Chapter 1.

Introduction to Marketing
Service Marketing in Digital Age
Mr. Santin
 Service Marketing in Digital Age

This course offers a thorough

grounding in Services Marketing
with a particular focus on hotels
 Objectives of the course
1. Understand the main differences between
service and product marketing in the hospitality
industry
2. Examine & apply digital marketing principles
and models in shaping tourism and hospitality
service industry's marketing strategies
3. Integrate online and offline communications
4. Analyze the profile and needs of e-customers to
implement customer-driven communications
 Assessment
Assessment type Week Percentage

Progress Test 8 35%

Course work 14 20%

Final Exam 16-17 45%

 A little be about myself
 43 years old
 One degree and 2 Masters
 Nearly 20 years of experience in Marketing and
Business Development: Hotels, Technology,
Cosmetics, Tourism and Communication.
 Mail: carlos.santin@lesroches.es
 Concepts
 Marketing
 Marketing Process
 Marketing Mix
 Needs, Wants, Demands
 Market
 Marketing Orientations
 Marketing Manager’s Job
 Marketing
 Marketing – the process by which companies
create value for customers and society,
resulting in strong customer relationships that
capture value from the customers in return.
(Kotler, Bowen, Makens, & Baloglu, 2017, p.31)

What do you think of this definition?

 Marketing
 Marketing – the process by which companies
create value to CREATE A BOND WITH
customers and society, resulting in strong
customer relationships WHICH EASES SALES but
marketing does not make sales.
Marketing is how to manage profitable
customer relationship
https://www.youtube.com/watch?v=suRDUFpsHus
 Marketing

industrialprosperity365
 What Is Marketing?
Elements
 Understand the marketplace and customer
wants and needs
 Design a customer-driven marketing strategy
 Construct a marketing plan that delivers
superior value
 Build profitable relationships and create
customer satisfaction
 Capture value from customers to create profit
and customer equity
Marketing Process
 Understanding the Marketplace
and Customer Needs
Needs are states of deprivation:
 Physical—food, clothing, warmth, safety

 Social—belonging and affection

 Individual—knowledge and self-expression

 Wants are the form that needs take as they

are shaped by culture and individual
personality.
 Demands are wants backed by
buying power.
 Understanding the Marketplace
and Customer Needs
Process:
1. Marketing is based on needs existance
2. These needs become wants that are condionated by the
enviroment of the individual (culture, personality, etc)
3. These wants plus purchase power became DEMANDS

Marketing find out these needs, wants and

demands by doing market research and client
analysis
 Understanding the Marketplace
and Customer Needs

Transform into Stimulate

NEEDS WANTS DEMANDS

Spot Generate Buil profitable

opportunities stimulus relationships
 Understanding the Marketplace
and Customer Needs
 Market offerings are some combination of
products, services, information, or experiences
offered to a market to satisfy a need or want.

 Marketing myopia is focusing only on existing

wants and losing sight of underlying consumer
needs. Digital transformation changes
everything, no one is saved
Which one is better?
Why is better?
Is important digital revolution and new consumers?
 Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Satisfaction is derived from comparing performance with
expectations
Expectations
 Customers make based on values and satisfaction of
various market offerings
 Marketers

• Set the right level of expectations

• Not too high or too low
 Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction

Customers
Value&Satisfacttion

Marketing
1. Set the right levels of
expectations
2. Not to higth or low
 Designing a Customer-Driven
Marketing Strategy
Marketing Management

 Marketing management is the art and science of

choosing target markets and building profitable
relationships with them.
– What customers will we serve?
– How can we best serve these customers?
 Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
 Market segmentation: Dividing the markets into
segments of customers
 Target marketing: Which segments to go after

Choosing a Value Proposition

The value proposition is the set of benefits or values
a company promises to deliver to customers to
satisfy their needs.
 Marketing Mix
Product

Place

Marketing Mix

Price
n
Promotio
 Marketing Mix
The marketing mix is the set of tools (four Ps) the
company uses to implement its marketing strategy:
• Product – create a need-satisfying market offering
• Price – decide how much it will charge for the offer
• Promotion – communicate with target customers
about the offer and persuade them of its merits
• Place – decide how it will make the offer available
to target consumers
 Product
A product is anything that can be offered to satisfy a
need or a want

 What are some travel and tourism “products” that you

can list?
 Choose one to analyze product, place, promotion and
price
 Customer Relationship Management (CRM)
 Customer relationship management is the overall
process of building and maintaining profitable
customer relationships by delivering superior value
and satisfaction.
 Customer perceived value is the difference between
total customer value and total customer cost of a
market offering relative to those of competing offers.
 Customer satisfaction is the extent to which a
product’s perceived performance matches a buyer’s
expectations.
A Customer’s Perception of Value
 Capturing Value from Customers
Customer lifetime value is the value of the entire
stream of purchases that the customer would make
over a lifetime of patronage.
Building the right relationships with the right
customers involves treating customers as assets that
need to be managed and maximized.
• Different types of customers require different
relationship management strategies
• Build the right relationship with the right
customers
 Market
 A market is a set of actual and potential buyers
who might transact with a seller
 Marketing Orientations

Societal
Production Product Selling Marketing
Marketing
 Marketing Orientations
Production Concept
• Belief that consumers will favor products that are available
and highly affordable, and therefore management should
focus on production and distribution efficiency

Product Concept
• Belief that consumers will favor products that offer the
most in quality, performance, and innovative features

Selling Concept
• Belief that consumers will not buy enough of the
organization’s products unless the organization undertakes
a large selling and promotion effort
 Marketing Orientations

Marketing Concept
• Belief that achieving organizational goals depends on
determining the needs and wants of target markets and
delivering the desired satisfaction more effectively and
efficiently than competitors

Societal Marketing Concept (Marketing 3.0)

• Belief that marketers should approach consumers as
whole human beings with minds, hearts and spirits:
collaboration & participation, globalization, creative
society
Customer Driven vs. Customer
Driving Marketing
 Marketing Manager´s Job
To find, attract, keep and grow target customers by
creating, delivering, and communicating superior customer
value.
The New Digital Age
 Recent technology has had a major impact on the ways
marketers connect with and bring value to their
customers
 Market research
• Learning about and tracking customers
 Create new customized products
 Distribution
 Internet—creates marketplaces and Marketspaces

https://www.youtube.com/watch?v=KA5xao06u-o
 Digital Marketing Manager´s Job
To find, attract, keep and grow target customers by creating,
delivering, and communicating superior customer value and
creating omnichannel experiences.

Key concepts for the marketing manager nowadays:

 Knowledge in technology at different levels
 Marketing department is the most transversal part with in the
company
 Recycling himself continually to know marketing environment
 Digital Marketing or Digital Transformation Manager
 References
 Kotler, P., Bowen, J.T., Makens, J.C., & Baloglu, S. (2017).
Marketing for hospitality and tourism (7th ed.). Harlow, UK:
Pearson.
 Learning Theories. (2017). Maslow’s Hierarchy of Needs.
Retrieved from https://www.learning-theories.com/maslows-
hierarchy-of-needs.html