A.

Market

A place where buyers and sellers meet personally to finalize the deal after
personal inspection of goods. It represents that place where buyers and
sellers come in contact with one another due to which the prices of goods and
services tend to be equalized quickly and easily.

A market does not mean a place of exchange. It is an arrangement that

provides the opportunity to exchange goods and services for money or
money's worth.

The market comprises all possible outcomes sharing a particular need or want
who might be eager and able to engage in exchange to gratify this need or
want.

B. Types of Market
According to Philip Kotler,

a. Consumer Market: Those who buy goods for their personal use or
purpose.

Categorized in several ways:

1. Fast Moving Consumer Goods
○ These are high volume, low unit value, and fast
repurchase.
○ products sold quickly and relatively cheaply.
○ These are packaged foods, beverages, toiletries,
cosmetics, cleaning supplies, and other low-cost
household items.
○ Examples: ready-to-eat meals, baked beans,
newspapers.
2. Consumer Durables
● According to Investopedia, these are goods that do not
need to be purchased very often.
● Low volume, high unit value. Divided into:
○ White goods: are large home appliances such as
stoves (British: cookers), refrigerators, freezers,
washing machines, tumble driers, dishwashers,
and air conditioners.
○ Brown goods: are relatively light electronic
appliances such as computers, radios, audio
equipment, and televisions.
3. Soft goods
 ● Similar to consumer durables, except that they wear out
more quickly and therefore, have a shorter replacement
cycle.
● generally refers to goods that are literally soft, such
as clothing and bedding.
● Examples: clothes
4. Services
● Transaction where there is no physical goods transferred
from the seller to the buyer.
● study.com defines services in marketing as “an intangible
activity, benefit, or item offered for economic value”

b. Business Markets: institutions or people buy industrial goods either

for the purpose using in business operations. Also known as business-
to-business marketing or B2B marketing.
c. Global Markets: interconnected system that facilitates the exchange of
goods, services, and labor across international borders. It is sometimes
used to refer to overseas expansion efforts through licensing,
franchises, and joint ventures.
d. Non-profit and Governmental Markets.
■ Non-profit refers to the activities and strategies that spread the
message of the organization, as well as solicit donations and
call for volunteers. A type of organization that doesn’t ear profits
for its owner.
■ Governmental markets is a market where the buyers are the
federal, state, and municipal governments. Most government
business is won by a bidding procedure to ensure fairness and
competition. Governments buy both commodities and services
from the private sector. Governments and consumers from the
private sector tend to buy similar products and services, apart
from some unusual items including nuclear weapons such as
fighter jets and aircraft carriers through government
procurement

C. Definition of Marketing

Marketing is the organizations task to determine the needs, wants, and

interest or target markets and to deliver the desired product/ service
more effectively and efficiently than competitors is a way that preserves
or enhances the consumer’s and the society’s well-being.

According to Harry L. Hanson, marketing is “the process of discovering

and translating consumer needs and wants into prudent and service
specification, creating demand. It is the performance of those business
activities that direct flow of goods and services from the producers to
the consumers”

According to Philip Kotler, the Father of Modern Marketing, marketing

is working with markets attempting to actualize potential exchanges, a
human activity directed at satisfying needs and wants through the
exchange processes.

American marketing Association defines marketing as “the activity , set

of instituitons, and processes for creating, communicating, delivering,
and eschanging offerings that have value for customers, clients,
partners, and society at large”

There are several basic components underlying marketing,

namely:

1. Needs - things we must have in order to stay alive.

2. Wants - things we don’t really need but would like to have.

Particulars Needs Wants

Hunger Food Chinese: noodles,

siomai

Fashion Wear Clothing Uniqlo, Bench,

Levi’s

Shelter Housing Condominium,

dorm, townhouse

Recreation Sports Basketball,

volleyball

Transportation Vehicle Cars, vans, bus,

jeepney

3. Potential Exchange - where the buyers and sellers physically

meet and exchange goods and services.
4. Human Activity - concerned with people and the activities
involved in the flow of goods and services from producers and
consumers
5. Demands
a. Demands are human wants that are backed by buying
power
 b. Consumers view products as bundles of benefits and
choose products that give them the best bundle for their
money.

D. Different Aspects of Marketing

NATURE OF MARKETING

1. Consumer-oriented processs - Identifying the customer needs is the

most significant aspect of marketing organizations.
2. Starts and ends with the customer. - It is essential for the marketers
to collect relevant information about customer choices and preferences
about the product or services
3. Guiding element of business - Marketing is considered as an
element in the development of every economy.
4. System-oriented processs - Marketing is an input-output process.
there is a whole lot of interaction between the marketer and the
customer.
5. Goal-oriented process - No business can be successful unless it has
a goal to achieve.
6. Exchange process - marketing is a dynamic process of exchange of
goods and services between sellers and the buyers.

IMPORTANCE OF MARKETING

Marketing plays a crucial role in the success and growth of a business. Its
importance can be summarized through several key functions and benefits:

1. Boosting Sales and Revenue

Marketing is essential for informing consumers about products and
services, which can lead to increased sales. By educating potential
customers on the benefits and features of a product, businesses can
convert interest into purchases. Effective marketing strategies can
create various revenue options, such as promotions and
advertisements, which help attract more buyers and enhance
profitability.
2. Building Brand Reputation
A strong marketing strategy helps establish and maintain a positive
brand image. By consistently delivering quality products and engaging
with customers, businesses can build trust and loyalty. A well-crafted
brand reputation not only attracts new customers but also retains
existing ones, ultimately contributing to long-term success.
3. Understanding Consumer Needs
 Marketing involves extensive research to understand consumer
preferences and behaviors. This insight allows businesses to tailor their
products and services to meet specific needs, thus enhancing
customer satisfaction. By identifying market trends and customer
demands, companies can innovate and adapt their offerings
accordingly.
4. Creating Competitive Advantage
In a crowded marketplace, effective marketing differentiates a business
from its competitors. By developing unique selling propositions and
engaging marketing campaigns, companies can create a compelling
reason for consumers to choose their products over others. This
competitive edge is vital for attracting and retaining customers.
5. Facilitating Growth and Expansion
Marketing is integral to a company's growth strategy. It helps identify
new market opportunities, expand into different demographics, and
even enter international markets. By leveraging various marketing
channels, businesses can reach broader audiences and scale their
operations effectively.
6. Enhancing Customer Engagement
Through targeted marketing efforts, businesses can foster deeper
connections with their audience. Engaging customers through social
media, personalized content, and interactive campaigns not only builds
loyalty but also encourages repeat purchases. This engagement is
crucial for sustaining business momentum and achieving long-term
success.

E. Benefits of Marketing
a. Benefits to Society
■ It is an instrument for changing the living standards of
society. Society depends on marketing for all its requirements
of products and services. Marketing is a means to convert
production and purcahsin power into consumption. Marketing is
the delivery of standard of living.
■ It provides gainful employment opportunities. Just as every
industry provides employment opportunities to thousands of
skilled, semi-skilled, and unskilled workers. Marketing is a
complex and mammoth mechanism involving number of
functions and sub-fucntionsm warranting the services
■ It is the stabilizer of economic conditions. Economic stability
is the sure dugn of any efficient and dynamic economy. It
indicates that the economic activities are set at high which are
consistent and continuous. It is marketing that reduces the
severities of the extreme economic situations of inflation and
 deflation as it connects the two wheels of production and
consumption

b. Benefits to the Individual Firms

● It is an outlet to earn profit. Profit is the core on which the
super-structure of business is built. To earn the desired profit,
the business community has to struggle as there is no simple
and straight formula to earn profit.
● It provides vase for business decisions. The basic problems
of every producer are: what to produce; when to produce; how
to produce; how much to produce and at what cost to make the
goods and services are available.
● It is a source of new ideas. The marketing conditions are ever
changing. It is thr environmental changes that bring about the
changes in the business variables at unit. It means that the
consumer needs, likes, tastes, preferences, etc. duffer from time
to time, and place to place

F. Marketing Philosophies

Marketing Concept

The starting point of this concept is the customer rather than the product. The
business is to start with the consumer and conclude with the necessary
product.

