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Analysis of Hospitality Industry Coursework

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Abstract

It has been suggested that marketing has evolved from the early days of production orientation to today’s societal marketing concept (Kurtz, MacKenzie, and Snow, 2010). However, not all companies have adopted the marketing concept, let alone the societal marketing concept (Kurtz, MacKenzie, and Snow, 2010). This research paper critically assesses why some of the major companies in the hospitality industry have still been operating under the old school production, product or selling orientations. As well, the paper gives an overview on some of the ways through which these orientations have been impacting on the companies’ profitability and how they have been able to satisfy their customer and retain them as well (Quester and McGuiggan, 2006).

Introduction

Over the past years, it has been noted that marketing has evolved from the early days of production orientation to today’s societal marketing concept (Kotler and Armstrong, 2005). However, not all companies have adopted the marketing concept, let alone the societal marketing concept (Kurtz, MacKenzie, and Snow, 2010). For instance, the hospitality industry is one of the industries which have the greatest need in adopting the marketing concept towards maximum realizing its goals and objectives towards meeting the needs of the clients and customers (Bowie and Buttle, 2004). With the hospitality industry, it shall be seen that it consists of a wide category of specific fields which operate in lodgings, event planning, cruise lines, restaurants, theme parks, and transportation, and sometimes the tourism industry (Tesone, 2010).

Generally, the hospitality industry has been a multi-billion dollar operating industry which is aimed in providing leisure to individuals (Richard, 2007, p. 27). This would therefore mean that there should be management, application of human resource applications, and marketing as well (Kotler and Armstrong, 2005). In this paper I shall critically assess why some companies in the hospitality industry have still been operating under the production, product or selling orientations and come up with the impact which this kinds of orientations might have on the profitability of the companies and customer satisfaction and retention (Greenwalt, 1995). This would be done provision of examples on specific companies that have been operating currently under these different orientations.

Justification for my Selection of the Hospitality Industry

To be specific, all industries have a reason for operating within different orientations towards improving their performance and meeting the requirements and the overall needs of the clients of the companies. However, I feel that the hospitality industry should be keenly analyzed in monitoring the marketing and product orientations which are applied in the industry due to some of the unique characteristics of the industry (Smith, 2001, p. 30). For instance, the industry will be noted to have direct linkage to the customers towards the provision of services and goods. The hospitality would be seen to cover an industry which has wide range of companies and organizations which offer food-related services as well as accommodation to their clients (Timothy, 2003).

The hospitality industry has been divided into a number of sectors depending on the kind of services and goods made available to the clients. All these sectors include the ones offering accommodation services, beverages and food, events and meetings, gaming activities, recreational facilities and entertainment, tourism services and visitors’ information (Chataigner, 1992, p. 53).

Methodology for the study

Since this is a research study that was aimed in finding why some companies had not adopted the new orientations of societal marketing, we needed to come up with a methodology that would help in gathering the appropriate results from the study for analysis. The first kind of approach was to dig deep into the websites of specific companies within the hospitality industry to understand some of the measures and selling orientations that were being put in place.

This would assist in getting the relevant information from the companies for effective discussions. Also, the use of questionnaires was employed in a number of companies with the hospitality industry to get the relevant data on what was being done and the different orientations that were being employed. The questionnaires had open ended questions and were distributed evenly for effective data capture that would not be biased. This kind of study approach was also done by ensuring that there were a number of objectives that had been set before the research study.

Why do some companies still operate under the production, product or selling orientations

In the past days, the kind of business operation which had been practiced had rotated around production and selling orientations which were not quite involving since the approach was only between the company and the customers of the business. Looking at this kind of orientation, the amount of income which would be earned by the company would be low, and the benefits would as well below.

However, the fact of the matter is that this kind of approach had just been fit for the level of technology and human development. However, as years went by, there came different approaches which had been aimed in ensuring that business operations would be done in a more advanced manner hence improving customer-business relationships hence resulting in better gains and revenues for the company (Cannon, 1992, p. 24). Because of this kind of approach or orientations, many more companies in the hospitality industry have been able to change accordingly hence improving their business performance (Paul, 1994, p. 35).

However, very many companies in the hospitality industry have not been able to adopt this new kind of technology which has seen them unable to earn the necessary revenue hence keeping their profitability down on the low (Hsu and Powers, 2002). Some of these companies include Casino Royal and Crown Corporate operating the United States and Canada, and part of the hospitality industry (Quester and McGuiggan, 2006).

There are a number of factors that have been causing these companies not to adopt the new societal marketing orientation (Lees & Yuen, 1991). For instance, the lack of enough capital and resources has been making the companies unable to put all the necessary measures in place towards the new orientation. As well, the technological aspects have also been playing a major role in hindering the paces in which the new measures are to be put in place. Due to this, the companies have continued to rely on the old methods of marketing and management (Mawson, 2000). There is also the need to have new human resource which would as well translate to increased financial requirements which the companies might not be willing to adopt (Jones, 1997, p. 56).

Due to this kind of approach, there has been reduced profitability on the companies due to decreased revenues (Quester and McGuiggan, 2006). It has also been hard for the companies to attract new clients and customers while at the same time seeing the customers of the company leaving. It would therefore be necessary that new measures are put in place within the management of company so that the greatest gains and profits can be realized in the industry (Sheela, 2005).

Overall management should be addressed through putting in place the necessary measures and decision support systems which would improve how new marketing strategies would be incorporated in the hospitality industry (Altinay and Paraskevas, 2008). This new kind of approach would result in the greatest profitability for the companies in the hospitality industry (Chataigner, 1992, p. 121).

Once a company has been unable to adopt the new orientation, the result is that there would be decreased performance since very few clients and customers shall be reached. This would as well kill the positive performance and relationship between the company and the customers. Continued poor performance would result in customer loss. This is because a small number of customers shall be reached.

As well, very few customers shall be retained in the company hence showing threatened performance of the companies in the hospitality industry (Cannon, 1992, p. 24). This has been the reason why companies and all businesses operating within the hospitality industry come up with the necessary measures in ensuring that there is the adoption of proper business management and marketing orientations which would have improved performance on the business (Mawson, 2000).

Specifically, due to the present nature of current societal marketing orientation, it shall be noted that a number of companies in the hospitality management have been unable to get the necessary gains and profits in their operations. This has seen them unable to achieve their goals, and the reason it would be suggested that they adopt the new approaches towards improved productivity. Because of this, it would be something appreciable that the current hospitality companies adopt the new approaches so that they can achieve the greatest revenues (Hu & Duval, 2003, p. 76). As well, the hospitality industry is more or less involved in direct business with the customers, and therefore it would be necessary that there adoption of the present societal marketing operation which would result in provision of the necessary services to the customers and clients of the business (Childs, 2006).

Present Societal Marketing Orientation

Due to this new kind of approach, a number of companies have been seen to effectively change with the system towards societal marketing orientation (Wood and Brotherton, 2008). This has been done in SYSCO International which is a reputable company in the United States and other parts in the world. Another company which has adopted this is Hilton hotels which have been in operation in very many countries in the world.

Upon adoption of this orientation, there have been a number of advantages that have been noted as a result. This has seen the companies being able to achieve greater gains through reaching out to the specific target clients and customers who would bring better returns on the company (Goode, 1995). This has also been improved through the application of business advertising strategies and approaches which are oriented towards reaching the greatest customers (Nashima, 1994, p. 46). This has seen these two companies in the hospitality industry being able to achieve the greatest gains in terms of profits and retaining their customers as well (Quester and McGuiggan, 2006).

However, as we have seen above, there are a number of issues that have been making majority of the companies unable to utilize the present societal marketing orientation. For instance, there have been a lot of cost implications which means that the individual companies would have to incur greater expenses towards the new adoption. As well, there has been the issue of having an overall change in the management.

Because of this fact, it has been something hard for a number of modern companies in the hospitality industry to adopt the new technology. There would be the need of have change management in which people with modern training in the marketing field would be required. Because of this, different companies have been seen not willing to adopt the new orientation despite the benefits that would be expected from the kind approach. Therefore, it would be needed that there is new management, adoption of new operational structures, monitoring of current marketing trends and the incorporation of decision making strategies which would eventually result in improved business performance hence improving the revenue for the company (William, 2009, p. 45). This way the hospitality industry would be able to grow and as well provide the best services to all the people whom it serves.

It is through appropriate adopting of this new orientation towards selling and marketing that a given company, firm, or business can be able to realize all its overall goals, mission and objectives. The most common approach that has been on the use of the adaptive selling strategy through which the sales personnel would be required to acquaint themselves with the market situations and the needs of the customers to provide them with the best selling advantage (Jackson, 1997). With this kind of approach, it would be easy for any given company in the hospitality industry to reach the greatest number of customers and as well retain them. This would result in overall economic development and sustenance (Lees & Yuen, 1991, p. 53).

Ethical and Social Issues with the Orientation

To achieve proper selling orientation within the societal marketing practice, it would be necessary that there is the ethical consideration put into consideration. For instance, how advertisements are made should not cause any societal harm or alarm. As well, human interaction should be done in a proper manner in accordance with the ethical theories and principles (Wolfe, 2001, p. 55). Different industries and companies in the hospitality industry have to offer materials such foods and drinks without going beyond the specific age limits through which specific drinks and foods have to be supplied. This shall guarantee legal proceedings against the given industry if the social and ethical issues have not been greatly addressed. Once this has been done positively, overall economic development and sustainability shall be realized.

Conclusion

As we have seen, it will be seen that the best way through which we can be in position of having the companies in the hospitality industry providing the best services to the customers and gaining the greatest revenue is through the adoption of this new approach. This will end up ensuring that there is societal marketing orientation in which the client is reached one on one and given the given needs which he or she required (Wolfe, 2001, p. 56).

It has been a true and worth suggestion that marketing is something that has been able to evolve from the early days of production orientation to the modern societal marketing concept which has been noted to provide the company and the individual customers with the best services which are of high quality and provide the best needs. However, not all companies have been noted to adopt this new marketing concept, let alone the societal marketing concept.

Therefore, it would be a good thing that the companies that have not yet adopted the system in the hospitality industry do so towards the achievement of the greatest gains. This new kind of orientations will result in positive impacts which have improved overall profitability and the satisfaction of customers and overall retention. This would see more and more customers attracted into the business, and as a result bringing in the greatest gains to the company and in the long run retaining them.

Reference List

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Cannon, K., 1992. Food and health: the experts agree. London: Consumers’ Association Press.

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Childs, N., 2006. Business backgrounder. Oxford: Oxford University Press.

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Lees, M. & Yuen, W., 1991. ‘The Chinese Speaking Asian: The effects of Time Purchase Behaviour.’ Asian Journal for Business Performance, 13(2), 23-89.

Mawson, S. 2000. The fundamentals of hospitality marketing. New York: Continuum.

Nashima, M., 1994. ‘Food shortage puts pressure on food laws.’ Japan Times Weekly International edition, 34(17), 10-11.

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Quester, G. and McGuiggan, L., 2006. Marketing: creating and delivering value. Sydney: McGraw-Hill.

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Wood, R. and Brotherton, B., 2008. The Sage handbook of hospitality management. London: Sage.

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