The Role of Marketing Basics Section SiSj^J Glencoe Marketing Series: I III. Marketing Hospitality I 8.The Marketing I I ©The McGraw-Hill Hospitality and Tourism and Tourism Environment Companies, 2006 Glencoe Marketing Series: I III. Marketing Hospitality I 8. The Marketing I I © The McGraw-Hill Hospitality and Tourism and Tourism Environment Companies, 2006 166 Unit 3 Marketing Hospitality & Tourism AS YOU READ ... YOU WILL LEARN To describe the marketing process. · To explain the elements of the basic marketing mix. · To identify the components of product utility. WHY IT'S IMPORTANT Understanding the marketing process and the elements of the marketing mix provides a foundation for successful hospitality and tourism businesses. KEY TERMS · marketing · distribution · marketing concept · target market marketing mix · utility PREDICT Describe in your own words what is involved in the marketing process. marketing the process of developing, promoting, and distributing products, or goods and services, to satisfy customers' needs and wants distribution the process of getting the product to the consumer What Is Marketing? M arketing is the process of developing, promoting, and distributing products, or goods and services, to satisfy customers' needs and wants. Consumers have thousands of choices when it comes to choosing one product over another. Why go to one restaurant or hotel instead of another one? Convincing people to buy and use a product is the goal of marketing. The Marketing Process D eveloping new products and services involves studying consumer behavior and looking at trends as well as gaps in the market to be filled by a new product. Therefore, the marketing process begins with understanding what product consumers need or want through market research, making consumers aware of it through promotion, and then making it available through distribution. Market Research Using tools designed to discover buyers' needs, product developers conduct extensive market research before, during, and after the product-development phase. If you have ever completed a product survey or answered questions asked by a telemarketer, you have participated in market research. Promoting Products Before a product exists, there is a need for the product felt by enough people to cause it to be developed. When the product is created and becomes available, marketers must promote it. This involves making people aware of the product and demonstrating the value of the product so they will buy it. Product promotion activities can involve simple advertising in newspapers, on radio, and on television. Other promotional activities can be more complex, such as launching a product with celebrity endorsers and elaborate giveaways. Distributing Products Getting a product or service to the market involves retail outlets, such as travel agencies, restaurants, or the Internet. People order a hospitality or tourism product online or over the phone. Th ...

1. The Role of Marketing Basics
Section SiSj^J
Glencoe Marketing Series: I III. Marketing Hospitality I
8.The Marketing I I ©The McGraw-Hill
Hospitality and Tourism and Tourism Environment
Companies, 2006
Glencoe Marketing Series: I III. Marketing Hospitality I 8.
The Marketing I I © The McGraw-Hill
Hospitality and Tourism and Tourism Environment
Companies, 2006
166 Unit 3 Marketing Hospitality & Tourism
AS YOU READ ...
YOU WILL LEARN
To describe the marketing process.
· To explain the elements of the basic marketing mix.
· To identify the components of product utility.
WHY IT'S IMPORTANT Understanding the marketing process
and the elements of the marketing mix provides a foundation for
successful hospitality and tourism businesses.
KEY TERMS
· marketing
· distribution
· marketing concept
· target market marketing mix
· utility

2. PREDICT
Describe in your own words what is involved in the marketing
process.
marketing the process of developing, promoting, and
distributing products, or goods and services, to satisfy
customers' needs and wants
distribution the process of getting the product to the consumer
What Is Marketing?
M
arketing is the process of developing, promoting, and
distributing products, or goods and services, to satisfy
customers' needs and wants. Consumers have thousands of
choices when it comes to choosing one product over another.
Why go to one restaurant or hotel instead of another one?
Convincing people to buy and use a product is the goal of
marketing.
The Marketing Process
D
eveloping new products and services involves studying
consumer behavior and looking at trends as well as gaps in the
market to be filled by a new product. Therefore, the marketing
process begins with understanding what product consumers need
or want through market research, making consumers aware of it
through promotion, and then making it available through
distribution.
Market Research
Using tools designed to discover buyers' needs, product
developers conduct extensive market research before, during,
and after the product-development phase. If you have ever
completed a product survey or answered questions asked by a
telemarketer, you have participated in market research.
Promoting Products
Before a product exists, there is a need for the product felt by
enough people to cause it to be developed. When the product is

3. created and becomes available, marketers must promote it. This
involves making people aware of the product and demonstrating
the value of the product so they will buy it. Product promotion
activities can involve simple advertising in newspapers, on
radio, and on television. Other promotional activities can be
more complex, such as launching a product with celebrity
endorsers and elaborate giveaways.
Distributing Products
Getting a product or service to the market involves retail
outlets, such as travel agencies, restaurants, or the Internet.
People order a hospitality or tourism product online or over the
phone. These products are often pictured in magazines or
featured on a Web site. These "places" are considered as
channels of distribution. Distribution is the process of getting
the product to the consumer.
Glencoe Marketing Series: I III. Marketing Hospitality I
8.The Marketing I I ©The McGraw-Hill
Hospitality and Tourism and Tourism Environment
Companies, 2006
Glencoe Marketing Series: I III. Marketing Hospitality I 8.
The Marketing I I © The McGraw-Hill
Hospitality and Tourism and Tourism Environment
Companies, 2006
166 Unit 3 Marketing Hospitality & Tourism
The Marketing Concept
T
he driving force behind the marketing concept is the customer.
The marketing concept is the idea that an organization needs to
satisfy its customers while also trying to reach its organization's
goals. In recent years, most successful businesses have
embraced the concept that meeting the needs of their clients is
the most important business activity for meeting business goals.
Delivering products, or goods and services, that consumers want
and need and doing it effectively lead to success and consumer

4. loyalty.
The Market
Any group of potential buyers is a market. Senior citizens are a
market, as are teenagers, honeymooners, travelers with
disabilities, single parents, adults, grandparents, and almost any
other group you can imagine. The common denominator in any
group, or market, is sharing a common need. Businesses trying
to sell their products and services must identify the specific
groups, or target markets, that are likely to buy them. A target
market is a specific group of consumers that an organization
selects as the focus of its marketing plan.
£023^
—H CULTURAL TOURISM As part of product development,
marketers research and watch trends. A 2003 study by the
Travel Industry Association of America (TIA) and the
Smithsonian magazine shows a growing trend toward tourism
focused on cultural, arts, historic, and heritage activities. In
fact, 81 percent of adult tourists in the United States are
historic/cultural travelers.
The Marketing Mix
A
t the heart of marketing and the marketing concept is the
marketing mix, which is a combination of four basic marketing
strategies, known as the four Ps:
• Product
· Price
· Place
· Promotion
This marketing mix is used when businesses make plans for
marketing products. (See Figure 8.1 on page 168.) Businesses
must make decisions about what product to sell, where to sell it,
what price to charge for it, and how the product information
will be communicated to the public.

5. marketing concept the idea that an organization needs to satisfy
its customers while also trying to reach its organization's goals
target market a specific group of consumers that an organization
selects as the focus of its marketing plan
marketing mix a combination of four basic marketing strategies,
known as the four Ps—product, price, place, and promotion
Glencoe Marketing Series: I III. Marketing Hospitality I 8.
The Marketing I I © The McGraw-Hill
Hospitality and Tourism and Tourism Environment
Companies, 2006
Product Decisions
Product decisions can include choosing a name for a product,
such as choosing a name for a restaurant, and how to package or
design the product. But that is not all. Due to the intangible
nature of some products, such as travel, marketers must first ask
what they are marketing. Are they selling dreams of exotic
destinations and wild adventures? Is the product an extravagant
cruise to the islands of the South Pacific or a Whitewater rafting
trip down the Snake River? Will guests be pampered with
luxury or go bargain shopping at local craft markets? Is the
package considered quality or affordable—or both? Is the
product a specialty item or can it be mass produced? The
answers to these questions will determine the strategies used in
the marketing plan, discussed in Section 8.2.

6. CONNECT
What restaurant do you think has offered a new product wanted
by consumers?
Chapter 8 The Marketing Environment 167
THE
Electronic
CHANNEL
Listing Last Minute
Lastminute.com is a resource for saving on flights, hotels, and
cars for travelers booking just before they travel. Vendors,
airlines, and hotels often have space available at the last
minute. To sell these rooms and seats, the site offers them at
discounted prices to people booking online—at the last minute.
Eurostar, the train operating in the English Channel tunnel
between continental Europe and England, is included in the Web
site's packaging strategy. Customers searching for flights
between London, Paris, or Brussels will automatically be given
prices for the Eurostar train.
b^Find and list other examples of packaging through
marketingseries.glencoe.com.
Price Decisions
What the consumer is able and willing to pay is often the first
consideration when determining price. To determine price,
marketers focus on prices for similar products, marketing costs,
costs to produce the product, and value to the consumer. These
are just a few of the factors for determining a price for a
product.
Place Decisions
The next component of the marketing mix is distribution, or
place. Marketers consider where consumers shop for similar
products. Will the target market use the Internet to make travel
plans? Will the target market go to a restaurant that has high
prices or low-fat menu items? Understanding the target market

