Marketing management is the practical application of marketing techniques. It is the analysis, planning, implementation, and control of programs designed to create, build, and maintain mutually beneficial exchanges with target markets. The marketing manager has the task of influencing the level, timing, and composition of demand in way that will achieve organizational objectives.
Marketing management is analysing market opportunities, researching and selecting target markets, developing marketing strategies, planning marketing tactics, and implementing and controlling the marketing effort.
Marketing Management is the process of analyzing, planning, implementing, coordination and controlling programs involving the conception, pricing, promotion and distribution of products, services, and ideas designed to create and maintain beneficial exchanges with target markets for the purpose of achieving organizational objectives.
Marketing Management is the analysis, planning, implementation and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.
WHAT IS SERVICE?
Any activity or benefit that 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 phsyical product.
(Kotler 1994: Swarbrooke, J. & Horner, S.; 1996)
BASIS MARKETING CONCEPT :
1. Requirement
2. Desirement
3. Demand
4. Product
5. Value
6. Satisfaction
7. Quality
8. Exchange
9. Transaction
10. Communication
11. Market
IS THE CHARACTERISTICS OF SERVICES ANY DIFFERENT TO THE PHYSICAL PRODUCTS?
Information scientists are often providing services (eg advice, or searches), rather than physically distinct products. Marketing a service is more difficult than marketing a tangible product.
They identify the following as being characteristic of services:
1. Intangibility
- Unlike products, services are mainly intangible by nature.
- Services are difficult to measure, pre-test or demonstrate.
- It is impossible for the consumer to touch, smell, feel or hear the service offering in the same way as they can test a product.
- It is difficult for clients to tell in advance what they will be getting.
- Promotion includes the management of evidence of a product through images, words, facts and figure, etc.
- Tourism marketers tend to ‘tangibilize’ the tourism offering in brochures and videos-visual displays of the real thing.
2. Perishability
- A service ‘dies’ if not consumed within a given time.
- Unused capacity cannot be stored for future use.
- For example, spare seats on one aeroplane cannot be transferred to the next flight, and query-free times at the reference desk cannot be saved up until there is a busy period.
- Hence rapid demand shifts, typically through last minute price-cutting, are necessary to reduce the lost revenue accruing from unused capacity.
- The management task emphasizes managing demand and capacity to a degree of fine tuning.
- For example: airlines offer standby fares to those willing to fill unexpected empty seats at short notice.
3. Heterogeneity (or variability)
- Services involve people, and people are all different.
- There is a strong possibility that the same enquiry would be answered slightly differently by different people (or even by the same person at different times).
- It is difficult for service marketers to standardize service provision given the close contact between staff and consumers.
- It is important to minimize the differences in performance (through training, standard-setting and quality assurance).
- Tourism marketers design processes to minimize differences in services encounters and provision between different outlets or between different shifts at a hotel for example.
- Provision of uniforms and of similar physical surroundings illustrates evidence of standardization.
4. Inseparability
- Services are produced and consumed simultaneously in interactions between the customer and service provider with no delay between the two.
- The services provision and consumption occur at the same time and both provider and consumer interact in the process of delivery. (E.g. during an online search, or a legal consultation).
- This obviously is why standardization of service is as difficult as consumer involvement is high.
- Marketer attempt to devise delivery systems which ease interaction and invest in campaigns to educate staff and consumers as to how to get the best from the interaction.
- For example: training in hotels emphasizes how staff can manage the interaction.
5. Temporary ownership
- The consumer does not take title of goods as in product marketing.
- The customer only owns a service temporarily such as in renting a holiday cottage, buying an aircraft seat, paying for time in a museum.
- They bring back memories and feelings from a holiday.
The marketer emphasizes pictorial reference and souvenirs to reinforce image of holiday experience.
MANAGEMENT STRATEGIES FOR SERVICES BUSINESS:
1) Tangibilizing the service product.
- Promotional material, employees’ appearance, and the service firms’ physical environment all help tangibilize service.
a) Trade dress
- Trade dress is the distinctive nature of a hospitality industry’s total visual image and overall appearance.
- To compete effectively, an entrepreneur, operator, or owner must design an effective trade dress while taking care not to imitate too closely that of a competitor.
b) Employee uniform and costumes
- Uniforms and costumes are common to the hospitality industry.
- These have a legitimate and useful role in differentiating one hospitality firm from another and for instilling pride in the employees.
c) Physical surroundings
- Physical surroundings should be designed to reinforce the product’s position in the customer’s mind. A firm’s communications should also reinforce their positioning.
d) ‘Greening’ of the hospitality industry
- The use of outside natural landscaping and inside use of light and plants have become a widely used and popular method of creating differentiation and tangibilizing the product.
2) Employees as part of the product
- In the hospitality industry, employees are a critical part of the product and marketing mix. The human resource and marketing department must work closely together.
- The manager must hire friendly and capable employees and formulate policies that support positive relations between employees and guests.
- Even minor details related to personnel policy can have a significant effect on the product’s quality.
- For example: ABZ fast food restaurant had a policy that all employees must be off the clock by 10:30 p.m. .To implement the policy, employees had to shut down the restaurant starting at 9:30 p.m., even though it advertised that it was open until 10:15 p.m.
- In the hospitality organization, there are two customers, the paying customers and the employees. The task of marketing to employees involves the effective training and motivation of customer-contact employees and supporting service personnel is called internal marketing.
