Public Relations and Relationship Marketing in Hospitality - Term Paper Example

PUBLIC RELATIONS AND RELATIONSHIP MARKETING IN HOSPITALITY Introduction This paper is a critical assessment of the evolution of public relations. It also deals with evaluation of relationship marketing in the hospitality industry. The effectiveness of public relations and marketing in the hospitality industry is clearly evaluated in this paper. Evolution of public relations Public relations entail maintaining a positive organisational image. This is done by avoiding publicizing the organisation's failures. In this case the successes are really popularized. It is also about ensuring the awareness to the entire public concerning the changes that are made in the organization. This term was initiated by Thomas Jefferson. This was in the year 1807. It was first defined by Edward Bernays. He defined it as a management function with policies and programs that help an organisation to earn acceptance from the public. Research shows that throughout history public relations were used. One of the people that used it includes Georgiana Cavendish. 1 This was during the 18th century. She used so many approaches like lobbying the business. This she did with the help of her friends. She also incorporated press relations in her public relations venture. There are also many other people through out history that used public relations. For instance the American precursors carried out the promotion of circuses. In fact research shows that public relations were started in the United States. This was done such that the railroads were supported. Research shows that Railway literature book was the first to be reported to have the term public relations. This was in the year 1897. The public relations today have gone through many changes since the initiation. New techniques have been incorporated unlike what used to happen before. For instance there is the use of focus groups. This was never carried out initially but rather much generalization was done. When the public relations are carried out a specific group of people is targeted. For instance the loyal customers in the organisation can be a target group. 2 There is also the use of new technology in making sure that information reaches the clients. For instance since the nineteenth century, the internet has really been used in remitting information to clients. There is also the use of satellite feeds in the public relations. Today people need vast knowledge like economics and management principles to carry out public relations. For efficiency and effectiveness basic communication skills knowledge has to be studied by the concerned managers. Even video productions are widely used by various organizations. Nowadays many organisations have got a public relations department that deal with all the issues concerning the public in general. When the above evolution of public relations is evaluated one realizes that there used to be limitation in the communication because the technology was not advanced at that time. The public relations were carried out quite generally and therefore the desired effects were not well achieved. For instance the entire process was quite generalized that it did not deal with a specific focus group. This really limited the effectiveness. The communication could take time before being communicated. This is unlike what is happening in the organisations today because technology has really enhanced communication. Relationship marketing Relationship marketing is all about having tactics that are event driven. It is about retaining the customers in the business organization. It is a process and not an issue of a single event. Relationship marketing is usually carried out by having tactics that will help in retaining the loyal customers in the hospitality industry. The customers include local and the international tourists. The marketing messages in this case have to be moulded in line with the customer's life cycle. Through this there is usually high profitability since the customers are satisfied. For instance in the hospitality industry one has to consider the customers that are there or present. The international tourists are divided into different groups. There are those that visit seasonally and those that may live in the country. One has to consider all these factors so that all these calibre of customers are kept loyal in the hospitality industry. 3 The entire process of relationship marketing involves so many stages. Different businesses will always define the processes differently. For instance there can be the stage of awareness in the relationship marketing process. In this stage one has to know the various customers that are served by the hotel or the hospitality industry. The next stage can involve the comparison of the customers. This is where the customers are evaluated like how frequent they visit the hotel etc. In the transaction the necessary step is taken like giving the selected customers incentives like discounts. This venture can also be reinforced using other available methods. In the relationship marketing there is the customizing of programs such that the desired results are met. This customization is done to the individual consumer groups. This is because the approach used on one group may not appeal to the other. The groups have to be considered like the seasons that they seek the services or products. For instance the strategies that are used for the customers that are served throughout the year in the hotels have to be emphasized than those that are quite seasonal. 4 An example of a strategy that can be used in the hospitality industry is the use of a kit to welcome the customers. This is very beneficial in appealing to the new customers. This can be done at the reception in a hotel. The kit is given for free to the new customers as they enter the hotel. This can be simply done by a free offer of juice in various flavours like mango, passion or avocado juice. For example, with the loyal customers if they take time before they come back then another step can be taken. To help in retaining the customers the management in the hotel can send an email to the customers. In the email the customers that visit the hotel are informed of discount that they have been given on their next purchase. This helps the customers to come back instead of preferring the other hotels in this case. Customer behaviour has to be evaluated in carrying out the marketing approach. For example a customer who always visits a hotel frequently and just stops all of a sudden shows that something is wrong. This could mean that other hotels could be offering better services. When this happens the management then communicates to the customer by emailing. If the customer comes back then it means that that is a very positive response. When this happens then the cycle in this case is complete. The management has to be keen and watch out for other behaviours such as these and take the necessary action. 