Chapter 1

• Tourism and Hospitality Marketing is a fundamental element of the hospitality industry.
• The hospitality and travel industry are experiencing rapid changes, making it important for students to understand the concepts and theories of Hospitality and Tourism Marketing.
• Marketing is both an art and science, developing creativity while applying concepts and strategies.
• Service Management Concepts for the Hospitality Industry: The Service Profit Chain, Inseparability, Variability, Perishability, and Intangibility.
• Managing Service Quality: With hospitality products, quality is measured by how well customer expectations are met.
• Managing Perceived Risk: The high risk that people perceive when purchasing hospitality products increases loyalty to companies that have provided them with a consistent product in the past.
• External Marketing: External marketing is the action of promoting your business and its services.
• Growing Share of Customer: Beyond simply retaining good customers to capture LTV, good CRM can help marketers to increase their share of customer-the share they get of the customes purchasing in their product categories.
• Internal Marketing: The service firm must effectively train and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction.
• Building Customer Equity: Customers equity is the discounted LTV’s of all the company’s current and potential customes.
• The Service Culture: The service culture focuses on serving and satisfying the customer.
• Manage Service Productivity: Resolving customer complaints is a critical component of customer retention.
• Managing employees as part of the product: In the hospitality industry, employees are a critical part of the product and marketing mix.
• Managing Capacity and Demand: Because services are perishable, managing capacity and demand is a key function of hospitality marketing.
• Interactive Marketing: The perceived service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.
• Managing differentiation: The solution to price competition is to develop a differentiated offering.
• Demand are human wants that are backed by buying power.
• Wants are the form that a human need takes when shaped by culture and individual personality.
• The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors.
• The production concept is one of the oldest philosophies guiding sellers, focusing on production and distribution efficiency.
• Marketing management orientations guide the design of strategies that build profitable relationships with target consumers.
• The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features.
• Market offerings are the combination of tangible products, services, information, or experiences offered to the market.
• Customer relationship management (CRM) involves managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty.
• The selling concept holds that consumers will not buy enough of the products unless the company assumes a large selling and promotion effort.
• The benefits of customer loyalty come from continued patronage of loyal customers, reduced marketing costs, decreased price sensitivity of loyal customers.
• Demand is the value, expectation, and satisfaction offered to the market.
• Customer value, customer expectations, and satisfaction are key elements in marketing management.
• The societal marketing concept holds that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumers and society’s well-being.
• The company must decide who it will serve by dividing the market into segments of customers and selecting which segments it will go after.
• Marketing management aims to design winning strategies that build profitable relationships with target consumers.