Module 1

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Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition

Chapter OneChapter One

The Concept of MarketingThe Concept of Marketing



Overview of the CourseOverview of the Course

How to use the marketing function to How to use the marketing function to develop a competitive advantagedevelop a competitive advantage

What is competitive advantage:What is competitive advantage:– defined as the ability of a firm to defined as the ability of a firm to

develop and maintain distinctive develop and maintain distinctive competencies that enable it to capture a competencies that enable it to capture a larger share of the market and earn larger share of the market and earn higher than average profits higher than average profits



Definition of MarketingDefinition of Marketing

Identifying evolving consumer preferences, Identifying evolving consumer preferences, then capitalizing on them through the then capitalizing on them through the creation, promotion and delivery of products creation, promotion and delivery of products and services that satisfy the corresponding and services that satisfy the corresponding demand. This is done by solving the right demand. This is done by solving the right customers’ problems, giving them what they customers’ problems, giving them what they want or need at the time and place of their want or need at the time and place of their choosing, and at the price they are willing to choosing, and at the price they are willing to pay.pay.



Competitive AdvantageCompetitive Advantage

Distinctive competencies:Distinctive competencies:– Management knowledge Management knowledge – CultureCulture– LocationLocation– Access to resourcesAccess to resources– Exceptional employeesExceptional employees– Special patentsSpecial patents– Access to capitalAccess to capital– Brand name Brand name



Restaurant Zum SeeRestaurant Zum See There are 40 mountain restaurants in the Zermatt There are 40 mountain restaurants in the Zermatt

area.area. The market for these restaurants is hikers and The market for these restaurants is hikers and

skiers. skiers. The only way to get to the restaurant in the The only way to get to the restaurant in the

summer is to hike 30 minutes up the mountain summer is to hike 30 minutes up the mountain from Zermatt or hike 20 minutes down from the from Zermatt or hike 20 minutes down from the nearest gondola. nearest gondola.

In the winter one reaches the restaurant on skis In the winter one reaches the restaurant on skis or snowshoes. or snowshoes.

All the supplies for the restaurant are brought in All the supplies for the restaurant are brought in by tractor during the summer and on a motorized by tractor during the summer and on a motorized snow sled in the winter. snow sled in the winter.

The employees get to the restaurant by hiking The employees get to the restaurant by hiking and sliding down on a wooden sled. and sliding down on a wooden sled.



Restaurant Zum See (cont.)Restaurant Zum See (cont.)

On the side of a mountain and not On the side of a mountain and not easily accessible easily accessible

Seating 165 customersSeating 165 customers Turns over its tables, on average 1.5 Turns over its tables, on average 1.5

times daily during its summer and times daily during its summer and winter seasons. winter seasons.

Open from December through April in Open from December through April in the winter and July through the winter and July through September in the summer.September in the summer.




Why do people walk by other Why do people walk by other restaurants to get to the Restaurant restaurants to get to the Restaurant Zum See? The answer to this Zum See? The answer to this question is the heart of this class. question is the heart of this class. This restaurant provides a prism This restaurant provides a prism through which we can illustrate the through which we can illustrate the framework of the book. framework of the book.




One way to categorize the different One way to categorize the different actions that Max and Greta Mennig actions that Max and Greta Mennig and other firms take to gain a and other firms take to gain a competitive advantage is to examine competitive advantage is to examine the functional areas of the firm. the functional areas of the firm.




These functional areas are known as These functional areas are known as the value-chain activities because the value-chain activities because they entail all the activities an they entail all the activities an organization undertakes in order to organization undertakes in order to transform raw materials into the final transform raw materials into the final product or service that the customer product or service that the customer buys.buys.



Value ChainValue Chain

Primary activities that enable creation Primary activities that enable creation of the projectof the project– ManufacturingManufacturing– MarketingMarketing

Secondary activities that enable Secondary activities that enable primary activities to take placeprimary activities to take place– Infrastructure Infrastructure – R&DR&D– Materials ManagementMaterials Management– Human ResourcesHuman Resources



Value ChainValue Chain——MarketingMarketing

EfficiencyEfficiency QualityQuality InnovationInnovation Customer responsivenessCustomer responsiveness SizeSize ValueValue Why not price?Why not price?



The Concept of MarketingThe Concept of Marketing

Marketing is the integration of all the Marketing is the integration of all the professional disciplines required to professional disciplines required to determine the nature of consumer determine the nature of consumer demand, then develop, promote, and demand, then develop, promote, and deliver the products and services deliver the products and services that will satisfy that demand. that will satisfy that demand.



Purpose of a BusinessPurpose of a Business It is the customer who determines what a It is the customer who determines what a

business is. business is. – For it is the customer, and he alone, who is willing to pay For it is the customer, and he alone, who is willing to pay

for a good or for a service.for a good or for a service.– What the business thinks it produces is not of first What the business thinks it produces is not of first

importance—especially not to the future of the business importance—especially not to the future of the business and to its success. and to its success.

– What the customer thinks he is buying, what he What the customer thinks he is buying, what he considers “value,” is decisive—it determines what a considers “value,” is decisive—it determines what a business is, what it produces, and whether it will business is, what it produces, and whether it will prosper.* prosper.*

* Drucker, P.F. (1954). * Drucker, P.F. (1954). The practice of management The practice of management (p. (p. 37). New York: Harper & Row.37). New York: Harper & Row.



Solving Customers’ ProblemsSolving Customers’ Problems

Customers have problems and need solutionsCustomers have problems and need solutions Customers are attracted to product or service Customers are attracted to product or service

featuresfeatures Customers want to achieve a certain image, Customers want to achieve a certain image,

aspiration, or dreamaspiration, or dream Customers don’t always know what they want, Customers don’t always know what they want,

but know what they don’t wantbut know what they don’t want Customers do not know they have a problem but Customers do not know they have a problem but

purchase anywaypurchase anyway Customers have needs that warrant solutions that Customers have needs that warrant solutions that

have costs; a trade-off situationhave costs; a trade-off situation



Solving Customers’ Problems Solving Customers’ Problems (cont.)(cont.)

Customers experience simultaneous Customers experience simultaneous production and consumptionproduction and consumption

– The solution needs to meet the expectation to The solution needs to meet the expectation to create value and satisfy the customercreate value and satisfy the customer

– If the solution does not meet the expectation, If the solution does not meet the expectation, the result is an unsatisfied customerthe result is an unsatisfied customer



Customer Customer Satisfaction MeasurementSatisfaction Measurement

Does the company you work with Does the company you work with measure customer satisfaction?measure customer satisfaction?

How often?How often? How do you measure satisfaction?How do you measure satisfaction? What do you do with the results?What do you do with the results? How would you interpret the diagram How would you interpret the diagram

on the next slide?on the next slide?



Management OrientationsManagement Orientations

Operations OrientationOperations Orientation Product/Service OrientationProduct/Service Orientation Selling OrientationsSelling Orientations Bottom-Line OrientationBottom-Line Orientation Marketing OrientationMarketing Orientation



Marketing LeadershipMarketing Leadership

OpportunityOpportunity

PlanningPlanning

ControlControl



Marketing Is EverythingMarketing Is Everything

Knowledge-based marketingKnowledge-based marketing– Mastering technology to better know Mastering technology to better know

competition and customerscompetition and customers

Experience-based marketingExperience-based marketing– Spending time with customers to design Spending time with customers to design

feedback loops for improved feedback loops for improved product/service intelligenceproduct/service intelligence

Module 1

Technology

Transcript of Module 1