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Copyright, ii
To the Student, xv
Preface, xxi
About the Authors, xxiii
Part I. Understanding the Hospitality and Tourism Marketing Process, 1
Chapter 1. Introduction: Marketing for Hospitality and Tourism, 2
Your Passport to Success, 5
Customer Orientation, 7
What Is Hospitality and Tourism Marketing?, 8
Marketing in the Hospitality Industry, 10
Importance of Marketing, 10
Tourism Marketing, 10
Marketing Highlight 1-1, 11
Definition of Marketing, 11
The Marketing Process, 11
Understanding the Marketplace and Customer Needs, 12
Customer Needs, Wants, and Demands, 12
Market Offerings: Tangible Products, Services, and Experiences, 13
Customer Value and Satisfaction, 13
Exchanges and Relationships, 14
Markets, 16
Designing Customer-Driven Marketing Strategy, 16
Selecting Customers to Serve, 16
Marketing Management Orientations, 16
Preparing an Integrated Marketing Plan, 20
Building Profitable Customer Relationships, 21
Customer Relationship Management, 22
The Changing Nature of Customer Relationships, 23
Capturing Value from Customers, 23
Customer Loyalty and Retention, 23
Growing Share of Customer, 24
Building Customer Equity, 25
Marketing’s Future, 25
Web Site, 25
Key Terms, 26
Chapter Review, 27
Discussion Questions, 29
Experiential Exercises, 29
Internet Exercises, 29
References, 30
Chapter 2. Service Characteristics of Hospitality and Tourism Marketing, 32
The Service Culture, 34
Characteristics of Service Marketing, 35
Intangibility, 35
Inseparability, 36
Variability, 37
Perishability, 39
Management Strategies for Service Businesses, 39
Managing Differentiation, 41
Managing Service Quality, 41
Resolving Customer Complaints, 42
Marketing Highlight 2-1: Recommendations for Improving Service Quality, 43
Tangibilizing the Product, 44
Marketing Highlight 2-2: Jetblue Excels at Service Recovery, 45
Managing Employees as Part of the Product, 46
Managing Perceived Risk, 47
Managing Capacity and Demand, 47
Key Terms, 53
Chapter Review, 53
Discussion Questions, 54
Experiential Exercises, 54
Internet Exercises, 54
References, 54
Chapter 3. The Role of Marketing in Strategic Planning, 56
Nature of High-Performance Business, 59
Stakeholders, 59
Processes, 59
Resources, 60
Organization, 60
Corporate Strategic Planning: Defining Marketing’s Role, 61
Defining the Corporate Mission, 62
Setting Company Objectives and Goals, 63
Designing the Business Portfolio, 64
Marketing Highlight 3-1: Starbucks Coffee: Where Growth Is Really Perking, 66
Marketing Strategy and the Marketing Mix, 68
Customer-Driven Marketing Strategy, 69
Developing an Integrated Marketing Mix, 70
Managing the Marketing Effort, 71
Marketing Analysis, 71
Goal Formulation, 74
Market Planning, 76
Implementation, 76
Feedback and Control, 76
Unique Challenges of the Hotel Industry, 77
Key Terms, 78
Chapter Review, 78
Discussion Questions, 80
Experiential Exercises, 80
Internet Exercises, 80
References, 81
Part II. Developing Hospitality and Tourism Marketing Opportunities and Strategies, 83
Chapter 4. The Marketing Environment, 84
The Company’s Microenvironment, 86
The Company, 86
Existing Competitors, 87
Suppliers, 88
Marketing Intermediaries, 89
Customers, 91
Publics, 91
The Company’s Macroenvironment, 92
Future Competitors, 92
Demographic Environment, 93
Economic Environment, 97
Natural Environment, 98
Technological Environment, 99
Political Environment, 101
Marketing Highlight 4-1: Hostile Environment, 102
Cultural Environment, 104
Linked Environmental Factors, 104
Responding to the Marketing Environment, 105
Using Information About the Marketing Environment, 107
Key Terms, 107
Chapter Review, 108
Discussion Questions, 108
Experiential Exercises, 109
Internet Exercises, 109
References, 109
Chapter 5. Marketing Information Systems and Marketing Research, 112
Marketing Information and Customer Insights, 114
The Marketing Information System, 115
Assessing Information Needs, 116
Developing Information, 116
Marketing Intelligence, 122
Marketing Highlight 5-1: Marketing Dashboards, 124
Marketing Research, 124
Defining the Problem and Research Objectives, 125
Developing the Research Plan, 126
Marketing Highlight 5-2: Pros and Cons of Online Research, 131
Marketing Highlight 5-3: A “Questionable” Questionnaire, 135
Implementing the Research Plan, 138
Interpreting and Reporting the Findings, 138
Marketing Highlight 5-4: Research Problem Areas, 139
International Marketing Research, 140
Marketing Highlight 5-5: HSMAI’s eConnect: A Great Source of Marketing Information, 141
Marketing Research in Smaller Organizations, 142
Key Terms, 143
Chapter Review, 143
Discussion Questions, 144
Experiential Exercises, 145
Internet Exercises, 145
References, 145
Chapter 6. Consumer Markets and Consumer Buying Behavior, 148
A Model of Consumer Behavior, 150
Personal Characteristics Affecting Consumer Behavior, 151
Cultural Factors, 151
Social Factors, 154
Personal Factors, 156
Marketing Highlight 6-1: The San Diego Padres Baseball Club, 160
Psychological Factors, 161
The Buyer Decision Process, 164
Need Recognition, 164
Information Search, 165
Evaluation of Alternatives, 166
Purchase Decision, 167
Postpurchase Behavior, 167
Marketing Highlight 6-2: Unique Aspects of Hospitality and Travel Consumers, 168
Key Terms, 169
Chapter Review, 169
Discussion Questions, 170
Experiential Exercises, 171
Internet Exercise, 171
References, 171
Chapter 7. Organizational Buyer Behavior of Group Market, 174
The Organizational Buying Process, 176
Market Structure and Demand, 176
Types of Decisions and the Decision Process, 177
Participants in the Organizational Buying Process, 177
Major Influences on Organizational Buyers, 178
Environmental Factors, 178
Organizational Factors, 178
Interpersonal Factors, 179
Individual Factors, 179
Organizational Buying Decisions, 179
1. Problem Recognition, 179
2. General Need Description, 180
3. Product Specification, 180
4. Supplier Search, 180
5. Proposal Solicitations, 180
6. Supplier Selection, 180
7. Order-Routine Specification, 181
8. Performance Review, 181
Group Business Markets, 181
Conventions, 182
Association Meetings, 183
Corporate Meetings, 184
Incentive Travel, 185
Marketing Highlight 7-1: Green Meetings: The Right Thing to Do for the Environment and Business, 186
SMERFs, 187
Segmentation of Group Markets by Purpose of the Meeting, 188
Restaurants as a Meeting Venue, 188
Dealing with Meeting Planners, 189
The Corporate Account and Corporate Travel Manager, 191
Key Terms, 192
Chapter Review, 193
Discussion Questions, 193
Experiential Exercise, 194
Internet Exercise, 194
References, 194
Chapter 8. Market Segmentation, Targeting, and Positioning, 196
Markets, 199
Market Segmentation, 199
Geographic Segmentation, 199
Demographic Segmentation, 202
Gender, 202
Marketing Highlight 8-1: Targeting Families by Targeting Kids, 203
Psychographic Segmentation, 204
Behavioral Segmentation, 206
Marketing Highlight 8-2: The VFR Traveler Segment, 207
Requirements for Effective Segmentation, 209
Market Targeting, 210
Evaluating Market Segments, 210
Selecting Market Segments, 211
Choosing a Market-Coverage Strategy, 212
Market Positioning, 213
Positioning Strategies, 213
Choosing and Implementing a Positioning Strategy, 214
Product Differentiation, 215
Selecting the Right Competitive Advantages, 218
Communicating and Delivering the Chosen Position, 220
Positioning Measurement: Perceptual Mapping, 220
Marketing Highlight 8-3: Positioning in the Hospitality Industry, 221
Key Terms, 222
Chapter Review, 223
Discussion Questions, 224
Experiential Exercise, 224
Internet Exercise, 224
References, 225
Part III. Developing the Hospitality and Tourism Marketing Mix, 227
Chapter 9. Designing and Managing Products, 228
What Is a Product?, 230
Product Levels, 231
Core Products, 231
Facilitating Products, 231
Supporting Products, 232
Augmented Product, 233
Brand Decisions, 239
The Role of Brands, 240
The Scope of Branding, 241
Defining Brand Equity, 241
Brand Equity as a Bridge, 242
Multi-Branding, 242
Co-Branding, 244
New Product Development, 244
Idea Generation, 245
Idea Screening, 248
Concept Development and Testing, 248
Product Concept, 250
Marketing Strategy, 252
Business Analysis, 252
Product Development, 252
Test Marketing, 253
Marketing Highlight 9-1: The National Food Laboratory Helps Restaurants Develop New Products and Improve Existing Products, 254
Commercialization, 255
Product Development Through Acquisition, 255
Product Life-Cycle Strategies, 256
Introduction Stage, 257
Growth Stage, 258
Maturity Stage, 258
Decline Stage, 259
Product Deletion, 260
Key Terms, 261
Chapter Review, 262
Discussion Questions, 263
Experiential Exercises, 263
Internet Exercise, 263
References, 264
Chapter 10. Internal Marketing, 266
Internal Marketing, 268
Marketing Highlight 10-1: Pinehurst Resort & Country Club “Do What’s Right”, 269
The Internal Marketing Process, 269
Establishment of a Service Culture, 270
Development of a Marketing Approach to Human Resources Management, 274
Dissemination of Marketing Information to Employees, 281
Marketing Highlight 10-2: Internal Marketing in Action: Lewis Hotels, 282
Employee Involvement in Product Selection, 283
Key Terms, 284
Chapter Review, 285
Discussion Questions, 285
Experiential Exercise, 285
Internet Exercise, 285
References, 286
Chapter 11. Pricing Products: Pricing Considerations, Approaches, and Strategy, 288
Price, 291
Factors to Consider When Setting Prices, 291
Internal Factors Affecting Pricing Decisions, 292
External Factors Affecting Pricing Decisions, 295
Competitors’ Prices and Offers, 302
General Pricing Approaches, 303
Cost-Based Pricing, 303
Break-Even Analysis and Target Profit Pricing, 304
Value-Based Pricing, 305
Competition-Based Pricing, 306
Pricing Strategies, 306
New Product Pricing Strategies, 306
Existing-Product Pricing Strategies, 307
Marketing Highlight 11-1: Segmented Pricing: The Right Product to the Right Customer at the Right Time for the Right Price, 311
Psychological Pricing, 315
Other Pricing Considerations, 317
Price Spread Effect, 317
Price Changes, 318
Initiating Price Changes, 318
Marketing Highlight 11-2: The Internet Makes It Easy for Customers to Find Price Information, 320
Responding to Price Changes, 321
Key Terms, 321
Chapter Review, 321
Discussion Questions, 323
Experiential Exercise, 323
Internet Exercise, 324
References, 324
Chapter 12. Distribution Channels, 326
Supply Chains and the Value Delivery Network, 328
Nature and Importance of Distribution Systems, 328
Nature of Distribution Channels, 329
Why Are Marketing Intermediaries Used?, 329
Distribution Channel Functions, 330
Number of Channel Levels, 331
Marketing Intermediaries, 332
Travel Agents, 332
Tour Wholesalers, 333
Specialists: Tour Brokers, Motivational Houses, and Junket Reps, 333
Hotel Representatives, 334
National, State, and Local Tourist Agencies, 334
Consortia and Reservation Systems, 335
Internet, 336
Concierges, 339
Channel Behavior and the Organization, 339
Channel Behavior, 339
Channel Organization, 340
Selecting Channel Members, 345
Marketing Highlight 12-1: Restaurant Franchising, 346
Customer Needs, 347
Attracting Channel Members, 347
Evaluating Major Channel Alternatives, 347
Responsibilities of Channel Members and Suppliers, 349
Business Location, 349
Key Terms, 351
Chapter Review, 352
Discussion Questions, 353
Experiential Exercise, 353
Internet Exercise, 353
References, 353
Chapter 13. Promoting Products: Communication and Promotion Policy and Advertising, 356
The Promotion Mix, 358
Integrated Marketing Communications, 359
The New Marketing Communications Landscape, 359
The Shifting Marketing Communications Model, 359
The Need for Integrated Marketing Communications, 360
Steps in Developing Effective Communications, 362
Identifying the Target Audience, 362
Determining the Communication Objective, 362
Marketing Highlight 13-1: Burger King’s Advertising Target: Whopper-Wolfing Consumers, 363
Designing the Message, 365
Selecting Communication Channels, 368
Marketing Highlight 13-2: Thank You—a Great Personal Communication, 370
