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 viewBusiness 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

Course Overview
1. 2. 3. 4. Understand the hospitality and tourism marketing process Recognize developing hospitality and tourism marketing strategies Understand how to develop the hospitality and tourism marketing mix Comprehend managing hospitality and tourism marketing
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

Chapter Objectives
1.
2. 3.

Understand the relationships between the worlds hospitality and travel industry
Define the role of marketing and discuss its core concepts Explain the relationship between customer value satisfaction and quality

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
4. Discuss how marketing managers go about developing profitable customer relationships

5.

Understand how the marketing concept calls for a customer orientation

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

The Travel Industry

The travel industry is the worlds largest
One billion international travelers by 2010 Over $1.5 trillion in receipts by 2010 Explosive growth in the past 30 years (Dubai, Cancun, and other destinations)

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

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

Customer Orientation
Without customers assets have little value Why does Michael Leven, CEO of US Franchise Systems, say its important for businesses to have a customer orientation approach?
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

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 for Marketing Hospitality forand Hospitality Tourism, and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens

Marketing Manager
A person involved in marketing analysis, planning, implementation, and control activities

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

Core Marketing Concepts

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

Needs, Wants, and Demands

A human need is a state of felt deprivation

Wants are how people communicate their needs When backed by buying power, wants become demands
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

Product
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

Value, Satisfaction, and Quality

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 buyers expectations 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, Transactions, and Relationship Marketing

Exchange is the act of obtaining a desired object from someone by offering something in return A transaction is marketings unit of measurement and consists of a trade of values between two parties 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
A market is a set of actual and potential buyers who might transact with a seller

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 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

Marketing Management Philosophies

Manufacturing Product Selling Marketing Societal Marketing

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

Manufacturing Concept
Consumers favor available and highly affordable products Management should improve production and distribution systems However, dont forget the customer!

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

Product Concept
Consumers prefer existing products and product forms Managements job is to develop good versions of these products Inward focused like the Manufacturing Concept, so dont 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
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

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

Market Concept
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 2006 Pearson Pearson Education, Education, Inc. Inc. Upper Upper Saddle Saddle River, River, NJ NJ 07458 07458

Marketing for Hospitality Tourism, 4thTourism, edition 4th edition Marketing forand Hospitality and Kotler, Kotler,Bowen, Bowen,and andMakens Makens

Marketing and Sales Concepts Contrasted

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

Societal 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 consumers and societys 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

Importance of Marketing
Corporate giants have increased marketing importance for entire industry Predicted hotel consolidation into 5 or 6 chains will create intense competition Growing competitive pressures increasing importance of the Marketing Director

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

The Future of Marketing

Rapid changes make yesterdays techniques out-of-date All company departments are becoming involved in satisfying customers

A focus on internal as well as external marketing

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

Best Practices
Four Seasons and putting customers first Singapore Airlines and its top ranked product Dubai ridding itself of its reputation of being the smuggling capital of the Arab world Hong Kong and the worlds best airport
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

Best Practices
Accor and Lesprit Accor concept Ritz Carlton delivering memorable experiences McDonalds QSC&V principle DC Briefcase Incident

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

Key Terms
Create and maintain customers Demands Exchange Hospitality Industry
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

Key Terms
Human need Human want Manufacturing Concept Market
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

Key Terms
Marketing Marketing Concept Marketing Management

Marketing Manger
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

Key Terms
Product
Product Concept Quality Relationship Marketing
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

Key Terms
Selling Concept Societal Marketing Concept Transaction

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