The Role of Marketing

The Role of Marketing
What Is Marketing?
What do you think of when you hear the word “marketing”?
Copyright
Marketing Quote by Megan Blakes is licensed under Centennial College.
This quotation makes me feel excited and a bit overwhelmed about the
endless opportunities that can exist in the world of marketing and how
strategic marketing objectives aligned to consumer needs and wants can
contribute to successful lead and revenue generation for an organization.
Marketing is constantly evolving in today’s world. In this module, we will
explore new ways of embracing new resources, tools, and technologies to
reach consumers in our learning journey. Keep your mind open as we explore
the infinite possibilities and impacts of marketing!
In fact, the possibilities are so vast that there are several definitions of
marketing. Let's explore some more:
Marketing may seem to be something put together through the use of music,
colors, pictures, or catchy slogans. However, before you even become aware
of the product or service, a company will work through many processes prior
to entering the consumer market. Here is one of our favourite definitions of
marketing:
Marketing is a continuous, sequential process through which management

in the hospitality and travel industry plans, researches, implements, controls,
and evaluates activities designed to satisfy both customers' needs and wants
and their own (organization's) objectives.
The Role of Marketing

The marketing process involves a company or a brand differentiating its
product or service from another brand’s in an effort to stay relevant and to
ensure that its strategies and messages resonate with customers. Getting
consumers interested in your products or services occurs through market
research and analysis, and this happens through market research. The
ultimate objectives of marketing are to generate revenue and to drive profits
so a company can run operations. If you are working for a non-profit
organization, the revenue generated would be to help fund programs.
Marketing is responsible for a large part of an organization’s expenses and its

revenue. The main aspect of marketing revolves around promotion, with
other elements including product, price, and place (referred to as the 4 P’s)
which are required to maximize profitability or generate revenue.
What Is the Difference Between Marketing and Selling?

Although there are similarities between marketing and sales, such as lead
generation and revenue, they are two separate business functions within an
organization. Marketing is the process that involves getting people interested
in the goods and services being sold. It involves all activities that help spark
interest in your product or service. Marketing professionals will conduct and
use market research and analysis to learn about the interests of their potential
customers and to design products or services that meet the existing or new
needs of a consumer.
The term sales refers to activities that lead to the selling and transaction of
goods and services between two parties – where the buyer receives goods
(tangible/intangible) or services in exchange for money. Sales professionals
are responsible for developing and managing relationships with prospects
(potential clients) and existing clients.
Here is a comparison chart between the two:
Marketing Sales
Approach • Consists of a broader range of activities • Consists of selling the product or

such as helping sell a product/service service to the prospect or existing
• Determine future consumer needs client through building one on one
through strategies relationships.
Focus • Overall, to promote, price, and • To convert prospects (potential

distribute products and services clients) to paying customers
• Fulfill the needs and wants of • Generate revenue for the company
consumers about what the organization through the product(s) or service(s)
can offer
Process • A series of steps to identify consumer • Move a prospect through the

problems, analyze market various stages of the sales process
opportunities, and create marketing to close the deal/sale
implementation and control. • Usually one to one conversation
Purpose • Marketing is used to reach consumers • Selling is the ultimate result of

and to build long lasting relationships marketing
Strategy • Marketing becomes an organization’s • Sales is the strategy of meeting

overall game plan for reaching needs in an opportunistic,
prospective consumers and turn them individualistic method, driven by
into buying consumers. human interaction.
The Role of a Marketing Department in an Organization

The marketing department plays an essential role in an organization and
within society. It collaborates its activities and functions with other
departments and external stakeholders. For example, a marketing department
may need to work with the research and development department in an
organization to develop a new product and to work with manufacturers to
produce products while ensuring quality and cost efficiency. The finance
department is involved in monitoring sales and costs while information
technologies would coordinate all digital marketing technologies.
Copyright
The Marketing Department by Megan Blakes is licensed under Centennial College.
The marketing department helps an organization create an awareness of its
products, services, and ideas. The department also build relationships with
new and existing consumers through various engagement techniques and
promotional activities to help generate revenue and profitability. A marketing
department also conducts a lot of research on their competitors and their
products to keep up with what they are doing in terms of launching their
products. The department also learns about the strengths and weaknesses of
its competitors. It is important to know how the organization is placed in
relation to its competitors, why the customers prefer the other companies, and
which customers the competition targets along with the type of relationship it
has with its customers. Once a marketing department has this information, it is
able to analyze the competitors and create a better product, service, idea and
relation to a customer strategy for the organization.
Budgets
Marketing departments work on budgets and are provided with a certain

amount of money to spend to create a strong presence for the organization,
product, service or idea in the market. It is the responsibility of the marketing
department to estimate the cost of all marketing activities as it creates and
prepares a budget that would use the allocated amount of money efficiently.
Branding
We will talk more about branding in the coming weeks of this course. To
begin, branding represents the identity of a company. Branding helps to
enhance the image of an organization and make it more credible, creates an
emotional connection with the audience, motivates the audience to buy, and
creates loyalty for the brand and its products. The marketing department
creates and promotes a brand through images, words, ideas, and benefits to
its audience
Marketing strategies
Creating and managing strategies are key concerns for the marketing
department. Such strategies ensure profitable growth for the organization.
Events
Managing events also falls under the scope of the marketing department’s
responsibilities. This includes promotional events, trade shows, seminars and
training, conventions, etc
It is evident that the marketing department is essential in helping an
organization succeed and attain profitable growth by providing important
information to the organization about all aspects of the business other than
just promoting a product or service. There are many other functions you will
learn about as we continue to learn more about marketing!
The PRICE of Marketing

Eras of Marketing
If one thing is constant in the world of marketing, it is change. The marketing
concept has evolved and progressed through centuries, decades, and years,
and marketing has its own rich history. The way people live, make purchasing
decisions, conduct business, and sell products or services has evolved
greatly, with technology creating one of the biggest impacts by introducing
enormous change. The following is a list of the five marketing eras:
The Evolution of Marketing in Nonservice Industries

1920–1930 Production Orientation
1930–1950 Sales Orientation
1950–1970 Marketing Orientating
• Marketing Department (1950–1960)

• Marketing Company (1960–1970)
1970–Present Societal Marketing

1995–Present Online Marketing
To learn more about these eras, you will be doing some independent
research. Complete this exercise to share information about each era with
your peers, and to learn from one another.
The PRICE of Marketing

To ensure effective marketing, marketers need to be strategic in their
marketing planning process. Using a marketing system requires carefully
evaluating multiple alternatives, choosing the right activities for specific
markets, anticipating challenges, adapting to these challenges, and
measuring success (Morrison, 2010).
A common strategic management process used by organizations is called the

PRICE concept:
• P: plan (where are we now?)

• R: research (where would we like to be?)
• I: implement (how do we get there?)
• C: control (how do we make sure we get there?)
• E: evaluate (how do we know if we got there?)
In this way, marketers can be more assured that they are strategically
satisfying both the customers' needs and the organization’s objectives.
Marketers are always looking for a competitive edge so they can offer their
target audience a product or service that does not already exist. For this
reason, the planning stage is so important. When marketing a product, first
determine what value the product will bring to consumers, what solution will it
solve, whether the product or service currently exists in the market, and how
much will it cost you to launch the product or service. You also need to
consider how your competition will respond and the lifespan of your product.
Some questions marketers would ask themselves during the planning phase
are:
• What is the product or service?

• What does it look or feel like?
• Why are we creating this product or service?
• Which solution does it solve?
For example, when McDonald’s decided to compete with their coffee, they
had to reformulate their coffee’s quality and brand image in order to
successfully compete with Tim Horton’s, Starbucks, and Second Cup.
Core Principles of Marketing
Copyright
Core Principles of Marketing by Megan Blakes is licensed under Centennial College.
In business, foundational aspects must be kept in mind to ensure that the product or
service is successful. Companies have resources such as time and money, but they are
limited. Therefore, companies need to decide which product or service is going to
maximize their revenue or profits.
The six core principles of marketing are important for understanding marketing as a
whole, and individualized concepts can branch from marketing in its entirety. No real
order needs to be followed when working on developing a product because all will be
worked on at some point. In some cases, you will go back to delve deeper into certain
principles during this continuous process.
As you work through the six principles, think about yourself personally. Which products
do you use? Which brands appeal to you? What do you think that company did to
create the success that they had? Think about events or experiences you have had.
What steps did it take to make the company or product successful? Considering all
these factors will help you understand why something is successful.
You're encouraged to perform external research in addition to what is shared in the
modules. The more research you do, the more imprinted the knowledge will become in
your mind. Write down any questions or clarifications that you have as you are
researching. Reach out to your professor to have these questions answered.
What Is the Marketing Concept?
The marketing concept involves a company utilizing its data and then
developing marketing strategies to determine and meet its customers' needs
and wants. The concept helps a company create a product or service that is of
value to customers, and the concept is also implemented to meet a
company’s goal and objectives. The most successful companies today have
applied the marketing concept (market research) to help create products or
services that meet the needs and wants of their customers by identifying a
target market or targeting consumers. In this way, marketers are satisfying the
needs of consumers better than competitors are while earning a profit.
Principle #2: Satisfying Customer Needs

and Wants
Copyright
Customer Needs and Wants is licensed under iStock.
This is one of the key principles of marketing. If you do not know who your customers
are and what drives them, deciding where you are going to market your product to make
the best return on your investment will be difficult.
A need is what a customer requires for a specific reason. The need could
be physical as in a house, an apartment, or a vehicle. Or it could be emotional, or
something that is internally important to the customer. A want is the next level. If you do
not have your needs taken care of, you won't be able to develop the wants. A want is
something extra after our needs have been satisfied. The want is important to know as
a supplier of a product because you need to know those you are attracting.
Watch this video, and complete the questions to investigate the topic of needs versus
wants further.
Needs Versus WantsNeeds vs. Wants Video Transcript
Look at companies that you know of; to whom do they appeal? What makes something
a need or a want? Some companies will target only the needs or wants of their
customers. Some will speak to both. Do you know of products that address both the
needs and wants of customers? Some companies will have multiple offerings to meet
the needs and wants of different customers. Think about hotel brands or grocery chains.
Both types of businesses are key examples of companies that have multiple types of
offerings to meet different customer needs.
The grocery chain Weston's has multiple brands. They have brands that vary from a
higher end platform, such as Loblaws to a lower end option, such as No Frills. Both
marked equally good products and resources, but they meet the needs of different types
of customers.
Copyright
Loblaws Grocery Store is licensed under iStock.
Copyright
No Frills Grocery Store is licensed under Wikimedia Commons.
What do you think the different needs of the customers in this example are? Everyone
needs food, but think about what they offer in their stores, what the price point is, why
someone might choose to visit one store over another.
Principle #3: Marketing Mix

Many elements make up the marketing mix. The keys to being successful in marketing
involve knowing who is the right customer for your product, what is the right price of
your product, what is the right place to sell your product, and where and how are you
going to promote your product.
The Hospitality and Travel Marketing Environment consists of two main components:
• Marketing Strategy Factors (controllable)

• Marketing Environment Factors (uncontrollable)
What's the Difference?

Marketing Strategy Factors (Controllable)
Of the eight Marketing Strategy Factors, these factors allow us to make decisions based
on research and resources. These four traditional P’s of the marketing mix are all
controllable factors that must be carefully managed by marketers to ensure they are
well-coordinated and that each of them appeals to the distinct characteristics of the
target market.
Copyright
Marketing Mix 8 P's by Megan Blakes is licensed under Centennial College.
• Product:
o What is your good, service, or idea?
o This includes product design, features, colour, packaging, and service levels.
• Price:
o What is the exchange of your product?
o Does your price align with the value of your product?
• Place:
o How will your consumers have access to your produce or service?
o This includes distribution channels, retails, and merchandising used to sell a
product. Also consider location if you are a restaurant or hotel.
• Promotion:
o How and where will you communicate your product or service to consumers?
o Will you communicate through digital marketing, billboards, advertising?
Understanding the four Ps of the Marketing Mix is important, but it is also

essential to have an understanding of the other four aspects that make up the
total of eight Marketing Strategy Factors. As you learn about these additional
factors, the terminology may overlap, depending on the resources you are
using. Keep this in mind.
• People:
o Chances are you have been sold a service or product and
returned the product because of the personal service that you
received.
o They've developed a loyalty with you that keeps you going back.
o The people may convince us to buy a product whether it is
something we were thinking about doing or not.
• Processes:
o What are your operating standards?
o How are you going to put the product out there?
• Partnership:
o In partnership marketing, two businesses collaborate because
they have a relationship with a target market that one of the
businesses is trying to target for itself.
Marketing Environment Factors (Uncontrollable)

The PESTEL analysis is a great acronym to use to help you remember and
take into account the different uncontrollable factors of the marketing
environment.
As you most likely noticed, PESTEL is an acronym. Different resources

may use the letters in a different order or may use only some of the letters
depending on the context and reason for the analysis.
Some of the uncontrollable factors in the Marketing Environment include:
• Competitors
• Laws and Government Regulations
• Economy
• Technology
• Society and Culture
• Organizational Priorities and Goals
Principle #4: Market Segmentation

Market segmentation is one of the fundamentals of any business. You have to know
your audience and what makes them tick, where they come from, what they like, and
who they are. Once you narrow this down, you can then truly target the right customer.
Depending on the industry that you are in, you will further break these components
down into segments. For example, if you work in the hotel industry, you might have
groupings based on the type of guest. You could have business travellers, leisure
travellers, an association group, a corporate group, a wedding group, a sports team.
You might segment all of these groups separately.
Why Is Market Segmentation Important for Marketers?

It is easier for marketers to personalize their marketing campaigns by
targeting a specific group in a market segment as opposed to trying to market
to each individual consumer. This strategic approach makes marketers more
efficient with their time, money, and other resources they may have. Dividing a
market based on key characteristics and personalizing the marketing
campaign increases its effectiveness and overall results as this approach is
specific to the target market, as opposed to creating a generic marketing
campaign to target all segments. We will explore more on market
segmentation in our learning module 4!
Principle #5: Value Exchange Process

Your goal as a marketer is to create a sustainable business and to establish a
relationship through your marketing with your customer base by providing
value for the purchases of your goods and services. If you do not have that
exchange, you won't make money, and your product or service will not be
successful. In an exchange process, an individual or a business satisfies a
need or want by offering some money for goods and services in an exchange.
By consistently delivering value to your customers, you will create a loyal and
nurturing relationship with them.
A simple example of an exchange relationship occurs when you go to a

restaurant and order your favourite meal, pay for it, and then eat it.
In another example, you check into a hotel, complete your stay, and pay for
your stay upon check-out.
Can you think of any more examples of marketing as an exchange process?

Share one example in the padlet below:
Principle #6: Product Life Cycle

Every product has a start, a growth, a stabilization period, and then a decline.
Regardless of the product, you do not want it to decline to the point of death. You are
hoping that after the decline, a new version of the cycle will begin. Keeping the product
life cycle in mind is important as a marketing professional so you can maximize your
product potential.
Typically, customers want an updated or newer version of a product. For example, car
companies will produce the newest version of a vehicle every year. This doesn't mean
that the previous year's car is no longer on the road. It means that a newer make and
model is available for customers to purchase.
The product life cycle consists of four different steps: introduction, growth, maturity, and
the decline
The Introduction
At this time, a product is in its beginning stages. You've come up with a
product, finished its development, and are putting it onto the market. It takes a
while after launching a product to gain traction. Ideally, because of all the
research you have done, you will become successful sooner rather than later.
This stage often takes plenty of money and time.
Growth
You've laid the foundation, made the connections, and put the money forward.
It is time to let it grow. This takes time and trust. If you have a successful
product, sales will begin to increase during this stage.
Maturity
This is often a vulnerable stage, especially if you are in a market that has
several offerings from competitors. In this stage, the product has been on the
market for quite a long time, and it may not be selling as well as it once was.
Be aware of this stage so you can begin thinking about what's next.
Decline
Once the customer no longer needs or wants your product, the decline stage
begins. The number of products being purchased lessens, and money is no
longer being made. Less product is manufactured to the point where it may be
taken off the market completely. Adjustments start being made to bring back
the customers by finding out what they need and want. During this time, many
products are updated to newer versions. Avoid ever being reactive; always
think ahead!
The Evolution of Marketing Practices

Technology significantly influences how marketing professionals connect and
communicate with a global audience, target market, and consumers to build
brand loyalty. Digital marketing has challenged traditional marketing such as
billboards and television commercials by providing new tools for companies
who communicate with consumers about their products, services, goods and
beliefs. Some of the recent and most popular approaches to digital marketing
include:
1. Content Marketing
2. Experiential Marketing
3. Mobile Marketing
4. Real Time Marketing
Digital marketing is a component of marketing that uses technologies such as

the Internet, mobile phones, and social media to promote products and
services.
Evolution of Marketing Practices in the Hospitality Industry

Over the past 20 years, digital marketing has created major transformation in
hospitality marketing and has disrupted traditional methods of marketing such
as advertising in magazines, newspapers, flyers and brochures. With the
progression of technology and social media platforms such as Facebook,
Instagram and LinkedIn, hotels, restaurants, events, airlines, destinations
have been able to reach a large population of potential guests.
Hospitality marketing professionals are able to choose the correct online tools
such as mobile marketing, social media marketing, pay per click advertising to
help cater to the ever-changing consumer behaviour.
• Content Marketing
Is creating and sharing expertise, information or branded content that is
designed to inform and engage your target market with tools such as research
papers, e-books, how to videos, webinars that can be found by people
searching the internet online.
• Mobile Marketing

• Social Media Marketing
• Real Time Marketing

MODULE 3
How Do We Define Our Industry?

