The Present Marketing System of Hilton Hotel - Case Study Example

Marketing and Communication Plan for Hilton Hotel Executive Summary Hotel Industry assumes great importance in the economic status of a country as a sizable portion of the foreign exchange earned by the country is contributed by hospitality industry including hotels and tourism. The success of hotels and hospitality industry is largely depended on the extent to which regular customers are retained and new customers are created. However, retaining existing customers is accepted as the modern strategy of business marketing as it involves less costs and efforts unlike creating new ones. Customer Relationship Management (CRM) has emerged as a tool to reinforce the role of customers in the success of a business. Maintaining relationship with customers is highly impossible for a firm unless it has an efficient marketing system. The marketing system should be planned and executed in such a manner that existing customers are retained and new customers are created. In this context, Hilton Hotel has approached us to prepare a report on the present marketing system and finds the possibilities of developing a new marketing and communication plan for the firm. After an analysis of the present system of marketing, promotional activities, advertisement, marketing plan and communication system, a detailed report is prepared and presented as indicated by the client. The report contains the proposed plans of promotion, advertising and communication of marketing information which are to be implemented to realize the cherished goal. Introduction Increased competition has urged all business organizations to focus their attention to existing operations with utmost care so as to ensure survival and existence in the globalised market. All entities are facing stiff competition that pave the way for restructuring their strategies and finding new markets and customers. The well known fact 'customers are the king' will never get diluted as the very existence of business organization depends solely on customers and their satisfaction. Customer satisfaction is the blend of series of successful marketing efforts by an organization. The marketing efforts include a complex mix of many activities such as promotion, advertisement, marketing planning and communication and so on. To achieve the goal of marketing,-customer satisfaction- business has to endlessly put efforts to develop new and improved marketing strategies and implement the same to reach customers and effect sales. The Present Marketing System Hilton Hotel, started its journey back in 1919, has become one of the favorite brand of business and leisure travelers worldwide. The hotel group has grown to a network of more than 500 hotels and resorts in almost all major cities across the world. The hotel group has achieved many mile stones in its journey to become the perfect companion of travelers all over the world. It is evident from their growth that the marketing strategies of the hotels have been successful since its inception. They have been trying to adapt to the changing business environment and to flourish in a competitive market. Target market and segmentation Hilton Hotel group mainly focus on business and leisure travelers who are from different parts of the world. The target market has been segmented on the basis of customer class and type of journey. Business executives usually prefer economy class who budget their travel and accommodation well before tour is fixed. But, leisure travelers prefer luxury and executive class where they need high class service irrespective of the price. Product Life Cycle and Marketing Communication The hotel has already achieved its growth stage as it has been in existence for many years. In fact, when its product life cycle stage is considered as a whole, the hotel is in its saturation stage where it faces stiff competition from similar hotels. Marketing communication at this stage is very important. When there are many hotels to meet limited demand in the market, it is likely that customers may not know about the new products and services that the hotel is offering to its customers. The success of hotel industry is largely dependent on the marketing efforts to satisfy the guests on the property. They must be provided with the services for which they have been longing for. Getting satisfied customers is not an easy task as many think. It is known that customers have personal preferences and individual care and attention is needed to achieve customer loyalty for a service industry to sustain. Therefore, the extent to which guests are satisfied and retained will decide the survival and existence of hotels. At present, the hotel is focusing on creating new customers through new technologies and facilities such as online reservation system and internet advertisement. The group has a successful team of sales personnel who gather information on customers' satisfaction/dissatisfaction, which will help the firm to further improve its quality of service. The present communication system involves internet advertisement and conventional marketing tools. The hotel has set up marketing teams at various places across countries where it has no branches. The hotel is offering an internet based reservation system in which every customer can create an individual account to effectively carry out transactions and avail customized services. Through its newsletter service, account holders are constantly receiving email alerts from the hotel group to update themselves on hotel news and offers. However, mere customer service does not amount to customer loyalty. Customer loyalty is not an event; it is a process or program that involves all efforts by a firm to keep customers satisfied and happy with the firm. Loyal customers offer good rating by favorable word of mouth and thereby enhancing the number of loyal customers. The Proposed Marketing System Based on the analysis of the present system of marketing communication and promotion, the following