HOSPITALITY MARKETING AND

TOURISM
Summer 2017-2018
FOCUS ON SERVICE ORIENTED
BUSINESS
 Chapter 1:
Introduction to
Hospitality
“ know thy
consumer...consumer is king”
Previewing the concepts:
1. This chapter unfolds the
significance of marketing in the
field of hosptality.
2. It answers the questions why
marketing is very useful in the field
of hotel and Restaurant
management.
3. How marketing strategyis utilized
of so many servic establishment in
the food industry.l
 Introduction:
• Food is a necessity for survival ( basic needs)
• Major part of consumer’s weekly
expenditure/budget.
• Biggest slice of consumptions of every households
• Restaurants is one of the biggest and widest venue
for food consumption. Where people gather
together to bond, spent quality time, to talk while
enjoying satisfaction of hunger.
 What is a Restaurant marketing?
• It can be a fine dining like Gloria maris,Max
or Aristocrat caters to specialty meal or
• Quick service restaurant/QSR or commonly
known as fastfood chain like Jollibee and
MacDonalds caters to ready to eat meal “on
the go”
• A small kiosk, booth like binalot or a street
eatery or known as carinderia and “turo-
turo”
 Figure 1. the fastfood chain industry:
Food chain

jollibee

mcDonalds 10 5
35
kfc 15

mang inasal
15
20
chowking

max's

Jollibee alone is 65% not to nclude chowking, Greenwich which comprises a total of 75 % which declares
Jollibee Food corporation a market dominating brand.
Marketing for Hospitality and Tourism
includes: ( kotler 2010)
• Food with integrity
• Fresh ingredients
• Organic, Naturality Raised Foods
• Restaurant Environment
• Pricing
• Loyalty
• Social networking
The above mentioned factors are just some of the significant elements in your
passport to success in the food and hospitality industry.
Food handler should always put themselves on the shoe
of a customer or what we called “ customer orientation”.
• You don’t just satisfy the company but more so
with the customer.
• Customer satisfaction will lead to repeat buying
and later on lead to company’s profit
expectations.

Cabalen restaurant a popular pampanggas

restaurant satisfy their customer who wants to
eat more at a reasonable price with their daily
promo of “ eat all you can” in all their branches.
•
 Hospitality marketing defined:
• Is a service oriented activity between a company and
the customer from the approahed stage, order taking,
handling and assembling the order up to finally
serving the product to the customer.
• It is a misconception of considering marketing is only
selling and advertising but it is more of a hands on
and customized and personalized handling of every
client.
• Hospitality marketing is a face to face encounter
between a service manager and a walk in customer.
 Hospitality in a fast food
chain

• Jollibee maintain greetings from the time of entry

and exit of every customer. The comfort of being
properly approached and accomodated everytime
they visits the store especially in the longlines,
manager takes the order personally and hand it to
the cashier, it pays to be attended than keeping the
customer wait and ignore.
• famous with customer’s be happy campaign”.
Customer needs and Wants and Demands
• Needs- it refers to a state of felt deprivation
on the basic necessity for survival. Or simply
the things that we can’t live without.
• Wants-are felt needs shaped by culture and
individual personality or normally products
that are already a luxury.
• Demads -these are needs and wants back
up by purchasing power or something that
customers expects in the long run after
using the product.
 Figure 1-1: Needs, wants and
Expectations as Illustrated:
• “ I need to to celebrate my birth day in a cozy
restaurant with enough parking space. It should
of course have variety of delicious food from the
main course to dessert. I want it to provide the
venue with good sound system so the guest may
dance during party time. I want it near my place
of work and within the main street so my guest
can easily find taxi after the party. I also want
enough space for entertaining at least 200 guest
with good security within the area. I expect
other popular establishment surrounding my
party venue.”
Customer value- are the benefits gain by the customer
in consuming the product against the buying cost.

• Consider watching a 3D movie at IMAX for

Php. 300 pesos, the ticket price is twice the
ordinary movie house but compare the
experience inside IMAX cinema with the 3D
glass on 18th floor size screen, the value is
more than enough to what you actually paid
for.
Exchange and Relationships:
• It pertains to a trade of value between a
seller or provider and the buyer/consumer
and the relationship the marketer created
while performing the transactions.
• Restaurant manager normally give a a first
time customer in the store by providing them
a “welcome drinks” or free dessert charege
on the house” making customer feel the
importance and remember the place after
leaving and even tell it to others.
Assignment 001: Needs and wants in
a service category
• List down at least 5 product examples of
Needs and wants and your expectations for
these products. (Title)
• Format: short bond paper, file number,
subject code/section code, Name and grade
on top of the paper.
• Attached pictures to your example
• Computerized
• Submission wednesday
 Services marketing
• Chapter 2
 Introduction

•Services Marketing pertains to company who

render customer satisfaction in how they served
the customers by approaching them ,
accomodate and take their orders.
•It is also concern with creating awareness and
inducing trial to first time customer by
demonstrating the benefits they can get from
offering and promoting non physical goods
known as service.
 Importance of Services Marketing

• Travel and restaurant are one of the biggest

industry comprising the country.
• Its not just about providing food and accomodation
to passengers but more so with the convenience
that they need and expect to experience as they
travel from place to place.
• Its one of the major income generating source for
the country especially in foreign exchange earnings
but more with the tourism marketing industry, it
promotes some significant destination of a country.
 Hongkong is known for top of the line malls and
night market in Mongkok Foreigners make it a
point to drop by these areas everytime they visits
hongkong.
•Hongkong is the shopping
capital of the world, known to
be not just for buying but also
with famous pleasure
destination such as Ocen park
and disneyland coordinates with
travel agencies and airlines who
provides the best hotel
accomodation and food while
on tour.
 Services marketing Explained
• McDonalds offers both product and service, by
selling physical product like Big Mac burger at
the same time also impart satisfaction in terms
of quality and speed of service and how staff
accomodate cutomers when they take orders.
• A person who go to starbucks and enjoy the
ambiance and the coffee as well as the excellent
service rendered by a barista can go back again
the next day and have the same
•
• Good Customer services means Excellent Customer satisfaction:
1. Valet parking instead of own parking space or reserved parking
makes the customer feel pecial upon arrival to the hotel or
retaurant venue.
2. Payment refund if air condition and toilet flush is found to be
defective in the hotel room of the customer.
3. Filing of customer complaints and correct them right there and
then can erace bad image of the company to customer.
4. Change the order right away in case customer complaint about
the quality of the food and avoid arguing with customers.
5. Giving them remembrance kit after check out, this can be a
walking advertisement for the hotel.
6. Give them courtesy coffee in the waiting area while waiting for
the vacant table in the restaurant.
• Topic Exercises:
• Which of the following are product marketing and service marketing and
combination of product and services.
1. PLDT offers telemarketing to accomodate those clients who can’t hardly
visit the maint office for inquiries.
2. Pizza offers the best thin slice hawaiian pizza and delivers within 30
minutes at your door step.
3. College of St Benilde offers the most customize course in Business such
as exporting and franchising.
4. Waffle time served the best flavored waffle along the mall entran.
5. John Robert Powers is known for personality training and language
development.
6. Netopia is a popular internet shop that offers the finest internet
connection at the same time sells computer supplies like flash drive and
Rewritable CD’s.
7. Valkyrie is a popular nightbar and hangout for gen Y and Gen X along
Timog at Q C.
8. Cabalen served the best Pampangga recipes on a “eat all you can basis”.
9. CD R king sells expanded line of low cost
generic brand of computer supplies.
10. HongKong Express is an airline that served
package tour passengers to Shen Zhen’s
Windows of the workd and Hongkong
Disneyland.
 Assignment no:002
• Thinking Exercises:
• What if you find out that the hotel given to your 200
customers who avail for package tour in Singapore with
accomodation was not the one agreed by the travel
agency. It was just announced it to your customers by the
tourist guide of your affiliating company in Hongkong .
Your clients were disgusted, since they were already
expecting to stay in that hotel. The Tour guide explain that
there are no vacant rooms available due sudden arrival of
walk in customers who are singaporean nationals. Some
of your clients place a long distance call to your office and
complain the incident and some are requesting for rebate
since they didn’t like the faclities of the hotel.
• Questions:
• Being a Manager of the Travel Agency, what will be
your immediate response to this complaining client
considering they are in a pleasure tour in Hongkong?
• How will you address the problem to your affiliating
travel agency in Hongkong since they did not comply
on the agreement?
• What can you do after the tour considering your 200
customers were disgusted in their tour , so you can stll
have a good rapport with these people.
Strategic Planning

