MarketingJanuary 10, 2013CHAPTER 1Why should I care?• Chipotle Example- Food with Integrity o Aiming Mexican food to a different market: healthy, clean, and differento No coupons or special deals- word of moutho Aggressive about having people move up in the company- different philosophy than other fast food jobso Advertisements: billboards, • You can’t talk about marketing without talking about product and service... and vice versa.• Everything you do is all part of the message you send to your customers about who you are. • Marketing is the identification of what your customer wants and needs and how to supply that to them. • Examples:o Vera Bradley • Marketing Mix:o Advertising and sales are components of the promotional element of the marketing mixo The 4-P Framework: ** Product: the products and its characteristics Price: set the price Place: decide how to distribute the product Promotion: how are you going to get them to know about ito Some critics feel the 4-P’s underemphasize or omit certain important activitieso The marketing mix must be just that—a mix of ingredients to create an effective product/service package for the target market o This does not mean that selling and promotion are unimportant. They are part of a larger marketing mix, a set of marketing tools that work together to produce satisfied customerso The only way selling and promoting will be effective is if we first define customer targets and needs and then prepare an easily accessible and available value package. • ** Marketing is the art and science of finding, retaining, and growing profitable customers. The Marketing Process• Here are steps one through four of a simple five-step model of the marketing process.o Companies working to understand consumers, createcustomer value & build strong customer relationships The Marketplace and Customer Needs• Customer Needs, Wants and Demandso The most basic concept underlying marketing is that of human needs. A human need is a state of felt deprivation.  These needs were not invented by marketers, but are part of the human makeupo The second basic concept to marketing is that of human wants, the form human needs take as they are shaped by culture and individual personality. Wants are how people communicate their needs Wants are described in terms of objectives that willsatisfy needs What are some of your wants and needs in the market?o Pizza example: you don’t need pizza, you want it, you need food. o People have almost unlimited wants, but limited resources, and so choose products that produce the most satisfaction for their money.  When backed by buying power, wants become demands Example: Lamborghini cars, there is a want for them but no demand b/c people don’t have the money to actually get one.o Outstanding marketing organizations go to great lengths to learn about & understand their customer’s needs, wants and demands.  ** They conduct customer research. • Facebook, surveys, track, new Disney bracelet,  Smart companies also have employees at all levels—including top management—stay close to customers • Products, Services, and Experienceso Consumer needs and wants are fulfilled through a market offering. a product that is some combination of tangible, services, information, or experiential product components o In the hospitality industry, the intangible product including customer service and experiences aremore important than the tangible products.  a market offering includes much more than physicalgoods or services • Customer Value and Satisfactiono Customer value is the difference between benefits the customer gains from owning and/or using a product, and the costs of obtaining the product. o Costs can be monetary or nonmonetary & a very big nonmonetary cost for hospitality customers is time.  Example of non-monetary cost: time, service, headache, stress, wedding planners- too much work!, • Choosing a Value Proposition o A company’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.  Such propositions differentiate one brand from another o ** Who are we and what do we do?o There’s always a set of benefits for each company• Markets:o A market is a set of actual and potential buyers of a product o These buyers share a particular need or want that can be satisfied through exchange relationships. o Who is our customer and what do they want?Book Notes:• Customer Orientationo Marketing more than any other business function deals with customers. o Purpose of a business is to create and maintain satisfied, profitable customers o The attitude of profit first then customer service will eventually sink a firmo Customer satisfaction leading to profit is the central goal of hospitality marketing• What is Hospitality Marketing?o Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.• Importance of Marketingo The entrance of corporate giants into the hospitality market and the marketing skills these companies have brought to the industry have increase the importance of marketing within the industryo Analysts predict that the hotel industry will consolidate in much the sameway as the airline industry has, with 5 or 6 major chains dominating the market. Such consolidation will create a market that is highly competitive. The firms that survive this consolidation will be the ones that understand their customers. o In response to growing competitive pressures, hotel chains are relying on the expertise of the marketing director. • Travel Industry Marketingo Successful hospitality marketing is highly dependent on the entire travel industry o Government or quasi-government agencies play an important role in travel industry marketing through legislation aimed at enhancing the industry and through promotion of regions, states, and nationso Few industries are as interdependent as the travel and hospitality industries• Understanding Marketingo Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and cause with otherso Need to understand the following: Needs, wants, and demands• Needs: human beings have many complex needs. These include needs for food, clothing, warmth, and safety; Social needs for