This is one of the reasons why mass marketing is consider as much cheaper comparing to market segmentation. In addition to the print medium and televisions, Internet should not be neglected and online marketing should be done in an effective manner in order to attract more target audience. In his research Bell (1993) suggest that hotel companies should concentrate more on corporate travel-management department rather than individual travelers since they are the key to corporate clients. By: Joe David | Tags: Marketing in Tourism & Hospitality. According to Morrison (1996) hospitality services marketing in contrast to other sectors has several features that are unique for this industry. Local area coverage is the terminology used to refer a stronghold in the local market. Likewise, offering customers loyalty cards may become very useful as well. Market segmentation is defined as dividing the overall market in smaller groups that consist of customers who have some similarities in their choices. In this lesson, you'll learn more about service inseparability in marketing. If organizations are aiming to achieve desired results in a fixed time span then marketing strategies should be effective and must possess a blend of needs of the customers (Ayala, Staros and West, 1996). In this article I’m going to focus on the last, but certainly not least, point – advertising and marketing; highlighting key areas that managers and owners in the hospitality sector need to be aware of and more importantly take advantage of. Marketing plays an important role in helping organisations succeed in such an industry. (2001) ads another limitation related with segmentation . 1994). Customers can also be analysed according to the purpose of their journey (eg. Promotion mix maintains its focus on long term communication while sales promotion can be defined as particular strategy that is used when an organization is aiming to generate instant traffic or profit (Morrison, 2002 a). Transportation is the one department that has been going hand in hand for ages together with hotels. Political factors like tax policies, patents, stability of government should be considered as operating according to the laws and regulation may be a tough task for the organization. Technology has played an important role in all industries and the hotel industry is no exception. Top Hotel Management College in… restaurants, hotels, and food service providers make use of marketing strategies and techniques to promote their products and services to customers. Connelly states in his book “know your customer” that “if you don’t succeed in gaining the local crowd, you won’t be getting any client at all even from any other planet. Kotler et al.. 2006 believes that the success of hospital marketing is related with the entire travel and leisure industry since regularly partnership packages between the wholesaler are eliminating the competitors. He claims that a high degree of differentiation of the basic product leads to a proliferation of models and variations and finally to one product talking market share away from another product of the same enterprise. The marketing team at Hotel Sheraton can review the case study of Starbucks which faced an issue in establishing a chain in China, as Chinese people did not welcome the company. VAT Registration No: 842417633. For this reason many academics and professionals suggest to put a strong emphasis on loyalty programs since in the future it will be a necessary requirement for the continued existence of the hotel businesses (Kandampully et al. Introduction to marketing research. , 1998).Many companies ,especially in hospitality industry have invested millions in customer retention programs to capture the benefits of loyal customers. When it comes to promotional mix, the entire pool of hotel owners have adopted different proven as well as innovative ideas in accordance to their changing strategies. For customers satisfaction with the service and product had been indentify as the main factor for loyalty and often also with firms profitability. After considering the customer’s needs the next focus is on enhancing the revenue of an organization (Ayala, Staros and West, 1996). For instance, the Hotel Sheraton has come up with the fusion plan for those who always try to experiment clubbing of different styles of room and food. Looking for a flexible role? Sales promotion is done after a loyal relationship has been established by the organization with their target customers. On Holiday. Company Registration No: 4964706. The above stated factors will help hospitality organizations in framing their marketing strategy for their target audience and will assist in entering into a new market. Fogacs (2003) believes that the value proposition of branding can be simplified to a claim that it is more beneficial to belong to a brand than not. It will be back shortly! The third and the last one is aiming for small and specific segments using concentrated and niche marketing. The aim of marketing for Hotel Sheraton is to anticipate, meet and satisfy the needs of customers and therefore it is essential for hospitality marketers to identify their target customers and their buying nature. Where else Doswell (1979) as cited in Shepherd (1992) believes that hospitality industry is simply and mainly composed of four segments which are: lower, middle , upper/ middle and upper. The Hilton new strategy to make it easier for their customers to achieve an elite status a good example of revamping loyalty program. Shipping and logistics of services through top notch technology has resulted in the addition of superior customer satisfaction in a short span of time which builds up the reputation of the hotel. ( Secord, 1996). However, marketers must not stop in creating awareness only. Hospitality marketing is about applying marketing strategies and techniques in hospitality industry. Mode of delivering the services and products to the client also matters more to the overall growth of the hotel. Sheraton hotel has opened up a new restaurant. The main theme emerges from this definition is that marketing is about understanding and addressing customers’ needs and desires which not only benefits customers but also the society at large. It takes a look at how organisations in the hospitality industry e.g. Hotel Sheraton operates in a micro and macro environment that keeps in changing on a constant rate. Hospitality marketers need to ensure that potential customers are aware of their existence and offers and existing customers are satisfied with the products and services to a reasonable extent (at least). In order to use the tool of marketing in an efficient manner the profitability of an organization and needs of customers should be integrated. So, developing right and quality products is absolutely important. Another good example will be the Holiday Inn which resorted to the online campaigns and the incomes were satisfactory (Walker, 2009). Digital Presence & Social Media . Coordinating with suppliers, arranging finance, analysing competitors, attracting customers are some micro environmental factors and synchronizing these factors with the organization helps in smooth execution of business operations of an organization. Say for example Wal-Mart, which shifts the stock it, has in surplus to other branches where demand is more. Roberts (1993) states that there are three major market segment groups in hospitality industry . Copyright ©2017 - 2025. In the last few years hospitality and tourism has become a very powerful sector not based not only on the amount of people working for this industry (Ketler et al. In any business, marketing strategy plays a key role in building a brand, alluring new customers and maintaining loyalty. Hospitality marketing – definition and importance, Distribution channels and supply chain of Tesco. The first one is an undifferentiated or mass marketing in which the corporation marketing aims at the overall market.