Service Marketing Efforts in the Hotel Industry - Essay Example

? Service Experience Report Introduction In contrast to manufacturing and processing industries where the output is usually a tangible and physically product, services industries engage in economic activities that offer convenience, comfort, health or timeliness to the consumer. In the service industry, players focus to sell their services in accordance to the interests of the customer (Roland and Tuck, 2006). According to the American Marketing Association, services are described as benefits, activities and satisfactions that are provided for sale or in relation with sale of products. Services have several distinguishing factors all that have implications during marketing. One of these factors is that services are intangible that means that services cannot be stocked. Consequently, variation in demand is difficult to manage. In addition, the actual cost of the service is difficult to determine making pricing difficult. The other characteristic of services is that they are inseparable as they are produced and offered simultaneously (Hultman and Ek, 2011). This means that the consumer is present during the production of the service and the level of satisfaction attained is influenced by other consumers. Services are usually heterogeneous given that these activities are undertaken by humans and hence it is not possible to produce identical services. Lastly, services are perishable as they can never be stored, resold, or returned. For instance, a hotel company that offers bad services to its customers may not returned (Hultman and Ek, 2011). Because of the characteristics described above, companies offering services faces several challenges in marketing to ensure effectiveness. This report describes the application marketing theories and concepts in the case of Palazzo Versace Hotel that had been visited to have a feel of their customer and identify critical points. The report will also present reasons that make customers feel dissatisfied with the services offered. The First Visit Service marketing efforts in the hotel industry are geared towards attracting new customers and encouraging subsequent visits. Consequently, when I booked at Palazzo Versace Hotel, Gold Coast, and the hotel had a new customer and therefore it had a big role in ensuring that it is able to maintain the customer. Despite having booked for hotel earlier, the front office staff of the hotel could not trace the booking details due to computer failure. However, as required in service marketing where the first experience plays a great role in determining the level of satisfaction a customer receives in the service industry, the receptionists was quick to reassure me that all was well and assigned another room that is of the same status like that which I had booked. By assigning a room to the customer despite failure to trace his details of booking, the reception reassured the customer that the hotel is concerned about his welfare and has trust in them. This act may also be understood from the relationship marketing. Relationship marketing involves attracting and maintaining customers through enhanced customer to organization relationship (Gilmore, 2003). By demonstrating trust for the customer and assigning a room without much interrogation, the visitor is able to form a strong relationship with the facility and therefore it is possible to book at the hotel again. The other marketing concept that is evident in the case of Palazzo Versace Hotel and the customer is that of mutual satisfaction. According to Gilmore (2003), traditionally, marketing theory emphasized on mutual satisfaction. Businesses make profits by also ensuring that they meet the needs of their customers. To ensure that customers achieve satisfaction, the services offered must be of high quality and adhere to value and convenience needs of the customer. In adherence to the needs of the customer, the receptionist recognized the value of convenience as a determinant to the level of satisfaction. The receptionist therefore allowed the customer time to go and relax as the issue of booking was being sorted. The other aspect evident in case of Palazzo Versace Hotel during the first instance is that they are concerned about the welfare of their customers. The receptionist demonstrated that the organization was out to meet and supersede the expectations of their customers. After I realized that the booking details could not be retrieved due to system failure, I had made up my mind that the holiday plans had already become ruined. However, as a show of concern, the receptionist allocated a room. This goes beyond the expectations of the customer where one would have expected to be turned down or kept waiting before the information could be retrieved. He creates a memorable customer experience and this is an assurance that the organization is not just out to make profit. Concern for the customer is further demonstrated by the initiative taken by the receptionist to call and inform the customer that the details had been retrieved. To address customer concerns, an organization must be able to identify all the expectations of its customers and address them (Gilmore, 2003). In relationship marketing, commitment and trust are critical aspects that all service providers must endeavor to uphold (Gilmore, 2003). Commitment is the enduring desire that is aimed to ensure that the organization maintains good relationship with customers. The hold demonstrates a commitment to ensure that it preserves relationships with it customer by even going an extra mile to offer a room before the issue of system is sorted. On the other hand, trust is described as the confidence that partners in the exchange process hold against each other. For instance, the hotel has confidence the customer is of integrity and is reliable and therefore they allocated a room. Trust is critical in service marketing as it helps eliminate uncertainty and enhances a feeling of security (Gilmore, 2003). In light of this, even in subsequent dealings with the hotel, the client feels secure thereby becoming a return customer with ability to attract even more customers. In service marketing, it is critical to understand that the customer is always right. This is a concept in marketing theory and in the case of Palazzo Versace Hotel, the receptionist demonstrated adherence to this rule. By treating customers, the hotel is able to tailor services to meet customer expectations. According to Gilmore (2003), service marketing requires that an organisation should deal with issues raised by a customer as this can raise problems among subsequent customers. The perception on the level of satisfaction that one is able to receive from a service provider is greatly influenced by other customers. In light of this, the receptionist acted first to avert any occurrence of conflicts that could attract other customers and affect their first impression of the hotel. The Second Visit According to Buttle (1996), consistent and effective service delivery in the hospitality and tourism industry is critical if a service provider aims to maintain its customers. However, in the case of the second visit where we visited with another group member, the service offered did not match the services offered in the first visit. During this time, there was no person at the front office desk despite the fact that previously there had been a lady. This creates a negative impression that the organization is not