DTM 50153

TOURISM AND HOSPITALITY

MARKETING
CHAPTER 1:
INTRODUCTION MARKETING FOR HOSPITALITY AND
TOURISM
CLO1:
Apply knowledge and understanding of the concepts of marketing, marketing mix,
marketing information system, marketing research, marketing segmentation and
marketing positioning in tourism and hospitality (C3, PLO 2)

PLO 2:
Analyse issues and challenges in assisting and providing appropriate solution for
foodservice operation
 TOPIC REVIEW
1.1 Discuss foundation of marketing in tourism and hospitality industry
1.1.1 Explain the definition of marketing
1.1.2 Explain the concepts marketing in tourism and hospitality
a. Product and services
b. Value, satisfaction and quality
c. Exchange transaction and relationship
d. Marketing orientation
e. Needs, wants and demands
1.1.3 Explain the importance of marketing
1.1.4 Discuss the principles of marketing in tourism and hospitality
1.1.5 Describe the external environment for marketing in the hospitality and
tourism industry
1.1.1 – EXPLAIN THE MEANING OF MARKETING

A social and managerial process by which individuals and groups

obtain what they need and want through creating and exchanging
product and value with others.

by: Kotler, Bowen & Makens (2006)

1.1.1 – EXPLAIN THE MEANING OF MARKETING

A planning and implementation process of concepts, price, promotion

and idea distribution, product and services to form a transaction that
satisfy the individual and organization objectives.

by: American Marketing Association

 1.1.1 – EXPLAIN THE MEANING OF MARKETING

 Marketing is not just a selling process; neither specific to one activity only.
It contains all business activities. The result can be seen from the final
result, from the consumer perspective. The marketing responsibility must be
seen from all sides of business.

by: Peter F Drucker, 1954

Understanding the Marketplace
and Customer Needs
Value, satisfaction and
quality

Market Offerings Products

Core Marketing Concepts

Exchanges, Business
Customer needs,
Transactions and
wants, and demands
relationships

Markets
1.1.2 EXPLAIN THE CONCEPTS MARKETING IN
TOURISM AND HOSPITALITY
Need
- A human need is a state of felt deprivation.
Examples include the need for food, clothing, warmth and safety.
Wants
- Wants are how people communicate their needs. A hungry person
may want a hamburger, noodles, or cheese and bread.
Demands
- When backed by buying power, wants become demands.
 1.1.2 EXPLAIN THE CONCEPTS MARKETING IN
TOURISM AND HOSPITALITY

 Market

- is a set of actual potential buyers who might transact with a

seller
 A product

- is anything that can be offered to satisfy a need or a want

 1.1.2 EXPLAIN THE CONCEPTS MARKETING IN
TOURISM AND HOSPITALITY
 Exchange

- is the act of obtaining a desired object from someone by

offering something in return
 Business transaction
- the process of exchanging offer by marketer to consumer
 Relations Marketing
- Relationship is building strong economic relationships between
with social ties following through on promises
 1.1.2 EXPLAIN THE CONCEPTS MARKETING IN
TOURISM AND HOSPITALITY
Value, Satisfaction, and Quality
 Customer satisfaction
- is perceived value delivered relative to a buyer’s expectations
 Quality
- is the totality of features and characteristics of a product or service that
bear on its ability to satisfy customer needs
 1.1.2 EXPLAIN THE CONCEPTS MARKETING IN
TOURISM AND HOSPITALITY
Offer
- Refer to marketing mix includes product, pricing, distribution (place) and
promotion
Product Offer to be seen, tested and used for personal purpose,
household, reproduction or resale
Pricing Influence by costs, consumers and competitors
Distribution (Place) To facilitate the acquisition of the products by consumer

Promotion Used to inform, persuade and remind

 1.1.3 EXPLAIN THE IMPORTANCE OF MARKETING

1. Environment Analysis and Marketing Research- Monitor the external

factors (economics and competitors) and data collection to solve a marketing
specific issues.
2. Consumer Analysis- Investigate the consumer characteristics, their needs and
buying process.
3. Product planning (product service and ideas)- Product development and
improvement, product diversity, product placing, brand name and choice, to
end the production of certain product.
1.1.3 EXPLAIN THE IMPORTANCE OF MARKETING

4. Planning distribution- Create a networking, physical distribution,

inventory management, warehousing, transportation, product placing,
wholesaler and retailer.
5. Promotion planning- Combination of advertising, publicity, personal
sales, sales promotion, public relation and the other form of
communication.
6. Price planning- Determine the level of price strategy, buying roles, price
changing and the using of price as an active or passive factor.
1.1.3 EXPLAIN THE IMPORTANCE OF MARKETING

7. Social Responsibilities- Responsibility to offer a safe, ethical and useful

product, services and ideas to a consumer.
8. Marketing management- Marketing process (planning and
implementation) of marketing strategy, which are the product, price, place
and promotion through business transaction that can maximize consumer
satisfaction.
1.1.4 DISCUSS THE PRINCIPLES OF
MARKETING IN TOURISM AND
HOSPITALITY

Production Product Selling Marketing Societal

concept concept concept concept concept
 EXPLAIN MARKETING CONCEPT
1. PRODUCTION CONCEPT
 Consumers will favor products that are available & highly affordable.
 Therefore management should focus on improving production & distribution
efficiency.

2. PRODUCT CONCEPT
 Consumer will favor products that offer the most quality performance &
features.
 Organization should therefore put more energy on making continuous products
improvements.
 EXPLAIN MARKETING CONCEPT
3. SELLING CONCEPT
 Consumer will not buy the product, unless the entrepreneur takes a larger
scale selling & promotion effort.

4. MORDERN MARKETING CONCEPT

 The management goals depends on determining the needs & wants of
target markets and delivering the desired satisfactions more effectively &
efficiently than competitors can do.
EXPLAIN MARKETING CONCEPT

5. SOCIETAL MARKETING CONCEPT

 Organizational should determine the needs, wants and interests of
target markets & deliver the desired satisfaction more effectively and
efficiently.
 By this way we can maintain or improve the customers & social
needs.
1.1.5 DESCRIBE THE EXTERNAL ENVIRONMENT FOR
MARKETING IN THE HOSPITALITY AND TOURISM
INDUSTRY
a) Use of more than 4 Ps
b) Greater significance of word-of-mouth information
c) More use of emotional appeals in promotions
d) Greater difficulties with new-concept testing
e) Increased importance of relationships with complementary
organizations
1.1.5 DESCRIBE THE EXTERNAL ENVIRONMENT FOR
MARKETING IN THE HOSPITALITY AND TOURISM
INDUSTRY
a)Use of the more than 4 Ps
 There are 4Ps more in hospitality and travel industry ; People, Packaging, and
Programming, Partnership

b)Greater significance of word-of-mouth information

 The opportunities for customers to sample services prior to purchasing
them are limited in hospitality and travel industry. The rule is “ you
have to buy to try”.
1.1.5 DESCRIBE THE EXTERNAL ENVIRONMENT FOR
MARKETING IN THE HOSPITALITY AND TOURISM
INDUSTRY
c)More use of emotional appeals in promotions
 Organization must be given personalities with which customers can associate. For
example your resort becomes the “Friendly resorts” and so on.
d)Greater difficulties with new-concept testing
 Services can be copied more easily than products.

e)Increased importance of relationships with complementary

organizations
 The unique relationships among organizations in our industry that have a
significant impact on the marketing of hospitality and travel services.
In group you’re required to establish:

 Determine your product or service you want to sell

 create your business logo
 Descript your product or service in detail
 Identify your business location and address