Marketing in hospitality


Unit 8:
Marketing in Hospitality

Unit code:

QCF level:

Credit value:

  • Aim

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.
  • Learning outcomes
On successful completion of this unit a learner will:
1    Understand the concepts of marketing in a services industry context
2    Understand the role of the marketing mix
  • Be able to use the promotional mix
  • Understand the marketing cycle in a services industry environment.
Unit content
  • 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
  • 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
  • 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
  • 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 and assessment criteria
Learning outcomes
Assessment criteria for pass

On successful completion of
The learner can:

this unit a learner will:

LO1 Understand the concepts of
discuss concepts of marketing for a relevant services

marketing in a services


industry context
assess the impact of the marketing environment on the


evaluate the relevance of consumer markets in the


discuss the rationale for developing different market


LO2 Understand the role of the
assess the importance of components of the marketing

marketing mix

mix to the industry

analyse pricing strategies and policies in relation to the


LO3 Be able to use the
evaluate the role of the promotional mix

promotional mix
plan an advertising campaign for a services industry


analyse the role that sales promotion and public

relations play in promotional efforts

LO4 Understand the marketing
discuss the relevance of market research to services

cycle in a services industry

industry operations

undertake market research for an appropriate product

or service

analyse the suitability of different media for marketing

an appropriate product or service

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:
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 organisation
  • 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.