Your report should cover the following topics
Discuss concepts of marketing for a relevant services industry.
Assess the impact of the marketing environment on the industry.
Evaluate the relevance of consumer markets in the industry.
Discuss the rationale for developing different market segments
Assess the importance of components of the marketing mix to the industry..
Analyse pricing strategies and policies in relation to the industry.
Evaluate the implementation of the marketing plan for an appropriate product or service
The report talks about the marketing concept on the hospitality industry. The hospitality industry is a broad category of the fields that include the fast food chains, restaurants and the other food and beverage hotels. The report is based on Hilton Hotel UK; the corporation is having leading hospitality chains. The company currently consist of more than 3,500 hotels across the world in more than 103 countries and territories.
The report shows the marketing environment that affects the working of the company along with that it consists of the consumer market. It consists of the decision-making process and consumer behavior factors. The marketing segmentation and the pricing strategy are discussed along with marketing mix that helps the company in making right strategy.
Hilton Hotel UK is one of the largest and the fastest growing hospitality companies in the world who is having the more than 5,100 properties with more than 838,000 rooms in approximately 103 countries and territories. This brand is a most recognized brand in the world and also consists of Hilton Hotels and Resorts brand. In total 69 members of the company enrolled in the award-winning customer loyalty program (Hilton, 2017). The company is having many outlets in the UK, especially in London.
The marketing concept is the philosophy that the firm makes use of to analyze the needs of their customers and according to this requirement of the customers, the decision is taken by the companies. According to Philip Kotler, marketing management is a managerial and social process with the help of which the individuals or firms take what they need or want through generating, offering, exchanging products of value with each other (Srivastava, 2011). Kolter said that marketing concepts are the philosophies used by the Hilton organizations to guide their marketing efforts. The author says that the core concept of the marketing includes the need, want and demand along with products, value, cost and satisfaction (Pahwa, 2017).
According to AMA’s the concept of marketing is the activity, set of processes for delivering, communicating and exchanging offers that have value for the clients, customers, partners and the society at large. AMA’s says it is a way to analyze and evaluate the customer needs and expectations with the help of the framework. American Marketing Association defines a marketing management as the process of executing and planning the conception of pricing, promotion, distribution of serviced and ideas to create exchanges that satisfy individual and organizational goals.
Each and every company works with the objective, Hilton hotel also has an objective to provide the exceptional experiences to the customers which help the company to improve the market share. The company has an objective to expand the business across the world and to grow in the industry of hospitality.
The vision of the Hilton Hotel is to fill the earth with the light and warmth of hospitality by delivering exceptional experiences to every guest in every hotel and every time. The mission of the company is creating heartfelt experiences for the guests, high value for owners, an opportunity for team members and the positive impact on communities (Hilton, 2017).
Each and every company maintain some of the values similarly the values of Hilton hotel are-
The business environment is the marketing environment that includes the factors which can affect the ability of the company to make the decision. The major marketing environment consists of the macro and microenvironment.
Strength
Weakness
Opportunities
Threats
The microenvironment nearly factors that affect the ability of the company to serve its customers and these factors consist of suppliers, customers, distribution channels, and the general public (Chand, 2017).
The company makes use of the PESTLE tool that helps the company in analyzing the factors that affect the Hilton UK revenue and the long-term growth objectives.
(Source: Marketing Minefield, 2017)
The consumer market refers to buyers who purchase the goods and services for the consumption rather than resale. Each customer is having their preferences and the buying habits in the single market so this is the fact that the factors which can affect the consumer’s behavior of buying products.
There is presence of some of the factors that can affect the consumer buying behavior and some of these factors are discussed below:-
Cultural factors- Cultural factors are the basic factors that create the impact on the consumer behavior. The cultural factors consist of value, perception, geographical regions, social satisfaction or classes. London is the place where most of the hotels of the Hilton group are present. The place is a well-known tourist where the people like to visit and whoever visits the place will like to stay in the 5-star hotel. The consumer believes that the facility provided by the Hilton is impressive and attractive that grabs the attention of the customers (Horner, and Swarbrooke, 2016). Though, the services of the company are available for the high-class group this might affect the customer preferences.
Social factors- The social factors include the group, family, social roles and status that can affect the consumer behavior towards the products and services offered by the company. The family members of the consumer can share their opinion or force the consumer which leads to change in the buying behavior. The Hilton hotel and resort are mostly recommended by the family and friends of the consumer because the services provided by the company is outstanding.
Personal factors- The consumer might have some of the personal factors due to which the decision of buying the product might get affected. These personal factors consist of age and stage in a life cycle, economic conditions, lifestyle and values and occupational. The consumer can’t afford to buy the products and services offered by the company because of high prices. The economic condition of the consumer can affect consumer buying behavior (Cohen, Prayag, and Moital, 2014).
The customer decision process is important for the organization because if in case the organizations won’t understand their customers they can fail. The customer decision process starts with the problem recognition and ends with the post-purchase behavior.
The consumer decision-making process gets affected due to cultural, social, individual and the psychological factors. The culture value includes the myth, values, and customs that can affect the consumer to buy the product. The consumer gets influence with the opinion shared by the friends and family members of a customer (CCF Marketing, 2017). The psychological factors also affect the consumer buying decision which includes the perception, motivation, learning and beliefs and attitudes of a consumer.
The market segmentation is the process which consists of markets divided into different segments or groups. This segmentation process is essential for each and every company because these segments help the companies in identifying the best suitable segments on which they can target efficiently and effectively (Hemsley-Brown, 2017). Similarly, Hilton UK needs the process of market segmentation so that company can use their corporate resources effectively which helps the company for the better strategic marketing decisions. The segmentation also helps the company to target the segment from which they can achieve the growth and success and this success helps the company in enhancing the position (Dudovkisy, 2017).
The geographic segmentation refers to as targeting specific group considering the location. The organization makes use of the geographic segmentation and the company believes in targeting the popular places where tourists most like to visit. In the UK, London is one of the places which are selected by the company and in London also the company selected the prime locations such as Aldwych, Canary Wharf, Tower Bridge, and Trafalgar Square. These places are selected by the company because of the company knowers that most of business and travel visit occur at these places.
This segmentation consists of gender, age, income, lifestyle, social class and many other factors. Hilton UK targets the middle and the senior age professionals having high income and belongs to the upper-class society. The prices of the products and services provided by the company are relatively high that is suitable for the people who belong to the premium lifestyle (Anderson, and Xie, 2014).
The psychographic segmentation includes the consumer values, personality, and lifestyle. The company target the UK customers who perceive the high status and believes in availing the services offered by the luxury brand as they believe this will add value to their status.
The marketing mix is defined as the set of marketing tools that are used by companies to pursue its marketing objectives in a target market. The 8p’s of the marketing mix; product, price, place, promotion, People, Packaging, partnership, Programming together play a vital role. This marketing mix helps the service industry to determine the right marketing strategy for the company. These marketing strategies help Hilton UK to eliminate the failure in the marketing strategies formed by the company (Bhasin, 2016).
(Source: Bhasin, 2016)
Product- The product of the Hilton hotel and resort consist of the quality services, deluxe rooms, restaurants, and bars. The company provides the facility for event celebrations, wedding, and banquets and some gala experience to their guests.
Place- Hilton UK selected London as their prime place where the company maintains many properties. London is selected by the company because the company knows this very well that this is the well-known tourist place. The company believes that the selection of the place includes the surroundings to enhance the experiences (Bowie, Buttle, Brookes, and Mariussen, 2016).
Price- Company follows premium pricing strategy for its delight services. The company has a dedicated team of researchers and the experts that helps the company in deciding the prices for their services.
