Hospitality Marketing Essentials

Hilton Hotels

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Table of Contents

1 Introduction ........................................................................................................................ 3

2 Marketing processes ........................................................................................................... 3

A Situation Analysis ........................................................................................................... 3

B Marketing Strategy.......................................................................................................... 4

C Marketing Mix ................................................................................................................ 5

D Implementation and Control ........................................................................................... 6

4 Significance of interrelationship between marketing and other functional units ............... 6

5 Marketing plan of Hilton Hotels ......................................................................................... 7

6 Conclusion and Recommendations .................................................................................. 10

References ................................................................................................................................ 10

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1 Introduction

Hilton Hotels and resorts are one of the largest brands in the hospitality industry. It was
formerly known as Hilton hotels. In the year 1919 Conard Hilton started the chain of hotels
and in the year 1925 the first hotel was named Dallas Hilton in Texas. It is the flagship brand
of the Hilton which is a multinational hospitality industry based in United States. The Hilton
hotels are providing their services to business travelers and tourists all across the globe. The
hotels are present in all the major cities of the world and currently they are operating in more
than 85 countries with 586 branches all over the world (Hilton, 2019). The Hilton hotel not
only provides luxurious services but they also offer a range of pocket-friendly rooms and
accommodation for the students and leisure travelers. The hotels possess more than 6000
properties worldwide with 954,000 room in 117 territories (Hilton, 2018). This is a great
achievement and the company is maintaining its top position in terms of growth in the last four
consecutive years.

This report presents the marketing campaign, marketing processes and roles and
responsibilities of the marketing function in the expansion of the hotel business and to establish
its branch in the UK.

2 Marketing processes

The marketing process is a way of using methods that analyze the opportunities that exist in a
market, the process involves the selection of the target markets, development of the marketing
mix, management, and control of the marketing efforts and activities (NetMba, 2019).
Basically the marketing process can be divided into 4 major steps:

A Situation Analysis

The first and most important step in the marketing process is the situation analysis which
requires a detailed analysis of the opportunities that are present in the selected market as well
as the weaknesses and strengths of the market. It requires the macro and microanalysis of the
external environment of the business in order to find the right opportunities for the growth and
success of the company as well as the negative factors that might influence the business. There
are various methods to conduct the market or situation analysis such as 5 Cs, SWOT and
PSETEL Analysis, etc.

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B Marketing Strategy

The next most important step in the marketing strategy is the market segmentation and selection
of the target market. It is rare that the market campaign can cover the entire market and serves
the purpose of the generic or overall market. Therefore it is extremely important that companies
select the target audience or target market for the business. This is mainly important to
understand the customers and their needs. By considering the factors of market segmentation
such as lifestyles, attitudes, and behavior of the customers the company develops the marketing
campaign that is most suitable for the audience. The key areas or elements of the market
strategy include the following:

 Market segmentation

Market segmentation is the process of dividing the market into various segments or groups
according to the similarities found in the customers (Qualtrics, 2019). The marketers define the
process of market segmentation through four major areas that include the following segments:

i. Demographic segmentation
ii. Geographic segmentation
iii. Behavioral segmentation
iv. Psychographic segmentation

Figure 1: Market segmentation

Source: (Weller, 2017)

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  Target Marketing

The target market is the process of evaluating and analyzing the different segments of the
market that were selected in the market segmentation stage. At this step the marketers evaluate
the most important segment for their products and services. They find the segments that have
more attractive and potential benefits for the products they intend to launch and the segment
that will generate more profit is considered to be the potential target market for the company.
The businesses develop their marketing strategy and marketing campaign according to the
selected market segment which is also known as niche market.

 Market positioning

Market positioning is the process in which the company creates the perception in the minds
about their product and services as compared to their competitors existing in that particular
market. The overall marketing campaign of the company is based on the positioning strategy
as the company has to keep in view the competitive and competitive advantage over the
competitors that can be conveyed to the customers through the marketing campaign. This
perception is created in the minds of the customers' results in the success of the marketing
strategy and campaign.