committed to customer service. Having a front office desk to welcome customers and from which they are able to receive information about the facility is critical in enhancing customer satisfaction. Every customer expects to be received well and to be guided throughout the facility. Buttle (1996) notes that communication is critical in service industry and is a great determinant of the level of satisfaction that the customers achieve. After getting into the lobby of the hotel, a man emerged from the backdoor smiling. Welcoming customers warmly in service marketing plays a critical role in attracting customers as they feel that they are appreciated. Despite the warm welcome that the man demonstrated as he came to meet the visitors, he makes a big marketing mistake by being on phone for so long. By failing to attend customers and instead the staff member continuous making calls is both irritating and disheartening to the customers. Moreover, this is a sign that company is not committed to customer service and creates a negative impression about the facility. Furthermore, by keeping customers waiting for so long leads to discontentment and some customers may decide to seek for the same services elsewhere. As explained earlier, services are inseparable from the person offering the service and therefore most people tend to set their expectations based on the reception and with the kind of reception received, it is not possible to attract new clients. According to Hultman and Ek (2011), responsiveness is critical in service marketing. The faster the organisation is to the customer demands, the higher the level of satisfaction. Gilmore (2003) further notes that services have the perishable characteristic that means that they cannot never be stored or replaced. Consequently, proper scheduling to ensure that an organization takes advantage of the entire incoming customer is critical for success. The hotel failed to position itself as an aggressive entity with the intention to capture and retain its customers. In the marketing mix of 4P’s, place is a great determinant on the success of the marketing initiative. The place factor in this case is accomplished by ensuring that customers receive services where they expected them. However, this is not attained as there was no person on the lobby. In addition, promotion is a critical in the marketing mix. The front office staff or the receptionist plays this role by taking time to explain to the customers the services offered. However, in this case the person charged with this responsibility concentrates with making calls. In service marketing, it is critical to remember the people who visit the hotel. However, despite the fact that I had made an initial visit to the hotel, the personnel are not able to recognize me. This demonstrates that they do not keen interest with their visitors and this is not required in relationship marketing. The events of the second visit may be explained based on the gap theory. The hotel has not been able to address customer gap (Gilmore, 2003). Customer gap is described as the difference between what the customer expects and the perceived service offered. It is critical that the hotel understands that customers are concerned with receiving prompt service on getting to the facility. The perceived service is what a customer receives on getting to the hotel and this is used in forming an opinion about the organization. In case the hotel is able to ensure that there is no gap between the two, then it will achieve higher sales. Although the hotel has designed services that meet customer needs, there are gaps in the way these services are being delivered (Gilmore, 2003). For instance, after the customers are shown into their rooms and they leave to have supper, their rooms are cleaned. This demonstrates that the hotel is not always prepared to receive customers given that the customers could also have been shown into their rooms and fail to leave. This would have meant that cleaning of the rooms would not have been done and the cards delivered would have been offered as the staff inconvenience customers. It is recommended that the rooms be clean as this creates the first impression to the customer and determine the level of satisfaction. A service provider must match between the promises it makes to customers with its performance. The hotel has promised its customers of quality service and this must be what customers receive from the time they enter the hotel to the end of their stay. It is widely acknowledged that first impression in marketing matter. It does not make any significant difference to write cards to customers after receiving poor attendance in the front office. Quality service should begin once the client gets to the hotel and be carried even in the back office. Conclusion Service marketing differs significantly from strategies adopted when tangible and physical products. This is because services have distinct characteristics, for instance, they are perishable, intangible and heterogeneous. The level satisfaction that customers receive is influenced by personal perception and other customers. To attract and retain customers in service marketing, it is critical to use relationship marketing where the organization fosters strong ties with its customers. This may be achieved by first upholding trust and commitment as witnessed during the first visit to Palazzo Versace Hotel. The hotel demonstrated trust for the customer by allocating him a temporary room even after system failure. The other critical aspect in service marketing is for the hotel to demonstrate concern to the customers. Concern for the customer is demonstrated by the initiative taken by the receptionist to call and inform the customer that the details had been retrieved. Service marketing must adhere to the requirement of mutual satisfaction for both the organization and the customer. The service provider should be committed to the benefits of both the customers and in ensuring its profitability. Consistency is a critical in service marketing where an organization must ensure that the services that received are consistent every time a customer visits. The image portrayed by the organization when the client first gets to the facility is the greatest determinant on the consumer’s perception of the business and influence the level of satisfaction. Recommendations The recommendations are the factors that service providers must ensure to gain competitiveness against customers. Service providers must ensure reliability by offering the services that meet the promised quality and in a timely manner. Service providers should be responsive to customer needs They must also demonstrate concern, trust and commitment to serve their customers Consistency when offering services to customers is also critical in the service industry Service providers should ensure that their front office services are of high quality as this determines the perception of the customer about the facility. References Buttle, F. (1996). Relationship marketing: Theory and practice. London: Chapman. Gilmore, A. (2003). Services, marketing and management. London [u.a.: Sage. Hultman, J., & Ek, R. (2011). Can there only be one? Towards a post-paradigmatic service marketing approach. International Journal of Quality and Service Sciences, 3(2), 166-180. doi: http://dx.doi.org/10.1108/17566691111146078 Roland, T. R., & Tuck, S. C. (2006). Marketing models of service and relationships. Marketing Science, 25(6), 560-580. Read More