Chapter 3
 Chapter 2: Marketing and
Strategic Planning
“ we are now in the world of Parity, Do and Match your
competitor”
• Previewing the Topic:
1. To learn the value of marketing strategy.
2. How a company develop its most effective
game plan to acieve success.
3. The relevance of establishing mission and
vision for the company’s future direction.
4. The Role of Strategic Planning and marketing
 STRATEGIC PLANNING AND
MARKETING
1. Marketing strategy are plan of action that a
company can executes and implement to
achieve its goals which includes:
• The target market and
• The marketing mix
– Jollibee always involved the kids in every
marketing plan het they intend to reach in the
future.
 Strategic Planning
2. Key Result Areas (KRA) of the company
involved :

• Sales - by customer strategy

• Market Share- by leading the competition
• Profit- by satisfaying the company capacity
 Sales:
• Red Bull target the blue collars and the night
shift workers as new users for the product.
• Carnation Evap” the cooking milk campaign”
captured the mothers with their new kitchen
recipes
• Coke zero- offers in all gyms and fitness
centers for those who can not take sugar
content on the regular coke.
 Profit:

• Branded and signature product are into low

sales in units but high in marginal profit.
• Nokia launch new series adopting price
skimming or launching the new brand with a
high initial price.
 company and their Marketing
sterategy:
• The company uses its strenght in in dealing with
the competition to satisfy customer’s Needs and
Wants in formulating its marketing strategy.
• Kabayan hotel was originally operating for walk
in customers such as lovers but now enjoy good
market when they reposition its hotel to OFW’s
mostly are transient customers who looks for
stay in place while furnishing their papers in
going abroad.
• Boracay targeted the tourism market as a
preferred place to go by most people in america
and asia.
 3. Defining Strategic Planning means
defining a “ strategic fit” or designing
the most appropriate marketing mix
to its target market
• The company try to use the most tailor made
startegy to capture their biggest market.
Bench launch an understatement fashion
show to push their underwear lines, ow they
enjoy good market for undies and expands to
bench body.
 Steps in strategic Planning
Delivering
the
company
Mission

Setting Developing Planning

objectives the marketing
and goals business strategy
portfolio
1. Defining Mission statement:
Defining mission is a statement of the
organization’s purpose or direction on what it
wants to accomplished in the larger
environment.
2. Setting Objectives and Goals- is building
profitable relationship with customer by
developing better products and getting them
to market faster at a lower costs.
3. Developing the Business portfolio- is the
company’s appropriate strategy for every
SBU/ strategic business unit or defining a
separate strategy for evry brand offered in
the market.

