Tourism & Hospitality Marketing Tamer Zakaria, HR Consultant Instructor of Hospitality Management Faculty Member of the American Hotel & Lodging Educational Institute

Tourism & Hospitality Marketing Tamer Zakaria 2 Session Rules Late persons are not accepted Be on time Mobiles Off/Silent Participate Respect 6 No beside talking Agreements 7 Have fun

Course Description This course prepares the students to meet the marketing challenges facing today’s tourism and hospitality industry, and gives them the knowledge and skills they need to develop and contribute to a strategic marketing plan for tourism and hospitality businesses. 3 Tourism & Hospitality Marketing Tamer Zakaria

Course Objectives By the end of the course, you will be able to: Understand the core concepts of marketing. Define marketing and outline the steps in the marketing process. Identify four service characteristics that affect the marketing of a hospitality or travel product. Explain company-wide strategic planning. Describe the microenvironment and microenvironment. Explain the concept of the marketing information system. Outline the marketing research process. Tourism & Hospitality Marketing Tamer Zakaria 4

Continued 1 Define market segmentation and explain why it is a critical strategic choice. Describe the target marketing and positioning processes. Describe the term product, included the core, facilitating, supporting, and augmented product. Describe the three-step process involved in implementing an internal marketing program. Identify the purpose and components of an effective communications mix. Describe the various roles that pricing plays in the marketing mix. Tourism & Hospitality Marketing Tamer Zakaria 5

Continued 2 Define and explain the function and logic of tourism and hospitality distribution networks. Identify the purpose and components of an effective communications mix. Describe strategies for creating and managing tourism and hospitality advertising effectively. Tourism & Hospitality Marketing Tamer Zakaria 6

Syllabus Unit 1 Intro. to Marketing and the Core Concepts of Marketing. Unit 2 Service Characteristics of Tourism and Hospitality Marketing. Unit 3 The Role of Marketing in Strategic Planning. Unit 4 The Marketing Environment. Unit 5 Marketing Information Systems and Marketing Research. Tourism & Hospitality Marketing Tamer Zakaria 7

Continued 2 Unit 6 Market Segmentation, Targeting, and Positioning. Unit 7 Tourism and Hospitality Marketing Mix. Unit 8 Managing Tourism and Hospitality Products & Internal Marketing. Unit 9 Tourism and Hospitality Pricing Strategies. Unit 10 Distribution Channels. Tourism & Hospitality Marketing Tamer Zakaria 8

Continued 3 Unit 11 Communication Mix (Sales, Sales Promotion, and Merchandising). Unit 12 Communication Mix (Advertising, Publicity, and Public Relations). Tourism & Hospitality Marketing Tamer Zakaria 9

Unit 1 Introduction to Marketing & the Core Concepts of Marketing Tourism & Hospitality Marketing Tamer Zakaria 10

Unit 1 Outline The Core Concepts of Marketing. Marketing System. What is Marketing? Goals of Marketing. What is Marketed? Evolving Views of Marketing’s Role. Marketing Management. Marketing Management Orientations. Tasks of Marketing Management. Marketing Mix. Tourism & Hospitality Marketing Tamer Zakaria 11

Core Concepts of Marketing Tourism & Hospitality Marketing Tamer Zakaria 12 Needs, Wants, and Demands Offerings and Brands Value and Satisfaction Segmentation, Target Markets, and Positioning Exchange and Transactions Relationships and Networks Marketing Channels Supply Chain Competition Marketing Environment

Marketing System Tourism & Hospitality Marketing Tamer Zakaria 13 Industry (a collection of sellers) Market (a collection of Buyers) Money Goods/services Information Communication

What Is Marketing? Marketing Is Managing profitable customer relationships. A social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. Tourism & Hospitality Marketing Tamer Zakaria 14

Goals of Marketing Twofold Goal of Marketing Is: To attract new customers by promising superior value. To keep and grow current customers by delivering satisfaction. Tourism & Hospitality Marketing Tamer Zakaria 15

