THC 105 1

SCHOOL OF INTERNATIONAL HOSPITALITY AND TOURISM MANAGEMENT
HOSPITALITY AND TOURISM

THC 105
MARKETING
Prepared by: A Self-regulated Learning Module

Alistair M. Cadias, MBA
A Self-regulated Learning Module 1
Table of Contents
Cover Page . . . . . . . . . 1
Table of Contents . . . . . . . . . 2
I. Introduction
Course Code and Course Title . . . . . . 3
Course Description . . . . . . . . 3
Requirements of the course . . . . . . 3
Learning Outcomes . . . . . . . . 3
Study Schedule . . . . . . . . 3
II. Body of the Module

Unit 1: Introduction to Marketing in Hospitality and Tourism Industry . 7
Unit 2: The Marketing Environment . . . . . 18
Unit 3: The Marketing Environment Understanding Consumer Markets 28
Unit 4: Differentiation, Segmentation, and Target Marketing . . 34
Unit 5: Designing Products and its Distribution Strategies . . 42
Unit 6: Product Pricing Management . . . . . 54
Unit 7: Promoting Product . . . . . . . 60
Unit 8: Using Social Media and Content Marketing . . . 67
Unit 9: The Marketing Plan . . . . . . . 75
III. Assessment . . . . . . . . . 80
IV. References . . . . . . . . . 82
V. Evaluation of the Course . . . . . . . 85

Introduction of the Module
1. Course Code and Course Title
THC 105 - Hospitality and Tourism Marketing
2. Course Description
The course will equip students with the necessary skills to develop actual marketing
campaigns for a business within the tourism and hospitality industry. Emphasis is on the
analysis of the market, its competition and its product; preparation of a financial budget;
development of short-term and long-term range strategies to achieve desired profit
through effective advertising, sales and public relations plan.
3. Requirements of the Course
Marketing Plan
4. Learning Outcomes
After completing this Course, YOU are expected to:
a. have a strong understanding on the fundamentals of the concept and appreciate the scope
and importance of marketing in the hospitality and tourism industry;
b. understand the concept of the company’s micro environment, including the company,
suppliers, marketing intermediaries, customers, and public including the company’s
macroenvironmental factors;
c. comprehend the major characteristics affecting consumer behavior, and identify some of the
specific cultural, social, personal, and psychological factors;
d. depth understanding on analysis of the market, specially its competition, product, promotion
and its distribution; and
e. have the necessary skill to develop an actual marketing campaign for a business within the
tourism and hospitality industry.
5. Study Schedule
WEEK TOPICS ACTIVITIES

1 and 2 Unit 1: Introduction to Marketing in 1. Self-assessment and Reflection Activity
Hospitality and Tourism Industry 2. Picture clips on the Marketing
Approaches and Philosophies
3. Discuss the concept of the different
Marketing Management Philosophies
and its application to Hospitality and
Tourism Products.
4. Discuss the Characteristics of Service
Marketing

5. Case Analysis – Profiling of a
hospitality/tourism establishment’s
marketing activities
Submission of Assignment
3 and 4 Unit 2: The Marketing Environment 1. Self-assessment and Reflection Activity
2. Differentiate The Company’s Micro-
Environment and Macro-Environment
3. Diagram/Flowchart of Marketing
Environmental Analysis
4. Discuss the Types of Marketing
Environment Analysis
5. Prepare a SWOT analysis of a selected
tourism or hospitality establishment
5 Unit 3: The Marketing Environment 1. Self-assessment Activity
Understanding Consumer Markets 2. Video/picture clips on model of buyer
behavior
3. Discuss the Buyer Decision Process
4. Discuss the different consumer markets
5. Case Analysis - Meeting the needs of the
international market
Submission of Assignment and Graded Quiz
st
6 1 Grading Examination
7 Unit 4: Differentiation, Segmentation, 1. Self-assessment Activity

and Target Marketing 2. Create a pie chart using the latest data
of tourist arrival from DOT-CAR showing
market segmentation
3. Discuss the Process of Market
Segmentation, Targeting, and
positioning
4. Discuss the Segmentation Variables
5. Case Analysis - Target marketing
Strategy of a hospitality/tourism
establishment

8 and 9 Unit 5: Designing Products and its 1. Self-assessment Activity
Distribution Strategies 2. Video/picture clips on the Product Life
Cycle
3. Discuss Designing Products Process
4. Discuss the Distribution Channel
Strategies
5. Case Analysis – Present and discuss an
Ansoff Matrix applied by a
hospitality/tourism establishment
10 and Unit 6: Product Pricing Management 1. Self-assessment Activity
11 2. Video/picture clips on factors affecting
pricing decisions
3. Discuss the Product Pricing Procedures
4. Discuss the Financial Budget
preparations
5. Case Analysis - Preparing a Financial
Budget of new online business
Submission of Assignment and Graded Quiz

12 Midterm Examination
13 and Unit 7: Promoting Product 1. Self-assessment Activity

14 2. Video/picture clips of original marketing
collateral of an establishment
3. Discuss the Promotion Mix
4. Discuss the Promotion Activities
5. Case Study - Develop an original
marketing campaign
15 Unit 8: Using Social Media and 1. Self-assessment Activity
Content Marketing 2. Video/picture clips on the framework of
Social Media
3. Discuss the Forms of Social Media
4. Discuss Content Marketing
5. Case Study - Create an advertising
campaign using Social Media
16 and Unit 9: The Marketing Plan 1. Self-assessment Activity
17 2. Discuss the different requirements for a
successful marketing plan
3. Differentiate short-term and long range
marketing strategies

4. Discuss the Marketing Plan
5. Case Study - Create and present a
marketing plan for an existing hospitality
and tourism establishment
Submission of FINAL REQUIREMENT

18 Final Examination

Unit 1
Marketing in Hospitality and Tourism Industry
Introduction
Marketing, the sum of activities involved in directing the flow of goods and services from producers to consumers
both in the hospitality and tourism industry. Marketing’s principal function is to promote and facilitate exchange.
Through marketing, individuals and groups obtain what they need and want by exchanging products and services
with other parties.
Learning Outcomes
At the end of Unit 1, YOU should be able to:
1. understanding the relationships between Marketing to the Hospitality and Tourism Industries;
2. define the role of marketing and its core concepts;
3. understanding the impact of marketing management philosophies/orientation in achieving
organizational objectives; and
4. learn the service characteristics that affect the marketing of a hospitality or tourism product.
Self-assessment Activity 1 Test your Logo knowledge
Most People Can't Identify 12 of These Logos — Can You?
Instructions:
1. Go to this site and answer the logo quiz - https://www.buzzfeed.com/audreyworboys/logo-trivia-quiz
2. Once done, take note of your score
3. Then proceed to the Reflection Activity

Reflection Activity 1
Were you able to identify all or at least identify 12 of those logos? If not, it’s fine. This activity provided you
insights as to how important marketing in promoting and facilitating exchange of a certain product or service.
Does this activity arouse your interest to learn and discover more on what marketing can offer in your chosen
field? Please put a check mark in the box on the particular column that honestly applies to you.
Self-assessment Activity 1 Score: ________
Reflection Yes I’m not yet sure or certain

I’m I willing to learn and discover more on what
marketing can offer me as a future professional
in my chosen field?
Will I be able to invest my 100% best in studying
in this new normal learning system?
Can I manage to learn on my own?

I’m I willing to help each other so that we will have
a fun and life-long learning?
Will I adhere to the guidelines set forth by the
government and the university in ensuring a safe
and healthy way of living/learning amidst the
pandemic?

Introduction to Marketing in the Hospitality and Tourism Industry
Importance: To convert societal needs into profitable opportunities.
General Concept: Everyday phenomenon, encompassing all activities involving an

exchange between two or more parties to satisfy human needs
& wants.
Marketing
• refers to exchange activities conducted by individuals or organizations for the purpose of satisfying
human needs / wants with the view of accomplishing the individual / organizational objectives.
• It is a continuous sequential process through which management in the hospitality and tourism industry
Plans, Researches, Implements, Controls, and Evaluates activities designed to satisfy customer
needs and wants.
Hospitality Marketing
• It is a social and managerial process by individuals and groups obtain what they need and want through
creating and exchanging products/services, and value with each other.
Tourism Marketing
• Successful hospitality marketing is highly dependent on the entire travel industry
• Government plays a critical role in travel industry marketing through legislation aimed at enhancing the
industry and through promotion of regions, states and nations.
• Few industries are interdependent with travel and hospitality industries.
➢ The components of the Tourism Umbrella (Travel, Lodging, Events, Restaurants, Recreation) covers all
the product and services we offer to our guests and the experience that goes along with it. The modern
hospitality and tourism industry is composed of numerous separate industry segments. Sometimes
competing, yet more often providing services supplementary in nature. This makes marketing managers
face a host of decisions in handling marketing tasks. These range from major decisions such as what
product features to design into a new product, how many salespeople to hire, or how much to spend on
advertising to minor decisions.
Marketing Core Concepts
Marketing Concept
• refers to marketing management philosophy as basis of achieving goal depends on the identified market
Ns / Ws and delivering desired satisfaction more effectively and efficiently than that of the competitors.
Core Concepts of Marketing
1. Product
o anything that can be offered to satisfy a need or a want.
2. Market
o consists of all target and potential customers sharing a particular need or want.
3. Need
o anything that satisfies certain requirement by a human being.

4. Want
o desire for unfulfilled needs.
5. Demand
o refers to wants for specific products/ services that are backed/ supported by the ability and
willingness (market) to buy/ avail them.
➢ The Product / Service choice are guided by the concepts of value, cost and satisfaction.
6. Value
o customer’s estimate of the product’s / service’s overall capacity to satisfy his/her needs/wants.
7. Satisfaction
o product’s / services’ perceived performance in delivering value relative to a buyer’s expectation
(delighted d - amused/ frustrated- disappointed)
8. Quality
o freedom from defects (closely linked with value and satisfaction. It is defined according to
customer satisfaction.
9. Exchange
o the act of obtaining a desired P/S from someone by offering something in return
• Elements of Exchange Process
• At least two parties
• Each party has something to offer
• Capable to communicate / deliver
• Free to accept or reject
10. Transactions
o a process where two or more parties engaged in exchange negotiation and moving toward an
agreement.
o a unit of measurement, consist of trade of values between two parties.
11. Relationships
o involves creating, maintaining and enhancing strong relationships with customers and other
stakeholders
➢ Since the term “marketing” has been defined in number of ways by different persons as they thought fit
from time to time under changing circumstances. Over the period of time a variety of concepts have
stemmed. Here, a core concept is one which has a very clear cut, definite, widely acceptable, relevant,
and verifiable to understand the very process of marketing that directs the flow of goods and services
from producers to consumers. Companies don’t follow a single marketing concept rigidly. They usually
use a mix of marketing concepts or change it depending on the market situation, competition and sales
numbers.
Marketing Management Philosophies / Approaches

Marketing Management
• refers to the analysis, planning, implementing and control of programs designed to create, build and
maintain beneficial exchanges with target market for the purpose of achieving organizational goal.
Marketing Orientation/Philosophies

1. Production: Assumption
o Customers will favor products/services that are available and inexpensive
o The risk with this concept is ignoring the desires of the market
2. Products/ Services are affordable
o Product: Holds the customers prefer existing P/S forms with management’s main job to develop
and deliver good P/S features
o Quality products are reasonably priced
3. Selling
o The firms have overcapacity, demand is low, oversupply of P/S
o Aims to sell that they make rather than make what will sell in the market
o the idea that market will not buy enough of the firm’s P/S / High supply less demand
o Focus to get every possible sales, not worry about the satisfaction after the sale or the revenue
contribution of the sale.
4. Marketing
o the main task is to determine needs, wants, preference of a target group of customers and to
deliver the desired satisfaction.
o Marketing Concept: Customer is “King” Concept
5. Societal Marketing
o Organizations started to realize social responsibility in addition to their profit and customer-
satisfaction objectives.
o Societal concept calls upon marketers to balance 3 considerations:
(i) profits
(ii) market’s wants
(iii) society’s welfare & interests
Marketing Approaches
• Use of 8Ps
• Greater Significance of word-mouth-information
• More use of emotional appeals in promotion
• Greater difficulties with new-concept testing
• Increased importance of relationships with complimentary organizations
Marketing Mix 8Ps
Packaging Programming
Product Price
Price
Promotion Place
Partnership People

1. Product (Unit 5 Discussion)
• Product Variety Quality
• Design Features Brand Name Packaging Sizes
• Services Warranties Extra Attributes
2. Place (Unit 5 Discussion)

• Locations
• Channels
• Coverage
• Inventory
• Transport
3. Price (Unit 6 Discussion)

• List Price
• Discounts
• Allowances
• Payment Period
• Credit Terms
4. Promotion (Unit 7 Discussion)

• Sales Promotion
• Advertising
• Sales Force
• PR & Publicity
• Direct Marketing
5. People – HTI people oriented industry. It is a business of people providing services to people (customers)
who share these services with other people (other customers)
• Industry marketers have to be very selective both in terms of selecting whom they hire “customer-
contact staff” – and who they target as customers.
• Employees should be skillful
• Customers – some may not be appropriate because their presence create conflict with the
enjoyment of others
6. Packaging and 7. Programming

➢ They are customer-oriented concepts
➢ Satisfy a variety of customer needs, including the desire for convenience found in all-inclusive
package.
• these two techniques are significant for two reasons:
• They help business cope with problems of matching demand with supply or reducing
unsold inventory (unsold rooms& seats) – which cannot be recapture for re-consumption
(perishability)
• They help to stimulate demand. Ig Weekend package packages (accommodation/travel) ,
early bird discount for (restaurant/bar)
8. Partnership - refers to cooperative marketing efforts among complementary

hospitality & travel organizations.

