This assignment is based on an analysis of Marketing activities and practices within hospitality industry. Main objective of this report is to evaluate how marketing division helps in building direct relationship with target customers. The analysis of this report determine:
- Evaluate the concept of marketing within service industry context.
- Identify the role of marketing mix within Marriott international.
- Discuss the uses of promotional mix for Marriott international.
- Determine the marketing cycle in the environment of service industry.
Marketing is important and play crucial role in business for its growth and development. When proper marketing plan is formed by company it will directly gives impact on sells of gods and services that help in generating more and more revenue (Bharwani and Jauhari, 2013). This entire assignment is based on hospitality industry which is wide sector and have to much growth compare to other. Main reason of growth in this is that now a days people love travelling as well spending their hard earned money in luxury and food items. Marriott Hotel is the company on which this report is based it is founded in 1927 and its headquarter is in Bethesda, Maryland, U.S. Below mention project explain marketing and its importance in hospitality industry. Apart from this marketing mix and its importance along with this policies and pricing strategies of Marriott Hotel is analysed. Although, when entire process of marketing is formed in proper manner than it gives positive results in business.
1.1concepts of marketing for a relevant services industry
Marketing is the techniques and tools through which an organisation provide information related to the products and services to customers. It help in growth and development of business by attracting more and more customers. Before planning the same proper research is conducted through which needs and wants of individual can be identified. Every organisation have their own marketing tools and strategies same as Marriott Hotel also have. Some tools that company can use for marketing purpose:-
- OTAs as the right distribution channel: This type of marketing tool help in providing information about goods and services price, discount packages, occasional and seasonal deals which is displayed on the OTA (online travel agency).
- Digital presence & Social Media: Website of organisation is social media tool which help in promotion and advertisement of goods and services. Along with this it give information to customers and they are free for asking any query (Brotherton, 2012). When customer visit website of Marriott Hotel they will get knowledge about them as well contact number also which is display on their website.
Marketing concept which can be used by Marriott Hotel are as follows:
- Selling Concept – This is major concept used by organisation with the motive of promotion of goods and services. It is applied for selling what company is producing rather than what market is waiting for. When season or peak time comes company can sell their holiday packages and more other. It is possible with the help of online travelling agency such as booking.com, lastminute.com and many more.
- Societal Concept – main and foremost work of enterprise is to identify needs and wants of customers for making them satisfied in better manner. This concept is using by Marriott Hotel for satisfying their guest or customers.
1.2 impact of the marketing environment on the industry
Marketing environment is important as well it play crucial role in development and growth of business. Along with this if it not properly implemented then give negative result in working of business (Chan and Guillet, 2011). Marriott is the hotel which is working in both micro and macro environment it is dynamic in nature or flexible. Thus, before preparing marketing strategy company have to properly identify internal and external factors. As well impact of marketing environment analysed with the help of PESTEL. Description is given below:-
- Political Factors – Every nation have their own legal rules and regulation which must be followed by company when they are expanding their business. Political factors involves tax policies, modification in policies related to hospitality sector when they get change Marriott have to alter their marketing strategy.
- Economical Factors – Economy is growing now a days because of huge competition and this pulling Marriott Hotel for expanding their business more and more. For success of business company can bring such products in market which is not high is price but giving same results.
- Social Factor – People love travelling and exploring new places this is the main reason of expanding business in Africa, Asia, Australia, Europe and America. Travelling in abroad is easy because of improving travelling facilities. Marriott is taking advantages of all these social factors.
- Technology Factor – In hospitality industry technology playing important role because with the help of this people can easily book their rooms, make payment online along with this it is helping in several other things also. Various technologies are using by the Marriott hotel which assisting in competing with the competitors or in the environment which is full of competition.
- Environmental Factors – Business environment is not constant when it change gives wide impact on profitability of the business (HeLi and Keung Lai, 2011). Factors involve in this are climate change, laws and legislation, weather, waste management and many more.
- Legal Factors – This involve several legal factors such as health and safety laws, employment laws, data protection, consumer protection and several other. All these terms such be kept in mind because every country don't have same rules and regulation and in such intellectual property rights of firm is not enough protection.
1.3 Relevance of customer market
In Hospitality industry customers are the key of success for business for their satisfaction Marriott is providing such services which help them in satisfying. Along with this customers are divided in different segment according to their age, preferences, need and wants as well several others. Guest In Marriott Hotel can be students, families, senior citizens and all these have different taste and needs. Several customers and their expectation is given as follows:-
- Students – Most of the students are not employed thus, they cannot spend huge amount in food and accommodation. So, Marriott have to provide these services to students which is affordable for them.
- Families – People who are coming with their families for lunch, dinner or stay they want proper safety and security. If there is no proper security then they not feel safe with their family because their can be any chance of loss.
- Senior citizens – They are 50 above in this age person want comfort and better facilities because they are mostly pensioners (Kandampully,Zhang and Bilgihan,2015). Although they are not able to do their work by themselves so for them comfort matters a lot.
1.4 Rational for developing different market segments
Market segment is that in which market is divide in small parts and customers involves in this have same taste, preferences and thoughts. This segments is formed after analysing needs and wants of guest because marketing strategy includes needs of every groups. Segmentation assist in easily identifying requirement of particular group then Marriott employees can easily work on it. Segmentation is done on the basis of :-
- Demographic: In the demographic segment customers are divided on the basis of gender, age, income size of family and occupation. So it is easy for marketer to identify their taste and preferences in easy manner (Law, Leung, Au and Lee, 2013). Because products can be offer only when marketer have knowledge about their customers.
- Geographical: This segment divides market on the basis of geography. It is important for marketers because people belonging from various regions can have different requirement. In this segment formation of group on the basis of states, cities, region as well in the same behaviour of customers are also included response, knowledge and attitude.
- Psychographic: Customers are divided in this segmentation according to their lifestyle, attitude and personality. Because all these factors directly shows purchasing habit of a particular customer. Every person purchase products and services as per their own living styles and several other things also.
- Behavioural: This segmentation is form of the basis of choice, behaviour, preferences, decision making and several other of target audience. Along with this customers are divided on the basis of the products and usage of it.
2.1 Importance of components of the marketing mix
Marketing Mix is also known as 4Ps of marketing which includes products, price, place and promotion. But in some situation it is also called as 7Ps process, people and physical evidence. Main work of the same is to deciding when they have to launch new product in market as well have to do some innovation in existing products. Importance of this in Marriott Hotel is given below:-
- Product: Company offering product in market must be attractive in packaging and design, quality, warranties and several others. Main motive of doing production is to satisfying needs and wants of customers.
- Price: Amount of goods and services paid by customer while purchasing it should be according to its quality and quantity (Leung, Bai and Stahura, 2015). This must be focused by Marriott Hotel.
- Place: This is related to the area in which company wants to start their business. It can be decided after examine market, targeting customers and place.
- Promotion: New product or innovation in the existing need several promotional tools and techniques for coming in the market. Promotion of goods and services can be done with the help of mouth publicity because it is also one of the tool but can be done by loyal customers only.
- Process: This is related to the procedure through which goods and services to be distributed in the market place.
- People: They are target audience of the Marriott Hotel to whom they want to sale their goods and services (Ong, 2012). People are important because if there is no demand for goods and services them to who organisation will sale their products.
- Physical Evidence: In hospitality industry mostly things have their physical evidence that can be related to customers, employees, operation management and several other.