The Significance of Marketing Concepts in the Hospitality Industry - Essay Example

Another challenge has to do with marketing expenses. Increased promotional costs mean that hotels have to invest in more cost-effective advertising strategies that put more emphasis on the type of services on offer, as well as educational pursuits, than on potential promises.2 To remain competitive, hotels such as the Hilton Group also have to invest in reaching targeted markets and establishing measurable objectives. One of the biggest challenges in the marketing of recreational facilities lies in the fact that, unlike actual physical goods, recreational breaks have to be consumed on-site.

3 Even though hotels may create a spectacular advertisement about the services they offer, the advertisement does not deliver the true experience. This is a product that cannot be manufactured, stockpiled, and then conveyed to a distribution point that is quite convenient for all potential consumers. Rather, the consumers have to travel to access the experience- which will result in more expenditure on their part. The Hilton Group has recognized this fact and has employed more than 700 sales executives in over 34 nations around the world to reach customers through various means. The Hilton Hotels group sales teams function from a differentiated platform that is dedicated to the development of its market share.

The Definition of Customer’s Needs
The Hilton Hotels group is comprised of approximately 730 hotels in various nations all around the world. It has consistently generated customer-friendly strategies that have resulted in increased revenue even in the midst of recessions. The cross-selling program for instance supposedly generated $500 million less than five years ago. The cross-selling program puts visitors whose Hilton suite lodging option is unavailable in alternative Hilton brands.
To retain its numerous customers, Hilton has also invested in a phone and web reservation system that is manned by sales representatives who are well-trained on the importance of cross-selling. Hilton hotels also have a rewards system that has resulted in the enhancement of customer brand awareness.