What is the hospitality industry? How are hospitality sales and marketing
different from sales and marketing in other industries? Although, some
similarities are obvious between sales and marketing in the hospitality industry
and other industries, a few aspects make us a unique industry. Let's first look
at the different approaches to defining the hospitality industry!
You may find yourself explaining what our industry is with the following
approaches:
• It's the hospitality industry!

• It's the travel and tourism industry!
• It's the restaurant or food service industry!
• It's the lodging industry!
• It depends on where you are!
• It's not an industry at all!
The Supplier Sector

A supplier is a person or business that provides a product or service to
another person or organization that requires that product or service. In the
hospitality industry, examples of the supplier sector are known as the
following:
• Lodging
• Restaurant and Food service
• Cruise Line
• Car Rental
• Attraction and Event
• Casino and Gaming
• Also includes hospitality
The following are companies or organizations that fall into the supplier sector.
Investigate the websites provided, or feel free to research others that you
know can be identified in this sector.
• Hotels by Hilton
• Marriott Hotels & Resorts
• airbnb
• Disney Cruise Lines
• Norwegian Cruise Lines
• Enterprise
• Bellagio Las Vegas
• Macau Casinos
• Caesars Casino Windsor
• Canada's Wonderland
• Walt Disney World
The Carrier Sector

Any provider of mass transportation is referred to as a carrier in the hospitality
industry. An airline is an example of a carrier that is highly referenced when
referring to this sector. Common examples of carriers follow:
• Airline
• Railway
• Ferry
• Bus and Motorcoach
• Canal
The following are companies or organizations that fall into the carrier sector.
Investigate the websites provided or feel free to research others that you know
can be identified in this sector.
• Air Canada
• Via Rail
• Greyhound
• Emirates
• Marine Atlantic
The Travel Trade Intermediary Sector

This sector is one that connects people to one another, services, and the
other sectors.
The travel trade intermediary sector includes:
• Retail Travel Agency

• Tour Operator and Wholesaler
• Coprorate Travel
• Incentive Travel Planning
• Convention/Meeting planning
• Online Travel Company
• Global Distribution System (GDS)
The following companies or organizations fall into the travel trade intermediary
sector. Investigate the websites provided, or feel free to research others that
you know can be identified in this sector.
• MPI Academy
• Canadian Association of Tour Operators
• Tourism Industry Association of Ontario
• Trivago
• Jonview Canada
Destination Marketing Organization (DMO) Sectors

A destination marketing organization (DMO) promotes a location as an
attractive travel destination to increase its visitors. Destination marketing
organizations play a key role in the long-term development of a destination by
formulating an effective travel and tourism strategy. For the visitor, DMOs
serve as the gateway to a destination and offer the most current information
about a destination’s attractions. A DMO must have a strong online presence
through its website and ensure that information on a list of hotels, restaurants,
attractions, activities, calendar of events, and practical travel information are
all up to date, as these are all valuable pieces of information for visitors.
DMOs must also formulate marketing campaigns that appeal to all types of
travelers such as leisure travelers, business travelers, meetings, and events
travelers, among others. They represent the hotels, facilities, restaurants,
attractions, and other services that travelers would need for information..
The destination marketing organization sector includes:
• National, state, provincial, and territorial DMO

• City and county DMO
The following companies or organizations fall into the destination marketing

organization sector. Investigate the websites provided, or feel free to research
others that you know can be identified in this sector.
• Destination Canada
• Tourism Winnipeg
• Tourism Toronto
• Stratford Arts
• Regional Tourism Organization 4
The Systems Approach

The Systems Approach is an alternative way of looking at industries and organizations.
This approach understands that a collection of interrelated parts must work together to
achieve common objectives. Our industry consists of interrelated organizations with a
common purpose and goals. Each individual organization is also a system. In simple
terms, the systems approach understands that the “whole is greater than the sum of its
parts”.
A simple example of this occurs when you are baking a cake, if you were to lay out the
individual ingredients, you would not have a cake. Instead, you would have the
ingredients of a cake. However, if you were to mix each of these ingredients and bake
them, you would have a delicious whole cake.
In hospitality and tourism, a relationship exists between the hospitality and

tourism system and other economy sub-systems such as agencies, lodging,
traffic, road, railway, air traffic, maritime, agriculture, industry, civil
engineering, trade, and cultural-entertainment subsystems. Among
tourism subsystems are certain interdependent relationships which influence
one another. Understanding the inter-dependency of hospitality and tourism
and other different social subsystems is crucial because a minor change in
one of the social sub-systems affects the hospitality and tourism system and
industry.
For example, a global pandemic such as COVID-19 has affected the
hospitality and tourism system as travel has declined as a result of the health
crises. In some political disputes, terrorism attacks occur and can contribute to
a decline in travel to a particular area or even globally. On the other hand, a
new museum or attraction in a destination can increase travel.
Characteristics of Our Systems

The economy is an area in an environmental scan that marketers need to
consider. The ability of a consumer to purchase a product is what interests
marketers, and with the global economy being interconnected, this area has
become difficult for businesses to forecast.
Consumer confidence decreases when the economy takes a significant
downturn. Think about how Covid-19 has decreased the confidence and trust
of travelers staying in hotels or boarding a plane.
he decrease in consumer confidence results in delayed or canceled

purchases of unnecessary or higher-priced items. An economic downturn can
also lead to lower household income, which again can also affect consumers'
ability to desire or make purchases.
For example, if a person becomes unemployed, he or she will most likely

decide to prioritize paying bills instead of purchasing a new car.
The economy consists of Macroeconomics and Microeconomics. Let’s first
take a look at Macroeconomics!
Macroeconomics
Macroeconomics refers to the state of a country’s economy as a whole.
Marketers need to be aware of the strengths and weaknesses of a country’s
state of an economy so they can quickly react and pivot their strategies to any
changes that are influencing consumers.
Inflation
Recession
Interest Rates
Gross Domestic Product (GDP)
Unemployment Rate
Microeconomics
Micro is small, the individual organizations and pieces that contribute to the
larger picture. It refers to the supply and demand of goods and services and
how this is impacted by individual, household, and company decisions to
purchase. In marketing, you need to be conscious as how these areas
influence consumer buyer power.
Discretionary income
Gross Income
Disposable income
• Openness
• Complexity and Variety
• Responsiveness
• Competitiveness
• Interdependency
• Friction and Disharmony
Our industry and its participants are not rigid. The parts that make up the
system are not precisely organized in a definite way. Our system is dynamic
and constantly changing. New and creative ways of marketing our industry to
our target audience are constantly available.
Hospitality and Travel Marketing
Environment
As industries across the globe expand, marketing is more important than ever.
Competition and globalization for the hospitality customers' money are of major interest
to companies. Strategic approaches on how to set yourself apart from the competition
are not restricted to only the most recognized companies. All businesses can
win. Although growing technological platforms are making marketing easier and more
accessible to all, doing business is more complex than ever before.
Eight Specific Differences of Hospitality and Travel

Services
1. Shorter exposure to services
2. More emotional buying appeals
3. Greater importance on managing experience
4. Greater emphasis on stature and imagery
5. More variety and types of distribution channels
6. More dependence on complementary organizations
7. Easier copying of services
8. More emphasis on off-peak promotion
Five Unique Approaches Required
1. Use of more than the four Ps that we discussed in the Marketing Mix
2. Greater significance of word-of-mouth information
3. More use of emotional appeals in promotions
4. Greater difficulties with new-concept testing
5. Increased importance of relationships with complementary organizations
Three Unique Relationships Among Hospitality and Travel Organizations
1. Suppliers, carriers, travel trade intermediaries, and destination

marketing organizations (DMOs) represent the complementary
relationships that must exist for successful tourism in a particular place.
For example, in the city of Toronto, a destination marketing
organization is responsible for the promotion of tourism to a
destination. They can be known as Visitor and Convention Bureaus or
Tourism Boards.
2. The destination mix is everything that a city or town has to offer tourists.
3. The visitor—resident relationship is a love/hate one. The residents need
the revenue in their communities and businesses, but residents also
dislike the congestion and crowding that come along with increased
tourism.
The Hospitality and Travel Marketing

System Model
The Five Questions Every Organization Asks
• Where are we now?
• Where would we like to be?
• How do we get there?
• How do we make sure we get there?
• How do we know if we got there?
The Four Fundamentals of the Hospitality and Travel

Marketing System
Strategic Marketing Plan
strategy can be defined as a plan of action to achieve a goal or an
objective. It is an organization’s long term course of action designed to deliver
a unique customer experience while achieving its goals. Once a strategy of an
organization is defined by its business leaders, they then collaborate to
develop a marketing plan. Business leaders must generate ideas and goals
and write them down before making them into a reality. A marketing plan is
essential to the overall goal of an organization’s business plan to ensure.
Such a plan ensures that the right products are developed to meet the
customers' needs, and it determines the best way to promote the business
and decide where the product will be distributed. Advertising and
communications are important components of the marketing plan.
Organizations consistently ask themselves the following questions (which can
be difficult at times to answer):
• What business are we in?

