The Concept of Hospitality Marketing - Assignment Example

Hospitality Marketing Table of Contents Question 3 Question 2 6 Question 3 8 Question 4 10 Works Cited 13 Question The management orientation concept of the organizations involves values which significantly follow a culture which encompasses the operations and various practices of the organization. In the context of hospitality industry, the organizations involve different orientation concepts at diverse places and times comprising product or service, selling, operations, bottom-line operations as well as marketing orientation (Shoemaker & Shaw 16). Product/Service Orientation The product/service orientation concept considerably facilitates companies operating in the hospitality industry in terms of implementing various marketing strategies especially promotional and advertising campaigns in order to communicate about their facilities and availabilities regarding foods and services to a large group of customers. They communicate about the offerings of their exceptional foods, services, designed lobbies as well as their attractive locations. Moreover, the hospitality industry also focuses to communicate about their quality and value based services for the customers (Shoemaker & Shaw 18). However, the product/service orientation approach has also certain drawbacks which might affect the performance of the companies operating in the hospitality industry. The major problem in the product/service orientation approach can be identified as the offerings of the organizations may not be adequate as per the needs and the desires of the customers (Shoemaker & Shaw 18). This orientation can potentially cause a gap between the expectations of the customers related to the offered product/service and the actual provided product/service. This orientation can positively affect word-of-mouth and customer loyalty due to reason that a satisfied customer will be willing to recommend the used service or product to his/her peers or colleagues. Operations Orientation The operations orientation concept of an organization involves the categorization process of the operations in order to efficiently achieve the goals and objectives of the organization. The concept facilitates the organizations to design the roles and the responsibilities of the members allocated in different operational levels of the organization. The operations orientation concept aids to develop the practice in the operational divisions as per the needs and the requirements of the customers (Shoemaker & Shaw 17). However, the operations orientation concept also can impact on an organization’s efficient functioning due to an inadequate understanding of the consumer desires and needs which might create a gap between the services of the organization and expectations of its consumers. This inappropriate judgment of customer needs further affects the organization’s financial performance due to the requirement for reconsidering business strategies for efficiently operating various functions. It might also negatively impact on customer loyalty and word-of-mouth (Shoemaker & Shaw 17). Selling Orientation The selling orientation approach in the hospitality industry emphasizes on an organization’s different selling concepts which are focused towards delivering promotional campaigns in order to increase the sales of the products and/or services of the organization. An effective implementation of selling orientation approach can provide beneficial outcomes for the companies in hospitality industry to achieve greater customer base, financial benefits and it also increases brand image and loyalty of the organization (Shoemaker & Shaw 19). However, the selling orientation approach in the hospitality industry frequently involves large sales force and higher advertising budget which may also lead to incur financial loss for the organization. This orientation approach can cause a gap between the actual anticipated features depicted through the promotional campaigns and the real features that are provided to a customer. Thus, any miscommunication in selling activities can cause a negative impact on customer loyalty and word-of-mouth (Shoemaker & Shaw 19). Bottom-Line Orientation The bottom-line orientation concept in the hospitality industry provides the benefit of yielding an adequate return on the invested amount. Moreover, an effective bottom-line concept is also beneficial to smoothly operate different operations within the hospitality industry based organization because it enables to build effective collaboration among the employees from different levels in the organization (Shoemaker & Shaw 19). On the other hand, in the bottom-line orientation concept it is required to maintain a superior control mechanism in order to ensure higher productivity and financial returns. Therefore, the organizations functioning in the hospitality industry must need to possess adequate structures to effectively execute each task with appropriate inputs from the members within the organization (Shoemaker & Shaw 19). This orientation potentially can cause a gap in communication and understanding between different levels of individuals in the organization, which might negatively affect service delivery process resulting in negative word-of-mouth and decreased customer