Chapter 1

Introduction
Marketing
for
Hospitality
and Tourism
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition

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 viewBusiness success is not
determined by the producer, but by the customer.
-Peter Drucker

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Chapter Objectives
1.

Understand the relationships between the

worlds 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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

The Travel Industry

The travel industry is the worlds 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.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Marketing Manager
A person involved in marketing
analysis, planning, implementation,
and control activities

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Core Marketing Concepts

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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 buyers 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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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 marketings 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.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Marketing Management
Philosophies

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Manufacturing
Product
Selling
Marketing
Societal Marketing

Marketing for
Marketing
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Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Manufacturing Concept
Consumers favor available and highly
affordable products
Management should improve production
and distribution systems
However, dont forget the customer!

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Product Concept
Consumers prefer existing products and
product forms
Managements job is to develop good
versions of these products
Inward focused like the Manufacturing
Concept, so dont forget your customers!

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.
Upper
Upper Saddle
Saddle River,
River, NJ
NJ 07458
07458

Marketing for
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Marketing
forand
Hospitality
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Marketing and Sales

Concepts Contrasted

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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 consumers
and societys well-being

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

The Future of Marketing

Rapid changes make yesterdays
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.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
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 worlds best airport

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Best Practices
Accor and Lesprit Accor concept
Ritz Carlton delivering memorable
experiences
McDonalds QSC&V principle
DC Briefcase Incident

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Key Terms
Create and maintain customers
Demands
Exchange
Hospitality Industry

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Key Terms
Human need
Human want
Manufacturing Concept
Market
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Key Terms
Marketing
Marketing Concept
Marketing Management
Marketing Manger
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Key Terms
Product
Product Concept
Quality
Relationship Marketing
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Key Terms
Selling Concept
Societal Marketing Concept
Transaction

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens