designed to satisfy both
customers needs and wants and their own organisationsobjectives. -Morrison-
71.1.2 THE FUNCTIONS OF MARKETING
Distribution
Financing
Marketing-Information Management
Pricing
Product/Service Management
Promotion
Selling
8Distribution involves
deciding where and to whom
products need to be sold in
order to reach the final
users.
Financing is getting the
money needed to pay for the
operation of a business.
1.1.2 THE FUNCTIONS OF MARKETING
9Marketing-Information Management
involves getting the necessary information to
make sound business decisions.
Pricing dictates how much to charge for
goods and services.
Product/Service Management is obtaining,
developing, maintaining, and improving a
product.
1.1.2 THE FUNCTIONS OF MARKETING
10
Promotion is
communicating with potential
customers to inform,
persuade, or remind them
about a company.
Selling is providing
customers with goods and
services they want.
1.1.2 THE FUNCTIONS OF MARKETING
11
1.1.3 MARKETING CONCEPTS
a. Product Concept
Consumer prefer existing products and product forms Managements job is to develop good versions of these products
12
1.1.3 MARKETING CONCEPTS
b. Selling Concept
Consumers will not buy enough products unless thecompany undertakes large selling and promotion
efforts
Aim is to maximize sales without worrying aboutcustomer satisfaction
Fails to establish a long-term relationship withcustomers
13
1.1.3 MARKETING CONCEPTS
c. Modern Marketing Concept
Achieving organizational goals depends ondetermining the needs and wants of target markets
and delivering desired satisfaction better than
competitors
Creates long term customer relationships Frequently confused with Selling Concept
14
Marketing And Sales Concepts Contrasted
SELLING CONCEPT
MARKETING CONCEPT
Starting
Point Focus Means Ends
Factory Existing Selling & Profit through
products Promoting sales volume
Market Customer Integrated Profit through
needs marketing customer
satisfaction
15
1.1.3 MARKETING CONCEPTS
d. Societal Marketing Concept
Organization should determine the needs, wants,and interests of target markets and deliver the
desired satisfaction more effectively than
competitors in a way that maintains or improves
the consumers and societys well-being
16
100% INCREASE IN AD SPENDING JUST TO ADD 1% - 2% IN SALES
17
ONLY 14% TRUST ADS
18
1.1.4 CHARACTERISTICS OF THE SERVICE
INDUSTRY
SERVICES
19
Intangibility
Services can not be seen, tasted, felt, heard, or smelled.
Tangible evidences reduce uncertainty
High risk associated with services.
Lack of tangibility after the experience
Providers should create memorable guest experiences
Tangibles provide signals as to the quality of the intangible
service.
Exterior and Interior design
Uniforms of employees
Someone who purchase a service may go away empty-handed, but do not go away empty-headed - Robert Lewis
20
Inseparability
Provider and receiver are part of the product
Other receivers become part of service
The provider becomes part of service
The provider and the receiver interact with the
service delivery system.
Receivers and providers must understand the
service delivery system.
21
Variability Services are highly variable
Services are produced and consumed simultaneously.
Service consistency depends on the service providers skill.
Fluctuating demand makes it difficult to deliver consistent quality.
Lack of consistency a major source of customer disappointment.
Guest expectations are different.
Train contact and non-contact employee
Quality can not be controlled; must be produced
22
PerishabilityLack of ability to inventory
Lack of ability to inventory services can not be stored
Capacity and demand must be successfully managed
If services are to maximize revenue, they must manage
capacity and demand.
Change customer use pattern (Hourly, daily, seasonally)
Cross-train employees
Involve customer in the service delivery system
END OF THE SHOW
THANK YOU
23