What is Marketed? Goods. Services. Experiences. Events. Persons. Places. Properties. Organizations. Information. Ideas. Tourism & Hospitality Marketing Tamer Zakaria 16

Evolving Views of Marketing’s Role Tourism & Hospitality Marketing Tamer Zakaria 17 a. Marketing as an equal function Finance Production Marketing Human Resources b. Marketing as a more important function Finance Human Resources Marketing Production

Continued 1 Tourism & Hospitality Marketing Tamer Zakaria 18 Marketing Finance Human Resources Production c. Marketing as the major function Customer Human Resources Finance Production Marketing d. The customer as the controlling factor

Continued 2 Tourism & Hospitality Marketing Tamer Zakaria 19 Finance Customer Production Human resources e. The customer as the controlling function and marketing as the integrative function

Marketing Management Marketing Management is the art and science of choosing target markets and building profitable relationships with them. Tourism & Hospitality Marketing Tamer Zakaria 20

Marketing Management Orientations The Production Concept. The Product Concept. The Selling Concept. The Marketing Concept. The Societal Marketing Concept. Tourism & Hospitality Marketing Tamer Zakaria 21

The Production Concept The Production Concept holds that consumers will favor products that are available and highly affordable. Therefore, management should focus on improving production and distribution efficiency. This concept is one of the oldest orientations that guides sellers. The production concept can lead to marketing myopia. Tourism & Hospitality Marketing Tamer Zakaria 22

The Product Concept The Product Concept holds that consumers will favor products that offer the most quality, performance, and innovative features. Under this concept, marketing strategy focus on making continuous product improvements. Product quality and improvement are important parts of most marketing strategies. Tourism & Hospitality Marketing Tamer Zakaria 23

The Selling Concept The Selling Concept holds that consumers will not buy enough of the firm’s products unless it undertakes a large- scale selling and promotion effort. Aggressive Selling, however, carries high risks, It focuses on creating sales transactions rather than on building long-term, profitable customer relationships. The aim often is to sell what the company makes rather than making what the market wants. Tourism & Hospitality Marketing Tamer Zakaria 24

The Marketing Concept The Marketing Concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Under the marketing concept, customer focus and value are the Paths to sales and profits. Instead of a product-centered “ MAKE & SELL” philosophy, the marketing concept is a customer-centered “ SENSE & RESPOND “ philosophy. Tourism & Hospitality Marketing Tamer Zakaria 25

The Societal Marketing Concept The Societal Marketing Concept holds that marketing strategy should deliver value to customer in a way that maintains or improves both the customer’s and the society’s well-being. Tourism & Hospitality Marketing Tamer Zakaria 26

Tasks of Marketing Management Developing marketing strategies and plans. Capturing marketing insights and performance. Connecting with customers. Building strong brands. Shaping the market offerings. Delivering and communicating value. Creating successful long-term growth. Tourism & Hospitality Marketing Tamer Zakaria 27

Marketing Mix Product – What do you sell? Place – Where do you sell it? Price – What do you sell it for? Promotion – How do you spread the word? Tourism & Hospitality Marketing Tamer Zakaria 28

Four Ps / Four Cs Tourism & Hospitality Marketing Tamer Zakaria 29 Customer Solution Marketing Mix Product Price Customer Cost Promotion Communication Place Convenience

Unit 2 Service Characteristics of Tourism & Hospitality Marketing Tourism & Hospitality Marketing Tamer Zakaria 30

Unit 2 Outline What is Tourism & Hospitality Marketing? The Service Culture. The Characteristics of Service Marketing. Management Strategies for Service Businesses. Tourism & Hospitality Marketing Tamer Zakaria 31

What is Tourism & Hospitality Marketing? Tourism & Hospitality Marketing is a total system designed to plan, price, promote, and make available to selected markets products and services in the form of benefits and experiences that create satisfied guests and achieve organizational objectives. Tourism & Hospitality Marketing Tamer Zakaria 32