For instance, most motorists really disliked waiting in lines. In response, South
and Luzon Expressways began offering Electronic Pass (E-Pass) which
allows customers to avoid queuing in long lines.

Selling Concept

It states that, “we sell what we make” which means that mere making
available the best product is not enough. It is useless unless the company
resorts to forceful salesmanship. Effective sales-promotion, advertising and
public relations are of top significance.

Typically, the selling concepts is practiced with unsought goods. these are life
insurance, vacuum cleaner. etc.

WHAT IS HOSPITALITY?
It refers to the process of relationship between a guest and a host. It is the act of congeniality in the reception of
the guests and looking after their basic needs mainly in relation to food, drink, and accommodation. Hospitality
marketing deals with both tangible and intangible products and aspects of the hospitality and tourism industry

WHAT IS SERVICE?

"A service is any activity or benefit that one party can offer to another that is essentially intangible and does not
result in the ownership of anything. Its production may or may not be tied to a physical product."

-Philip Kotler

"Services are those separately identifiable, essentially intangible activities which provide want satisfaction, and
not necessarily tied to the sale of a product or another service. To provide a service may or may not require use
of tangible goods. However, when such use is required, there is no transfer of title (permanent ownership) of
these tangible 800ds."

- William J. Stanton

THE CONCEPT OF SERVICE

Service is an act of courtesy not only providing what the customers want but giving them beyond their
expectations. Although most of the time service providers are only limited with the provision of basic services and
products, they must be mindful of what everything the customer needs.

1. Friendliness

2. Understanding and Empathy

Empathy is one of the basic needs which customers are looking for.

3. Fairness

4. Control represents the customers' need to feel as if they have an impact on the way things turn out. This brings
confidence in the customer's mind.

5.Options and Alternatives

Customers need to feel that other avenues to getting what they want are available.

6.Information

GROWTH OF SERVICE SECTOR

The following can be noted as some of the implications of such changes in the service operations:

1. Growing demand for many services;

2. Greater competition;

3. Innovation through the application of new and improved technologies;

 4. Evolution of customer needs and behavior; and

5. Introduction of better marketing strategies.

REASONS FOR THE GROWTH OF SERVICE SECTOR

1. Higher percentage of working women

2. Greater complexity of new products

3. Greater life expectancy

4. Increasing complexity of life

5. Greater concern for ecology

SERVICES MARKETING

Service is concerned with creating brand awareness and inducing trial before sale. It also aims at demonstrating
benefits and building brand awareness most effectively after the sale. It is the process of researching and
promoting the nonphysical goods known as services.

FUNCTIONAL DIFFERENCE BETWEEN GOODS AND SERVICES GOODS

1. Can be precisely defined

2. Can be measured objectively

3. Are delivered

4. Production and distribution are two separate functions

5. Cost-based pricing

6. Months to years of time interval between production and consumption

7. Consistent delivery in case of goods

8. Days to years of shelf life

9. Customer perception about goods is standardized.

SERVICES

1. Defined generally, not precisely

2. Can be measured subjectively

3. Are manufactured

4. Production and distribution happen at the same time.

5. Limited cost-based pricing

6. Consumption is simultaneous or shortly after production.

 7. Variable delivery of service

8. Zero shelf life - Immediate distribution

9. Customers have to consume a service to evaluate it.

HOSPITALITY MARKETING

Hospitality marketing is centered on thinking about the business in terms of customer needs and satisfaction.
Hospitality marketing takes a look at how different sectors of the hospitality industry (e.g., accommodations,
restaurants, travel and tourism) develop marketing strategies to promote their products or services, resulting in
an increase in revenue (REVFINE 2022).