points have been recommended to further achieve loyal customers and increase the business turnover. The hotel has been striving to attain new customers by engaging in conquest marketing. But, this strategy is no longer found fruitful in the changing environment and stiff competition. It is better to adopt loyalty marketing or retention marketing as the marketing strategies. Customer Relationship Management Modern marketing efforts are aimed at customer satisfaction through customer relationship. Customer Relationship Management (CRM) revolves around the firm's approach toward customers to provide high level of customer care and attention along with quality product and service. The marketing philosophy of profit maximization through customer satisfaction gets undermined with the emergence of CRM. Therefore, the hotel should strive to attain the loyalty of existing customers and maintain them as loyal customers forever. The introduction of CRM will have much impact upon the present customer relationship and will lead to increased sales and profit. A full-fledged CRM strategy involves customer complaints handling system, responding to angry customers and measuring constantly the customer satisfaction level. Customer complaints are necessary to improve the service quality and quick response to customers' query will enhance customer satisfaction and loyalty. It is also necessary to resolve the customer complaint on the first call itself as it results in further incurrence of cost such as unnecessary additional contacts. Communication Methods Media advertisement has been a successful communication method for hotel industry as customers are from different parts of the world. Among the various media selected, more emphasis should be given to Television Channel and internet. Popular channels such as family channels and sports channels are proposed to be used for advertisement. By selecting sports channel, business executives and leisure travelers' attention can be caught. Internet has much superiority over conventional methods of communication. The most attractive benefit is wide and fast customer reach. In addition to that, wireless paging systems and radios are advised to be used for staff to staff and customer interactions. The customer reservation system must be upgraded so as to enable them to communicated from anywhere at any time. New technologies such as Table Management software solutions, integrated with wireless communications platform can improve the quality of service to future customers. Instant messaging system can also be introduced so as to get in touch with customers and keep them as loyal customers of the hotel. Online blogs are another innovative means of effective communication between customers and hotel. Through a blog the customers are allowed to post comments on the blogs created by the hotel. It is also advisable for the hotel to launch new products and services through conventions. The convention method has assumed much popularity over the last few years and it can catch the attention of many, especially business people. Before deciding upon the method of communication, the first thing to be decided by the marketer is what is to be communicated to the buyer, to whom the message be passed and when and how it is to be passed (Marketing Communication). Customer attitude is also very important as their purchasing decisions are largely influenced by their attitude toward the marketer/producer. Ideal Promotional Mix Having a good promotional mix is a sine qua non of any business. Promotion mix is all about how an organization markets its products through various means such as advertising, personal selling, publicity and sales promotion. A perfect blend of these elements in the marketing efforts can bring marketing success and customer satisfaction. These four elements are discussed in the context of Hilton hotel in the following paragraphs: Advertisement The selection of advertisement media is very important as it determines the effectiveness with which communication between the customer and hotel take place. Television and internet are the prime media for Hilton hotel. The customers are largely of regular customers and they are highly affordable to modern communication methods. News papers and magazines can also be extensively used, but it is better to avoid billboard posters and hoardings. Personal Selling It creates a sense of belongingness among customers. It adds personal relationship between the hotel staff and customers, which will help the hotel to maintain the existing customers and creating new customers. Personal selling facilitates CRM approach of marketing. The hotel can implement AIDA (Attention, Interest, Desire and Action) Model of Communication Plan. In fact, it is one of the traditional models of marketing communication and an ideal method for personal selling. It means and includes all efforts taken by the marketer in fulfilling the objectives of customer requirements through inviting the attention of customers, creating interest and desire to buy the product and stimulating them to execute their purchasing decision. This advertising model believes that the basic objective of any advertising activity is to effect sales and for that market should pass through a series of sequential steps (Grover, 2006). Publicity Publicity includes all methods other than advertisement for the creation of brand awareness among the public at large. Hotels usually have Public Relations officer who is concerned with maintaining good rapport with the locale and priority customers. Sales Promotion It involves all means other than the above three adopted by a firm to boost sales. Sales offer, coupons, value added services, after sales service etc are some of the forms of sales promotion. The hotel can introduce appealing incentive schemes and offers not only to maintain the existing customers but to create new customers as well. References Hilton Hotel, Travel Should Take You Places, Online. 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