C Marketing Mix

After developing the positioning of the market the next step in the marketing process the
development of the marketing mix plan. Marketing mix of a product or service is a combination
of certain variables of the market that are used by the organization with their company’s
products and features to create the demand for the product and generate the desired response
from the targeted market segment (Tools, 2019). Marketing mic is based on the 4Ps which are
presented as follows:

a. Product: the product or service sold by the company in a market

b. Price: the amount paid by the customers to purchase the product
c. Place: it involves the efforts that are put in to ensure the availability of the product in
the market.
d. Promotion: these are the efforts made by the company to convey the product
information and its advantages to reach the customers.

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D Implementation and Control

The last stage of the marketing process is the implementation and control; the stage where all
the marketing planning and strategies are implemented and evaluated for the desired outcomes.
Here all the strategies are implemented in order to achieve the desired objectives of the
company (Qualtrics, 2019). These plans are evaluated by taking necessary steps for evaluating
the results and outcomes of the strategies that enable the organizations to accomplish their
objectives.

Figure 2: Marketing process

Source: (Weller, 2017)

4 Significance of interrelationship between marketing and other functional units

The marketing function plays a significant role within the organization as it promotes the
growth and profitability of the company as well as creates a brand image of the firm. The
marketing function plays a significant role in the other function unite of the business such as
sales, finance, R&D and product development. The marketing unit supports the sales function

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of the company as it acts as the catalysts by making efforts to promote the image of the products
and services in the minds of the customers through advertisement and promotion. Similarly the
marketing also supports the finance department of the business, the finance department invests
in the development of new products and services and marketing department supports by
generating more revenue for the companies through promotional activities (Chand, 2017).
Similarly marketing unit crates the goodwill and brand image in the market that increases the
strength of the business.

5 Marketing plan of Hilton Hotels

Business Name: Hilton Hotels

Business Mission / Objective: to expand business operations and launch the Hilton hotels in
the UK market.

Situation Analysis: the situation analysis for the marketing campaign of Hilton hotels in UK
market is carried out through the SWOT and PESTEL analysis that will enable to examine
the macro and microenvironment as well as the external and internal factors of the business.

PESTEL Analysis

The PESTEL analysis the evaluation of the external macro environment of the company that
can affect its marketing campaign and outcome. The PESTEL analysis includes the following
factors:

Political: political factors strongly impact the businesses and it must be kept in mind before
starting a business in any market. The law and order situation of a country and the political
laws of taxation strongly impact the hospitality industry. In a country where terrorism is high
and there is political unrest, the Hilton hotel cannot generate profit in such a country. Similarly
if the tax rate is very high the customers will avoid traveling to such countries.

Economic: the economic factors also strongly affect the growth and success of a company in
a new market. The inflation rate, the unemployment rate, purchasing power of the people and
take home income strongly impact the hospitality industry. Therefore Hilton hotels must
examine the economic situation in UK before starting its marketing campaign. If the people in

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UK do not have enough purchasing power to spend on leisure and entertainment, therefore, the
company will not generate profit.

Social: the social factor also strongly impact the hospitality industry. The change in the attitude
and mindset of people can affect business profitability. For example, people believe that UK is
a promising country both from the business and tourism point of view then they would prefer
to travel to UK and the probability to stay in Hilton will be high.

Technology: this is the age of technological revolution. In order to ensure success and growth
companies and businesses must focus on the advanced technology and facilities of the
customers. In order to be successful in UK market the company must focus on the technology
factor and develop applications that facilitate customers such as online bookings, order
placements, payments, etc.

Environment: the weather and environment of country highly affect the marketing campaign
and profitability of the hospitality industry. The countries that have higher threat of
earthquakes, Tsunamis, etc are not the places where customers would like to travel or visit
therefore it is important that the Hilton must launch the business in country which has attractive
weather for customers.

Legal: there are certain countries that have travel bans and do not give visas to travelers and
tourists. Some countries also have the regulation for commercial terrorism insurance,
customers usually do not prefer to visit such countries. However the UK is a place that highly
attracts the tourists and it is also the center for the businesses, therefore, it will be beneficial
for the Hilton hotels to launch their marketing campaign.