• Who are our customers?
• What offerings should we provide to give our customers value?
Differences Between Product and Services Marketing
Service marketing is based on a recognition of the uniqueness of all services.
This branch of marketing specifically applies to the service
industries. Products are tangible, so they are physical: you can touch, see,
feel, and smell them; however, services are intangible. Often part of the
challenge of marketing services is creating tangible elements that connect the
consumer to the service brand.
Products Services
• Products tend to fill a need or want • Marketing services is more often about building
for the customer. When you buy a relationships and trust. When you leave your
car, you leave with the car and doctor’s office, you might not have anything to
continue to see it and use it. take away from the transaction.
• Physical products usually come in • Services typically do not offer multiple

many formulations. Clothes come in formulations. A doctor’s visit is a doctor’s visit,
different styles, colors, sizes. Dog whether you are going for tennis elbow or
food comes in different ingredient diabetes. (You might choose different service
combinations. providers, but the basic elements will be the
same.)
• Easier for consumers to evaluate the • Consumers find it difficult to evaluate the quality
quality of a product purchase. If you of the service received. Did your lawyer draw up a
buy an anti-dandruff shampoo and good divorce for you? You might not know until
you have less dandruff, it works. some time after the divorce has been granted.
• Easier to return a product. • The consumer cannot easily return a service

because it is consumed as it is offered.
• Products have a longer life. If I put a • Every day that a service is offered and not
box of cookies on the shelf and consumed is lost forever. If I don’t sell my hotel
don’t sell it today, I can still sell it for room tonight, I cannot ever sell it – that
some period of time beyond today. opportunity is gone forever.
Understanding Customer Behaviour

Learning and understanding how potential customers behave is key to the
success of any business. Prior to making a purchase, people often identify a
need and do research for additional information. They use the information to
compare and evaluate alternatives to address their need. Once they have
made a decision on how to address their need, they proceed to make their
purchase.
With technology rapidly advancing, consumers can make purchasing
decisions quickly and have increased access to make their purchases. Making
purchases online can also increase consumer spending. For example, TD
Bank introduced online banking and consulting for their consumers after
identifying a need that their consumers wanted: they wanted their banking
easily accessible online and didn’t want to wait in the long line-ups at their
branches.
Services Versus Goods Marketing

In the hospitality industry, we sell both goods and services. Six key differences exists
between marketing services and goods and products. Let’s look at each difference in
detail.
• Tangible vs. Intangible

Tangible refers to products that are physical, meaning you can touch, smell,
taste and see the product. Services are examples of intangible products that
you are not able to see, touch, smell, or taste. You must experience the
service or product. Marketers have to be creative in order to connect their
customer with intangible product. Hotels are a great example of intangible
products.
• Need vs. Relationship

Products tend to fill a need or want for the customer. Marketing services is
more often about building relationships and trust. When you buy a car, you
leave with the car and continue to see it and use it. When you leave your
doctor’s office, you might not have anything to take away from the transaction.
• One vs. Many

Physical products usually come in many formulations. Clothes come in
different styles, colours, sizes. Dog food comes in different ingredient
combinations. Services typically do not offer multiple formulations. A doctor’s
visit is a doctor’s visit, whether you are going for tennis elbow or diabetes.
(You might choose different service providers, but the basic elements will be
the same.)
• Comparing Quality
It is much harder for consumers to evaluate the quality of the service received
than the quality of a product purchase. If you buy an anti-dandruff shampoo
and you have less dandruff, it works. But did your lawyer draw up a good
divorce for you? You might not know until you get further in the proceedings.
• Returns
It is much easier to return a product than a service, because a service is
consumed as it is offered. It can be done, but it is usually much harder for the
consumer.
• Lifespan
Every day that a service is offered and not consumed it is lost forever. If I
don’t sell my hotel room tonight, I cannot ever sell it—it is gone forever.
Products on the other hand have a longer life. If I put a box of cookies on the
shelf and don’t sell it today, I can still sell it for some period of time beyond
today.
Six Contextual Differences
Keep in mind that circumstances will vary contextually when marketing goods
and services.
1. Narrow definition of marketing

2. Lack of appreciation of marketing skills
3. Different organizational structures
4. Lack of data on competitors' performance
5. Impact of government regulation
6. Constraints and opportunities for non-profits
• Intangibility
• Production Methods
• Perishable
• Distribution Channels
• Cost Determination
• Relationship of services to provider
Everything starts with the plan! Essentially a marketing plan is created to help
a company align our strategies to our goals and objectives. The short
term or tactical plans, and long term or strategic plans depend on the bigger
objectives that the company has and how they plan to achieve them.
Strategic marketing plans are written plans for marketing a hospitality and
travel organization covering a period of three to five years in the future.
Tactical marketing plans are written, short-term plans for a period of two
years or less. They detail how a hospitality or travel organization will use its
marketing mix to achieve its marketing objectives.
Let’s explore the elements that make up a marketing plan:
All organizations should have a strategic direction and plan as to what they
hope to achieve and how they plan to achieve it. A strategic approach to
creating a marketing plan is required to provide an organization or a road map
for the organization’s direction and how to get there! A marketing plan is a
formal business document that outlines the goals, objectives, and action-
oriented activities of an organization.
Let’s explore each step deeper on creating an effective strategic marketing

plan:
PreviousNext
1. Determine Your Marketing Strategy
An effective marketing strategy states your business goals and objectives,
products, and services. To develop your marketing strategy, you will first need
to identify what your business goals are. These may include:
a. Increasing the awareness of your products and services

b. Increasing market share from your competitors
c. Reaching a new market segment
Marketing goals should be written in the format of the SMART objectives

format to determine what your company needs to do to be profitable:
• Specific – Clearly state what your objective is

• Measurable – Set tangible measures so you can measure results
• Achievable – Objectives should be achievable and within budgets
• Relevant – Objectives should be set that are going to help you improve
particular aspects of your business
• Time-bound – Objectives should be set so you can achieve them within
the time you need them
MODULE 4
Why Consumer Behaviour Is Important

Why do you choose one restaurant or coffee shop over others? What are the
reasons that influence those decisions? We will work through these questions
in this module and connect our discoveries through the lens of a consumer.
We will then shift into the role of a marketer to determine how a particular
product or service is marketed to you.
Golden Circle Theory

Simon Sinek’s Golden Circle theory on how successful organizations communicate
describes why Apple’s marketing communication resonates with its target audience.
The core concept of the Golden Circle theory is:
People don't buy what you do, they buy WHY you do it.Simon Sinek
Shared Beliefs
Apple’s method of communicating provides consumers with trust, confidence, and a set
of shared beliefs that inspire people to make a purchase from the company. The how
refers to the actions a company takes to bring the beliefs into reality. The what are the
resulting actions, such as the services, products, culture, marketing, and employees.
As a result of Apple's marketing communication strategies, consumers have confidence

that they are purchasing a good product whether it is a Mac, an iPhone, an iPad, an
iPod, or iTunes software. The shared beliefs between Apple and consumers, along with
positive product and service experiences, are critical in establishing the brand in the
mind of the consumer.
Persuasion and Influence

Marketing professionals spend a lot of time and efforts to convincing potential
customers to invest in their organization’s product or service. One key component of
marketing and selling is understanding how to effectively use the acts
of persuasion1 and influence2. Persuasion and influence are important in marketing as
it helps marketing professionals to change the preconceived beliefs and opinions of
individuals about their organization’s products and services and motivates them to buy.
Many organizations use social media as one of their platforms on which to market their
brands, products, or services. The term "influencer" is often used to describe someone
who has an influence over others. What makes a person an influencer?
The next two videos provide some more insight into what persuading and influencing
mean and how you can effectively and ethically use these skills to convince a person to
buy your product over a competing product.
Buying Behaviour: Personal Factors