Promotion- Hilton is the well-known brand in the market of UK still the company makes use of unique promotional activities in which the company provide the exclusive membership to its customers. The company should make use of social media strategies for promoting products (Tuten, and Solomon, 2017). The costing of the company on the other promotional activities is shown below:-
Items |
Cost (in Euro approximately) |
Advertising |
1.2 million Euro for 1 year |
Marketing campaign, sponsorship |
3 million Euro |
Website maintenance |
Euro 50,000 |
Other promotion |
1 million Euro |
People- People include the staff and the employees working in Hilton UK. The company is having a well-dedicated and focused team who bring the new strategies towards the company that helps the company in attracting customer because of its unique and innovative services (SINGH, and KUMAR, 2015).
Packaging- The packaging includes the packaging of the product, the products, and amenities provided by the company. It also includes the online experience provided by the Hilton hotel to its customers.
Partnership- The company is the wholly own subsidiary there is no as such partnership of the company. The company is expanding the business and entering the market through wholly owned subsidiary so there is no partnership.
Programming- The programming includes the process followed by the company and the hotel believes in providing the delight services. To provide the services company performs the research and development and IT activity.
Every business makes use of pricing strategies while selling a product or service in the market. The price is kept by the company so that the company can maximize the profit by selling each unit (Nagle, Hogan, and Zale, 2016). There are certain pricing strategies like skimming, penetration, product mix, penetration, product mix, price adjustments, competitor analysis, and policy (cost-plus, break-even, value-based, competitors-based).
A marketing plan is a comprehensive blueprint or document that outlines a business and marketing efforts for the following year. It involves business activities that help in accomplishing particular marketing objective within a set time frame (Baker, 2014). The marketing plan works like a roadmap that is drawn to help the company to make the goods and services available to customers. The implementation of the marketing plan for Hilton hotel is given below: –
Milestone |
Starting Time |
Ending Time |
Duration |
Setting of mission and objective |
January 2017 |
January 2017 |
1 month |
Analysis of the market environment (PESTLE analysis) |
February 2017 |
March 2017 |
2 months |
Analysis of SWOT (to identify strength and opportunity) |
April 2017 |
May 2017 |
2 months |
Evaluation of the consumer market |
June 2017 |
September 2017 |
3 months |
Identification of the target market |
October 2017 |
December 2017 |
3 months |
Development of the marketing strategies |
January 2018 |
February 2018 |
2 months |
Evaluation of the cost/finance required |
March 2018 |
May 2018 |
3 months |
Execution of plan |
April 2018 |
June 2018 |
3 months |
Evaluation of Plan |
July 2018 |
October 2018 |
4 months |
Implementation of changes in Plan |
November 2018 |
December 2018 |
2 months |
The above is the implementation plan of the Hilton Hotel as the company for the expansion of the business in the market across the border. The company has to set the mission and objective so that the company can accomplish the objective but to accomplish the objective the company need to analysis the external environment. The analysis of the SWOT analysis is required to identify the opportunity which is going to help the company to expand the business. Each and every business tries to convert their weakness into the strength.
The Evaluation of the consumer market helps the company in identifying the availability of the opportunity in the business or the company will be able to achieve the success or not. In the particular consumer market, the company identifies the target audience to whom the company wants to provide the products. The company then form the marketing strategy that helps the company to make the space in the market. The strategies are related to the price kept by the company for the product and company also develop promotional strategies. After the formation of the strategies, there is an evaluation of the cost required so that execution of plan takes place. The company evaluates the plan so that company can bring the changes in the plan if required.
The report throws light on the marketing philosophies and practices of the company. The company selected for the analysis is Hilton Hotel; the report is based on the service industry which is one of the growing industries in the current competitive market. The report includes the impact of the marketing environment on the industry. These factors can impact the decision of the company (Czinkota, and Ronkainen, 2013). The consumer market analysis is discussed in the report which shows how the company gets affected due to changing behavior of buying product. Along with this, there are some factors that affect the company’s decision-making process. Marketing Segmentation helps the company in identifying the target market which helps the company in generating revenues. The marketing strategies formed by the company are discussed below along with the implementation plan.
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