3) Managing perceived risk
- Customer who buy hospitality products experience some anxiety because they cannot experience the product beforehand.
- A sales person must reduce client fear and gain the client’s confidence.
- The high risk that people perceive when purchasing hospitality products increases loyalty to companies that have provided them with a consistent product in the past.
- For example: Crown Plaza attracted their competitor’s loyal customers by using the following tactic: Guests were billed at the regular room rate.
- However, they were free to pay less if they felt the accommodations and service were not worth price. The promotion was highly successful , attracting a number of new guests, almost all of whom paid the full rate.
4) Managing capacity and demand
- Since services are perishable managing capacity and demand is a key function of hospitality marketing.
- First, service must adjust their operating systems to enable the business to operate at maximum capacity.
- Second, they must remember that their goal is to create satisfied customer.
- Research has shown that customer complaints increase when service firms operate above 80% of their capacity.
5) Managing consistency
- Consistency means that customers will receive he expected product without unwanted surprises.
- In the hotel industry, this means that wake-up call requested for 7:00 a.m. will occurred as planned and the coffee ordered for 3:00 p.m. meeting break will be ready and waiting.
- Consistency seems like a logical and simple task to accomplish, but in reality it is elusive. Today’s customers are knowledgeable and have come to expect and demand consistency.
FIVE UNIQUE APPROACHES IN HOSPITALITY AND TRAVEL MARKETING
1. Use of the more than 4 Ps
- There are 4Ps more in hospitality and travel industry ; People, Packaging, and Programming, Partnership.
- People in hospitality and travel is a people industry. It is a business of people (staff) providing services to people (customers), who share these services with other people (other customers).
- Packaging and Programming are two related techniques and significant for two reasons;
(1) They are very customer oriented concepts.They satisfy a variety of customer needs, including the desire or convenience found in all-inclusive packages.
(2) They help business cope with the problems of matching demand with supply or reducing unsold inventory. - Partnership is cooperative marketing efforts among complementary hospitality and travel organizations.
2. Greater significance of word-of-mouth information
- The opprtunities for customers to sample services prior to purchasing them are limited in hospitality and travel industry.
- The rule is, “you have to buy to try.”
- This places a premium on word-of-mouth advertising . (information about a service experience passed from past o potential customers).
- Providing a consistent quality of service and associated facilities is a key ingredient in getting good word-of-mouth.
- Consistency of evidence ensures that customers leave with a consistent impression of an organization’s quality standards.
3. More use of emotional appeals in promoton
- Because of the intangible nature of services, customers tend to make more use of emotional appeals when they buy.
- This means that is often more effective to emphasize these appeals in promotional campaigns.
- In order to make resort, vacation package, or attraction appeal to customers, it must be given a distinctive personality.
- Companies must be given personalities with which cutomers can associate. For example your resort becomes the “Friendly resorts” and so on.
4. Greater difficulties with new-concept testing
- Services can be copied more easily than products.
- This makes it essential for hospitality and travel organizations to be ever-alert for newand innovative customer services.
- Leading corporations aware of this and are constantly test marketing new concepts. With the increasing dynamics of Malaysian society, it is unwise to stand still in our business.
5. Increased importance of relationships with complementary organizations
- There are three unique relationships among organizations in our industry that have a significant impact on the marketing of hospitality and tavel services.
- The three unique relationship is:
i) The relationship between suppliers, carriers, the travel trade, and destination marketing organization.
ii) The destination mix concepts relation concept with five components: attraction and events, facilities, infrastructure, transportation, and hospitality resources.
iii) Visitor and residents both intermingle and share the same services and facilities.
EIGHT (8) SPECIFIC CHARACTERISTICS DIFFERENCES AFFECTING THE MARKETING OF HOSPITALITY AND TRAVEL SERVICES THAT NOT FOUND IN OTHER SERVICES.
1. Shorter exposure to services
2. More emotional buying appeals
3. Greater importance on managing evidence
4. Greater emphasis on stature and imagery
5. More variety and types of distribution channels
6. More dependence on complementary organizations
7. Easier copying of services
8. More emphasis on off-peak promotion
MARKETING CATEGORIES:
a) Traditional Marketing
- More focus on product exchange between exchange of goods.
b) Non Traditional Marketing Categories
1. Marketing Of Service
2. Marketing Of Place
3. Marketing Of People/ Person
4. Marketing Of Ideas
5. Marketing Of Organization
WHAT ARE THE MAJOR RECENT DEVELOPMENTS AFFECTING MARKETING MANAGEMENT? (Issues / Challenges In Marketing)
1. Non Profit-Oriented Marketing
2. Globalization
3. Development of Information Tecnology
4. Changes In The Global Economy
5. Demand For Social Responsibility
6. The New Marketing Lanscape
THE FUTURE OF MARKETING
• Rapid changes make yesterday’s techniques out-of-date
• All company departments are becoming involved in satisfying customers
• A focus on internal as well as external marketing
ISSUES TO DISCUSS
- Many marketing activities contain both products and services. Provide an example.
- The unique characteristics of services (intangibility, perishability , inseparability, and variability) have a major impact on how one prices, promotes, and distributes those services. First define the terms and then give an example for a movie theatre and an airline of the impact of these three "Ps".
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