The world of 21st century is an arena that promotes fast growth, tremendous development and high competition. The high level of internet connectivity in various corners of the world, along with the existence of the open economies has provided the platform for demand of products and services of international standards. The luxury sector, especially the hospitality sector always demands international standards and qualities of services mostly because of its need to maintain a homogenous quality and standard of high level of customer service at all of its location of presence.
It is important to say that in the steady cycle of economic peaks and troughs that has continued to affect the business prospects of various countries in the recent times; the luxury hospitality sector has always maintained a steady level of growth all the time. The reason behind it can be attached to the fact that the luxury sector always experiences an inelastic demand mostly because of its significant choosing of its target audience, which are mostly comprised of the elite and extremely rich people.
Brief on Service Marketing
Services can be defined as a concept which represents intangible actions and attributes that are performed by individuals or a team of individuals for the purpose of providing superior level of value perception to the consumers in regards to their individual requirements of value of tangible or intangible nature (Rao, 2011, p. 5). Talking a little more about services, it can be said that because of its characteristics, services are a little different from the products. In case of services, the characteristics like the intangibility, homogeneity, inseparability and perishability exists.
(Shanker, 2002, p. 36). While talking about marketing of services, it is important to mention that it surely includes the marketing features associated with the highly popular 4P’s concept. For the purpose of attaining success in a highly competitive environment, the value of services needs to be created, communicated, distributed and captured for the right target audience. However, it is very important to mention that there are three other variables that help in the process of providing value to the customers. The factors of people, process and physical evidence has to be mentioned without ignorance (Bhattacharya, 2006, p. 117). The existence of the three new variables is very important as it helps in a great way in the process of communication of value of the services to the consumers (Zeithaml & et.al, 2011, p. 21). It can be said that for the purpose of providing high level of services to generate superior customer satisfaction and hence increase profitability of the services, analysing of the services in regards to its ability to meet customers’ expectations is very important on a regular basis. For developing a successful analysis of the services, the GAP model can be used (Lamb, Hair and McDaniel, 2008, p. 354). It is important to mention in these regards that the GAP model of service quality tries to analyze the service offerings of any enterprise from the perspectives of both the customer as well as the service provider. Source: Lamb, Hair and McDaniel, 2008, p. 354 Overview of customer relationship marketing (CRM) It has to be said that in the case of customer relationship marketing, it belongs to the division of marketing of services. In the context of marketing of products as well as services, it has often been realized that retaining of customers helps in increasing the profitability of the organization at a comparatively lower costs, rather than aggressive acquisition of new customers on a regular basis