Unit 8 Marketing in Hospitality

Introduction

Aim

This Unit 8 Marketing in Hospitality enables learners to understand the concepts of marketing, the role of the marketing mix, the marketing cycle, and gain skills in using the promotional mix.

Unit abstract

This unit introduces learners to the key concepts and functions of marketing as they apply to services industries, including hospitality, travel, tourism, sports, leisure and recreation. The unit will give learners knowledge and understanding of the key factors affecting marketing environments, and investigate the role of marketing in different sectors of relevant service industries. The unit focuses initially on the concepts of marketing, moving on to the functional and operational aspects of marketing as the unit progresses. Learners will investigate marketing in the context of one of today’s competitive service industries.

Learning outcomes

1 Understand the concepts of marketing in a services industry context

• Core concepts: definition of marketing, customer needs, wants and demands, product and services markets, value, customer satisfaction/retention, quality, cost/benefits, efficiency/effectiveness, profitability, the growth of consumerism, strategic/tactical marketing, reasons for growth, marketing as a business philosophy, relationship marketing, changing emphasis of marketing
• Marketing environment: micro environment of the company; stakeholders eg suppliers, intermediaries, owners, financiers, customers, competitors, local residents, pressure groups; macro environment demographics eg economy, society, ecology, technology, politics, legal, culture; strengths, weaknesses, opportunities and threats (SWOT) analysis; political, economic, social, technical (PEST) analysis; Porter’s competitive forces
• Consumer markets:central role of the customer, customer culture, models and types of behaviour, consumer orientation (internal and external), competitor orientation, decision process, value chain, value and satisfaction, long-term relationships
• Market segmentation: principles of segmentation, targeting and positioning, segmentation bases eg geographic, demographic, behavioural, lifecycle stage, income, gender Ethics and social responsibility: sustainability, social audit, public relations, legal and regulatory considerations, public policy, third world issues, trends eg green issues, environmentalism, pressure groups
• Services industry context: contexts eg hospitality, travel, tourism, sports, leisure, recreational industries, public, private, voluntary (not-for-profit) sectors

2 Understand the role of the marketing mix

• Marketing mix elements: nature and characteristics of products and/or services, service quality, people, partnerships, programming, packaging
• Products/services: characteristics, features/benefits, product strategy/mix, lifecycle, development processes, test-marketing (simulated and controlled), concept development and testing, unique selling points (USPs), branding
• Place: distribution channels, customer convenience and availability, physical distribution and logistics, niche marketing, vertical/horizontal integration, impact of technology, franchising, ethical issues
• Pricing: strategies eg skimming, penetration, product mix, price adjustments, competitor analysis, policy eg cost-plus, break-even, value-based, competition-based, variable, price setting considerations; factors affecting pricing decisions eg demand elasticity, competition, ethics

3 Be able to use the promotional mix

• Promotional mix: role eg public relations, sponsorship, personal selling, advertising and sales promotions, branding, effective communications, communication channels, online marketing, promotional-mix decisions, budgetary considerations, monitoring and evaluating promotions
• Advertising: objectives, methods, reach, frequency, impact, creating copy, costs and budgeting
• Campaign: format, objectives, target market, evaluation
• Sales promotion: aims and objectives, reasons for growth, methods, tools, limitations, branding and merchandising, evaluation

4 Understand the marketing cycle in a services industry environment

• Research and information:relevance, new and existing products, services and markets; market information systems, defining the market, measuring current demand, the marketing research process, forecasting and demand measurement, positioning of products and services, quality as an influence on customer perceptions
• Data collection and analysis: needs, wants, location, focus group, primary research eg questionnaires, surveys, interviews, locusassignments. secondary research eg internal records, statistics, published information, government publications, industry journals, qualitative/quantitative data, analysis, evaluation
• Communications: range of media eg television, newspapers, magazines, radio, billboards, and posters; suitability for specific products, services and markets
• Marketing plan: implementation, timescales, costs, evaluation eg objectives, revisions, and outcomes

Resources

Essential requirements

Learners must share a common understanding and definition of marketing and know the relevant technical terminology.

Case studies will enable learners to make comparisons of marketing opportunities and practices in different types of business, and this will support learning outcomes 2, 3 and 4. Study of moral and ethical issues and examination of different marketing trends in the relevant industry will encourage debate and the exchange of ideas. This will develop learners’ understanding of marketing decision making