The Service Culture The Service Culture focuses on serving and satisfying the customer. The Service Culture has to start with top management and flow down. Tourism & Hospitality Marketing Tamer Zakaria 33

Characteristics of Service Marketing Tourism & Hospitality Marketing Tamer Zakaria 34 Intangibility Inseparability Variability Perishability Services

Continued Tourism & Hospitality Marketing Tamer Zakaria 35 Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Perishability Services cannot be stored for later sale or use Inseparability Services cannot be separated from their providers (People) Services Variability Quality of services depends on who provides them and when, where, and how

Management Strategies for Service Businesses Managing differentiation. Managing service quality. Resolving customer complaints. Tangibilizing the product. Managing employees as part of the product. Managing perceived risk. Managing capacity and demand. Managing customer relationships. Tourism & Hospitality Marketing Tamer Zakaria 36

Unit 3 The Role of Marketing in Strategic Planning Tourism & Hospitality Marketing Tamer Zakaria 37

Unit 3 Outline The Marketing Process. The Strategic Planning. Steps in Strategic Planning. Marketing Analysis. Customer-Driven Marketing Strategy. Tourism & Hospitality Marketing Tamer Zakaria 38

The Marketing Process Tourism & Hospitality Marketing Tamer Zakaria Steps in The Marketing Process Design a customer-driven marketing strategy Understand the marketplace and customer needs & wants Construct an integrated marketing program that delivers superior value Build profitable relationships and create customer delight Capture value from customers to create profits & customer equity

Strategic Planning Strategic Planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. Strategic Planning helps a company select and organize its business in a manner that keeps the company healthy despite unexpected upsets in any of its specific business or product lines. Tourism & Hospitality Marketing Tamer Zakaria 40

Strategic Planning Tourism & Hospitality Marketing Tamer Zakaria Steps in Strategic Planning: Setting company objectives and goals Defining the company mission Designing the portfolio Planning marketing and other functional strategies

Marketing Analysis SWOT Analysis S trengths W eaknesses O pportunities T hreats Tourism & Hospitality Marketing Tamer Zakaria 42

Customer-Driven Marketing Strategy Market Segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior who might require separate products or marketing programs. Market Targeting is evaluating each market segment’s attractiveness and selecting one or more segments to enter. Positioning is the place the product occupies, relative to competitors’ product, in consumers’ minds. Tourism & Hospitality Marketing Tamer Zakaria 43

Marketing Mix 4Ps4Cs ProductCustomer solution PriceCustomer cost PlaceConvenience PromotionCommunication Tourism & Hospitality Marketing Tamer Zakaria 44

Tourism & Hospitality Marketing Tamer Zakaria 45 Competitors Marketing intermediaries Publics Suppliers Marketing information system Marketing planning system Marketing organization system Marketing organization and implementation Product Promotion PlacePrice Target customers Demographic/ economic environment Social/ cultural environment Technical/ physical environment Political/ legal environment

Tourism & Hospitality Marketing Tamer Zakaria 46 Strategic- Planning, Implementation, and Control Process Measure results Evaluate results Take corrective action ImplementationPlanning Corporate planning Division planning Business planning Product planning Carry out the plan Control

Unit 4 The Marketing Environment Tourism & Hospitality Marketing Tamer Zakaria 47

Unit 4 Outline The Company Microenvironment. The Company Macroenvironment. Tourism & Hospitality Marketing Tamer Zakaria 48

The Marketing Environment The Microenvironment consists of actors and forces close to the company that can affect its ability to serve its customers. The Macroenvironment consists of the larger societal forces that affect the whole microenvironment. Tourism & Hospitality Marketing Tamer Zakaria 49

Continued MicroenvironmentMacroenvironment The companyCompetitive environment Existing competitorsDemographic environment SuppliersEconomic environment Marketing intermediariesNatural environment Marketing services agenciesTechnological environment Financial intermediariesPolitical environment CustomersCultural environment Publics Tourism & Hospitality Marketing Tamer Zakaria 50