MARKETING IN TOURISM &

HOSPITALITY

Course Code: MTHM512

Cr.Hr: 3; ECTS: 5
Course Instructor: Kassegn Berhanu
E-mail: kassegnberhanu@gmail.com

kassegnbirhanu@dbu.edu.et
 COURSE DESCRIPTIONS AND
OBJECTIVE
 The concepts and practices of tourism and
hospitality marketing,
 STP, and product formulation,
 Marketing research, marketing and
promotional mixes (strategies and
techniques),
 Branding tourism destination,
 e-marketing
 Case studies of marketing practices in

international tourism and hospitality, and

marketing plan
 REFERENCES

 Kotler P., Bowen J.T., & Makens J. C.

(2014). Marketing for hospitality and
tourism (6th Eds.). Pearson Education
 Kotler P. (2002). Marketing
management, millennium edition. (10th
Eds.) Pearson Custom Publishing
 Taylor D. (2001). Hospitality sales &

promotion strategies for success. Reed

Educational & Professional Publishing
Ltd.,
Introduction to Marketing
for Hospitality and Tourism
 MARKETING DEFINED
 The AMA managerial definition:

“Marketing is the process of planning

and executing the conception, pricing,
promotion, and distribution of ideas,
goods, and services to create
exchanges that satisfy individual and
organizational objectives.”
SIMPLE MARKETING SYSTEM

Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
 MARKETING DEFINED

Kotler’s social definition:

“Marketing is a societal process by which
individuals and groups obtain what they
need and want through creating,
offering, and freely exchanging
products and services of value with
others.”
CORE CONCEPTS OF MARKETING

Needs, Wants, and Demands

Value and Satisfaction

Exchange and Transactions

Relationships and Networks

 CORE MARKETING CONCEPTS

Needs, Wants and Demand

 Needs describe basic human requirements
such as food, air, water, clothing, shelter,
recreation, education, and entertainment.
 Needs become wants when they are
directed to specific objects that might
satisfy the need (e.g. Fast food, kind of
jacket)
 the form of human needs take as they are
shaped by culture and individual
personality.
 Wants are how people communicate their
needs.
 …
Demands are wants for specific
products backed by an ability to
pay.
Demands= wants + purchasing

power
 CORE MARKETING CONCEPTS

A Product is any thing that can

be offered to satisfy a need or
want.
When offerings deliver value and

satisfaction to the buyer, they

are successful.
PRODUCT CAN BE
 Goods  Places
 Services  Properties
 Experiences  Organizations
 Events  Information
 Persons  Ideas
 VALUE, SATISFACTION AND QUALITY
Value:- the difference between
benefits that the customer gains
from owning /or using a product
and the costs of obtaining the
product.
…

Value= benefits
costs
= functional benefits + emotional
benefits
monetary costs+ time costs + energy
costs+ psychic costs
 ENHANCING VALUE
Marketers can enhance the value of
an offering to the customer by:
Raising benefits.
Reducing costs.
Raising benefits while lowering costs.
Raising benefits by more than the
increase in costs.
Lowering benefits by less than the
reduction in costs.
 Satisfaction:-depends on the a product’s
…
perceived performance in delivering
value relative to a buyers expectation.
 If the product’s performance falls short of
the customer’s expectations, the
customer is dissatisfied.
 If the performance matches
expectations, the buyer is satisfied.
 If performance exceeds expectations, the
buyer is delighted.
 Customer expectations are based on
past buying experiences, the opinions of
friends, and marketer and competitor
information and premises.
 ……
 Marketers must be careful to set the
right level of expectations.
 If they set expectations too low, they

may satisfy those who buy, but fail to

attract new customers.
 If they set expectations too high,
customers will be disappointed.
 Highly satisfied customers make repeat

purchases, are less price sensitive,

remain customers longer, and talk
favorably to others about the company
and its products.
 ….
 Quality:- has a direct impact on
product/service performance.
Narrowest definition… “ freedom from
defects”
AMA… defines quality as the totality
feature and characteristics of a
product /service that bear on its ability
to satisfy customer needs.
TQM… Quality begins with customer
needs and ends with customer
satisfaction.
EXCHANGE, TRANSACTION AND RELATIONSHIPS
Exchange
involves obtaining a desired product
from someone by offering something
in return.
people don’t need the skills to
produce every necessity for
themselves.
They can concentrate on
producing the things that they are
good at making and trade them
for needed items needed by
others.
 …
 For exchange: 5 conditions must be satisfied:

1. There are at least two parties.

2. Each party has something that might be of value to
the other party.
3. Each party is capable of communication & delivery.
4. Each party is free to accept or reject the
exchange offer.
5. Each party believes it is appropriate or desirable
to deal with the other party
Exchange is a value-creating process.
It normally leaves both parties better off
When an agreement is reached, we say that a
transaction takes place
 TRANSACTION
Whereas exchange is the core
concept of marketing,
 transaction is marketing’s unit of
measurement.
 it consists of a trade of values b/n two

parties.
 it involves at least 2 things of value,

conditions that are agreed to, a time of

agreement and place of agreement.
We must be able to say A gives X to
B and gets Y in return at a certain
 RELATIONSHIP MARKETING
 aims to build long-term mutually
satisfying relations with key parties,
which ultimately results in marketing
network between the company and its
supporting stakeholders.
smart marketers build strong
economic relationships with
social ties by promising and
consistently delivering high-
quality products, good service,
and fair service.
 ….
 It is most appropriate to create
relationship and networking with
customers who can most affect the
company’s future
CORE CONCEPTS OF MARKETING & MARKETING
MGT

Marketing is essentially concerned

with prediction of people’s future
behavior and an attempt to
influence their behavior in some
particular way.” (Colin McIver)
 …
 Marketing management is the analysis,
planning, implementation, and control of
programs designed to create, build and
maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives.
 Marketing management is demand
management
 MARKETING MANAGEMENT
PHILOSOPHIES

1. Manufacturing (Production) Concept

one of the oldest philosophies guiding
sellers. This concept holds that
consumers will favor products that are
available and highly affordable,
 and therefore management should focus

on production, low cost and

distribution efficiency.
Pitfall= management may become so
focused on manufacturing systems that
they forget the customers.
 2. PRODUCT CONCEPT
 Like .., it is also an inward focus.
 The product concept holds that consumers

prefer existing products and product

forms (the most quality, performance, or
innovative features), and the job of
management is to develop good versions
of these products.
 Flaw/weakness = This misses the point that

they are trying to satisfy needs and might

turn to entirely different products to better
satisfy those needs, such as motels instead
of hotels.

 3. SELLING CONCEPT
 It holds that consumers will not buy
enough of the organization’s products
unless the organization undertakes a large
selling and promotion effort.
 The aim of a selling focus is to get every

possible sale, not to worry about

satisfaction after the sale.
 It does not establish a long term r/p with

customers, because the focus is on getting

rid of what one has rather than creating a
product to meet the needs of customers.
 4. MARKETING CONCEPT
 Itis a more recent business philosophy
 This 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.
 Unlike the selling concept, it takes an outside

in perspective.
 the company coordinates all the activities

that will affect customer satisfaction and

makes its profits by creating and maintaining
customer satisfaction.
 ….
 4 pillars: target market, customer needs,

integrated marketing, and profitability.

Considering customers need: 3 marketing
system: Responsive marketing, anticipative
marketing, and creative marketing.
A responsive marketer finds a stated need and
fills it,
An anticipative marketer looks ahead to the
needs that customers may have in the near
future.
A creative marketer discovers and produces
solutions that customers did not ask for, but
to which they enthusiastically respond
 1.5. SOCIETAL MARKETING CONCEPT
Itis the newest marketing concept.
This concept holds that the
organization should determine the
needs, wants and interests of target
markets and deliver the desired
satisfactions more efficiently and
effectively than competitors in a
way that maintains or improves
the consumers’ and societies’
wellbeing.
 ….
 It questions whether the marketing
concept is adequate in an age of
environmental problems, resource
shortages, rapid population growth,
worldwide inflation, and neglected social
services.
 The pure marketing concept ignores

possible conflicts between short run

consumer wants and long run societal
needs.
CUSTOMER DELIVERED VALUE

Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

 THE FOUR PS

The Four Cs

Marketing
Mix

Product Place

Customer Convenience
Solution Price Promotion

Customer Communication
Cost
TRADITIONAL ORGANIZATION CHART

Top
Management

Middle Management

Front-line people

Customers
CUSTOMER-ORIENTED
ORGANIZATION CHART

Customers

Front-line people

Middle management

s
Cu

er
st

om
om

Top

st
er

manage-

Cu
s

ment
EVOLVING VIEWS OF MARKETING’S
ROLE

Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing

a. Marketing as an b. Marketing as a more

equal function important function
 EVOLVING VIEWS OF MARKETING’S
ROLE

Production on
c ti

Fi
du

na
o
Pr

nc
e
Marketing Customer
re
Hu ur

c e M
so

ur an
n ar

s
ma ces

ce
ke

so m
i n tin
F

re Hu
n

c. Marketing as the d. The customer as the

major function controlling factor
EVOLVING VIEWS OF MARKETING’S
ROLE

Production

Marketing

Customer
re
Hu ur
so

e
ma ces

nc
a
n

i n
F

e. The customer as the controlling

function and marketing as the
integrative function
….

Thank you so
much for your
attention &
Stamina!