Selecting the Message Source, 370
Marketing Highlight 13-3: Jetblue Uses Customers as a Credible Source to Deliver Messages: http://www.jetblue.com/experience, 371
Measuring the Results of the Communication, 372
Establishing the Total Marketing Communications Budget, 372
Affordable Method, 373
Percentage of Sales Method, 373
Competitive Parity Method, 374
Objective and Task Method, 374
Managing and Coordinating Integrated Marketing Communications, 374
Nature of Each Promotion Tool, 374
Factors in Setting the Promotion Mix, 376
Marketing Highlight 13-4: How Does an Advertising Agency Work?, 378
Advertising, 378
Major Decisions in Advertising, 379
Setting the Objectives, 379
Setting the Advertising Budget, 381
Message Decisions, 382
Media Decisions, 385
Campaign Evaluation, 388
Key Terms, 389
Chapter Review, 389
Discussion Questions, 391
Experiential Exercise, 392
Internet Exercise, 392
References, 392
Chapter 14. Promoting Products: Public Relations and Sales Promotion, 394
Public Relations, 396
Major Activities of PR Departments, 396
Press Relations, 396
Marketing Highlight 14-1: Taco Bell Provided Example of Creative Publicity, 397
Product Publicity, 397
Corporate Communication, 397
Lobbying, 397
Counseling, 397
Publicity, 398
Marketing Highlight 14-2: A Creative Example of Publicity from Casino Mogul Steve Wynn, 400
The Public Relations Process, 400
Research, 401
Establishing the Marketing Objectives, 401
Defining the Target Audience, 402
Choosing the PR Message and Vehicles, 402
Publications, 402
Implementing the Marketing PR Plan, 405
Evaluating PR Results, 405
PR Opportunities for the Hospitality Industry, 406
Individual Properties, 406
Build PR Around the Owner/Operator, 406
Build PR Around Location, 407
Build PR Around a Product or Service, 407
Crisis Management, 408
Sales Promotion, 410
Setting Sales Promotion Objectives, 411
Selecting Sales Promotion Tools, 411
Finding Creative Ideas, 415
Developing the Sales Promotion Program, 416
Pretesting and Implementing the Plan, 417
Evaluating the Results, 417
Local Store Marketing, 418
Key Terms, 419
Chapter Review, 420
Discussion Questions, 421
Experiential Exercise, 421
Internet Exercise, 421
References, 421
Chapter 15. Professional Sales, 424
Management of Professional Sales, 427
Nature of Hospitality Sales, 428
Sales Force Objectives, 429
Sales Volume, 430
Upselling and Second-Chance Selling, 430
Market Share or Market Penetration, 431
Product-Specific Objectives, 432
Sales Force Structure and Size, 432
Territorial-Structured Sales Force, 433
Market-Segmented-Structured Sales Force, 434
Market-Channel-Structured Sales Force, 434
Customer-Structured Sales Force, 435
Combination-Structured Sales Force, 435
Sales Force Size, 436
Organizing the Sales Department, 438
Inside Sales Force, 438
Field Sales Force, 439
Team Sales, 440
Relationship Marketing and Strategic Alliances, 441
Recruiting and Training a Professional Sales Force, 442
Importance of Careful Selection, 442
Establishing a Profile of Desired Characteristics Matching the Corporate Culture, 443
Matching Career Acquisitions with Corporate Objectives, 443
Marketing Highlight 15-1: Code of Ethics and Business Conduct, 444
Sales Force Training, 445
Managing the Sales Force, 448
Selecting Sales Strategies, 448
Sales Force Tactics: Principles of Personal Selling, 450
Marketing Highlight 15-2: Identifying and Qualifying Clients Pays off for Cruise Line Salespeople, 452
Motivating a Professional Sales Force, 456
Evaluation and Control of a Professional Sales Force, 457
Key Terms, 461
Chapter Review, 461
Discussion Questions, 463
Experiential Exercise, 463
Internet Exercise, 463
References, 463
Chapter 16. Direct and Online Marketing: Building Customer Relationships, 466
Direct Marketing, 468
Growth and Benefits of Direct Marketing, 468
Customer Databases and Direct Marketing, 472
Database Uses, 472
Marketing Highlight 16-1: Gazelle Systems Brings Database Marketing to Restaurants, 473
Direct Marketing Builds Relationships, 476
