• Individually write the name of your
favourite hospitality venue – Bar, Café,
Hotel, Restaurant et al. List the features
why it is your favourite?
• Write the name of a hospitality venue that
you like to visit or liked but don’t any more
– what changed you or the venue?
• MARKETING – What is marketing? And how is it
different from Selling?
• Why do you market?
• How do you market?
• What does the marketing process involve?
♫ Analyzing marketing opportunities
♫ Selecting target market segments
♫ Developing market mix
♫ Managing the marketing effort
Marketing is not selling or advertising! They are only the tip of the iceberg. Originated in 1950 when the US army found itself
with excess production capacity – rather to let of staff, they started to lobby industries and people seeking work for their
personnel and marketing evolved.
• Evolution of Marketing Concept:
• Consumer Goods
• Industrial Mktg
• Non profit and social Mktg
• Services Mktg
• Customer Satisfaction, Global Marketing, Synchronous Marketing – Real Time Marketing
• Marketing Defined today -
• No longer Telling and Selling – it is satisfying customer needs and working with customer
• Whatever method is used, the marketer who does a good job of understanding customer needs, who develops products that
provide superior value and who prices, distributes and promotes them effectively should find products sells easily
• It is a social managerial process by which individuals and groups obtain what they need and want through creating and
exchanging products and value with others.
• WHY MARKETING?
• Needs – Human Needs – states of self deprivation
• Physical – Hunger, Thirst, Clothing, Warmth, Safety
• Social – belonging, affection
• Individual Needs – personal growth and self advancement
• Wants – the form the need takes and is shaped by culture, environment and individual personality
• E.g. Hungry person in Australia would have a burger with a coke whereas in South Pacific would eat mangoes, suckling pigs or
beans. Wants basically satisfy needs. As exposure to objects increase, interest and desire increases and producers try to
provide more want- satisfying products and services
• People have unlimited wants but limited resources- this creates demand when wants is backed by buying power. A Proton car
provides the basic satisfaction – transport, set of wheels and economy whilst a Merc provides luxury, status and comfort – in
other words, people demand products with benefits that add up to their satisfaction
• Companies do market research, focus groups to analyse what customer’s wants and needs are – this is used in designing
• A product is something that is offered to the market that satisfies the needs or wants of consumer.
• Tangible vs. Intangible products?
• Pay attention to benefit of product or solution it provides rather than product itself – E.g. drill – it
provides solution in making a hole but seller may think that all the customer wants is a drill – this is
• Customer Value - difference between cost of product and the values the customer gains by using
and owning the product
• Customer Satisfaction – difference between perceived performance to actual performance of
product – Motorola’s definition of customer dissatisfaction – if a customer does not like a product,
then the product has a defect in it. TQM – as the totality of features and characteristics of a product
or service that bear on its ability to satisfy customer needs. Quality begins with customer needs
and ends with customer satisfaction
• Exchange – act of obtaining a desired object from someone by offering something in return
• It is a core concept of marketing – Why – Two parties involved and participate, each has something
of value to gain from each other. Communication is a key part of exchange process.
• Transaction is a unit of measurement in marketing – E.g. buying a TV for $ xxx from Harvey
Norman – Not all transactions involve money. A political candidate may buy a persons vote. It is
actions taken to obtain a desired response from a target audience towards a product, service, idea
• Relationship Marketing – building loyalty and long term relationships – going beyond the
transaction and exchange – Marketing today has shifted from maximising profit to maximising
mutually beneficial relationships with customers. – Profits automatically follow
WHAT IS A MARKET
• Olden days – stood for a place where
sellers and buyers gathered to exchange
• Economists definition – the set of all actual
and potential buyers of a product
• Target Consumers – Understand the needs and
wants of customers – what is need Vs want –
NEED – Shaped by human needs E.g. Clothing,
Hunger, Safety etc – WANT - is something that
the human using his maturity and availability
applies to satisfy the need – E.g. Hamburger
• Wants creates demand which in turn creates
• In groups of five, identify five key points
why marketing is important to business?
• What benefits do we get from marketing?
• Think of a recent marketing campaign that
you saw or heard – what was good about
it, why do you remember it and will you
purchase the product?