7. and where those consumers shop help shape the decisions about
distribution. If the product requires personalized service and
customization, then the product should be placed where trained
sales associates are available to answer questions and influence
buying decisions.
Promotion Decisions
Selecting the message and the type of media outlet to use to get
the product message out are promotion decisions. What is the
best medium to communicate a business's image? Product
promotion can include any mix of advertising, sales promotion,
personal sales pitches, and publicity. Promotion must also take
into consideration who will use that product. What does the
customer need or want from the product? Marketers choose the
best method to communicate to the consumer how and why the
product meets those needs.
Glencoe Marketing Series: I III. Marketing Hospitality I 8.
The Marketing I I © The McGraw-Hill
Hospitality and Tourism and Tourism Environment
Companies, 2006
marketingseries.gtencoe.com
168 Unit 3 Marketing Hospitality & Tourism
Figure 8.1
(
The Marketing Mix
PURPOSE TO SELL Any combination of one or all of the four
marketing components can create a marketing mix.
Which component of the marketing mix is basic to the
marketing concept?
)
Section
Hospitality & Tourism Products

8. ^
Glencoe Marketing Series: I III. Marketing Hospitality I 10.
Designing Products I I ©The McGraw-Hill 206
Hospitality and Tourism and Tourism Companies, 2006
206206 Unit 3 Marketing Hospitality & Tourism
AS YOU READ ...
YOU WILL LEARN
· To explain the difference between goods and services.
· To identify the levels of hospitality and tourism products.
· To describe the product mix.
WHY IT'S IMPORTANT Understanding the difference between
core products and facilitating or supporting products is
important for developing a good product mix for your business.
KEY TERMS
· products
· core product facilitating products
· supporting products
· product mix
PREDICT
Describe in your own words the difference between goods and
services.
products goods and sendees that have monetary value
Defining Products
H
ospitality and tourism products, like products in other
industries, are both goods and services that have monetary
value. Goods are tangible items that you can touch, smell, see,

9. or taste, such as a hotel room, a hamburger, or a rental car.
Services are intangible things that people do for each other.
Goods and Services
In hospitality and tourism, goods and services are often
intertwined. For example, most state and national tourism
offices provide service in the form of information. This
information includes details on immunizations or documents
required when visiting another country. They may also provide
tangible goods such as informational brochures and maps.
Travel agents sell travel products, such as air transportation and
accommodations, but they also sell services. These services may
include finding the least expensive airfare or the most luxurious
hotel suite.
Goods and Services Continuum
It is helpful to consider the hospitality and tourism mix of
goods and services on a continuum, or spectrum. (See Figure
10.1.) At one end of the horizontal spectrum Is pure service; at
the other end are tangible goods. Tourism offices would be near
the service end of the continuum. Fast-food restaurants, which
provide mostly goods with minimal service, would be near the
goods end of the continuum. Destination resorts would be in the
middle because they provide goods and services equally.
Nature of Services
Services are difficult to sample before buying and involve
experience, emotion, and memory. In general, services are
actions performed by one or more people for the benefit of
others. For example, a spa treatment is a good example of a
hospitality service. The process and environment for a spa
treatment are as important as the creams, lotions, and loofas
used in the treatment itself. The goals of a spa treatment are to
relax and rejuvenate. Treatment rooms are decorated in muted
colors and textures. Background music is soft and soothing. The
air is scented and the temperature controlled. It is hard to

10. describe a spa service without referring to its experience. The
customer has no tangible evidence of his or her purchase, except
for a healthful appearance. However, he or she has benefited
from and has a memory of the experience.
Glencoe Marketing Series: I III. Marketing Hospitality I 10.
Designing Products I I ©The McGraw-Hill
Hospitality and Tourism and Tourism Companies, 2006
206 Unit 3 Marketing Hospitality & Tourism
Figure 10.1
Continuum of Goods and Services
Glencoe Marketing Series: i III. Marketing Hospitality I 10.
Designing Products 207 I © The McGraw-Hill
Hospitality and Tourism and Tourism Companies, 2008
(
Hospitality & Tourism Products
Brochures/maps Food
Car for rent Room
)SERVICES
Travel information Serving food Transportation Booking
reservations Tours
Entertainment
MIXING GOODS AND SERVICES Many businesses in the
hospitality and tourism industries focus on services, but goods
are also part of the mix. Do travel agents offer more goods or
services? Give examples.
Glencoe Marketing Series: i III. Marketing Hospitality I 10.
Designing Products I I © The McGraw-Hill
Hospitality and Tourism and Tourism Companies, 2008
Variety of Products

