Assignment for Tourism and Hospitality

Marketing Course
• Assignment-2 (10 points/Marks)
• Questions
1.Explain the importance of understanding customers , the marketplace
and identify the five core marketplace concepts
2.List and discuss several of the Marketing Management Philosophies.
Which of these do you consider to be the most important for tourism
and Hospitality industry? Why?
answer:-
• Understanding our market place , customers and our competitors is
essential if we are going to build a successful business. Finding out
what our customers really want will help to improve our products and
services to meet their needs.
• All marketing efforts are made to attract customers, serve superior
value, and capture return value for the customer in a superior routine
than the competitors in the marketplace who compete with the same
motive.So, understanding the customer, the marketplace, and their
behavior is essential for any marketing decision and action.
They have identified and acknowledged that
5 core concepts of customer and marketplace;
1)Needs wants, and demands,
2)Market offerings such as products, services, and experiences,
3)Value, satisfaction, and quality
4)Exchange, transactions, and relationships, and
5)Markets.
1)Needs, Wants, and Demands
• the most basic concept of fundamental marketing is that of human
needs, wants, and demands.
Needs:-Human needs are states of felt deprivation.
• If an individual feels that he is deprived of something, we may say
that he has a need.
• An individual may have different types of needs. There are three basic
categories of needs viz. physical, social, and individual. Physical needs
arise out of biological tension, such as the need for food and shelter.
cont...
• On the contrary, social needs are created out of social interaction,
such as affection.
• Again, individual needs arise out of the person’s personal
characteristics, such as the need for self-expression and knowledge.
You should know that these needs vary from person to person,
country to country, region to region, and so on.
• An individual looks for an object when he has a need unmet, and
because of this, marketing is concerned more about human needs.
Marketers try to identify varied human needs and attempt to meet
these needs better than their competitors.
 Wants
• Human wants – the other marketing concept means the conversion of
needs to some tangible product or service. This conversion depends
on the personality of the individual or his culture.
• For example, if an ethiopian person is having a need for food, he will
look for the rice to satisfy his need, while an Italian will look for
spaghetti to meet the same need.With the elapse of time and the
development of science and technology, wants are becoming diverse.
 Demands
• If wants for specific products are backed by purchasing power and willingness to buy,
we call them demands. You know that wants are unlimited where resources are
limited, and hence people always buy those goods that provide them maximum
satisfaction. It implies that people do not buy and cannot afford to buy everything they
want.
• For example, many persons want the latest model Toyota car, but only a few will be
willing and able to buy one of these cars.
• As a marketer, we should, therefore, identify basically how many people would
actually be willing and able to buy our product, not how many want it, since this is less
important to ours.
• By making our product attractive, affordable, and easily available, we can influence
demand greatly, and we should do it since markets now adays are highly competitive.
2)Market Offerings – Products, Services, and
Experiences
• Consumers’ needs and wants are satisfied through market offerings.
• Market offerings are some combination, mixture, or blend of physical products, services,
information, ideas, or experiences offered to a market to satisfy a need or a want.
• Examples of market offerings are everywhere. From coke’s “open happiness” adverts’ to a
simple banner on a webpage, market offerings are finding ours no matter where we are go
online or offline.
• For any sellers putting the best blend of offers in a market, the offering is the challenge.
• Many of them make a mistake named “marketing myopia” – paying more attention to the
specific products they offer than the benefits and experiences produced by these products.
• Here they are so hooked with their products that they focus only on existing wants and lose
sight of customer needs.
• They forget that a product is only a tool to solve a consumer problem. “market offerings”- that
gets results for the sellers puts the customers’ needs, wants, and demands first.
3)Value, Satisfaction, and Quality.
• Consumers usually face a wide-ranging array of products and services in forms of
“market offerings” that might satisfy a certain need.
• A customer always forms expectations about the value and satisfaction that various
market offerings will deliver and buy them for that reason.
• Customer value and customer satisfaction are key building blocks for developing and
managing customer relationships.
• Customer satisfaction is the extent to which a product’s perceived performance
matches buyers’ expectations.
• If the product’s performance falls short of buyers’ expectations, the buyer is
dissatisfied. If performance matches or exceeds expectations, the buyer is
satisfied.customer satisfaction is closely related to quality. Quality has a direct
influence on product performance and hence on customer satisfaction.
4)Exchange, Transactions, and Relationships
• Marketing occurs when people decide to satisfy their needs and wants
through exchange relationships.
• The exchange is the act of obtaining the desired object from someone by
offering something in return. Marketer tries to bring about a response to
some market offering.
• By this, marketers try to build and maintain profitable exchange relationships
with target audiences interested in an exchange.
Exchange-Marketing takes place when people decide to satisfy needs and
wants through exchange.
. Exchange is the act of obtaining a desired object from someone by offering
something in return.
cont...
The exchange has many benefits;
• People don’t have to depend on others, and they must not necessarily possess the skills to
produce everything they need.
• They can decide to produce things which they excel in and trade them for other goods produced
by others.
• So, the exchange makes it possible to produce much more than it would have made with any
other alternative system.
Several conditions must exist for an exchange to take place.
• There should be at least two parties in exchange, and each must have something of value to the
other.
• Each party must have the desire to deal with other parties, and each must have the freedom to
accept or reject the other’s offer.
• Finally, each party must have the ability to communicate and deliver.
 Transactions
• Where as exchange is the core concept of marketing, a transaction is
marketing’s unit of measurement. The transaction is a trade between
two parties that involves at least two things of value, agreed-upon
conditions, a time of the agreement, and a place of agreement.
• in a transaction, one party gives A to another party and gets B in return.
• For example, a buyer pays LG $2,500 for a 4k television. This is a typical
momentary transaction. But all transactions do not involve money.
• For example, in a barter transaction, one might trade an old sewing
machine in return for secondhand furniture.
• Transactions lead marketers gradually to relationship marketing.
 Relationship
• Relationship marketing is the process of creating, maintaining, and
enhancing strong, value-laden relationships with customers and other
stakeholders.
• Marketing extends beyond creating short-term transactions; they
have to build long-term relationships with customers, distributors,
dealers, and suppliers.
• This is done by promising and consistently delivering high-quality
products, good service, and fair prices.
5)Markets
• The concept of the market basically emerged from the concept of a
transaction. We can define the market as a set of actual and potential
buyers of a particular product.
• The size of a market depends on three things; the number of people
who demonstrate the need, have resources to take part in an
exchange and are willing to part with these resources in exchange for
what they want.
• Marketing efforts are undertaken for controlling markets to bring
about profitable.
2.List and discuss several of the Marketing Management
Philosophies. Which of these do you consider to be the most
important for tourism and Hospitality industry? Why?