HOSPITALITY MARKETING ORIENTATION

1. Supplier Provider Orientation - In a situation where the market demand is higher or there is a scarcity of
resources, particularly in the lodging sector, the provider orientation is a better option. In the provider
orientation approach, the hospitality industry focuses on internal operations, activities and procedures, and
guests are expected to adjust to the hospitality offerings instead of the offerings being adjusted to the guests.

2. Sales Orientation - This orientation or philosophy believes in cut-throat competition and concentrates on
forceful sales through competitive pricing.

3. Here, the service provider does not bother about the profits. This concepts also has the limitation of
standardization of products and services.

4. Promotional Orientation - This orientation has given importance to the promotional activities. Here, the
service provider feels that forceful selling does not work unless promotional activities like advertising,
personal selling, sales promotion, public relations, etc.

5. Marketing Orientation - The marketing orientation or the customer orientation focusses on the needs and
wants of the guests in hospitality services. Here before the services are provided to the guests, proper survey
is conducted to collect information regarding the preferences and tastes.

IMPORTANCE OF HOSPITALITY MARKETING

Hospitality marketing encompasses a wide range of activities related to travel. The hospitality industry is a
service-oriented business providing food and accommodation to travelers. The hospitality business is gaining its
momentum as it is increasingly becoming important to the economic well-being of the society.

The development in the field of hospitality business ushers changes in technology, socioeconomic environment,
life styles, and rising guest expectations

CHARACTERISTICS OF SERVICE MARKETING

Services have a number of unique characteristics that make them different from products. Some of the most
commonly accepted characteristics are:

1. Intangibility- Can't be seen, tasted, felt, heard, or smell before purchase

2. Inseparability- Can't be separated from service providers

3. Heterogeneity- This refers to the multifaceted different experience that may be had from a single type of
service. It is considered as a factor to distinguish goods from services

4. Perishability- Can't be stored for later sale or use

 5. Ownership- Ownership remains with the service provider.

TYPES OF MARKETING IN SERVICE INDUSTRIES

1. External Marketing- The transaction between the marketer and the customer

2. Interactive Marketing- Marketing is an interaction between the buyer and the seller at particular point of
time

3. Internal Marketing- Internal marketing is a very significant aspect of service marketing. The marketing
process that enables the marketer to deliver promises to the customer is called internal marketing.

4. The service firm must select the right man for the right job and develop them as customer-oriented
employees.

STRATEGIES TO MANAGE HOSPITALITY SERVICE BUSINESSES

1. Managing the employees is a significant aspect of the service delivery.

2. Training and motivating employees to provide good customer service is internal. Marketing point of
encounter is any point at which the employee encounters the customer.

3. Familiarization trips encourage clients to experience the enterprise in a low risk situation.
Whenever there are new or fresh customer in case of a service. He or she should be familiarized
and educated about the use of some of the tools or equipments while service is being provided

4. The services provided by the organization should be more or less consisten in nature, as most of
the services be provided correctly but they should be delivered in the same way every time.

5. Total Quality Management system should be used to ensure consistent services.

MANAGING CUSTOMER EXPECTATIONS AND PERCEPTIONS OF HOSPITALITY SERVICES

One should understand that it is highly difficult for any company or service firm to meet all expectations of all
customers. Expectations of every customer are changing and increasing. A firm should should look to the
determinants of expectations and check the firm's capabilities Hence, the service provider should set an optimum
level of service expectation for its customer as very high expectation can lead to a highly dissatisfied customer