11. Glencoe Marketing Series: i III. Marketing Hospitality I 10.
Designing Products I I © The McGraw-Hill
Hospitality and Tourism and Tourism Companies, 2008
W
ithin the hospitality and tourism industries, there are hundreds
of goods and services. These goods and services can be sold as
stand-alone products or combined with other goods and services
to create a package.
Hospitality Products
Hospitality products include both lodging and food-service
establishments. Lodging properties can include hotels, motels,
cottages, bed-and-breakfasts inns, resorts, and casinos. Food
service can Include fast-food restaurants, fine-dining
establishments, bistros, snack bars, food courts, concession
stands, and catering firms.
Tourism and Transportation Products
Tourism industries include transportation vendors for airlines,
cruise lines, rail, auto, and motor-coach travel. Transportation
is a critical element of a tour package. Cruise lines, for
example, provide transportation, accommodations, food service,
entertainment, and recreation. Car rentals can be combined with
air travel and hotel rooms for a fly-drive package to any
destination.
-% TRANSPORTATION DOLLARS
Travelers spend billions of dollars each year on public
transportation and auto transportation— almost $164 billion
annually.
Product Levels
T

12. here are several levels of products. At the heart of any good or
service is the core product, or the main product that the
customer is buying. For example, a customer who books a night
at a bed-and-break-fast inn is buying a core product—a bed in
which to sleep and breakfast to eat in the morning. Additional
goods and services may accompany the core product, such as
facilitating products and supporting products.
Facilitating Products
Facilitating products are goods or services that aid the use of
the core product. At a lodging property, facilitating products
include parking facilities, public telephones, and check-cashing
services.
core product the main product that the customer is buying
facilitating products goods or services that aid the use of the
core product
CONNECT
What one facilitating product would you want when booking a
hotel?
Chapter 10 Designing Products 207
Glencoe Marketing Series: Hospitality and Tourism
III. Marketing Hospitality and Tourism 10. Designing Products
© The McGraw-Hill Companies, 2006
208
marketingseries.glencoe.com
208 Unit 3 Marketing Hospitality & Tourism
THE

13. Electronic
CHANNEL
High Wi-Fi
In May 2004, Lufthansa Airlines passengers from Munich,
Germany, to Los Angeles, California, became the first to
connect in-air to the Internet using high-speed broadband.
Passengers with wireless laptops could access the Internet from
their seats using the FlyNet service.
ta^Find and list other airlines developing in-flight Internet
service through marketingseries.glencoe.com.
Supporting Products
Other products besides the core product and facilitating
products are called supporting products. Supporting products
are extra goods or services that accompany the core product to
add value or to differentiate it from the competition. For
example, at a bed-and-breakfast inn, supporting products may
include afternoon tea, a hosted social hour, turn-down service,
and luxurious towels and linens. In some cases, guests will stay
at or return to a hospitality or tourism establishment due to
special supporting products.
Identifying Products
Sometimes it is difficult to distinguish between facilitating and
supporting products. For example, consider high-speed Internet
or wireless Internet access as a service. In a hotel that caters to
business travelers, this service may be considered a facilitating
product because it allows guests to do business while traveling.
However, for a bed-and-breakfast establishment, the service
might be considered a supporting product because the service
helps differentiate the facility from com-petiting bed-and-
breakfast inns that do not offer Internet access to their guests.
ifwfklj jrf msr S >mJ ^ tew* — Ml jt

14. The Complete Package
In 1918, Jack Collette began
© v ?clalteiII^ t0 offer tours t0 Florida from a Greyhound
terminal in
Boston. By 1927, his business expanded beyond Greyhound to
partnerships with other motor-coach businesses. Dan Sullivan, a
bus-line manager and Collette's friend, bought into the company
in 1962 and brought his family on board. Under their
leadership, Collette Vacations grew during the 1960s, expanded
to Europe in the 1970s, and went global by the 1990s.
INSPIRED TOURS
Leaving the bus terminal behind, the tour company found many
ways to provide travelers with unique experiences. The
company formed multiple strategic partnerships to create unique
vacations for people with special interests. In one partnership,
Collette worked with the
Smithsonian Institution to develop special learning vacations.
Collette also joined with A&E television networks to offer
vacations that matched programming on A&E, Biography, and
The History Channel. For example, The D-Day Battle of the
Bulge: Normandy to Berlin tour took visitors to famous battle
sites in Europe, mirroring the content of D-Day documentaries
on The History Channel.
It takes more than fascinating scenery and exotic locations to
make a great tour. Top tour agencies such as Collette Vacations
apply expert planning, experience, and imagination.
1. Classify the products offered by Collette Vacations.
2. Describe how Collette designed its hospitality and tourism
products.
3.