An Essay on Marketing Strategy and Innovation for Hospitality and Tourism Industry on the Basis of Business and Market Trend

Topics: Marketing, Hotel, Marketing strategy Pages: 13 (4344 words) Published: October 16, 2014
Hospitality Marketing and Consumer Behaviour
Abstract
This assignment looks gives an introduction about marketing and the marketing mix to the reader. We then look into India’s hospitality Industry and how it is growing as compared ot the hospitality industries of other countries. We then look at what hospitality marketing is and its need and importance in India’s hospitality and tourism industry. Then the various new upcoming trends and innovative ideas that will boom in 2014 are discussed in details, focusing slightly on digital marketing. Then we discuss about few of the long term and short term marketing strategies that can be taken up in the hospitality and tourism industries, especially in hotels.

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Hospitality Marketing and Consumer Behaviour
Introduction to Marketing
According to the American Marketing Association “ Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” The world of marketing consists of various activities and terms, a few important ones are the product, which refers to the commodity or tangible good being offered to the customer and service which is an economic activity that is intangible. It is either the transfer of the goods or the use of experience, and in the hospitality industry, both products and services are consumed at the points of sale, making it a product-service mix, which shall be discussed later on. Another important part of marketing is the exchange of goods and services between the producer and consumer in a specific place. For example, the Pepsi Company choses to exchange its product with a Mexican company for wine, so as to avoid exchanging their product for pesos, which is devalued as compared the USD.(Reid,R.D. et al,2010)

The Marketing Mix is something that has been accepted everywhere and is used to develop effective marketing strategies for organizations. The 4 Ps of Marketing Mix are Price, Product, Promotion and Place. A successful hospitality organization focuses on the needs and wants of the guest and markets the product-service mix and also uses the other hospitality market mixes. The various mixes must be implemented into the organization’s marketing program and attract potential customers and meet the goals of the firm. .(Reid,R.D. et al,2010)

Introduction to the Hospitality Industry
In today’s growing global economy, the hospitality and tourism industry is leading in revenue generation around the world, as it is getting very technologically advanced and luxurious. The Indian hospitality industry is on the way to become the world’s number one tourist destination, as the World Travel and Tourism Council had anticipates seeing the demand growing at a rate of 10.1% per annum. The World Travel Organization also anticipates that India will receive around 25 million tourists by 2015. India is becoming a much sought after destination for a vacation by both Indian nationals and foreign travelers due to its rich cultural heritage, which make the country experience such footfalls. India’s economy is also growing at a fast pace with more multinational companies setting up base in the metropolitan cities, thus producing more employment opportunities and as the hospitality industries growth is also knit with the country’s economic growth, they both are booming, making India a brilliant choice for a destination. In India, the hotel industry is segmented into the Premium and Luxury Segment (Five Star and Five Star Deluxe Hotels), Mid-Market Segment (Three Star and Four Star Hotels), Budgeted Segments (Two Star and One Star Hotels) and Palaces and Forts (Heritage Hotels). According to the tourism ministry, the demand for tourists in the country would rise to over 15 million

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Hospitality Marketing and Consumer Behaviour
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