1. intro to concept of service mktg

8/6/2019 1. Intro to Concept of Service Mktg

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As a Technical Collaborator offor B. Sc. Degree in

Catering Science & Hospitality Management

Marketing & FinanceMarketing & Finance

B. Sc. Yr II Unit 1

1. Introduction to Concept of

Service Marketing


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Session ObjectiveSession Objective

By the end of this session you will be able to:

Understand the meaning of market and itsimportance

Know the role of marketing in hospitality industry

List the strength of hospitality industry andexpectation of guest

Explain the different vocabulary of marketing


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MarketMarket

Amarket is a set of actual and potential buyerswho might transact with a seller.

Amarket is a set of actual and potential buyerswho might transact with a seller.


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Exchange Between Seller & BuyerExchange Between Seller & Buyer

Buyer Seller

Something of value:

Money, credit, goods

Something of value:Goods, services, ideas


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ImportanceImportance

Customer focussed

About exchange

Mutual benefit

Resources and capabilities


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Evolution Of MarketingEvolution Of Marketing

Production orientation

Product orientation

Sales Orientation


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Evolution of MarketingEvolution of Marketing

Marketing Depts.

Marketing Company

Relationships
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Hospitality MarketingHospitality Marketing

The travel and tourism industry is the fastest

growing industry globallyTravel and tourism is expected eventually to be

the number one employer in the world

Hotels and restaurants play major roles in thetourism industry


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Strength of the Hospitality IndustryStrength of the Hospitality Industry

Strong Economy

Mobile Population More Disposable Income

Larger Senior Population with Income toTravel

Extended Family Stay after the Business

Meeting


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Important TermsImportant Terms

Marketing

The process of creating, distributing, promoting,

and pricing goods, services, and ideas to facilitatesatisfying exchange relationships with customers

in a dynamic environment

Customers The purchasers of organizations products; the focal

point of all marketing activities

Target Market

A specific group of customers on whom an

organization focuses its marketing efforts


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The Marketing Mix

Four marketing activitiesproduct, distribution, promotion,

and pricingthat a firm can control to meet the needs ofcustomers within its target market

Product

Goods, services, or ideas that satisfy customer needs

Distribution

The ready, convenient, and timely availability of products

Promotion Activities that inform customers about the organization and its

products


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Pricing

Decisions and actions that establish pricing objectivesand policies and set product prices

Exchange

The provision or transfer of goods, services, or ideasin return for something of value

Marketing Concept

A philosophy that an organization should try to satisfycustomers needs through a coordinated set of

activities that also allows the organization to achieve

its goals


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Customer Benefits

Anything desired by the customer that is received inan exchange

Customer Costs

Anything a customer gives up in an exchange forbenefits


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Relationship Marketing

Establishing long-term, mutually satisfying buyer-

seller relationships allowing for cooperation andmutual dependency

Customer Relationship Management (CRM)

Using information about customers to createmarketing strategies that develop and sustain

desirable customer relationships

Value A customers subjective assessment of benefits

relative to the costs in determining the worth of a

product


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Factory ExistingProducts

SellingandPromoting

ProfitsthroughVolume

The Selling ConceptThe Selling Concept

StartingPoint Focus Means Ends

MarketCustomer

Needs

Integrated

Marketing

Profitsthrough

Satisfaction

The Marketing ConceptThe Marketing Concept

Marketing & Sales Concepts ContrastedMarketing & Sales Concepts Contrasted


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The 7CThe 7Cs of Services of Service

Focus

1. Customer2. Cost

3. Communication4. Convenience

5. Customer/client

6. Credence/credibility

7. Conduct


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Service Quality ChallengesService Quality Challenges

Defining quality for services is more difficult

than for products because of the intangible,variable nature of service characteristics

Unlike product quality, consumers frequentlylack the necessary information to evaluateservice quality.
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Types of marketing in service industryTypes of marketing in service industry

Company

CustomersEmployees

Internal

Marketing

External

Marketing

Interactive

marketing


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RecapRecap

Now ! you are able to:

Understand the meaning of market and itsimportance

Know the role of marketing in hospitality industry

List the strength of hospitality industry andexpectation of guest

Explain the different vocabulary of marketing

1. intro to concept of service mktg

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