Components of marketing mix of hospitality industry and other industry are same but the blending process is different as services are perishable in nature. Product, price and promotion may remain as same another physical product but the place is the service provider itself as service cannot be separated from its provider and service is produced and consumed simultaneously. Hospitality companies have to create unique value proposition and market offering (product) set an affordable and competitive charge in return (price) and let people aware about their market offering (promotion). As technologies advances many hotel and restaurant have online service like advance booking, information about service, history and legacy about the hotel make available …show more content…
One is value based pricing and the other is value based pricing. Some other factors also influence pricing for example competitor’s price, demand, peak season and off season. Suppliers are also important factor in pricing. If supplier charge high cost then hotels have charge higher to reach mark up. So negotiation with supplier is very important. Cost based pricing is setting up price based on cost. At first determine the cost and add value and charge higher than the cost to make profit. Competitors always suppress profit in this industry. They always cut their price to gain more customers. When pricing try to consider the competitors price and always try to set lower price than competitors price of same service. In hotels and restaurant they offer lower price package after business hour to sell the product which might rotten otherwise. In off season hotels charge lower price than their list price and also offer package, discount, coupon etc. In the peak season when consumer demand increase hotels charge higher price for their …show more content…
It is a blend of promotional tools to communicate with target customer and build customer relationship. There are some components of promotional mix which help to accelerate the sell and expand growth of a company. The components of promotion mix are:
• Advertising – nonperson presentation of ideas of goods and services through a paid media.
• Sales promotion – short term incentives to the customer so that they motivated to purchase. Sales promotion is done by the hotel in the off season.
• Personal selling – direct sells by the company’s sales force to the customers to make sales and build customer relationship. Scope of personal selling in hospitality industry especially in hotels and restaurant is huge.
• Public relations – creating good relationship with publics by building favorable public image and handling off unwanted events. A positive review about a restaurant in famous magazine may create favorable public image.
• Direct selling – carefully target individual customers to get on the spot response and build long lasting customer relationship (Crotts and Wolfe,
This paper will describe the four elements of the marketing mix (product, place, price, promotion). In addition, it will describe how each element is implemented within a specific organization and how the four elements relate to that organizations marketing strategy. The company used in this example is both a product and service driven company and is in business for profit.
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
Let us look at the individual components of the promotions mix in more detail. Remember all of the elements are 'integrated' to form a specific communications campaign.
Direct selling includes direct-to-customer sales through personal representatives and party-planning methods (examples: The Pampered Chef, Electrolux vacuum cleaner sales people).
Marketing Mix is a very essential concept for the progression of the business. Products and services of a business organization get effective strategic positions in the market with the help of using marketing mix. According to Belz (2011), through appropriate attentiveness of the marketing mix, an organization can have proper explicated marketing tactics and strategies through which the company’s marketing objectives can be achieved at the required level. Marketing mix is not merely a single term but it is an assembly of different elements of marketing.
Direct-Response Marketing: A type of marketing that occurs when a retailer advertises a product and makes it available through mail or telephone orders
Price is the amount of money paid by customers to purchase the product. Margin account should be taken into account in the decision as a response to the possibility of a competitor according to quickmba, 2004. The price which is creates sales revenue. For example is the cost. The price of goods is an important factor in the value of sales made. In theory, prices should be determined according to customer demand with the goods sold are affordable. Customers will researching the prices of goods sold because it shows how they appreciate what they are looking for and what they want to pay. The price is not issue to my restaurant. This is because my restaurant offers the price that customer can afford. We are offers a premium and medium price to the customer compare to other restaurant. Besides that, we also offering a high quality in service compare to other. For example, other restaurant they offer the best quality food at the highest prices compare to us we are offer a high quality food and service at the premium and medium
Promotion :- The promotions aspect of the marketing mix covers all types of marketing communications One of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way
Hotel room sales Distribution Channels have evolved over the years. As in past there are several key factors that constitute a successful distribution campaign, the digital era continues to evolve and hospitality continues to adapt with it. The identified distribution channels are divided into four parts. CRS (Central Reservation Systems) or so called voice channel continues to be biggest contributor. Followed by OTA (Online Travel Agents), also called wholesale and third party, that continues to increase its reservations share with increased use of digital devises. Then, the DS (Direct Sale) share, that includes the company own website that generates reservations. Finally, the GDS (Global Distribution System) that continues to increase due to the consolidation of system within this share as a factors driving the reservation and shrinking gap between global hospitality communities.
This report describes the term known as Corporate Hospitality, identifies and describes its role and function within the market. The purpose of the report is to evaluate and explain possible benefits and issues, businesses may face when operate within the industry.
Promotion. Finally comes promotion - informing the customer on the qualities and advantages of the product so that the potential buyer learns about the product, prefers it to those of the competitors, and has an opportunity to buy it at some place.
What is Public Relations (PR)? PR is difficult to define because it encompasses so many areas and today has developed into a multi-million dollar industry influencing all aspects of our lives (Adams et al, 1999). However, it is important to be able to compare and contrast the various definitions in order to have a complete understanding of what public relations is and how it is used. The public is a large population to consider, making it easier to understand why it is so difficult to define PR. Along with a large population come many perceptions, beliefs, ideas, and opinions, all influences on PR. I define public relations as the act/s used by individuals, corporations, and groups to influence ones opinions and/or decisions about a product, idea, person/s, company/s, etc. and the public. Robert L. Heath defines PR as functions of management/supervisors that foster an organization's ability to strategically listen to, appreciate, and respond to those persons who's mutually beneficial relationships with the organization are necessary if it is to achieve its missions and values (Health, 2007)'.
Hospitality industry is an extremely expansive industry. It is not generally simple to characterize the friendliness business. There are diverse criteria of characterizing it. One of the methods for characterizing neighborliness industry is by utilizing Standard Industrial Classification (SIC) which was established in United Kingdom in 1948.it characterized the friendliness business under the 1968 arrangement, as Establishments (whether authorized for the offer of inebriating alcohols) giving dinners, light refreshments, beverage or accommodation. Hospitality industry is characterized as inn, motels, hotels or such organizations that gives transitional or fleeting hotel, with or without nourishment. Both definitions recommend that cordiality industry is the business which gives sustenance and convenience to the visitor. Cordiality industry is made up of two unique administrations procurement of overnight convenience for individuals staying far from home, and the procurement of sustenance for individuals consuming from home or not setting up their own particular suppers.
As the marketing consultant for a hospitality management company, it is often my responsibility to define target markets for various restaurants and hotels. In fact, I have been tasked with creating a fictional hospitality operation, to utilize as an illustration to define a marketing strategy and target market. In addition, I must identify and analyze the product life cycle of an organization that has been in business for a minimum of twenty-five years.
Hospitality is one of the largest and fastest growing industries. It constantly needs a reliable work force to support the industry and its’ growth. The hospitality industry is divided into two parts: lodging and foodservice. Within the lodging sector, jobs range from a housekeeper to a receptionist to a general manager. I chose to research the job of hotel and motel managers, because it is within my field of study. A hotel/motel manager plans, supervises, and controls operations of a hotel or motel.