Market Segmentation

The market segmentation of the Hilton hotels is based on the two segments that are
demographic segmentation and psychographic segmentation. The demographic segmentation
includes the social status, income level, family size, and lifestyles of the customers and the
psychographic segmentation includes the values, beliefs, and preferences of the customers.
The aim of the Hilton hotels is to focus on the values and preferences of the customers in terms
of services and the demographic factors in terms of their interests and affordability. These two
segments will form the basis for the marketing campaign of the Hilton hotels.

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Target Market

The target market for the Hilton hotels in the UK is the business travelers and the tourists that
frequently visit the country and prefer their stay in safe, luxurious and affordable
accommodation.

Marketing Mix

Strong marketing has been the major reason behind the success of Hilton hotels all across the
globe. The marketing mix or 4Ps of the Hilton hotels will consider the following:

Product Mix: the product mix of the Hilton hotels will include the combination of tangible
products and intangible products and services delivered to the customers. It must be ensured
that high-quality services and products are given to the customers that can attract them to book
their rooms in Hilton Hotel London. The product mix must ensure to deliver better than the
customers both in terms of quality and value.

Price Mix: the price mix of the Hilton hotel must be developed in a way that the prices offered
to the customers must be a market competitive as well as they beat the competitors in the
market. If the price is high then it must be value-added and give maximum satisfaction to the
customers.

Place Mix: the place mix include the selection of the most suitable location for the Hilton
hotels in the UK that provide maximum benefits to the customers as well as they are profitable
for the business. The company must select locations that are accessible to the customers such
as near the airports or the central business location where visitors have easy access. The most
suitable location for Hilton Hotels in London city because the place has high level of visitors
from all over the world.

Promotion Mix: promotion mix is the combination of ways of marketing and promotion of
the products and services. It includes the advertisement campaigns through the internet, print
or broadcast media, public relations or through events and activities. The best way to promote
the Hilton hotels is through travel magazines and websites, websites of the airlines and by
reaching the customers the broadcast medium.

Budget

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The budget of the marketing campaign will comprise of the market research cost, payment to
the marketing team, and advertisement costs.

The estimated budget for the marketing campaign can be developed as follows:

Market research cost: $10,000

Advertisement cost: $ 15,000

Total: $25,000

6 Conclusion and Recommendations

The marketing process plays a great role in the growth and success of a company as well as the
products. The marketing activities channelize the sales of the business and bring more
profitability and chances of growth. The marketing campaign will play a significant role in the
expansion of Hilton hotels in UK. However it is recommended that company must conduct a
market survey before starting the marketing campaign which will bring a clear picture of
exactly what customers demand in the services and deliverables in hospitality industry.

References

Chand, S., 2017. 7 Major Importance of Marketing | Marketing Management. [Online]

Available at: http://www.yourarticlelibrary.com/marketing/7-major-importance-of-
marketing-marketing-management/25857
[Accessed 25 October 2019].

Hilton, 2018. Hilton Annual Report 2018. [Online]

Available at: https://ir.hilton.com/financial-reporting/annual-reports
[Accessed 25 October 2019].

Hilton, 2019. About Us. [Online]

Available at: https://www.hilton.com/en/corporate/
[Accessed 25 October 2018].

NetMba, 2019. Marketing Process. [Online]

Available at: http://www.netmba.com/marketing/process/
[Accessed 25 October 2019].

Qualtrics, 2019. What is Market Segmentation? Different Types Explained. [Online]

Available at: https://www.qualtrics.com/experience-management/brand/what-is-market-
segmentation/
[Accessed 25 October 2019].

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Tools, 2019. The Marketing Mix and the 4Ps of Marketing. [Online]
Available at: https://www.mindtools.com/pages/article/newSTR_94.htm
[Accessed 25 October 2019].

Weller, J., 2017. The Definitive Guide to Strategic Marketing Planning. [Online]
Available at: https://www.smartsheet.com/strategic-marketing-processes-and-planning
[Accessed 25 October 2019].

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