Chapter 1 “Marketing is so basic that it cannot be considered a

Introduction 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.”
Marketing
-Peter Drucker
for
Hospitality
and Tourism

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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andMakens
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Course Overview Chapter Objectives

1. Understand the hospitality and tourism
marketing process 1. Understand the relationships between the
world’s hospitality and travel industry
2. Recognize developing hospitality and
tourism marketing strategies 2. Define the role of marketing and discuss its
core concepts
3. Understand how to develop the hospitality
and tourism marketing mix 3. Explain the relationship between customer
value satisfaction and quality
4. Comprehend managing hospitality and
tourism marketing
©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
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andMakens
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1
 Chapter Objectives The Travel Industry

• The travel industry is the world’s largest

4. Discuss how marketing managers go about
developing profitable customer relationships
• One billion international travelers by 2010
5. Understand how the marketing concept calls
for a customer orientation • 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

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
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Customer Orientation Customer Orientation

• The purpose of business is to • Without customers assets have

create and maintain satisfied, little value
profitable customers • Why does Michael Leven, CEO of
• Put the customer first and reward US Franchise Systems, say its
employees for serving customers important for businesses to have a
well customer orientation approach?
©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens

2
 What is Marketing? Marketing Manager

Marketing is a social and managerial A person involved in marketing

process by which individuals and groups analysis, planning, implementation,
obtain what they need and want through and control activities
creating and exchanging products and
value with others

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens

Core Marketing Concepts

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
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
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Kotler, Bowen,
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andMakens
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3
 Product Value, Satisfaction, and Quality
• Customer value is the difference between the
• A product is anything that can be customer benefits from owning and/or using a
offered to satisfy a need or a product and the costs of obtaining the product
want • Customer satisfaction is perceived value
delivered relative to a buyer’s expectations
• Quality is the totality of features and
• What are some travel and characteristics of a product or service that bear
tourism “products” that you can on its ability to satisfy customer needs

list?
©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
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Exchange, Transactions, and Markets

Relationship Marketing
• Exchange is the act of obtaining a desired
object from someone by offering something in A market is a set of actual and
return
• A transaction is marketing’s unit of
potential buyers who might
measurement and consists of a trade of values transact with a seller
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

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
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andMakens
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4
 Marketing Management Marketing Management
Philosophies
Marketing management is the analysis,
planning, implementation, and control of
programs designed to create, build, and • Manufacturing
maintain beneficial exchanges with target • Product
buyers for the purpose of achieving • Selling
organizational objectives • Marketing
• Societal Marketing

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
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andMakens
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Manufacturing Concept Product Concept

• Consumers favor available and highly
• Consumers prefer existing products and
affordable products
product forms
• Management’s job is to develop good
• Management should improve production
and distribution systems versions of these products
• Inward focused like the Manufacturing
• However, don’t forget the customer! Concept, so don’t forget your customers!

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
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andMakens
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5
 Selling Concept Market Concept
• Consumers will not buy enough products • Achieving organizational goals depends on
unless the company undertakes large determining the needs and wants of target
selling and promotion efforts markets and delivering desired satisfaction
• Aim is to maximize sales without worrying better than competitors
about customer satisfaction • Creates long term customer relationships
• Fails to establish a long-term relationship • Frequently confused with “Selling Concept”
with customers

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006
©2006 Pearson
Pearson Education,
Education, Inc.
Inc. Marketing for Hospitality
Marketing forand Tourism,and
Hospitality 4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper
Upper Saddle
Saddle River,
River, NJ
NJ 07458
07458 Kotler,
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Marketing and Sales

Societal Marketing Concept
Concepts Contrasted
• 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

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens

6
 Importance of Marketing The Future of Marketing
• Rapid changes make yesterday’s
• Corporate giants have increased marketing
techniques out-of-date
importance for entire industry
• Predicted hotel consolidation into 5 or 6
chains will create intense competition • All company departments are becoming
involved in satisfying customers
• Growing competitive pressures increasing
importance of the Marketing Director
• A focus on internal as well as external
marketing
©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
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Best Practices Best Practices

• Four Seasons and putting customers
first • Accor and L’esprit Accor concept
• Singapore Airlines and its top ranked • Ritz Carlton delivering “memorable
product experiences”
• Dubai – ridding itself of its reputation of • McDonald’s QSC&V principle
being the “smuggling capital of the • “DC Briefcase Incident”
Arab world”
• Hong Kong and the “world’s best
airport”
©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens

7
 Key Terms Key Terms
• Create and maintain customers • Human need

• Demands • Human want

• Exchange • Manufacturing Concept

• Hospitality Industry • Market

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens

Key Terms Key Terms

• Marketing • Product

• Marketing Concept • Product Concept

• Marketing Management
• Quality

• Marketing Manger
• Relationship Marketing
©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition ©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens

8
 Key Terms
• Selling Concept

• Societal Marketing Concept

• Transaction

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,and
andMakens
Makens