loyalty. Marketing Orientation The marketing orientation approach is one of the major concepts employed by the organizations functioning in the hospitality industry which facilitate to achieve competitive advantage in the market. The concept helps the organizations to increase the willingness of the customers and it also assists the organizations to attain new customer segment for its products and services. It facilitates to achieve competitive advantage through effectively implementing the major elements of marketing mix which enables to build a sustainable position in the market (Shoemaker & Shaw 19). In contrast, the concept has also certain drawbacks in terms of underestimating customer needs and changing market scenarios which may intensely affect an organization’s performance (Shoemaker & Shaw 19). Marketing orientation approach can create a gap between the activities performed by the organization and customer desires and expectations. This gap potentially can result in negative word-of-mouth as well as reduced customer loyalty. Question 2 In hospitality segment, there are several tools which help to evaluate the service quality of an organization. One of the major tools is SERVQUAL model which is used for determining and administering service quality across different service backgrounds. It is an effective model which assists organizations to direct their efforts in bridging the gap between perceived and expected service quality. There are five gaps identified in the SERVQUAL model (Shoemaker & Shaw 46-48). Out of five two are as follows: 1. Gap between Service Expected by Customer and Management’s Perception of Customer Expectations: This gap signifies general mismatch between management and customers. The basic cause for this gap is inappropriate understanding of the actual expectations of the customers, poor demand analysis and insufficient awareness about the relationship between the organization and the customers. This gap can be closed by managing the expectations of the customers in a better way. For example, hospitality industry based organizations can evaluate the time the guests are ready to spend and can make available employees to fulfill the expectations of those guests. Several studies have depicted that those hospitality organizations which deal with the customer complaints effectively can close this kind of gap in business. It is imperative for hospitality organizations to develop strong relationships with customers and to adjust with the changes in demand. Besides, it will also be useful for hospitality organizations to develop several revival strategies when any kind of faults in the services appear. 2. Gap Between Service Provided and Service Pledged: The major reasons for this gap are lack of integrated service marketing announcement, incompetent management of customers’ prospects, irrational promises and insufficient communication. Thus, in order to close this gap, hospitality organizations need developing effective market communication. Market communication can create appropriate expectation of services in the minds of the customers. Furthermore, the management of hospitality organizations must improve. Hospitality organizations should also avoid declaring any kind of unreasonable promises to the customers which cannot be satisfied. Providing realistic promises through suitable marketing communication channels can bridge this gap. While offering accurate information about services and delivery procedures, it is of utmost importance to manage marketing communication effectively (Blesic, Ivkov-Dzigurski, Dragin, Ivanovic, & Pantelic, “Application of Gap Model in the Researches of Hotel Services Quality”). Thus, considering the above features, it can be stated that the SERVQUAL model is quite helpful for managers as it can help to identify the gaps in hospitality services. As a result, this model can assist marketers in developing strategies which are required for bridging the gaps in performance. Through SERVQUAL model, marketers can effectively recognize the expectations of the customers and satisfy them accordingly (Naik, Gantasala, & Prabhakar, “Service Quality (Servqual) and its Effect on Customer Satisfaction in Retailing”). Question 3 A mission statement of any organization denotes the main purpose of the enterprise which also signifies its reasons for its existence. The mission statement involves preserving values and various ethical norms in order to assist an organization’s clients through providing goods and/or services (Radtke, “How to Write a Mission Statement”). On the other hand, a vision statement can be recognized as comprising features or elements which direct an organization towards attaining its long-term goals and objectives. The vision statement takes into concern the external people including customers, investors, suppliers and competitors. The major difference between an organization’s mission and vision statement is that the mission statement considerably focuses on present conditions while a vision statement is significantly focused on future performance. Moreover, the mission statement involves short-term goals and objectives regarding the process of the organization whereas the vision statement is designed keeping in consideration the long-term performances of the organization