Marketing-A Hotel Perspective - Essay Example

Marketing-a hotel perspective “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others” - Philip Kotler Marketing is the economic process by which goods and services are exchanged between the producer and the consumer and their values determined in terms of money prices. Marketing originates with the recognition of a need on the part of a consumer and terminates with the satisfaction of that need by the delivery of a usable product at the right time, at the right place and at an acceptable price. Marketing is a key function of management. It brings success to business organization. A business organization performs two key functions producing goods and services and making them available to potential customers for use. An organization business success largely depends on how efficiently the products and services are delivered to customers and how differently do the customers perceive the difference in delivery in comparison to the competitors. This is true of all firms – from large business enterprises to small firms, from multinationals operating in different countries to small firms operating in small markets The main features of market orientation Customer needs are first priority and understanding these needs is a constant concern. Marketing research is an on-going activity assigned a very high priority. Frequent reviews are made of strengths and weaknesses relative to competitors. The value of long-term planning is fully appreciated. The scope of business activities is broadly set and change is seen as inevitable. Interdepartmental cooperation is valued and encouraged. Cooperation with complementary organizations is seen as being worthwhile. Measurement and evaluation of marketing activities are done frequently. A service is an activity which has some element of intangibility associated with it, which involves some interaction with customer or with property in their possession, and does not result in a transfer of ownership. A change in condition may occur and production of the service may or may not be closely associated with a physical product. It includes a wide variety of services. Marketing is a complex system of application as it involves of knowing the customers needs and wants. Customers’ perceptions change individually and one firm cannot satisfy customers needs, but it can strive to reach the standards. To know the customer expectations market research and analysis is required. The market research involves estimating the viability of the product launch in the region, the expectations of the customers from the product the approximate number of takers for the particular product. the number of existing competitors, life of the product. To arrive to a decision a lot has to be spent to do the market research without expecting any profit of this act. The objectives of this paper is to study Industry scope: The range of industries that the company will has to consider. Products and applications scope Competencies scope: The range of technological and other core competencies that the company will master and leverage. , Market-segment scope: The types of market or customers that the company will serve. Vertical scope: The number of channel levels from raw materials to final products and distribution in which the company will engage. Geographical scope: The range of regions or countries where the corporation will operate. A hotel will have the following service products Rooms: are the main revenue resources as most services will relate to the room occupation. Restaurants : is the other major revenue generator as guest will visit the hotel the uniqueness of the cuisines served in the hotel property and the ambience, the location, the type of clientele and the number of pax will decide the value of the hotel. The ancillary services areas like the coffee shops, bars, specialty restaurants, the discos, the laundry service, and gymnasium ,the cyber cafes, catering at the banquets where occasions are organized according the number of pax. Every hotel product is related to guest interaction and personalized experience. Marketing environment is an unusual atmosphere with its changing trends. A firm instead of waiting for the change to be taken place should force the change in favor of the firm. The microenvironment consists of forces close to the company that can affect its ability to serve its customers. The components in the microenvironment include the company, suppliers, market intermediaries, customers, and publics. 1) The Company. Marketing managers’ work closely with top management and various departments to ensure the implementation of policies and objectives of the organization. 2) Suppliers are the Firms and individuals that provide the resources needed by the company to produce its goods and services. The suppliers are mainly the sources who provide the raw materials and other ancillaries to provide a complete product to the guest 3) Marketing Intermediaries. Firms that help the company promote, sell, and distribute its goods to the final buyers. The associates, franchisers and the agents who work for promoting the products of the parent company 4) Transportation System: The hospitality industry depends on transportation systems to move supplies and customers to their businesses. 5) Marketing Services Agencies Marketing research firms, advertising agencies, media firms, and marketing consulting firms help companies to target and promote their products to the right market. 6) Financial Intermediaries. Includes banks, credit companies, insurance companies, and other firms that help hospitality companies to finance their transactions or insure risks associated with the buying and selling of goods and services. Macro environment. The macro environment consists of the larger societal forces that affect the whole microenvironment demographic, economic, natural, technological, political, competitor, and cultural forces. These are the seven major forces in a companys macro environment: 1) Competitive Environment position in relation to its competitors. 2) Demographic Environment. Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. The demographic environment is of major interest to marketers because markets are made up by the people. 3) Economic Environment. The economic environment consists of factors that affect consumer spending patterns. Markets require both power as well as people. spending power depends on current income, price, saving, and credit; marketers must be aware of major economic trends in income and changing consumer spending patterns. 4) Natural Environment. the natural environment consists of natural resources required by marketers or affected by marketing activities. 5) Technological Environment. The availability of the advanced contemporary technologies to enhance the service to the guests 6) Political Environment. The political environment is made up laws, government agencies, and pressure groups that influence and limit various organizations and individuals in society. 7) Cultural Environment. The cultural environment includes institutions and other forces that affect societys basic values, perceptions, preferences, and behaviors. These factors give a clear picture of the existing current scenario and allows us to tune up our service with the demand. The hotel group in this case was strategically well located in different regions according to the demand for the property like the five star hotels at the central London where tourists and business traffic will be high, the fourteen motels situated on the highways. The locations have good scope for business. The Bradshaw brand has been well promoted through all means in different regions as they were in business in all levels of hotels. But the level of service is different in different properties. There was a rapid expansion of the properties but the management ignored the standards they have to place at the properties like the manpower, the ambience, the orientation of the employees towards organization policies. The management has to cash upon opportunity of its strength it’s strategic location and should renovate the properties by all means to once again entice guests towards the hotel. As the company is having properties that can cater to the different standards of people the management should provide the necessary facilities to accommodate the needs of the guests like: Instead of aggressive expansion strategies ,the focus should be on the development of the internal organizational to reach certain standards and enhance the brand visibility. Providing recreational facilities in three and two star hotels for domestic business travelers and international business travelers Enhancing the facilities of highways motels by providing entertainment areas for kids, bars and restaurants etc. Providing modern amenities like internet, STD/ISD, shoping arcades ,VCD/DVD Players Establishing spas and yoga for the business travelers and leisure travelers for their relaxation near the three star and above properties. Recruiting and training the manpower according to the objectives and policies of the organization . Training the employees in various technological fields and enhancing their service standards by interaction with the experts in the field. 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