CONCEPT OF MARKETING
Marketing is an inescapable phenomenon in the present-day world. Every day, we are
exhibited to marketing of goods, services, and ideas. For example, when a salesperson
sells T.V., a doctor treats a patient or a state government asks people to get their
vehicles checked for pollution, each is marketing something to the targets. Marketing
is all about recognizing and meeting human and social needs. Marketing holds that an
organization should anticipate the needs and wants of customers and try to satisfy
them more effectively than its competitors and by doing this it will be able to achieve
its organizational objectives and goals more efficiently. In simple words, marketing is
“meeting needs profitably”. Marketing emphasizes on the needs of the customers
before putting the ideas into concrete products. With the customer's wants and needs
engulfed into the design and production of the product, sales and the goal of earning
profit is likely to be accomplished.
NEEDS- Needs are the most basic concept underlying marketing. Need arises when a
person feels deprived of some basic satisfaction. Marketers do no create these needs.
They exist automatically in every individual. Humans possess many elaborated needs
which include: 1. Basic physical needs: It includes need for food, shelter, clothing and
safety. 2. Social needs: It includes the need for belongingness and affection. 3.
Individual needs: It includes the need for knowledge and self-expression.
Maslow (1943, 1954) stated that people are motivated to achieve certain needs and
that some needs take precedence over others.
Our most basic need is for physical survival, and this will be the first thing that
motivates our behavior. Once that level is fulfilled the next level up is what motivates
us, and so on.
1. Physiological needs - these are biological requirements for human survival, e.g.
air, food, drink, shelter, clothing, warmth, sex, sleep.
If these needs are not satisfied the human body cannot function optimally. Maslow
considered physiological needs the most important as all the other needs become
secondary until these needs are met.
2. Safety needs - once an individual’s physiological needs are satisfied, the needs for
security and safety become salient. People want to experience order, predictability
and control in their lives. These needs can be fulfilled by the family and society (e.g.
police, schools, business and medical care).
For example, emotional security, financial security (e.g. employment, social welfare),
law and order, freedom from fear, social stability, property, health and wellbeing (e.g.
safety against accidents and injury).
3. Love and belongingness needs - after physiological and safety needs have been
fulfilled, the third level of human needs is social and involves feelings of
belongingness. Belongingness, refers to a human emotional need for interpersonal
relationships, affiliating, connectedness, and being part of a group.
Examples of belongingness needs include friendship, intimacy, trust, and acceptance,
receiving and giving affection, and love.
4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth,
accomplishement and respect. Maslow classified esteem needs into two categories: (i)
esteem for oneself (dignity, achievement, mastery, independence) and (ii) the desire
for reputation or respect from others (e.g., status, prestige).
Maslow indicated that the need for respect or reputation is most important for children
and adolescents and precedes real self-esteem or dignity.
5. Self-actualization needs are the highest level in Maslow's hierarchy, and refer to
the realization of a person's potential, self-fulfillment, seeking personal growth and
peak experiences. Maslow (1943) describes this level as the desire to accomplish
everything that one can, to become the most that one can be.
WANTS- Wants are felt for specific products to satisfy human needs. Human needs
are few, but their wants are unlimited. These wants are continually shaped by one’s
social, cultural and individual personality. Marketers can influence the wants by
offering various products, informing the customers about the products and using
marketing strategies to persuade them to buy the product.
DEMANDS- Wants that are supported by purchasing power i.e. ability and
willingness to buy is referred to as demand. Companies should emphasis on
calculating how many people would actually be willing and able to buy the
company’s products rather than measuring how many people want their products.
PRODUCTS- A product is defined as anything that can be offered to satisfy human
need or want. The scope of product is not limited to physical objects only. It also
includes services, experiences, persons, events, places, properties, organizations,
information, ideas etc. Products are vehicles for delivering satisfaction to customers.
In other words, a product is a solution that marketers offer to its target market.
VALUE- Value is a customer’s estimate of the product’s capacity to satisfy a set of
goals. It is the difference between what a customer spends to obtain the product and
the worth that he gets from using it. It is the value which guides the customers to
choose among different products that can satisfy a given need. Value is a combination
of quality, service and price and is known as “Customer Value Triad”. Value
increases with quality and service and decreases with price.
SATISFACTION- It depends upon a product’s performance as perceived by the
buyer in delivering value relative to their expectation
If performance matches buyer’s expectation, then he feels satisfied.
If it falls short of expectations then the customer is dissatisfied.
If it exceeds expectations then the buyer is delighted.
EXCHANGE- It is defined as an act of obtaining a desired product from someone by
offering something in return. It is the process of creating value because it leaves both
the parties better off.
