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International Journal of Contemporary Hospitality Management

The evolution of services marketing, hospitality marketing and building the


constituency model for hospitality marketing
Melissa A. Baker Vincent P. Magnini

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Melissa A. Baker Vincent P. Magnini , (2016),"The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing", International Journal of
Contemporary Hospitality Management, Vol. 28 Iss 8 pp. 1510 - 1534
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IJCHM
28,8

1510
Received 14 January 2015
Revised 19 April 2015
27 August 2015
11 December 2015
Accepted 31 January 2016

The evolution of services


marketing, hospitality marketing
and building the constituency
model for hospitality marketing
Melissa A. Baker
Department of Hospitality and Tourism Management,
University of Massachusetts, Amherst, Massachusetts, USA, and

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Vincent P. Magnini
Department of Hospitality and Tourism Management, Virginia Tech,
Blacksburg, Virginia, USA
Abstract
Purpose This paper aims to synthesize the services marketing and hospitality marketing literature,
identify a gap in hospitality specific marketing models and develop the constituency model for
hospitality marketing.
Design/methodology/approach This study is a research through extensive review of relevant
literature in hospitality marketing and services marketing.
Findings This paper presents the constituency model of hospitality marketing which conceptualizes
hospitality marketing activities as being predominately either external marketing (links between
management and target market segments), interactional marketing (links between frontline providers
and target market segments) or internal marketing (links between management and frontline
providers). According to this model, each of these three areas has planning, implementation and control
functions.
Research limitations/implications Builds upon the hospitality literature by presenting the
constituency model.
Practical implications Practitioners, marketers and academics in the field of hospitality will find
this useful in guiding the future growth of hospitality marketing literature and related pedagogy. The
aim of this paper is to stimulate dialogue regarding the dominant paradigm in the field.
Originality/value This research examines the hospitality and services marketing and presents a
new model for hospitality marketing.
Keywords Hospitality services, Hospitality education, Services marketing
Paper type Research paper

International Journal of
Contemporary Hospitality
Management
Vol. 28 No. 8, 2016
pp. 1510-1534
Emerald Group Publishing Limited
0959-6119
DOI 10.1108/IJCHM-01-2015-0015

1. Introduction
Hospitality researchers are constantly involved with reviewing past research efforts
and suggesting future research directions. Categorizing and synthesizing extant
research is the first step towards integrating research endeavors and allowing new
bodies of research to be constructed (Runyan and Droge, 2008). The hospitality industry
is one of the worlds largest in terms of global revenue and employment opportunities
(Statista, 2014). While hospitality is a type of service, hospitality is unique enough to
warrant its own field of study. Despite some evidence as to the importance of services

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marketing in the context of hospitality curriculums (Solnet et al., 2010), very little
research exists that aims to better use the content of services in hospitality management
and education (Solnet, 2012). It is argued that academics jump too readily into
hospitality as merely a form of services marketing, with little consideration for the true
relevance and implications of the concept of hospitality to the international hospitality
industry (Hemmington, 2007). There is a need for more research and conceptualization
regarding hospitality and marketing research (Morosan et al., 2014). It is therefore
important to examine how services marketing research, which is evolving at a far
greater pace, can inform hospitality marketing research. The dearth of domain specific
hospitality marketing theory is both evidence and cause of an increasing disconnect
between marketing research and the overall framework of hospitality marketing
research (Line and Runyan, 2012).
The conditions inherent in the hospitality industry present opportunities for
hospitality scholars to contribute significantly to theory development (Line and
Runyan, 2012). It is therefore important to examine how services marketing can better
inform hospitality marketing and vice versa. In other words, there is a need for a clear
model that more representatively encompasses hospitality marketing in reality and
practice that can be used by academics for theory and by hospitality students, managers
and firms in practice. The development of a hospitality comprehensive framework can
afford new opportunities and give a greater voice to hospitality marketing research.
Therefore, the purpose of this research is to first examine the evolution of both
services and hospitality marketing, highlighting the differences between the two, most
notably in the areas of internal and interactional marketing. Second, based upon the gap
in the theoretical literature, this research presents a more comprehensive hospitality
marketing model: the constituency model for hospitality marketing. The model presents
external marketing (links between management and target market segments),
interactional marketing (links between frontline providers and target market segments)
or internal marketing (links between management and frontline providers). The
external, interactional and marketing links each has planning, implementation and
control functions.
2. Evolution of services marketing
The development of service-oriented concepts and models began with Shostacks (1977)
seminal article promoting service marketing as an acceptable field of research that
separated it from product-based marketing. In other words, there was the development
of semi-controllable factors of people (employees, customers), physical evidence
(facility, uniforms, equipment) and process (flow of activities, level of customer
involvement), which were said to differentiate products from services marketing. This
then led to the identification of the four characteristics of services: intangibility,
heterogeneity, inseparability and perishability (Fisk et al., 1993). The seminal articles
Building a New Academic Field: The Case of Services Marketing (Berry and
Parasuraman, 1993) and Tracking the Evolution of the Services Marketing Literature
(Fisk et al., 1993) were the first to officially recognize services marketing as a
discipline.
Since then, there are other informative reviews of the services marketing literature.
Martin (1999) details both roots and themes in the services marketing literature. And
more recently, the conceptual article Whither Service Marketing: In Search of a new

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Paradigm and Fresh Perspectives (Lovelock and Gummesson, 2004). In an attempt to


stimulate more valid and relevant marketing theory, service dominant logic contends
that the term service is accurate because it captures the commonalities of various
alternative logics (Vargo and Lusch, 2004). Moreover, the terms service and products are
not interchangeable in reference to marketing because they are concerned with
contrasting, rival philosophies about the whole process of value creation, commerce and
exchange (Ballantyne and Varey, 2006). The services marketing logic is built upon a
different rationale about the purpose and process of exchange from that of the product
dominant logic. It has been vehemently argued that it is one that is foundationally
distinct (Vargo and Lusch, 2008). Service represents the exchange process, in that
service is what is always exchanged. Goods, when used, are aids to the service provision
process. There is a widespread endorsement for the service dominant logic (Vargo and
Lusch, 2004, 2008) and interdisciplinary support for services science (Kandampully
et al., 2014).
What do all of the aforementioned services marketing reviews have in common?
Each of these reviews of the services marketing literature place a heavy emphasis on
employees as marketing tools and on the interactions between employees and customers
as key determinants of marketing success. In the services marketing arena, the
traditional 4Ps of marketing are often expanded to include three more:
(1) people (the human actors in the service encounter);
(2) process (procedures and flow of activities); and
(3) physical evidence (physical surroundings and tangible cues) (Bitner, 1990;
Booms and Bitner, 1981; Shostack, 1977).
To reflect the reliance on these seven Ps in the service setting, Grnroos (1996)
developed the services marketing triangle as a means of conceptualizing services
marketing activities. As can be seen in Figure 1, the linkage between the firm
(management) and employees is labeled internal marketing. In this sense, internal
marketing is carried out by the companys leadership whereby they develop and
manage motivated, service-oriented employees (Grnroos, 1996). More specifically,
these are activities that the firm undertakes to train, motivate and reward employees so
they are able to deliver quality service (Zeithaml and Bitner, 1996).
On the services marketing triangle, the linkage between employees and customers is
labeled interactive marketing. Thus, interactive marketing recognizes that customers
and employees are co-creators of the service where the customer interacts with the

Figure 1.
The services
marketing triangle

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contact staff for all or part of the time the service is being performed (Gummesson, 2007).
The term interactive marketing to describe human interactions might be confused today
with the use of that term to describe electronic marketing efforts; thus, interactional
marketing might be more appropriate in a modern context. Finally, the linkage between
the firm (management) and customers is labeled external marketing. As such, external
marketing involves the communication of the firms offerings to potential customers
(Grnroos, 1996).
3. Evolution of hospitality marketing
Despite the connection between hospitality marketing and service marketing, to date,
there is no prior research that integrates service concepts, theories and principles into
the hospitality literature (Kandampully et al., 2014). Hospitality researchers face the
fundamental problem of how the epistemological aspects of the field can be developed
and strengthened as hospitality has been difficult to define (Taylor and Edgar, 1996). An
early definition of hospitality refers to the relationship between guest and host, the
interactivity between guest and host, the blend of tangible and intangible factors and the
host provides for the guests security, psychological and physiological comfort (King,
1995). More recently, hospitality was defined as a contemporaneous human exchange,
which is voluntarily entered into, designed to enhance the mutual wellbeing of the
parties concerned through the provision of accommodation, food and drink (Brotherton,
1999). Hospitality was further defined by Pizam and Shani (2009) as four approaches:
(1) professionalism;
(2) hospitableness;
(3) hospitality as an experience; and
(4) hospitality as a philosophy.
Professionalism focuses on understanding skills, attitudes and personal characteristics
of hospitality employees. Hospitableness refers to friendly service that emphasizes
welcoming behavior toward the customer. Incorporating performance elements such as
acting into customer service leads to hospitality as an experience. Fourth, hospitality
philosophy emphasizes kind service and generosity. While there is disagreement among
researchers as to the definition and discipline of hospitality, one central component that
is generally agreed upon, is that the key tenant of hospitality is the provision of genuine
hospitableness and hospitable experiences (Teng, 2011).
4. Hospitality pedagogy
Over the past few decades, the hospitality domain has spawned into journals and
research consortia. A knowledge domain is a particular field of study that creates a
common ground and a sense of development of a common identity by affirming its
purpose and value to members and stakeholders (Wenger et al., 2002). The evolution of
the hospitality domain is considered a major contribution to the knowledge,
advancement and distinction as a field (Jogaratnam et al., 2005). Hospitality is a field and
scholars impact and shape the research and practice in the hospitality industry (Hu and
Racherla, 2008). In addition, academia is a major driving force in setting the direction of
hospitality as a field. The core functions of academics to the hospitality field are to

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facilitate knowledge in the field and to provide ideas for innovations through research
and consulting (Ottenbacher et al., 2009).
This is especially relevant given that the number of hospitality programs has grown
rapidly in the USA, and they are currently facing increased competition to attract and
retain both undergraduate and graduate students. Cornell was once one of a few
academic options for students wanting to be managers within the hospitality industry.
Twenty years ago, there were approximately 50 universities that had undergraduate
programs. In 2008, there were eight schools offering PhDs and over 200 universities
offering majors in hospitality and tourism management (Stoller, 2008), and in 2014, there
were over 480 colleges offering degrees in hospitality management. In addition, there
were over 2,356 articles published in hospitality journals from 2010 to 2014 compared
with 476 from 2000 to 2004 (McKercher and Tung, 2015) demonstrating that hospitality
has developed into a recognized, mainstream field in its own right (McKercher and
Prideaux, 2014). Despite this, there is a lack of hospitality and tourism specific models.
In other words, the hospitality and tourism discipline still needs its own domain-specific
theories and models (Oh et al., 2004), and they should focus on the key characteristics of
the hospitality industry (Tang, 2014).
There is a dearth of conceptual service-related papers in the hospitality literature
(Kandampully et al., 2014), and more research is needed (Line and Runyan, 2012) as
conceptual articles play an important role in the knowledge development within a field
or discipline (Yadav, 2010). In particular, hospitality involves a much greater level of
interaction between frontline employees and guests. It is therefore interesting to note
that the hospitality marketing literature places a far lesser focus on internal and
interactional marketing components. Consider, for example, a 2010 article in the Cornell
Hospitality Quarterly titled Hospitality Marketing: A Retrospective Analysis
(1960-2010) and Predictions (2010-2020) (Dev et al., 2010). Nearly every study included
in the review, along with nearly every prediction for the future, pertained to the external
marketing topics. A more recent review Hospitality Marketing Research: Recent
Trends and Future Directions(Line and Runyan, 2012) does not place as heavy as an
emphasis on external marketing, but still does not afford internal and interactional
components as much attention as does the services marketing literature. Most recently,
Morosan et al. (2014) content-analyzed more than 1,700 hospitality marketing articles in
three of the leading hospitality journals over a span of 25 years. Like earlier reviews of
hospitality marketing research, the representation of internal and interactional
marketing topics is minimal in comparison to coverage in the services marketing
literature.
Given the results of the aforementioned studies, it is not unsurprising that a distinct
contrast currently exists between the content areas covered in hospitality marketing
textbooks and services marketing textbooks. Specifically, services marketing textbooks
contain much more coverage of internal marketing concepts (connections between
managerial behaviors and frontline employee performance) and interactional marketing
concepts (interactions between frontline employees actions/physical evidence factors
and customer responses) than do current hospitality marketing textbooks. This seems
counterintuitive given the very nature of hospitality. As such, this research uses
services marketing theories and principles to better inform hospitality marketing by
developing a more representative hospitality marketing model.