To understand customer behaviours, we need to understand what makes a
person's psychology. We must understand how they buy, what drives their
decision-making, and why they finally choose the products they do. First, we
will break apart the personal factors, the internal things that drive us. Six
personal factors can affect how an individual customer chooses a product to
purchase.
• Needs, Wants, and Motivation

• Learning
• Perception
• Personality
• Lifestyle
• Self-Concept
Needs, Wants, and Motivation

If you master needs, wants, and motivation, it helps you understand all the
other personal factors. A need is simply something you to survive. A want is
something that you desire. The most important word is motivation. When you
are promoting something or trying to achieve a goal such as trying to
encourage a customer to purchase your product over another, you must
understand what is motivating the potential customer. This video gives a
broad explanation of needs versus wants.
More on Needs Theory

You may already be familiar with Maslow's Hierarchy of Needs. Maslow's
theory is a concept that branches to many disciplines including Marketing.
Maslow's theory plays a large role in the personal factor of needs, wants, and
motivation, so it important to pay particular attention to it.
Let's take a closer look into the explanation of Needs Theory.
Learning (Education)
How you buy can be determined by the knowledge you have. It can be
determined by the formal or informal education you have that might craft your
reasoning and rationale when you decide to purchase. The way that you learn
and receive information can also have an impact. Some people are visual
learners who like to view things; others are more tangible and like to feel and
manipulate. Understanding these components of learning will allow you to
look at your customers and target how they will best receive the information
you are including about your product.
product.
Lifestyle
When we discuss lifestyle, we are referring to the daily events in an
individual's life: their likes and dislikes, the way that they want to be perceived,
and by what standards they live their lives.
According to Rona Ostrow and Sweetman R. Smith:
Lifestyle is a distinctive mode of behaviour centred around activities, interests, opinions,

attitudes and demographic characteristics distinguishing one segment of a population from
another. A consumer’s lifestyle is seen as the sum of his interactions with his environment.
Lifestyle studies are a component of the broader behavioral concept called psychographics.
What helps you decide on a particular product? If the product matches your
lifestyle ideals, you are likely to buy it rather than other products.
When marketers identify the lifestyles of their consumers on the basis of the
things they like to do, how they like to spend their leisure time, and how they
choose to spend their disposable income, they are able to create marketing
strategies that are more appealing through advertisements and
communications.
Self-Concept
Self-concept can be defined as the various views we have and think about
ourselves and our self-image. In marketing, self-concept relates to how
consumers want others to see them and includes attributes such as
personality, abilities, occupation, and the various personal and professional
roles the consumer takes on. Consumers use products and brands to support
their self-concepts and as a significant way to reflect and shape their
identities. When consumers or prospects identify with a product as part of
their self-concepts, emotional connections are created.
How Does Self-Concept Affect Buying?

A savvy marketer taps into the self-concepts of their prospects or consumers
through market research to identify how they see themselves. In this way,
marketers can position their products to support customers' self-concepts.
Do they feel successful, or like failures? Are they more focused on parenting,
career, or romance? Avon's "Perfectly me" campaign uses customers' self-
concept as a marketing tool. Watch how the beauty giant Avon, re-imagined
their brand using "Perfectly me" to tap into their consumers' self-concept.
Personal Factors Continued

Perception
Copyright
Holiday Inn Logo by Kashmiri is licensed under Wikimedia Commons.
Perception in marketing is described as a process by which a consumer
identifies, organizes, and interprets information to create an impression of the
brand’s product or services. Perceptions that consumers have of a brand, its
values and product and services play an important role when a consumer
makes purchases. Take a look at how Holiday Inn reinvented its perception of
its brand to consumers and potential customers:
Holiday Inn Reintroduces Itself to America
How did Holiday Inn communicate with its consumers to bring awareness to
the “perception” of their brand or destination?
What about Tim Hortons/Four Seasons or Nike?
Personality
A personality can be defined as a combination of characteristics and qualities
that form a pattern of thoughts, feelings, behaviors that make a person
unique. Different personality styles and types will align with and influence what
an individual is hoping to buy.
Marketers need to understand which personality traits influence their

consumer purchases so they can create better matches for products, services
or experiences. A business can tailor its communication and marketing
towards specific personality traits.
.
Let’s see how Coca-Cola uses personality marketing to effectively influence
its consumer target market.
With a loud and vibrant logo, a good slogan (‘Delicious and Refreshing’,
‘Always Coca-Cola’, ‘Taste the Feeling’ – the list goes on!) and a number of
successful campaigns, Coca-Cola is a prime example of a brand that markets
to its consumers' personalities.
From the beginning, Coca-Cola has been associated with happiness and
excitement, with many consuming its products for the experience, rather than
the taste. People purchase bottles of Coke with their name on it (without even
consuming the product), TV viewers eagerly wait for the bright Christmas
advert during the festivities, and celebrity endorsements build an even
stronger bond with the general public.1
Buying Behaviour: Interpersonal Factors
Clothing Shopping is licensed under iStock.
In our daily lives we are influenced by a variety of people while making our purchase
decisions. A reference group includes individuals and groups who influence our
opinions, beliefs, and attitudes. These people often serve as our role models or
inspiration. Marketers view reference groups as important because they influence how
consumers interpret information and make buying decisions.
The two types of reference groups are primary and secondary.

Primary Groups
Copyright
Purchasing a Vehicle is licensed under iStock.
Primary groups are made up of people you meet and associate with every
day: your family members, close friends, roommates, and neighbors, for
example. Your family, close friends and roommates may have a strong impact
and influence your purchasing decisions as they are significant to you, and
you trust their opinions. These groups of people influence consumer
behaviour by building aspirations for individuals and helping them purchase
products. For example, if you were confused about whether you should buy
an SUV or a sedan, your reference group (family, close friends etc.) would
provide honest feedback and advice to help and influence your purchasing
decision.
Secondary Groups
Secondary reference groups are made up of people you would interact with
less frequently and who are not as close to you. These people have less
influence and control over your purchasing decisions. These people could be
professionals, colleagues, an acquaintance that you meet, among others. An
individual would value or trust the opinion less with this reference group.
We all are influenced every day, directly or indirectly, by interpersonal factors.

Often these interpersonal factors involve people whom we look to for
guidance because we trust their opinions. This group can involve people we
know or do not know. Our online world provides us with a wide range of
options for people we can look to for opinions about products, venues,
locations, etc.
• Cultures and sub-cultures

• Reference groups
• Social classes
• Opinion leaders
Cultures and Sub-Cultures

This involves a combination of the beliefs, values, attitudes, habits, traditions,
customs and forms of behaviour we share with a group of people. This
combination of factors is learned through community and family and is
typically the broadest social group to which customers belong. Culture affects
society and dictates acceptable behaviours, language, and movement. The
many factors that are involved in cultures and sub-cultures are always
changing.
A culture can be divided into a sub cultures that may involve an individual’s
race, religion and class. For example, a person can be a part of “Canadian”
culture but still belong to his or her own sub-culture based on a socio-
economic background.
Different cultures carry different values and will have different buying habits. A
marketer should consider a culture’s values, beliefs, and customs when
developing marketing strategies that target a specific culture.
The Customer Viewpoint

Understanding the customer's viewpoint involves three steps:
1. Perception
2. Selection
3. Closure
Look at these examples of perception versus reality.
• Example 1
Read the text out loud in this triangle.
You most likely said "a bird in the bush". However, if you look carefully again,
you will see that the word "the" is repeated twice.
• Example 2
You may not see it at first, however, in white writing you can see the word
“optical” and in the landscape image you can see the word “illusion”.
• Example 3
What do you see in this picture? A young lady or an old lady?

Key things happen in each of these steps that take customers from thinking
and viewing your product, to listening, researching, and understanding what
they interpret as your product and what it represents for them, and whether
they buy the product.
Before reflecting on the customer viewpoint, understanding the difference

between perception and reality and knowing how critical it is to know the
difference are important. In the world of business and marketing, knowing
such differences can make a significant impact on whether a person chooses
to complete a purchase with you or with someone else.
Mind the Gap Between Perception and Reality
• Perception
Customers see things the way THEY want to see them and according to their
viewpoint. This can conflict with the reality of an offer or product actualities.
This first video is not from a marketing specific standpoint but highlights some
key thoughts that you can use as you identify your goals in the marketing
industry. The second video delves further into what perception is.
You will be taken to the LinkedIn Learning portal where you will need to sign
in. Then search for the video titled Marketing Foundations: Your Perception.
• Selection
Selective retention occurs when customers choose to retain the information
that supports their onion, beliefs, and attitudes. You can present all of the
value and characteristics, benefits, etc. of a product; however customers will
retain only part of what you're presenting because of their personal opinions,
beliefs, and attitudes. Your goal is close that gap and for the customer to
retain more.
Billboard Advertisement is licensed under iStock.