•Marketing is an all-encompassing process. It includes all activities from

production to distribution of goods and everything in between.
• different entities employ different tactics and concepts known as marketing
management philosophies.
marketing management philosophies includes:-
• 1)Production Concept
• 2)Product Concept
• 3(Selling Concept
• 4)Marketing Concept
• 5)The societal marketing concept
1)Production Concept
• This concept is based on the efficient production process of a company.
Since the days of the industrial revolution, it is believed that goods that
are available in excessive quantities and cheap prices will always sell. It is
the Says law that “supply will create its own demand’.
• So a company can choose the production concept where it will utilize the
economies of scale. It will produce huge quantities of goods at lower
costs and sell them in all markets and inexpensive rates. Here the profits
will come from the number of goods sold.
• But the logic is flawed that the customer chooses a product only based on
price. There are many other factors he will consider, such as quality and
differentiation.
1)Product Concept

• This concept places its emphasis on quality and innovation rather

than price and availability. In a market, there are many factors that
influence the customer. One such important factor is the quality of
the product and all its features that are on offer.
• so in the product concept, the company will make sure their goods
are of the best quality. This will mean the cost of production and the
price of the product will be higher. But the company will look to
maximise profit by promising quality products. Those customers who
will emphasise the cost or the accessibility of the product will be
driven away.
3(Selling Concept
• Here the concept shifts from production of the product to simply
selling the product. Even if the goods meet the price and quality
requirements of the consumer, the sale is not guaranteed. In the
selling concept of marketing management philosophies, the idea is to
persuade the consumer to buy the product by any means necessary.
• Companies use promotion, advertising and publicity to convince the
consumer to buy their products. At times they can even manipulate
consumers. The ultimate aim here is to push the product, without
thought of long-term consequences.
4)Marketing Concept
• Marketing is one of the newer marketing management philosophies.
It is a very 21st-century concept that truly believes “the customer is
king”. Here ever decision will be influenced by the needs of the
customer. Right from production and design of the goods to its
transportation, every process has the customer in mind.
• Since customer satisfaction is the main goal of the marketing concept
they need not worry about selling or production. Since they are
fulfilling all the needs of the consumers it is a given the consumer will
pay an appropriate price for the product.
5)The societal marketing concept
• This marketing philosophy is all about knowing your customers’ needs,
while also caring about the well-being of the society and the environment.
• It sees businesses as parts of society and promotes their participation in the
solving of important issues, like pollution, world hunger, and illiteracy.
• With all the pollution issues that we’ve had in the past few months and
climate change being in full swing, it is important that businesses show that
they care about these issues, because if they seem like they don’t care, they
might lose a lot of customers.
• Therefore, many businesses today donate and participate in all sorts of
charities, as well as promote them.
cont...
• the most important Marketing Management Philosophies for tourism
and Hospitality industry is Marketing Concept
• because in marketing Concept customer satisfaction is the main
goal ,not worry about selling or production. Since they are fulfilling all
the needs of the consumers it is a given the consumer will pay an
appropriate price for the product.
 Assignment-2 (10 points/Marks)
Questions
• 1.Explain the major types of buying decision behavior and the stages
in the buyer decision process.
Types of Buying Decision Behavior includes:-
• Complex Buying Behavior
• Dissonance- Reducing Buying Behavior.
• Habitual Buying Behavior.
• Variety-Seeking Buying Behavior
1. Complex Buying Behavior
• is when the consumer is highly involved in the purchase and the
knowledge about significant differences between brands, it is called
complex buying behavior. Buying a car is an example of complex
buying behavior.
2.Dissonance- Reducing Buying Behavior.
• Dissonance- reducing buying behavior happens when consumers are
highly involved with an expensive, infrequent, or risky purchase but
perceives little difference among brands.
• For example, consumers buying split type air conditioner may face a
high-involvement decision because air conditioning is costly and self-
expressive.
3.Habitual Buying Behavior.
• Habitual buying behavior happens when consumer involvement is
low, and the perceived brand difference is low.
• In cases of habitual buying, consumer behavior does not follow the
typical belief-attitude-behavior pattern.
• for example, take flour; consumers have insignificant involvement in
this product category. They go to a store and ask for a brand. If they
keep asking for the same brand, it is out of habit rather than strong
brand loyalty. Consumers have low involvement with most low-cost,
frequently purchased products.
4.Variety-Seeking Buying Behavior