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Hospitality education needs to open new channels for strengthening the


epistemological roots of the field by permitting greater cooperation and
communication between the hospitality researchers and educators (Ottenbacher
et al., 2009). By teaching a relevant and responsive model for hospitality services
marketing, students may be better prepared as managers and the theoretical
research gains long-term value through the educational process. Because the
content of pedagogical textbooks is largely driven by the body of literature in a field,
a sampling of service marketing textbooks (Clow and Kurtz, 2004; Fisk et al., 1993;
Hoffman and Bateson, 2001; Lovelock et al., 2009; Lovelock and Wirtz, 2011;
Zeithaml et al., 2006) to a sampling of hospitality marketing textbooks (Hsu and
Powers, 2002; Kotler et al., 2006; Raza, 2005; Reid and Bojanic, 2009; Shoemaker
et al., 2007; Shoemaker and Shaw, 2008) found that the coverage of internal and
interactional marketing topics was ten times higher in service marketing textbooks.
Given the high human component that characterizes hospitality offerings, the
internal marketing component should be incorporated more significantly into both
hospitality marketing literature and course content. In other words, the challenges
associated with attracting, motivating and retaining a quality workforce are greater in
the hospitality sector than in many other service sectors, so would not it be wise for a
hospitality marketing course to have internal marketing components? Certainly, for
instance, even top-rate advertising efforts (external marketing) cannot offset the poor
service and consequential reduced customer satisfaction, reduced repurchase intent and
heightened negative word-of-mouth caused by a revolving door of new in-training
frontline service providers.
Next, given the heavy involvement of the physical environment and interactions
therein that consciously and subconsciously influence customer satisfaction in
hospitality settings, should not the interactional marketing component be incorporated
into hospitality marketing literature and course content? For example, do not ambience,
dcor and the quality of face-to-face interaction serve as key differentiators between a
US$79 hotel room and a US$279 hotel room; or between a US$9 dining restaurant
experience and a US$59 dining experience? In addition, as hospitality provides a unique
context where employees develop genuine bonding relationship that is far beyond other
service contexts (Kandampully et al., 2014), should not interactional components be
highlighted more?
Not only are internal and interactional marketing activities critical to the success of
hospitality firms but coverage of these areas at the undergraduate-level may also be
prudent given the tasks typically assigned to entry-level managers in the field. That is,
it is much more commonplace for entry-level managers to be charged with managing
internal and interactional marketing activities than external ones (Kay and Russette,
2000). Even in an entry-level position in a hotel sales and marketing position, daily
activities typically include more interactional marketing tasks (e.g. personal selling)
than external marketing tasks (e.g. advertising). By teaching a relevant and responsive
model for hospitality services marketing, students may be better prepared as managers
and the theoretical research gains long-term value through the educational process.
Thus, this logic serves as additional justification for the incorporation of internal and
interactional marketing content in hospitality marketing literature and course content to
reflect the content typically covered in services marketing literature.

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5. Constituency model for hospitality marketing


Based on an extensive literature review and examination of textbook content, there is a
gap between the content that is discussed in hospitality marketing and services
marketing. Most notably, hospitality marketing has far less content that focuses on
interactional and internal marketing elements. Therefore, using the same lines of
reasoning that led to the development of the services marketing triangle, the current
research offers the constituency model of hospitality marketing (Figure 2).
The constituency model therefore extends/adapts the services marketing triangle by
incorporating the strategic marketing systems of planning, implementation and control
(Kotler, 1967, 1984). These three phases of strategic marketing are incorporated into the
model in an effort to recognize that all marketing initiatives regardless of whether they
are internal, interactional or external entail a planning stage (pre-action), an
implementation stage (action) and a control phase in which actual results are compared
to planned results (Kotler, 1967; 1984).
Second, the customers label on the services marketing triangle is changed to read
target market segments on the constituency model. This segmentation-focused
labeling reflects the importance of not attempting to be all things to all people in the
hospitality arena. From an interactional marketing perspective, proper segmentation is
needed to create service environments in which the proper customer segments can
co-exist without detracting from each others experiences. From an external marketing
perspective, the increased sophistication of revenue management strategies, for
example, in which the right customers are sent through the right channel at the right
Target
Market
Segments
Interaconal
Markeng

External
Plan

Frontline Service

Markeng

Long-run

Providers

Management

Profits
Control

Implement

Figure 2.
The constituency
model of hospitality
marketing

Internal
Markeng

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time for the right price, is a key illustration of the necessity of proper customer
segmentation in a hospitality context.
Third, the employees label on the services marketing triangle is changed to read
frontline service providers on the constituency model. Specifying frontline service
providers on the model helps illuminate the interactional nature of the linkage to the
target market segments. The global hospitality industry has changed the strategic and
operational landscape of the industry (Kandampully and Suhartanto, 2000) and
particularly the skill set need by hospitality employees especially frontline employees
(Bharwani and Jauhari, 2013). That is, even the original services marketing triangle
speaks to interactions in this link; thus, by nature, the employees represented on the
model would need to be front-line associates. Fourth, the firm label on the services
marketing triangle is changed to read management on the constituency model. The
purpose of this revised labeling is to circumvent confusion. That is, as frontline
providers are members of the firm, management might serve as a better
representation of the conceptual thought driving the model. Fifth, as the original
services marketing triangle existed pre-Internet, the term interactional has been
changed to interactional to more accurately represent hospitality marketing
interactions across platforms.
Finally, at the heart of the constituency model are long-run profits. The literature
indicates that, in general, businesses have the goal of managing their profits (wealth) in
the long term (Narver and Slater, 1999). While not necessarily inconsistent, there are a
number of ways for hospitality businesses to increase profits in the short-term at the
sacrifice of the long-term (e.g. cutting quality). For these reasons, it is necessary to
specify long-run profits in the constituency model. In the next sections, the planning,
implementation and control phases of the internal, interactional and external hospitality
marketing activities are discussed.
6. Internal marketing
Internal marketing is vital in the hospitality industry (Akroush et al., 2013) as firms
implement the marketing concept through frontline employees (Donavan et al., 2004).
Internal marketing is a set of employee-friendly managerial behaviors that have internal
and external consequences (Harrison-Walker, 2001) where human resource polices with
marketing can have beneficial impacts on employee behaviors, attitudes and
organizational outcomes (Bansal et al., 2001). In other words, internal marketing
involves research, communication and responses between levels of management and
line level employees (Lings, 2004). The human element in hospitality is critical to
organizational performance. Therefore, the academic literature needs to better
operationalize the relatedness of human resources, internal marketing and strategy
(Kusluvan et al., 2010). Hospitality organizations that embrace internal marketing
practices can have greater competitive advantage, profits and market share (OReilly
and Pfeffer, 2000). Only recently has internal marketing and branding gained
importance for both academics and practitioners in the hospitality industry (Erkmen
and Hancer, 2015). As such, the planning, implementation and control of the internal
marketing activities may be important in providing a hospitality firm with competitive
advantage.