Benefits of Partnership
• Access to New Market /partners’ expertise/partners’ customer data base
• Expansion of Product /Service Mixes
• Increase Ability to /serve customer needs
• Increase marketing budgets
• Sharing of facilities and facility costs
• Enhance image/positioning
➢ Each and every company has its own idea on how the company will do production, how it will sell and do
the marketing of its product. The decision will become their marketing management philosophy, how they
will be producing, marketing and selling the product. The shared trait in every one of the marketing
management philosophies and approaches is that they all have the same objective which is the
organizational benefit, either concentrated all on the product or the consumer or could be even both.
The decision as to which philosophy or concept to embrace relies on the circumstances of the situations.
Marketing Eras
Period Characteristics (Nature)
Production • This era was the first evolutionary stage in the development of
(1920 – 1930) marketing. It began with the “industrial revolution
• Characterized by mass production of products resulting to over
supply / Undifferentiated P/S
Sales • As the competition intensified, the emphasis switched from

(1930 – 1950) production to selling. Customer’s needs and wants were still of
secondary importance.
• Beating the competitions by outselling them was first priority.
Marketing • Companies began to realized that selling alone did not

(1950 – 1970) guarantee customer satisfaction and more sales.
• Market had more choices and could select products and
services that best matched their needs – resulting to marketing
concept acting on the assumption that satisfying customers’
needs and wants is the first priority
Societal • Firms started to realize social responsibility in addition to their

(1970 – 1995) profit and customer-satisfaction objectives.
• Green marketing – aims at protecting the environment and
communicate such to customers. Sustainable development –
concept developed during this era aimed at not to harm the
remaining environment or natural resources and allow future
generations to enjoy the use of such.

Online • Due to rapid adoption of digital technologies, this era
(1995 – present) revolutionizes the use of internet as marketing tool.
• E-marketing (Digital Marketing)
Service Characteristics of Hospitality and Tourism Marketing
Characteristics of Hospitality & Travel System
Openness
Friction & Complexity &

Disharmony Variety
Interdependency Responsiveness
Competitiveness
The Service Culture

• Managers do not control the quality of the product when the product is 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.
• Service marketing is a concept based on the recognition on the uniqueness of all services
• The service culture focuses on serving and satisfying the customer. Foundation of a service culture has
to start with top management and in the hands of the service workers.
Characteristics of Service Marketing

1. Intangibility
• Form of services that cannot be tested using the five senses before the purchase. After the
experienced, go home empty-handed but not empty-headed (memories)
2. Inseparability
• Services that cannot be separated from their providers. Customers & provider (employee) must
be present during the transaction. Good F & B/ P& S = poor attitude/inattentive behavior
downgrade rate
3. Variability
• Quality of service depends on who provides them and when, where and how (Service offered in
different times showing variation in their nature)
4. Perishability
• Services cannot be stored for later sale or use. Revenue loss is gone. Opportunity to sell is loss.
Satisfying Customer Complaints

• Studies of customer dissatisfaction show that although customers are dissatisfied with
• their purchases about 25 percent of the time, only about 5 percent complain. The
• other 95 percent either feel that complaining is not worth the effort, or that they don’t
• know how or to whom to complain. Of the 5 percent who complain, only about half report a
satisfactory problem resolution. Yet the need to resolve a customer problem.
• 80 – 20 Rule
▪ 80% of complaints come from 20% of customers
▪ 80% of quality issues impact 20% of a company's products
• On average, a satisfied customer tells three people.
• About a good product experience, but the average dissatisfied customer gripes to 11 people. If
each of them tells still other people, the number of people exposed to bad word of mouth may
grow exponentially.
Exercise 1 Satisfied or Dissatisfied?
Share with us the last time you availed of any products/services under hospitality or tourism establishment, what
was it and how was the experience? Were you satisfied or dissatisfied? Write your sharing in bullet form on the
box provided.
What did the hospitality/tourism providers have to do with this experience? Write your thoughts in bullet form on
the box provided.

Types of Complaints Solutions
Wrong Order Served Ensure customers will receive consistently high-
quality service
Short Change Service quality vary depending on the interaction
between Es & Cs
Grumpy Employees A company cannot always prevent service problem
(ill –tempered/snappy)
Arrogant Workers Good service recovery can turn angry customers into
loyal ones
Slow Service Company should take steps to provide service every
time and
Lack knowledge about the Recover from service mistakes
product
Managing Service Quality
1. Customer Focus
• Firms have philosophy of satisfying customer needs that wins enduring customer loyalty. The key
is to exceed customer’s service quality expectation.
• Promise only what you can deliver – If the firm exceeds customer expected service, the customer
is apt to use the P/S again
2. Well –managed service firms
• Commitment to quality, TQM
3. Quality Standards
• The best service providers set high service quality standards. Any level of errors is unacceptable.
Firms do not settle merely for “good” service, they aim for 100% defect-free service
4. Watch Service Performance
• Closely both the firm’s and competitors.
• Use comparison:
o sales/occupancy / volume / suggestion, complaint forms = feedback to workers
Management Strategies for Service Business
1. Tangibilizing the Service Product

o Trade Dress- total visual image & appearance, menu, lay-out, décor, types of service
o Employee Uniform & Costumes-comfort / colours /design / cloth texture / attention/ industry or
business differentiation / pride of the workers
o Physical Surrounding – designed to reinforce firm’s position in the minds of the customers:
architectural designs, landscape, ambiance – clean, well-lighted / workers’ professional
appearance
o Greening of the Hospitality Industry - natural landscape / use of plants / well-lighted
2. Managing Employees
o Workers are critical part of the marketing mix
o Firm must hire friendly & capable workers
o Firm must formulate policies that support positive relationship with the guest
o SERVICE value

3. Managing Perceived Risks
o Reduce customer’s perceived anxiety/ fear and gain client’s confidence on the P/ S by:
▪ familiarization trips, complimentary tickets, F & B, accommodation & entertainment
4. Managing Capacity & Demand (MCD)
o Because services are perishable, MCD is a key function of hospitality and tourism marketing.
Adjust operating system to enable the business to operate at a maximum capacity creating
customer satisfaction.
o Strategies : Full capacity (hire more people/ training / peak- season : demarketing or higher
rates)
5. Managing Consistency
o Receive expected P/S without unwarranted surprises
Multi-Generation Marketing
• Multi-generational marketing is the practice of appealing to the unique needs of individuals within more
than one specific generational group, with a generation being a group of individuals born and living about
the same time. Multi- generational marketing is based on two founding principles:
(1) Product Needs Change With Life Stages, and
(2) Promotional Messages And Products
➢ Targeting these generational groups or cohorts can reflect their generational values which in turn can
drive their consumption behavior. Practice of appealing to the unique needs & behavior of individuals
w/in more than one specific generation group, w/ a generation being a group of individuals born or living
about the same time.
Check for facts and understanding:

Assignment 1 – Case Analysis: Profiling of Marketing Activities
Instructions: (Cite your references)
1. Identify one (1) international and one (1) local/national firm under hospitality or tourism industry
2. Brief overview of the industry chosen and describe their marketing strategy
3. Identify their unique service characteristics and what makes them successful
4. Turn in assignments using the google docs created through google classroom. Further instructions
will be provided.
Poor Fair Good Exemplary
Criteria
4 pts 6 pts 8 pts 10 pts
Content Poor Fair Good Exemplary
Answers vague and irrelevant. Answers vague Assigned Assigned questions

Answered the questions and slightly questions' answered with in-depth
appropriately irrelevant. answered and relevant answers.
relevant.
Integrative Poor Fair Good Exemplary
No integration of course Integrated some Integrated Fully integrated appropriate

Integrated concepts from the material into the answers course material appropriate course material into each
course into your answer. into some course material answer. Also integrated
Graded from 0-3 answers. into each answer. business examples into the
answers.
Organization Poor Fair Good Exemplary
Did not answer questions in Answered each Separately Answered questions in

Can the case analysis be order. Answered all questions question answered each order. Clear structure.
readily comprehended and as an entire paragraph. Difficult separately. question in order. Placed appropriate spacing
quickly assessed due to to ascertain which question between questions.
appropriate structure. was being answered.
Spelling & Grammar Poor Fair Good Exemplary
Numerous spelling and Some spelling One or two No spelling or grammar

Spelling and grammar errors grammar errors and grammar grammar or errors. Exemplary choice of
errors. spelling errors. words.

Unit 2
The Marketing Environment
Introduction
A company’s marketing environment consists of players and forces outside marketing that affect a company’s
ability to build and maintain successful relationship with its target market. The marketing environment is made
up of macroenvironment and micro-environment. Knowing the impact of analyzing environmental forces to
achieve its goals, is important for the company to monitor key forces that will affect or influence its ability to earn
profits in the market place.
Learning Outcomes:
1. understand and differentiate the concept of the company’s macro and microenvironment;
2. explain the various types of environments that affect hospitality and tourism and relate it to the strategic
development; and
3. to prepare a micro/macroenvironment analysis.
Self-assessment Activity 2 Environmental Scanning
Based on your initial understanding, identify the following marketing environments if it falls under macro or micro.
Please put a check mark in the box on the particular column that corresponds to your choice.
Marketing Environment Macro Micro
Demographic
Natural
Guests
Economic
Suppliers
Competitors
Political
Distribution channel
Social
Technological
Company itself
Cultural

Were you able to identify which marketing environment do they fall under? If so, why do you think it’s important
to understand the impacts of each environment to a hospitality and tourism establishment? Write your thoughts
in bullet form on the box provided.

The Company’s Macro-Environment
Natural /
Ecological
Technology Political
Firm
Social &
Economic
Cultural
The Company’s Micro-Environment
Company Supplier Competitors Channels Customer
Publics
The Company’s Macro-Environment The Company’s Micro-Environment
• consists of the larger societal • consists of players close to the

forces that affect the entire company that affect its ability to
micro-environment serve its customers
• Demographic, Natural, Political, • the company itself, channel firm,

Economic, Social & Cultural, and distribution channel, competitors,
Technological Environments suppliers, customer markers, and
a broad range of publics

Macro vs Micro Environment
• The differences between macro environments and micro-environments may be relevant to identify in
the following table:
Point of Macro-environment Micro-environment

difference
Meaning External environment of an Inter environments of an organization.

organization.
Nature Very complex. Less complex to perceive.
The task of the Marketer interacts with, the The marketer interacts with other
marketer elements prevailing outside the functional areas of the organization.
organization.
Extent of control Factors remain beyond the Factors may be controlled to a large
control of marketers. extent by a marketer.
Impact It creates a huge impact on Remains comparatively independent

shaping marketing decisions. are shaping marketing decisions.
Function Factors may create an Factors reveal the capabilities of an

opportunity or pose a threat to the organization to exploit the opportunities
marketing activities of an or to combat the threat through its
organization. marketing activities.
Factors Affecting High Performing Business
STAKEHOLDERS
High-
Performing
ORGANIZATION PROCESSES
Business
RESOURCES

1) Stakeholders
• the business must strive to satisfy the minimum expectation of the stakeholders (Stakeholder /
Investors / Employees / Customers / Suppliers / Creditors/ Community / Government / Media)
2) Resources
• utilization is based on vision and missions, target goals, and strategic plans by identifying core
competencies
3) Organization
• structure, policies / culture and philosophy
4) Processes
• the company must develop and work on cross-functional teams that will manage the core
business process to be competitive
➢ As different departments work on their own to attain objective of the company, they must see to it that
works are implemented without conflict among various units.
Analytical Tool In Determining Company Performance
Growth-Share Matrix
• is a planning technique that uses graphical representations of the goods and services of a
business in an attempt to help the organization determine whether hold products, sell products,
or invest in new market.
• shows the products of a company in a four-square matrix, with the y-axis indicating business
growth levels and the x-axis indicating market share. This method helps the company allocate
resources, and is used in brand marketing, product management, strategic management and
portfolio analysis as an analytical tool.
1. Question Mark (QM)

• operating in high-growth markets with low relative market share. QM is used because a firm
must think hard whether to keep pouring money into their business.

2. Star
• if the QM becomes successful, it becomes a Star wherein the firm becomes a market leader in a
high-growth market. A Star produces positive cash flow for the company. The company must
spend substantial funds to keep up with the high market growth and fight off competitors’
attacks.
3. Cash Cows (CC)
• if the Star becomes successful, the business becomes a CC characterized by its ability to
achieve less than 10% annual growth rate.
• Cash Cow produces a lot of cash for the company. Because the business is the market leader,
it enjoys economic scale and higher profit margins. The company uses the CC businesses to
pay its bills and support the S/ QM / and dogs, which tend to be cash hungry.
4. Dogs
• describes the sub-business unit (SBU) that have weak market shares in low-growth markets.
The business typically generates low profits or losses.
• Dog business often utilizes more management time than they are worth.
➢ The growth share matrix is the method for companies to make decisions on allocating capital and
resources. The matrix is a decision-making tool, so it doesn't actually take all the considerations a
company eventually needs to take into account. Growing market share, for example, could be more costly
than increased revenue income from new revenues.
Creating a Micro/Macro Environment Analysis
I. PESTLE (Political, Economic, Social/Cultural, Technological, Legal, Environmental)

• which is sometimes referred as PEST analysis, is a concept in marketing principles. Moreover,
this concept is used as a tool by companies to track the environment they’re operating in or are
planning to launch a new project/product/service etc.
• It gives a bird’s eye view of the whole environment from many different angles that one wants
to check and keep a track of while contemplating on a certain idea/plan.
• The framework has undergone certain alterations, as gurus of Marketing have added certain
things like an E for Ethics to instill the element of demographics while utilizing the framework
while researching the market.
• All the aspects of this technique are crucial for any industry a business might be in. More than
just understanding the market, this framework represents one of the backbone of strategic
management that not only defines what a company should do, but also accounts for an
organization’s goals and the strategies stringed to them.
Guide questions in conducting this analysis:

• What is the political situation of the country and how can it affect the industry?
• What are the prevalent economic factors?
• How much importance does culture has in the market and what are its determinants?
• What technological innovations are likely to pop up and affect the market structure?
• Are there any current legislations that regulate the industry or can there be any change in the
legislations for the industry?
• What are the environmental concerns for the industry?

PESTLE Analysis
1. Political factors
• These factors determine the extent to which a government may influence the economy or a certain
industry. For example: new tax policies, trade tariffs, etc.
2. Economic factors
• These factors are determinants of an economy’s performance that directly impacts a company
and have resonating long term effects. For example: inflation rate, foreign exchange rates and
economic growth patterns.
3. Social factors
• These factors scrutinize the social environment of the market, and gauge determinants like
cultural trends, demographics, population analytics etc.
4. Technological factors
• These factors pertain to innovations in technology that may affect the operations of the industry
and the market favorably or unfavorably. This refers to automation, research and development
and the amount of technological awareness that a market possesses.
5. Legal factors
• These factors have both external and internal sides. There are certain laws that affect the
business environment in a certain country while there are certain policies that companies maintain
for themselves. For example, consumer laws, safety standards, labor laws etc.
6. Environmental factors
• These factors include all those that influence or are determined by the surrounding environment.
Factors of a business environmental analysis include but are not limited to climate, weather,
geographical location, global changes in climate, environmental offsets etc.
II. SWOT (Strengths, Weaknesses, Opportunities, and Threats)
• refers to an analysis technique / tool used as the foundation of an organization’s strategic market
plan and marketing plan.
• SWOT matrix is a planning tool
• In SWOT analysis you identify all the Strengths, Weaknesses, Opportunities, and Threats in point
form. After that, you think of each point as a singular perspective.