HOTEL CUSTOMER AND PRINCIPAL EXPECTATIONS

TYPE OF SERVICE TYPE OF CUSTOMER

-HOTEL -GUEST

PRINCIPAL EXPECTATIONS

- PROVIDE A CLEAN ROOM.PROVIDE A SECURE ROOM TREAT ME LIKE A GUEST

HOSPITALITY SERVICE ENCOUNTER

Hospitality service encounter is referred to as interaction between the hospitality service provider and guests.
The success or failure of such an encounter depends on factors like attitudes, skills, expectations, desires, and
personalities. The guests come with a whole lot of expectations about the quality of service and the service
provider brings human resource, training, and other resources along with management expectations.
THE TIME OF CHECKING INTO A HOTEL THE FOLLOWING SERVICE ENCOUNTERS MIGHT TAKE PLACE

1. Arrival of guest at the entrance

2. Greeting

3. Reception

4. Luggage Handling

5. Trip to Room

6. Entry into the Room

THE SIXS’S OF SERVICE ENCOUNTER

The hospitality provider must ask question on:

1. Specification - Describing what, when, where, and how service is provided.

2. Staff - Who the service staff are, what skills the staff have, what training they have undergone, how
committed the service personnel, etc.

3. Space - Where the service happens, appropriateness of the space for service, adequacy of the space etc.

4. Systems - Information adequacy, coordination between various departments.

5. Support - What kind of financial, human, and other support-reward systems, technology, employee
training, supervision, etc.

DETERMINANTS OF SERVICE QUALITY

1. Reliability

A hospitality customer looks for consistency in performance and dependability.

The service provider should try to keep the promises made from the very beginning.

2. Responsiveness

This is another factor which influences the customer expectation.

The service provider should have willing and ready employees to provide service.

Promptness in service is a crucial factor which influences the customer perception.

3. Competence

service.

The employees should possess the required skills and knowledge to perform the

4. Access

Easy accessibility and approachability of the contact personnel is another significant factor which influences the
customer expectation. it means the service is easily accessible by telephone, lines are not busy and the
customer is not put on hold.

5. Courtesy
The service contact personnel should be polite, respectful, considerate and friendly.

6. Communication

An open system of communication is very important in hospitality services.

The service provider should inform the customer using the language they understand and listen to customers
actively.

7. Credibility

Trustworthiness, credibility, and honesty of the service personnel are other factors which the hospitality customer
looks from hospitality encounter.

The service provider should keep in mind the interests of the customer and the company reputation while
delivering the service.

8. Security

Every hospitality customer is concerned about physical safety, financial security, and confidentiality.

The service provider should make sure that the customer is made comfortable during their stay.

9.Understanding -

Knowing the customer

The hospitality service provider should be a shrewd salesman making all the efforts to understand the customer's
needs so that he can deliver personalized services as per the specific requirements of the guests

10. Tangibles

Since most of the hospitality products and services are intangible in nature, service provider should include
necessary physical evidence of the service to make it more tangible in nature.

SOME OF THE AREAS/PROCESSES WHERE THIS APPROACH MAY ADD VALUE

1. Hotel-wide

2. Enhance customer loyalty

3. Reduce employee attrition

4. Productivity/Efficiency improvement

5. Improve work-life balance

6. Reduce billing errors/losses

7. Developing better performance measures/metrics

8. Increase revenue

9. Reduce cost

10. Capture "voice of customer" data

FRONT OFFICE OPERATIONS AND SALES AND MARKETING

1. Reduce wait-time during peak check-in time

2. Reduce wait-time during peak check- out time

3. Eliminate billing errors and improve accuracy

4. Reduce "no shows"

5. Increased occupancy

6. Utilize optimally of the current product mix to increase revenue

7. Reduce/Eliminate loss calls (operator's area

8. Maintain accuracy of information

FOOD AND BEVERAGE SERVICE PRODUCTION

1. Maintain optimal inventory.

2. Minimize wastage/pilferage.

3. Standardized output of food and beverage.

4. Reduce the time from order to service.

5. Utilize optimally the current product mix to increase revenue.

ACCOMMODATION OPERATION-HOUSEKEEPING

1. Reduce the turnaround time of making/turning down a room

2. Standardization of cleanliness across areas

3. Purchase/Stores

4. Reduce inventory surplus

5. Cost Benefit Analysis between cost of inventory and cost of storage oil products where prices vary
seasonally.

6. Standardize the operating procedure of issuance to various departments

7. Reduce the turnaround time of issuance to various departments

HUMAN RESOURCES PERSONNEL

1. Maintain accuracy of payroll

2. Have a good system of documentation management

3. Reduce the turnaround time of recruitment

4. Increase the employee satisfaction rate

Marketing Mix

● The term "marketing mix" was coined by Neil Borden in the 1950s. He used it to describe the variety of
tactics and strategies that companies use to market their products. The "mix" in "marketing mix" refers