Think about it, we are being influenced constantly. One way this occurs is
from advertisements. But how much information from advertisements do we
retain? If you're driving by a bus stand and there is an ad, how much did you
see? Some people will be able to remember many components of the ad
while others might only be able to remember an image. There's a few things to
keep in mind. Sometimes what we retain is based off of our interests and
sometimes retention is based off of something being basic and easy to
understand, something we need or want, or something that we feel strongly
about.
Behaviour of Organizational Customers
B2B Marketing
Individual consumers are not the only buyers in a market. Companies and other
organizations also need goods and services to operate, run their businesses, and
create the offerings they provide to one another and to consumers. These
organizations, which include producers, resellers, government and non-profit groups,
buy a huge variety of products including equipment, raw materials, finished goods,
labour, and other services.
Business to Business Marketing (B2B) is the practice of individuals or organizations

(commercial businesses, associations, government bodies) creating marketing
strategies or efforts that communicate the value and benefits of their product or services
to individuals who are buying on behalf of the organizations they represent.
A Procurement Manager has a mid or senior level position in a company and is

responsible for ensuring that a company has a clear strategy when purchasing goods
and services. This position also helps move the decision of the organization’s decision-
making process and to negotiate terms that have value added with cost savings. A
procurement manager employed for Loblaw's Companies Ltd. would negotiate supplier
contracts on behalf of the company. An example of a type of supplier for the company
may be a hotel chain that supplies guestroom accommodations for the company for
their business travelers. Once a contract has been signed with the hotel supplier, the
Procurement Manager would create policies and guidelines to ensure their business
travelers stay at the agreed hotel chain for their accommodations when they are
traveling.
B2B Marketing Strategies
B2B marketing is more of a complex process in which effective marketers need to be
aware of the organizational buyer’s journey. This involves the following stages:
Problem Recognized When an individual in an organization recognizes a problem or need, the

process of identifying a good or service to provide a solution begins.
Need Description Once an organization identifies a problem or s need exists, the next
step is for the buyers to have a discussion with their team mates who
will also be a part of the decision-making process. The discussion
would be to ensure that everyone understands the problem or need and
evaluate possible solutions. From a marketing perspective, this is an
opportunity to influence the purchasing decision at this stage by
providing the organization information on the solutions your company
can offer.
Product Specification Any technical specifications that are required to develop the specific
product needed by the organization are developed during this stage by
the Engineer department. Typically, an Engineer department will
create multiple alternatives that meet the specific needs of the

organization.
Supplier Search During this stage, the organizational buyer now conducts the research
into various suppliers (also known as vendors) who are most
appropriate to ensure that they can provide a solution for the
organization’s need or problem. Internet research plays a significant
role during this process, as the Organizational buyer will read through
many product, service, and company reviews. They will also consider
Opinion leaders' feedback, along with their colleagues's comments.
Marketers can engage with potential buyers during this stage by

ensuring they have clear, up-to-date information on their websites and
social media channels about their products and services. Marketers
can also work with opinion leaders to increase the credibility of their
information or publish testimonials about customers who have been
using their products or services.
RFP (Request for Sent out to qualified venues (suppliers) to request for a proposal to solve
Proposal) the organization’s problem. Suppliers include hotel venues or banquet
venues that are within walking distance to a hotel for guestrooms).
Proposal Solicitation Once the buyer has identified qualified suppliers, the suppliers are
then invited to submit a proposal. A proposal is a formally written
document in which a supplier addresses the buyer’s needs, product
specifications, timing, and pricing in detail. A well thought-out
proposal is similar to a marketing strategy that targets a consumer.
Supplier Selection During this stage, the organizational buyer evaluates all of the
proposals that were submitted by suppliers. A thorough review of each
of the proposals and further research are completed on each supplier,
their reputation, capabilities, warranties, etc. The proposals will be
reviewed, and many decision makers will be involved in the
purchasing process. The criteria evaluated by each decision maker
assist in short-listing the proposals. The suppliers are then invited to
meet with the organizational buyers to further discuss their proposal,
and address any concerns, questions, or gaps. This may also be the
time when buyers try to negotiate advantageous terms with the
supplier.
Order-Routine At this point, the buyer has selected the supplier and creates the final
Specification offer in collaboration with the supplier. During this process all details
are outlined in an agreement.
Pre- Before actually consuming the services, certain things are required before
Consumption Services the main group arrives, among them, booking service or brochure
distribution, for example
Consumption Event or meeting is held.
Performance Review The organizational buyer will have an opportunity to share feedback
on performance with the supplier. This allows both organizations to
decide how they will proceed and which improvements or efficiencies
can be made. From a marketer’s perspective, this stage defines how
well the product or service met the needs of the consumer and where
to make improvements to strengthen the relationship between the
supplier and buyer.
Look at an example which outlines the organization buyer's stages of buying:
You are an Event Planner working for XYZ Corporation and planning a client
appreciation dinner for 400 people during your annual conference.
Problem Recognized Your business needs a venue in which to host a client appreciation dinner
for an annual conference.
Need Description and You will need a banquet space that hosts up to 400 guests for this dinner,
Product Specifications audio visual needs such as a stage, screens, podium and mic, as well as
guestrooms for overnight stays.
Supplier Search Who can offer what we need?
RFP (Request for Sent out to qualified venues (suppliers) to request for a proposal to solve
Proposal) the organization’s problem. Suppliers include hotel venues and banquet
venues that are within walking distance to a hotel for guestrooms.
Proposal Solicitation We have what you need to solve your problem. Goes back to the company
seeking solutions.
Supplier Selection Criteria for supplier selection created by organization seeking solutions.
Then the selection is made.
Order-Routine Final negotiations on price and space. Agreement is drawn up.

Specification
Consumption Event is held.
Performance Review How did it go? What was the satisfaction level?
Who Are the Organizational Buyers?

Unlike an individual consumer, organizational buyers have various objectives and
policies to meet that place unique constraints on how buying decisions can be made.
More than one individual will be involved in the decision-making process. Depending on
the type of purchase being made, multiple decision makers within the organization
would typically be part of the approval process. Organizational buyers also make
purchases on a larger scale than individual consumers do.
Business to Business (B2B) vs. Business to Consumer

(B2C)
What is the difference between Business to Business Marketing (B2B) vs. Business to
Consumer Marketing (B2C)?
B2B Marketing B2C Marketing

Goal Customers are focused more on goals and Customers are looking for deals and
ROI (return on investment) want to be entertained (This means
the marketing should be more
creative and enjoyable)
Buyer Customers are motivated by logic and Customers are motivated by
Motivation financial incentive emotion
Drivers Customers want to be educated Customers do not necessarily need
to be educated to make a purchasing
decision
Purchase Customers prefer to work with a sales Customers prefer to make the
Process professional or an account manager purchase directly
People Customers often have to consult with other Customers rarely need to consult
Involved in decision makers in their organizations with another to make a purchasing
Purchase before making a purchasing decision decision
Purchase Customers make decisions based on long- Customers are not always looking
Purpose term solutions. This can lead to long-term for long-term solutions or
contracts, longer sales cycles and longer relationships
relationships with the company
Organizational buyers make purchases on a larger scale than consumers do.
An effective marketer who is doing B2B marketing needs to be aware of the buying
process for the organization. The marketer must know:
1. The buying process?

2. Who is involved in the buying process?
3. Which criteria will be used to evaluate prospective suppliers?
4. Which level of influence does each person in the decision-making process have?
5. Who makes the final decision to buy?
Although the answers for each organization may be unique to these questions,
marketers should have a strong knowledge of their target consumers and be able to
identify commonalities so they can create significant marketing strategies geared
towards the different decision makers involved in the buying process.
A technology company that is trying to sell a travel and expense system to another
company, should expect that multiple decision makers will be in different departments in
the company and will be involved in the final purchase.
Marketers should focus on the decision makers in the company who are concerned with
the travel and expense policies—in this case—the Procurement department and the HR
department. Then, marketers create their marketing activities and focus on educating
the other decision makers in the group by acquainting them with their product to help
them make a final decision.
Module 5
Reflection Moment
Let's review what we have learned and take a moment to reflect on the following
questions from Module 4's material.
Are you able to clearly answer each question? If you're having difficulties or unclear
about concepts, please reach out to me or a classmate to gain clarity.
• What motivates customers to buy?

