Marketing Chapter 1 Homework Societal Marketing Concept The Societal Marketing Concept

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Chapter 1: Introduction: Marketing for Hospitality and Tourism

Chapter Objectives

3. Explain the relationships between customer value and satisfaction.

5. Understand the concept of the lifetime value of a customer and be able to relate it to

Teaching Suggestions

The following explanations and suggestions are outlined based on the Chapter Objectives.

industry combine to form the foundation for tourism. Discuss the interrelatedness

2. Define marketing and outline the steps in the marketing process.

Ask students to define marketing (most will bring up advertising and sales). Lead them

towards the full definition of marketing by bringing up other aspects of marketing and

discussing what they all have in common (finding, retaining and growing profitable

3. Explain the relationships between customer value and satisfaction.

Encourage students to discuss products or services that they feel have value. Find out if

4. Understand why the marketing concept calls for a customer orientation.

Discuss the different management philosophies and the drawbacks that can occur when

5. Understand the concept of the lifetime value of a customer and be able to relate it to

customer loyalty and retention.

Good customer relationship management creates customer delight. In turn, delighted

customers remain loyal and talk favorably to others about the company and its products.

Chapter Outline

I. Customer orientation. The purpose of a business is to create and maintain profitable

customers. Customer satisfaction leading to profit is the central goal of hospitality

marketing. [Slide 1-4]

II. What Is Hospitality Marketing? Marketing is the art and science of finding, retaining, and

III. Importance of Marketing

A. The entrance of corporate giants into the hospitality market and the marketing

skills these companies have brought to the industry have increased the importance

of marketing within the industry.

IV. Travel Industry Marketing [Slide 1-7]

A. Successful hospitality marketing is highly dependent on the entire travel industry.

B. Government or quasi-government agencies play an important role in travel

V. Understanding the Marketplace and Customer Needs

The marketing process is a five-step model of the marketing process. In the first four

steps, companies work to understand consumers, create customer value, and build strong

customer relationships. In the final step, companies reap the rewards of creating superior

customer value. By creating value for customers, they in turn capture value from

customers in the form of sales, profits, and long-term customer equity. [Slide 1-8]

A. Understand customers [Slide 1-9]

1.Needs. Human beings have many complex needs. These include basic

physical needs for food, clothing, warmth, and safety; social needs for

2.Wants. Wants are how people communicate their needs.

3.Demands. People have almost unlimited wants but limited resources. They

5.Value, expectations, and satisfaction [Slide 1-12]

a. Customer value is the difference between the benefits that the

b. Customer expectations are based on past buying experiences, the

B. Exchange and relationships [Slide 1-13]

1. Exchange. Exchange is the act of obtaining a desired object from

someone by offering something in return.

2. Relationship marketing. Relationship marketing focuses on building a

3. Designing customer-driven marketing strategy. Marketing management

is the art and science of choosing target markets and building profitable

relationships with them.

a. Selecting customers to serve. The company must select those

market segments it wishes to serve.

VI. Designing a Customer Value-Driven Marketing Strategy

A. Choosing a value proposition. The company must also decide how it will serve

targeted customers and how it will differentiate and position itself in the

marketplace.

B. Marketing management orientation [Slide 1-14]

1. Production concept. The production concept holds that customers will favor

2. Product concept. The product concept holds that customers prefer existing

3. Selling concept. The selling concept holds that consumers will not buy enough

4. Marketing concept. The marketing concept holds that achieving

5. Societal marketing concept. The societal marketing concept holds that the

organization should determine the needs, wants, and interests of target

VII. Preparing tlines

which customers the company will serve and how it will create value for these customers.

Next, the marketer develops an integrated marketing program that will actually deliver

VIII. Build Customer Relationships. Customer relationship management (CRM) involves

IX. Capturing Value from Customers. We try to capture value from our customers in the

form of current and future sales, market share, and profits. By creating superior customer

value, the firm creates highly satisfied customers who stay loyal and buy more. [Slides 1-

18 to 1-19]

A. Customer loyalty and retention. The benefits of customer loyalty come from

continued patronage of loyal customers, reduced marketing costs, decreased price

B. Growing share of customer. Beyond simply retaining good customers to capture

C. Building customer equity. Customer equity is the discounted lifetime values of all

X. The Changing Marketing Landscape.

A. The digital age: online, mobile, and social media marketing. The explosive

C. Rapid globalization. Today, almost every company, large or small, is touched in

Answers to Discussion Questions

1. Discuss why you should study marketing.

Marketing is making business decisions with the customer in mind. It evolves from

2. Marketing can be defined in many ways. In your own words, describe marketing to

someone who has not read this chapter.

3. Many managers view the purpose of business as making a profit, whereas some view

the purpose as being able to create and maintain a customer. Explain how these

alternative view

manager views the purpose as being able to create and maintain a customer, does

this mean that the manager is not concerned with profits?

This is an excellent topic for class discussion.

Profit is a requisite for any for profit business, but it should not be the purpose of

the business. When profit becomes the purpose of the business, managers tend to

4. Talk to two people and ask them to think about a hotel they stayed in that was a

good value. Ask them what made the hotel a good value. Record a summary of their

comments.

5. A restaurant has a great reputation as the result of providing consistent food for

over 10 years. The restaurant is full every weekend and has above-average business

during the week. The manager claims that they do not practice marketing because

they do not need marketing; they have more than enough business now. Is it true

that this restaurant does not practice marketing?

Although this restaurant may not engage in advertising, perhaps they are so successful

6. Look at Figure 1 2. Why do you think persons who give you 2 (a relatively high

score) out of 7 are not likely to return?

Ask your students to think of the last time they went to a restaurant and were just

7. What is customer equity? How can a company increase its customer equity?

8. Give several examples you have found of hospitality companies being socially

responsible. Include in your discussion how being socially responsible helps the

company.