Service Marketing Issues at Armani Hotel - Report Example

Armani Hotel (Dubai) - Managing Service. Table of Contents Table of Contents 2 Introduction 3 Brief on Service Marketing 3 Overview of customer relationship marketing (CRM) 5 Customer Service of Armani Hotel, Dubai 6 Customer Relationship Marketing of Armani Hotel 7 Conclusion 8 Reference 9 Introduction The world of 21st century is an arena that promotes fast growth, tremendous development and high competition. The high level of internet connectivity in various corners of the world, along with the existence of the open economies has provided the platform for demand of products and services of international standards. The luxury sector, especially the hospitality sector always demands international standards and qualities of services mostly because of its need to maintain a homogenous quality and standard of high level of customer service at all of its location of presence (Chevalier and Mazzalovo, 2012, p. 88) . It is important to say that in the steady cycle of economic peaks and troughs that has continued to affect the business prospects of various countries in the recent times; the luxury hospitality sector has always maintained a steady level of growth all the time. The reason behind it can be attached to the fact that the luxury sector always experiences an inelastic demand mostly because of its significant choosing of its target audience, which are mostly comprised of the elite and extremely rich people. Brief on Service Marketing Services can be defined as a concept which represents intangible actions and attributes that are performed by individuals or a team of individuals for the purpose of providing superior level of value perception to the consumers in regards to their individual requirements of value of tangible or intangible nature (Rao, 2011, p. 5). Talking a little more about services, it can be said that because of its characteristics, services are a little different from the products. In case of services, the characteristics like the intangibility, homogeneity, inseparability and perishability exists (Shanker, 2002, p. 36). While talking about marketing of services, it is important to mention that it surely includes the marketing features associated with the highly popular 4P’s concept. For the purpose of attaining success in a highly competitive environment, the value of services needs to be created, communicated, distributed and captured for the right target audience. However, it is very important to mention that there are three other variables that help in the process of providing value to the customers. The factors of people, process and physical evidence has to be mentioned without ignorance (Bhattacharya, 2006, p. 117). The existence of the three new variables is very important as it helps in a great way in the process of communication of value of the services to the consumers (Zeithaml & et.al, 2011, p. 21). It can be said that for the purpose of providing high level of services to generate superior customer satisfaction and hence increase profitability of the services, analysing of the services in regards to its ability to meet customers’ expectations is very important on a regular basis. For developing a successful analysis of the services, the GAP model can be used (Lamb, Hair and McDaniel, 2008, p. 354). It is important to mention in these regards that the GAP model of service quality tries to analyze the service offerings of any enterprise from the perspectives of both the customer as well as the service provider. Source: Lamb, Hair and McDaniel, 2008, p. 354 Overview of customer relationship marketing (CRM) It has to be said that in the case of customer relationship marketing, it belongs to the division of marketing of services. In the context of marketing of products as well as services, it has often been realized that retaining of customers helps in increasing the profitability of the organization at a comparatively lower costs, rather than aggressive acquisition of new customers on a regular basis (Dyche, 2002, p. 28). In the case of services, this particular fact is very true. While a happy customer can provide significant benefits to the service through word of mouth referral and recommendation, on the other hand, an unhappy customer will create significant damage to the prospects of service through negative publicity. As a matter of fact, in the service and hospitality industry, the concept of relationship marketing is of tremendous importance (Brink & Berndt, 2009, p.2). Talking on this note, it can be said that the customer relationship management is a high level management concept, which comprises of various structures that are considered as highly essential for the process of value communication. Talking on this note, it can be said that customer relationship management comprises of but is not limited to understanding and studying the consumer on a single basis. For this, the focus should be to critically analyze the habits, nature, and psychology as well as consumer behaviour and study other relevant individual details of the customers on a very minute and personalized basis. Customer Service of Armani Hotel, Dubai Armani Hotel, Dubai is founded as a part of the contract of 2004 that happened between Giorgio Armaani and Emaar Properties for operating a series of luxurious properties under the Giorgio Armani brand name. Located in the iconic Burj Khalifa of Dubai, it has to be mentioned that the hotel is one of the luxurious wonders of the world. It is among one of the first hotels that has been developed and designed by the highly reputed Giorgio Armani. It will be literally unfair if it is not mentioned that the highly luxurious hotel property is high on simplicity, elegance, style mixed with the right dose of modern day comfort (Burj Khalifa, 2009). The entire hotel comprises of a series of modern day hospitality divisions like hotel suites, residences, spa facilities as well as restaurants. While