HMGT 3300Marketing exam review 1-6

I. Introduction: Marketing in the Hospitality Industry A. 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. II. What Is Hospitality Marketing? Marketing is the art and science of finding, retaining, and growing profitable customers. 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. B. Analysts predict that the hotel industry will consolidate in much the same way as the airline industry has, with five or six major chains dominating the market. Such consolidation will create a market that is highly competitive. The firms that survive this consolidation will be the ones that understand their customers. C. In response to growing competitive pressures, hotel chains are relying on the expertise of the marketing director. IV. Travel Industry Marketing A. Successful hospitality marketing is highly dependent on the entire travel industry. B. Government or quasi-government agencies play an important role in travel industry marketing through legislation aimed at enhancing the industry and through promotion of regions, states, and nations. C. Few industries are as interdependent as the travel and hospitality industries. V. Marketing Process. 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. A. Understand customers