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6.1 Internal marketing: planning phase


In the constituency model, the planning phase of internal marketing pertains to the
thoughts and actions that surround staging frontline service providers so they can
communicate and maximize the brands value proposition. Questions that might be
asked in this phase may include, for example, how can employees be recruited and
selected that best fit and represent our brands image and personality? Or, what staffing
strategies should be used at each customer-contact point to maximize both revenues and
customer satisfaction? The importance of such considerations is grounded in core
competency theory which places emphasis not on physical assets but rather on the
intangible process or a bundle of skills that employees must learn and possess (Hamel
and Prahalad, 1994). It is critical that hospitality employees provide hospitableness to
the guest and make hospitality based memorable experiences (Pizam and Shani, 2009).
As the performance of the frontline employee is critical to the target market
segments, it is critical to recruit hospitable employees (Hennig-Thurau et al., 2006). Fit
theory derives from interactional psychology which suggests that the person and the
environment or situation combine to affect the persons behavior (Nadler and Tushman,
1980). Worker-environment fit can be grouped into two categories: fit between the
worker and the specific organization and fit between the worker and the tasks
associated with a particular job (usually labeled person-job fit) (Donavan et al., 2004).
For hospitality firms, recruitment is likely to focus on employees who are genuinely
hospitable. Theory of vocational development suggests that people choose vocations on
the basis of the fit between their own personalities and the career (Super, 1953). In
contexts where the primary task is serving customer needs, customer-oriented
employees and fostering that environment through internal marketing efforts are
crucial. Hospitality work is complex, challenging and requires employees to
demonstrate skill in creating memorable experiences (Crick and Spencer, 2011). This
may require a strict focus and plan of relationship building, as the human component is
both integrated and visible.
In the planning phase of hospitality internal marketing, management also needs to
effectively communicate the hospitality firms mission. The employees personality
traits are an important part of their performance and have a direct impact on customers
perceived value (Noe et al., 2010; Bowers et al., 1990). The two-way communication
between the frontline employee and management is crucial in shaping the perceptions of
the target market segments. It is crucial that frontline providers stand behind the
organizations mission. In addition, hospitality must be a philosophy where there is an
emphasis on generosity, kind and hospitable service (Pizam and Shani, 2009).
Managers and marketers must be aware that evaluations are largely influenced by
customer contact employees and can be influenced by designing and planning the
internal environment in terms of human resources management and corporate culture
(Homburg and Frst, 2005). The firm needs to focus its mission on the proposition to use
its resources for specific kinds of human problems, needs, desires and solutions rather
than strictly making products (Vargo and Lusch, 2008). Providing appropriate
hospitable service to target market segments is important in enhancing the customer
experience. The nature of the true hospitality is paramount to communicate internally.
Telfer (2000) suggests that true hospitality is motivated by a sincere desire to please and
care for guests; it is not just about impressing the guest in return for money.

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The literature also examines the inspirational role that management plays in
showing hospitality employees to deliver more hospitable service (Crick and Spencer,
2011). This may include management delegation and empowerment where frontline
employees serve as an extension of management and represent and communicate the
brand. For example, hospitality firms should hire frontline workers who feel
comfortable being empowered to make decisions because such empowerment expedites
decisions at the frontline and enhances the likelihood that the individual will
follow-through to make sure that the client is satisfied after a decision has been made
(Magnini and Ford, 2004). A sustainable competitive advantage often comes from an
outstanding depth in selected human skills, logistics capabilities and knowledge bases
that are specific to the mission of the hospitality firm. Management commitment to
hospitality though organizational support, empowerment and training will lead to
greater employee job satisfaction and higher quality service by frontline employees
(Crick and Spencer, 2011).
A fundamental difference between services marketing and hospitality marketing is
the needs of the customer (Hemmington, 2007). Customers have different needs and
expectations of service in different service industries. That is, the type of service desired
in banking is very different from the type of service desired in an upscale restaurant. In
many service environments, the needs are more functional, whereas in hospitality, the
needs are largely experiential. As the level of customization increases, it requires more
specialized attention and time. As customization is argued to be highly important to
customer satisfaction for hospitality marketing, the planning involved can be complex.
The more content there is in the customer interface, the more complicated it is for the
firm to manage the selection process (Grnroos, 2006); thus, the important need for an
organization to have an effective plan for internal marketing.
The implications of a hospitality specific marketing practice require a specific
purpose and processes for the marketing activities. In terms of hospitality internal
marketing, it points directly to the normative notions of investment in people (Lings and
Greenley, 2005) and the proper planning of communicating the organizations mission,
image and personality. While this has been noted in the literature, it has not been
incorporated in this capacity in current hospitality marketing pedagogy.
6.2 Internal marketing: implementation phase
In the constituency model, the implementation phase of internal marketing involves
managing the ability and motivation of the frontline providers so that they can excel in
their roles as marketing agents on the frontline. Evidently, there are scores of ways to
manage both ability and motivation, but research indicates that role ambiguity, role
conflict and work-family conflict are very common stressors in the hospitality sector
(Noe et al., 2010). As such, two-way communication also plays a key role in successful
hospitality marketing management. A competitive advantage for hospitality firms
stems from dynamic capabilities grounded in high performance routines operating
inside the firm, embedded in the firms processes and conditioned by its history. Internal
communication plays a pivotal role in maintaining and nurturing corporate culture
(Lovelock, 2000). As can be seen in Figure 2, all of the relationships in the constituency
model are bi-directional; thus, subordinate manager communication flow is equally
vital to manager subordinate communication flow. Research indicates that such