SWOT Analysis
1. Strengths and Weaknesses (SW)

• internal environment : analysis of the capabilities (strengths) and limitations (weaknesses) of
the company
2. Opportunities and Threats (OT)

• external environment : analysis or examination of the OT created by the environment.
➢ In strategic planning, company matches its capabilities with available opportunities and take action to
minimize threats.
Exercise 2 SWOT Analysis
Consider the following situations being faced by a hospitality and tourism firm, then identify which factor each
belongs to. Please place your answer on the SWOT Column provided.
Excellent Staff P/S Struggling to meet Poor Record Keeping Competitors have similar
Knowledge deadlines products
Good Relationship With High Rental Costs Similar P/S In the market Competitor launched new
Customers area ads
Good Internal Outdated Market Research Not as reliable or are Competitors opening shop
Communication expensive
High Traffic Location Cash Flow Problem Loyal customer Downturn in economy
Successful Strategies Holding too much Stocks Demand for Similar Reputation for Innovation
Competitors P/S
Strengths (S) Weaknesses (W)
Opportunities (O) Threats (T)

III. TOWS (Threats, Opportunities, Weaknesses and Strengths)
• TOWS Analysis is a variant of the classic business tool, SWOT Analysis.
• TOWS matrix is an action tool.
• It identifies the relationships between these factors and selecting strategies on their bases. For
example, you connect internal points (Strengths and Weaknesses) with the external points
(Opportunities, and Threats).
TOWS Analysis
1. Strengths/Opportunities:
• Consider all strengths one by one listed in the SWOT Analysis with each opportunity to
determine how each internal strength can help you capitalize on each external opportunity.
2. Strength/Threats:
• Consider all strengths one by one listed in the SWOT Analysis with each threat to determine
how each internal strength can help you avoid every external threat.
3. Weaknesses/Opportunities:
• Consider all weaknesses one by one listed in the SWOT Analysis with each opportunity to
determine how each internal weakness can be eliminated by using each external opportunity.
4. Weaknesses/Threats:
• Consider all weaknesses one by one listed in the SWOT Analysis with each threat to
determine both can be avoided.
TOWS Example – Starbucks

Check for facts and understanding:
Assignment 2 – Case Analysis: SWOT analysis of a selected tourism or hospitality establishment
Instructions: (Cite your References)
1. Group Work (Teams of 2), choose your own partner and collaborate accordingly
2. identify and select one (1) tourism or hospitality establishment
3. perform a marketing environmental analysis using SWOT and PESTLE
will be provided.

Criteria
Answers vague and Answers Assigned Assigned questions

Answered the irrelevant. vague and questions' answered with in-
questions slightly answered and depth relevant
appropriately irrelevant. relevant. answers.
No integration of Integrated Integrated Fully integrated

Integrated concepts course material into some course appropriate appropriate course
from the course into the answers material into course material material into each
your answer. some into each answer. Also
Graded from 0-3 answers. answer. integrated business
examples into the
answers.
Did not answer Answered Separately Answered questions

Can the case analysis questions in order. each question answered each in order. Clear
be readily Answered all separately. question in structure.
comprehended and questions as an entire order. Placed appropriate
quickly assessed due paragraph. Difficult to spacing between
to appropriate ascertain which questions.
structure. question was being
answered.
Numerous spelling Some spelling One or two No spelling or

Spelling and grammar and grammar errors and grammar grammar or grammar errors.
errors errors. spelling errors. Exemplary choice of
words.
Unit 3

Understanding Consumer Markets
Introduction
Because the aim of marketing is to anticipate, meet and satisfy customers’ needs and wants, it is essential for
hospitality marketers to understand who these customers are and their buying behaviors.
Learning Outcomes
1. explain the role and importance of customer behavior with respect to the development of marketing
strategies;
2. describe the steps in the customer decision process; and
3. outline the various behavioral influences that affect customer purchase decisions.
Self-assessment Activity 3 What’s your flavor, tell me what’s your flavor?
The following are some existing product/services brands, you are to choose which do you prefer or much
inclined to purchase or avail. Please put a check mark on the brand or your choice.

What made you decide to choose that brand over the other? Based on your personal experiences, is it important
to know and understand the buying behaviors of each customers? Defend and share your answer in bullet form
on the box provided.
In general, market can be divided into two (2) broad categories:
1. Customer (Consumer) Market - refers to individuals / people who buy hospitality services for personal
consumption; they are the end users of the services.
2. Business Market - refers to organizations or buyers that purchase hospitality services for business
purposes.
Group Business Markets
• Conventions
• Association Meetings
• Corporate Meetings
• Incentive Travel
• SMERFs – Social, military, educational, religious, and fraternal organizations
Market Buying Behavior
• refers to the buying behavior of final customers (individuals & organizations who avail of
products / services to satisfy certain needs / wants).
• The central question for marketers is: “How do customers respond to various marketing efforts
the company might use?”
• Hospitality and Tourism organizations can make better marketing decisions if they have a
thorough understanding of the current and future behaviors of their customers.
Five Premises of Customer Behavior

1. Behavior is purposeful and goal oriented
2. The customer has free choice
3. Customer behavior is a process
4. Customer behavior can be influenced
5. There is a need for customer education

Consumer Behavior in Marketing
• Consumer behavior refers to the study which analyzes how consumers make decisions about
their wants, needs, buying or act with respect to a product, service or organization.
• By understanding the compelling reason for which a consumer buys a particular product or service
over the other, it becomes easier to identify which product is in demand and which is obsolete so
that marketing strategies can be designed accordingly.
Factor affecting Consumer Behavior
1. Cultural Factors
• Consumer behavior is influenced by cultural factors like social class, buyer’s culture, and
subculture. There are three types of cultural factors include social class, culture, and subculture.
Culture can be different by region, different groups and even countries.
a. Cultural shifts For examples, nowadays cultural shift towards health and fitness has
created a huge demand for exercise equipment, low calories and organic food and
other fitness services. This cultural shift greatly influenced the consumer behavior
throughout the world. People go to Gym and love organic and healthy food.
b. Culture is the combination of subcultures. If you are a Muslim, Hindu or Christian,
your buying behavior will be influenced by different subcultures. It will affect your
choice and preferences like your food, clothing, career goals and recreational
activities.
c. Another cultural factor is the social class For example, in the western world, both
the lower class and upper might show the same buying behavior. But in other countries
like India upper class have a tendency to buy luxury cars, gadgets, and personal care
products. But people from the lower class are unable to spend money on these
purchases.
2. Social Factors
• Social factors greatly influence the purchasing behavior of consumers. Social influencers are
diverse and include family, school or work communities, social interaction or any group with which
an individual interacts. It also includes an individual’s social class which comprises of education
level, living conditions, and income.
a. Social Reference. For example, you are influenced to buy a certain brand of mobile
phone because your closest friend already having the same brand and he is quite satisfied
with this product.
b. Family. Family plays an important role in the decision-making process. For example, if
you are a married person, you will always prefer those products that would benefit both
husband and wife.
c. Social Role and Status. Let us understand social role and status and how it affect
consumer behavior. For example, you are a Chief Marketing Officer in a leading
organization, you are someone’s son, husband and father, your role can also affect the
buying tendency of many people.
3. Personal Factors
• Personal factors impact buying decisions and include age, economic situation and occupation. In
considering personal factors, buying behavior is also influenced by habits, opinions and interests
along with other personal issues.
a. Human Life Cycle Stages is another example, here marketers target markets based
on the human life cycle. They will target teenagers with bright colors, loud music and fast
food. A young couple will prefer to buy a retirement plan and secure their future.

b. Occupation and Economic Circumstances. A person occupation affects the
consumer decision while buying goods and services. For example, if you are a blue-color
worker you will prefer to buy more work-related clothes. On the other hand, if you are an
office worker you will tend to buy smart clothes.
c. Lifestyle means how a person lives in a society. For example, you are living in a posh
area and people have expensive watches, branded clothes and luxury cars. You have to
maintain your status and image.
4. Psychological Factors
• Psychological factors that impact buying decision includes perception, motivation and beliefs and
attitudes. Every consumer will respond to marketing message based upon their attitudes and
perceptions.
a. Motivation. People have different needs at a time. Some needs are biological i.e.
hunger, thirst and some are psychological i.e. recognition, self-esteem and belonging.
When a need reaches a certain level of intensity it becomes a motive. According to Philip
Kotler, a motive is a need that has the power to direct the person to seek satisfaction.
b. Maslow’s Hierarchy of Needs also known as Maslow’s theory of motivation. This
theory is based on human motivation. According to this hierarchy, there are five levels of
human needs.
c. Freud Theory of Motivation. This theory tells us that the unconscious psychological
forces such as emotions and desires shape an individual behavior.
Consumer Behavior Models

• There have been developed several models which further explains the buying behavior of
consumers and which includes black box, personal variables as well as complex models.
1. Black-box model: This model is based upon external stimulus-response which

means that a point triggers the consumer’s mind to make a purchasing decision which
is influenced by different factors like sampling, marketing message, promotions,
product availability and price.
2. Personal variables: When a consumer is influenced by personal-variable model,
decisions are based upon internal factors. Internal factors may include belief systems,
goals, goals, traditions, personal opinions or any other similar internal motivator.
3. Complex model: Complex model includes both external and internal variables.
The Buyer Decision Process
1) Problem Recognition
o The buying process begins with the buyer recognizes a problem or a need.
2) Information Search
o At this stage, the customer seeks information about the hospitality products and services.
3) Evaluation of Alternatives
o The customer is now ready to compare information gathered about the hospitality products
and services.
4) Purchase Decision

o The customer is now ready to commit to the alternative selected in the prior stage and
make decision to buy / avail of the P/S.
5) Post-Purchase Decision
o the customer evaluates the benefits of the P/S that may lead to repeat or discontinuance
using / availing the same P/ S from the same or another firm.
Factors Influencing Organizational Buyer Behavior
1) Economic Environmental Factors

• firm’s economic status impact decision to purchase / avail P/S
2) Organizational Factors
• company VMO / 2Ps (policies / procedures) induce purchase decision
3) Interpersonal Factors
• Because a business purchase usually involves more participants in the buying process, it is
important for hospitality marketers to understand the group dynamics.
4) Individual Factors
• Participants in the business buying process may differ in terms of their buying motivations,
preferences, and perceptions.
Buying Center
• A buying center is all those individuals and groups who participate in the purchasing decision-
making process, who share common goals and the risks arising from the decisions
• It is also refers to decision-making units of a Buying Organization
Organizational Buying Behavior/Decisions

1. Problem Recognition
2. General Need Description
3. Product Specification
4. Supplier Research
5. Proposal Solution
6. Supplier Selection
7. Order-Routine Specification
8. Performance Review
Players in the Buying Process
Customer Market
• Initiator
• Influencer
• Decider
• Buyer
• User
Organizational Market
• Initiator
• Influencer
• Approvers
• Buyer
• User
• Gatekeepers

Buying Roles
1. Initiator – a person who first suggests the idea of buying / availing G/S
2. Influencer – a person whose views or advice influences the decision
3. Decider – a person who decides on any component of buying decision.
4. Buyer – the person who makes the actual purchase / avails the service
5. User – a person who consumes or uses the product / service.
Assignment 3 Case Analysis - Meeting the needs of the international market

1. search for the common profiles or buying behaviors/characteristics of international tourists;
2. basing on the profile, present options for what hospitality and tourism products offered in the Philippines
that fits their profile/buying behavior or characteristics; and
3. turn in assignments using the google docs created through google classroom. Further instructions
will be provided.

Criteria
Answers vague and Answers Assigned Assigned questions

Answered the irrelevant. vague and questions' answered with in-
questions slightly answered and depth relevant
appropriately irrelevant. relevant. answers.
No integration of Integrated Integrated Fully integrated

Integrated concepts course material into some course appropriate appropriate course
from the course into the answers material into course material material into each
your answer. some into each answer. Also
Graded from 0-3 answers. answer. integrated business
examples into the
answers.
Did not answer Answered Separately Answered questions

Can the case analysis questions in order. each question answered each in order. Clear
be readily Answered all separately. question in structure.
comprehended and questions as an entire order. Placed appropriate
quickly assessed due paragraph. Difficult to spacing between
to appropriate ascertain which questions.
structure. question was being
answered.
Numerous spelling Some spelling One or two No spelling or

Spelling and grammar and grammar errors and grammar grammar or grammar errors.
errors errors. spelling errors. Exemplary choice of
words.
Unit 4
Market Segmentation, Targeting and Positioning

Introduction
Today, Segmentation, Targeting and Positioning (STP) is a familiar strategic approach in Modern Marketing. It
is one of the most commonly applied marketing models in practice. The STP model is useful when creating
marketing communications plans since it helps marketers to prioritize propositions and then develop and deliver
personalized and relevant messages to engage with different audiences.
Learning Outcomes:
1. comprehend the major steps on designing a customer-driven marketing strategy: market

segmentation, targeting, and positioning;
2. understand and distinguish among the requirements for effective segmentation: measurability,
accessibility, substantiality and actionability; and
3. create a market segmentation using different segmentation variables.
Self-assessment Activity 4 Hit the Mark!
Matching Type. Match the correct Market (Column A) with the appropriate product/service (Column B) by drawing
a line from the number sign (#) to the asterisks (*).
COLUMN A COLUMN B
Muslim # * Gym
Senior Citizen # * Halal
Health buff # * Social Media
Students # * Package Deals
Family # * Priority Lane
Were you able to perfectly match them all? Great! Now, from your own point of view, what products or services
we have in the hospitality and tourism industry that fits all kinds or types of guests? Why?
Market

• all actual and potential buyers of a product or service
Market Segmentation
• It is a process of dividing the market into distinct groups requiring / needing separate product / service or
marketing mixes.
• The principal reason: to focus company’s effort and marketing expenditures in the most effective way
Common Variables Used in Market Segmentation
1. Behavioral Segmentation: A Customer’s Choices
• digs deeper into customer habits

• It’s also one of the most popular customer profile types to be integrated into a marketing place
• comprised of behavior patterns, like customer loyalty or engagement level.
• used for marketers to determine future customer leads
• used in determining which prospects in the market are more likely to purchase your product
2. Psychographic Segmentation: A Customer’s Lifestyle
• focus on inner or qualitative traits. Psychographic segmentation variables can include:

o habits
o hobbies, activities, or interests
o values or opinions
o personality or attitude
o lifestyle
o social status
• require deeper analysis, by defining a customer persona this way, you’ll be more equipped to
tailor your marketing strategies. And, you’ll appeal to customer tastes.

3. Demographic Segmentation: A Customer’s Profile
• Demographics are the breakdown of your customer personas in the market for cursory traits like age
or gender. These traits offer basic information on your customers, and are often considered one of
the more broad segmentation types. Examples of demographic segmentation include age, income,
family size, education, or gender.
• Other demographic segmentation variables can include:
o Occupation
o Marital status
o Political party status
o Race
o Religion
o Living status (if your subject is a homeowner or renter)
o
4. Geographic Segmentation: A Customer’s Home
• study of your customer based on their physical location, which can effect more physical interactions
in the market. Consumers grouped together in similar locations may share similar preferences, which
means this type of market segmentation is great to pair alongside more abstract types, like
behavioral.
• Geographic segmentation variables can include:
o city
o province
o country
o population
o economic status
o zip code
o regional climate

5. Firmographic Segmentation: The Customer’s Company
• used to describe the attributes of firms or businesses

• firmographics are to firms and investors as demographics are to people
• companies can use this type of segmentation to determine whether or not a smaller firm is apt for
an investment.
• Firms can also be broken down into sections of:
o non-profits
o businesses
o governmental entities
o agencies
o small-retail shops
o independent contractor
Other Variables used:
1. Purpose of the Trip

2. Product / Service Related
3. Distribution Channel
Why Segment the Market

• Market segmentation is about understanding who the specific customers are within a market.
• The more the company knows about a customer, the more successful the firm becomes.
• Segmentation allows the firm to better satisfy the needs and wants of its potential customers.
Market Segmentation Approaches
1. Single Stage Segmentation • use only one of the seven (7) categories of
segmentation
2. Two-Stage Segmentation • purpose of the trip (pleasure or business) take

into consideration another characteristic of
segmentation.
3. Multi-Stage Segmentation • primary segmentation / needs / purpose
Requirements for Effective Segmentation
1. Accessible - Segments can be effectively reached and served due to communication cost

2. Compatible - Firm must ensure that it is in conflict the market already serves, new market in compatible
with existing ones.
3. Competitive - Firm must be ready to make p/s offerings better than that of the competitors to secure
competitive advantage.
4. Defensible - Firm can able to secure good share of target market from the competitors
5. Durable - Market can exist & be served longer period of time (lasting) / recover cost or investment
6. Homogenous - must make sure that the segments are different from each other but the people in each
segment (group) must be similar
7. Measurable - Can be quantified , counted & measured with degree of accuracy
8. Substantial - Segments are large or profitable enough to serve
Exercise 3 It’s a piece of cake!
Create a Pie Chart using the latest data of tourist arrival from DOT-CAR showing different market
segmentation and its percentage distribution. Cite your references.
Market Targeting
• Market segmentation reveals the company’s market-segments opportunities. the firm has to evaluate the
various segments and decide how may and which ones to target.
• Market Targeting is a process of evaluating each segment’s attractiveness and selecting one or more of
the market segments.
• Target market - consists of a set of buyers/users who share common needs or characteristics that the
company decides to serve.
Bases Market Targeting

1. Evaluating Market Segments
• Segment Size and Growth
• Segment Structural Attractiveness
• Company Objectives and Resources

2. Selecting Market Segments
• Undifferentiated Marketing
• Differentiated Marketing
• Concentrated Marketing
3. Choosing a Market – Coverage Strategy
• Company Resources
• Degree of Product Homogeneity
• Market Homogeneity
• Competitors’ Strategies
How to choose which segment to target? (Evaluate)
Consider:
1. Segment Size and Growth
• expected profitability
• growth characteristics
• trend
2. Segment Structural Attractiveness

• presence of competitors
• presence of substitute products
• presence of suppliers
3. Company Objectives and Resources
• consider long term goal
• consider environmental, political and social environment
Selecting Market Segments
Undifferentiated Firm focuses on common needs rather

Marketing on market difference or preference.
Differentiated Firm targets several market segments

Marketing and designs separate offers for each
market
Concentrated Firm focuses single or limited market

Marketing segment
1. Undifferentiated Marketing (Mass)

• Firm ignores market segmentation differences and goes after the whole market. It focuses on the
common needs rather on market difference or preference.
• Cost effective in terms of raw materials or production cost, promotions, inventory and
transportation cost, mass production and distributions as well as mass advertising.

2. Differentiated Marketing (Segmented)
• Firm targets several market segments and designs separate offers for each market.
• This type offers more sales to the firm, to have different marketing plans, marketing research,
forecasting, sales analysis, promotion plans and advertising as per market segment.
• approach the mass market by designing separate products and marketing programs for the
different segments
3. Concentrated Marketing (Niche)

• Firm focuses on single or limited market segment. This is practiced by firms with limited resources,
thus, instead of pursuing large market, the firm concentrate on large share of one or more
markets.
• marketing directs its efforts towards a single market segment and creating and maintaining an
exclusive strategy for each segment.
Market Positioning
• It is a process of developing competitive positioning for the product/service including appropriate
marketing mix.
• Products Can Be Positioned on Specific Attributes or Against Another Product Class
Types
1. POSITIONING
• marketers try to create an image or identity in the minds of their target market for its product,
brand, or organization
2. DE-POSITIONING
• involves changing the identity of a product, relative to the identity of competing products, in the
collective minds of the target market.
3. RE-POSITIONING
• involves attempting to change the identity of competing products, relative to the identity of your
own product, in the collective minds of the target market.
Factors to Consider to Market Positioning

• Position Strategies
• Choose & Implement Positioning Strategies
• Communicate And Deliver The Chosen Strategies
1. POSITIONING STRATEGIES
• Specific Product Attributes (Price & Product features can be used to position a Product/Service
• Needs Products/Services fill or Benefit Products/Services offer
• Firm can position its P/S by the needs or benefits. Example: Fun Place, Class / Nature Tripping / For
Family Atmospheres
• Certain classes of Users (Vegetarians – Restaurants / Women’s Hotel
o against an existing competitors
2. CHOOSING AND IMPLEMENTING A POSITIONING STRATEGIES
Steps:
a. Identifying a set of possible Competitive Advantages (upon which to build a position)
b. Selecting the Right Competitive Advantage
c. Effective Communication and Delivery of chosen position (to a carefully selected target market)

3. COMMUNICATING & DELIVERING THE CHOSEN POSITION
• Once the firm has selected positioning characteristics, such should be communicated to target
market, all of the firm’s marketing mix efforts must support its positioning strategy.
➢ A very important concept of segmentation, targeting and positioning model is that all the three steps
should be in alignment with one another so as to develop a fluid plan. Segmentation allows reaching the
right target market which paves way for an appropriate positioning strategy. If any step within the STP
model changes, it is important that the whole work from segmentation should be done and the strategy
needs to be re-worked or else the market strategy will be destined to fail.
Assignment 4 Case Analysis - Target Marketing Strategy

1. Group Work (Teams of 3), choose your own member and collaborate accordingly
2. identify and select one (1) tourism or hospitality product or service that failed or no longer in
circulation
3. identify their target marketing strategy and reasons/causes for failure.
will be provided.

Criteria
Answers vague and Answers vague Assigned Assigned questions

Answered the questions irrelevant. and slightly questions' answered with in-depth
relevant.
No integration of course Integrated some Integrated Fully integrated

Integrated concepts from material into the answers course material appropriate appropriate course
the course into your into some course material material into each
answer. answers. into each answer. Also integrated
Graded from 0-3 answer. business examples into
the answers.

Can the case analysis be order. Answered all question answered each order. Clear structure.
readily comprehended questions as an entire separately. question in order. Placed appropriate
and quickly assessed due paragraph. Difficult to spacing between
to appropriate structure. ascertain which question questions.
was being answered.

Spelling and grammar grammar errors and grammar grammar or errors. Exemplary choice
errors errors. spelling errors. of words.
Unit 5

Designing Products and its Distribution Strategies
Introduction
In today’s fast paced world, designing products and distribution by a company can be an
enormous competitive advantage to the company. Most companies target their customers far and
wide. Because of the rising costs, companies are trying to expand in various markets so that they have
a higher profit. You cannot market a product and then not deliver the product to the end customer. This
is a loss of money and waste marketing efforts.
Learning Outcomes:
1. comprehend the term product, including the core, facilitating, supporting, and augmented product;
2. recognize how the product life cycle can be applied to the hospitality industry; and
3. learn the different distribution channels available to the hospitality industry and benefits each of these
intermediaries offers.
Self-assessment Activity 5 Find the path the fastest.
Instructions: Trace the path through the maze. Help get the tourist arrive at his destination.

How long it took you to find the right path? In the hospitality and tourism industry no matter how great the
product or services they offer if the delivery or distribution fails, then it’s a waste of opportunity. Recall your
unpleasant experience with the industry and point out what when wrong. Share your thoughts in bullet form on
the box provided.
Product
• Anything that is offered to a market for attention, acquisition, and use that might satisfy a want or
need.
• This includes physical objects, services, places, organizations and idea.
Product/Service Offerings
1. Accommodation Sector (Supplier)
2. Managed Service (Restaurant & Foodservice)
3. Travelling Sector (Carriers: Mode of Transportation & Travel Trade Intermediaries: Travel Agencies &
Tour Operators)
4. Event Sector (Interactive and Attendee Participations)
5. Recreation & Gaming Sector (Theme Parks / Destinations)
Product Levels
Core
Augmented Product
Product
Supporting Facilitating
Product Product
1. Core Product

• refers to what the market is buying availing
• also refers to generic functions of the product/service or basic benefits customers look for
2. Facilitating Product
• services / goods that must be present for the market to use the core product
• also refers to specific attributes attached to the core benefits and generic functions of the
product/service
• Core products require facilitation products but not supporting products
3. Supporting Product
• Extra attributes / products offered to add value to the core product and to help differentiate it
from the competitors
• Firms should choose supporting products that are not easily matched by competitors
4. Augmented Product
• Refers to extra product/service offer to the market consists of product consideration:
o Physical Environment
▪ Accessibility – location
▪ Atmosphere – facilities / ambiance
o Customer Interaction with service organization during the different phases
o Customer Participation
o Customer Interaction with other Customers
Customer Interaction with the Service Delivery System

1. Joining Stage is when the customer makes the initial inquiry contact (Quality Service + Product
Knowledge)
2. Utilization Phase takes place when the service is utilized (Consistency Product / Service Delivery)
3. Detachment Phase is when the customer is through using a product and departs (Consistency Product
/ Service Delivery)
Customer Participation
• this refers to involving the customers in service delivery that will increase capacity of the
product/service offerings, improve customer satisfaction and reduce production costs
Customer interaction with other customers
• refers to management’s effort giving attention to how the customers deal with other users of
the product.
Product Development Process

1 Idea Generation
5 2 Idea Screening
4 6 3 Concept Development & Testing
4 Marketing Strategy Development
3 7 5 Business Analysis
6 Product Development
2 8 7 Market Testing
1
8 Commercialization
1. Idea Generation

o Process of soliciting information from any source/s: Internal Sources Owners, Officers &
Staff / External Sources: Customers. Competitors, Distributors & Suppliers and other
sources.
2. Idea Screening
o the purpose of screening is to spot good ideas and drop poor ones as quickly as possible
3. Concept Development & Testing
o the process of developing product idea into specific and concrete model taking into
consideration: product idea, product concept and product image.
▪ Product Idea envisions a possible product maybe offer to the market
▪ Product Concept is a detailed version of the idea stated in meaningful customer
terms
▪ Product Image is the way that customers imagine an actual or the potential product
Note: The task is choose the best concept and determine the attractiveness of the product
image to a group of customers.
4. Marketing Strategy Development
o The process of development appropriate marketing plan using the 8Ps
5. Business Analysis
o involves preparation and review of the sales, costs, and profit projections to determine
whether such satisfy the company’s objectives
6. Product Development
o After achieving favorable feedback based on business test, the product concept will be
developed into a product prototype that may include various physical versions
Note: The prototype may include: key features, safety nets and can be produced within the
budget requirements
7. Market Testing
o If the product passes functional and customer tests, the next step is market testing in
which the product and marketing program are introduced into realistic market settings.
o This process allows the firm to discover marketability of the product, identify potential
problems and gain other information before full introduction in the market.
8. Commercialization
o Market testing allows the firm the information it needs to make a final decision about
whether to launch a new product. In launching the new product, the firm must decide
when, where, for whom and how market the product.
➢ Developing a successful product is a process.

➢ We’ve looked at the most common steps required to develop a product, but the more important product
development steps can vary depending on the nature of your product idea and its origin. Paying proper
attention to the steps of the product development process is very important for manufacturing the best
product that can fulfill the demands of your target customers.
Product Life Cycle

• To maximize profits, marketing strategies are normally reformulated or changed.
• This is due to changes in the market environment conditions as the product passes various stages:
1. Product Development and Introduction
2. Growth
3. Maturity
4. Decline

Product Development
• Begins when the firm finds and develops new product idea. During this stage sales are zero and
investment costs increase
Introduction
• It is period of slow sales growth as the product is being known / introduced into the market. No profits
due to heavy expenses for promotion.
Growth
• It is a period of rapid market acceptance and increasing profits.
Maturity
• A period of slowdown in sales due to product’s wide acceptance. Profits decline, sales are used
enhance marketing mix due to competition.
Decline
• It is the period when sales fall off quickly and profits drop.
• OPTIONS DURING DECLINE:
o Phase-out – slow removal
o Run-Out – remove from the list if production cost is high
o Drop – immediate removal due to complaints received
Product Mix
• also called product assortment - set of all products and items that a particular marketer offers for sale.
1. Product Width
• refers to how many different product lines the company carries.
2. Product Length
• refers to the total number of items in the mix.
3. Product Depth
• refers to how many variants of each product are offered.
4. Consistency
• refers to how closely related the various product lines

Four Product Mix Dimensions
• permit the company to expand its business by:
o Adding new product lines, thus widening its product mix;
o Lengthening each product line;
o Deepening the product mix by adding more variants; and
o Pursuing more product-line consistency.
Brand Decisions
Brand
• refers to a name, term, sign, symbols, design, or a combination of these elements that is intended to
identify the goods/services of the company and differentiate them from those of competitors.
Advantages of Product Banding

1. Branding
o product is easy to identify with the brand as it suggests something about the benefits and
qualities. Name should be easy to pronounce, recognize and remember with distinctive features
and capable of registration and legal protection
2. Price Value
o the brand name derives its value from a perception of p/s quality and is perceived as the best
value for the price.
3. Quality Standards
o quality and standards are easy to maintain. if the brand is successful in developing an image of
quality, customers will expect quality carrying the same brand name. consistency and
standardization are critical factors for multi-unit branding.
4. Product Class
o demand for general class that is large enough to support a regional, national, or international
chain
5. Economic Attributes
o branding provides level of economies of scale to justify expenditures for administration and
advertising.
New Product Development using Ansoff Matrix

• The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to analyze and
plan their strategies for growth.
Sample diagram

• a marketing planning tool which usually aids a business in determining its product and market growth
• determined by focusing on whether the products are new or existing and whether the market is new or
existing . Invented by H. Igor Ansoff - mathematician with an expert insight into business
Four Alternatives of Marketing Strategies
Market Penetration Market Product Diversification

Development Development
• focuses on • focuses on • focuses on • focuses on
increasing entering a introducing entering a new
sales of new market new products market with the
existing using existing to an existing introduction of
products to an products market new products
existing • catering to a • investing Two Types:
market different in R&D to • Related
• decreasing customer develop new diversification:
prices to segment products to There are
attract new cater to the potential
customers existing synergies to be
• entering into a
• increasing market realized
new domestic
promotion • acquiring a between the
market
and competitor’s existing
(expanding
distribution product and business and
regionally)
efforts merging the new
• entering into a
• acquiring a resources to product/market
foreign market
competitor in create a new • Unrelated
(expanding
the same product that diversification:
internationally)
marketplace better meets There are no
the need of potential
the existing synergies to be
market realized
• forming between the
strategic existing
partnerships business and
with other the new
firms to gain product/market.
access to
each partner’s
distribution
channels or
brand
Distribution Channel
The new competition is not between individual companies but between networks of value- delivery systems and
the winners will be the companies with the best networks – Kotler, 1998
• The industry’s distribution system is both complex and unique:

o Complex – because of the diversity of organizations involved and their relationships with each
other.

o Unique – due to the influence of the travel intermediaries and the internet have on customer’s
choice.
• A distribution channel is a set of independent organizations involved in the process of making a product
or service available to the customer or business user
o Used to move the customer towards the product
Distribution Channel Functions

1. Information
• gathering and distributing marketing research and intelligence information about the marketing
environment
2. Promotion
• developing and spreading persuasive communications about an offer
3. Contact
• finding and communicating with prospective market (customers/guests)
4. Matching
• shaping and fitting the offer to the buyer’s needs product / service features/ characteristics etc. -
packaging
5. Negotiation
• agreeing on price and other terms of the offer so that ownership or possession can be transferred
6. Physical distribution
• transporting and storing goods
7. Financing
• acquiring and using funds to cover the costs of channel work
8. Risk taking
• assuming financial risks such as the inability to sell inventory at full margin
Exercise 4 Distribution Channels in the hospitality and tourism industry
Identify all distribution channels involved in the process of making a product or service available to the guests in
the hospitality and tourism industry. Include a brief description on how these channels function. Cite your
references.

Why Use Marketing Intermediaries?
• Selling through wholesalers and retailers usually is much more efficient and cost effective than direct sales
Marketing Intermediaries
1. Travel Agents
o accommodation (10%) & transport (15%) businesses normally pay commission or reduced rates.
The added value is the equivalent sales / gains of the travel agents. Due to increase usage of
direct booking and customers self-booking travel on the internet, the number of travel agents
involved decreases.
2. Tour Wholesalers (Tour Operators)
o prepare travel packages targeting leisure market. This include transportation & accommodation
plus meals, ground transportation and entertainment as well as familiarization tours.
o Retail agents sell these packages wherein the tour wholesalers pay commission.
3. Specialists:
o Tour Broker – sells motor coast tours that are attractive to a variety of markets (sport events,
theme park tours, visits to museums & historic places, destinations. Earns income through direct
payment from tourists / travelers.
o Motivational Houses – (sales achievers) represent recipients of incentives due to high sales
volume. They include representatives from travel magazines and trade associations.
o Junket Representatives – serve the casino industry and as intermediaries for premium players.
They maintain lists of gamblers who like to visit certain gaming areas. They earn commissions on
the amount of the casino earns from the players.
▪ Junket Representatives – members of the junket club receive complimentary or low cost
hospitality services including transportation, ground transportation, hotel lodging, food and
beverage, and entertainment. The amount of complimentary services depends on the
player’s spending in the casino.
4. Hotel Representatives
o sell hotel rooms and hotel services in a given market. It is more cost efficient than to use the hotel
sales person in consideration of the distance issue and cultural differences. They receive either
commission or commission + salary
5. National, State and Local Tourist Agencies
o they serve as a good source of information about the market and gain room bookings. They
usually have tourist information centers strategically located in the areas.
o they serve as channels to bring business to a destination. Ig. BCCVB (Baguio City Convention
and Visitors Bureau)
6. Consortia & Reservation Systems
o they provide a central reservation system for hotels including small chain hotels as well as an
overseas reservation services allowing international guests to call a local number to contract the
hotel. (IHGC – International Hotel Groups of Companies)
7. Global Distribution Systems
o refer to computerized reservation systems that serve as a product catalogue for travel agents for
travel agents and other distributors of hospitality products (airlines, restaurants, golf course, car
rental firms, tour operators and major cruise lines. This was originally developed to promote airline
sales. Ex. Amadeus & Abacus
8. Internet: the use of information superhighway.
o Hospitality and tourism industries use the internet for their product / service offerings through
menu engines.
o This allow the market to search on the best products/ services for quick access by the target
market.
o It facilitates making inquiries & transacts business.

9. Concierges:
o Concierges, bell staff and front office clerks / agents can be good sources of information for local
hospitality products and travel such as restaurants, tours, bars, car rental firms, as well as tourist
attractions and destinations.
10. Franchising
o Granting the right to engage in offering, selling, or distributing goods or services under a marketing
format (proven business format) which is designed by the franchisor
o is the practice of using another firm's successful business model.
o The franchisor permits the franchisee to use its trademark, name, and advertising
Advantages of Franchising
1. Lower Failure Rate - statistics show that franchisees stand a much better chance of success
than people who start independent businesses
2. Help with Start Up and Beyond - one can get a lot of help starting a business and running it
afterwards including all the equipment, supplies and instruction or training needed to start the
business
3. Buying Power - the franchisee will benefit from the collective buying power of the parent
company as the franchisor can afford to buy in bulk and pass the savings along to franchisees.
4. Star Power - many well-known franchises have national brand-name recognition. Buying a
franchise can be like buying a business with built-in customers.
5. Profits - a franchise business can be immensely profitable
Disadvantages of Franchising
1. Their Way or Highway- the franchisee is not the one actually running
the show, and some franchisors exert a degree of control over the franchisee. Growth of the
business is potentially restricted by the entire franchise contract
2. Ongoing Costs - besides the original franchise fee, royalties, a
percentage of the franchisee’s business revenue, will need to be paid to the franchisor each
month.
3. Ongoing Support - not all franchisors offer the same degree of
assistance in starting a business and operating it successfully.
4. Cost - buying into well-known franchises is very expensive.
5. Shark-Infested Waters - buying a little-known, perhaps inexpensive
franchise can be a real gamble. Just because a business is offering franchises is no
guarantee that the franchise will be successful.
Product Differentiation
• Product differentiation (or just differentiation) is a marketing process of differentiating an offering (product
or service) from others in the market, to make it more appealing to the target audience.
• It involves defining the offering’s unique position in the market by explaining the unique benefit it provides
to the target group. This may also be referred to pinpointing a unique selling proposition of the product to
make it stand out from the crowd.
• Product differentiation is a great technique to enforce brand positioning and word of mouth
marketing strategies and get more loyal customers.
Importance
• Product differentiation translates the product attributes into benefits.
• It answers the biggest question of the customers – ‘What’s in for me?’.
• It gives the customers a reason to purchase the brand’s product and repeat the purchase.

• It increases the recall value of the product.
• It increases brand loyalty and builds brand equity.
• Attribute-based differentiation is important for the brand to defend their price from levelling down to
the bottom part of the price spectrum.
Product Differentiation Types & Factors

• Differentiation depends on customer perception. It’s not how the brand sees its product, it is how the
customer recognizes the product. There are three types of product differentiation:
1. Horizontal differentiation: Distinctions in products that cannot be evaluated in terms of quality.

o Choosing between different mineral water brands. The customer doesn’t know the real difference
but chooses one anyway.
o Two ice-cream stalls selling similar ice-creams, but the customer chooses the one closer to them
because s/he is indifferent between them.
2. Vertical differentiation: Distinctions in products that can be evaluated in terms of quality. It’s a case where it
is possible to say that one good is better than the other.
o Intel i3 and Intel i5. The customer clearly knows the difference between the two and chooses one
according to his preference.
o Choosing Duracell over other batteries because the customer believes that it lasts longer.
3. Simple (or Mixed) differentiation: Differentiation based on numerous characteristics.
o Choosing an iPhone over an Android as the customer considers iPhone to be a status symbol
and believes that it has an easier interface as compared to Android.
A product can be differentiated based on:

▪ Price: The price is the most common determinant of which target group will be attracted to a brand’s product.
It separates a premium product from economical products.
▪ Features: Features like size, shape, ingredients, origin, etc. differentiate products in the same price
spectrum. They also help the brand to back their high pricing decisions.
▪ Performance & Quality: A good quality product always stands out from standard quality products.
▪ Reliability: Some products are known to be more reliable than others. That is, there is a less probability of
them malfunctioning or failing within the given time period.
▪ Looks: Looks play a very important role in differentiating the product especially in the case of apparels and
other luxury products.
▪ Channels of Distribution: Channels of distribution also plays a vital role in differentiating a product from the
competition.
▪ Complexity: The level of complexity of usage of a product plays a very important factor in differentiating
products, especially in the technology industry.
▪ Location: Manufacturer’s location, brand’s home country, and retailers’ location play an important role in
differentiating a product from its competitors.
▪ Marketing efforts: Marketing efforts give rise to the brand image which is a decent product differentiator.
Other marketing efforts like sales promotion act as an add-on to differentiation strategy.
▪ After-sale services: Good after sale services make the customers have faith in the brand and make them
differentiate it from others.
o Services as offering add many more factors of differentiation. These are ease of ordering, delivery
(on time or before time), experience, company-customer relationship, personalization, etc.

Assignment 5 Case Analysis – Ansoff Matrix applied by a hospitality/tourism establishment

1. Group Work (Teams of 3), choose your own member and collaborate accordingly
2. identify and select one international (1) tourism or hospitality establishment that uses Ansoff Matrix to
analyze and plan their strategies for growth.
3. Present and briefly discuss their sample Ansoff Matrix
will be provided.

Criteria

relevant.

the answers.

was being answered.


Unit 6
Product Pricing Management
Introduction
Pricing can be defined as a process of determining the value that is received by an organization in exchange of
its products or services. It acts as a crucial element of generating revenue for an organization. Therefore, the
pricing decisions of an organization have a direct impact on its success.
Learning Outcomes:
1. comprehend the internal factors affecting pricing decisions;

2. understand how to apply pricing strategies;
3. outline the factors affecting pricing decisions; and
4. identify new product pricing strategies.
Self-assessment Activity 6 The Price is Right!

Price
• the amount of money charged for a product/good or service

• the only marketing mix element that produces revenue
• most flexible element of marketing mix
• price is dynamic because of environmental influences
• charging too much chases away potential customers, charging too little cuts revenue
Different Names, Terms, Charges as to Type of Service

1. Fee – Assessment, Premium, Rental, Tuition, Toll
2. Rate – Interest, Room, Tax
3. Bill
4. Commission
5. Fare
6. Bribe
7. Salaries & Wages
8. Honorarium
9. Retainer
Factors to consider when setting price
Pricing
Internal External
Decision
Internal Factors External Factors

1. Marketing Objectives 1. Nature of Market & Demand
2. Marketing Mix Strategy 2. Competition
3. Costs 3. Other Environmental Factors
4. Organizational Cost
Internal Factors
1. Marketing Objectives
▪ 1.a Survival - low prices to cover variable costs and some fixed costs to stay in business.
▪ 1.b. Current Profit Maximization - choose the price that produces the maximum current profit, cash flow
or ROI
▪ 1.c Market Share Leadership - low as possible prices to become the market share leader.
▪ 1.d Product Quality Leadership -high prices to cover higher quality and guest service levels
2. Marketing Mix Strategy

• Price must be coordinated with product design, distributions and promotion decision to form consistent
and effective marketing program
• 2.a Product / Service Features
• 2.b Promotional Costs

• 2.c Distribution Channels / Intermediaries
• 2.d Packaging Costs
3. Cost:
3.a Fixed costs – costs that do not vary with production or sales level.
3.b Variable costs – costs that vary directly with the level of production.
Note: Total Costs = Sum of the Fixed and Variable Costs for a given level of production
4. Organizational Cost
• Management must decide who within the organization will set prices
▪ Small companies – Top management

▪ Large companies – Corporate or Regional Managers
External Factors
1. Nature of Market & Demand

A. Types of Markets
▪ Pure competition
▪ Monopolistic competition
▪ Oligopolistic competition
▪ Pure monopoly
B. Cross Selling & Upselling
a. Cross-selling. The company’s other products / services are offered to
the clients/customers.
b. Up-selling. This occurs through training of sales and reservation
employees to offer continuously a higher-prices products/services that will better
meet customer’s needs, rather than settling for the lowest price.
C. Consumer perceptions of price and value
o The customer decides whether the product/service price is right. The price is buyer oriented.
The price decision requires a creative awareness of the target market and recognition of the
buyers’ differences.
D. Price-Demand Relationship
o Demand And Price are inversely related, the higher the price, the lower the demand.
E. Price Elasticity of Demand (Price Sensitivity Effect)
o Buyers are less price-sensitive when the product is unique or when it is of high quality / prestige
or exclusiveness.
o Customers are less price-sensitive when substitute are hard to find/ if demand is elastic, sellers
will generally consider lowering the prices to produce more total revenue. The following factors
affect price sensitivity