4. Planning Marketing strategy- the company’s

game plan as the product goes in the market.
 Example
• The Bar’s Major, major comebacks :
These brands prove that success is sweeter the
second time around. The Bar is a popular
alcoholic drinks in the 1990’s after a bit of a
lul. Now with its repositioning as a youth
lifestyle drinks, it regained their popularity
with its unique flavors such as Orange,
Vodca, lemon, Lime, apple Vodka and
strawberry flavors, it became more
competitive in the wine and beverage
segments. The success was attributed in the
strategic plan made by the marketing team
by revising their mission and strategic
portfolio.
Emperador light and Emperador bunso
 Strategic planning explain:

1. Every company has a direction in their mission.

2. Formulate its short term objective and its long term goal in the
future.
• La Corona Hotel was bought by Victoria court in line of their
goal of reositioning into a wholesome hotel.
3. Every move has its strategic business unit, every product has
each distinct strategy.
• TRIMEDIA advertising was always been an edge for Jollibee in
their promotional mix
4. Tactics will be implemented along with the strategy.
• Hotels tie up with airline company in generating more customers
for both
 example
Mang Inasal meet the taste and preference of pinoy in the “
chicken barbeque” segments

The process of dveloping and maintaining

” strategic fit” between the organizations goals and
capabilities and its changing marketing
opportunities.
 examples
• Street food served and sell on the push cart isn’t what it
used to bebefore, they prove that craving for some
nostalgia is not bad for the stomach such as squid balls ,
scramble, dirty ice cream, are just some of successful
franchise today, because it is how the market likes it be.
• Banco de Oro get away with those big time clients and
reach out depositors out there in the wet market and slums,
ow they tapped the CD and E and introduced banking for
the grassroots.
• The likes of Mang Inasal and Julies bakes shop continue to
“feel “ what the consumer really like and give it to them the
way they like it to be.
 1.Defining a mission
• Mission is a statement of the
organization’s purpose- what it
wants to accomplish in the
larger environment.
marketing
• 2. SETTING COMPANY
OBJECTIVES AND GOALS
– Building profitable relationship
by developing better products
and getting them to market
faster at a lower costs.
 2. Market Objective- Setting
• It is not how fast we reach our goal that
counts. It is how we reach it.
• SMART- specific, measurable, attainable,
realistic and is time bound
• SMAC- with challenging- when markets are
very dynamic.
 3. Designing the business portfolio
• The collection of businesses and
products that make up the
company.
• BCG/Boston Consulting Group-
classifies all its SBU’s according to
the growth share matrix.
– Stars-high market share/high
market growth-
– Cash cows- high market share/low
market growth
– Question marks- low market
share/high market growth
– Dogs – low market share/low
market growth
 4. Developing strategies for Growth
and Downsizing
• A portfolio planning tool for
identifying company growth
opportunities through market
penetration, market
development, product
development or diversification.
– Market penetration-increasing
sales of current market
segments without changing the
product.
– Market development-identifying
and developing new market
segments for the current
company products.
Growth opportunity matrix
 Growth opportunity matrix

Market development Diversification- SM

( New and existing retailing to SM
product) financing and SM
Realty development

Market Product
Penetration- Development-
increasing your launching
existing customers breakthrough in
product “ the VCO”
 4. Developing strategies…
• Product development- a
strategy for company
growth by offering
modified or new products
to current market
segments.
• Diversification- a strategy
for company growth
through starting up or
acquiring businesses
outside the company’s
current products and
markets.
 Examples of Growth opportunity
strategy can be seen on the following
company.
•Universal robina Corpration when they hit success in the
“ready to drink” market via C2: cool and clean, they
maintain success by introducing 5 new flavors aside from
lemon and strawberry. Now they are innovating by
offering litro size and family size C2 penetrating deeply
the consumption of the market and continue stealing
new group of markets such as the kids and adult
segments.
•McDonald and Jollibee offers food service trainee to kids
this summer.
 Examples
•Goldilocks increases its sales since they include
restaurantin their outlets, now they are known for their
palabok and halo halo.
•San Miguel Corporation is enjoying good market
popularity not just for beer but for coffee with their San
mig coffee in so many variants and flavors.
•SM department storefrom a successful retailing
market now into a SMDC or SM development of land
and realty by establishing walk in condominium
buildings along their malls.
5. Implementation plan for your
chosen strategy