CASE STUDY Q’s
1. Why might Coca – Cola, or its franchise bottlers want to
know how many ice cubes consumers place in their
glass of cola?
2. 2. . If Hoover measures how long it takes to vacuum
the house and how much dirt is picked up, how might
the company use such information?
3. . Could marketing company collect too much information
on the markets for its products and services?
4. Why might parents today be influenced greatly by their
children? Is this different from past generations?
LESSON OUTLINE –
WED 18 MARCH
1. Case Study discussion
2. Measuring & forecasting demand
3. Market Segmenting
4. Case Study
5. Market Targeting
6. Market Positioning
• Strategies – linked to business goals
• Consumer Analysis – Awareness that it
is impossible to satisfy all customers
• Design strategies for profitability to these
Market Oriented Business Definitions
Company Product Oriented Market Oriented
Poppy We make lipsticks We sell lifestyle and self
expression; success and
Sea World We run a theme park We provide fun and
K Mart We run discount stores We offer products and
services that deliver value
to middle Australians
Xerox We make copying, fax We make business more
and other office productive
Hotel ABC We offer a room with We ensure that our guests
food & beverage have a wholesome
experience – a home
away from home
Depending on strategy adopted and outcome needed marketing
strategy may include:
1. Increase Market Share – more sales to present customers without
change in product
2. Market Development – increase and develop new markets for
3. Product Development – modify or introduce new products to
current markets – in hotels ? Kraft for instance can launch new
sizes, new packaging, or change product content e.g. cholesterol
4. Diversification – Looking at promoting company by starting up or
acquiring products or businesses outside the current products or
markets e.g. – Marriott, Four Seasons
• MARKET SEGMENTATION
Dividing a market into direct groups of buyers with
different needs, characteristics or behaviors
• Group consumers on geographic factors
(countries, regions, cities), demographic
factors ( age, sex, income, education ..),
psychographic factors ( social classes, life
styles) & behavioral factors ( frequency of
purchases, benefits sought, usage rates ..).
• A Market Segment for a product is
consumers who respond in a particular way to
a given set of marketing efforts/stimulus.
WHAT IS A TYPICAL MARKET TARGET FOR MCDONALDS?
• WHAT ARE SOME OF THE PRODUCTS/SERVICES
THAT THE FOLLOWING OFFER?
• WHAT/WHO ARE THEIR TARGET MARKETS?
1. FIVE STAR HOTEL
2. COUNTRY MOTELS
3. BACKPACKER MOTELS
4. BED & BREAKFAST ACCOMMODATION
5. MEETING AND CONVENTION VENUES
MARKET SEGMENTS IN
• INDIVIDUAL TRAVELLERS
• TOUR GROUPS OR HOLIDAYS
• DOMESTIC VISITORS
• BACK PACKERS
• CONFERENCE & EVENTS
• How to measure demand & forecast –
1. Estimate current and future size of market ( look at
competing products, estimate their sales – can the
market sustain another product)
2. Growth of market – age, income groups, nationalities,
economic forecasts, lifestyle changes etc. E.g. – Kids
clothing is related to projected birthrates, projected
lifestyles – some companies have market information
specialists who use complex techniques to measure
and forecast demand- Roy Morgan PDF
Evaluating each market segments attractiveness and then
selecting 1 or 2 market segments to enter
• Critical that segments targeted can generate greater
customer value and sustain it over time
• Some new products usually target one segment and
add segments as they progress eventually seeking full
market coverage E.g. GM – ‘Car for every person,
purse and personality’.
• A new hotel might target locals and interstate visitors
initially along with corporates and conferences and
then target the inbound market eventually – WHY?
SEGMENT Vs TARGET
• Target (category with similar
characteristics and buying habits)–
Age ( 21 – 35 years), Type of people
(Japanese), Living in WA etc
• Segment (customers with similar traits,
needs & wants)–E.g. DINK’s, Japanese
Inbound( Schools, Travellers, Low Income
Japs Vs High Income Japs etc)……
• In groups go through the case study and
find out answers to the questions 1 & 2
• Time 15 Minutes