to the combination of different elements that work together to achieve marketing objectives.

● The term "marketing mix" refers to the blend of different elements that a company uses to market its

product effectively. It's a mix of strategies and tactics, hence the name "mix." The idea is to find the

right combination of these elements—product, price, place, and promotion—to meet the needs of

customers and achieve business goals.

The hospitality marketing mix is a strategic framework used to promote and manage services in the hospitality

industry. It involves a blend of elements that help businesses effectively attract, satisfy, and retain customers.

The traditional marketing mix, often referred to as the 4 Ps (Product, Price, Place, Promotion), is adapted in the

hospitality industry to address the unique aspects of service-based businesses such as hotels, restaurants, and

travel services.

Target Market

A target market is a specific group of potential customers that a business aims to reach with its products or

services. This group is identified based on various characteristics such as demographics, psychographics,

geographic location, and behavior.

4P’s of Marketing Mix

Marketing Mix involves four key elements: Product, Price, Promotion, and Place. These elements work together

to meet the needs and desires of customers.

Product

The actual item that a consumer purchases, including packaging, image, guarantee, and after-sales service.

Products are commodities and services that solve problems and satisfy the needs of consumers. A product can

be tangible, such as a vehicle or a piece of clothing, or intangible, such as a cruise or house cleaning service.

Price

The amount of money or goods exchanged for a product. It can reflect the nature of the relationship between

customer and provider. Price is what consumers pay for a product. It should reflect market trends, be affordable

for consumers, and profitable for the business. Prices can vary based on supply, demand, and whether the

product is positioned as a luxury or budget option.

Promotion

The communication tool used to inform, educate, persuade, and remind customers about a product. Promotion

involves reaching the target audience with the right message to boost sales. It uses various channels like social

media, and TV ads to show consumers why they should buy the product over others.
Place

The distribution channels through which a product reaches the consumer. It’s about ensuring that the product is

available at the right place and time to meet customer needs. Place refers to where and how a product is

purchased and distributed. It includes all the ways a business connects with its target customers to make it easy

for them to buy the product.

Extension of 4 P's - 7 P's

According to Stevie Langford (2021), as marketers, we know that it's foolish to underestimate the power of

planning. For most of us, it means it is necessary to the way create a suitable and effective marketing strategy.

The 4 P's paved modern academics, Booms and Bitner, who in 1981 saw 3 additional factors that serve a great

purpose: physical evidence, people, and process. This formed the extended marketing mix that we know today

as the 7 P's of marketing mix.

Once we are aware of the extended marketing, it quickly becomes apparent that the three elements that form the

extended framework really make a difference.

1. People - It refers to anyone directly or indirectly involved in the business side of enterprise. People are also

the heart of every business, because without people, you have no one to market to; no one is there to buy your

product or make use of your services.

2. Process - involves how your business runs, how the service is delivered, how the product is packaged, how

your customers move down, etc. It describes the series of actions or elements that are involved in delivering

product or service to the customer.

3. Physical Evidence - is the last extension of marketing mix (7Ps). Physical evidence is about proof of

purchase. This is an important aspect because it encompasses the overall existence of your brand. Think of

website, branding, social media, the logo on your building, your restaurant store's décor, the packaging of your

products and the post purchase thank-you email. All of these elements that we can offer to your customer is the

physical evidence they need to be certain that your business is viable, reliable and legitimate.