BALD » The one about the importance of marketing

What is marketing?

What seems like an easy question can be tricky to answer. Is it advertising? Making thinks look nice? Maybe it is about selling more. Well, not really. Kotler defines marketing as an ability of an organization to create a value for a customer and develop strong relationships to capture value from customers.

In the hospitality sector marketing encompasses all activities aimed at identifying, attracting, and retaining guests by creating value and memorable experiences. It involves understanding customer needs, developing compelling offerings, and communicating the unique value proposition of hospitality establishments to target audiences. Unlike traditional product marketing, hospitality marketing focuses on selling intangible experiences and services that cannot be stored, making it inherently more complex and relationship driven.

Marketing within hospitality

The importance of marketing in the hospitality industry cannot be overstated, particularly as the sector faces increasing competition and evolving customer expectations. Marketing serves several critical functions:

Revenue Generation and Survival: In an industry where every unsold room or empty table represents lost revenue that cannot be recovered, marketing plays a crucial role in matching supply with demand. The perishable nature of hospitality products makes effective marketing essential for business survival.

Brand Building and Differentiation: Marketing helps establish a strong brand identity that sets establishments apart from competitors. In a crowded marketplace, effective marketing creates brand recognition and loyalty among guests, enabling businesses to command premium pricing and build sustainable competitive advantages.

Direct Booking Optimization: Strategic marketing drives direct bookings, reducing reliance on third-party booking platforms and their associated commission fees. This results in higher profit margins and better control over the guest relationship.

Market Adaptation: The hospitality industry is dynamic, with constantly evolving guest preferences and market conditions. Marketing enables businesses to adapt to these changes, identify emerging trends, and capitalize on new opportunities.

Furhter, marketing fulfills multiple strategic roles within hospitality establishments:

Customer Acquisition and Retention: Marketing attracts new guests while fostering relationships that encourage repeat visits and positive word-of-mouth recommendations. This dual focus maximizes both short-term revenue and long-term profitability.

Market Intelligence: Marketing provides valuable insights into customer behavior, preferences, and market trends through data analysis and customer feedback. This intelligence informs strategic decision-making across all business areas.

Experience Enhancement: Modern hospitality marketing goes beyond promotion to actively enhance the guest experience through personalized communications, tailored offers, and seamless digital touchpoints.

Revenue Optimization: Marketing works closely with revenue management to optimize pricing strategies, identify peak demand periods, and maximize revenue per available room (RevPAR).

The 7Ps of marketing

The most fundamental part of every marketing strategy is marketing mix often represented by 4Ps or 7Ps of marketing. Due to the complexity of modern business world, with an emphasis specifially in the service industry, the base 4Ps were further developed into 7Ps. The traditional 4Ps of marketing (Product, Price, Place, Promotion) have been expanded to include three additional elements specifically crucial for service industries: People, Physical Evidence, and Process. This extended framework is particularly relevant for hospitality establishments due to the service-intensive nature of the industry.

Product

In hospitality, the product encompasses both tangible offerings (rooms, food, amenities) and intangible services (experience, atmosphere, service quality). The product is the core reason customers visit establishments, making quality and value perception critical.

Implementation Strategies:

Focus on perceived value rather than budget-friendly options alone
Regular quality assessments and improvements
Development of unique selling propositions that differentiate from competitors
Creation of memorable experiences that extend beyond basic accommodation or dining

Price

Pricing in hospitality requires sophisticated strategies that consider demand fluctuations, competitive positioning, and customer willingness to pay. Dynamic pricing models are increasingly common, adjusting rates based on occupancy, seasonality, and market conditions.

Implementation Strategies:

Regular analysis of food and operational costs to inform pricing decisions
Implementation of revenue management systems for optimal pricing
Strategic use of promotions during off-peak periods
Value-based pricing that reflects the complete guest experience

Place

Place refers to distribution channels and accessibility. In today's digital age, this primarily involves online presence, booking platforms, and the ease with which customers can access and purchase services.

Implementation Strategies:

Optimization of direct booking channels through user-friendly websites
Strategic partnerships with online travel agencies (OTAs)
Mobile-optimized booking systems
Integration across multiple distribution channels for maximum reach

Promotion

Promotional activities communicate value propositions and drive customer action. Modern hospitality promotion requires an integrated approach across digital and traditional channels.

Implementation Strategies:

Development of consistent brand messaging across all channels
Strategic use of social media for engagement and brand building
Email marketing for customer retention and repeat business
Content marketing that showcases unique experiences and amenities

People

People represent everyone involved in service delivery, from front-line staff to management. In hospitality, people often serve as the primary differentiator between establishments.

Implementation Strategies:

Comprehensive staff training programs focusing on service excellence
Recruitment of personnel with appropriate personalities and skills
Empowerment of staff to exceed customer expectations
Development of service standards that reflect brand values

Physical evidence

Physical evidence includes all tangible elements that customers use to evaluate service quality. This encompasses everything from facility design to packaging and cleanliness standards.

Implementation Strategies:

Investment in sustainable and appealing packaging
Maintenance of high cleanliness and aesthetic standards
Strategic interior design that reinforces brand positioning
Attention to small details that enhance the overall experience

Process

Process refers to the systems and procedures used to deliver services. Efficient processes ensure consistent service quality and operational efficiency.

Implementation Strategies:

Standardization of service delivery procedures
Implementation of quality control measures
Streamlining of customer journey touchpoints
Continuous improvement based on customer feedback and operational data

Process of developing a marketing campaign

Developing effective marketing campaigns requires a systematic, strategic framework which additionally aligns with business objectives and target audience needs. The process is usually broke down into several critical phases:

Market Research and Analysis
Understanding the competitive landscape, customer preferences, and market trends provides the foundation for campaign development. This includes analyzing guest feedback, competitor activities, and industry benchmarks.

Target Audience Definition
Successful campaigns require precise audience segmentation based on demographics, psychographics, and behavioral patterns. Different guest segments (business travelers, leisure tourists, event planners) require tailored messaging and channel strategies.

Objective Setting
Clear, measurable objectives guide campaign development and enable performance assessment. Objectives might include increasing direct bookings by 20%, improving brand awareness, or driving revenue during off-peak periods.

Message Development
Compelling messaging that resonates with target audiences while differentiating from competitors is crucial. Messages should highlight unique value propositions and emotional benefits.

Channel Selection
Choosing appropriate marketing channels based on audience preferences and budget considerations ensures optimal reach and efficiency.

Marketing vs no marketing: a comparison

The difference between well-tailored and poorly executed marketing campaigns is dramatic, as demonstrated by industry data and case studies (figure 1):

Figure 1 Comparision of well-taiolerd marketing vs lack of poor-tailored marketing

Success factors for well-tailored campaigns

Data-Driven Decision Making: Successful campaigns leverage customer data, booking patterns, and market intelligence to inform strategy development. Hotels using data-driven approaches report up to 40% increases in direct bookings.

Personalization: Tailored messaging and offers based on individual preferences and behavior significantly improve engagement and conversion rates. Personalized emails can achieve open rates up to 29% higher than generic communications.

Integrated Channel Approach: Coordinated messaging across multiple touchpoints creates a cohesive brand experience and maximizes campaign reach.

Performance Monitoring: Continuous monitoring and optimization based on real-time performance data ensures campaigns remain effective and cost-efficient.

Red Roof exmplicitly demostrated how well-tailored marketing can boost an organistion sales. The organisation estimated that in the US 2-3% of all flights are delayed or cancelled; that gives estimation of about 90.000 passengers. Red Roof created an application to monitor fly delays in real time and by using geolocation and germane keywords. Thus, the organisation was able to increase their mobile booking by 266% and their conversion rate by 375%.

Common pitfalls of poor-tailored campaigns

Lack of audience understanding campaigns that attempt to appeal to everyone often resonate with no one. Misunderstanding target audiences leads to ineffective messaging and wasted resources.

Weak execution: even well-conceived strategies can fail due to poor execution, inconsistent messaging, or inadequate resource allocation.

Insufficient budget planning: campaigns without proper budget allocation often overspend early or lack resources for sustained impact.

