Now being marketing executive and with reference of the above case of McDonald’s, discuss the concept of marketing for a service industry (such as Restaurant or Hotel) with relevant examples and also mention its characteristics. (1.1) M1 1.1 Marketing
Marketing is the process to find out the needs, wants and the customers’ demands so that the customers will be satisfied after using that product. The process of discovering and translating consumer needs and wants into product and service specification, creating demand for these product and services, and then in turn expanding this demand.” It is the performance of those business activities that direct flow of goods and services from the producers to the consumers. (Hanson, 2010) 1.2 Marketing strategic
It is a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. (Aaker, 2009) In the above case study of McDonald’s we find out that the customer needs and what they want? Has been changes time to time .McDonald’s have been research and also focuses to make their product and company successful. McDonald’s has experimented with new restaurant concepts. Example MacAfee coffee shops has opened more than thousand places in over 34 countries. Some of the marketing concept for a service industry as given below:- 1.3 Core concept of marketing for a service industry:-
1.3.1 Needs, Wants and Demands
Human being has basic needs to alive. ex- food, clothing, warmth, and safety etc… such as in restaurant the customer needs is get a good and hygienic food in good and friendly environment.
Wants are how people communicate their needs. Example in restaurant the customers wants a genuine greeting, customer want a smiling face, customers want a good relationship with staffs etc…
People have almost unlimited wants, but limited resources. In a hotel also some guest wants a simple room while some guest demands a deluxe room it all depends on their choices and resources.
A product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a need or want. Example Burger is the main product of the McDonalds.
1.3.3Value, satisfaction, and quality
Value is the consumer’s estimate of the product's overall capacity to satisfy his or her needs. Today's consumer behaviorists have gone beyond narrow economic assumptions of how consumers form value in their mind and make product choices. b) Satisfaction
Satisfaction with a product is determined by how well the product meets the customer’s expectations’ for that product. C) Quality
The totality of features and characteristics of a product that hear on its ability to meet customer needs. The fundamental aim of today's total quality movements has become total customer satisfaction. 1.3.4Exchange, transactions, and relationships
Exchange is the act of obtaining a desired object from someone by offering something in return. b) Transactions
A transaction is marketing's unit of measurement. A transaction consists of a trade of values between two parties. c) Relationship marketing
Relationship marketing focuses on building a relationship with a company's profitable customers. Most companies are finding that they earn a higher return from resources invested in getting repeat sales from current customers than from money spent to attract new customers.
It is the place where potential buyers who might transact with a seller. It is the place where buyer and sellers meets.
1.4 Changing emphasis of marketing
1. Production concept
It is the concept where manufactures company favor products that are available and highly affordable, and therefore management should focus on...