2. Competition
• Consider competitors’ costs, prices, and possible reactions
• Pricing strategy influences the nature of competition
• Benchmarking costs against the competition is recommended
3. Other Environmental Factors
A. Economic conditions
▪ Affect production costs
▪ Affect buyer perceptions of price and value *Inflation / Recession
B. Distribution Channel / Intermediaries - Reseller reactions to prices must be considered
C. Government may restrict or limit pricing options
D. Social considerations may be considered
E. Technology
Steps in Price Setting (General Approaches)

• Customer’s perception of the product / service value set the ceiling for pricing a product / service, thus,
the company must consider competitors’ prices + internal and external factors to find the best price
between these two extremes
1. Cost-Based Pricing
• The simplest method by adding a standard mark-up to the cost of the product/service.
• Mark up pricing remains popular: providers are more certain about the cost than about the demand;
managers do not have to adjust the price as demand changes
2. Break-Even Analysis and Target Profit Pricing
• Price is set to break even on the cost of making and marketing a product/service or
to make a desired profit.
3. Value-based Pricing
• Companies based their price based on the market’s perceived value
• Perceived-value pricing uses the buyer’s perceptions of value, not the seller’s
/production cost – key to pricing
5. Competition-based Pricing (Going-rate pricing)
• This is based on the establishment of price largely against those of competitors, with less
attention paid to costs or demand.
Exercise 5 Price Computation using markup and food cost

Pricing Strategies & Methods
1. New Product/Service Pricing Strategies
A. Prestige Pricing
Businesses seeking to position their companies as luxurious and elegant will enter the market
with a high price that will support this position.
B. Market-skimming Pricing
Companies set a high price when the market is price-insensitive. (event –driven)
C. Marketing-penetration Pricing
Companies set a low initial price to penetrate the market quickly and deeply, attracting many
buyers and winning large market share.
➢ Market is sensitive to price; so that low price produces more market growth , there should be economics
that reduce costs as sales volume increases and the low price must help keep out the competition.
2. Existing Product/Service Pricing Strategies

A. Product-bundle pricing (packaging product/service)
Companies using the product/service bundling pricing combine several of their product / service
and offer the bundle at a reduced price. Mostly used by cruise lines/ tour wholesales / casino
B. Volume Discounts
Special rates are used to attract market who gets or avails large quantity / big volume product /
service.
C. Discounts Based on Time of Purchase
Seasonal discount is a price reduction method used when demand is low.
D. Discriminatory Pricing
This refers to segmentation of the market and pricing differences based on price elasticity
characteristics of the segments. Particular hour /day less price / coupons given in advance –less
amount charges)
E. Last-minute Pricing
This method provides an outlet for unsold inventory. On-going fear of “product spoilage” for unsold
inventory creates a market for last –minute inventory selling, airport – discounted travel packages
as per destinations / bargain rate travel packages are available for flexible travelers
3. Psychological Pricing
• This refers to psychological aspects such as prestige, reference prices, round figures and
ignoring end figures are used in pricing.
4. Promotional Pricing
• This entails temporary pricing product/service below list price and sometimes even below cost
for special occasions.
• Induction or festivities promotional pricing gives guests a reason to come and promote a
positive image for the hotel
Price Change
1. Initiating Price Cuts

Reasons for a company to cut prices are:
a. excess capacity – unable to increase business through promotional efforts / product
improvements / or other measures
b. follow-the –leader pricing and to dominate the market.
2. Initiating Price Increase- Inflation and excess demand are common reasons to increase price.

Assignment 6 Case Analysis – Hotels’ Tariff Rates

1. Group Work (Teams of 2), choose your own partner and collaborate accordingly
2. Search for 5 hotel tariff rates online (Philippine Hotels with the same classification)
3. Compare the rates or price offerings and identify what Pricing Strategies & Methods used
will be provided.

Criteria

relevant.

the answers.

was being answered.


Unit 7
Promoting Products
Introduction
Coming up with a new product or service is a lot of work, launching and promoting it is the other half of the
equation. You could be offering the best new product or service around, but if you don’t promote it properly,
you’re likely to miss out on opportunities or even end up losing money down the line.
Learning Outcomes:
1. understand and appreciate the different promotion mix;

2. comprehend how promotion campaigns are developed and implemented; and
3. develop an original marketing campaign.
Self-assessment Activity 7 Marketing Collaterals

Promotion
• is the marketing term used to describe all marketing communications activities through the
available channels to deliver a consistent and clear message about the company’s brands,
products and services. The primary objective of promotion is to stimulate market demand of the
company Product and or Service offerings.
Main Goals of Promotion
1. Inform
• Promotion is aimed at informing the market about features, qualities, performance, price, and
availability of firm’s products.
2. Persuade
• Market promotion is an effective way to persuade customers the superiority of product over
competitors. A firm can communicate competitive advantages the product offers to distinguish it
from competitors’ products. Obviously, market promotion can assist the firm to convince buyers
that the firm’s product is the best solution to their unmet needs and wants.
• Advertising is one of the most effective tools to distinguish the product from competitors’ products.
3. Remind
• Market promotion is also a valuable means to inform customers the changes made in the existing
Product and or Service offerings
➢ Once the target market is identified, the firm must know where the market stands in relation to the
product/service (P/S) and in what state it needs to be motivated to avail the P/S.
Steps in Developing Effective Communication
1. Awareness : The firm must inform the market about the P / S and the company making the market aware
on the existence of the P / S
2. Knowledge : The firm must provide facts / data and educate the market on the P / S benefits, location
,price and other information
3. Liking : After knowing the facts, the firm’s function is to develop certain range of preference from the
market (from being different on the P / S to somewhat favorable interest on the P/S offerings)
4. Preference - The market may like the product but prefer others, thus, the challenge for the firm is to try
to build market’s desire for the P/S through promoting or communicating quality, value benefits /
offering advantages over that of the competitors
5. Conviction : A target market may prefect the P/S but not yet reach a decision to get, the firm’s role is to
turn favorable market’s attitude linked with actual purchase of the P/S offerings
6. Purchase : The marketer’s role is to lead the market to make a final decision to purchase (to get /avail
of the P/S offerings)

Promotional Management
• Question: How do the hospitality and travel organizations communicate P/S unique appeals and
benefits to customers?
• The answer is through promotion and the combination of techniques known as promotional mix
PROMOTION MIX - refers to the company’s total marketing communications program and it consists of a
specific blend of promotional elements (techniques)
Five Elements of Promotional Mix

1. Advertising : Refers to any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor. It is also referred to a placement of announcement and persuasive
messages in time or space purchased in any of the mass media by a business firm. It is used to build
P/S long-term image about the company, its P/S to stimulate sales. It reaches many buyers using
repeated impersonal message many times. It is the most expensive promotional mix.
2. Sales Promotion: An approach to provide customer with short-term inducement to make immediate
purchase. The purpose is to increase short-term sales and build long-term market share by
a. Encouraging consumers to try a new P/S,
b. Luring customers away from competitors
c. Holding and rewarding loyal customers relations
d. Obtaining new accounts
e. Using of wide assortment of tools, efforts short-lived, rewards quick response
3. Personal Selling: This involves oral conversation either by phone or face-to-face. The purpose is to
keep the market interests on the company P/S offering and to build long-term relationship. Personal
selling allows personal interaction with customers (Good listeners generally make more sales than good
talkers)
Personal selling is also considered the most expensive promotional tool per contact.
4. Public Relation (PR) : It is one of the most effective methods to communicate and relate to the market
by creating a positive image and customer preference through third-party endorsement. The result of an
effective public relations strategy is to generate additional revenue through greater awareness and
information for the products and services an organization offers. Similar to the foundational goals of
marketing, effective public relations seeks to communicate information to: (a) Launch new products and
services (b) Reposition a product or service (c) Create or increase interest in a product, service, or brand
(d) Influence specific target groups (e) Defend products or services that have suffered negative press
reports or perception (f) Enhance the firm's overall image.
5. Direct Marketing / E-Marketing: It is a promotional method that involves presenting information about
the company, product, or service to target market without the use of an advertising middleman. It is a
targeted form of marketing that presents information of potential interest to a customer that has been
determined to be a likely buyer. Common forms of direct marketing include: Brochures / Catalogs / Fliers
/ Newsletters / Post cards / Coupons / Emails / Targeted online display ads / Phone calls and Text
messages.

New Intermediaries
• With the birth of dot-com sites such as expedia.com, priceline.com, and travelocity.com among
others, the hospitality industry has had to change how they do business (E-Business / E –
Commerce / E – Marketing).
• E-Business involves the use of electronic platforms to conduct a company‘s business
• E - Commerce involves buying and selling processes supported by electronic means,
primarily the internet
• E - Marketing is company efforts to communicate about, promote, and sell products and
other services over the internet / other electronic-gadgets
➢ Customization - developing marketing mix as per market’s specific needs / wants.
Exercise 6 Slogans and Brand Taglines
Create an original slogan or brand tagline for a hospitality or tourism establishment. Provide a brief description
or explanation of the slogan or brand tagline.
E-Marketing (Electronic Marketing) are also known as Internet Marketing, Web Marketing, Digital Marketing,
or Online Marketing. E-marketing is the process of marketing a product or service using the Internet. E-marketing
also includes marketing done via e-mail and wireless media. It uses a range of technologies to help connect
businesses to their customers.
• Article marketing is one of the oldest strategies used by online marketers to acquire new visitors and
increase sales on their websites. The practice typically involves writers and publishers as primary
participants, with article marketing services working as intermediaries that help match writers with
interested publishers.
• Affiliate marketing is a popular tactic to drive sales and generate significant online revenue. It is a is a
performance-based marketing program, where an external partner is rewarded a commission for
delivering a specific result to a merchant or advertiser.
• Video marketing refers to the use of video to market or promote your brand or offering on digital channels.
In simple terms, the company uses video to market y the brand, product or service, engage on social
media channels, educate prospective and current customers, and interact with them.

• Email marketing is a form of direct marketing that uses electronic mail as a means of communicating
commercial or fundraising messages to an audience. In its broadest sense, every email sent to a potential
or current customer could be considered email marketing.
• Blog marketing is the process of reaching your home business' target market through the use of a blog.
• Content Marketing is a strategic approach to marketing a business or brand by creating and publishing
and communicating valuable and relevant content to attract and retain a defined target segment. Content
marketing is an on-going process integrated into the long term marketing strategy which includes
educational articles, e-books, videos, newsletters, entertainment, webinars, podcasts etc. The content is
not about the products or the services the company sells but the high quality and relevant information
and experience the customers get.
Benefits of E-Marketing
• Convenient
• Easy And Private
• Greater Product Access And Selection
• Offers Comparative Information
• Immediate And Interactive
• Builds Customer Relationships
• Reduces Costs
• Quick And Efficient
• Reduces Communication Costs
Budget Methods
1. Affordable (Incremental)
• budget is set based on what management considered capable to spend
2. Percentage-of-Sales (Rule-of-Thumb Approach)

• firm sets budget based on current / forecasted sales
3. Competitive-Parity Approach
• firm sets budget to match competitors
4. Objective-Task- Approach
• determine the objectives/ task to undertake and make cost estimates
Message Decision
Factors to Consider in Determining Message Decision

Promotional undertakings of the company can only succeed if its message gains attention and communicated
well. This can be achieved using the factors in designing a message.
• Message Idea refers to a main theme and benefits to be communicated in the advertisement. The tool
used is the AIDAR Model:
• A - Get Attention (creating brand awareness on the P/S).
• I - Hold Interest (generating liking on the benefits of the P/S, and sufficient interest to encourage
the buyer to start to research further)

• D - Generate Desire ( creating 'emotional connection': to shift customer’s behavior from 'liking'”
to 'wanting “ the P/S)
• A – Obtain Action ( causing the customer to make actual purchase or avail of the P/S
• R – Create Repeat purchase ( aims at increasing market lifetime value (CLV) in order that
customer will continuously patronize the P/S)
• Message Platform refers to a statement that fully describes idea and provides the guiding principles in
designing a message (message content – what to say). The tool used is the REM Appeal
• Rationale - relates to customer’s self-interest to show that the P/S will produce the desired benefit
• Emotion- attempts to provoke feelings or sentiments that motivate purchase
• Moral- - directed to the customer’s sense of what is right and proper
• Message Format refers to a broad creative approach that is used to communicate the idea to a target
market (how to say it symbolically). The tools used include: Visual Ads, Audio Ads and Message Source
• Visual Ads: using novelty & contrast, eye-catching photos and headlines, distinctive formats,
message size, color, positions, shape and movements
• Audio Ads: using words, sounds & voices
• Message Source: use attractive sources to achieve higher attention & recall ex celebrities
Samples of Message Format:

1. Testimonial – uses people to endorse a P / S (Satisfied Customer / Celebrity)
2. Slice Of Life - this format is a commercial type consisting the dramatization of a real life situation in
which the P/S is tried and becomes the solution to a problem
3. Trick Photography Or Exaggerated Situations – commonly used on broadcast and print
advertisement. It employs photograph tricks / special effects to emphasize clarity the ad message
4. ASA (Analogy / Symbolism / Association) – these are used to communicate benefits
5. Word Plays & Made-up Phrases – primarily used on print (newspaper /magazine) use intriguing or
humorous made-up phrases or word plays
6. Honest Twist – sponsor presents an honest problem then showcasing benefits of the P/S
7. Fear – uses a negative emotional appeal to arouse or shock the market into making a purchase /change
attitude
8. Comparisons - showcasing direct contrast sponsor’s and competitors’ p/s
Media Decision
• refers to selecting a medium or media for the advertisement.
1. Media Type: print (tarpaulin, posters, brochure) and broadcast (radio / television / movie houses)
2. Media Vehicles: specific firm (Print: Sunstar Baguio, Midland, The Philippine Star / TV: GMA, ABS-CBN
/ Radio: Z-Radio, Love Radio, Jazz Radio etc.)
3. Ad Timing - scheduling (date / month) : period ( over one month/one year) , time : for broadcast type:
in the morning, afternoon or evening / and for frequency (number of times )

Assignment 7 Marketing Campaign
1. Group Work (Teams of 3), choose your own members and collaborate accordingly
2. Create a marketing campaign introducing a new product under hospitality or tourism industry
will be provided.
Beginning Developing Accomplished Exemplary

Criteria
4 pts 6 pts 8 pts 10pts
WORD Beginning Developing Accomplished Exemplary

CHOICE
Information about Information does not Information about the Slogan relates directly
the product is directly relate to product relates directly to product; unique,
vague and lacks product; is not to product and catches easily remembered;
punch. The ad completely unique, the reader's attention to encourages the reader
bores the reader. and could be much persuade them to to purchase the
more persuasively purchase the product right away!
strong. The ad is product.<BR> The ad is exciting.
good but not great. The ad is interesting.
GRAPHIC Beginning Developing Accomplished Exemplary

FEATURE/
Images Little variety; not Graphic is not totally Effective use of a Highly effective use of
unique; may be effective; may look graphic feature (catches graphic feature to grab
messy as if it was done attention, but not right the reader's attention
hurriedly away) quickly and
communicate the
message effectively
Advertising Beginning Developing Accomplished Exemplary

Technique
Product name Product name is Product name is Product name
evident; may be clear; some details clear<BR> immediately grabs the
messy; many missing; appeals to and attractive; all eye; all important
details missing; the appropriate important information information effectively
may not be aimed target audience, present; appeals to the presented; target
at the appropriate emotional appeals appropriate target audience very clearly
target audience, are weak, advertising audience, emotional evident, advertising
no emotional technique is vague or appeals are present, technique(s) is/are
appeals are uninteresting advertising technique(s) strong and enticing
present is/are convincing
LAYOUT Beginning Developing Accomplished Exemplary
Messy; Layout not balanced; Layout balanced with an Layout simple and
inadequate text - images and text adequate amount of balanced with an
either too sparse unconnected; eye white space; product adequate amount of
or too wordy; drawn to holes in description complete; white space; excellent
image missing or presentation; illustrations clear. description of product
too small, illustrations minimally Colour is used well. in few words;
uninteresting or effective (for illustrations highly
unclear. Color? example, if the effective. Colour is
What Color? illustrations do not used very effectively.
connect to product).
Color is not used to
add to the ad.

Unit 8
Using Social Media and Content Marketing
Introduction
By design, social media is internet-based and gives users quick electronic communication of content. Content
includes personal information, documents, videos, and photos. Users engage with social media via computer,
tablet or smartphone via web-based software or web application, often utilizing it for messaging.
Learning Outcomes:
1. understand the framework of Social Media as a tool for marketing strategy;

2. learn how to optimize the use of Social Media in application of marketing strategies; and
3. create an advertising campaign using Social Media.
Self-assessment Activity 8 Social Media Marketers

Social Media
• is computer-based technology that facilitates the sharing of ideas, thoughts, and information through the
building of virtual networks and communities.
Forms of Social Media
1. Social Networks (SNs): Allow users to connect with people and brands online, and also known as the
“relationship platforms.” People can share information, photos, videos, and more through these sites.
These platforms focus on sharing knowledge and connecting with people.
SNs help to:

(a) Build brand awareness
(b) Generate new leads
(c) Build relationships with customers, and
(d) Provide customer service.
Sample SNs:
https://www.dreamgrow.com/top-15-most-popular-social-networking-sites/
Facebook is one of the most popular social networks available to business organizations. It
offers an excellent opportunity to connect with the market. Facebook also offers paid
advertisements that allow customers to attract new customers to help the business grow.
Twitter is platform is used similarly to Facebook, with users posting photos, videos, status
updates, links, polls, and more. The most significant distinction between these social
networks is the size of the message. Twitter also offers paid advertisements for a business.
2. Media Sharing Networks (MSNs): MSNs focus solely on sharing visuals. Anyone can create different
types of social media campaigns through these media-based sites. These media sharing networks are a
great place for business firms to share visual content and engage with the customers.
This allows P/S providers to share visual insights about the business. Company can
promote P/S and provide customers with a great visual representation of the P/S brand.
It’s a great way to reach people and gain new customers/sales.
YouTube is an excellent channel to engage people through videos. It’s a unique

opportunity for the to build brand awareness and engage your audience.

3. Social Blogging Networks (SBNs) Blogging networks allow anyone to publish content for the customers
and help them discover it. This is a great way to build engagement and get people familiar with the
business. While they increase visibility, brand awareness, and generate leads, they need more work than
other social platforms.
Tumblr is one of the most popular blogging platforms to share information, photos, and
videos.
Medium is a social blogging platform helps you reach new readers and help them get
to know your brand.
4. Discussion Networks DNs. These networks are an excellent way for any business firms to do market
research. The business can learn a lot about its customers by looking at what they say about the company
brand on these forums.
Reddit is a popular discussion network that can be used to monitor and understand market
perception about P/S.
Quora allows people to get involved with questions people ask on the web and to answer
questions related to any industry and provide audience with the knowledge they seek if
you want to build brand exposure through spreading knowledge.
5. Review Networks. Review networks allow people to find, review, and share information about brands and
their products. Good P/S reviews, through these platforms can bring positive social proof on the business and
its claims.
Yelp is a review platform where people can share their opinions and experiences with a
business firm. Businesses can’t pay to remove or alter reviews, so all positive and negative
posts remain on this site.
Glassdoor does not help improve the P/S, but can improve the employees’ experience.
This allows management to see what employees say about the business.
Communicating Online With Customers/Visitors

• The age of the internet and social media has opened doors for online communications, allowing business
owners to communicate instantly with customers across the globe.
• Communicating with your customers is one of the most important elements of a successful business. By
communicating effectively with customers, and with other business people, entrepreneurs can build
positive brand reputations, professional credibility and work opportunities.

How-To-Communicate-With-Customers-Online
1. Defining The Business Tone. Defining a consistent communication tone for the business will help to
improve brand recognizability and memorability, and it will help the firm to build a sense of rapport with
customers.
2. Email And Communications Templates. Create flexible, editable templates or guidelines for different
communications circumstances. Some of the examples may include the following: New Customer
Inquiries / Portfolio and/or Product Overview / Service Complaint / and Information Submission
3. Respond Quickly. Waiting customers become frustrated and are likely to seek goods or services
elsewhere. Work to respond to communications as quickly as possible. A firm may outsource this
operation to support or communications representatives, or use a live chat app on website that allows to
speak to more than one customer at a time.
4. Keep Track. Make sure to keep careful track of all customer communications in order to avoid
accidentally forgetting to complete jobs or deliver products. Create thorough to-do lists and keep them
up to date.
5. Be Clear, Accurate And Patient. Make sure that all communications are clear and accurate. Keep
information up to date and explain details effectively but concisely, while avoiding condescension. Be
patient with miscommunication issues and customers who need further questions answered.
FAQs (Frequently Asked Question/s)

• As the business grows, there are certain questions that pop up more commonly than others. Pay
attention to these—they outline areas of explanation where the website is probably lacking. The
firm may discover which queries are most common, it’s a good idea to streamline responses by
creating a list of frequently asked questions.
• An FAQ page on the company website will help to save time and will help customers to
more clearly understand what you offer.
Social media and co-creation of hospitality and tourism experience
• Clients / customers consistently use social media to express pleasure or frustration about their
experiences whether it is used intentionally or inadvertently.
• Nowadays, tourism and hospitality market has known rapid change since the advent of web technologies
and the emergence of online travel agencies. The number of intermediaries between tourists and tourist
producers has even reduced.
• Furthermore, tourism and hospitality businesses can no longer rely solely on their internal resources .Thus,
businesses directed their strategies towards more openness by integrating tourists in the value creation
process through the use of the social media.
• Consequently, because of the “Internet ” the social media becomes a powerful tool that defines wants
and needs of the hospitality and tourism market in which providers are able to develop and improve their
P/S offerings in order to ensure quality experiences according the market expectations.

Paid, Earned and Owned Media: The Difference
What is Paid Media? In digital marketing, paid media is any form of advertising that the firm pays for to promote
the business online. It is used to direct business traffic to existing content and also to encourage earned media.
There are various paid techniques the company can use:
• Social media advertising
• Native advertising (advertising on third-party websites
• Pay-per-click advertising, such as Google Ads.
• Display advertising.
What is Earned Media? Earned media refers to any online publicity that firms gain from promotional efforts
other than paid or owned media. For example, it happens when people talk about the company brand on social
media, or if a news site mentions the business. It could be the most valuable form of content because it’s the
most trusted.
Examples of earned media:
• Brand mentions on third-party websites
• Reviews, recommendations, and testimonials
• Shared articles and social media posts
• Social media comments
• Guest blog posts and listing in organic search engine results pages
What is Owned Media? Owned media is simply any content that the company has created or control over.
This type of content has three major goals: (a) To engage prospects / customers with valuable contents, (b)
drive sales / purchases , and (c) build customer relationship.
The primary forms of owned media include:
• Website content
• blog content
• social media content
• Email newsletters
Content Marketing
• the process of planning, creating, distributing, sharing, and publishing content to reach your target
audience. As a business, this tactic can help you improve brand awareness, boost sales, connect with
your target audience members, and engage prospects and customers.
Content Marketing helps:
• Educate your leads and prospects about the products and services you offer
• Boost conversions
• Build relationships between your customers and business
• Connect with your audience to show them how your products and services solve their challenges
• Create a sense of community around your brand
Types of Content Marketing
1. Social Media Content Marketing

• There are a number of platforms (such as Facebook, Instagram, Pinterest, LinkedIn, and Snapchat) to
work with and several ways you can create and share social media content on each of them (such as

photos, live and pre-recorded videos, and stories). All of these platforms and ways to share your content
provide you with a lot of opportunities to connect with your audience.
2. Infographic Content Marketing
• Infographics display content, information, and data in an easy-to-understand, graphic format. With a mix
of simple wording, short statements, and clear images, infographics are a great way to effectively
communicate your content.
3. Blog Content Marketing

• Blogs are a powerful type of content for inbound marketing and sharing information with customers and
target audience (whether educational, customer-related, or product-related). Blogs can be used to
convert readers into customers, boost brand awareness, and/ or build relationships with your audience.
4. Video Content Marketing

• Video marketing can boost conversions, improve ROI, and help build relationships with audience
members. They may choose to share their video marketing content on social media platforms, site pages,
or on your partners’ websites — expanding your reach across different media.
5. Paid Ad Content Marketing

• Paid content ads can help reach a broad audience and allow the company to position in all of the places
they want them be seen. They might share paid ads on social media or publish digital ads on websites
in the form of banners or sponsored content.
Content Marketing Strategy

1. Set SMART goals. (Specific Measurable Attainable Realistic Time-bound)
• These should be specific to the business — they’ll likely complement broader marketing and company
goals.
Sample SMART Goal:
• Improve brand awareness

• Boost revenue
• Increase conversions
• Improve brand loyalty
• Increase customer engagement
• Build rapport and trust among prospects and customers
• Attract strategic partners
2. Determine your KPIs. (Key Performance Indicators)

• KPIs are quantifiable data points that can be used to measure actual performance against the goal.
SMART GOAL RELATED KPI

Returning customers, promoters, product
Brand loyalty reviews, referrals

Customer engagement Likes, shares, follows, mentions, backlinks
Returning customers, promoters, followers,
Rapport and trust mentions
3. Decide on the type of content.
• start by thinking about the target audience and buyer personas, now, take a look back at the various
types of content to determine which type or types of content to be created and shared among the
audience members and customers.
4. Choose your content channels.
• Once decided on the type of content to market with, it’s time to choose the specific content channels. For
some of the content types, the channel you need to work with will be obvious. For example, if you’re
creating blog content, your channel will be the blog itself.
5. Set a budget.
• Now, set the budget. Think about the type of content you’re creating and which channels you’re marketing
that content on, how your responses impact your expected budget — whether that’s an increase or
decrease in what you may have already estimated.
6. Create and distribute the content.

• Create and distribute the content so the audience members can consume it — and possibly convert.
7. Analyze and measure results.
• This will allow the company to make any necessary changes to enhance the content marketing efforts
and reach more audience members.
Exercise 7 Content Marketing Scanning
Choose one hospitality or tourism establishment and identify all types of content marketing used.

Assignment 9 Advertising Campaign using Social Media
1. Group Work (Teams of 3), choose your own members and collaborate accordingly
2. Create an advertising campaign introducing a new product under hospitality or tourism industry using
social media
will be provided.
Beginning Developing Accomplished Exemplary

Criteria
4 pts 6 pts 8 pts 10pts
WORD Beginning Developing Accomplished Exemplary

CHOICE
Information about Information does not Information about the Slogan relates directly
the product is directly relate to product relates directly to product; unique,
vague and lacks product; is not to product and catches easily remembered;
punch. The ad completely unique, the reader's attention to encourages the reader
bores the reader. and could be much persuade them to to purchase the
more persuasively purchase the product right away!
strong. The ad is product.<BR> The ad is exciting.
good but not great. The ad is interesting.
GRAPHIC Beginning Developing Accomplished Exemplary

FEATURE/
Images Little variety; not Graphic is not totally Effective use of a Highly effective use of
unique; may be effective; may look graphic feature (catches graphic feature to grab
messy as if it was done attention, but not right the reader's attention
hurriedly away) quickly and
communicate the
message effectively
Advertising Beginning Developing Accomplished Exemplary

Technique
Product name Product name is Product name is Product name
evident; may be clear; some details clear<BR> immediately grabs the
messy; many missing; appeals to and attractive; all eye; all important
details missing; the appropriate important information information effectively
may not be aimed target audience, present; appeals to the presented; target
at the appropriate emotional appeals appropriate target audience very clearly
target audience, are weak, advertising audience, emotional evident, advertising
no emotional technique is vague or appeals are present, technique(s) is/are
appeals are uninteresting advertising technique(s) strong and enticing
present is/are convincing
LAYOUT Beginning Developing Accomplished Exemplary
Messy; Layout not balanced; Layout balanced with an Layout simple and
inadequate text - images and text adequate amount of balanced with an
either too sparse unconnected; eye white space; product adequate amount of
or too wordy; drawn to holes in description complete; white space; excellent
image missing or presentation; illustrations clear. description of product
too small, illustrations minimally Colour is used well. in few words;
uninteresting or effective (for illustrations highly
unclear. Color? example, if the effective. Colour is
What Color? illustrations do not used very effectively.
connect to product).
Color is not used to
add to the ad.