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bidirectional communication facilitates understanding, trust (Lewicki and Bunker,


1996) and ultimately job satisfaction.
Employees in hospitality are increasingly seen as embodying the image of their
company (Nickson et al., 2005). Internal marketing of services and human resources
management are closely related (Pitt and Foreman, 1999) and usually involve such
implementation components as training, motivation and information dissemination and
responsiveness (Lings and Greenley, 2005). A firm needs such resources as knowledge
and leadership to develop, manage and implement chains of processes, interactions,
decisions and outcomes (Grnroos, 2006). Therefore, firms should seek to recruit
hospitable team members, seek ways to motivate employees and provide useful training
to improve communication and knowledge (Teng, 2011) to be able to meet the needs of
the target market segments.
Vargo and Lusch (2008) argue that it is critical for a firm to recognize employees as
valuable operant resources and invest in their development. Hospitality marketing
points to all participants in the value-creation process should be empowered in their role
and are considered a primary source of innovation, organizational knowledge and firm
value. A successful hospitality firm must implement the notion of frontline employee
value through two-way communication, job process implementation and delegation.
While research shows the importance of satisfying customers, a tangential issue is to
manage employee behavior so they are able to satisfy customers. Therefore, it is
suggested that successful internal marketing has to implement the firms notions of
customer satisfaction in combination with employee satisfaction, as their is a mirror
effect between the two (Noe et al., 2010).
One of the most challenging tasks in hospitality is displaying authentic, positive
feelings because of the increased amount of interaction between frontline providers and
customers (Noe et al., 2010). It is important to understand that hospitality experiences
are evaluated on both the emotional dimensions as well as the physical environment
(Ariffin, 2013). In this, it is critical for the employee to be an ambassador of the company
to deliver not only the tangible components but also the emotional ones. High positive
affect employees are ideal employees for the hospitality industry (Chu et al., 2012), and
hospitality employees should have a spirit to serve and be hospitable.
The constituency model of hospitality marketing differs from current hospitality
marketing models in the inclusion of internal marketing. To deliver excellent customer
service, firms must internalize the notion that frontline service providers are
quintessentially vital marketing tools. For firms to achieve this, they need to
communicate and implement specific internal marketing activities that serve to manage
both ability and motivation so that frontline providers will yield customer satisfaction,
increased current and future spending, and positive word-of-mouth.

6.3 Internal marketing: control phase


In a general sense, a control phase entails comparing planned and actual results.
Therefore, in the context of internal marketing, the control phase would entail
evaluating frontline provider performance. Examples of questions suitable for this
phase are as follows:
Q1. Over the past year, did our firm attract an applicant pool that fit our brand
image and personality?

Q2. How can our recruitment practices be improved?


Q3. Over the past year, did we have selection practices in place that identify the
candidates that will best represent our firm on the frontline?

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Q4. How can our selection practices be improved?


Q5. Over the past year, did we maximize both the ability and motivation of our
frontline workers?
Q6. In satisfaction surveys, do frontline employees report adequate perceptions of
empowerment, communication openness and trust?

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Q7. How can our training, development and motivational practices be improved?
Q8. Related, did we meet our firms goals in each of these three areas?
7. Interactional marketing
A key tenant of hospitality is the provision of friendly and generous hospitality (Teng,
2011). Interactional marketing happens between the employees and the clients
(Grnroos, 1996) with a particular focus on interactivity, connectively, and ongoing
relationships (Vargo and Lusch, 2004). As Brotherton (1999) details, the emphasis on the
human exchange element is particularly relevant to the distinction of the hospitality
sector (Kandampully et al., 2014). As the main distinctive characteristic of hospitality is
the interactional relationship (Lashley, 2008; Hemmington, 2007) to gain competitive
advantage, frontline employees can be used as operant resources to co-create customer
experiences (Shaw et al., 2011). It is therefore critical to understand the competencies
required by frontline hospitality employees for effective guest engagement (Bharwani
and Jauhari, 2013). In other words, frontline employees should develop a level of
engagement with the role of host and with the guest that goes beyond what is traditional
for the service sector (Baum, 2006). In addition, with the acceptance and widespread use
of technology, the internet and social media, firms also need to consider information
technology in terms of customer interactions (Kandampully et al., 2015). And while
interactions are a key component for hospitality research, interactional marketing is
noticeable missing from hospitality marketing models and textbooks. In a sampling of
service marketing textbooks, interactional elements occurred on 925 pages compared
with only 54 pages in hospitality textbooks.
7.1 Interactional marketing: planning phase
In the constituency model, the planning phase of interactional marketing entails
preparing the service environment and the frontline provider for top-rate interactions.
Questions that might be asked in this phase may include, for example, does the frontline
provider have the verbal and non-verbal skills necessary to deliver exceptional service?
Or are the servicescape and atmospheric cues ready for service delivery?
Without including the interactions between the service provider and the customer
during the consumption process as an integrated part of marketing, successful
marketing cannot be implemented and realistic marketing models cannot be developed
(Grnroos, 2006). A company can influence perceptions of service quality, consumer
satisfaction and repeat purchase behavior by focusing on the interactions carried out by
the customer and the contact employee (Bowers et al., 1990). The design, coordination
and execution of the hospitality service (Pizam and Shani, 2009) greatly affects the