There are 5 conditions which must be satisfied for exchange to take place. They are as
follows:
1. The foremost condition is that there must be at least 2 parties
2. Each party must possess something of value that can be exchanged with another
party.
3. Each party must have the ability to communicate and delivery.
4. Acceptance or rejection of the exchange offer lies at the discretion of each party.
5. Each party is in opinion that it is appropriate or desirable to deal with the other
party.
TRANSACTION- It is defined as a trade of values between two or more parties. It is
considered as marketing’s unit of measurement. It engulfs at least two things of value,
agreed upon conditions, a time of agreement and ace of agreement.
HOSPITALITY MARKETING
Hospitality marketing is centred 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, food and drink, tourism and
travel) develop marketing strategies to promote their products or services, resulting in
an increase in revenue.
Hospitality Marketing Trends Due to COVID
The following are some of the hospitality marketing trends that can be attributed to
COVID, or influenced by related changes to customer behaviour. These trends apply
to hotels, restaurants, bars, cafes and various other businesses.
1. Promote Safety in Marketing and Guest Communication
One of the most significant hospitality trends to be aware of in the wake of COVID is
the importance of highlighting safety procedures, hygiene policies and other decisions
intended to protect your customers.
This could mean increased cleaning, relocation of tables and chairs to allow for social
distancing, enforcement of mask-wearing in certain parts of your premises or by staff
members, and expanded use of contactless payments and mobile apps. The key is to
make sure these changes are clearly communicated to customers before arrival.
2. Emphasise the Leisure Opportunities
Those in the hospitality industry often attempt to appeal to a range of demographics,
including business travellers. However, due to the restrictions on mass gatherings and
increased focus on remote work and video calling, business travel has been hit
especially hard by COVID and some travel companies are placing a renewed focus on
leisure.
If your business is typically focused on business travellers, you may wish to adjust
your strategy and embrace some of the hospitality marketing trends that appeal more
to leisure visitors. After all, demand for leisure travel still exists and there are
opportunities to focus on families, couples and small groups of friends.
Make sure your destination or property is visible on distribution and communication
channels that leisure customers use and highlight associated facilities. Check what
competitors are doing and take inspiration from leisure-focused businesses.
Restaurants and hotels located near attractions can also use this within marketing
communications.
3. A Renewed Focus on Local Customers
Many hotels, restaurants, bars, cafes and other hospitality industry businesses
primarily appeal to international customers through their marketing efforts. However,
with COVID reducing international travel, one of the biggest hospitality marketing
trends involves placing a renewed focus on local custom instead.
This may mean prioritising the kind of facilities that will appeal to local residents,
such as saunas, gyms, massage services and food delivery. Some companies in the
industry are having success through offering food delivery as an experience,
combining well-presented food with add-ons, such as candles, music playlists or other
freebies.
Cafes, hotels and similar businesses may also be able to appeal on the basis of
offering wi-fi for remote work.
4. Find New Hospitality Marketing Trends Through Data
With COVID firmly in people’s minds, it is understandable that those in hospitality
management would attempt to predict how it will affect customer behaviour, but this
guesswork is no substitute for using data and clear evidence. In particular, you should
look into your website analytics and bookings data, and try to pinpoint trends.
Which demographics are still interested and making bookings, and which have fallen
away? Which market segments are growing and which are taking longer to return? Is
there any relevant geographical data to consider? Once you have insights into how
customers are really behaving, you can adjust your hospitality marketing efforts
accordingly.
5. Highlight Value and Offer Flexible Cancellations
Another important way to respond to COVID is by focusing on what makes your
hospitality business unique. This could be your location, your customer reviews, the
design of your hotel or restaurant, the theme of your bar, or the range of facilities you
have. Regardless, knowing your USPs makes it easier to sell based on value.
While many businesses compete based on pricing, the reality is that many customers
are happy to pay more for guaranteed quality, excellent service or a unique
experience. Think about some of the things you can throw into your offering, in order
to make it stand out from what rivals are selling.
It is also sensible to offer a generous cancellation policy, which allows customers to
re-book with minimal hassle. The realities of COVID mean short-notice cancellations
are inevitable and it is not worth the bad PR to penalise customers.
6. Use Virtual Reality Hospitality Technology
Virtual reality has been one of the biggest emerging hospitality technology and
marketing trends of recent times and the coronavirus pandemic has only heightened
its uses. Virtual reality tours provide the ultimate means of experiencing a location
from afar, recreating the environment in a way that allows for some degree of
exploration and immersion.
For leisure customers, this can offer the opportunity to experience a landmark or
tourist attraction, or view the inside of a hotel. For event customers, it means the
chance to explore wedding or event venues, without needing to physically travel there
for viewing. This is especially valuable at a time when travel is restricted.
Most modern virtual reality tours can be viewed using a standard web browser or
using a VR