Unit 9
The Marketing Plan
Introduction
Marketing planning success doesn’t come easy, just like anything else. It will require hard work. For success,
continue reviewing the status of the company’s marketing campaigns against set objectives, comparing the
marketing plan with actual results. Then take corrective actions as per the need, to enhance the marketing
initiatives on an ongoing basis, and facilitate future planning. This will ultimately put the company in the driving
seat of helping achieve the marketing goals, thus pushing to reach sales objectives, and hence, bumping up the
company profits.
Learning Outcomes:
1. differentiate short-term and long range marketing strategies to maximize profitability of the business;
2. describe in detail the different requirements for a successful marketing plan; and
3. create and present a marketing plan.
Marketing Plan
• A marketing plan is a thorough roadmap which outlines the overall marketing efforts of an organization
and highlights the steps that will be taken so you retain its marketing objectives. This plan can have a
lifespan of between a few months to three years.
• The plan ensures that marketing activities are in agreement with the corporate strategic plan. It forces
marketing managers to review and think through objectively all steps in the marketing process, creates
a process to monitor actual against expected results, and assist in the budgeting process to match
resources with marketing objectives.
Short-term strategies
• this type of marketing strategy is a plan that can last for up to a year
• it is often used to promote new products, services or sales.
• the focus of the strategy is to bring in new customers.
Long-term strategies
• this strategy’s main objective is to establish brand awareness and continue to produce results for years.
• long-term strategies are there to ensure that these existing relationships are being maintained and
nurtured.
• working with a longer time frame also allows marketers to continually improve things as they will be able
to see what does and doesn’t work and make changes accordingly.

Parts of a Marketing Plan
Part I. Executive Summary
• This presents an overview of proposed plan for quick review by management. Ideally, it should not be
longer than one page.
Part II. Purpose and Mission
• Purpose
• Discuss a brief explanation why the plan was created. (to introduce a new product or to enter
new markets)
• Mission
• A long-run vision of the company that answer questions like: Why is the company in business?
What markets does it serve? ETC.
Part III. Current Product Analysis
A. Product Offering
- show pictures of their main product and description
- If hotel – tariff sheets
- If restaurant – menu with price
- If travel agency – price of their tour package
- If airline – price of their air fare
B. Target Market
• Describe strategy used to reach targeted customers
• Describe the characteristics of the targeted customers
• Describe the purchasing process
• Provide market size estimate
C. Distribution
- Illustrate the supply chain
• Describe the channels/supply chain used to sell/deliver the product
• Describe the needs and benefits wanted by distributors
• Describe the purchase process
• Describe the distributor’s demographics
D. Promotion
- Show examples of the promotional campaign of the business.

Part IV. Environmental Analysis: The Marketing Environment
• Designed to take a macro view of how things are at the time the plan is presented.
A. Competitive Forces – create a list of your competitors, identify their strength and weaknesses then
create a counter strategy
Competitor Analysis
Name and Logo Strengths Weaknesses Business Counter

Plan
(Minimum of 4 (what do you need to

Competitors) do now that you
know the strengths
and weaknesses of
your competitor)
➢ After presenting the table of competitors describe the competitors by giving a brief overview
of the establishment
Example:
1. Small World Travel and Tours
(insert brief overview here)
2. Baguio Country Club
(insert brief overview here)
B. Economic Forces
C. Political Forces
D. Legal and Regulatory Forces
E. Technological Forces
F. Social Cultural Forces
G. Market Demographics

Part VII. SWOT Analysis
Strengths Weaknesses
➢ Bulleted form ➢ Bulleted form
Opportunities Threats
➢ Bulleted form ➢ Bulleted form
➢ After the table describe the SWOT
Part VIII. Tactical Marketing Strategy
• This is the focus of the Marketing Plan. It contains a discussion of the detailed tactics to be
implemented to achieve the objectives and goals.
• It may include:
• ANSOFF PRODUCT-MARKET EXPANSION GRID
• Market Penetration
• Product Development
• Market Development
• Diversification
Objective/s
Plan/s
Human
Resources
Needed
Non-human
Time Frame

Final Requirement Guide
• The final requirement of this course is to come up with a Marketing Plan per group.
• The marketing plan should only be under the hospitality or tourism industry sector.
• You will choose your group mates through all possible mode of communication.
• Maximum of 5 members are allowed for this collaborative work.
• Online presentation will be scheduled for each group
• You are only given a maximum of 15 minutes to present your work.
• The final requirement will be a total of 100 points (70 for the marketing plan and 30 for the oral
presentation)
• A final requirement rubric will be provided ahead of time for your perusal.
• Use the complete parts of marketing plan presented in Unit 9 of this course.
• Follow the proper Format:
o Short Bond Paper (8.5” x 11”)
o Margin (Top, Bottom, Right = 1”, Left = 1.5”)
o Arial 12
o Spacing - Single
o Cover Page
o Table of Contents
• The Marketing Plan and other collaterals prepared will be submitted on a soft copy format and
uploaded in our google classroom/drive.

Assessment
Formative Assessment
Presentation of the assessment activities that aim to enhance and deepen the student’s undertaking of
this course. These will be monitored and checked and are still required to be accomplished to complete
the course.
Summative Assessment
Presentation of the details of the graded quizzes, exercises, assignments or performance tasks that will
be graded.
Presentation of the details of the periodical examination and how it will be conducted.
To pass the course, YOU must:

1. Read all course readings and answer the self-assessment activities and reflection questions/activities.
2. Participate in the synchronous and asynchronous online discussion, forum and quizzes.
3. Submit all the exercises, assignments and graded quizzes for first, midterm and final grading.
4. Submit the final requirement (Marketing Plan)
5. Do the First, Midterm and Final Examination
Formative Assessment Activities

• You are required to answer the self-assessment quizzes/activities and reflection quizzes/activities but
your scores will not be counted towards your final grade. The self-assessment quizzes/activities are
designed to examine and gauge yourself to find out how much progress you have made and what to
improve upon while the reflection quizzes/activities are designed to help you critically analyze the course
reading for better understanding and preparation. The results will also be a guide to the facilitator to
identify students who will need more reinforcement and assistance. These activities should be
accomplished first before proceeding the lesson.
Evaluative Assessment Activities

1. Exercise, Quizzes and Examination
Exercises between each unit should be accomplished, the two graded quizzes and first, midterm and
final examination will be announced and posted ahead of time. Quizzes can be in the form of essay
questions or multiple type of questions while the examinations are multiple choice type of tests.
2. Assignments and Final Requirement

There will be a total of eight assignments and one final requirement. The evaluation tools for these are
all provided in the course site.
3. Online Discussions/Presentations
There will be online discussions and presentations forums for the course will be announced and posted
ahead of time. The evaluation tools for these are all provided in the course site.

Technological Tools
• You must have a computer with MS Office Application and installed Adobe Flash Software. These are
very important in doing the task given to you.
• If you have internet connections, please check the google classroom to participate in discussions and
Messenger Group Chat for updates. More ever you can text or call your group mates for group tasks.
Grading System
• Refer to your UB Student Handbook
• Article VII Section 7 Computation of Undergraduate Grades, 2014 ed. UB Student Handbook
Course Study Guide
• This module is prepared for you to work on independently in some parts. Likewise, in most of the output,
you are expected to work collaboratively with your group mates. This is intended for you to learn.
Therefore, it is your choice if you will take this for granted. Remember, this course is a pre-requisite for
some major and specialized courses and staple requirement in any academic endeavor.
• The following are your desired characteristics:

1. Moral Fortitude
2. Social Awareness
3. Cultural Sensitivity
4. Intellectual humility
5. Vigilance
6. Preparedness
7. Patience
8. Honesty
9. Responsibility
10. Accountability
• Please always be guided by the UB Flexible Learning Approach Primer, which is available at the
official UB website.
Thank you very much, stay safe and healthy always!

References
3G eLearning. (2014). Hospitality and tourism marketing. 3G eLearning FZ LLC.
Badilla, M. G. (2015). Tourism marketing. Rex Book Store.
Bagdan, P. J. (2012). Guest service in the hospitality industry. Wiley Global Education.
Bowie, D., & Buttle, F. (2011). Hospitality marketing : Principles and practice. Elsevier / Butterworth-Heinemann.
Cariño, C. E., & Beltran, M. P. (2013). The Hospitality industry : An introduction. Mindshapers
C C., & STANTON, J. L. (2017). Principles of marketing. ESIC Editorial.
Chibili, M., Bruyn, S. D., Benhadda, L., Lashley, C., Penninga, S., & Rowson, B. (2019). Modern hotel
operations management. Routledge.
Hudson, S., & Hudson, L. (2013). Customer service for hospitality and tourism. Goodfellow Limited.
Kolb, B. M. (2018). Marketing research for the tourism, hospitality and events industries.
Kolb, B. (2017). Tourism marketing for cities and towns: Using social media and branding to attract tourists.
Routledge.
Kolb, B. (2017). Tourism marketing for cities and towns: Using social media and branding to attract tourists.
Routledge.
Kotler, P. T., Bowen, J. R., Makens, J., & Baloglu, S. (2016). Marketing for hospitality and tourism. Pearson.
Mancini, M. (2010). Selling destinations : Geography for the travel professional. Delmar Cengage Learning.
Mazurek, G., & Tkaczyk, J. (2016). The impact of the digital world on management and marketing. Poltext.
Morgan, N., Pritchard, A., & Pride, R. (2012). Destination brands. Routledge.
Morgan, N., & Pritchard, A. (2013). Advertising in tourism and leisure. Routledge.
Morrison, A. M. (2009). Hospitality and travel marketing. Delmar.
Morrison, A. M. (2013). Marketing and managing tourism destinations. Routledge.
Ray, N., Das, D. K., & Kumar, R. (2017). Tourism marketing: A strategic approach. CRC Press.
Sood, T. (2017). Strategic marketing management and tactics in the service industry. IGI Global.

Online References
5 key elements of a successful marketing plan. (2020, May 18). The Online Learning
Platform. https://www.potential.com/articles/5-key-elements-marketing-plan/
(n.d.). Ansoff Matrix. https://www.ansoffmatrix.com/
Baker, K. (n.d.). The ultimate guide to content marketing in 2020. HubSpot Blog | Marketing, Sales, Agency,
and Customer Success Content. https://blog.hubspot.com/marketing/content-marketing
Corporate Finance Institute. (2020, July 6). Ansoff matrix - Overview, strategies and practical
examples. https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
The difference between short and long-term strategies. (2019, December 6). Media
Update. https://www.mediaupdate.co.za/marketing/147671/the-difference-between-short-and-long-
term-strategies
Guide to understanding growth share matrix | Edraw Max. (n.d.).
Edrawsoft. https://www.edrawmax.com/article/guide-to-understand-the-growth-share-matrix.html
How to write a marketing plan (W/Sample templates). (2020, April 14). Vital
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template/
Lavinsky, D. (2016, August 16). Marketing plan template: Exactly what to include.
Forbes. https://www.forbes.com/sites/davelavinsky/2013/09/30/marketing-plan-template-exactly-what-
to-include/#6d38f4963503
Marketing environment: Macro and micro marketing environment. (2020, March 12).
iEduNote.com. https://www.iedunote.com/marketing-environment
Pahwa, A. (2018, June 23). Product differentiation – Definition, types, importance & examples.
Feedough. https://www.feedough.com/product-differentiation-definition-types-importance-examples/

Sample marketing plan - Download a free copy. (2020, August 10). Ymh Marketing
Plan. https://www.ymhmarketingplan.com/sample-marketing-plan.htm
Smith, E. (n.d.). 5 types of market segmentation & how to use them. Remesh Blog. https://blog.remesh.ai/5-
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TOWS analysis: A comprehensive guide. (n.d.). Visual Paradigm Online - Suite of Powerful
Tools. https://online.visual-paradigm.com/knowledge/strategic-analysis/tows-analysis-guide/
What is consumer behavior in marketing? - Factors, model & definition. (n.d.).
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What is consumer behavior? - Definition, factors, models & examples. (2020, May 10). Marketing
Tutor. https://www.marketingtutor.net/what-is-consumer-behavior/

V. Evaluation of the course
This is the part of the module which is to be answered at the end of the course. It will not evaluate the
teacher.
1. What lesson or activity did I enjoy most? Why?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________
2. What is the most important lesson which I can apply in my daily life?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
3. What are the new insights/discoveries that I learned?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
4. What topics do I find least important?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
5. What possible topics should have been included?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________


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SCHOOL OF INTERNATIONAL HOSPITALITY AND TOURISM MANAGEMENT

HOSPITALITY AND TOURISM

Prepared by: A Self-regulated Learning Module

II. Body of the Module

V. Evaluation of the Course . . . . . . . 85

A Self-regulated Learning Module 2

1. Course Code and Course Title

THC 105 - Hospitality and Tourism Marketing

3. Requirements of the Course

After completing this Course, YOU are expected to:

WEEK TOPICS ACTIVITIES

A Self-regulated Learning Module 3

7 Unit 4: Differentiation, Segmentation, 1. Self-assessment Activity

A Self-regulated Learning Module 4

Submission of Assignment and Graded Quiz

13 and Unit 7: Promoting Product 1. Self-assessment Activity

A Self-regulated Learning Module 5

Submission of FINAL REQUIREMENT

A Self-regulated Learning Module 6

At the end of Unit 1, YOU should be able to:

Self-assessment Activity 1 Test your Logo knowledge

Most People Can't Identify 12 of These Logos — Can You?

A Self-regulated Learning Module 7

Self-assessment Activity 1 Score: ________

Reflection Yes I’m not yet sure or certain

Can I manage to learn on my own?

A Self-regulated Learning Module 8

Importance: To convert societal needs into profitable opportunities.

General Concept: Everyday phenomenon, encompassing all activities involving an

Marketing Core Concepts

Core Concepts of Marketing

A Self-regulated Learning Module 9

Marketing Management Philosophies / Approaches

A Self-regulated Learning Module 10

Marketing Mix 8Ps

A Self-regulated Learning Module 11

2. Place (Unit 5 Discussion)

3. Price (Unit 6 Discussion)

4. Promotion (Unit 7 Discussion)

6. Packaging and 7. Programming

8. Partnership - refers to cooperative marketing efforts among complementary

A Self-regulated Learning Module 12

Period Characteristics (Nature)

Sales • As the competition intensified, the emphasis switched from

Marketing • Companies began to realized that selling alone did not

Societal • Firms started to realize social responsibility in addition to their

A Self-regulated Learning Module 13

Service Characteristics of Hospitality and Tourism Marketing

Characteristics of Hospitality & Travel System

Friction & Complexity &

The Service Culture

Characteristics of Service Marketing

A Self-regulated Learning Module 14

Satisfying Customer Complaints

Exercise 1 Satisfied or Dissatisfied?

A Self-regulated Learning Module 15

Managing Service Quality

Management Strategies for Service Business

1. Tangibilizing the Service Product