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experience (Teng, 2011). The customer contact and contact points, including customer
contact employees, have grown to include more interactional content, which the
constituency model depicts.
There is a clear need for an organizations culture to be oriented around customers
(Javalgi and Martin, 2007). Customer engagement behaviors go beyond transactions and
are defined as a customers behavioral manifestations that have a firm focus, beyond
repurchase, resulting from motivational drivers (Van Doorn et al., 2010). Hospitality
marketing should focus on the guest-host relationship as emotional bonds are developed
and experienced through interactions (Lugosi, 2008).
The heart of hospitality is in the service experiences created by the firm (Teng, 2011).
Therefore, the servicescape plays many strategic roles, especially in how customers
interact with the physical environment as part of the service. Some researchers argue
that the servicescape is one of the most important elements for a service organization
(Zeithaml et al., 2006) because the physical container affects the social interaction.
Therefore, the servicescape affects not only individual behaviors but also the nature and
quality of customer and employee interactions (Lovelock and Wirtz, 2011). Facility
layout is particularly important in hospitality where research shows it can influence
customer satisfaction, store performance and consumer behavior (Zeithaml et al., 2006).
Customers use the servicescape as an important quality proxy and once designed and
built, service environments are not easy to change (Lovelock and Wirtz, 2011) and
therefore require significant focus in planning the dcor, furnishings, special layout,
signage and ambient conditions (Bitner, 1990). A growing body of research that is
nested in the marketing and partially in the hospitality literature increasingly focuses
upon the importance of drawing upon each of the five senses in the servicescape
(Magnini and Parker, 2009; Zemke and Shoemaker, 2008). Doing so influences the affect
and behaviors of customers and frontline workers and also impacts the resulting
interactions between the two (Magnini and Parker, 2009; Zemke and Shoemaker, 2008).
Furthermore, only recently have service marketers included the social servicescape in
research (Kotler et al., 2014), and many aspects of the social servicescape have largely
been ignored in the literature (Line et al., 2015). This is especially critical given the
interactivity between customers and frontline employees in both the physical and social
servicescape.
7.2 Interactional marketing: implementation phase
The customer interactional process begins with the definition of the individual
customers needs, the development of a personalized solution, and the delivery of the
customized solution to the customer (Davis and Manrodt, 1996). This logic is critical to
success because the frontline service provider adjusts to the customers needs as a direct
result of the interaction (Rust and Chung, 2006). In other words, the organization
interacts with each customer to define their specific needs and then develops a solution
to meet the need (Davis and Manrodt, 1996). As such, it is critical to consider the personal
preferences of target market segments. Hospitality management should focus on
developing the best marketing and service strategies based on the guests specific needs
(Teng, 2011).
Hospitality consumers are more discerning, more demanding and more diverse
(Bharwani and Jauhari, 2013). Successful implementation requires adapting standard
service and creating a customized service that will appeal to the target market segment.

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In addition, it is important to consider all types of interactions on different platforms,


such as in the physical facility, the social servicescape and the online servicescape.
Without including the interactions between the frontline service provider and the target
guests, successful marketing cannot be implemented and realistic marketing models
cannot be developed (Grnroos, 2006). Furthermore, creating and maintaining
long-term, mutually beneficial relationships with the customers are the ultimate goals of
customer-driven firms (Kandampully et al., 2015).
Hospitality marketing focuses on the guest host relationship. It is argued that
customer loyalty to the service firm may increase as the customer comes to believe
the employee sincerely understands the customers needs (Bowers et al., 1990). In
addition, displaying positive emotions assists firms in establishing increased
customer employee rapport, satisfaction and loyalty intentions, all of which are key
objectives of hospitality marketing. Individual behaviors require that the employee
is hospitable and that their behaviors influence the customer hospitality experience
(Brotherton, 1999; Lashley, 2008). It is in this that the emotional bonds are developed
and experienced through interactions (Lugosi, 2008).
As such, a key element in the implementation of interactional marketing is the
focus on interpersonal relationships that build emotional bonds between hosts and
guests. Conscious emotional contagion theory suggests people compare and adopt
others emotions and moods (Barsade, 2002). However, emotional contagion is
affected more by the authenticity of the displayed emotions and less by the mere
display of emotions (Hennig-Thurau et al., 2006). It is during these interactions
between the frontline service provider and target markets segments of guests that
require the hospitality component. Employees need to interact in a positive, warm,
friendly, welcoming and hospitable way (Chu et al., 2012; Teng, 2011). In this vein
(Hennig-Thurau et al., 2006), authentic emotions lead to increased rapport and
greater customer satisfaction. There is evidence to suggest that many customer
contact employees lack the necessary skills or motivation to interact effectively with
customers (Bowers et al., 1990). Customers often claim that dissatisfaction stems
from the unprofessional manner with which the service was provided, in that they
were treated more like an object than an individual (Quelch and Ash, 1981). While
service design is key, the ability to deliver the service is critical (Rust and Chung,
2006) and requires specific implementation, focus on emotional rapport and
interaction. Interpersonal interaction includes body language, display of feelings
and guest host interaction (Teng, 2011) as well as appearance and authentic
smiling (Magnini et al., 2013). A high level of hospitality would foster stronger
emotional ties between the guest and frontline employees and such a relationship
cannot be easily duplicated by other firms, such as competing hotels (Ariffin, 2013).
In addition, physical surroundings, servcicescapes and social servicescapes help to
shape feelings and reactions between customers and employee. These interactions play
significant roles in the interactional component of hospitality marketing (Lovelock and
Wirtz, 2011). Mehrabian and Russell (1974) stimulus response model demonstrates how
environmental stimuli and cognitive processes within the servicescape affect feelings
and then lead to outcomes a firm will want to manage (Donovan and Rossiter, 1982) such
as how much money customers spend and how satisfied they are with the experience
(Lovelock and Wirtz, 2011).

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7.3 Interactional marketing: control phase