the hotel is high on visuals attraction and other facilities and modern day amenities, which normally falls in the expected service and product offerings in the customers’ mindsets in regards to a highly luxurious property, yet it has to be said that the customer service is impeccable and unique in nature (Stephen, 2010). Talking a little off the line, it can be said that in case of deriving value from the services, the customers’ expectations can often be categorized on the border lines of the basic offering, expected offering and augmented offering. However, for the purpose of connecting the process of meeting value expectations of the customer with regards to the generating high consumer satisfaction, it has to be said that the hotel’s unique customer service style and nature is sure to bypass the imaginations of the customer. ‘ Talking about it in details, it has to be said that the customer service of Armani Hotel Dubai does not comprise of the traditional concierge desks or front desks (Pectu, 2011). On the other hands, it starts right from the very confirmation of the booking of a hotel room in the iconic and luxurious Armani Hotels. The guests are being up from the airport in Bentley, which is a symbol of style and luxury. On their arrival, they are being greeted by individual relationship managers which are being allocated to each guest. The relationship manner is being empowered with the responsibility to provide the highest level of customer service to the guest. The relationship manager very willingly takes the responsibility of any issues that may have been troubling the guest. Talking briefly, the duties of a relationship manager comprises of but is not limited to giving wakeup call, arranging breakfast at the designated time, baggage claims at the airport, unpacking and ironing of clothes etc (Gandee, 2010). To provide the perfect feel of style and grandeur, all the employees are provided with Armani suits for their office attires. Customer Relationship Marketing of Armani Hotel While discussing the customer relationship management and customer relationship marketing of Armani Hotel, Dubai, it has to be said that the management of the innovative human process based individual and highly customized customer service is impeccable in nature. Talking on these notes, it can be said that the current relationship endeavours of the Armani Hotel is sure to achieve high level of ratings. The attention to detail on the part of the customers as well as the service providers is extremely worthy of mentioning. The relationship manager’s endeavours to tackle each and every issue faced by the guest, and thereby ensuring him or her with a comfortable stay is sure to help in communicating the positive side of customer relationship efforts of the hotel. Also, the hotel’s presentation of its employees in Armani suits, surely talks about internal branding and communication of high level of brand value to the guests. Conclusion It has to be said that the highly individualized and customized kind of customer service that is being provided by the Armani Hotel, Dubai to its customers is sure to earn the hotel superior category of ratings from critics and customers as well. It has to be mentioned that the hotel’s highly individualized kind of customer service helps in converting the intangible factors in to tangible ones. This in return helps in a great way in the marketing of a service in the hospitality sector. Also by providing superior level of customer’s satisfaction it can be said that the hotel will be able to retain customers and thereby attain significant amount of finance related advantages in the long run. Reference Brink, A. & Berndt, A. 2009. Relationship Marketing and Customer Relationship Management. South Africa: Juta & Co. Ltd. Dyche, J., 2002. The CRM Handbook. India: Dorling Kindersley Publishing. Chevalier, M., and Mazzalovo, G., 2012. Luxury Brand Management: A World of Privilege. Singapore: John Wiley & Sons, Pte. Ltd. Shanker. R., 2002. Services Marketing. New Delhi: Excel Books. Rao, K.R.M., 2011. Services Marketing. Second Edition. India: Dorling Kindersley (India) Pvt. Ltd. Zeithaml, V.A., & et. al., 2011. Services Marketing, 5th ed. New Delhi: Tata McGraw Hill Education. Lamb, C.W., Hair, J.F., and McDaniel, C., 2008. Marketing, 10th ed. USA: Cengage Learning. Bhattacharya, C., 2006. Services Marketing. New Delhi: Excel Books. Gandee, C., 2010. The New Armani Hotel Dubai. [Online] Available at: http://www.travelandleisure.com/articles/the-new-armani-hotel-dubai/1 [Accessed 8 Feb. 2013] Pectu, O., 2011. Can the Armani Hotels Concept be Saved? [Online] Available at: http://luxurysociety.com/articles/2011/08/can-the-armani-hotels-concept-be-saved [Accessed 8 Feb. 2013] Stephen, 2010. A World within a World. [Online] Available at: http://archrecord.construction.com/projects/portfolio/2010/08/armani_hotel_dubai.asp [Accessed 8 Feb. 2013] Burj Khalifa, 2009. Stay With Armani. [Online] Available at: http://www.burjkhalifa.ae/language/en-us/armani-hotel.aspx [Accessed 8 Feb. 2013] Bibliography Foss, B and Stone, M., 2001. Successful Customer Relationship Marketing: New Thinking, New Strategies, New Tools for Getting Closer to Your Customers. UK : Kogan Page Publishers Sheth, J.N., 2001. Customer Relationship Management: Emerging Concepts, Tools, and Applications. India: Tata McGraw Hill Education. Butle, F., 2004. Customer Relationship Management. Italy: Genesis Typesetting Ltd. Jha, L., 2008. Customer Relationship Management: A Strategic Approach. New Delhi: Global India Publications Pvt. Ltd. Chaturvedi, M. and Chaturvedi, A., 2005. Customer Relationship Management. New Delhi: Excel Books. Peelen, E., 2005. Customer Relationship Management. Financial Times Prentice Hall. Knox, S. & et.al., 2012. Customer Relationship Management. Great Britain: Routledge Mukherjee, K., 2007. Customer Relationship Management: A strategic approach to marketing. New Delhi: Phi Learning Pvt. Ltd. Read More