Assignment s
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This information is proprietary to Dr. Minsun Kim. Scanning, copying, website posting, or reproducing and sharing in any form is strictly prohibited. Module 1-Lecture 1 S1 Hello everyone. Welcome to MKT 705. Module 1 focuses on introduction: marketing for hospitality and casino. This is lecture 1. S2 In this lecture, we will address 2 questions: What is the hospitality industry? What is marketing? S3 -Question # 1. What is the hospitality industry? Hospitality industry is a broad category of fields within the service industry which includes lodging, transportation (such as airlines and rental cars), casinos, restaurants, event planning (such as wedding and conference), theme parks, and cruise lines. -Remember that a Casino is one organization in the hospitality industry. S4 -Question #2. What is marketing? -There are several ways to define marketing. The simple definition of marketing are activities of a company associated with buying and selling a product or service. Then, what is a product or service? -People are often confused with (physical) goods, services, and products. So, here let me clarify these terms.
- ᴥ (Physical) Goods are tangible products that are sold or purchased in the marketplace. Tangible means that you can put these items in your hand and hold them. Cell phones, cameras and detergents are all examples of physical goods. S5 Services are intangible products that are sold or purchased in the marketplace. A meal purchased at a fast-food restaurant, an occupied room in a hotel, a gaming area in a casino, and an airline seat are considered services. It is because after the meal is consumed and paid for, after guests check out the hotel room, after people finish their games, and after passengers arrive at destinations, they leave the facilities and do not have a tangible product in exchange for the money spent. In this case, people have consumed a service. S6 Product includes both. Product refers to the physical goods and services that are bundled together and offered to consumers. For example, computers and automobiles are sold as tangible goods, but they include warranties and services contracts, which are intangible, as part of the overall product. Nearly every product sold includes both tangible and intangible elements. S7 -Let’s go back to question #2. What is Marketing? American Marketing Association defines marketing as an organizational function and a set of processes for creating, communicating, and delivering value to consumers, and for managing consumers relationships in ways that benefit the organization and its stakeholders.
-The first important aspect of this definition is that “creating, communicating, and delivering value to consumers. ᴥ It means that marketers in the hospitality industry must understand what consumers want and need, and what products
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or services can create value to consumers, and how to deliver those products or services to consumers at a satisfactory level. S8
ᴥ Here is an example. Mary’s family would like to have a family vacation during summer. Marketers have created and provided a vacation package in Hawaii that includes a flight, a hotel room, entertainment, and a local tour. If Mary’s family were looking an exotic vacation in an island which they also wanted a convenient way to manage their trip this package may meet their needs and wants. In other words, the package the marketers have developed creates value to Mary’s family.
ᴥ Marketing must be understood in the sense of satisfying consumers’ needs and wants. S9 -Another important aspect of this definition is that “marketing needs to benefit the organization and its stakeholders”.
By creating and delivering value to consumers, the organization should be able to gain some benefits. ᴥ In most cases, the benefits are financial benefits, such as a 15% annual return on investment.
Therefore, marketing can be understood as the exchange that takes place ᴥ between an organization and a consumer. Both parties must receive something they are satisfied with. For the consumer, it is value. For the organization, it is benefits, most likely financial benefits.