An Overview of

Marketing in the
Hospitality Industry
INTRODUCTION:
The tourism and hospitality industry represents an ever growing sector
that comes well within service industry and is composed of activities
like accommodation, transport, event planning, theme parks, cruise line,
and much more.

Philip Kotler (2002) Marketing is the science and art of exploring,

creating, and delivering value to satisfy the needs of a target market at a
profit. Marketing identifies unfulfilled needs and desires.
INTRODUCTION:
Kotler, Bowens, and Makens (2010) define marketing as the art
and science of finding, retaining, and growing profitable customers.
Finding, retaining and growing profitable customers need strategic
planning to ensure customer satisfaction and building of customer
loyalty.
The American Marketing Association (2013) marketing is the
activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
value for customers, clients, partners and society at large.
CORE MARKETING
CONCEPTS
[Link], wants and demands;
[Link]/ Market Offerings;
[Link], Satisfaction, and Quality;
[Link], transactions, and relationship;
[Link]
 NEEDS, WANTS, AND
• Needs are states of felt deprivation, personal necessities that motivate
DEMAND
behavior, and things that people cannot live without.
• Wants, on the other hand, are the form taken by human needs as they may
differ from person to person. These are needs shaped by culture and
individual personality. Every human being requires food but what form
they take food is different due to the cultural and social attributes of an
individual.
• The concept of demands comes into the picture. When supported by
purchasing power, or the ability to buy, wants become demands.
PRODUCTS/ MARKET
OFFERING
A product is anything offered for sale to satisfy a need or
want.
Tangible products are called goods.
Intangible products- are known as services and experiences
offered to a market to satisfy consumer needs. A product
may also pertain to intangibles like a haircut, massage,
patient counseling, entertainment, etc.

 
 VALUE, SATISFACTION,
AND QUALITY

• When deciding which product to buy and where to

buy it, customer value should be considered. The
customer compares the cost of the product with the
benefits he gains from using the product.
 VALUE, SATISFACTION,
  AND QUALITY
• Customer satisfaction refers to the difference between the buyer’s
expectation and the perceived performance of the product. Before making
any purchase, a customer would already expect in mind and his/ her task is
to look for a product that he thinks would perform and deliver according to
his expectations.
 
• Customer satisfaction is closely linked to quality. Quality is what the
customer says it is. The decision- maker and the final evaluator of quality is
the customer. Indeed, quality must begin with customer needs and end with
customer satisfaction.
 
 THE MARKETING MIX

• Success in marketing is determined

by four equally important factors
that are collectively known as the
marketing mix. These are Product,
Price, Place, and Promotion.
• Kotler (2010) says that marketing facilitates the exchange
process and the development of relationships by carefully
examining the needs and wants of consumers, developing a
product or service that satisfies these needs, offering it at a
certain price, making it available through a particular place or
channel of distribution, and developing a program of promotion
to create awareness and interest.
a. Product or Service- is what the company is offering to satisfy a
consumer’s want or need.
b. Price- the price is the value that the seller puts on the product or
service. This includes the cost of the product and the profit the
seller wishes to make.
C. Place- is the means by which the product
or service reaches the consumer.
D. Promotion- is the strategic plan by
which customers are informed about the
product or service and its value.
. A promotional strategy aims to show consumers why they
would need a certain product and the reasons for buying it
over other products. Example: advertising through
popular channels: 
• word-of-mouth seeding,
• social networking;
• Instagram campaigns;
• print marketing;
• television commercials;
• email marketing campaigns;
• social media marketing and more.
UNIQUE
CHARACTERISTICS OF
THE TOURISM
INDUSTRY
a. Intangible- tourism products cannot be
touched, smelled tasted felt nor heard prior to
purchase. They cannot be subjected to prior
scrutiny.
 UNIQUE CHARACTERISTICS OF
THE TOURISM INDUSTRY

b. Inseparable- the tourism product cannot be separated from the

consumer. When tourists avail of products and services, they have to
personally go to where the products are.
 UNIQUE CHARACTERISTICS
OF THE TOURISM INDUSTRY

c. Perishable- the tourism product is one of the most

highly- perishable of products. Perishability, as
used in this context, refers to not being able to
forward inventory to the next day.
 UNIQUE CHARACTERISTICS OF
THE TOURISM INDUSTRY

d. Seasonal- seasonality does not only refer to seasons of

the year or the weather conditions. It also refers to
behavioral patterns of the travel market. The seasonality
of the tourism product hinders it from maximizing its
profits all year round.
 UNIQUE CHARACTERISTICS OF
THE TOURISM INDUSTRY

e. Substitutable-competition in the tourism industry is

intensifying. With new destinations emerging and
competing in the global marketplace, one destination
can easily be substituted for another destination. With
the many choices available, the tourism product is
highly substitutable.
 
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LISTENING!