UNIT 8 Marketing in hospitality

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Unit 8:

Unit code: QCF level: Credit value:

Marketing in Hospitality

Y/601/1793 4 15


This unit enables learners to understand the concepts of marketing, the role of the marketing mix, the marketing cycle, and gain skills in using the promotional mix.
Unit abstract
This unit introduces learners to the key concepts and functions of marketing as they apply to services industries, including hospitality, travel, tourism, sports, leisure and recreation. The unit will give learners knowledge and understanding of the key factors affecting marketing environments, and investigate the role of marketing in different sectors of relevant service industries. The unit focuses initially on the concepts of marketing, moving on to the functional and operational aspects of marketing as the unit progresses. Learners will investigate marketing in the context of one of today’s competitive service industries.

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Unit content
LO1 Understand the concepts of marketing in a services industry context
1. Understand the concepts of marketing in a services industry context Core concepts: definition of marketing, customer needs, wants and demands, product and services markets, value, customer satisfaction/retention, quality, cost/benefits, efficiency/effectiveness, profitability, the growth of consumerism, strategic/tactical marketing, reasons for growth, marketing as a business philosophy, relationship marketing, changing emphasis of marketing Marketing environment: micro environment of the company; stakeholders eg suppliers, intermediaries, owners, financiers, customers, competitors, local residents, pressure groups; macro environment demographics eg economy, society, ecology, technology, politics, legal, culture; strengths, weaknesses, opportunities and threats (SWOT) analysis; political, economic, social, technical (PEST) analysis; Porter’s competitive forces Consumer markets: central role of the customer, customer culture, models and types of behaviour, consumer orientation (internal and external), competitor orientation, decision process, value chain, value and satisfaction, long-term relationships Market segmentation: principles of segmentation, targeting and positioning, segmentation bases eg geographic, demographic, behavioural, lifecycle stage, income, gender Ethics and social responsibility: sustainability, social audit, public relations, legal and regulatory considerations, public policy, third world issues, trends eg green issues, environmentalism, pressure groups Services industry context: contexts eg hospitality, travel, tourism, sports, leisure, recreational industries, public, private, voluntary (not-for-profit) sectors

LO2 Understand the role of the marketing mix
2. Understand the role of the marketing mix Marketing mix elements: nature and characteristics of products and/or services, service quality, people, partnerships, programming, packaging Products/services: characteristics, features/benefits, product strategy/mix, lifecycle, development processes, test-marketing (simulated and controlled), concept development and testing, unique selling points (USPs), branding Place: distribution channels, customer convenience and availability, physical distribution and logistics, niche marketing, vertical/horizontal integration, impact of technology, franchising, ethical issues Pricing: strategies eg skimming, penetration, product mix, price adjustments, competitor analysis, policy eg cost-plus, break-even, value-based, competition-based, variable, price setting considerations; factors affecting pricing decisions eg demand elasticity, competition, ethics

LO3 Be able to use the promotional mix
3. Be able to use the promotional mix Promotional mix: role eg public relations, sponsorship, personal selling, advertising and sales promotions, branding, effective communications, communication channels, online marketing, promotional-mix decisions, budgetary considerations, monitoring and evaluating promotions Advertising: objectives, methods, reach, frequency, impact, creating copy, costs and budgeting Campaign: format, objectives, target market, evaluation Sales promotion: aims and objectives, reasons for growth, methods, tools, limitations, branding and merchandising, evaluation

LO4 Understand the marketing cycle in a services industry environment
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4. Understand the marketing cycle in a services industry environment Research and information: relevance, new and existing products, services and markets; market information systems, defining the market, measuring current demand, the marketing research process, forecasting and demand measurement, positioning of products and services, quality as an influence on customer perceptions Data collection and analysis: needs, wants, location, focus group, primary research eg questionnaires, surveys, interviews, samples; secondary research eg internal records, statistics, published information, government publications, industry journals, qualitative/quantitative data, analysis, evaluation Communications: range of media eg television, newspapers, magazines, radio, billboards, and posters; suitability for specific products, services and markets Marketing plan: implementation, timescales, costs, evaluation eg objectives, revisions, and outcomes

Learning outcomes
Understand the concepts of marketing in a services industry context Understand the role of the marketing mix Be able to use the promotional mix Understand the marketing cycle in a services industry environment.

On successful completion of this unit a learner will
Assessment criteria for pass
LO1 Understand the concepts of marketing in a services industry context

The learner can:
1.1 discuss concepts of marketing for a relevant services industry
 1.2 assess the impact of the marketing environment on the industry
1.3 evaluate the relevance of consumer markets in the industry
1.4 discuss the rationale for developing different market segments

LO2 Understand the role of the marketing mix
2.1 assess the importance of components of the marketing mix to the industry
2.2 analyse pricing strategies and policies in relation to the industry

LO3 Be able to use the promotional mix
3.1 evaluate the role of the promotional mix
3.2 plan an advertising campaign for a services industry operation
 3.3 analyse the role that sales promotion and public relations play in promotional efforts

LO4 Understand the marketing cycle in a services industry environment
4.1 discuss the relevance of market research to services industry operations
4.2 undertake market research for an appropriate product or service
 4.3 analyse the suitability of different media for marketing an appropriate product or service
 4.4 evaluate the implementation of the marketing plan for an appropriate product or service

This unit can be linked to other units, depending on the style of delivery and learning, including:

Unit 3: Customer Service
 Unit 17: Quality Management in Business
 Unit 19: External Business Environment
Unit 20: Business Health Check
Unit 21: Small Business Enterprise.

This unit also links to the following Management NVQ units
: B1: Develop and implement operational plans for your area of responsibility
 B2: Map the environment in which your organisation operates
 B3: Develop a strategic business plan for your organization
 B8: Ensure compliance with legal, regulatory, ethical and social requirements
 C1: Encourage innovation in your team
 C2: Encourage innovation in your area of responsibility
C3: Encourage innovation in your organisation
E1: Manage a budget
 E2: Manage finance for your area of responsibility
F1: Manage a project
F3: Manage business processes
 F4: Develop and implement marketing plans for your area of responsibility
 F9: Build your organisation’s understanding of its market and customers
 F12: Improve organisational performance.

Essential requirements
Learners must share a common understanding and definition of marketing and know the relevant technical terminology. Case studies will enable learners to make comparisons of marketing opportunities and practices in different types of business, and this will support learning outcomes 2, 3 and 4. Study of moral and ethical issues and examination of different marketing trends in the relevant industry will encourage debate and the exchange of ideas. This will develop learners’ understanding of marketing decision making.

Employer engagement and vocational contexts
Breadth of knowledge and increased understanding may be achieved by a combination of visiting speakers, visits to businesses and residential opportunities designed to cover key sectors of the relevant services industry. Visits to industry exhibitions will enable learners to make comparisons of the promotional techniques used by exhibitors. This will support the delivery of learning outcome 4.