Executive training exercises in small hotel marketing

International Journal of Culture, Tourism and Hospitality ResearchEmerald Article: Executive training exercises in small hotel marketingJane Moriarty, Rosalind Jones, Jennifer Rowley, Beata Kupiec-Teahan

Article information:

To cite this document: Jane Moriarty, Rosalind Jones, Jennifer Rowley, Beata Kupiec-Teahan, (2009),"Executive training exercises in small hotel marketing", International Journal of Culture, Tourism and Hospitality Research, Vol. 3 Iss: 4 pp. 337 - 346

Permanent link to this document: http://dx.doi.org/10.1108/17506180910994550

Downloaded on: 14-09-2012

To copy this document: [email protected]

This document has been downloaded 1061 times since 2009. *

Users who downloaded this Article also downloaded: *

Haiyan Kong, Catherine Cheung, (2009),"Hotel development in China: a review of the English language literature", International Journal of Contemporary Hospitality Management, Vol. 21 Iss: 3 pp. 341 - 355http://dx.doi.org/10.1108/09596110910948332

Jane Moriarty, Rosalind Jones, Jennifer Rowley, Beata Kupiec-Teahan, (2008),"Marketing in small hotels: a qualitative study", Marketing Intelligence & Planning, Vol. 26 Iss: 3 pp. 293 - 315http://dx.doi.org/10.1108/02634500810871348

Vicent Tortosa, Miguel A. Moliner, Javier Sánchez, (2009),"Internal market orientation and its influence on organisational performance", European Journal of Marketing, Vol. 43 Iss: 11 pp. 1435 - 1456http://dx.doi.org/10.1108/03090560910989975

Access to this document was granted through an Emerald subscription provided by University of South Australia

For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information.

About Emerald www.emeraldinsight.comWith over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.

*Related content and download information correct at time of download.

Executive training exercises in small hotelmarketing

Jane Moriarty, Rosalind Jones, Jennifer Rowley and Beata Kupiec-Teahan

Abstract

Purpose – This paper’s aim is to help hospitality management executives and graduate students to

understand and to develop marketing expertise in the small hotel sector.

Design/methodology/approach – Case studies for three hotels illustrate some major marketing

challenges for the small hotel sector. Marketing activities are characterized by non-marketing, inexpert

marketing, implicit marketing, and sophisticated marketing categories. These categories are adapted

specifically for the small hotel sector.

Findings – Some hotels fall into a distinct category, while other hotels span multiple categories

depending on their involvement level in various marketing activities (e.g. marketing intelligence, or

promotion).

Originality/value – Training exercises highlight specific marketing issues relevant to small independent

hotels. Using the model, benchmarking suggestions are developed based on the hotel’s marketing

activity level. These exercises help practitioners to recognize this sector’s diversity due to a wide

spectrum of marketing styles and approaches employed by SME owner-managers within the hospitality

sector.

Keywords Hospitality management, Services marketing, Graduates, Training

Paper type Case study

Introduction

Like other small businesses, many small hotels struggle due to competition from large, large

competitors that develop and employ sophisticated marketing plans. The following training

exercise is based on a small hotel research study in Wales, UK. The study applied SME and

entrepreneurial marketing research to the small hotel sector (Moriarty et al., 2008). SME

marketing researchers propose that business success increases through greater attention

to marketing issues (Blankson and Stokes, 2002; Brooksbank et al., 2004). Marketing

planning also is important for small businesses by clarifying management thinking,

providing a sense of direction and introducing a marketing perspective to activities such as

setting objectives, motivating and directing staff, establishing priorities, and improving the

quality of market knowledge (Analoui and Karami, 2003; Carson and Cromie, 1989; Hill and

McGowan, 1999).

Part one reviews research relating to aspects of SME marketing, entrepreneurial

marketing and relationship marketing provides an understanding of marketing within the

small hotel context. Part one introduces the levels of marketing activity (LMA) model for

use in small hotels (Moriarty et al., 2008). LMA is adapted from Carson’s model (1990), a

model in frequent use in the SME and entrepreneurship literature. Part Two describes

three short case studies to illustrate different levels of marketing expertise in North Wales’

small hotels.

DOI 10.1108/17506180910994550 VOL. 3 NO. 4 2009, pp. 337-346, Q Emerald Group Publishing Limited, ISSN 1750-6182 j INTERNATIONAL JOURNAL OF CULTURE, TOURISM AND HOSPITALITY RESEARCH j PAGE 337

Jane Moriarty is a

Marketing Student and

Rosalind Jones is a

Lecturer in Business &

Management, both based

at Hen Goleg, Bangor

Business School, Bangor

University, Gwynedd, UK.

Jennifer Rowley is

Professor of Information &

Communications based at

Manchester Metropolitan

University, Manchester, UK.

Beata Kupiec-Teahan is a

Food Marketing Researcher

based at the Land

Economy Research Group,

Scottish Agricultural

College, Edinburgh, UK.

The case studies include a series of questions to increase learners’ benchmarking skills

respective to each hotel’s marketing capabilities. Applying the case studies to the LMA

model, learners decide where each hotel fits in the model and provide rationale for the

categorization. This report also offers two advanced training exercises and trainer guidance

notes that include model and exercise implications.

Marketing in small hotels

Over the last decade many authors note the relationship between a marketing orientation or

marketing effectiveness and a hotel’s performance (Cizmar and Weber, 2000; Nichols and

Roslow, 1989; Sin et al., 2005). Market growth and increasing competition have forced large

hotel groups to implement marketing strategies (Meidan and Lee, 1982; Tarrant, 1989).

Typically, the large hotels employ product differentiation, growth in new markets, high value,

or new branding strategies. Small independent hotels have fewer resources. They tend to

suffer inherent business, financial, and personnel constraints (e.g. lack of specialized

marketing expertise). These limited resources force small hotels to seek controlled growth

rather than sales, market share, and profit maximization strategies like larger firms (Gilmore

et al., 2001). Small hotel managers/owners typically are generalist with limited marketing

experience (Carson and McCarton-Quinn, 1995; Stokes, 1995). Applying conventional

marketing tools to small hotels unlikely will generate any real insights into how they interact

with customers, collect information about the external environment (e.g. competitors), and

develop their marketing mix (Hill, 2001.

Small hotels do have some marketing advantages. Typically, the owner-managers have

close contact with customers and they can be more flexible and adaptive to changes

compared to larger hotels. Small firms often use personal, social, and business networks for

information gathering, idea testing and advice; they draw on experiential knowledge to

intuitively develop their competencies (Carson, 1999; Carson and McCarton-Quinn, 1995;

Gilmore et al., 2001; Hill, 2001; Stokes, 2000). Customer relationships and word-of-mouth

are the key promotion tools for small hotels. Marketing intelligence often relies on business

and trade networks, a highly valuable competency when marketing hospitality.

Since service excellence is the core competency for the hospitality industry, hotels must be

aware of all service characteristics (e.g., intangibility, inseparability, variability, perishability,

and lack of transference of ownership) (Fisk and Tansuhja, 1985; Kotler et al., 2002;

Lovelock, 1983). These service characteristics impact both product delivery and optimal

marketing mix development. In addition other factors affect hotel operations and marketing:

seasonality; the interdependence on other tourism products; high fixed costs of operations;

and distribution constraints (e.g. product availability during a specific time and place).

Effective demand forecasting helps to manage seasonal fluctuations. The interdependence

of tourism products affects a destination’s overall attractiveness because consumers make

purchase decisions based on a combination of products and services, such as

accommodation, visitor attractions and facilities like shops and restaurants. Affiliates’

marketing campaigns and package tours often are developed with tourist boards,

attractions and travel agents. High fixed costs present a challenge when seasonal demand

exists. Fortunately, low variable costs mean that additional sales result in profit at little or no

extra cost. Consequently, generating extra sales is another principal feature of tourism

marketing, along with analyzing daily occupancy performance, generating off peak

demand, and participating in affiliate marketing (Edgar, 1997; Jeffrey and Barden, 2000;

Middleton, 1994).

Other researchers believe relationship marketing is the key to satisfying customer demands.

These authors recognize the importance of customer retention (Shoemaker and Lewis,

1999) and the need to measure and manage relationship quality antecedents and

consequences (Kim and Cha, 2002). On the other hand, customer relationship management

poses challenges for small independent hotels. Imrie and Fyall (2000) note that large hotels

have sophisticated CRM systems based on strong branding and loyalty schemes. Small

hotels typically do not have these advantages because many customers do not re-visit small

hotels. Visitors typically do not visit the same location for business and leisure and are

PAGE 338 j INTERNATIONAL JOURNAL OF CULTURE, TOURISM AND HOSPITALITY RESEARCH j VOL. 3 NO. 4 2009

therefore unlikely to use the same hotel for both functions. Leisure customers often visit

different locations in pursuit of variety. Small hotels are challenged by both customer

acquisition and customer retention. Recommendations to assist small hotels include careful

management of word-of-mouth for customer acquisition (Stokes and Lomax, 2002) and a

combination of a transaction and relationship approach to marketing for customer retention

(Coviello et al., 2006).

The levels of marketing activity model

Moriarty et al.(2008) adapts Carson’s (1990) hotel sector model and uses SME marketing

research to analyse small hotel marketing strategies. The model is based on the evolution of

marketing practice (the relationship between the business life-cycle and stages of

marketing) and the owner/manager’s controlling influence upon the firm’s marketing activity

– two themes often affecting small firms’ marketing plans (Carson and Cromie, 1989).

Moriarty et al.’s model for small hotels (see Table I) categorizes hotels based on key aspects

of marketing knowledge and activities.

Non-marketing

Non-marketing firms define their target market very generally (e.g. young people), develop

no plans for the future, and collect little data about their customers. These firms do not collect

or use market information because they believe no significant event has affected the market

conditions. Non-marketers only consider competitors within the immediate vicinity. They are

unable to communicate their competitive advantage to their target market. Non-marketers

employ few promotional tools, utilize cost plus pricing strategies, and react to complaints

rather than provide customer service – after sales service are viewed as unnecessary.

Inexpert marketing

Inexpert firms understand marketing’s relevance and attempt to implement a business

strategy; however, these companies do not have the required knowledge or experience to do

so successfully. Firms in this category have not become engaged in marketing as a natural

part their business activity. They are describable as having a ‘‘non-instinctive’’ ability to

market. Inexpert firms define their market in terms of size, location, and possibly competitors.

With minimal or no understanding of segmentation, inexpert firms do not employ targeting

techniques despite an awareness of their market position. Although inexpert firms have some

knowledge of competitors (usually firms in the same geographic region offering similar

benefits and prices), they do not consider business in other areas or sectors to be a threat. The

inexpert marketer knows her customers, distinguishes between key and normal customers

(although they are not segmented) and possibly holds their contact details; however, previous

guests are not actually contacted. A few relevant sources of market information are gathered,

informally recorded and casually used to inform decisions. The inexpert marketer is aware of

key events that affect the market’s external environment. The competitive advantage can be

described by linkages to competitors and customer benefits. Several promotional methods

are used, although some may not be suitable or effective. A marketing mix may be devised;

however, the elements are not complementary. Pricing decisions are based on demand and

competitors’ prices; however, pricing is viewed as a function of finance rather than a marketing

tool. Clever pricing decisions such as timely discounts are made. Although the inexpert

marketer considers customer service necessary, these firms have little awareness of customer

relationship synergies.

Implicit marketing

The implicit marketing firm defines markets in terms of segments, size and location.

Segments are not developed fully, but some effort is made to implement target marketing.

Implicit marketers know their total number of customers and customer base. They

differentiate between repeat and first time customers. Increasingly, marketing has become

an instinctive activity that includes using numerous complementary market information

sources applied in an informal and balanced manner to gain a competitive edge. This firm

understands significant market events and their impact on the firm, explains how

VOL. 3 NO. 4 2009 j INTERNATIONAL JOURNAL OF CULTURE, TOURISM AND HOSPITALITY RESEARCH j PAGE 339

competitive advantage sets the firm apart from competitors (although cannot detail how it

defeats them), and explores areas or markets for future expansion. The implicit firm utilizes

several proactive promotional methods and skillfully manages a marketing mix. Price is

based on market demand, competitor’s charges, and the customers’ value perceptions. The

implicit firm uses price as a marketing tool to complete the product. Service is viewed as an

opportunity to improve customer relationships and the implicit firm regularly contacts

customers to ensure needs are being met and to inform them about new offerings.

Table I The levels of marketing activity’ model with detailed profiles

Marketing level

Marketing activity Non-marketing Inexpert marketing Implicit marketingSophisticatedmarketing

Market knowledge Very general – no plans Defines market in termsof size, location,competitors; no targeting

Defines market in termsof size, location, andsegments; conductssome targeting

Full understanding of themarket and peripheralmarkets, with welldeveloped marketsegments and targeting

Competitors Considers immediatecompetitors only

Some knowledge ofclose competitors

Some in-depthknowledge of closecompetitors, related tounderstanding ofcompetitive advantage

Full awareness of closeand peripheralcompetitors whichinforms development ofcompetitive position

Customers Little knowledge of whocustomers are

Knows customers; hascontact details – butdoes not use these, orsegment customers

Aware of size andsegments in customerbase; differentiatesbetween key and othercustomers, possibly withaid of CRM database

Customer relationshipsmanaged throughsophisticated CRMsystem. Loyalty schemesoften used

Market information Collects none Limited and informalapproach to collection

Numerouscomplementary sourcesapplied informally tocreate and maintain acompetitive advantage

Relevant sourcesharvested regularly andconsistently andinformation recorded forformal decision makingand planning

Significant event Believes none hasoccurred

Aware of key events Full understanding ofmarket events and theirimpact

Is able to anticipate orinfluence market events

Competitive advantage Poor awareness andarticulation

Can describecompetitive advantage

Understand the value oftheir competitiveadvantage and hasplans for developmentsto capitalize on it

Can clearly definecompetitive position andhow the product offeringdefeats those ofcompetitors

Promotion Few tools used Uses severalpromotional methods,but they are not alwaysthe most suitable

Uses several proactivepromotional methods

Is integrated, proactiveand effective

Price Based on cost pluspricing

Based on what themarket will bear andcompetitors’ prices

Based on what themarket will bear,competitors’ changes,and customers’ valueperceptions

Used to complement themarketing mix, addingperceptions of value orprestige

After-sales service Deemed unnecessary Recognized asnecessary, but limiteduse of opportunities

Viewed as an opportunityfor proactiveengagement withcustomers

Viewed as an opportunityto interact with thecustomers, gatherinformation and buildrelationships


Sophisticated marketing

The firm with sophisticated marketing practices undertakes marketing activities as a fully

coordinated and integrated program of activities. Like the implicit marketer, the

sophisticated firm fully understands both the local and peripheral markets. Marketing

segments are developed and carefully designed targeting techniques are employed to fit

into a long term strategic marketing plan. Sophisticated marketers can define their

competitive position and they understand how to develop an offering to defeat competitors.

There firms undertake detailed competitor analyses, consider competitors in other sectors,

and fully understand their strengths and weaknesses. The sophisticated firm also develops

computerized customer databases to segment customers and to store contact and

purchase details, and create products tailored to specific customer segments. To maintain a

competitive advantage or plan for contingencies, highly detailed and relevant market

information sources are gathered consistently. This database is used for formal decision

making and planning. Marketing communications are integrated, proactive, and effective.

Pricing policy compliments the marketing mix (e.g. to increase consumer perception of

prestige). Customer service is an opportunity to interact with the customer, gather

information, and build relationships. Customer loyalty programs and referral schemes are

sometimes employed as well as after sales services.

Hotel case studies

Hotel 1

This hotel is located in a small coastal town in North Wales. The hotel has 15 rooms, employs

five people full time and two part-time. The Wales Tourist Board awarded two stars to this

18-year-old hotel. Two directors own the hotel, one of whom manages the hotel on a daily

basis. The manager defines his market as being mainly commercial business Monday to

Thursday, parents visiting children at the local university on weekends, and a few leisure

travelers who visit for the golfing packages offered.

The manager feels that there ‘‘aren’t enough competitors in the area,’’ which results in a room

shortage for customers. He views competitors to include other local hotels, guest houses,

and the University. He feels that ‘‘the hotel enjoys several competitive advantages, such as a

great location, membership of the Welsh Tourist Board, value for money and a high level of

repeat business.’’ Although Hotel 1 does not keep customer records, the manager believes

that they are knowledgeable about their regular customer base. Most staff members know

regular customers on a first name basis. On the other hand, Hotel 1 does not know how many

guests have stayed at the property. Previous customers are never contacted. The manager

does not gather or keep market information. When he wants to know something specific

such as competitor’s prices, he uses the internet. The internet is described as ‘‘the key event

that has affected the hotel sector’’ due to the availability of online booking systems. The

inexpert marketing hotel feels that the online booking systems have increased sales;

however, the manager is not aware that the online booking sites also show that the hotel

received negative feedback from several customers.

Promotional methods include a web site and other tourist web sites. The hotel also

advertises regularly in Golfing Monthly magazine. However the manager states that ‘‘We

don’t advertise much as we are usually very busy and we don’t want to waste money on

advertising, so we are very selective.’’

Prices have increased gradually as the hotel continues making improvements and

increasing quality. Recently, prices have stabilized because the manager feels that demand

has declined. Pricing decisions are based on the manager’s gut feeling. His overall pricing

strategy is to offer a competitive price and provide good value. The hotel does not have a

marketing plan. The product strategy is to offer good quality and clean accommodations.

According to the manager, ‘‘Marketing is not important because we are very busy at the

moment.’’


Hotel 2

This hotel employs nine people, three are employed part time. Located in a small town along

the North Wales coast, the 20-room hotel is 20 years old and is managed by a sole proprietor.

Occupancy rates are dropping for this hotel. The owner-manager attributes the decline to

fewer visitors despite reports that the Welsh tourism industry is experiencing higher

occupancy rates than last year. Hotel 2’s owner/manager defines competitors as other hotels

in the town. She does not consider other tourist accommodation providers as direct

competitors (e.g. caravan parks or holiday cottages). She describes her customers as

holidaymakers of all ages. Market segmenting or targeting techniques are note employed.

As they are making a profit, the owner-manager does not see the need for changes. The

manager also noted that they are uncertain about their competitive advantage. When further

prompted, she disclosed that the competitive advantage may be a combination of low rates

and close proximity to the city center. The only market information gathered comes from

informal conversations with customers. Typically, guests tell the hotel employees where they

are from and places they have visited. Hotel 2 employees feel that they have a loyal

customer base, mainly families and older couples, who return to the hotel on a regular basis.

When prompted, the owner/manager stated that she can ‘‘distinguish between key and

normal customers.’’ Key customers are defined as the ‘‘group of repeat customers.’’ The

hotel does not have a database to store customer information. Generally, the staff can only

remember vague details of where a few key customers live. Although Hotel 2 does not have a

web site, the property is featured on a few search engines and online hotel booking sites.

The hotel feels that, ‘‘This is all the promotion that is necessary and advertising is an expense

that does not offer a return.’’ Pricing policy is based on ‘‘what the market will bear’’ and after

sales service is non existent.

Hotel 3

Hotel 3 is situated in Snowdonia National Park, an area of designated as outstanding natural

beauty. The hotel is over 100 years old and has four Wales Tourist Board Crowns for quality.

The hotel also has 70 rooms (ten are deluxe) and 27 employees of which four are part-time.

Primarily, male owner/manager is responsible for the marketing function. The reception staff

also performs marketing functions on occasion. This manager defines several target

markets: golfers, walkers, trekkers, business people, weddings, and holidaymakers. Golfers

are the primary target market because the hotel is adjacent to, and has strong links with a

Royal golf course. The secondary market is people engaged in other outdoor activities (e.g.

trekkers, walkers and climbers); the hotel often hosts groups of 50-60 outdoor activity

holidaymakers. Business people and weddings make up a smaller, but regular market as the

hotel has conferencing facilities and function rooms. The owner/manager refers to standard

holidaymakers as casual visitors that comprise the majority last minute bookings.

Hotel 3 views two nearby hotels as key competitors as they offer the same facilities and price

range. He also describes ‘‘quality hotels like ours’’ as competitors. Hotel 3 executives do not

consider competition from outside the immediate area to be a direct threat to Hotel 3’s

market share. This hotel’s competitive advantage is described in terms of deluxe rooms,

secluded location, high quality and high ratings. The hotel uses a computerized customer

database, which stores customer details and segments guests based on their visit’s

purpose (e.g. golfer; trekker; business; holiday). The 470 regular customers (which the

manager claims to know the majority of by name) are contacted regularly, via electronic or

postal mail to inform them about hotel news and special offers.

Market information generally is collected informally from customers. Sometimes online travel

agencies provide the hotel with information on market trends and customer preferences. The

most significant change in the marketplace is a noticeable shift in customer expectations.

‘‘Expectations have changed radically; today’s customers want more comfort for the same

price. Also competition is higher so we must provide excellent service and accommodation,

yet we can’t charge for it.’’

Currently, this hotel is achieving 70-80 percent occupancy rate during the summer season

and 45-50 percent during the off-peak period. Promotional methods employed by Hotel 3


are integrated carefully. Advertisements are placed in local newspapers in the Midlands and

Wirral areas (England) because the manager feels guests from this location are most likely to

visit while on holiday. Brochures are distributed to travel agents and at golf courses.

European and UK online booking agents and shops are offered off peak special offers to

reduce seasonal demand fluctuations. This hotel operates a web site which provides

accurate and informative information, but the site does not allow online booking and the

overall appearance has an amateurish quality.

Local competition and the prices of similar hotels elsewhere govern pricing in the UK.

Pricing policy is designed to increase footfall midweek and reduce demand on Bank

holidays. The owner/manager stated that he did not mind offering discounts to encourage

mid week bookings because the increased bar and restaurant sales more than compensate

for the lower booking rates. Hotel 3 has a comprehensive marketing plan which is reviewed

every six months. The hotel’s primary objective is to increase turnover by 8-10 percent.

Marketing is considered to be equally as important as human resources.

Training exercise questions

After reading the case studies and using the detailed ‘‘levels of marketing activity’’ model

(Table I), answer the following questions:

1. Hotel 1:

B Where do you consider this hotel to reside on the model?

B What are the reasons for your decision?

2. Hotel 2:



3. Hotel 3:



4. Advanced training exercise. Using the literature reviewed and cases studies outlined in

this paper, write a paragraph of no more than 150 words outlining how marketing for these

hotels may be improved considering the following two aspects:

B Planning new marketing activities.

B Maintaining customer relationships.

5. Advanced training exercise. Write a paragraph of six to ten sentences of no more than

100 words describing the main issues for marketing in small hotels in your locality and

how some of these issues could be resolved by using a more strategic approach.

Trainers’ notes

Question 1

Hotel 1 is in the ‘‘inexpert marketing’’ category. This hotel understands segmenting and

targeting techniques and is utilising them to customise their offer and make specific targeted

communications to the golfing market. The company’s website is well designed, accessible

and features an online reservation system, a downloadable brochure and details of special

offers. Surprisingly, the hotel has received negative comments from customers that are

publically posted, yet the management has failed to address these complaints. Also, Hotel 1

is achieves high occupancy levels because of limited competition, the best location and the

facilities and quality ratings are adequate for the limited competitive landscape. This lack of

competition and negative publicity leaves the firm open to the threat of new market entrants.

The lack of planning suggests that the hotel will be unprepared for future changes. Although

the inexpert hotel currently is successful, the competitive environment could change quickly.


Question 2

Hotel 2 is a ‘‘non-marketing’’ hotel. Failure to formally gather readily available customer

information is a lost opportunity. Had management collected this information, effective

marketing communications strategies could be implemented. For example, as the hotel

could contact old customers to inform them about new promotions, implement a referral

scheme, or encourage hotel staff to greet customers by name during the check-in process

and at other interactions during their stay. These steps would improve customer

relationships and quality perceptions.

Although hotel does not feel the need to spend money on marketing, the numerous

inconsistencies suggest their understanding of a marketing orientation and the competitive

environment leave the firm in a dangerous position. A general lack of planning, market

awareness and understanding, and a low level of marketing knowledge and experience are

evidence that this hotel’s customer base is being eroded by competitors who adapting to

changes in the external environment and are experiencing higher occupancy levels.

Question 3

This hotel falls into the ‘‘implicit marketing’’ category. Although this hotel has a marketing

plan, a computerized customer database, and a well-organized promotional mix, the

evidence suggests that firm does not gather sufficient market information or consider

competitors in other locations, price ranges or sectors. Currently, this hotel achieves 70-80

percent occupancy during the summer season and 45-50 percent during the off-peak

period. To improve booking rates, Hotel 3 should redesign the website to create a more

professional image. Online booking also would be a great improvement. The hotel also

should implement joint marketing efforts with other local tourism stakeholders to attract more

visitors to the area.

Question 4

This exercise allows students to apply aspects of the literature reviewed in the paper. Good

answer will include some of the following points:

B Marketing activities for hotels and the limitations for small hotel owner-managers.

Although each small hotel employs some marketing strategies, their degree of

sophistication differs. Many owner/managers suffer from the misconception that

effective marketing requires a huge budget and implementation is complicated.

However, the study has shown how small hotel specific marketing (such as using

customer information to provide a personalized, high quality customer service and an

enhanced reputation) can be simple and low cost. A straightforward approach to

improving SME marketing competences fits with SME characteristics and suits their need

for basic marketing techniques. The research shows that considerable potential exists for

SME hotels to strengthen their marketing competencies and improve performance,

illustrated by the fact that none of hotels within the case study achieved the highest,

‘‘sophisticated’’ category identified by Moriarty et al. (2008).

B The value of word-of-mouth recommendation for repeat customers and the use of network

relationships. Hotel 1, the non-marketing hotel is extremely casual about customer

relationships. Hotel 2, the inexpert marketing hotel is still informal in their approach to

customer relationships because they make efforts to know their customers. Hotel 3, the

implicit marketing hotel, has a more formal system for recording and keeps in contact with

their customers. Surprisingly, Hotel 3 did not report performing a data analysis or making

any other use of customer data beyond electronic direct marketing.

Question 5

Student should consider the issues for small hotels in their own context. Although SME

marketing planning and activities do not fit the traditional notions of marketing which have

emerged in the context of larger businesses, small businesses can adopt a more pragmatic

and intuitive approach and make significant use of networks and word-of-mouth. Joining


support networks such as tourism agency networks, gaining government support to gain

tourism incentives, using e-commerce, and creating a marketing consortium are all useful

strategies.

Important notes for the trainer

Trainers should note that the model’s categories (non-marketing, inexpert, implicit, and

sophisticated) small hotels are not mutually exclusive. Some hotels may exhibit different

engagement levels for different activities. For example, a hotel may be non-marketing in

marketing knowledge, but inexpert marketing in terms of customer knowledge and

engagement. In general, the group of small hotels participating in this study could be

categorized as non-marketing in every area. The model adaptation proposed in this paper,

shows that the group does have some marketing engagement and fit the category inexpert

marketing, in respect of areas such as customer knowledge and relationships, awareness of

significant events, establishment of competitive advantage, pricing strategies, and after

sales service.

References

Analoui, F. and Karami, A. (2003), Strategic Management in Small and Medium Enterprises, Thomson

Learning, London.

Blankson, C. and Stokes, D. (2002), ‘‘Marketing practices in the UK small business sector’’, Marketing

Intelligence & Planning, Vol. 20 No. 1, pp. 49-61.

Brooksbank, R., Kirby, D. and Taylor, D. (2004), ‘‘Marketing in ‘survivor’ medium-sized British

manufacturing firms: 1987-1997’’, European Business Review, Vol. 16 No. 3, pp. 292-306.

Carson, D. and Cromie, S. (1989), ‘‘Marketing planning in small enterprises: a model and some empirical

evidence’’, Journal of Consumer Marketing, Vol. 7 No. 3, pp. 5-17.

Carson, D. (1990), ‘‘Some exploratory models for assessing small firms’ marketing performance

(a qualitative approach)’’, European Journal of Marketing, Vol. 24 No. 11, pp. 8-51.

Carson, D. and McCarton-Quinn, D. (1995), ‘‘Non-practice of theoretically based marketing in small

businesses – issues arising and their implications’’, Journal of Marketing Theory and Practice, Vol. 3

No. 4, pp. 24-32.

Carson, D. (1999), ‘‘Marketing for small-to-medium enterprises’’, in Baker, M.J. (Ed.), The Marketing

Book, 4th edition, Butterworth-Heinemann, Oxford, pp. 621-38.

Cizmar, S. and Weber, S. (2000), ‘‘Marketing effectiveness of the hotel industry in Croatia’’, International

Journal of Hospitality Management, Vol. 19 No. 3, pp. 227-40.

Coviello, N., Winklhofer, H. and Hamilton, K. (2006), ‘‘Marketing practice and performance of small

service firms’’, Journal of Service Research, Vol. 9 No. 1, pp. 38-58.

Edgar, D.A. (1997), ‘‘Capacity management in the short break market’’, International Journal of

Contemporary Hospitality Management, Vol. 2 No. 2, pp. 55-9.

Fisk, R. and Tansuhja, P. (1985), Services Marketing: An Annotated Bibliography, American Marketing

Association Publications, Chicago, IL.

Gilmore, A., Carson, D. and Grant, K. (2001), ‘‘SME marketing in practice’’, Marketing Intelligence &

Planning, Vol. 19 No. 1, pp. 6-11.

Hill, J. (2001), ‘‘A multidimensional study of the key determinants of effective SME marketing activity, part 1’’,

International Journal of Entrepreneurial Behaviour & Research, Vol. 7 No. 5, pp. 171-204, Part 2: Vol. 7 No. 6,

pp. 211-35.

Hill, J. and McGowan, P. (1999), ‘‘A qualitative approach to developing small firm marketing planning

competencies’’, Qualitative Market Research: An International Journal, Vol. 2 No. 3, pp. 167-75.

Imrie, R. and Fyall, A. (2000), ‘‘Customer retention and loyalty in the independent mid-market hotel

sector: a United Kingdom perspective’’, Journal of Hospitality and Leisure Marketing, Vol. 7 No. 3,

pp. 39-54.


Jeffrey, D. and Barden, R.R.D. (2000), ‘‘An analysis of daily occupancy performance: a basis for

effective hotel marketing?’’, International Journal of Contemporary Hospitality Management, Vol. 12

No. 3, pp. 179-89.

Kim, W.G. and Cha, Y. (2002), ‘‘Antecedents and consequences of relationship quality in the hotel

industry’’, International Journal of Hospitality Management, Vol. 21 No. 4, pp. 321-38.

Kotler, P., Roberts, E.L., Roberts, N. and Lee, N. (2002), Social Marketing: Improving the Quality of Life,

Sage Publications, Thousand Oaks, CA.

Lovelock, C.H. (1983), ‘‘Classifying services to gain strategic marketing insights’’, Journal of Marketing,

Vol. 47 No. 3, pp. 9-20.

Meidan, A. and Lee, B. (1982), ‘‘Marketing strategies for hotels’’, International Journal of Hospitality

Management, Vol. 1 No. 3, pp. 169-78.

Middleton, V.T.C. (1994), Marketing in Travel and Tourism, Butterworth-Heinemann, Oxford.

Moriarty, J., Jones, R., Rowley, J. and Kupiec-Teahan, B. (2008), ‘‘Marketing in small hotels: a qualitative

study’’, Marketing Intelligence & Planning, Vol. 26 No. 3, pp. 293-315.

Nichols, J.A.F. and Roslow, S. (1989), ‘‘Segmenting the hotel market’’, FIU Hospitality Review, Vol. 7

No. 1, pp. 39-47.

Shoemaker, S. and Lewis, R.C. (1999), ‘‘Customer loyalty: the future of hospitality marketing’’,

International Journal of Hospitality Management, Vol. 18 No. 4, pp. 345-70.

Sin, L.Y.M., Tse, A.C.B., Heung, V.C.S. and Yim, F.H.K. (2005), ‘‘An analysis of the relationship between

market orientation and business performance in the hotel industry’’, International Journal of Hospitality

Management, Vol. 24 No. 4, pp. 555-77.

Stokes, D. (1995), Small Business Management, 2nd ed., D.P. Publications, London.

Stokes, D. (2000), ‘‘Entrepreneurial marketing: a conceptualization from qualitative research’’,

Qualitative Market Research: An International Journal, Vol. 3 No. 1, pp. 47-54.

Stokes, D. and Lomax, W. (2002), ‘‘Taking control of word of mouth marketing: the case of an

entrepreneurial hotelier’’, Journal of Small Business and Enterprise Development, Vol. 9 No. 4,

pp. 349-57.

Tarrant, C. (1989), ‘‘UK hotel industry-market restructuring and the need to respond to customer

demands’’, Tourism Management, Vol. 10 No. 3, pp. 187-91.

About the authors

Jane Moriarty was an undergraduate business student at Bangor Business School. She isnow employed as a marketing manager in North Wales.

Rosalind Jones is a Lecturer at Bangor Business School, Bangor University. Her PhDresearch topic is entrepreneurial marketing in small businesses. She teaches SMEmarketing, relationship marketing, marketing strategy and management. Rosalind Jones isthe corresponding author and can be contacted at: [email protected]

Jennifer Rowley is Professor of Information and Communications at Manchester MetropolitanUniversity. Her research interests are wide-ranging and embrace information andknowledge management, e-marketing, branding, and relationship marketing.

Beata Kupiec-Teahan is a marketing economist at the Land Economy R&D of ScottishAgricultural College. Her research interests include applied marketing modelling, (food)marketing research and marketing research methodologies.


To purchase reprints of this article please e-mail: [email protected]

Or visit our web site for further details: www.emeraldinsight.com/reprints

Date post:	06-Oct-2016
Category:	Documents
Upload:	beata
View:	212 times
Download:	0 times

Executive training exercises in small hotel marketing

Documents