Chapter Marketing for Hospitality and Tourism Introduction

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Chapter 1
Introduction
Marketing
for
Hospitality
and Tourism
Dr. John V. Padua

“Marketing is so basic that it cannot be considered a
separate function. It is the whole of business seen from
the point of view of its final result, that is, from the
customers point of view…Business success is not
determined by the producer, but by the customer.”
-Peter Drucker

Course Overview
1. Understand the hospitality and tourism
marketing process
2. Recognize developing hospitality and
tourism marketing strategies
3. Understand how to develop the hospitality
and tourism marketing mix
4. Comprehend managing hospitality and
tourism marketing

Chapter Objectives
1. Understand the relationships between the
world’s hospitality and travel industry
2. Define the role of marketing and discuss its
core concepts
3. Explain the relationship between customer
value satisfaction and quality

Chapter Objectives
4. Discuss how marketing managers go about
developing profitable customer relationships
5. Understand how the marketing concept calls
for a customer orientation

Customer Orientation
• The purpose of business is to
create and maintain satisfied,
profitable customers
• Put the customer first and reward
employees for serving customers
well

What is Marketing?
Marketing is a social and managerial
process by which individuals and groups
obtain what they need and want through
creating and exchanging products and
value with others

Marketing Manager
A person involved in marketing
analysis, planning, implementation,
and control activities

Core Marketing Concepts

Needs, Wants, and Demands
• A human need is a state of felt deprivation
• Wants are how people communicate their
needs
• When backed by buying power, wants
become demands

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?

Value, Satisfaction, and Quality
• Customer value is the difference between the
customer benefits from owning and/or using a
product and the costs of obtaining the product
• Customer satisfaction is perceived value
delivered relative to a buyer’s expectations
• Quality is the totality of features and
characteristics of a product or service that bear
on its ability to satisfy customer needs

Exchange, Transactions, and
Relationship Marketing
• Exchange is the act of obtaining a desired
object from someone by offering something in
return
• A transaction is marketing’s unit of
measurement and consists of a trade of values
between two parties
• Relationship marketing is building strong
economic relationships between with social ties
by following through on promises

Markets
A market is a set of actual and
potential buyers who might
transact with a seller

Marketing Management
Marketing management is the analysis,
planning, implementation, and control of
programs designed to create, build, and
maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives

Marketing Management
Philosophies
• Manufacturing
• Product
• Selling
• Marketing
• Societal Marketing

Manufacturing Concept
• Consumers favor available and highly
affordable products
• Management should improve production
and distribution systems
• However, don’t forget the customer!

Product Concept
• Consumers prefer existing products and
product forms
• Management’s job is to develop good
versions of these products
• Inward focused like the Manufacturing
Concept, so don’t forget your customers!

Selling Concept
• Consumers will not buy enough products
unless the company undertakes large
selling and promotion efforts
• Aim is to maximize sales without worrying
about customer satisfaction
• Fails to establish a long-term relationship
with customers

Market Concept
• Achieving organizational goals depends on
determining the needs and wants of target
markets and delivering desired satisfaction
better than competitors
• Creates long term customer relationships
• Frequently confused with “Selling Concept”

Marketing and Sales
Concepts Contrasted

Societal Marketing Concept
• Organization should determine the
needs, wants, and interests of target
markets and deliver the desired
satisfaction more effectively and
efficiently than competitors in a way that
maintains or improves the consumer’s
and society’s well-being

The Future of Marketing
• Rapid changes make yesterday’s
techniques out-of-date
• All company departments are becoming
involved in satisfying customers
• A focus on internal as well as external
marketing

Key Terms
• Create and maintain customers
• Demands
• Exchange
• Hospitality Industry

Key Terms
• Human need
• Human want
• Manufacturing Concept
• Market

Key Terms
• Marketing
• Marketing Concept
• Marketing Management
• Marketing Manger

Key Terms
• Product
• Product Concept
• Quality
• Relationship Marketing

Key Terms
• Selling Concept
• Societal Marketing Concept
• Transaction

Chapter Marketing for Hospitality and Tourism Introduction

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