1. Chapter 1 Introduction Marketing for Hospitality and Tourism

2. “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 view…Business success is not determined by the producer, but by the customer.” -Peter Drucker
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

3. Course Overview
1. Understand the hospitality and tourism marketing process
2. Recognize developing hospitality and tourism marketing strategies
Understand how to develop the hospitality and tourism marketing mix
Comprehend managing hospitality and tourism marketing
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

4. Chapter Objectives
1. Understand the relationships between the world’s hospitality and travel industry
2. Define the role of marketing and discuss its core concepts
3. Explain the relationship between customer value satisfaction and quality
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

5. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

6. The Travel Industry The travel industry is the world’s 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

7. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

8. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

9. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

10. Marketing Manager
A person involved in marketing analysis, planning, implementation, and control activities
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

11. Core Marketing Concepts
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

12. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

13. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

14. 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 buyer’s 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

15. Exchange, Transactions, and Relationship Marketing
Exchange is the act of obtaining a desired object from someone by offering something in return
A transaction is marketing’s 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

16. Markets
A market is a set of actual and potential buyers who might transact with a seller
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

17. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

18. Marketing Management Philosophies
Manufacturing
Product
Selling
Marketing
Societal Marketing
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

19. Manufacturing Concept
Consumers favor available and highly affordable products
Management should improve production and distribution systems
However, don’t forget the customer!
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

20. Product Concept Consumers prefer existing products and product forms
Management’s job is to develop good versions of these products
Inward focused like the Manufacturing Concept, so don’t forget your customers!
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

21. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

22. 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 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

23. Marketing and Sales Concepts Contrasted
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

24. 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 consumer’s and society’s well-being
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

25. 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

26. The Future of Marketing
Rapid changes make yesterday’s 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 Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

27. 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 “world’s best airport”
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

28. Best Practices Accor and L’esprit Accor concept
Ritz Carlton delivering “memorable experiences”
McDonald’s QSC&V principle
“DC Briefcase Incident”
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

29. Key Terms Create and maintain customers Demands Exchange
Hospitality Industry
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

30. Key Terms Human need Human want Manufacturing Concept Market
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

31. Key Terms Marketing Marketing Concept Marketing Management
Marketing Manger
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

32. Key Terms Product Product Concept Quality Relationship Marketing
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

33. Key Terms Selling Concept Societal Marketing Concept Transaction
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens