DescriptionMarketing in a
Digital Era
M9112 Marketing Strategies for
Hotel Management
Ms. Garrido
sgarrido@lesroches.es
Concepts
• Digital Disruption
• Customers are in charge
• Data and technology in marketing
Tech
Revolution
Reflection
• What you do you think?
• Are you aware this era is the
new “Renaissance”?
• Do you agree?
• How does this affect hotels?
• What is the role of marketing
in this context?
https://youtu.be/khjY5LWF3tg
Source: WEF
Tech
Revolution
To understand this revolution and its
opportunities we must see what their
pillars are:
• 1- Space
• 2- Computing
• 3- Communication
• 4- Access
But the most important ones are
speed and capacity on microchips
and internet with peer to peer
connection.
Tech
Revolution
What makes unique this
revolution nowadays is its
capacity to spread all over the
world and make more
revolutions at same time at
every single level in society.
Source:
www.thedualary.com
Digital disruption
Digital disruption is an effect that changes the fundamental expectations and
behaviors in a culture, market, industry or process that is caused by, or
expressed through, digital capabilities, channels or assets
Source: Gartner
Digital Disruption
in Hotel Industry
• Accommodation services
• But owns no Real Estate
• Manages no property
Example
Digital
disruption
Digital disruption. Tourism industry
Source: WEF
Introduction.
Marketing
Concepts
M9112 Marketing Strategies for
Hotel Management
Ms. S. Garrido
sgarrido@lesroches.es
WHAT IS THE PURPOSE OF A
BUSINESS?
To create and maintain
satisfied profitable
customers
What is Marketing?
Marketing is
the process by which
companies create value for
customers and build strong customer relationships in
order to
capture value from the customers in return.
The Four Ps – Marketing Mix
Marketing
Mix
Product
Place
(Distribution)
Customer
Solution
Price
Cost
Promotion
Convenience
Communication
7 Ps
The Four Ps – Marketing Mix
The marketing mix is a blend of
ingredients to create an
effective product/service
package for the target market.
Core Marketing Concepts
Needs
• A human need is a state of felt deprivation (basic needs are food,
clothing, breathing, water, sex…)
This diagram shows Maslow’s hierarchy of needs, represented as a pyramid with the more basic needs at the bottom.
American Psychologist and Humanist (1908-1970)
Needs, Wants, and Demands
• Wants are how people communicate their needs and are shaped by
culture & personality…
Vegetarian person
Hungry Spaniard
• We all have UNLIMITED wants, but we have LIMITED resources.
• When backed by buying power, wants become demands.
WHAT IS A MARKET?
A market is a set of actual and
potential buyers who might transact
with a seller
The Marketing Process
A Five-Step Model
1
Figure 1-1
A simple model
of the marketing
process.
2
5
3
4
Capturing Value from Customers
Customer lifetime value is the value of the entire stream of purchases that the
customer would make over a lifetime of patronage.
Building the right relationships with the
right customers involves treating customers
as assets that need to be managed and
maximized.
Different types of customers require different
relationship management strategies
Build the right relationship with the right customers
Marketing’s Future
FAST CHANGING ENVIRONMENT
THE ABILITY TO CHANGE HAS BECOME
A COMPETITIVE ADVANTAGE
What does a Marketing
Manager do in a hotel?
It is the person involved in studying
the customers, understanding the
market, planning, implementing
sales strategies, and maintaining
the control of sales activities.
Marketing
Manager’s Job
To find, attract, keep and grow target customers
by creating, delivering, and communicating
superior customer value.
The New Digital Age
• Recent technology has had a major impact on the
ways marketers connect with and bring value to their
customers
•
•
•
Market research
• Learning about and tracking customers
Create new customized products
Distribution
•
Internet—creates marketplaces and Marketspaces
Digital Marketing Manager’s Job
To find, attract, keep and grow target customers by creating, delivering, and
communicating superior customer value and creating omnichannel experiences.
Key concepts for the marketing manager nowadays:
• Knowledge of technology at different levels
• Marketing department is one of the most transversal areas within the company
• Recycling him/herself continually to know marketing environment
• Digital Marketing or Digital Transformation Manager
References:
• Kotler, P., Bowen, J. T., Makens, J. C., & Baloglu, S. (2017). Marketing for hospitality and tourism
(7th ed.). Harlow, UK: Pearson Education.
Creating Your
Marketing Plan
M9112 Marketing Strategies for
Hotel Management
sgarrido@lesroches.es
Summary
• In this topic we will put together all the information that we
have seen in the course
• The way to put it together will be to create a basic
marketing plan to help you identify how all the pieces make
sense together in your hotel strategy
• Besides reviewing the concepts already seen, we will use
this plan as the context in which extend the strategy
needed to successfully market your hotel
• Therefore we will add other concepts and strategies that
will be necessary to put together your marketing strategies
The Three Parts of Your
Marketing Strategies
Initial Considerations
Develop Marketing Strategies
Develop Implementation Plan
(Final Tips for Your Plan)
Initial
Considerations
• Ensure the marketing plan is connected to the
firm’s business plan including organizationallevel mission, vision, goals, objectives, and
strategies (see additional video lesson for this)
• Conduct a situation analysis
• Macro-level external environment (see
additional video lesson for this)
• Competitive environment (see additional
video lesson for this)
• Internal environment (see additional video
lesson for this)
• Perform any needed market research
• Establish marketing goals and objectives
Develop Marketing
Strategies
Product-market combinations
Market segmentation, target marketing, positioning
Marketing mix strategies:
• Product/branding strategies
• Service strategies (delivery) (see additional video lesson for this)
• Pricing strategies
• Promotional strategies
Develop
Implementation Plans
• Programs/action plans for each
strategy including timetable,
assignment of responsibilities, and
resources required
• Forecasts and budgets
• Metrics for marketing control
• Provide for contingency planning
The Three Parts of Your
Marketing Strategies
Initial Considerations
Develop Marketing Strategies
Develop Implementation Plan
(Final Tips for Your Plan)
(2. Develop Marketing Strategies)
Select Your Target
Market
Fine-tune with your hotel (product)
(2. Develop Marketing Strategies)
Crafting Your Message
(Positioning)
• Analyze competitors (see
additional video lesson for
this)
• See where your USP and
differentiation fit within
competition, environment,
customers
• Create your main message
around that positioning
(2. Develop
Marketing Strategies)
Pricing Strategies
• Select pricing approach
• New/existing hotel
• Psychological Pricing &
sensitivity to prices
• Avoid Pricing Mistakes
(2. Develop Marketing Strategies)
Promotional
Strategies
• Once you have your message:
• Select channels where your customers
can be reached:
• Offline
• Online
Final Tips for Your Marketing Plan
• Stay flexible
• Utilize input, but don’t become paralyzed by analysis paralysis
• Don’t underestimate the implementation part of the plan
• Stay strategic, but also on top of the practical
• Give yourself and your team room to fail and try again
Source: Marshall, G. (2018). Marketing Management. [VitalSource Bookshelf]. Retrieved from https://bookshelf.vitalsource.com/#/books/9781260157857/
References
• Marshall, G. (2018). Marketing Management. [VitalSource Bookshelf].
Retrieved
from https://bookshelf.vitalsource.com/#/books/9781260157857/
• Kotler, P., Bowen, J. T., Makens, J. C., & Baloglu, S. (2017). Marketing
for hospitality and tourism (7th ed.). Harlow, UK: Pearson Education.
ASSIGNMENT OUTLINE
Assignment title:
Assessment 3 (mini-Marketing Plan)
Weighting:
45%
Faculty responsible:
Ms. Garrido
Programme:
MEPIHM1
Course name:
Marketing Strategies for Hotel Management
Course number:
M9112
Hand-in date:
Last day of the module at 23:59h
Assignment Overview:
This coursework consists of creating a (brief) marketing plan for a hotel of your choice. You
can optionally present a summary of the plan in a short video (less than 10 min).
Overall aim:
Apply marketing strategies as we see them in class, to a real-life scenario and effectively
communicate it in written and (optionally) in audio-visual format.
Learning outcomes:
1, 2, 3, 4.
Organisation and methodology:
This is an individual project. You have to produce a report (marketing plan) and optionally a video
summarizing the plan. Different weighing applies to the different options (please see Assessment Tasks
and Weighting Section for details).
Word count:
Max. 5000 words.
Video length:
Max. 10 minutes
Resources available:
Course materials, e-library tools (books, newsletter, online magazines, etc.), internet, professionals
from the industry, and of course the discussions in class based on handouts and videos posted in
Moodle.
There is also a guideline to be used as support for the project. (See Assessment Tasks and Weighting
Section for details).
Page 1 of 4
Assessment tasks & weighting:
Marketing plan
Plan only
Plan+Video
Briefly explain the chosen hotel
5%
5%
Initial Considerations
Connection to main business plan (consider mission only)
5%
5%
Brief macro-level analysis (max. 1 page)
5%
5%
Competitive environment
10%
10%
Internal environment
5%
5%
Establish one marketing goal
5%
5%
Develop Marketing Strategies
Segmentation and targeting
10%
5%
Differentiation and positioning
10%
5%
Select only two of the following
20% each
15% each
Service strategies
Pricing strategies
Promotional strategies (offline)
Promotional strategies (online)
Develop Implementation Plan
Provide one action as contingency for any of the two selected strategies above
5%
5%
Video (Optional) 20%
Clarity of explanation
N/A
10%
Summarizing of contents out of the plan
N/A
10%
Common skills: assessed (bold) or developed (italics):
MANAGING AND DEVELOPING
SELF
1.Manages own
role and
responsibilities
WORKING WITH AND RELATING
TO OTHERS
6.Treats others’
values, beliefs
and opinions with
respect
COMMUNICATING
9.Receives and
responds to a
variety of
information
MANAGING TASKS AND SOLVING
PROBLEMS
13.Uses
information
sources
BECOMING NUMERATE AND
USING TECHNOLOGY
16.Applies
numerical skills
and techniques
2. Manages own
time in achieving
objectives.
7.Relates to and
interacts
objectively with
individuals and
groups
10.Presents
information in a
variety of visual
forms
14. Deals with a
combination of
routine and nonroutine tasks
17.Uses a range
of technological
equipment and
systems
3.Undertakes personal
and career
development
4. Transfers skills
gained to new and
changing situations
and contexts.
5.Uses a
range of
thought
processes
8.Works effectively as
a member of a team
11.Communicates in
writing
12.Participates in oral
and non-verbal
communication
15.Identifies and
solves routine and
non-routine problems
Special instructions:
This coursework consists of developing a marketing plan for a hotel of your choice. Ideally you should
choose one hotel that you know very well (for example where you are currently working or where
you have had working experience).
You can also choose to accompany your plan with a summary of it in a short video (less than 10 min.).
If you choose to create a video, the marketing plan will weigh 80% and the video 20% of this project’s
grade.
If you choose to only produce a report, the plan will weigh 100% of the grade.
Your videos should show your face while presenting. You can use any supporting material that you
prefer but it is advisable that you create a slide deck to present the summary of your plan (you can
use Zoom or Powerpoint to create that video).
Remember that any material should be presented in a professional way.
Page 2 of 4
The videos should be submitted as follows: upload it to your favorite video hosting platform (for
example YouTube or Vimeo) as a non-public or non-listed video and email me the link to
sgarrido@lesroches.es
If you need help creating the video, please let me know and we can organize a session. If you have not
created a video like this before it could be a great learning experience.
Page 3 of 4
Plagiarism:
Plagiarism is the act of presenting another’s ideas or words as one’s own. Cheating includes, but is not
limited to, the intentional falsification or fabrication of any academic activity, unauthorized copying of
another person’s work, or aiding and abetting any such acts.
Particular care must be taken when presenting information that has been obtained from an internet
site. Should this information not be correctly referenced, then you are guilty of plagiarism and will be
penalized accordingly.
With respect to projects/assignments, faculty reserves the right to randomly call upon any student
and ask them to defend their work orally.
Any assignment/exam which is found to contain plagiarism will automatically be awarded a grade of 0,
and an e-mail will be sent to the student or the student’s parents/tutors/sponsors. Depending on the
circumstances, additional penalties could be imposed (see LRM Academic Regulations, Section 11).
Statement of authorship
Following the title page of your assignment there should be a page on which you sign a statement that
the work included in the assignment is your own work except where appropriately referenced. The
following statement should be used:
Statement of authorship
I certify that this assignment is my own work and contains no material which has been submitted as part of an
assignment in any institute, college or university. Moreover, to the best of my knowledge and belief, it contains
no material previously published or written by another person, except where due reference is made in the text
of the assignment.
Signed …………………………………………………………………….
Name……………………………………………………………………..
Student number…………………………………………………….
Page 4 of 4
ASSIGNMENT OUTLINE
Assignment title:
Mini Project
Weighting:
25%
Faculty responsible:
Ms. Garrido
Programme:
MEPIHM1
Course name:
Marketing Strategies for Hotel Management
Course number:
M9112
Hand-in date in Moodle:
Last day of the module at 23:59h
Assignment Overview:
Analyze a real scenario and identify problems or decisions to be made (if any), and come up
with possible solutions/conclusions.
Overall aim:
Train the critical thinking skills that are necessary to be a marketing manager and make
decisions related to marketing management and strategies.
Learning outcomes:
2, 3, 4.
Organization and methodology:
This assignment is individual.
Word count:
Maximum 1500 words.
Resources available:
Course bibliography, library tools (books, newsletter, online magazines, etc.), internet, professionals
from the industry, in-class discussions.
Page 1 of 2
Assessment tasks & weighting:
Presentation content: 15%
Cover page and table of contents
Length
Overall professional appearance
Content: 85%
Highlighting key material
Answer to question 1 (see below)
Answer to question II (see below)
Answer to question III (see below)
Conclusions
Text: relevant and well developed
Text: well written English
05%
05%
05%
10%
10%
20%
15%
10%
10%
10%
Common skills: assessed (bold) or developed (italics):
MANAGING AND DEVELOPING
SELF
1.Manages own
role and
responsibilities
WORKING WITH AND RELATING
TO OTHERS
6.Treats others’
values, beliefs
and opinions with
respect
COMMUNICATING
9.Receives and
responds to a
variety of
information
MANAGING TASKS AND SOLVING
PROBLEMS
13.Uses
information
sources
BECOMING NUMERATE AND
USING TECHNOLOGY
16.Applies
numerical skills
and techniques
2. Manages own
time in achieving
objectives.
7.Relates to and
interacts
objectively with
individuals and
groups
10.Presents
information in a
variety of visual
forms
14. Deals with a
combination of
routine and nonroutine tasks
17.Uses a range
of technological
equipment and
systems
3.Undertakes personal
and career
development
4. Transfers skills
gained to new and
changing situations
and contexts.
5.Uses a
range of
thought
processes
8.Works effectively as
a member of a team
11.Communicates in
writing
12.Participates in oral
and non-verbal
communication
15.Identifies and
solves routine and
non-routine
problems
Special instructions:
This coursework consists in resolving a case study: The Palace Hotel. The case study is available as a
separate document.
These are the questions that need to be answered by the students:
1.
2.
3.
4.
Who is right—Mr Favre or the Palace management? Why?
What went wrong in this situation? What did the Palace Hotel do wrong (if anything)? What
did Mr. and Mrs. Le Favre do wrong (if anything)?
How could The Palace have avoided this situation?
Conclusion: What would be your plan in order to avoid this situation from happening again?
Besides the answer to the questions, the coursework should contain a short briefing of the case
information itself, and then an identification of the problem(s).
The final version should contain a cover page, table of contents, and references used, if any.
Remember that any material should be presented in a professional way, and submitted to Turnitin
section in you course in Moodle.
Page 2 of 2
CASE 38 The Hotel Palace ■ 1
38
CASE
The Hôtel Palace
Danilo Moriconi swiveled his desk chair and stretched his clasped fingers
into the morning sunlight streaming through the lace curtains of his office
window. His knuckles cracked one after the other. He had just read the managing director’s response to a critical letter to the editor in the largest regional newspaper, Die Tagesblick, and was feeling quietly self-satisfied.
Although the original complaint letter had been something of a public relations disaster for the Hôtel Palace, he was content with the hotel’s official
response, which had upheld both the hotel’s integrity and his own, and with
the overall outcome of recent events. Surely God was smiling on the Hôtel
Palace again and, despite the current economic climate, Moriconi felt sure
that a new era was dawning for the venerable hotel and for his career. The
next 75 years—or at least the next few years—would certainly witness the
return of the Palace to its former glory, and Moriconi felt that the hotel was
finally back on track.
The Palace at 75
The Hôtel Palace had just celebrated its 75th anniversary under the economic cloud of a major recessionary period. As part of its celebration, it offered a special promotional rate of US$150 per person inclusive of breakfast
and dinner in the hotel’s renowned dining room to anyone celebrating his
or her 75th birthday during the same year, an unprecedented special offer
in an establishment unaccustomed to discounting. The “Merci” package was
advertised as a gesture of gratitude to local people who had supported the
hotel through its many years.
Although the hotel was internationally famous—a member of
Leading Hotels of the World—and a recognized institution within
Switzerland, its market base of wealthy foreign aristocrats had deteriorated
to a point where it achieved less than 40 percent annual occupancy of its
160 rooms. Its once numerous permanent residents, who maintained apartments at the hotel for seasonal occupancy, had dwindled to a handful of octogenarians. Younger affluent travelers had developed interests in adventure
and experience tourism not readily available in the well-established city/
resort region surrounding the hotel, and the remaining regular visitors to
the region preferred to invest in condominia or real estate. Few transient
guests were willing to pay the hotel’s rack rates, which started at approximately US$350 per room.
The hotel’s physical plant had deteriorated to an appallingly low level
as a result of the property’s poor financial showing (the hotel lost several million francs annually) and the owners’ resulting unwillingness to reinvest in
furniture, fixtures, and equipment. In fact, the Palace almost certainly would
have declared bankruptcy and closed were it not supported by a prestigious
international sporting association whose patronage of banqueting facilities
and restaurants kept the hotel looking at least somewhat successful. The owners therefore continued to operate the hotel as a trophy property in the hope
that new management might be able to reposition the hotel in line with
modern tastes and needs.
The Management Team
The Palace had been operated for the last five years as part of a smaller “collection” of hotels, composed of several disparate international properties
ranging from newish four-star airport hotels to five-star palaces. Ownership
had recently insisted on replacement of the hotel’s general manager who had
operated the hotel for the chain unsuccessfully since the management contract had been signed five years earlier. During the last year, the hotel management team, headed by a new managing director, Jakob Aebersold (who had
been released by a famous palace hotel in St. Moritz,) had hired Karin van den
Welden, a sales account executive with two years’ experience at Nestlé. The
Palace was just beginning to experiment with promotions and discounting,
a move strongly resisted by Moriconi and other palace veterans.
The hotel’s staff was oddly divided between associates who had been
with the hotel for several decades—the concierges, porters, and waiters—
and hotel school trainees. The management team was composed of
Aebersold, the managing director; Moriconi, the assistant director; François
du Champs, the vice director, who also served as food and beverage director; a director of rooms division; a director of human resources; and a financial comptroller who coordinated accounting operations with an outside
accounting firm. The director of human resources, Heidi Lutz, who had come
over with Aebersold from the St. Moritz property, doubled as his personal
assistant and public relations manager. A handful of assistant managers were
engaged in actual supervision of employees. Aebersold had been in his position for approximately one year and was under pressure to increase the hotel’s profitability. He was given to fits of extreme temper and was often seen
literally jumping up and down with his fists clenched shouting at associates
and other managers. This behavior was often exhibited in the hotel lobby
and restaurants as well as in private and departmental offices.
Aebersold was secretly resented by both Moriconi and du Champs,
who had been with the hotel for many years and who had been passed over
for promotion. Moriconi had emigrated to the country 20 years earlier as a
young apprentice and believed that his émigré status was the reason for his
failure to be promoted. In the early years, he had been awed by the spectre
of the Swiss hotelery. But as time went by and he watched his beautiful hotel progressively disintegrate, his southern temperament had boiled at the
agonizingly slow pace of events in Switzerland. Although the company had
invested in so-called “Management of Change Seminars,” the only changes
Moriconi perceived were short-term, quick-fix schemes to increase revenue,
which ruined the hotel’s image, taking it farther and farther away from the
vaunted position of its heydey years. Moriconi believed that a grand hotel
was an institution that must remain aloof from the swirling tides of economic and demographic trends if it were to maintain its integral character.
The company, he believed, had increasingly sold the hotel out to a class of
clientele that could not appreciate its essential finesse and charm and that
would only be dissatisfied with the expensiveness of the offer, without consideration for the renovation work needed to maintain the product.
This case was written by Jeffrey B. Catrett, Dean, Business and Hospitality, Kendall College. Used by permission. Names have been disguised.
Copyright © 2007 by Pearson Education, Inc. All rights reserved. This material is protected by copyright, and permission should be obtained from the publisher
prior to any prohibited reproduction or transmission in any form or by any means. For information regarding permission, write to: Rights and Permissions Department.
1
2 ■ CASE 38 The Hôtel Palace
With respect to his own career, Moriconi had grown wary of the antiforeigner sentiment and local hotel chauvinism prevalent in the region. He
had painstakingly established close connections to important people within
the international sporting association, however, and his tenure was in little
jeopardy. Du Champs was considered by many, including himself, to be the
token Swiss French on the management committee. In a company headquartered in Zurich, he felt he had little chance to gain a general manager’s
position. He accepted his fate with a kind of permanent sulk and was rarely
seen around the hotel.
A Foray into Marketing
Miss van den Welden had enlisted the support of the chain’s corporate marketing department, dominated by former marketers of SwissAir, in providing
an internal relationship marketing and upselling instruction course to associates. The program was administered on a compulsory basis to all line-level
staff both in the rooms area and in the hotel’s outlets, and was also attended
by line-level associates and assistant managers. Attendees were not paid for
the time they invested in the course, which was given in the hotel ballroom.
Tipped associates were told that the course would increase their gratuities,
and nontipped associates were assured that the course would serve as an
important credit on their resume. The course was introduced by Miss van den
Welden but was led by airline sales staff and stressed both the importance
of building relationships with potential return guests and of upselling hotel
products and services. At the conclusion of the course, each staff associate
and assistant manager was tested on the material, and each earned a nationally recognized certificate. The course was completed just two weeks before the beginning of the 75th anniversary celebrations.
The Unfolding Gala
When the first big night arrived—a Saturday night during a normally busy
period in the early fall—invited local dignitaries and socialites as well as
representatives of the international sports association were ushered into the
hotel’s many banquet rooms for specially prepared dinners and speeches. The
press was in attendance, and the event was covered extensively in regional
papers and magazines including Die Tagesblick. Additional banquet staff had
been enlisted from local hotel schools to aid in preparation and service. The
hotel’s restaurant, La Rotonde (16 Gault Millau points out of a possible 20*)
was reserved mainly for persons who had been attracted by the “Merci” package offer. La Rotonde’s long-time mâitre d’hôtel and president of the national Mâitre d’ Association, Antoine Rey, had recently stormed out of the
restaurant as a result of a personality clash and power struggle with
Aebersold, vowing to take away La Rotonde’s return guest base and ruin its
reputation in the local community. Older waiters resented the loss of the
mâitre d’, who they believed had been largely responsible for maintaining
the reputation of the restaurant and ensuring their substantial incomes
(13.04 percent of revenue plus considerable incidental tipping.) Some
younger waiters were relieved at the removal of this traditional autocratic
manager and welcomed the arrival of a young Austrian, Hans-Rudolph
Scheer, a hotel school graduate who had been hired to fill the position.
The Favre Incident
Mr. and Mrs. Marcel Favre arrived for dinner in the restaurant on the first
night of the 75th anniversary celebration dressed in their finest attire—expensive if somewhat poorly tailored clothing—and proudly presented their
coupon for the menu being offered as part of their “Merci” package. (The
coupon was valid for the fixed menu, which included coffee but no beverages.) Mr. Favre had celebrated his 75th birthday during March of the same
year and was looking forward to his first Hôtel Palace experience. After many
years of farming, he had sold his land for a handsome profit and was enjoying his retirement with his wife of over 50 years. They were graciously
received by Scheer, who escorted them to a table in a station manned by
one of the hotel’s most experienced waiters, Antonin Propescu.
The Favres took note of the fancy menu cards with the history of the
establishment, the Gault Millau rating, and the prices printed exclusively on
the gentleman’s card. Mr. Favre ordered the prix fixe menu for himself and
his wife and selected a bottle of lower-priced local wine when the waiter
presented the wine card—a wine he recognized that was widely available in
local supermarkets. During the course of the meal, the Favres remarked that
Propescu seemed somewhat cool and distant, but decided that this apparent hauteur was probably considered appropriate in such a distinguished
restaurant. Propescu made several attempts to offer another bottle of wine,
but the Favres remained with their initial selection throughout the dinner.
All in all, the experience was somewhat formal for their taste, but they savored the luxurious surroundings and were impressed with the excellent food
quality.
At the conclusion of the dinner, Mr. Favre asked Propescu’s advice in
selecting “something special” as an after-dinner drink for the couple to
toast the occasion. He told Propescu, with a wink, that the Favres had been
accustomed to their own homemade eau de vie, but wanted something
“a little better” for this important occasion. Propescu did not present the
card, but indicated with a flourish that he had “just the thing for a special
evening,” mentioning the name of a French vintage unfamiliar to the Favres.
He returned with two glasses and a delicious dessert wine, which the couple enjoyed immensely. At the conclusion of the meal, Propescu indicated
deferentially that he would place the beverages on the couple’s hotel bill.
Although the evening had been somewhat stiff, and the Favres had felt
somewhat out of place, they retired for the night satisfied with their one
and only Hôtel Palace experience.
At checkout the following morning, they were told that the hotel’s
computer was not functioning properly. The reception trainee politely requested an imprint of Mr. Favre’s credit card and said that a copy of the bill
would be sent to them in the mail within a few days.
Two weeks later, Mr. Favre received the bill as well as a major shock.
The dessert wine—a Château d’Yquem—had been charged to the bill at
US$75 per glass. The “special after dinner drinks” had cost more than the
rest of the experience combined. Mr. Favre duly called the hotel to complain.
Service Recovery?
Mr. Favre’s first complaint was answered by an Asian reception trainee who
asked him in awkward French if they had, in fact, consumed the drinks. When
he replied that they had, the trainee responded by saying that there was
nothing she could do—the credit card had already been charged, and it was
the hotel’s policy to alert the accounting firm only if disputes were made
as to the validity of charges. Mr. Favre placed a second and angrier call to
the hotel and asked to speak to someone responsible for the restaurant. After some time, his call was transferred to a banquet mâitre d’, the only person of responsibility from the food and beverage department on duty during
the afternoon. Against a din of background noise, the banquet mâitre d’ explained that he was supervising a function at the moment and that Mr. Favre
would have to call the mâitre d’ for La Rotonde in a few days after the check
and bill could be secured from the accounting firm. He promised to have
Scheer look into the matter. Mr. Favre then called the hotel a third time and
demanded to speak to the managing director. He was told, after several minutes on hold, that Mr. Aebersold was not available, but that the assistant
director, Mr. Moriconi, would return his call within the hour.
Moriconi called back 45 minutes later after investigating the incident,
announced himself, and listened respectfully to Mr. Favre’s complaint. Mr.
Favre argued that he had not been advised of the charge for the Château
d’Yquem at the time of the service and would never have selected such an expensive option if he had been aware of its price. He suggested that he would
be willing to pay a reduced amount for the drinks, but that he felt he should
not and could not pay the full price for something he had not directly ordered.
*Gault Millau is a famed and prestigious restaurant rating company based in Paris. Very few restaurants are rated 16 or above.
CASE 38 The Hôtel Palace ■ 3
While relating his frustrations, Mr. Favre became increasingly abrasive, using
rough language in an incredulous tone of voice. He finished by relating his
fury at having been mishandled by the reception trainee and the banquet
mâitre d’ and having to wait beside his telephone for a management response.
After letting Mr. Favre speak his mind, Moriconi responded in a tone
of cool, controlled authority. The Hôtel Palace, he explained, was well known
throughout the community as a hotel with certain standards and, of course,
certain prices—a hotel for connoisseurs. The special “Merci” package had
been arranged to allow members of the local community to share in a special moment in the hotel’s history. Moriconi defended the actions of the
waiter Propescu by pointing out to Mr. Favre that he had asked specifically
for “something special” as an after-dinner drink in an environment where
“something special” certainly meant “something expensive.” Propescu had
mentioned the name of the wine and would assume normally that Mr. Favre’s
failure to ask for the wine card or the price meant that he knew the wine
and its reputation for quality and expense. Moriconi suggested that it would
have been inelegant and patronizing for the waiter to discuss prices openly
and inappropriate and equally patronizing to offer a low-priced substitute
when “something special” was requested.
Favre responded somewhat sheepishly that he had not wanted to appear ignorant when Propescu mentioned the vintage. Moriconi proceeded by
agreeing with Mr. Favre’s assessment of the hotel’s awkwardness in responding to his calls but pointed out that the Palace was a large establishment with a complex internal hierarchy and a variety of levels of experience.
Nevertheless, he assured Mr. Favre that the hotel would take steps to remedy its clumsiness in reacting to customer concerns. In the end, however,
Moriconi summarily rejected Mr. Favre’s offer to pay a discounted price for
the Château d’Yquem pointing out that the wine had been consumed and
that the hotel had incurred the associated costs. Mr. Favre reacted angrily
saying that he would refuse to pay and threatening that repercussions would
follow. Moriconi calmly replied that the Palace would not be threatened, and
the charge would remain on the card.
The Fallout
The next day, an inflammatory letter to the editor composed by Mr. Favre
was published in Die Tagesblick. In it, he described in detail his own personal background, the events as they unfolded, and his impressions of the
insensitive response given by Palace management. After several days of contemplation and consultation with his PR assistant, Aebersold responded
with a letter that expressed the hotel’s regret that Mr. Favre had been upset by the matter but also expressed anger that the incident had been reported in a one-sided and disproportionate manner. Aebersold affirmed the
hotel’s right and responsibility to maintain its position as an upholder of
taste and standards within the community, noting that high prices were necessary to keep the hotel open, providing the services expected by that community. La Rotonde, the letter asserted, was clearly a gourmet restaurant,
and Mr. Favre, it concluded, had been treated with the same discretion and
in the same manner as would any guest in La Rotonde regardless of social
station.
Conclusion: A Small Victory
The fog, traditional for this time of year, had thickened around Moriconi’s
office, and the sun had been reduced to a small distant bright spot in the
heavens. Moriconi swiveled around toward the jumble of reports he would
need to consider for the week’s upcoming meetings and absently stroked the
leg of his fine Italian Renaissance writing table. The room had grown darker,
but his spirits had not dimmed. Although he had had to put up with a few
of Aebersold’s trademark fits, it had been worth it. It was a small but important victory for an old hotelier, and he had learned to relish these small
victories and bide his time. For the first time in many weeks, he found himself actually looking forward to the endless round of meetings. Though it
would be subtle and slow, change—at least the kind of change Moriconi
yearned for—was definitely in the air.
ASSIGNMENT OUTLINE
Assignment title:
Assessment 3 (mini-Marketing Plan)
Weighting:
45%
Faculty responsible:
Ms. Garrido
Programme:
MEPIHM1
Course name:
Marketing Strategies for Hotel Management
Course number:
M9112
Hand-in date:
Last day of the module at 23:59h
Assignment Overview:
This coursework consists of creating a (brief) marketing plan for a hotel of your choice. You
can optionally present a summary of the plan in a short video (less than 10 min).
Overall aim:
Apply marketing strategies as we see them in class, to a real-life scenario and effectively
communicate it in written and (optionally) in audio-visual format.
Learning outcomes:
1, 2, 3, 4.
Organisation and methodology:
This is an individual project. You have to produce a report (marketing plan) and optionally a video
summarizing the plan. Different weighing applies to the different options (please see Assessment Tasks
and Weighting Section for details).
Word count:
Max. 5000 words.
Video length:
Max. 10 minutes
Resources available:
Course materials, e-library tools (books, newsletter, online magazines, etc.), internet, professionals
from the industry, and of course the discussions in class based on handouts and videos posted in
Moodle.
There is also a guideline to be used as support for the project. (See Assessment Tasks and Weighting
Section for details).
Page 1 of 4
Assessment tasks & weighting:
Marketing plan
Plan only
Plan+Video
Briefly explain the chosen hotel
5%
5%
Initial Considerations
Connection to main business plan (consider mission only)
5%
5%
Brief macro-level analysis (max. 1 page)
5%
5%
Competitive environment
10%
10%
Internal environment
5%
5%
Establish one marketing goal
5%
5%
Develop Marketing Strategies
Segmentation and targeting
10%
5%
Differentiation and positioning
10%
5%
Select only two of the following
20% each
15% each
Service strategies
Pricing strategies
Promotional strategies (offline)
Promotional strategies (online)
Develop Implementation Plan
Provide one action as contingency for any of the two selected strategies above
5%
5%
Video (Optional) 20%
Clarity of explanation
N/A
10%
Summarizing of contents out of the plan
N/A
10%
Common skills: assessed (bold) or developed (italics):
MANAGING AND DEVELOPING
SELF
1.Manages own
role and
responsibilities
WORKING WITH AND RELATING
TO OTHERS
6.Treats others’
values, beliefs
and opinions with
respect
COMMUNICATING
9.Receives and
responds to a
variety of
information
MANAGING TASKS AND SOLVING
PROBLEMS
13.Uses
information
sources
BECOMING NUMERATE AND
USING TECHNOLOGY
16.Applies
numerical skills
and techniques
2. Manages own
time in achieving
objectives.
7.Relates to and
interacts
objectively with
individuals and
groups
10.Presents
information in a
variety of visual
forms
14. Deals with a
combination of
routine and nonroutine tasks
17.Uses a range
of technological
equipment and
systems
3.Undertakes personal
and career
development
4. Transfers skills
gained to new and
changing situations
and contexts.
5.Uses a
range of
thought
processes
8.Works effectively as
a member of a team
11.Communicates in
writing
12.Participates in oral
and non-verbal
communication
15.Identifies and
solves routine and
non-routine problems
Special instructions:
This coursework consists of developing a marketing plan for a hotel of your choice. Ideally you should
choose one hotel that you know very well (for example where you are currently working or where
you have had working experience).
You can also choose to accompany your plan with a summary of it in a short video (less than 10 min.).
If you choose to create a video, the marketing plan will weigh 80% and the video 20% of this project’s
grade.
If you choose to only produce a report, the plan will weigh 100% of the grade.
Your videos should show your face while presenting. You can use any supporting material that you
prefer but it is advisable that you create a slide deck to present the summary of your plan (you can
use Zoom or Powerpoint to create that video).
Remember that any material should be presented in a professional way.
Page 2 of 4
The videos should be submitted as follows: upload it to your favorite video hosting platform (for
example YouTube or Vimeo) as a non-public or non-listed video and email me the link to
sgarrido@lesroches.es
If you need help creating the video, please let me know and we can organize a session. If you have not
created a video like this before it could be a great learning experience.
Page 3 of 4
Plagiarism:
Plagiarism is the act of presenting another’s ideas or words as one’s own. Cheating includes, but is not
limited to, the intentional falsification or fabrication of any academic activity, unauthorized copying of
another person’s work, or aiding and abetting any such acts.
Particular care must be taken when presenting information that has been obtained from an internet
site. Should this information not be correctly referenced, then you are guilty of plagiarism and will be
penalized accordingly.
With respect to projects/assignments, faculty reserves the right to randomly call upon any student
and ask them to defend their work orally.
Any assignment/exam which is found to contain plagiarism will automatically be awarded a grade of 0,
and an e-mail will be sent to the student or the student’s parents/tutors/sponsors. Depending on the
circumstances, additional penalties could be imposed (see LRM Academic Regulations, Section 11).
Statement of authorship
Following the title page of your assignment there should be a page on which you sign a statement that
the work included in the assignment is your own work except where appropriately referenced. The
following statement should be used:
Statement of authorship
I certify that this assignment is my own work and contains no material which has been submitted as part of an
assignment in any institute, college or university. Moreover, to the best of my knowledge and belief, it contains
no material previously published or written by another person, except where due reference is made in the text
of the assignment.
Signed …………………………………………………………………….
Name……………………………………………………………………..
Student number…………………………………………………….
Page 4 of 4
Creating Your
Marketing Plan
M9112 Marketing Strategies for
Hotel Management
sgarrido@lesroches.es
Summary
• In this topic we will put together all the information that we
have seen in the course
• The way to put it together will be to create a basic
marketing plan to help you identify how all the pieces make
sense together in your hotel strategy
• Besides reviewing the concepts already seen, we will use
this plan as the context in which extend the strategy
needed to successfully market your hotel
• Therefore we will add other concepts and strategies that
will be necessary to put together your marketing strategies
The Three Parts of Your
Marketing Strategies
Initial Considerations
Develop Marketing Strategies
Develop Implementation Plan
(Final Tips for Your Plan)
Initial
Considerations
• Ensure the marketing plan is connected to the
firm’s business plan including organizationallevel mission, vision, goals, objectives, and
strategies (see additional video lesson for this)
• Conduct a situation analysis
• Macro-level external environment (see
additional video lesson for this)
• Competitive environment (see additional
video lesson for this)
• Internal environment (see additional video
lesson for this)
• Perform any needed market research
• Establish marketing goals and objectives
Develop Marketing
Strategies
Product-market combinations
Market segmentation, target marketing, positioning
Marketing mix strategies:
• Product/branding strategies
• Service strategies (delivery) (see additional video lesson for this)
• Pricing strategies
• Promotional strategies
Develop
Implementation Plans
• Programs/action plans for each
strategy including timetable,
assignment of responsibilities, and
resources required
• Forecasts and budgets
• Metrics for marketing control
• Provide for contingency planning
The Three Parts of Your
Marketing Strategies
Initial Considerations
Develop Marketing Strategies
Develop Implementation Plan
(Final Tips for Your Plan)
(2. Develop Marketing Strategies)
Select Your Target
Market
Fine-tune with your hotel (product)
(2. Develop Marketing Strategies)
Crafting Your Message
(Positioning)
• Analyze competitors (see
additional video lesson for
this)
• See where your USP and
differentiation fit within
competition, environment,
customers
• Create your main message
around that positioning
(2. Develop
Marketing Strategies)
Pricing Strategies
• Select pricing approach
• New/existing hotel
• Psychological Pricing &
sensitivity to prices
• Avoid Pricing Mistakes
(2. Develop Marketing Strategies)
Promotional
Strategies
• Once you have your message:
• Select channels where your customers
can be reached:
• Offline
• Online
Final Tips for Your Marketing Plan
• Stay flexible
• Utilize input, but don’t become paralyzed by analysis paralysis
• Don’t underestimate the implementation part of the plan
• Stay strategic, but also on top of the practical
• Give yourself and your team room to fail and try again
Source: Marshall, G. (2018). Marketing Management. [VitalSource Bookshelf]. Retrieved from https://bookshelf.vitalsource.com/#/books/9781260157857/
References
• Marshall, G. (2018). Marketing Management. [VitalSource Bookshelf].
Retrieved
from https://bookshelf.vitalsource.com/#/books/9781260157857/
• Kotler, P., Bowen, J. T., Makens, J. C., & Baloglu, S. (2017). Marketing
for hospitality and tourism (7th ed.). Harlow, UK: Pearson Education.
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