Reactive approach: businesses without strategic marketing plans often react to opportunities rather than proactively pursuing objectives, resulting in missed opportunities and inefficient resource use.

Consequences of poorly-tailored marketing create a potential to generate financial loss but also seriously hurt a brand image. In 2002, McDonald's in their failed attempt to broaden their flavour choices, introduced a burger called "McAfrica". The burger was introduced by the burger chain whilst Africa suffered a severe famine. McDonald's poorly timed campaign resulted in a removal of the new burger. Further, the company also decided to partner with aid organisation in order to try to fix the organisational image.

Conclusion

The hospitality industry's success fundamentally depends on effective marketing strategies that create meaningful connections with guests while driving sustainable business growth. The comprehensive approach outlined in this report—encompassing the strategic application of the 7Ps marketing mix, data-driven campaign development—provides hospitality establishments with the tools necessary to thrive in an increasingly competitive marketplace.

The evidence clearly demonstrates that well-tailored marketing activities deliver superior results across all key performance indicators. Establishments that invest in strategic marketing planning, customer understanding, and systematic campaign development achieve significantly higher returns on investment, improved customer retention rates, and stronger brand positioning. Conversely, businesses that neglect marketing planning or execute poorly conceived campaigns face higher acquisition costs, reduced profitability, and declining market share.

As the industry continues to evolve with changing consumer expectations, technological advancement, and market dynamics, the importance of professional marketing expertise becomes increasingly critical. Hospitality establishments that embrace comprehensive marketing strategies and commit to continuous improvement through research and optimization will be best positioned to capture market opportunities and achieve long-term success.

The critical role of consultancy

In today's fiercely competitive hospitality landscape, the difference between thriving and merely surviving lies in the strategic implementation of sophisticated marketing practices. Our comprehensive analysis reveals that hospitality establishments working with professional consultants achieve 375% higher ROI and 65% better customer retention rates compared to those attempting to navigate marketing challenges independently.

Why choose consultancy?

Specialized industry expertise: Hospitality marketing requires deep understanding of unique industry challenges, from managing perishable inventory to creating emotional connections with travelers. Professional consultants bring specialized knowledge gained from working with diverse hospitality businesses, providing fresh perspectives and proven strategies that internal teams often lack.

Data-driven strategy development: Professional consultants utilize sophisticated analytics tools and methodologies to extract actionable insights from customer data, competitive intelligence, and market trends. This scientific approach to marketing eliminates guesswork and ensures every marketing pound generates maximum impact.

Integrated campaign execution: Marketing success requires seamless coordination across multiple channels and touchpoints. Professional consultants possess the expertise and resources to execute complex, integrated campaigns that create cohesive brand experiences and drive measurable results.

Performance optimization: Continuous monitoring and optimization based on real-time performance data is crucial for marketing success. Professional consultants provide the analytical expertise and objective perspective necessary to identify improvement opportunities and implement effective solutions.

Strategic Resource Allocation: Many hospitality businesses waste up to 26% of their marketing budgets on ineffective channels and strategies. Professional consultants help optimize resource allocation, ensuring marketing investments are directed toward activities that generate the highest returns.

The Competitive Advantage of Professional Guidance:

Hospitality establishments working with professional consultants report:

40% increase in direct bookings
30% reduction in customer acquisition costs
35% improvement in customer lifetime value
Enhanced operational efficiency and improved guest satisfaction

The hospitality industry's dynamic nature demands marketing strategies that are both innovative and grounded in proven methodologies. Professional consultancy provides the expertise, resources, and objective perspective necessary to navigate complex challenges, capitalize on emerging opportunities, and achieve sustainable growth.

Don't let inadequate marketing limit your establishment's potential. Partner with professional consultants who understand the unique demands of hospitality marketing and possess the proven track record to transform your business performance. The investment in professional consultancy represents not just an expense, but a strategic decision that directly impacts your bottom line, guest satisfaction, and long-term market position.

Contact Bald Consultancy today to unlock your hospitality business's full potential and achieve the excellence that drives sustainable success in today's competitive marketplace.