• Describe each of interpersonal factors that affect a consumer’s buying behavior.
• Provide an example of how a marketing professional needs to consider each of
the interpersonal factors in a marketing strategy.
• Explain the purpose of Market Segmentation and the steps in identifying a target market.
• What are the marketing concepts (steps) of Perception, Retention, Selection.
• Describe three differences between B2B Marketing and B2C Marketing?
What Is the Purpose of Market

Segmentation and Target Marketing?
Every time you see or hear an advertisement, it has been carefully
constructed. Market segmentation identifies the right audience for your
product. The right audience, who is going to pay the price that you want,
influences others by promoting the product for you and helps others
understand the product's value and benefits. Market segmentation is also the
division of the overall market for a product or service, into smaller groups of
people who have common characteristics. This is commonly referred to as
segmenting the market.
Segmentation helps marketers answer fundamental questions such as:
• Who is the target audience?

• Why should we be marketing to this particular target audience?
• How can I reach this target audience most effectively?
Reasons for Market Segmentation

Trying to appeal to all potential customers is usually wasteful. Market
segmentation focuses effort and marketing dollars most effectively. Hospitality
and Travel markets are becoming increasingly segmented.
Marketing professionals use market segmentation analysis to provide them

with helpful information about whom their prospective buyers are, identify any
gaps in the market that exist, and uncover where future opportunities exist. It
also helps them make decisions on where and how to focus their marketing
efforts to create marketing activities that are succinct and focused on their
buyers.
The process of market segmentation is dividing up buyers into distinct and

measurable groups who share similar wants and needs. Once the different
segments are identified, marketers determine which target segments to focus
on to support the growth of their corporate strategy.
In the coffee market, Nescafé considers the lifestyle and preferences of their
customers and markets many of their products to meet the needs of their
customers. One of their market segments are the at-home coffee makers who
have a choice of ground coffee, instant coffee, coffee beverage mixes, and
coffee pods that can be brewed in the Tassimo and Keurig coffee makers.
To maximize profits, a company may operate in various segments. A

successful segmentation strategy allows a business to control marketing
costs, allowing it to make profits. The business may also be able to develop
products for many different segments. For example, PepsiCo is a beverage
company with highly recognized products:
• Soft Drink Segment

PepsiCola, Root Beer, and Mountain Dew in the soft drink segment.
• Water Segment
Aquafina in the water segment.
• Juice Segment
Tropicana, Dole, and Ocean Spray in the juice segment.
However, a company needs to be able to keep appraised of the shifting trends

of their market segmentation and the occurring cycles in the economy to
ensure that they do not experience a loss of profits or sales. For example,
consumers are more health conscious today and want to enjoy a beverage
that is less sugary and less fizzy! PepsiCo responded to this trend by
introducing their juice segment to target this group of consumers.
Benefits of Market Segmentation

Marketing segmentation makes more effective use of marketing dollars and
provides a clearer understanding of the needs and wants of selected
customer groups. It allows great precision in selecting promotional vehicles,
more effective positions, and improved techniques.
This video provides details on why market segments are important.
How Do You Define a Market?

A market can be defined as a group of potential buyers with needs and wants.
They also have purchasing power to satisfy those needs and wants.
Individuals, businesses, groups, and organizations are all examples of the
types of buyers. The “total market” constitutes all potential buyers for a
product or service. Potential buyers share common characteristics needs and
wants that a product can address for them individually or in a business.
Market segmentation involves understanding not only how you are going to
segment the market but also who your audience is according to their needs
and wants. Which criteria does a marketer need to evaluate to determine if a
market exists?
Here are the steps in market market segmentation:
Step 1
Does a need or want for this product or service exist?
Marketers need to identify common interests and the future trends of a need
or want for a product or service before by analyzing which products and
services currently exist in a specific category. Market research studies and
data analytics can provide insight into consumer needs, wants, interests, and
purchase patterns. In some cases, other countries can provide interesting
ideas and insight into future interests and trends.
Step 2
Who will those consumers or organizations that purchase our product or
service be, and why?
A marketer should be always take the perspective of the consumer when

evaluating whom the target market should be and seek any gaps in the
market that point to similar interests and attitudes. During this step the target
market can easily be identified.
Step 3
Is the need or want sufficient enough for the marketer to be profitable?
What is the current size of the market? Is the market large enough to generate
forecasted sales? What is the expected growth of the market? Do we have the
budget to support marketing activities? These are questions a marketer will
ask to determine if the target market segment is feasible and worth targeting.
Step 4
Who will be our competition?
Is competition present currently in this segment or will it be in the near future.

A marketer must consider such ideas during this stage. The less competition
the better because this makes a market segment more enticing.
Step 5
Which marketing initiatives will be needed to reach the target market
segment?
Once a target market has been selected, a marketing plan needs to be

created, and specific activities must be implemented. The marketing plan will
include decisions that involve the 4 Ps of the marketing mix (product, price,
place and promotion) and must align with the target market’s needs and
wants.
Step 6
Monitoring and evaluation of success of marketing activities.
The marketing activities should be evaluated consistently to keep a track of

the effectiveness of the strategies. Marketers often work with financial
analysts to review the sales forecasts, costs, and profits their marketing
activities have generated or will continue to generate.
You will want your fair share of the market, but if others have a similar
product, you're all going to be competing for the same target audience. What
is going to set you apart so that they choose you over the competition? How
are you going to know how much time you can dedicate to each segment?
Watch this video to learn more about market segmentation.
Target Market Profiles and Segmentation
Target Market Profiles
To return to the PepsiCo example, a single product will only rarely be an ideal
fit for an entire market. In the same way, a printer or software may not be ideal
for all organizations. Successful marketers use segmentation to determine
which groups or segments within a market are best suited for their products or
services. A target market is the specific group or segment(s) of existing and
potential consumers to which marketers direct their marketing efforts.
Develop an accurate target market profile is critical to ensure the success of

all marketing initiatives as it is the basis for decisions about the product’s
marketing mix and the product's position in the market. Markets are
segmented by using the following variables:
1. Geographics
2. Demographics
3. Psychographics
4. Behaviouristics
If you recall, the variables listed above were mentioned in Module 2 as the
Core Principles of marketing.
Why is it important to identify these variables when describing a target

market?
If a family were looking to travel for vacation and were on a low-cost budget,
how would their income level or where they live be relevant to their purchasing
decision? Would the family choose a high end, five-star hotel or a mid-level
three-star hotel for their vacation accommodations? Although only a few
elements would be the main deciding factors as to where this family chooses
to stay during their vacation, marketers should take all variables into
consideration in the target market profile as this profile is used in other
marketing areas.
What is the relationship between marketing and sales? Once a target market
is identified, how does a sales professional use techniques to engage and
build one on one relationships with that target market to convert sales by
closing the business?
Often you will see positions in companies that combine these two functions by
bringing in sales and marketing directors because the two functions and
activities intertwine. The following video explains market segmentation and
how it connects to sales. As you watch the video, reflect on how marketing
and sales connect targeting a market to making a sale.
You will be taken to the LinkedIn Learning portal where you will need to sign
in. then search for the video titled Marketing Foundations: Customer
Segmentation.
Geographics and Demographics

Geographics
A geographic description of a target market examines where a target market lives: in a
country, province, region, or city. It also considers population density. Geographics are
also subdivided into urban, suburban, or rural markets. Geographic segments are the
easiest to identify and have large amounts of data available online via government
websites such as Statistics Canada. Marketing efforts and activities can be efficient and
clearly geared towards the target audience.
In Canada, we can be divided into five distinct areas: Maritimes, Quebec,

Ontario, the Prairies and British Columbia. We recognize four seasons of the
year.
Think about the four seasons of weather in Canada and how they can be used
for marketers to target their products and services to their specific target
market during Winter, Spring, Summer, and Fall. For instance, in Winter,
clothing companies will create warmer clothing for their consumers.
Different regions may need a unique marketing strategy based on the
population of the demographics.
The most obvious example would be marketing to the province of Quebec, a