• Consumers undertake variety-seeking buying behavior in situations

characterized by low consumer involvement, but significant perceived
brand differences. In such cases, consumers often do a lot of brand
switching.
• For example, when buying cookies, a consumer may hold some
beliefs, choose a cookie brand without much evaluation, then
evaluate that brand during consumption.
• But the next time, the consumer might pick another brand out of
boredom or try something different. Brand switching occurs for the
sake of variety rather than because of dissatisfaction
1 stages in the buyer decision process.
•Stage 1: Need recognition
•In this first stage, the consumer recognizes that he has an unmet need and
is driven to action by a need or desire. Unsatisfied needs create discomfort
to the consumer, so that he begins to recognize that this need can be met
by acquiring or consuming goods and services.
•Stage 2: Information and Alternatives Search
•in this second stage of the consumer buying decision process, the
consumer identifies alternative products and brands that are able to meet
their needs, and therefore proceeds to gather information about them from
different sources. Whether asking acquaintances or searching the internet.
Stage 3: Evaluation of Alternatives
• In this third stage of the consumer buying decision process, the
consumer ponders the pros and cons of the identified alternatives.
• When some satisfactory alternatives have been identified, the
consumer proceeds to evaluate them before making a decision. The
evaluation may involve a single or several criteria, with which the
alternatives are compared. For example, price, quality, ease of use,
time, durability or color.
Stage 4: Purchase Decision
• In this 4 stage of the consumer buying decision process, the consumer
decides to buy or not buy, and makes other decisions related to the
purchase.
• After searching and evaluating, the consumer has to decide whether
or not to buy. Thus, the first result is the decision to buy or not the
alternative evaluated as the most desirable. This part of the process
the consumer can make the decision in 1 hour or up to 1 month later.
Everything will depend on the type of product or service and how
large the investment is to acquire said product or servic
Stage 5: Post Purchase Behavior
• Finally, at this fifth stage of the consumer buying decision process, the
consumer seeks to ensure that the choice he made was correct.
• What the consumer learns in his journey through the purchase
process has an influence on how he will behave the next time the
same need is pressed. Moreover, new opinions and beliefs have been
formed and the old ones have been corrected. Therefore, this time,
we have a more expert consumer in the field.
• Therefore, as business owners and marketers, we must also assess
how they behave in consumer after making the purchase.
2.Explain the consumer market and construct a simple model of
consumer buyer behavior.

•A consumer market is the very

system that allows us to purchase
products, goods, and services.
These items can be used for
personal use or shared with
others. In a consumer market, we
make our own decisions about
how we will spend money and use
the products we purchase.
3.How will ensure a profitable venture during current corona
virus pandemic situations in tourism and Hospitality sector?
• As the effects of COVID-19 spread across the entire world, the primary
focus for governments and businesses is the safety of their people.
• Whilst this focus will continue, the implications for economic growth
and corporate profits have to lead to a sharp sell-off in equity markets
across the globe.
• We are proud to see that our hospitality and leisure clients, being the
first ones that experienced the extreme bad weather conditions, are
moving quickly and remain focussed to understand and quantify the
operational and financial impact for the business.
cont...
the profitablity in tourism and Hospitality sector during current corona virus
pandemic situations can be ensure by
• working together, showing their true hospitality commitments in helping out our
society where they can.For example by making their venue available for hospital
beds and hospital employees.
• Minimizing all discretionary operational and capital expenditure.
• Offer our guest different options for cancellation to retain the customer in the
long-term.
• Manage All Revenue Streams
• Create Stellar Guest Experiences
the end