Chapter 1

Introduction

Marketing
for
Hospitality
and Tourism

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
 “Marketing is so basic that it cannot be considered a
separate function. It is the whole of business seen from
the point of view of its final result, that is, from the
customers point of view…Business success is not
determined by the producer, but by the customer.”

-Peter Drucker

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Course Overview
1. Understand the hospitality and tourism
marketing process

2. Recognize developing hospitality and

tourism marketing strategies

3. Understand how to develop the hospitality

and tourism marketing mix

4. Comprehend managing hospitality and

tourism marketing
©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Chapter Objectives
1. Understand the relationships between the
world’s hospitality and travel industry

2. Define the role of marketing and discuss its

core concepts

3. Explain the relationship between customer

value satisfaction and quality

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Chapter Objectives

4. Discuss how marketing managers go about

developing profitable customer relationships

5. Understand how the marketing concept calls

for a customer orientation

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 The Travel Industry
• The travel industry is the world’s largest

• One billion international travelers by 2010

• Over $1.5 trillion in receipts by 2010

• Explosive growth in the past 30 years (Dubai,

Cancun, and other destinations)

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Customer Orientation
• The purpose of business is to create and
maintain satisfied, profitable customers
• Put the customer first and reward
employees for serving customers well

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Customer Orientation
• Without customers assets have little value
• Why does Michael Leven, CEO of US
Franchise Systems, say its important for
businesses to have a customer orientation
approach?

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 What is Marketing?

Marketing is a social and managerial

process by which individuals and groups
obtain what they need and want through
creating and exchanging products and
value with others

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Marketing Manager

A person involved in marketing

analysis, planning, implementation,
and control activities

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Core Marketing Concepts

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Needs, Wants, and Demands

• A human need is a state of felt deprivation

• Wants are how people communicate their

needs

• When backed by buying power, wants become

demands

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Product
A product is anything that can be offered to satisfy a need or a want
•

What are some travel and tourism “products” that you can list?
•

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Value, Satisfaction, and Quality
• Customer value is the difference between the
customer benefits from owning and/or using a
product and the costs of obtaining the product
• Customer satisfaction is perceived value
delivered relative to a buyer’s expectations
• Quality is the totality of features and
characteristics of a product or service that bear
on its ability to satisfy customer needs

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Exchange, Transactions, and
Relationship Marketing
• Exchange is the act of obtaining a desired
object from someone by offering something in
return
• A transaction is marketing’s unit of
measurement and consists of a trade of values
between two parties
• Relationship marketing is building strong
economic relationships between with social ties
by following through on promises

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Markets

A market is a set of actual and

potential buyers who might
transact with a seller

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Marketing Management
Marketing management is the analysis,
planning, implementation, and control of
programs designed to create, build, and
maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Marketing Management
Philosophies

• Manufacturing
• Product
• Selling
• Marketing
• Societal Marketing

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Manufacturing Concept
• Consumers favor available and highly
affordable products

• Management should improve production

and distribution systems

• However, don’t forget the customer!

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Product Concept

• Consumers prefer existing products and

product forms
• Management’s job is to develop good
versions of these products
• Inward focused like the Manufacturing
Concept, so don’t forget your customers!

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Selling Concept
• Consumers will not buy enough products
unless the company undertakes large
selling and promotion efforts
• Aim is to maximize sales without worrying
about customer satisfaction
• Fails to establish a long-term relationship
with customers

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Market Concept
• Achieving organizational goals depends on
determining the needs and wants of target
markets and delivering desired satisfaction
better than competitors
• Creates long term customer relationships
• Frequently confused with “Selling Concept”

©2006
©2006 Pearson
Pearson Education,
Education, Inc.
Inc. Marketing for Hospitality
Marketing forand Tourism,and
Hospitality 4thTourism,
edition 4th edition
Upper
Upper Saddle
Saddle River,
River, NJ
NJ 07458
07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Marketing and Sales
Concepts Contrasted

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Societal Marketing Concept
• Organization should determine the
needs, wants, and interests of target
markets and deliver the desired
satisfaction more effectively and
efficiently than competitors in a way that
maintains or improves the consumer’s
and society’s well-being

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Importance of Marketing
• Corporate giants have increased marketing
importance for entire industry
• Predicted hotel consolidation into 5 or 6
chains will create intense competition
• Growing competitive pressures increasing
importance of the Marketing Director

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 The Future of Marketing
• Rapid changes make yesterday’s
techniques out-of-date

• All company departments are becoming

involved in satisfying customers

• A focus on internal as well as external

marketing
©2006 Pearson Education, Inc. Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Best Practices
• Four Seasons and putting customers first
• Singapore Airlines and its top ranked product
• Dubai – ridding itself of its reputation of being
the “smuggling capital of the Arab world”
• Hong Kong and the “world’s best airport”

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Best Practices
• Accor and L’esprit Accor concept
• Ritz Carlton delivering “memorable
experiences”
• McDonald’s QSC&V principle
• “DC Briefcase Incident”

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Key Terms
Create and maintain customers

Demands

Exchange

Hospitality Industry

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Key Terms
• Human need

• Human want

• Manufacturing Concept

• Market

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Key Terms
• Marketing

• Marketing Concept

• Marketing Management

• Marketing Manger

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Key Terms
• Product

• Product Concept

• Quality

• Relationship Marketing

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
 Key Terms
• Selling Concept

• Societal Marketing Concept

• Transaction

©2006 Pearson Education, Inc. Marketing for

Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens