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Overview
Introduction to Industry Marketing Mix (8 Ps)
1. 2. 3. 4. 5. Product (Product levels & Service Flower) Price Place (Channels of Distribution) Promotion People (Employees & Customers i.e. market segmentation) 6. Physical Evidence 7. Process (Service Blueprint) 8. Productivity & Quality (Service Quality Dimensions / RATER Analysis)
Overview
SWOT Analysis PEST Analysis Recent Developments University Questions
Classification of Hotels
Residential
Commercial
Resort
International
Floating On basis of standards and control (Approved, unapproved by Dept. of Tourism) On basis of stars (Facilities, quality, luxury aspects)
Product
Characteristics
All hotels of the same category core services are same distinguished by peripheral services like hotel personnel Continuous change in the product mix
Eliminate outdated services Incorporate latest developments as per changing likes and dislikes of the customers
Product
Reception Lodging Boarding Entertainment
Shopping
Personal care
Communication & Transport
Medical
Product
Product Levels
BENEFIT MEANING The fundamental benefit or service that the customer is buying WITH RESPECT TO THE TRAVEL AND HOTEL INDUSTRY Rest & Sleep
1. CORE BENEFIT
2 BASIC PRODUCT
3 EXPECTED PRODUCT
Hotel room with all amenities A clean bed, fresh towels, working lamps, and a relative degree of quietness, etc.
Prompt services, Remote controlled 4 AUGMENTED That meets the customers desires AC & TV, 2 Telephone lines, etc PRODUCT beyond expectations
5 POTENTIAL PRODUCT The possible evolution to distinguish the offer Wi Fi connections in hotel rooms, home theatre systems, etc.
Product
Service
Flower
External building and design
CORE: SLEEP
Lounge facilities
Medical
& REST
Reception
Security Leisure facilities SUPPLEMENTARY SERVICES
Price
Includes For room tariffs For food and beverage For functions
Pricing strategy for promotions: Seasonal discounts Trade discounts Special discounts
Place
In hotel services, due to intangibility factor, the distribution systems and channels and not given importance
INFORMATION
One level
Hotel Companies Travel Agents Users
Two level
Hotel Companies Tour Operators Travel Agents Users
Promotion
Advertising & Publicity Sales promotion Word of mouth
Personal selling
Telemarketing
People
External Customers Receptionist People Porter
House keeping
Internal Employees
Waiter
Chef Back - end employees etc
Pleasure Segment
People from different walks of life leisure and entertainment.
Demographic Segment
Based on income, occupation, age, gender, education.
Geographic Segment
Based on geographic location of hotels
Frequency Segment
Such as light, medium and heavy users.
Physical Evidence
Location of the hotel Hotel building
Check in
Eat
Process Registration
Registration System
Registration System
What are the determinants of quality in the hotel industry? [Univ Q Nov 05(10 marks)]
Adaptability & Prompt Service Reliability
Responsiveness
Empathy
Tangibility
Physical Evidence
SWOT Analysis
Strengths:
Rich natural and cultural diversity of India Demand-supply mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. Government support for the development of the infrastructure and of new tourist destinations and circuits.
The Department of Tourism (DOT) - the "Incredible India" campaign
SWOT Analysis
Weaknesses:
Poor support infrastructure
Slow implementation of Govt. measures Susceptible to political events
The internal security scenario and social unrest also hamper the foreign tourist arrival rates.
SWOT Analysis
Opportunities:
Rising income of Indians which is expected to enhance leisure tourism. Increased airline activity has stimulated demand and has helped improve the infrastructure.
It has benefited both international and domestic hotels.
SWOT Analysis
Threats:
Fluctuations in international tourist arrivals
Domestic tourism needs to be given equal importance and measures should be taken to promote it.
Increasing competition by several international major for the existing Indian hotel majors. Guest houses replace the hotels
PEST Analysis
Political
Tighter drink/drive laws may discourage local custom using restaurant Disability Discrimination Act Employment law (e.g. minimum wage, hours of work, etc)
Economical
Possible recession Unfavorable currency rates
Social
Ageing population - more people with more leisure time Countryside not as 'exciting' as a city break
Technological
Teleconferencing / Web cams Internet a key, fast growing avenue for advertising.
Recent Developments
Hotel Marketing from the Indian Perspective Application of the marketing concept infant stage Major Indian players Taj Hotels, Oberoi Group, ITC, etc Emphasis to improve managerial proficiency in the unclassified hotels Need to increase governmental support Development of tourism would further boost this industry
University Questions
Discuss the detail relevance of 8 Ps in hospitality industry. [Univ Q Nov 03(10 marks)]
Answer includes the following: Introduction in brief Product mix Pricing strategies Distribution channels Promotion tools People mix (exclude market segmentation) Physical evidence Steps in the process (blueprint diagram excluded) Rater analysis Recent developments in brief