French-speaking province. Coca-Cola used its marketing strategy to connect
with the people of Quebec, by recognizing their love of the Montreal
Canadiens' hockey.
Demographics
One of the simplest factors to determine is the demographics profile of a
target market.
Demographic segmentation consists of dividing the market into groups that

are based on demographic variables such as age, gender, marital status,
family size, income, occupation, education, religion, ethnicity, nationality, and
home ownership.
A company is able to locate the information for the demographic variables by

conducting market research and by using secondary resources such
as Statistics Canada. Let's take a look at an example of how demographic
segmentation plays an important role in target marketing for Centrum
Vitamins. Centrum markets many of its products based on age and gender
requirements. Take a look at some of the products that they offer.
performance, beauty, and antioxidant options.
Copyright
Centrum Multivitamin is licensed under Centrum.
Centrum Junior is focused on

children that are between the ages of 4 and 12.
Copyright
Centrum Junior is licensed under Centrum.
Dividing the target market into the various demographics helps a marketer
design an accurate marketing plan which, in turn, will produce effective
results. The products or services that interest a 13- year-old Caucasian boy
might not interest a 40-year-old Asian woman.
Age
Age is one of the common demographic segmentation elements. Every age
group has unique characteristics, needs, and requirements. For example, a
teenager may be more inclined towards shopping for the latest clothing
brands, whereas an adult, who has a family and home may satisfied with
wearing clothes that are more affordable and within a budget. Marketers can
create marketing strategies on the basis of these requirements to obtain
effective results.
Gender
Every gender has specific likes and dislikes - men, women and transgenders
all have unique characteristics. Men may not be interested in makeup as
much as women, therefore a company like Sephora would market and target
to more women to see impactful results. Take a look at Sephora’s Instagram
page.
Race and Ethnicity

Marketers need to be sensitive and adaptable when creating their marketing
strategies for a product or service that is particular to a race or ethnicity.
People belonging to certain races or ethnicities will have different food
preferences, skin care, hair care products, and many other different needs.
Family Income
Income would be the ability for an individual or family to be able to purchase
products or services at various costs. A family that has a lower yearly income,
would most likely be shopping for a vehicle that is affordable and suits their
budget. Car brands such as Toyota, Honda, GM would most likely be better
suited for their needs as opposed to Mercedes, Audi, or BMW.
Psychographics and Behaviouristics

Psychographics
Psychographic segmentation involves marketers understanding consumers’
interests, attitudes, opinions, values, and lifestyles. It also provides them
information of individual’s patterns of work, leisure, their habits, media usage
and technology preferences. When a marketer combines this information with
demographics they are able to receive a clearer picture of their target market
and are able to convert prospects to customers more effectively!
For example, if a marketer wants to target a segment based on lifestyle, they

would need to look at where individuals are in their life cycles – meaning,
targeting those that are still in school or those that are established in their
careers.
What Is the Difference Between Demographics and
Psychographics?
Copyright
Demographics vs. Psychographics is licensed under CB Insights.
This image illustrates the differences between demographics and
psychographics. Individuals who fall into the same demographic group don't
necessarily fall into the same psychographic group – meaning prospects
might have different habits, interests, preferences, and values that make them
unique in how marketers should target them.
Psychographics can be one of the most difficult variables for marketers to

identify, primary research can be conducted for marketers to further gather
insights on their consumers. Marketers can learn more about their
psychographic segmentation by:
1. Interviewing existing clients through surveys

2. Web analytics – look at previous special offers and existing content –
what has created action in individual to buy your products and services?
The perfume industry heavily relies on psychographics, for example, women

may prefer more light, flowery accents whereas men may prefer strong, spicy,
woody accents.
Behaviouristics
Behaviouristics examine how and why consumers buy and sell products. As
one of most important target market variables, it can direct the product’s
positioning in the market and can drive that main marketing communication
messages of the brand. Behaviouristics can also examine promotional ideas
and areas for new product development.
Behaviouristics looks at why consumers buy a product, the expected project

benefits, how a product is used, how frequently they buy, where they buy, and
whether consumers are brand loyal in their purchase behaviour. Marketers
use database marketing analytics to collect data on consumer purchases and
over time identify what motivates consumer purchases and loyal customers.
This research is also essential for marketers to identify why consumers
purchase the product, which benefits of the product consumers find most
important, and how consumers are using the product.
Coca Cola's Market Segmentation Success

This video is a clear example of how Coca Cola used a worldwide campaign to
reposition its brand and presence back to the attention of their target audience. When
PepsiCo started to win market share and increase its presence, Coca Cola had to find a
way to make themselves more prominent. Watch Coca Cola’s video campaign at least
twice, and reflect on the following:
• Why they chose to use this product?

• How did they choose to convey their message?
• What did they do to set themselves apart from the competitor?
• Who was their target audience?
• Did they have multiple segmentations?
• What percentage of resources do you think were allocated to the identified
segments?
Branding
What Is a Brand?
A brand can be defined as your identity, who you really are, mixed with your image, how
you want to be perceived.
The American Marketing Association defines a brand as a “name, term, sign, symbol or
design, or a combination of them, intended to identify the goods and services of one
seller and to differentiate them from those of other sellers.”
As mentioned in the video above on branding, a brand is about how people

feel when they see your logo or hear your company name. It is more than just
a logo, pretty colours, or a slogan.
Many professional marketers believe branding is the most powerful marketing

tool in the world of business and that it is critical to growth.
A strong brand tells a story about your company/product/service and is

consistent, compelling, and clear.
Building a brand identity requires a company to be strategic and to

differentiate itself from its competition.
How did you feel? Were you feeling full of greatness? That you can
achieve anything?
Copyright
Nike Logo by Jonteemil is licensed under Wikimedia Commons.
Nike has strategically built its brand to inspire a feeling of being cool and great
through the design of its products, the types of personalities they have who
endorse them, and the kind of ads the company uses. They are consistent in
ensuring that people who use Nike feel the potential for greatness, that they
feel that they can do it, and that the brand is more about the feeling of using
Nike than the product.
Which considerations go into creating an effective brand
strategy?
Below are some questions for an organization to ask itself on getting started
on creating a brand:
1. Why Are You in Business?

Your brand’s purpose should go beyond just making profits. It should answer
the question of why you are in business.
2. Who Will Buy What You Are Selling?

Identify your target audience; your business is not for everyone. Brands that
have been mentioned in this course already such as Starbucks, McDonald’s,
and Radisson Red Hotels all have a specific target market.
3. What Is Your Brand Story?

This is also where you tap into the emotional part of your target audience and
create a connection.
4. How Will My Brand Look?

When people see the golden arches, they automatically identify it with
McDonald’s. The starting points of creating your logo are choosing the
colours you will use, the type of font you will use, and your logo.

The Role of Marketing

Uploaded by

Copyright:

Available Formats

You might also like

The Role of Marketing

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Role of Marketing

Uploaded by

Copyright:

Available Formats

The Role of Marketing

Marketing is a continuous, sequential process through which management

The Role of Marketing

Marketing is responsible for a large part of an organization’s expenses and its

What Is the Difference Between Marketing and Selling?

Here is a comparison chart between the two:

Approach • Consists of a broader range of activities • Consists of selling the product or

Focus • Overall, to promote, price, and • To convert prospects (potential

Process • A series of steps to identify consumer • Move a prospect through the

Purpose • Marketing is used to reach consumers • Selling is the ultimate result of

Strategy • Marketing becomes an organization’s • Sales is the strategy of meeting

The Role of a Marketing Department in an Organization

Marketing departments work on budgets and are provided with a certain

The PRICE of Marketing

The Evolution of Marketing in Nonservice Industries

• Marketing Department (1950–1960)

1970–Present Societal Marketing

The PRICE of Marketing

A common strategic management process used by organizations is called the

• P: plan (where are we now?)

• What is the product or service?

Principle #2: Satisfying Customer Needs

Needs Versus WantsNeeds vs. Wants Video Transcript

Principle #3: Marketing Mix

• Marketing Strategy Factors (controllable)

What's the Difference?

Understanding the four Ps of the Marketing Mix is important, but it is also

Marketing Environment Factors (Uncontrollable)

As you most likely noticed, PESTEL is an acronym. Different resources

Some of the uncontrollable factors in the Marketing Environment include:

Principle #4: Market Segmentation

Why Is Market Segmentation Important for Marketers?

Principle #5: Value Exchange Process

A simple example of an exchange relationship occurs when you go to a

Can you think of any more examples of marketing as an exchange process?

Principle #6: Product Life Cycle

The Evolution of Marketing Practices

Digital marketing is a component of marketing that uses technologies such as

Evolution of Marketing Practices in the Hospitality Industry

Is creating and sharing expertise, information or branded content that is

Is creating and sharing expertise, information or branded content that is

How Do We Define Our Industry?

• It's the hospitality industry!

The Supplier Sector

The Carrier Sector

The Travel Trade Intermediary Sector

The travel trade intermediary sector includes:

• Retail Travel Agency

Destination Marketing Organization (DMO) Sectors

The destination marketing organization sector includes:

• National, state, provincial, and territorial DMO

The following companies or organizations fall into the destination marketing

The Systems Approach

In hospitality and tourism, a relationship exists between the hospitality and

Characteristics of Our Systems

he decrease in consumer confidence results in delayed or canceled

For example, if a person becomes unemployed, he or she will most likely

Eight Specific Differences of Hospitality and Travel