Fast food industry
Analysts predict that the hotel industry will consolidate in much the same way as the airline industry has, with five or six major chains dominating the market. Such consolidation will create a market that is highly competitive. The firms that survive this consolidation will be the ones that understand their customers. C. In response to growing competitive pressures, hotel chains are relying on the expertise of the marketing director. IV. Travel Industry Marketing A. Successful hospitality marketing is highly dependent on the entire travel industry. B.
Government or quasi-government agencies play an important role in travel industry marketing through legislation aimed at enhancing the industry and through promotion of regions, states, and nations. C. Few industries are as independent as the travel and hospitality industries. V. Marketing Process – The marketing process is a five-step model of the marketing process. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value.
By creating value for customers, they in turn capture value from customers in the form of sales, profits, and long-term customer equity. A. Understand customers (1) Needs – Human beings have many complex needs. These include basic physical needs for food, clothing, warmth, and safety; social needs for belonging; affection, fun, and relaxation; esteem needs for prestige, recognition, and fame; and individual needs for knowledge and self-expression. (2) Wants – Wants are how people communicate their needs (3) Demands – People have almost unlimited wants but limited resources.
They hose products that produce most satisfaction for their money. When backed by buying power, wants become demands (4) Market offering – Some combination of tangible products, services, information, or experiences that are offered to the market. (5) Value, expectations, and satisfaction (a) Customer value is the difference between the benefits that the customer gains from owing and/or using a product and the costs of obtaining the product (b) Customer expectations are based on past buying experiences, the opinions of well the product meets the customer’s expectations for that product. ) Exchange and relationships (a) Exchange is the act of obtaining a desired object from someone by offering something in return (b) Relationship marketing focuses on the building a relationship with a company’s profitable customers. Most companies are finding that they earn a higher return from resources invested in getting repeat sales from current customers than from money spent to attract new customers (c) Designing customer-driven marketing strategy. Marketing management is the art and science of choosing target markets and building profitable relationships with them Selecting customers to river.
The company must select those market segments it wishes to serve Choosing a value proposition. The company must also decide how it will serve targeted customers – how it will differentiate and position itself in the marketplace. A company’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs VI. Five Marketing Management Philosophies A. Production concept holds that the customers will favor products that are available and highly affordable, and therefore management should focus on production and distribution efficiency B.
Product concept holds that customers prefer existing products and product forms, and the Job of management is to develop good versions of these products C. Selling concept holds that consumers will not buy enough of the organization’s products unless the organization undertakes a large selling and promotion effort. D. Marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors. E.
Societal marketing concept holds that the 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 consumer’s and society well-being. VI’. Prepare and Integrated Marketing Plan. The company’s marketing strategy outlines which customers the company will serve and how it will create value for these customers. Next, the marketer develops an integrated marketing program that will actually deliver the intended vale to target customers.
The marketing program builds customer relationships by transforming the marketing strategy in action. It consists of the firm’s marketing mix the set of marketing tools the firm uses to implement its marketing strategy. The major marketing mix tools are classified into four broad groups, called the four As of marketing: product, price, place, promotion VIII. Build Customer Relationships. Customer relationship management (CRM) involves managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty ‘X.
Capturing Values from Customers. We try to capture value from our customers in customer value, the firm created highly satisfied customers who stay loyal and buy more. A. Customer loyalty and retention. The benefits of customer loyalty come from continued patronage of loyal customers, reduced marketing costs, decreased price sensitivity of loyal customers, and partnership activities of loyal customers. Loyal customers purchase from the business. They are loyal to more often than non-loyal customers. They also purchase a broader variety of items.
A manager who is loyal to a hotel brand is more likely to place her company meetings with that hotel chain. Reduced marketing costs are the result or requiring fewer marketing dollars to maintain a customer than to create one and the creation of new customers through the positive word-of-mouth of loyal customers. B. Growing share of customer. Beyond simply retaining good customers to capture customer lifetime value, good customer relationship management can help marketers to increase their share of customer – the share they get of the customer’s purchasing in their product categories. C.
Building customer equity, Customers equity id the discounted lifetime values of all the company’s current and potential customers. One builds customer require by delivering products that create high customer satisfaction and have high perceived value. Activity 2 Choose a fast food restaurant and answer the following questions: A. Visit the website of a fast food restaurant. What does the website do to make the product tangible for the customer? B. Wendy serves its hamburgers “fresh off the grill” This ensures high quality but creates leftover burgers if the staff overestimates the demand.