Marketing and Upper Saddle River Essay

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Chapter 2
Service
Characteristics of Hospitality and Tourism
Marketing
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens

“Managers do not control the quality of the product when the product is a service . . . .
The quality of the service is in a precarious state – it is in the hands of the service workers who
‘produce’ and deliver it.”
-Karl Albrecht

©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Chapter Objectives
• Describe a service culture
• Identify four service characteristics that affect the marketing of a hospitality or travel product. • Explain marketing strategies that are useful in the hospitality and travel industries
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

The Service Culture
• The service culture focuses on serving and satisfying the customer
• Empowers employees to solve customer problems
• Majority of many countries’ GDP is service based
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Characteristics of Service
Marketing

©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Management Strategies for
Service Businesses
• Service companies must increase their competitive differentiation, service quality, and productivity
– Increase in competition and costs
– Decrease in productivity and quality
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Service-Profit Chain
Five Links:
• Healthy service profits and growth
•

Satisfied and loyal customers

•

Greater service values

•

Satisfied and productive service employees

•

Internal service quality

©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Three Types of Marketing in
Service Industries

©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Internal and Interactive
Marketing
•

Internal marketing means the service firm must effectively train and motivate customer contact employees

•

Interactive marketing means the perceived service quality depends heavily upon the buyer-seller interaction during the service encounter ©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Managing Differentiation
• Solution to price competition
• Differentiation through people, physical environment, and processes
• Differentiation through branding
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for Hospitality for Hospitality and Tourism, and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Managing Service Quality
• Exceed customers’ service-quality expectations • Expectations based on past experiences, word-of-mouth, and service firm advertising

©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing
Marketing
for
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