5 EFFECTIVENESS OF PUBLIC RELATIONS Builds credibility In the hospitality industry the credibility of the organisation is really built. A restaurant that incorporates public relations in the organisation increases its credibility very much. This is done through the news coverage of the successes of the restaurant. Many restaurants let their information be known through a third party. This is done through newspapers, magazines, radio and also televisions. Many people that read the newspapers and the magazines believe what they read. They also believe what they watch on the televisions and what they hear over the radios. Many people place much credibility on what they see on the television screens. Cost effective Carrying out public relations in the hotel industry is quite cost effective if it is well carried out. This is because public relations build the organisation's image to the public and the customers in general. The customers in turn look for these products and services. Therefore the organisation gains a lot because the customers will bring in increased profits. When the cost of carrying out the public relations is calculated in relation to the reaped profits, it shows that this venture is very cost effective. 6 Communication of the industry state Public relations are really effective in the communication of the state of the hospitality industries to the customers and the public in general. This is very effective in the hospitality industry. For instance a hotel that has improved its services can effectively communicate to the public concerning these improvements. This could be the incorporation of free services and discounts that are given to the customers. The communication always appeals to various people including the financial supporters in of the organization. There are also other people like the industry associates that are easily reached. The communication is also made to the existing and the past customers. This helps the organisation to give the positive impression that it is well organized in its endeavours. Helps in crisis management Public relations are effective in the management of a crisis when incorporated in the hospitality industry. There are moments when things in the hospitality industry just go haywire. For example a hotel can suffer from negative advertisings and press publications. When the organisation carries out the public relations, the crisis is easily managed because the public and the customers are reassured of quality and effectiveness in the organization. 7 EFFECTIVENESS OF RELATIONSHIP MARKETING Social When relationship marketing is well carried out in the hospitality industry there are increased social benefits that are reaped. It really helps the customers to have familiarity in the restaurant or the hotel. The hotels and the restaurants in this case have a very good social relationship with their customers. There are cases where the restaurant manger knows the customers by name and even their contacts. In general there is a very mutual cordial relationship. This makes it very easy for the customers to tell the management issues concerning their dissatisfaction with the services. This really helps the management to improve the services or to carry out the necessary corrections. Confidence There is high effectiveness in the hospitality industry when relations marketing are carried out. The customers who are sometimes international tourists develop feelings of trust in the hotel and the restaurants. This is very beneficial to the organization. The customer's anxiety is greatly reduced because their expectations in the service provider are clearly known. Retained customers Relationship marketing is very effective in the retention of the customers that access the services and the products in the hospitality industry. It is always very expensive to seek for new customers than to maintain the existing ones. The use of the email services in knowing how the lost customers are faring on helps to keep the customers loyal to the organization. Research shows that the cost of retaining the customers is 10% lower than that that is spent in acquisition of new customers. Increased profits Research shows that customer retention in the hospitality industry brings in increased profits than looking for new customers. The profit is estimated to be between 25 percent and 85 percent in the hospitality industry. This is because acquisition of new customers only occurs when the relationship is beginning. So when the relationship is longer the amortized cost also lower. When the customers are regular, they require less education on the facilities in the hotels and restaurants. The loyal customers have got a high probability in buying ancillary goods in the hospitality industry. 8 Conclusion Public relations have gone through a big evolution since its initiation. Today much technological advancement has been incorporated in this sector especially in the hospitality industry. Relationship marketing is very effective in the hospitality industry. This is because relationship marketing helps in the retention of the customers in the hospitality industry. When public relations are used in the hospitality industry there is increased effectiveness in crisis management. All these well incorporated leads to success in the hospitality industry. References Anderson, G. (1989): A Global Look at Public Relations; In: Bill Cantor; Experts in Action. Inside Public Relations; 2nd Edition, White Plains; NY; Longman; pp. 412-433. Banks, S. (1995): Multicultural Public Relations; A Social-Interpretive Approach; Thousand Oaks; CA; Sage Publications Berry, Leonard (1983): Relationship Marketing; American Marketing Association; Chicago, 146 Black S. (1996): International Public Relations, 2nd Edition, London: Kogan Page Botan, C. (1992): International Public Relations. Critique and Reformulation Public Relations Review, 18(2): 1992, pp. 149-159. Botan, C. (1993): A Human Approach to Image and Ethics in International Public Relations Journal of Public Relations Research 5(2); pp. 71-82 Bruce, H. (1988): Relationship Marketing; Putting Relationships to Work; in Cornell Cooperative Extension Marketing Manual; New York Gordon, I. (1999): Relationship Marketing; New Strategies; Techniques and Technologies to Win the Customers You Want and Keep Them Forever. John Wiley and Sons Publishers, 336 Jackson, B. (1985): Build customer relationships that last; Harvard Business Review Leonard B. (1983): Relationship Marketing in Perspectives on Services Marketing Chicago; Illinois; American Marketing Association Read More