A key component for successful marketing is a sense and respond strategy that more
accurately allows management to compare the actual service employees deliver
compared to expectations of service they should deliver. It is critical that hospitality
employees provide hospitableness to the guest and make hospitality about the
experience (Pizam and Shani, 2009). Successful control measures are therefore needed to
evaluate employees performance include providing courteous service, resolving
customer complaints and problems, meeting and exceeding customer needs and being
committed to the company (Ottenbacher and Gnoth, 2005). The control measures should
also ensure that the needs of the hospitality guest are being met. Hospitality firms
should ensure that the host (frontline provider) is able to meet and predict the tangible
and emotional needs of the guest (Lashley, 2008).
Service customization focuses on firms personalizing and individualizing service
delivery based on customers specific needs and desires. This results in more successful,
long-term customer relationships (Rust and Chung, 2006). Relationship building with
customers becomes intrinsic not only to marketing but also to the enterprise as a whole
(Vargo and Lusch, 2004). This is a key contribution of the constituency model as
hospitality models do not include the control mechanism. In the long term, relationship
oriented firms achieve higher overall returns on their investments and increased
revenues (Kumar, 1999). This is therefore critical for hospitality firms as the true
relevance of hospitable interactions goes beyond that of many other service firms
(Hemmington, 2007). Sophisticated accounting systems that document actual costs and
revenue streams over time, a firm can be precise in documenting the dollar value of all
benefits and costs associated with loyal customers (Reinartz and Kumar, 2003).
Another major issue related the heterogeneity of service is complaints that result
from the difference between service expectations and delivery. Firms are regularly
confronted with complaining customers and researchers afford ample attention to the
critical stage of complaint handling, which is argued to truly determine a firms
customer orientation (Homberg and Furst, 2005). For example, research strongly
suggests that, under the appropriate conditions, an excellent service recovery can
potentially increase customer satisfaction and loyalty beyond the degree before a failure
(Magnini et al., 2007). Firms can use a number of ways to encourage and track customer
complaints such as satisfaction surveys, critical incident studies, call centers and
software applications which allow for them to control the success of planned and actual
interactional marketing results.
Servicescapes are being transformed to fit day parts to best serve the needs of the
guest at different periods (Dev et al., 2010). One useful control function is to measure the
productivity of the service environment and operation with metrics such as table
turnover times and revenue per seat at different day parts. Service blueprinting can also
be a valuable tool for communicating within the firm, identifying existing service
evidence and providing a control tool for changing or updating the servicescape to better
manage the service, physical layout and environmental psychology (Zeithaml et al.,
2006). Finally, firms should be cognizant of the fact that the service quality
improvements at the interactional level are investments, and such investments should
be weighed against each other (Rust et al., 1995). In other words, the cost of a training
initiative designed to improve non-verbal cues of frontline associates should be weighed
against the cost of renovating/updating a servicescape.

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8. External marketing
Anything that communicates to the customer before or after the service delivery can be
viewed as part of the external marketing function (Zeithaml and Bitner, 1996). External
marketing involves blending integrated marketing communication elements (e.g.
advertising, public relations and social media initiatives) in a mutually reinforcing
fashion. As previously stated, a fundamental difference between services marketing and
hospitality marketing is the needs of the customer (Hemmington, 2007) where the
experiences created by management and frontline providers lie at the heart of
hospitality (Teng, 2011).
8.1 External marketing: planning phase
In planning and developing the external marketing activities, the focus is not simply on
products, but the customers value creation process. As the main distinctive
characteristic of hospitality is the relationship between the guest and host (Lashley,
2008; Hemmington, 2007) to gain competitive advantage, frontline employees can be
used as operant resources to co-create customer experiences (Shaw et al., 2011). As such,
it is critical to consider the personal preferences of target market segments.
There is a potential for a mismatch between what is communicated through external
marketing and what is delivered in the hospitality setting. This can result in a gap
between expectations and perceptions (Oliver, 1997). Therefore, in planning external
marketing, integrated marketing communications, differentiation and segmentation are
critical to achieving long run profits. For example, a green marketing message may
appeal to all segments, but only some would actually be willing to pay more for such
initiatives (Baker et al., 2014; Chan, 2013).
Firms that disseminate information through multiple channels need to be certain that
customers receive unified messages and promises (Zeithaml et al., 2006). Through
communications, such as advertising, public relations and sales personnel, marketers
explain and promote the value proposition their firm is offering (Lovelock and Wirtz,
2011). Internet advertising, firm websites, third party websites and social media are
becoming increasingly more vital for integrated communication strategies. This is
especially true for many hospitality firms whose customers regularly post information
and reviews on third party websites such as TripAdvisor and Yelp. The relationship
quality encourages guests to spread positive word-of-mouth (Ariffin, 2013). External
marketing should be coordinated across venues to create consistent marketing promises
and is vital for hospitality services marketing education.
As competition intensifies in the hospitality sector, it is becoming increasingly more
important to differentiate products and services in a way that is meaningful to the
customer. According to the resource based view theory, a firm needs to develop a
sustainable competitive advantage in marketing and management (Barney, 1991). To
accomplish this objective, a firm must be able to identify and communicate their rare,
valuable and inimitable resources, which will then lead to long-run profits. Positioning
strategy deals with creating, communicating and maintaining distinctive differences
that will be noticed and valued by the customers with whom a firm would like to develop
long-term relationships (Lovelock and Wirtz, 2011) thereby receiving long-term profits.
It is argued that market orientation within a service domain has been a source of
competitive advantage and has made a direct link to firm performance (Javalgi and
Martin, 2007). For example, competing hotels differentiate themselves by offering

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enhanced services that add value to their core provisions (Ariffin and Maghzi, 2012) and
to their target customers.
It is also essential to understand target market segments and their exposure to
different media as well as consumers awareness of the product and their attitude
towards it. Planning external marketing should reflect an understanding of the service
product and how well prospective buyers can evaluate its characteristics in advance of
purchase (Lovelock and Wirtz, 2011). To plan and achieve these goals, external
marketing needs to identify who the target market is, what should be communicated,
how it should be communicated and where and when the communications need to occur.
8.2 External marketing: implementation phase
Successful external marketing involves more than simply providing hospitableness
(Pizam and Shani, 2009); it means collaborating with customers and being adaptive to
each customers unique and ever-changing needs (Vargo and Lusch, 2004). Specifically,
it requires implementing the planned external marketing initiatives of integrated
marketing communications and customer segmentation to achieve long run profits.
Timing is a key characteristic of hospitality demand, as both the service and the
demand are perishable, thus making it important to specifically manage timing (Rust
and Chung, 2006). When demand exceeds capacity for a specific time, then the
opportunity for a sale is lost. For example, a 100 room hotel can only sell those 100
rooms per night, even if the demand for that specific night is above 100. As such, much
research within the field of service has specifically applied revenue management
concepts (Kimes, 1989). The perishability of hospitality products requires that pricing
be adjusted based upon supply, demand and timing. Once the night has passed, a hotel
cannot sell that room for that night, nor can a restaurant fill more seats. This is another
specific difference between hospitality firms. As described by Kimes (1989), revenue
management is the process of allocating the right inventory to the right customer at the
right time, at the right place, with the objective of maximizing revenue.
Firms can also manage demand by the shaping of expectations of consumers (Rust and
Chung, 2006). The internet has influenced this in media such as blogs and the amount of
information provided and accessible to service driven consumers. The internet now allows
for customers to spread word-of-mouth more globally and therefore have the potential to
greatly impact a firms reputation and brand (Sparks and Browning, 2010). Examples
include both posting on online outlets such as Facebook and Twitter and also making
reviews on websites such as Trip advisor, Yelp and Urbansppon where customers post and
read product and service reviews.
The breadth of eWOM scope and the ease in accessing reviews can deeply affect a
firms performance and companies are increasingly seeking to understand the factors
that influence eWOM (Cantallops and Salvi, 2014). Furthermore, the advent of the
internet has opened up new possibilities for personal interaction with the customer and
customization of service to better suit customer needs (Rust and Chung, 2006). This
two-way communication allows for the ability to interact directly with the consumer by
customizing service offerings. This two-way customer communication can provide a
more accurate view of how preferences shift (Rust and Chung, 2006) and impact external
marketing initiatives over time.