within the marketplace (McLeod, “Values, Vision and Mission Statements”). According to the present day scenario, the hospitality industry is recognized as one of the world’s largest industries in terms of earning revenues and it has also become a key employer in the global context. It provides an effective economic support as a major source of earning to a nation through accumulating revenues. The rapid growth of the modern day organizations in the hospitality industry has been observed due to an increase in competition among the organizations with regard to quality of products and/services (Tahayori, & Moharrer, “The Role of ICT in Tourism Industry, Innovations and Challenges”). Therefore, the mission statement of a company in the hospitality industry can be to ensure delivery of quality and value-based products and services to its customers at an affordable price. In the similar context, the vision statement of a company can be to focus towards achieving sustainable position in the global hospitality industry within the next two years through the deliverance of quality and value-based services by a large extent. Question 4 Market segmentation denotes the procedure of breaking down a market into several customer groups with apparent needs. In other words, market segmentation is a categorization of mass markets into exclusive segments with homogeneous features and requirements. The marketers segment the market in order to leverage scant resources. The main intention of the marketers for market segmentation is to ensure that marketing mix elements are developed in such a way so that they can satisfy specific requirements of different customer segments. Since organizations have limited resources, thus it is impossible to generate all kinds of products or services. Thus, it is best for marketers to aim for a particular group of people which allows organizations to concentrate on specific customer requirements (Shoemaker & Shaw 420-445). In hospitality organizations, three significant segmentation variables used by marketers are: 1. Demographic Variable: Marketers of hospitality organizations usually segment the market on the basis of demographical factors, for instance, age group, income level, expenditure patterns, educational level and profession among others. These variables can determine the strategies of hospitality organizations. For example, if a hospitality organization chooses to target the senior market segment on the basis of age, it would require determining the aspects which are vital for satisfying this market segment. The products and the services of the hospitality organizations must be developed on the basis of identified aspects. For instance, hotels can provide luggage carts facilities, healthy food products and alarm services in order to satisfy the senior market segment (Shoemaker & Shaw 420-445). 2. Behavioral Variable: The other important variable used by the hospitality organizations in order to segment the market is behavioral variable. This variable concentrates on behavior that customers’ display in the market. For example, customers can be segmented on the basis of heavy users, moderate users and light users. The heavy users usually stay in hotels for a longer period of time. Thus, for this customer segment, a marketing plan must be developed which can enhance the loyalty of the heavy users. On the other hand, light users are those customer segments who can easily be convinced by competitors’ promotional offers. Thus, hotels which desire to focus on this customer segment need to develop proper marketing communication strategies, promotional messages and advertisements which can increase the sales and the profit (Shoemaker & Shaw 420-445). 3. Benefits Required: Market segmentation in hospitality industry can also be based on benefits that customers require. Once a hospitality organization determines the benefits required by the customers, it can develop products/services and promotional offers by concentrating on the benefits. For example, business travelers are highly concerned about convenience while selecting a hotel. They generally make room reservations at the last moment. On the other hand, leisure travelers usually compromise convenience and are highly concerned about cost of hospitality services. This kind of customers usually book rooms in advance (Shoemaker & Shaw 420-445). Works Cited Blesic, Ivana, Anđelija Ivkov-Dzigurski, Aleksandra Dragin, Ljubica Ivanovic & Milana Pantelic. “Application of Gap Model in the Researches of Hotel Services Quality”. Turizam 15.1 (2011): 40 – 52. Print. McLeod, Rob. Values, Vision and Mission Statements. Business Plan, 2004. Web. 12 Dec. 2012 Naik, C.N. Krishna., Swapna Bhargavi Gantasala & Gantasala V. Prabhakar. “Service Quality (Servqual) and its Effect on Customer Satisfaction in Retailing”. European Journal of Social Sciences 16.2 (2010): 231-243. Print. Radtke, Janel, M. How to Write a Mission Statement. Magazine, n.d. Web. 12 Dec. 2012. Shoemaker, Stowe & Margaret Shaw. Marketing Essentials in Hospitality and Tourism: Foundation and Practices. New Jersey: Pearson Education, Inc., 2008. Print. Tahayori, Hooman & Masoomeh, Moharrer. E-Tourism: The Role of ICT In Tourism Industry, Innovations and Challenges. Introduction, n.d. Web. 12 Dec. 2012. Read More