Lodging Inductry

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CHAPTER 1

Introduction: Marketing for Hospitality and Tourism

CHAPTER OVERVIEW
This chapter begins by explaining the business philosophy of marketing. Marketing is not a function that is only carried out by the marketing department, but rather a way of doing business. The main focus of marketing is the customer; this customer orientation must be integrated throughout the organization.

Next is a discussion of how customer satisfaction leading to profits is the central goal of hospitality and tourism marketing. It is wise to assess the customer’s long-term value and take appropriate actions to ensure a customer’s long-term support.

Finally, the chapter introduces the various components of the marketing mix: promotion, product, price, and distribution. Distribution is sometimes called place and the marketing mix is called the 4 Ps. Marketing also includes research, information systems, and planning. If marketers do a good job of choosing the appropriate target markets and presenting an effective promotion mix, the result will be attractive products and satisfied customers. This would include identifying consumer needs, developing a good product, and pricing, distributing, and promoting it effectively. This chapter introduces all of these terms and gives an overview of their place in the marketing world.

CHAPTER OBJECTIVES
Students should be able to:
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. 4. Discuss how marketing managers go about developing profitable customer relationships. 5. Understand how the marketing concepts call for a customer orientation.

Supportive PowerPoint Slides: 1-1 to 1-5.

TEACHING SUGGESTIONS: Teaching suggestions are provided in two formats. The first format guides the instructor through the chapter objectives. The second format is a chapter outline and provides more detail than the chapter objective format.

OBJECTIVES:

Objective: 1. Understand the relationship between hospitality and travel industry. Recommended Ideas: The hospitality industry is one of the world’s largest industries. The hospitality and travel industry combine to form the foundation for tourism. The Hong Kong airport alone will eventually be able to handle 87 million visitors per year. All will be traveling to and from Hong Kong for business and personal reasons that will involve many hospitality related businesses worldwide. Examples: hotels, restaurants, timeshare, casinos, airlines, cruise lines, car rental.

Objective: 2. Define the role of marketing and discuss its core concepts. Recommended Ideas: Many students think of marketing as advertising or sales. At the start of the course it is important that marketing is presented as a way of doing business. Marketing is making business decisions with the customer in mind. It evolves from creating a customer service attitude among all employees. Thus, all managers need to understand marketing. It is not a function that can be left up to a few people in the marketing department. Getting this idea across can create interest in the class and is one of the keys to a successful course. Explain to the students that the marketing mix is composed of the marketing variables managers can control. They are called a mix because they must support each other.

The four-P framework calls upon markets to decide on the product’s features, set the price, decide how to distribute their product, and choose methods for promoting their product. Examples: Explain how room reservation or accounting departments are part of marketing. Use McDonald’s example to explain the 4-P framework. See “what is hospitality marketing”.

Supportive PowerPoint Slides: 1-1 to1-9.

Objective: 3. Explain the relationships between customer value, satisfaction, and quality....
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