8.3 External marketing: control phase


The control phase of external marketing entails comparing actual with planned results.
Therefore, examples of question in this area might include:

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Q1. Did we reach the desired target audiences with our advertising initiatives?
Q2. Did we earn our intended return on investment (ROI) on our advertising
initiatives?
Q3. Did we reach the desired target audiences with our social media initiatives?

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Q4. Did we earn our intended ROI on our social media initiatives?
Generally speaking, results in these areas can be analyzed in part through competitor
data to benchmark capture and occupancy rates in comparison to primary competitors.
Revenue management algorithms can also be evaluated in this phase as well. Revenue
management is unique to service firms because of the varying demand across time
periods. Finally, emerging hospitality thought has an increased focus on customer
lifetime value (Dev et al., 2010). Customer lifetime value and customer-profitability
analysis are of significant marketing significance and allow managers to analyze
external marketing policies (Karadag and Kim, 2006). Thus, did external marketing
initiatives attract consumer with high lifetime values for the firm.

9. Theoretical implications
The hospitality industry is one of the largest revenue generators in the world, one of the
largest employers in the world and has dedicated journals and an increasing number of
hospitality specific academic programs. As such, it is important to examine how services
marketing can inform hospitality marketing, research and pedagogy. Very little research
reviews and integrates the services marketing theories and principles into the hospitality
literature (Kandampully et al., 2014). The lack of hospitality specific marketing theory was
the impetus for developing the constituency model especially given the call for this type of
research. Many of the hospitality marketing textbooks focus largely on external marketing
concepts and slight over the interactional and internal marketing functions. However,
hospitality management can differ from other services in the high amount of hospitableness
and the high proportion of frontline employee interactions that require genuine care and
hospitableness. The literature supports that given the high human and hospitable
component that characterizes the hospitality industry that internal and interactional
marketing components need to be incorporated more clearly into the hospitality marketing
literature.
Researchers state that the conditions inherent in the hospitality industry present
opportunities for hospitality scholars to contribute to theory development (Line and
Runyan, 2012) and that there is a need for more research and conceptualization
regarding hospitality and marketing research. Therefore, given these gaps in the
hospitality marketing literature, the authors developed a more representative model for
hospitality marketing: the constituency model. The development of this model hopes to
provide academics and practitioners with a more comprehensive framework and to
progress hospitality specific marketing research and theory development.

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10. Practical implications


The development of the constituency model possesses managerial relevance, as it more
representatively encompasses hospitality marketing theory and practice. As such, it seeks to
be useful to the constituents of firms, management, and employees in detailing the
components involved with hospitality marketing: external, interactional and internal
marketing combined with the planning, implementation and control functions. Hospitality
specific examples and explanations of each component are offered that may provide useful
to managers in structuring their internal and interactional marketing components based on
their specific target markets. From a pedagogical perspective, the constituency model
provides a relevant and responsive framework that can better prepare students as managers
and provides a theoretical framework in which to gain long-term value through the
educational process. To reiterate, the purpose of this article is not to be critical of current
hospitality marketing literature or current hospitality marketing pedagogy, but rather to
offer the constituency model that more closely encompasses the dominant thought in
services marketing and reflects the distinctiveness of hospitality by more thoroughly
incorporating the internal and interactional marketing components. The extant body of
services marketing literature has a much greater focus on interactional and internal
marketing topics than does the current body of hospitality marketing literature. Due to the
heavy human component of hospitality offerings, the employees are often the most critical
marketing tool in most (if not all) hospitality operations. The hospitality literature does
contain some very good studies related to the use of employees as marketing tools, but such
articles are often not considered marketing studies under the current dominant paradigm in
our field. Perhaps a paradigm shift is warranted?
11. Limitations and future research
Regarding pedagogy, as with any academic course, there will always be a trade-off
between breadth and depth of topic coverage. Through the most recent literature
reviews (Dev et al., 2010; Line and Runyan, 2012; Morosan et al., 2014), the hospitality
literature and textbooks focus much more of their content on external marketing.
Services marketing courses typically provide substantive coverage of internal and
interactional concepts, but interestingly, these concepts are more germane to the
hospitality industry than most other service sectors. With this trade-off in mind,
hospitality educators are encouraged to consider greater coverage of internal and
interactional marketing topics given that entry-level management positions encompass
more of these functions than external marketing functions. This is not to say that one
course can necessarily encapsulate all the interactional, internal and external hospitality
marketing components, but rather to encourage discussion and improvement in
pedagogy by refining the contents to more accurately reflect the specifics of hospitable,
interactional service between the guest and the frontline service provider.
Future research should investigate more fully the connections between target market
segments and management, management and frontline service providers, and frontline
service providers and target market segments. Of particular note would be for more
hospitality research to examine the internal and interactional marketing connections, as
much of the current research focuses on the external components. Additionally, more
empirical research can investigate the relationships between the planning,
implementation and control functions. As previously stated, hospitality represents a
unique kind of service, yet such a distinction is rarely considered (Kandampully et al.,

2014). As such, future research is needed to seek to understand more fully, through both
quantitative and qualitative methods, the impacts that distinguish hospitality, such as
the emotional bonds between a guest and a host, and internal and external branding.

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12. Conclusion
Based upon the gap between services marketing and hospitality marketing literature
and models, this research sought to build a new model for hospitality marketing. The
constituency model of hospitality marketing conceptualizes hospitality marketing
activities as internal, interactional and external. In addition, each activity incorporates
the functions of planning, implementation and control. We hope this model provides
benefit to hospitality researchers in theory development, students and academics in
hospitality pedagogy and to practitioners in the hospitality industry.
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Corresponding author
Vincent P. Magnini can be contacted at: magnini@vt.edu
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