Texto del documento
Philip Kotler John T. Bowen Seyhmus Baloglu EIGHTH EDITION GLOBAL EDITION Marketing for Hospitality and Tourism Marketing for Hospitality and Tourism Philip Kotler John T.
Bowen Seyhmus Baloglu Contributions by Cristian Morosan EIGHTH EDITION GLOBAL EDITION Harlow, England London New York Boston San Francisco Toronto Sydney Dubai Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town Sao Paulo Mexico City Madrid Amsterdam Munich Paris Milan A01_KOTL3516_08_GE_FM.indd 1 09/02/21 2:00 PM Pearson Education Limited KAO Two KAO Park Hockham Way Harlow Essex CM17 9SR United Kingdom and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited, 2022 The rights of Philip Kotler, John T.
Bowen, and Seyhmus Baloglu to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. Authorized adaptation from the United States edition, entitled Marketing for Hospitality and Tourism, 8th Edition, ISBN 978-0-13-520984-4, by Philip Kotler, John T. Bowen, and Seyhmus Baloglu, published by Pearson Education # 2020. All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise.
For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. This eBook is a standalone product and may or may not include all assets that were part of the print version.
It also does not provide access to other Pearson digital products like MyLab and Mastering. The publisher reserves the right to remove any material in this eBook at any time. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN 10: 1-292-36351-7 ISBN 13: 978-1-292-36351-6 Global Edition eBook (uPDF) ISBN: 978-1-292-36352-3 Typeset in the Melior Com 9 by Integra Software Services Pvt. Ltd. eBook formatted by B2R Technologies Pvt. Ltd. This book is dedicated to Nancy, my wife and best friend, with love. P. K. With love to my wife, Toni, and children, Casey and Kelly.
A special recognition and thank you to my friend and colleague, Jim Makens, who coauthored the previous seven editions of the book. We appreciate his contributions to the past editions, many of which live on in this edition. J. T. B. To my wife, Zerrin, and our two sons, Derin and Deniz, with love. S. B. A01_KOTL3516_08_GE_FM.indd 3 09/02/21 2:00 PM 4 PART I Defining Hospitality and Tourism Marketing and the Marketing Process 23 1. Creating Customer Value and Engagement Through Marketing for Hospitality and Tourism 25 2. Services Marketing Concepts Applied to Marketing for Hospitality and Tourism 56 3.
Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships 79 PART II Understanding the Marketplace and Customer Value 107 4. Analyzing the Marketing Environment 109 5. Managing Customer Information to Gain Customer Insights 138 6. Consumer Markets and Consumer Buying Behavior 178 7. Organizational Buyer Behavior 204 8. Customer-Driven Marketing Strategy: Creating Value for Target Customers 226 PART III Designing Customer Value-Driven Strategy and Mix 255 9. Designing and Managing Products and Brands: Building Customer Value 257 10. Internal Marketing 294 11. Pricing: Understanding and Capturing Customer Value 318 12.
Distribution Channels Delivering Customer Value 353 BRIEF CONTENTS A01_KOTL3516_08_GE_FM.indd 4 09/02/21 2:00 PM Brief Contents 5 13. Engaging Customers and Communicating Customer Value and Advertising 380 14. Promoting Products: Public Relations and Sales Promotions 417 15. Professional Sales 444 16. Direct, Online, Social Media, and Mobile Marketing 481 PART IV Managing Hospitality and Tourism Marketing 513 17. Destination Marketing 515 18.
Next Year's Marketing Plan 558 A01_KOTL3516_08_GE_FM.indd 5 09/02/21 2:00 PM 6 To the Student 13 Preface 17 About the Authors 20 PART I Defining Hospitality and Tourism Marketing and the Marketing Process 23 1 Creating Customer Value and Engagement Through Marketing for Hospitality and Tourism 25 YOUR PASSPORT TO SUCCESS 27 CUSTOMER ORIENTATION 28 WHAT IS HOSPITALITY AND TOURISM MARKETING?
29 MARKETING IN THE HOSPITALITY AND TRAVEL INDUSTRIES 30 Importance of Marketing 30 Tourism Marketing 30 Definition of Marketing 31 MARKETING HIGHLIGHT 1.1 HOW FOUR SEASONS HOTELS AND RESORTS DELIGHTS ITS CUSTOMERS 31 The Marketing Process 32 UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS 32 Customer Needs, Wants, and Demands 32 Market Offerings: Tangible Products, Services, and Experiences 34 Customer Value and Satisfaction 34 Exchanges and Relationships 35 Markets 35 DESIGNING CUSTOMER VALUE-DRIVEN MARKETING STRATEGY 35 Selecting Customers to Serve 36 Marketing Management Orientations 36 PREPARING AN INTEGRATED MARKETING PLAN AND PROGRAM 38 MANAGING CUSTOMER RELATIONSHIPS AND CAPTURING VALUE 38 Customer Relationship Management 39 Customer Engagement and Today's Digital and Social Media 41 Partner Relationship Management 42 CAPTURING VALUE FROM CUSTOMERS 42 Customer Loyalty and Retention 43 Growing Share of Customer 43 Building Customer Equity 43 THE CHANGING MARKETING LANDSCAPE 45 The Digital Age: Online, Social Media, and Mobile Marketing 45 Sustainable Marketing—the Call for More Environmental and Social Responsibility 46 Rapid Globalization 47 Co-Creation 47 The Sharing Economy 48 WELCOME TO MARKETING: YOUR PASSPORT TO BECOMING A SUCCESSFUL MANAGER 49 CHAPTER REVIEW 50 IN-CLASS GROUP EXERCISES 52 EXPERIENTIAL EXERCISES 53 REFERENCES 53 2 Services Marketing Concepts Applied to Marketing for Hospitality and Tourism 56 THE SERVICE CULTURE 58 CHARACTERISTICS OF SERVICE MARKETING 58 Intangibility 58 Tangible Evidence 59 Inseparability 60 Variability 60 Perishability 62 THE SERVICE PROFIT CHAIN 62 MANAGEMENT STRATEGIES FOR SERVICE BUSINESSES 63 Managing Service Differentiation 63 Managing Service Quality 64 MARKETING HIGHLIGHT 2.1 SERVICE DIFFERENTIATION IS HARDER TO ACHIEVE, YET SOME MANAGE THROUGH ART 65 Managing Service Productivity 66 Resolving Customer Complaints 66 MARKETING HIGHLIGHT 2.2 RECOMMENDATIONS FOR IMPROVING SERVICE QUALITY 67 Managing Employees as Part of the Product 68 Managing Perceived Risk 69 Managing Capacity and Demand 70 CHAPTER REVIEW 75 IN-CLASS GROUP EXERCISES 76 EXPERIENTIAL EXERCISES 76 REFERENCES 76 CONTENTS A01_KOTL3516_08_GE_FM.indd 6 09/02/21 2:00 PM Contents 7 3 Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships 79 NATURE OF HIGH-PERFORMANCE BUSINESS 81 Stakeholders 81 Processes 82 Resources 82 Organization 82 CORPORATE STRATEGIC PLANNING: DEFINING MARKETING'S ROLE 83 Defining the Corporate Mission 84 Setting Company Objectives and Goals 86 Designing the Business Portfolio 86 MARKETING HIGHLIGHT 3.1 ACCORHOTELS GROUP: MARRIAGE WITH ONEFINESTAY, A LUXURY VACATION RENTAL PLATFORM 88 PLANNING MARKETING: PARTNERING TO BUILD CUSTOMER RELATIONSHIPS 90 Partnering with Other Company Departments 90 Partnering with Others in the Marketing System 91 MARKETING STRATEGY AND THE MARKETING MIX 91 Customer Value-Driven Marketing Strategy 92 Developing an Integrated Marketing Mix 93 MANAGING THE MARKETING EFFORT 94 Marketing Analysis 94 Goal Formulation 97 Marketing Planning 98 Implementation 99 Feedback and Control 99 MEASURING AND MANAGING RETURN ON MARKETING INVESTMENT 99 CHAPTER REVIEW 100 IN-CLASS GROUP ACTIVITIES 102 EXPERIENTIAL EXERCISES 102 REFERENCES 103 PART II Understanding the Marketplace and Customer Value 107 4 Analyzing the Marketing Environment 109 THE COMPANY'S ENVIRONMENT 111 THE MICROENVIRONMENT 111 The Company 111 Existing Competitors 112 Suppliers 113 Marketing Intermediaries 114 Customers 116 Publics 116 THE COMPANY'S MACROENVIRONMENT 117 Competitors 117 MARKETING HIGHLIGHT 4.1 GO TOKYO—MAKING TOKYO THE WORLD'S CHOICE BY DESTINATION DIGITAL MARKETING 118 Demographic Environment 119 The Changing American Family 124 Economic Environment 125 Natural Environment 126 Technological Environment 127 Political Environment 128 Cultural Environment 129 RESPONDING TO THE MARKETING ENVIRONMENT 131 Environmental Scanning 131 CHAPTER REVIEW 132 IN-CLASS GROUP ACTIVITIES 134 EXPERIENTIAL EXERCISES 134 REFERENCES 134 5 Managing Customer Information to Gain Customer Insights 138 MARKETING INFORMATION AND CUSTOMER INSIGHTS 140 Marketing Information and Today's "Big Data" 141 Managing Marketing Information 142 THE MARKETING INFORMATION SYSTEM 142 Assessing Information Needs 142 Developing Marketing Information 143 MARKETING RESEARCH 151 Defining the Problem and Research Objectives 152 Developing the Research Plan 153 MARKETING HIGHLIGHT 5.1 ETHNOGRAPHIC RESEARCH: WATCHING WHAT CONSUMERS REALLY DO 156 MARKETING HIGHLIGHT 5.2 ZMET: GETTING INTO THE HEADS OF CONSUMER 160 MARKETING HIGHLIGHT 5.3 PROS AND CONS OF ONLINE RESEARCH 162 MARKETING HIGHLIGHT 5.4 A "QUESTIONABLE" QUESTIONNAIRE 164 Implementing the Research Plan 168 Interpreting and Reporting the Findings 168 MARKETING HIGHLIGHT 5.5 RESEARCH PROBLEM AREAS 169 MARKETING HIGHLIGHT 5.6 HSMAI'S KNOWLEDGE CENTER: A GREAT SOURCE OF MARKETING INFORMATION 170 INTERNATIONAL MARKETING RESEARCH 171 MARKETING RESEARCH IN SMALLER ORGANIZATIONS 172 CHAPTER REVIEW 172 IN-CLASS GROUP ACTIVITIES 174 EXPERIENTIAL EXERCISES 174 REFERENCES 175 6 Consumer Markets and Consumer Buying Behavior 178 A MODEL OF CONSUMER BEHAVIOR 179 PERSONAL CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR 180 A01_KOTL3516_08_GE_FM.indd 7 09/02/21 2:00 PM 8 Contents Cultural Factors 180 Social Factors 183 MARKETING HIGHLIGHT 6.1 AYAM BRAND'S SOCIAL MEDIA INFLUENCER CAMPAIGN 186 Personal Factors 188 Psychological Factors 191 MARKETING HIGHLIGHT 6.2 SENSORY MARKETING—A POWERFUL TOOL FOR HOSPITALITY BUSINESSES 192 THE BUYER DECISION PROCESS 195 Need Recognition 195 Information Search 196 Evaluation of Alternatives 196 Purchase Decision 197 Postpurchase Behavior 197 MARKETING HIGHLIGHT 6.3 UNIQUE ASPECTS OF HOSPITALITY AND TRAVEL CONSUMERS 198 CHAPTER REVIEW 199 IN-CLASS GROUP EXERCISES 200 EXPERIENTIAL EXERCISE 201 REFERENCES 201 7 Organizational Buyer Behavior 204 THE ORGANIZATIONAL BUYING PROCESS 206 Business Markets 206 Market Structure and Demand 206 Nature of the Buying Unit 207 Types of Decisions and the Decision Process 207 PARTICIPANTS IN THE ORGANIZATIONAL BUYING PROCESS 207 MAJOR INFLUENCES ON ORGANIZATIONAL BUYERS 209 ORGANIZATIONAL BUYING DECISIONS 210 1.
Problem Recognition 210 2. General Need Description 210 3. Product Specification 210 4. Supplier Search 211 5. Proposal Solicitations 211 6. Supplier Selection 211 7. Order-Routine Specification 211 MARKETING HIGHLIGHT 7.1 CORPORATE PROCUREMENT'S INVOLVEMENT IN PURCHASING MEETINGS 212 8.
Performance Review 212 E-Procurement and Online Purchasing 212 Business-to-Business Digital and Social Media Marketing 213 HOSPITALITY GROUP MARKETS 214 Conventions 214 Convention Bureaus 215 ASSOCIATION MEETINGS 216 Corporate Meetings 216 Small Groups 217 Incentive Travel 217 SMERFs 218 MARKETING HIGHLIGHT 7.2 GREEN MEETINGS ABOUT GREEN HOSPITALITY 219 Segmentation of Group Markets by Purpose of the Meeting 220 Restaurants as a Meeting Venue 221 DEALING WITH MEETING PLANNERS 221 CHAPTER REVIEW 222 IN-CLASS GROUP EXERCISES 223 EXPERIENTIAL EXERCISE 224 REFERENCES 224 8 Customer-Driven Marketing Strategy: Creating Value for Target Customers 226 MARKETS 228 MARKET SEGMENTATION 228 Geographic Segmentation 229 Demographic Segmentation 230 MARKETING HIGHLIGHT 8.1 CHILDREN WANT PETS, BUT PARENTS DON'T 231 Psychographic Segmentation 233 MARKETING HIGHLIGHT 8.2 W HOTELS: A LIFESTYLE HOTEL 234 Behavioral Segmentation 235 MARKETING HIGHLIGHT 8.3 EURO SPACE CENTER: TARGETING TEACHERS AND CORPORATES 236 Using Multiple Segmentation Bases 237 Requirements for Effective Segmentation 238 MARKET TARGETING 239 Evaluating Market Segments 239 Selecting Market Segments 240 Choosing a Market-Coverage Strategy 242 MARKET POSITIONING 243 Positioning Strategies 243 Choosing and Implementing a Positioning Strategy 244 Differentiating Competitive Advantages 244 Choosing the Right Competitive Advantages 247 Selecting an Overall Positioning Strategy 248 Communicating and Delivering the Chosen Position 248 Positioning Measurement: Perceptual Mapping 249 CHAPTER REVIEW 250 IN-CLASS GROUP ACTIVITIES 252 EXPERIENTIAL EXERCISE 252 REFERENCES 252 PART III Designing Customer Value-Driven Strategy and Mix 255 9 Designing and Managing Products and Brands: Building Customer Value 257 WHAT IS A PRODUCT?
259 PRODUCT LEVELS 260 Core Products 260 A01_KOTL3516_08_GE_FM.indd 8 09/02/21 2:00 PM Contents 9 Facilitating Products 260 Supporting Products 261 Augmented Product 262 BRANDING STRATEGY 267 Building Strong Brands 267 Brand Equity and Brand Value 268 Brand Positioning 269 Brand Name Selection 270 Leveraging Brands 271 Brand Portfolios 272 MARKETING HIGHLIGHT 9.1 EXTENDING YOUR BRAND TO CHINA: WHAT NAME DO YOU USE?
273 THE NEW-PRODUCT DEVELOPMENT 274 Idea Generation 275 IDEA SCREENING 277 Concept Development and Testing 278 Marketing Strategy 279 Business Analysis 279 Product Development 280 Test Marketing 280 Commercialization 281 PRODUCT LIFE-CYCLE STRATEGIES 281 Introduction Stage 283 Growth Stage 283 Maturity Stage 283 Decline Stage 285 Product Deletion 286 INTERNATIONAL PRODUCT AND SERVICE MARKETING 287 CHAPTER REVIEW 288 IN-CLASS GROUP EXERCISES 289 EXPERIENTIAL EXERCISES 289 REFERENCES 290 10 Internal Marketing 294 INTERNAL MARKETING 295 Post Face-to-Face Guest Relations 296 MARKETING HIGHLIGHT 10.1 HOTEL OKURA AMSTERDAM'S FIVE-STAR COMMUNITY 297 THE INTERNAL MARKETING PROCESS 297 Establishment of a Service Culture 298 Development of a Marketing Approach to Human Resources Management 302 Dissemination of Marketing Information to Employees 310 MARKETING HIGHLIGHT 10.2 INTERNAL MARKETING IN ACTION: LEWIS HOTELS 311 CHAPTER REVIEW 314 IN-CLASS GROUP EXERCISES 315 EXPERIENTIAL EXERCISE 315 REFERENCES 315 11 Pricing: Understanding and Capturing Customer Value 318 FACTORS TO CONSIDER WHEN SETTING PRICES 320 Internal Factors Affecting Pricing Decisions 321 External Factors Affecting Pricing Decisions 324 Competitors' Prices and Offers 330 GENERAL PRICING APPROACHES 331 Cost-Based Pricing 331 Break-Even Analysis and Target Profit Pricing 332 Value-Based Pricing 333 Competition-Based Pricing 334 PRICING STRATEGIES 334 New-Product Pricing Strategies 334 Existing-Product Pricing Strategies 335 REVENUE MANAGEMENT 338 MARKETING HIGHLIGHT 11.1 SEGMENTED PRICING: THE RIGHT PRODUCT TO THE RIGHT CUSTOMER AT THE RIGHT TIME FOR THE RIGHT PRICE 338 Dynamic Pricing 341 BAR Pricing 342 Rate Parity 342 Nonuse of Revenue Management 342 Overbooking 343 PSYCHOLOGICAL PRICING 343 Price Endings 343 Promotional Pricing 344 Value Pricing—Low Price Approach 344 MARKETING HIGHLIGHT 11.2 RYANAIR USES VALUE PRICING TO ATTRACT CUSTOMERS AND GAINS REVENUE FROM EXTRA SALES 345 PRICE CHANGES 346 Initiating Price Changes 346 Responding to Price Changes 347 CHAPTER REVIEW 348 IN-CLASS GROUP EXERCISES 350 EXPERIENTIAL EXERCISE 350 REFERENCES 350 12 Distribution Channels Delivering Customer Value 353 PARTNERING TO ADD VALUE 354 Supply Chains and the Value Delivery Network 354 Nature and Importance of Distribution Systems 355 Nature of Distribution Channels 355 HOSPITALITY DISTRIBUTION CHANNELS 358 Direct Channels 359 Online Travel Agencies 360 Global Distribution Systems 361 Travel Agents 362 MARKETING HIGHLIGHT 12.1 CHANGING MARKET DYNAMICS 362 Travel Wholesalers and Tour Operators 363 Specialists: Tour Brokers, Motivational Houses, and Junket Reps 364 Hotel Representatives 365 National, State, and Local Tourist Agencies 365 A01_KOTL3516_08_GE_FM.indd 9 09/02/21 2:00 PM 10 Contents Consortia and Reservation Systems 365 Restaurant Distribution Channels 366 CHANNEL BEHAVIOR AND THE ORGANIZATION 367 Channel Behavior 367 Channel Organization 368 MARKETING HIGHLIGHT 12.2 RESTAURANT FRANCHISING 370 CHANNEL MANAGEMENT 372 Selecting Channel Members 372 Determining Responsibilities of Channel Members 374 Selecting Business Location 374 CHAPTER REVIEW 376 IN-CLASS GROUP EXERCISES 378 EXPERIENTIAL EXERCISES 378 REFERENCES 379 13 Engaging Customers and Communicating Customer Value and Advertising 380 THE PROMOTION MIX 382 INTEGRATED MARKETING COMMUNICATIONS 382 The New Marketing Communications Model 383 MARKETING HIGHLIGHT 13.1 THANKS, JUST DON'T CALL IT ADVERTISING: IT'S CONTENT MARKETING 385 The Need for Integrated Marketing Communications 387 DEVELOPING EFFECTIVE MARKETING COMMUNICATION 387 A View of the Communication Process 387 STEPS IN DEVELOPING EFFECTIVE COMMUNICATIONS 389 Identifying the Target Audience 389 Determining the Communication Objective 389 Designing the Message 391 Selecting Communication Channels 392 MARKETING HIGHLIGHT 13.2 THANK YOU—A GREAT PERSONAL COMMUNICATION 393 Selecting the Message Source 394 Collecting Feedback 395 SETTING THE TOTAL PROMOTION BUDGET AND MIX 396 Setting the Total Promotional Budget 396 Shaping the Overall Promotion Mix 397 ADVERTISING 401 Major Decisions in Advertising 401 International Advertising Decisions 411 CHAPTER REVIEW 412 IN-CLASS GROUP EXERCISES 414 EXPERIENTIAL EXERCISES 414 REFERENCES 414 14 Promoting Products: Public Relations and Sales Promotions 417 PUBLIC RELATIONS 419 Major Activities of PR Departments 419 MARKETING HIGHLIGHT 14.1 EXTREME SPORTS BRING PUBLICITY AND TOURISTS 421 Publicity 421 THE PUBLIC RELATIONS PROCESS 422 Conducting Research 422 Establishing Marketing Objectives 423 Defining the Target Audience 424 Choosing the PR Message and Vehicles 424 Implementing the Marketing PR Plan 426 Evaluating PR Results 426 PR OPPORTUNITIES FOR THE HOSPITALITY INDUSTRY 427 Promoting Individual Properties 427 Promoting via Storytelling 427 Crisis Management 428 MARKETING HIGHLIGHT 14.2 CHESHIRE'S BEST KEPT STATIONS, CHESHIRE, UNITED KINGDOM 429 Sales Promotion 431 Local Area Marketing (Neighborhood Marketing) 438 CHAPTER REVIEW 439 IN-CLASS GROUP EXERCISES 441 EXPERIENTIAL EXERCISE 441 REFERENCES 441 15Professional Sales 444 RESULTS 446 MANAGEMENT OF PROFESSIONAL SALES 447 NATURE OF HOSPITALITY SALES 447 Competitive Analysis and Competitive Sets 448 SALES FORCE OBJECTIVES 449 Sales Volume 449 Upselling and Second-Chance Selling 450 Market Share or Market Penetration 450 Product-Specific Objectives 450 SALES FORCE STRUCTURE AND SIZE 451 Territorial-Structured Sales Force 451 Market-Segment-Structured Sales Force 452 Market-Channel-Structured Sales Force 452 Customer-Structured Sales Force 452 Combination-Structured Sales Force 453 Sales Force Size 453 A01_KOTL3516_08_GE_FM.indd 10 09/02/21 2:00 PM Contents 11 TRADITIONAL FORMS OF DIRECT MARKETING 505 Direct-Mail Marketing 505 Telephone Marketing 505 Kiosk Marketing 506 Interactive TV 506 ONLINE PRIVACY AND SECURITY 507 CHAPTER REVIEW 508 IN-CLASS GROUP EXERCISES 509 EXPERIENTIAL EXERCISE 510 REFERENCES 510 PART IV Managing Hospitality and Tourism Marketing 513 17Destination Marketing 515 MARKETING TOURISM DESTINATIONS 517 The Globalization of the Tourist Industry 517 The Tourism Destination 518 Destination Marketing System 519 Destination Competitiveness 521 Sustainable Tourism 524 TOURISM DEVELOPMENT AND INVESTMENTS 527 MARKETING HIGHLIGHT 17.1 CUBA TOURISM DEVELOPMENT: A TIME TRAVEL 528 Tourism Events and Attractions 529 Destination Life Cycle: Rejuvenating a Destination 535 SEGMENTING AND MONITORING THE TOURIST MARKET 536 Agritourism 538 Space Tourism 539 Multiday Hiking and Religious Pilgrimages 539 Medical Tourism 540 Genealogical Tourism 541 Identifying Target Markets 541 Classification of Visitor Segments 542 Monitoring the Tourist Markets 543 COMMUNICATING WITH THE TOURIST MARKET 544 Competition for Visitors Involves Image Making 544 Branding Destinations 545 Effectiveness of Advertising/Promotion 546 Developing Packages of Attractions and Amenities 546 Creating and Managing Visitor Experiences 547 ORGANIZING AND MANAGING TOURISM MARKETING 549 National Tourism Organizations 549 ORGANIZING THE SALES DEPARTMENT 455 Inside Sales Force 455 Field Sales Force 457 Team Sales 458 RELATIONSHIP MARKETING AND STRATEGIC ALLIANCES 458 RECRUITING AND TRAINING A PROFESSIONAL SALES FORCE 460 Importance of Careful Selection 460 Establishing a Profile of Desired Characteristics Matching the Corporate Culture 460 Matching Career Acquisitions with Corporate Objectives 460 Sales Force Training 461 MANAGING THE SALES FORCE 463 Selecting Sales Strategies 464 Sales Force Tactics: Principles of Personal Selling 465 Motivating a Professional Sales Force 469 Evaluation and Control of a Professional Sales Force 471 Peer-to-Peer Sales 474 Networking 474 SOCIAL SELLING: ONLINE, MOBILE, AND SOCIAL MEDIA TOOLS 475 Social Selling: Online, Mobile, and Social Media Tools 475 CHAPTER REVIEW 476 IN-CLASS GROUP EXERCISES 478 EXPERIENTIAL EXERCISE 478 REFERENCES 479 16 Direct, Online, Social Media, and Mobile Marketing 481 DIRECT AND DIGITAL MARKETING 483 The New Direct-Marketing Model 483 Benefits of Direct and Digital Marketing to Buyers and Sellers 484 Forms of Direct and Digital Marketing 485 DIGITAL AND SOCIAL MEDIA MARKETING 485 Marketing, the Internet, and the Digital Age 485 Online Marketing 487 Social Media Marketing 491 Mobile Marketing 496 CUSTOMER DATABASES AND TRADITIONAL DIRECT MARKETING 498 Database Uses 498 Personalization, Disclosure of Information, and Value for the Customers 500 RELATIONSHIP MARKETING AND LOYALTY PROGRAMS 501 Benefits of Customer Relationship Management 502 Loyalty Programs 503 A01_KOTL3516_08_GE_FM.indd 11 09/02/21 2:00 PM 12 Contents Regional Tourist Organizations: State Associations and Convention and Tourist Bureaus 550 CHAPTER REVIEW 551 DISCUSSION QUESTIONS 553 EXPERIENTIAL EXERCISE 553 IN-CLASS GROUP ACTIVITIES 553 APPENDIX A: 2018 TRAVEL AND TOURISM COMPETITIVENESS INDEX 553 REFERENCES 554 18Next Year's Marketing Plan 558 PURPOSE OF A MARKETING PLAN 560 PREPARING A MARKETING PLAN 561 Section I: Executive Summary 561 Section II: Corporate Connection 562 Section III: Environmental Analysis and Forecasting 563 MARKETING HIGHLIGHT 18.1 THE INDIGO PEARL RESORT: FACEBOOK STRATEGY AND PLANNING THE INDIGO PEARL 568 Section IV: Segmentation and Targeting 568 Section V: Next Year's Objectives and Quotas 571 Section VI: Action Plans: Strategies and Tactics 575 Section VII: Resources Needed to Support Strategies and Meet Objectives 580 Section VIII: Marketing Control 581 PRESENTING THE PLAN AND PREPARING FOR THE FUTURE 583 Section IX: Presenting and Selling the Plan 583 Section X: Preparing for the Future 584 CHAPTER REVIEW 585 IN-CLASS GROUP EXERCISES 586 EXPERIENTIAL EXERCISE 587 REFERENCES 587 Appendix A The Five-Gap Model of Service Quality 589 Appendix B Forecasting Market Demand 593 Case Studies 600 Glossary 657 Index 666 A01_KOTL3516_08_GE_FM.indd 12 09/02/21 2:00 PM 13 TO THE STUDENT Welcome to the eighth edition!
Marketing for Hospitality and Tourism guides you down the intriguing, discovery-laden road to learning marketing. These are exciting times in hospitality marketing. There is an ever-increasing number of tourists, both domestic and international. This coupled with advances in digital technologies have created a new, more engaging and connected world. Some of the applications you learn today you will use immediately, while others you may not use until later in your career. Thus, it is important that you have an understanding of the marketing theories and concepts. This will allow you to analyze future situations and make proper decisions.
Practices and applications are provided to give you examples of how we currently apply the concepts to industry situations. Finally, we have included marketing highlights, opening cases, written cases, color illustrations, and other features to make learning about marketing interesting and enjoyable. Throughout the text, we provide examples to illustrate how companies are using the marketing principles covered in the book. Marketing is both an art and science. The art adds some ambiguity to marketing, which makes it difficult for some students. We recommend reading each chapter quickly and then going back and reading it more slowly the second time.
This will give you a good understanding of the material in the chapter. The development of each edition has involved students who tell us which illustrations to use, which exam- ples they find interesting, and which ones we should replace when we are writing the newest edition. We strive to develop a book that is student friendly and clearly explains and illustrates the application of mar- keting concepts. This has resulted in the book being used around the globe in nine different languages. We hope you enjoy Marketing for Hospitality and Tourism and we wish you success. Philip Kotler, John T.
Bowen, Seyhmus Baloglu A01_KOTL3516_08_GE_FM.indd 13 09/02/21 2:00 PM 14 An Indispensable Guide to Successful Marketing in the Hospitality Industry This book has been written with you in mind—explaining the how and why of everyone's role in marketing. Because customer contact employees are part of our product in hospitality and tourism marketing, market- ing is everyone's job. Marketing for Hospitality and Tourism gives you an innovative and practical introduc- tion to marketing. Its style and extensive use of examples and illustrations make the book straightforward, easy to read.
Text Organization PART I: Defining Hospitality and Tourism Marketing and the Marketing Process—Introduces you to the concept of hospitality marketing and its importance. PART II: Understanding the Marketplace and Customer Value—Helps you understand the role of consumer behavior and how it affects the marketing environment. PART III: Designing Customer Value-Driven Strategy and Mix—Identifies and explains strategies for pro- moting products, the various distribution channels and the latest developments in digital marketing.
PART IV: Managing Hospitality and Tourism Marketing—Highlights the latest trends in destination mar- keting, and planning for the future through development of a marketing plan. Special Features: Connecting to the Real World Chapter Opening Cases Each chapter opens with a mini case showing you how actual hospitality and travel companies have suc- cessfully applied marketing. The cases help you understand and remember the concepts presented in the chapter. For example, Chapter 1 illustrates how catering to the customer experience has helped deliver an authentic customer experience and, in turn, paid big dividends for Indian Hotels Company Limited (IHCL). 1.
Describe the importance of marketing to the hospitality industry and outline the steps in the marketing process. 2. Explain how to analyze customer needs, wants, and demands and the marketplace. 3. Explain how to design a customer value-driven marketing strategy. 4. Describe how to build profitable customer relationships. 5. Discuss the outcomes of creating customer value. 6. Explain the major trends impacting the marketing landscape.
Creating Customer Value and Engagement Through Marketing for Hospitality and Tourism 1 Indian Hotels Company Limited (IHCL): Delivering an Authentic Customer Experience Founded in 1868 by Jamsetji Tata, Indian Hotels Company Limited (IHC) is part of the Tata Group, a global business consisting of over a hundred enterprises. The IHCL's fundamental approach is underlined in Aspiration 2022, a three-pronged strategy that aims to establish itself as the most profitable and iconic hospitality brand in South Asia. The three key elements of Aspiration 2022 are restructuring, reengineering, and reimagining business interests.
At the heart of this approach, launched in 2018, is the company's desire to deepen guest experience while strengthening its position as the market leader and fueling transformative growth and profitability. The IHCL is the largest hospitality business in South Asia with distinctly Indian origins. Its operations range from hotels to urban leisure and from service retail to travel. Each of the brands—Taj (luxury business and world travelers), SeleQtions (upmarket), Vivanta (modern travelers), The Gateway (premium brand being replaced by Vivanta), Ginger (millennials), Expressions (hospitality ancillary services), and TajSATS (catering)—serve discrete markets.
In 2019–2020 alone, the company opened 12 hotels to total 200 hotels with 25,000 rooms in over a hundred different locations. It is the only Indian hospitality business with key hotels in London, Dubai, San Francisco, and New York. Objectives After reading this chapter, you should be able to: The Taj Mahal Palace Hotel is a five star luxury hotel located near the Gateway of India and is the flagship property of Taj Hotels, Resorts & Palaces. Courtesy of Joe Ravi/Shutterstock. A01_KOTL3516_08_GE_FM.indd 14 09/02/21 2:00 PM 15 Boxed Marketing Highlights The boxed segments introduce you to real people and real industry examples, connecting the chapter mate- rial to real life.
Full-Color Visuals Color format with lively photographs, drawings, and tables will maintain your interest and provide visual aids to learning. Important Memory Tools Chapter Objectives At the start of each chapter, the list will help you focus and organize your thoughts as you are reading. The learning objectives summarize what you need to know after studying the chapter and doing the exercises. Key Terms Key marketing and hospitality terms, highlighted and defined in each chapter, provide you with a conve- nient source for learning and reviewing the professional vocabulary needed for effective communication on the job.
These terms are found in each chapter, and a glossary of all the terms can be found at the end of the book. Chapter Review At the end of each chapter, a summary of chapter content in outline form helps you review, retain key infor- mation, and ties the content of the chapter back to chapter objectives. The format for the chapter review was the suggestion of a student. Marketing HIGHLIGHT Segmented pricing: The right product to the right customer at the right time for the right price I n most hospitality, travel and entertainment products ca- pacity is fixed, but demand varies.
In these situations, a common price may result in many people not being able to access the product during prime times and empty seats during off-peak periods. In some products such as airline transportation and events, all seats may not be the same. Live performances, including sporting events, theater, and concerts, will charge more for seats with great views and less for seats father away from the event. Some airlines charge more for aisle and window seats. Customers wanting bet- ter seats with the capacity to pay for these seats will have the opportunity to purchase the seats they want.
Those who want to see the event or want to get to a certain destination but want to spend less can purchase less expensive seats. Susan Greco gives an example of an opera company, which went from a single price for all seats to pricing based on the location of the seat, increasing the price for better seats and lowering the price for seats in the back. Seat prices on the weekends were increased and those during the week were reduced. The variety of prices allowed the customers to choose what they would pay and the opera company in- creased its overall revenue by 9 percent.
Some customers who previously could not afford to attend now had the op- portunity to attend by selecting tickets further from the stage on weekday nights. The opera company had introduced a simple form of revenue management. Airlines, hotels, and restaurants call it revenue management and practice it religiously. This allows companies to attract customers by having the right product at the right price for the right customer. Segmented pricing and yield management aren't really new ideas. For instance, Marriott Corporation used seat- of-the-pants yield-management approaches long before it installed its current sophisticated system. Back when J. W.
"Bill" Marriott was a young man working at the family's first hotel, the Twin Bridges in Washington, DC, he sold rooms 11.1 Theaters, like the one in the Bellagio Hotel, Las Vegas, where the Cirque du Soleil show "O" is performed, often apply revenue management by charging more for seats with better views and during times when demand is higher. A01_KOTL3516_08_GE_FM.indd 15 09/02/21 2:00 PM 16 Applying Your Knowledge Experiential Exercises These exercises are designed to provide experiences that will illustrate the concepts presented in the chap- ter and provide experiences that you can draw on in the future.
Applying Your Critical Thinking Skills Case Studies The case studies at the end of the book represent real situations that can be used to analyze actual business situations and come up with solutions to your organization's problem. Sometimes, your instructor will use these cases as the basis of class discussions. In-Class Group Exercises These end-of-chapter questions will challenge your students to address real-world applications of the con- cepts presented in the chapter. They can be done in class to supplement the lectures. A01_KOTL3516_08_GE_FM.indd 16 09/02/21 2:00 PM 17 PREFACE We would like to thank the students and instructors who have used this text in the past.
Their support has enabled us to publish the eighth edition of Marketing for Hospitality and Tourism. This book is written with the hospitality and travel students in mind. The solicited and unsolicited com- ments we received from students and instructors have been incorporated into the eighth edition. Students have told us Marketing for Hospitality and Tourism is readable and interesting. One student wrote, "I en- joyed reading this book—it didn't seem like I was reading a textbook." In this newest edition, we strive to maintain the same tone. For instructors, we have listened to your comments and made the text flow more smoothly from a teaching perspective.
The authors have extensive experience working with hospitality and travel businesses around the globe. Our understanding of the hospitality and travel business ensures that the end result is a book that clearly explains marketing concepts and shows how they apply to real-life situations. The book has an international focus, which is especially important in this era of increasing global- ization. Business markets have become internationalized—domestic companies are expanding overseas as foreign companies seek to enter domestic markets—therefore, it is crucial that today's students be exposed to business and cultural examples from other parts of the world.
Rather than have one chapter devoted to international marketing, we have incorporated examples throughout the text. This text has truly evolved as a team project. Without the support of our students and faculty at other universities and colleges, this book would not have developed into the leading book in its category. We thank you for your support and acknowledge below some of the people who have been involved in the de- velopment of the book. Instructor Supplements Instructor's Manual. Includes content outlines for classroom discussion, teaching suggestions, and answers to selected end-of-chapter questions from the text. PowerPoint Presentations.
Our presentations offer clear, straightforward outlines and notes to use for class lectures or study materials. Photos, illustrations, charts, and tables from the book are included in the pre- sentations when applicable. To access supplementary materials online, instructors need to request an instructor access code. Go to www.pearsonglobaleditions.com, where you can register for an instructor access code. Within 48 hours after registering, you will receive a confirming email, including an instructor access code. Once you have received your code, go to the site and log on for full instructions on downloading the materials you wish to use.
We Welcome Your Comments, Suggestions, and Questions We would like to hear your comments on this edition and your suggestions for future editions. Please address comments to Seyhmus Baloglu, seyhmus.baloglu@unlv.edu. Acknowledgments We would like to thank the students and the instructors who have used earlier editions of this book and pro- vided feedback that added value to the users of this edition.
Thanks go to the following group who provided comments and feedback for this eighth edition: Jamie Cooperstein, Delaware County Community College; Gretchen Friend, Columbus State Community College; Debbie Howarth, Johnson & Wales University; Rick Lagiewski, Rochester Institute of Technology; Mary-Pat Maciolek, Middlesex County College; Melih Madanoglu, Florida Atlantic University; Quantella Noto, Southeast Missouri State University; George Ojie- Ahamiojie Wor-Wic, Community College; Kunsoon Park, South Dakota State University; Joel Reynolds, Niagara University; Gregory Turner, Claflin University; Yasong (Alex) Wang, Indiana University of Pennsylvania; Alvin Yu, St. Cloud State University.
A01_KOTL3516_08_GE_FM.indd 17 09/02/21 2:00 PM 18 Preface The following people provided reviews of past editions: Tazeem Gulamhusein, University of Houston; Deepak Chhabra, Arizona State University, Tempe; Dan Creed, Metropolitan State University, St. Paul; Jamal Feerasta, College of Applied Science and Technology, University of Akron; Juline Mills, University of New Haven; David Schoenberg, LaGuardia Community College, CUNY; and Nancy Warren, Highline Community College; Jennifer A. Aldrich, Kimberly M. Anderson, James A. Bardi, Jonathan Barsky, David C. Bojanic, Mark Bonn, Jane Boyland, Bonnie Canziani, Harsha E. Chacko, Deepak Chhabra, Dan Creed, Tim H.
Dodd, Geralyn Farley, Jamal Feerasta, Andy Feinstein, Michael Gallo, Richard M. Howey, Jeffrey Ivory, Dianne Jolovich, Ed Knudson, Robert J. Kwortnik, Ingrid Lin, Ken McCleary, Juline Mills, H. G. Parsa, Edward B. Pomianoski, Hailin Qu, Allen Z. Reich, Howard F. Reichbart, Joan Remington, Emily C. Richardson, Kisang Ryu, John Salazar, David Schoenberg, Ralph Tellone, Muzzo Uysal, Nancy Warren, Anna Graf Williams, and Gregory R. Wood. The following people helped with past editions when they were students to make sure the text was student friendly: Shiang-Lih Chen McCain, Jason Finehout, Michael Gallo, Tazeem Gulamhusein, Walter Huertas, Ming (Michael) Liang, Marvel L.
Maunder, Tracee Nowlak, Michelle North, Sarah Robinson, and Carrie Tyler. We appreciate the support and enthusiasm of the companies that provided advertisements and illustra- tions for this book. These organizations put forth a great deal of effort in finding and providing the materials we requested; working with them was one of the most rewarding parts of producing this book. We would also like to thank our Pearson Team: Daryl Fox, Susan Watkins, and Lara Dimmick. Finally, we would like to thank our families for their support and encouragement. Global Edition Acknowledgments Pearson would like to thank Jon and Diane Sutherland for contributing content to the global edition.
Pearson is also grateful to Alison Maton, Coventry University London and Maureen Griffiths, Monash University for reviewing the content for this edition. What's New in the Eighth Edition The 8th edition of Marketing for Hospitality and Tourism is a landmark entry in the long successful history of the market leader. We've thoroughly revised the eighth edition of Marketing for Hospitality and Tourism to reflect the major trends and forces impacting marketing in this digital age of customer value, engagement, and relationships. At the end of each chapter we have added a group of In-Class exercises.
These are exercises students can per- form that reinforce the information being thought in the chapter. They are meant to bring the marketing class to life for the students. They provide an excellent way for instructors to break up their lectures with engaging hands-on exercises to keep the students engaged. Cristian Morosan, an expert in digital marketing was brought in to write the chapters on digital and direct marketing and the distribution. There have been sweeping developments in online distribution of hotel rooms, online delivery services for restaurants, and online access to peer-to-peer accommoda- tions.
User-generated content on social media can make or break a restaurant, while at the same time providing a useful source of customer information. Listening and gathering data over the Internet has produced large amounts of data, processed by artificial intelligence to give us information that helps us better serve our customers. Dr. Morosan has rewritten Chapters 12 and 16 to include the latest advances in technology and social media. One point of differentiation of the text is it has an international focus. The eighth edition provides new discussions and examples of the growth in global marketing.
As the world becomes a smaller, more competitive place, marketers face new global marketing challenges and opportunities, especially in fast- growing emerging markets such as China, India, the Middle East, Eastern Europe, and Southeast Asia. In the first chapter, we discuss the growing internationalization of the tourism business. To help your students understand the importance of the global aspect of tourism, we include international examples and illustrations throughout the text. Chapter 9 now includes expanded coverage of branding practices in hospitality on global level and gives examples of generational and lifestyle brands.
In Chapter 17, new sections on branding tourist destinations and tourism competitiveness have been added to help students understand how to compete in a global market. The cases include multinational companies and busi- nesses even outside of North America. This international approach makes the text relevant to students all around the world, while showing them that they can find a truly rewarding career in the area of interna- tional business. A01_KOTL3516_08_GE_FM.indd 18 09/02/21 2:00 PM The eighth edition continues to track fast-changing developments in marketing communications and the cre- ation of marketing content.
Marketers are no longer simply creating integrated marketing communications programs; they are joining with customers and media to curate customer-driven marketing content in paid, owned, earned, and shared media. You won't find fresher coverage of these important topics in any other hospitality marketing text. The eighth edition continues to improve on its innovative learning design that has made it the market leader. One design feature of the text is the opening vignette that provides an example of how hospitality companies implement principles that will be discussed in the chapter. New chapter vignettes have been added through the text.
The chapter- opening objectives have been revised, reflecting what is covered in the chapter. The end of the chapter summaries have been rewritten to mirror and reinforce the opening objectives. The marketing highlights that provide industry examples of the marketing concepts discussed in the chapter have been updated and will continue to be a valued benefit of the text. New cases have been added to the collection of case studies. Preface 19 A01_KOTL3516_08_GE_FM.indd 19 09/02/21 2:00 PM 20 Philip Kotler is S. C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University.
He earned his master's degree at the University of Chicago and his PhD at MIT, both in economics. He is the author of Marketing Management (Pearson), now in its fifteenth edition and the most widely used marketing textbook in graduate schools of business worldwide. He has authored dozens of other successful books and has written more than 100 articles in leading journals. He is the only three-time winner of the coveted Alpha Kappa Psi award for the best annual article in the Journal of Marketing. Professor Kotler was named the first recipient of four major awards: the Distinguished Marketing Educator of the Year Award and the William L.
Wilkie "Marketing for a Better World" Award, both given by the American Marketing Association; the Philip Kotler Award for Excellence in Health Care Marketing pre- sented by the Academy for Health Care Services Marketing; and the Sheth Foundation Medal for Exceptional Contribution to Marketing Scholarship and Practice. His numerous other major honors include the Sales and Marketing Executives International Marketing Educator of the Year Award; the European Association of Marketing Consultants and Trainers Marketing Excellence Award; the Charles Coolidge Parlin Marketing Research Award; and the Paul D.
Converse Award, given by the American Marketing Association to honor "outstanding contributions to science in marketing." A recent Forbes survey ranks Professor Kotler in the top 10 of the world's most influential business thinkers. And in a recent Financial Times poll of 1,000 senior executives across the world, Professor Kotler was ranked as the fourth "most influential business writer/ guru" of the twenty-first century. Dr. Kotler has served as chairman of the College on Marketing of the Institute of Management Sciences, a director of the American Marketing Association, and a trustee of the Marketing Science Institute. He has con- sulted with many major U.S.
and international companies in the areas of marketing strategy and planning, marketing organization, and international marketing. He has traveled and lectured extensively throughout Europe, Asia, and South America, advising companies and governments about global marketing practices and opportunities. John T. Bowen is Professor and former dean of the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston and the Barron Hilton Distinguished Chair. He has presented mar- keting courses and seminars in Asia, Australia, Central America, Europe, and South America. He is a consul- tant to both large and small hospitality corporations.
Before becoming an academic, Professor Bowen held positions in restaurant management at both the unit and corporate level. He is on the editorial boards of the Cornell Hotel and Restaurant Administration Quarterly, Journal of Services Marketing, International Journal of Contemporary Hospitality Marketing, and Worldwide Hospitality and Tourism Themes. He is coauthor of Restaurant Marketing for Owners and Managers.
He has received numerous awards for his teaching and research, including the UNLV Foundation Teaching Award, the Sam and Mary Boyd Distinguished Professor Award for Teaching, Founder's Award for Lifetime Support of Hospitality Graduate Education, and the Board of Regents Outstanding Faculty Member. The Graduate Education & Graduate Student Research Conference presented him with the Founder's Award, to recognize his contribution to graduate education. The Hotel and Lodging Association of Greater Houston recognized him with their lifetime achievement award.
He has been a three-time recipient of the annual award from the International Council on Hotel, Restaurant and Institutional Education (CHRIE) for superior published research in the hospitality industry, and he received the John Wiley Award for Lifetime Research Achievement from CHRIE. He was recently cited as one of the five most influential hospitality management faculty in an article published in the Journal of Hospitality and Tourism Education. The Mayor of Houston proclaimed November 21, 2014, as John Bowen Day, in recogni- tion of Dr. Bowen's contribution to the hospitality industry and hospitality education. Dr.
Bowen's formal education includes a BS in hotel administration from Cornell University, an MBA and MS from Corpus Christi State University, and a PhD in marketing from Texas A&M University. Seyhmus Baloglu is Professor and Barrick Distinguished Scholar at the Harrah College of Hospitality, University of Nevada Las Vegas (UNLV), where he has also assumed leadership roles as associate dean of research and director of Harrah Research Center for 10 years. He earned a BS in hotel administration from Cukurova University, an MBA from Hawaii Pacific University, and a PhD in hospitality marketing from Virginia Tech.
He has presented marketing courses and seminars in Asia, Australia, Europe, and the ABOUT THE AUTHORS A01_KOTL3516_08_GE_FM.indd 20 09/02/21 2:00 PM Caribbean. Before joining academia, he held management positions and had diverse background in the industry, including restaurants, hotels, resort clubs, and travel agencies. He has published extensively in leading journals, including Journal of Business Research, Cornell Hospitality Quarterly, Journal of Hospitality & Tourism Research, International Journal of Hospitality Management, Annals of Tourism Research, Journal of Travel Research, Tourism Management, Journal of Travel & Tourism Marketing, and Tourism Analysis.
He received grants, contracts, and consulting projects from tourism destinations, gaming resorts, hotels, airports, nightclubs, and supply-chain or- ganizations. He has been named as one of the significant contributors to the hospitality and tourism literature. His work has been cited extensively across multiple disciplines and fields. His research credentials have earned him both an international reputation and placement on the editorial boards of numerous leading journals. He has presented his work at many national and international conferences, seminars, and symposia and served as key- note speaker and panel participant for numerous international conferences.
Other books he has coauthored are Managing and Marketing Tourist Destinations: Strategies to Gain a Competitive Edge and Handbook of Scales in Tourism and Hospitality Research. He is the recipient of numerous and prestigious teaching, research, and service awards. He has been named as the recipient of UNLV Alumni Association's Outstanding Faculty Member of the Year and the John Wiley & Sons Lifetime Research Achievement Award from the International Council on Hotel, Restaurant and Institutional Education (ICHRIE).
His other major honors include annual research awards from ICHRIE, the Sam and Mary Boyd Distinguished Professor Awards, the Ace Denken Research Award, the Claudine Williams Distinguished Chair, and Harrah Distinguished Chair. Contributor Dr. Cristian Morosan is an associate professor at the Conrad N. Hilton College of Hotel and Restaurant Manage- ment at the University of Houston. Prior to joining Hilton College in 2012, he taught marketing at Temple Uni- versity, Kansas State University, and University of St. Thomas Houston.
His work has been funded by regional organizations such as the Hospitality Financial and Technology Professionals, state and local destination organi- zations, and universities such as University of Houston and Kansas State University.
His research has resulted in over 110 peer-reviewed publications that include book chapters, journal articles, invited articles, and conference proceedings, in journals such as Tourism Management, International Journal of Hospitality Management, Interna- tional Journal of Contemporary Hospitality Management, Journal of Travel & Tourism Marketing, Journal of Travel Research, Journal of Hospitality & Tourism Research, and Journal of Hospitality Information Technology.
He is the recipient of several prestigious academic awards, including the Teaching Excellence Award for Innovation in Instructional Technology, Stephen Rushmore/HVS Research Excellence Award, The Provost's Certificate of Excel- lence in Recognition of Extraordinary Achievements, the Barbara S. Stowe Endowed Faculty Development Award and Big 12 Faculty Fellowship Award.
He is a member of the Editorial Board of International Journal of Con- temporary Hospitality Management, International Journal of Hospitality Information Technology, and Tourism Review International, and has been recognized by the International Council on Hotel, Restaurant and Institutional Education (I-CHRIE) as an outstanding reviewer in the information technology area.
He presented his work at I-CHRIE, the International Federation for Information Technologies in Travel and Tourism, the International Hos- pitality Information Technology Association (where he received the iHITA Best Research Paper awards in 2015 and 2018), Hospitality Financial and Technology Professionals, and Travel and Tourism Research Association. He has numerous media appearances and invited presentations at conferences, colloquia, and workshops through- out North America, Europe, and Asia. Dr. Cristian Morosan earned a Bachelor's of Science from University Ștefan cel Mare Suceava Romania, and Mas- ter of Science and PhD from Iowa State University.
About the Authors 21 A01_KOTL3516_08_GE_FM.indd 21 09/02/21 2:00 PM A01_KOTL3516_08_GE_FM.indd 22 09/02/21 2:00 PM This page is intentionally left blank 1 Creating Customer Value and Engagement Through Marketing for Hospitality and Tourism 2 Services Marketing Concepts Applied to Marketing for Hospitality and Tourism 3 Marketing Strategy: Building Customer Engagement, Value, and Relationships Defining Hospitality and Tourism Marketing and the Marketing Process I M01_KOTL3516_08_GE_C01.indd 23 27/01/21 12:44 PM M01_KOTL3516_08_GE_C01.indd 24 27/01/21 12:44 PM This page is intentionally left blank 1.
Describe the importance of marketing to the hospitality industry and outline the steps in the marketing process. 2. Explain how to analyze customer needs, wants, and demands and the marketplace. 3. Explain how to design a customer value-driven marketing strategy. 4. Describe how to build profitable customer relationships. 5. Discuss the outcomes of creating customer value. 6. Explain the major trends impacting the marketing landscape.
Creating Customer Value and Engagement Through Marketing for Hospitality and Tourism 1 Indian Hotels Company Limited (IHCL): Delivering an Authentic Customer Experience Founded in 1868 by Jamsetji Tata, Indian Hotels Company Limited (IHC) is part of the Tata Group, a global business consisting of over a hundred enterprises. The IHCL's fundamental approach is underlined in Aspiration 2022, a three-pronged strategy that aims to establish itself as the most profitable and iconic hospitality brand in South Asia. The three key elements of Aspiration 2022 are restructuring, reengineering, and reimagining business interests.
At the heart of this approach, launched in 2018, is the company's desire to deepen guest experience while strengthening its position as the market leader and fueling transformative growth and profitability. The IHCL is the largest hospitality business in South Asia with distinctly Indian origins. Its operations range from hotels to urban leisure and from service retail to travel. Each of the brands—Taj (luxury business and world travelers), SeleQtions (upmarket), Vivanta (modern travelers), The Gateway (premium brand being replaced by Vivanta), Ginger (millennials), Expressions (hospitality ancillary services), and TajSATS (catering)—serve discrete markets.
In 2019–2020 alone, the company opened 12 hotels to total 200 hotels with 25,000 rooms in over a hundred different locations. It is the only Indian hospitality business with key hotels in London, Dubai, San Francisco, and New York. Objectives After reading this chapter, you should be able to: The Taj Mahal Palace Hotel is a five star luxury hotel located near the Gateway of India and is the flagship property of Taj Hotels, Resorts & Palaces. Courtesy of Joe Ravi/Shutterstock.
M01_KOTL3516_08_GE_C01.indd 25 27/01/21 12:44 PM 26 Part I Defining Hospitality and Tourism Marketing and the Marketing Process Reengineering involves a greater use of technology and investment in employees to help deliver improved customer experience with ease of use and personalization of ser- vices. The process also calls for aligning each brand more precisely so that growing market segments can be targeted with efficiency. The IHCL has managed to fuse the warmth of traditional Indian hospitality with the efficiency of world-class service. Taj Hotel's move into the increasingly competitive digital environment in its hunt to woo millennials is a prime example of reengineering.
Recognizing the danger that apps like Airbnb and OYO present to the business, the group is adapting to capture the millennial market, often the only generation consistently spending more on travel. Traditionally, Taj Hotels targets the 35–60 age group, but it is now tapping into a broader market that would normally take two holidays a year, an international one and a domestic one. To cater to this new market, the hotel chain needed to radically rethink some of its offerings and marketing strategies. Millennials are more interested in hotel and holiday experiences that allow them to be immersed in local culture and interact with local peo- ple.
For the business, this means creating a blend of luxury and reality. Experiences typi- cally revolve around local cuisine, art and wellness, all of which have been personalized to match the needs and expectations of the customers. A couple on a trip to Puducherry (or Pondicherry) could taste French delicacies or sample the bakeries there, just like someone holidaying in Goa could savor seafood and visit the seaside shacks serving feni, a tradi- tional liquor distilled from the fermented juice of cashew apples. Often, the business wraps up the local experiences with a common thread.
In 2018, for example, the theme was "changing relationships." The idea was to celebrate life, spe- cial events, and moments with loved ones on holiday. The hashtag #WeTime was used to symbolize the real emotional impact of spending time with loved ones and how it helped build better relationships and greater bonds. It was an opportunity to reconnect with oth- ers. Taj Bekal Resort & Spa in Kerala, for instance, came up with an offer where families could experience traditional village life and enjoy local delicacies together.
The focus on customer value and engagement is a direct reaction to the growing demand for experiential vacations and hotel stays coupled with increased and improved digital connectivity. The millennial market has rising income levels and demands affordable airfare, curated vacation packages, and will expect mobile access to services and informa- tion. Taj Hotels has tried to position itself to provide tailor-made services such as personal- ized dining, excursions, or room service options rather than off-the-shelf packages.
As a broader part of the scheme, to improve the experiences of customers, the IHCL has positioned Taj as a luxury brand (88 hotels in 54 destinations), while Vivanta focusses on the upscale segment (32 hotels in 26 locations), and Ginger covers the lean luxury market (64 hotels in 41 locations). The Ginger brand is particularly…