Service Characteristics of Hospitality and Tourism Marketing

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PRICE of Marketing
Marketing is a continuous sequential process through which management in the hospitality industry Plans, Researches, Implements, Controls, and Evaluates activities designed to satisfy customer needs and wants.

P - Planning
R - Research
I - Implementation
C – Control
E – Evaluate

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Evolution of Marketing Eras
VS
Marketing Management Philosophies
* Production Orientation (1920-1930)
* Sales Orientation (1930 – 1950)
* Marketing Orientation (1950-1970)
* Societal Marketing (1070 – to present)
* On-Line Marketing (1995- to present)

* Production Orientation (1920-1930)
* The PO era was the first evolutionary stage in the development of marketing. It began with the “industrial revolution. * Sales Orientation (1930 – 1950)
* Gradually, technological advances in production and increased employee compensation changed the emphasis of marketing. Beginning 1930s, there was enough capacity to meet demand. As the competition intensified, the emphasis switched from production to selling. Customer’s needs and wants were still of secondary importance. Beating the competitions by outselling them was first priority. * Marketing Orientation (1950-1970)

* Marketing orientation era resulted even more intense competition and technological advances. Supply now exceeded demand. It was a result of greater management sophistication and the advancement of marketing as an academic discipline. * Organization began to realized that selling alone did not guarantee customer satisfaction and more sales. * Societal Marketing (1070 – to present)

* Organizations started to realize social responsibility in addition to their profit and customer-satisfaction objectives. * Ig. (a)Brewers & Distillers in hospitality industry : (setting limits) /advertisement to fight against * drunk driving , alcoholism and under-age driving,

* Cruise lines/ships – “Royal Caribbean International created its own environmental management plan “Save the Waves” – appointed environment officer develops measures aimed at reducing waste * On-Line Marketing (1995- to present)  

* Due to rapid adoption of digital technologies revolutionizes the use of internet as marketing tool. * Since 2005 – use of wireless internet in-flight, Japan Airlines first to pioneer this service in the sky. * Qantas announced in July 2007 that all its planes would be equipped/installed with wireless internet service

* Production /Manufacturing Orientation = Assumption: Customers will favor products/services that are available and inexpensive * Product Orientation - quality products – reasonably priced * Sales Orientation = Focus to get every possible sales, not worry about the satisfaction after the sale or the revenue contribution of the sale. * Marketing Orientation = main task is to determine needs, wants, preference of a target group of consumers / customers and to deliver the desired satisfaction. Marketing Concept: Customer is “King” Concept * Societal Marketing = Organizations started to realize social responsibility in addition to their profit and customer-satisfaction objectives.

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Unit II. Service Characteristics of Hospitality and Tourism Marketing 1. The Service Culture
2. Characteristics of Service Marketing
3. Management Strategies for Service Businesses

OBJECTIVES:
At the end of this unit, the student will be able to:
* Define what is service marketing
* Identify the characteristics of service marketing
* Enumerate strategies for service business
* Define strategic services in the hospitality industry

What is Service Marketing?
* Service Marketing – is a concept...
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