Benefits of Customer Relationship Management, 479
Traditional Forms of Direct Marketing, 479
Direct-Mail Marketing, 480
Telephone Marketing, 480
Kiosk Marketing, 481
Digital Direct Marketing Technologies, 481
E-mail, 481
Mobile Phone Marketing, 482
Podcasts and Vodcasts, 483
Interactive TV, 484
Online Marketing, 484
Marketing and the Internet, 484
Online Marketing Domains, 485
Setting up an Online Marketing Presence, 487
The Promise and Challenges of Online Marketing, 492
Key Terms, 493
Chapter Review, 494
Discussion Questions, 495
Experiential Exercise, 495
Internet Exercise, 495
References, 496
Part IV. Managing Hospitality and Tourism Marketing, 499
Chapter 17. Destination Marketing, 500
The Globalization of the Tourist Industry, 502
Importance of Tourism to a Destination’s Economy, 504
The Tourism Destination, 504
Benefits of Tourism, 504
Management of the Tourist Destination, 505
Sustainable Tourism, 506
Tourism Strategies and Investments, 508
Marketing Highlight 17-1: Betting on a New Highway, 509
Tourist Events and Attractions, 510
Attractions, 512
Segmenting and Monitoring the Tourist Market, 516
Agritourism, 518
Space Tourism, 519
Multi-Day Hiking and Religious Pilgrimages, 519
Volunteer Vacationing, 520
Medical Tourism, 520
Identifying Target Markets, 521
Self-Contained Attraction and Event Destinations, 522
Classification of Visitor Segments, 522
Marketing Highlight 17-2: Maryland Office of Tourism Development Case Study, 523
Monitoring the Tourist Markets, 525
Communicating with the Tourist Market, 526
Competition for Visitors Involves Image Making, 526
UNESCO World Heritage Sites, 527
Developing Packages of Attractions and Amenities, 527
Organizing and Managing Tourism Marketing, 529
National Tourism Organizations, 529
Regional Tourist Organizations: State Associations and Convention and Tourist Bureaus, 531
Key Terms, 532
Chapter Review, 532
Discussion Questions, 533
Experiential Exercise, 534
Internet Exercise, 534
References, 534
Chapter 18. Next Year’s Marketing Plan, 536
Purpose of a Marketing Plan, 539
Section I: Executive Summary, 540
Section II: Corporate Connection, 540
Relationship to Other Plans, 540
Marketing-Related Plans, 541
Corporate Direction, 541
Section III: Environmental Analysis and Forecasting, 542
Positioning Statement, 542
Major Environmental Factors, 542
Competitive Analysis, 543
Market Trends, 544
Market Potential, 544
Market Research, 545
Marketing Highlight 18-1: Embassy Suites, 546
Section IV: Segmentation and Targeting, 547
Segmentation Analysis, 547
Market-Segment-Profitability Analysis (MSPA), 547
Targeting, 548
Section V: Next Year’s Objectives and Quotas, 548
Objectives, 548
Rating System Objectives, 551
Quotas, 551
Communicating the Plan, 551
Top Management, 551
Board of Directors or Group of Investors, 552
Subordinates, 552
Vendors, 552
Other Departments, 552
Section VI: Action Plans: Strategies and Tactics, 552
Nonqualified Audience: Cluster Marketing, 553
Sales Strategies, 553
Distribution Strategies, 554
Advertising and Promotion Strategies, 554
Pricing Strategies, 556
Product Strategies, 557
Section VII: Resources Needed to Support Strategies and Meet Objectives, 558
Personnel, 558
Other Monetary Support, 558
Research, Consulting, and Training, 558
Miscellaneous Costs, 559
Budgets, 559
Section VIII: Marketing Control, 559
Sales Objectives, 559
Sales Forecast and Quotas, 560
Expenditures Against Budget, 561
Periodic Evaluation of All Marketing Objectives, 561
Marketing Activity Timetable, 561
Readjustments to Marketing Plan, 561
Section IX: Presenting and Selling the Plan, 561
Section X: Preparing for the Future, 562
Data Collection and Analysis, 562
Marketing Planning as a Tool for Growth, 562
Key Terms, 563
Chapter Review, 563
Discussion Questions, 565
Experiential Exercise, 565
Internet Exercise, 566
References, 566
Appendix A. The Five-Gap Model of Service Quality, 567
Appendix B. Forecasting Market Demand, 571
Case Studies, 579
Glossary, 663
Index, 671

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