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UNIQUE CHARACTERISTICS OF SERVICES

 There are four commonly cited characteristics of services that make them
different to market from goods: Intangibility, Inseparability, Variability and
Perishability.
INTANGIBILITY:
Intangible means that which cannot be seen or touched. Intangible services
are difficult to sell because they cannot be produced and displayed ahead of time.
They are therefore harder to communicate to prospective customers.
Apart from food & beverages provided by the hotels, all other offerings such
as accommodation, catering etc are intangible & are experience-oriented, thus its
difficult to convince the customer about the quality of these offerings.
Marketers of hotel services can overcome this characteristic by stressing
tangible cues like brochures, photos etc., that will convey reassurance and quality
to the prospective customers. These tangible cues range from the firm's physical
facilities to the appearance and demeanor of its staff to the letterhead on its
stationery to its logo, recent facts & figures etc.
Ex: Centaur hotel overcomes this factor through its logo – The Centaur (a
mythical creature who is half man & half horse), with a bow & arrow, signifying
speed & focus.
McDonalds uses Ronald, the clown to attract children.

INSEPARABILITY:

This characteristic is interpreted differently by different service marketing

marketers, but all interpretations point out that special operations problems exist
for the firm's managers. One interpretation of this term is the inseparability of
customers from the service delivery process. In particular, many services require
the participation of the customer in the production process.

In case of the hotel industry, customer has to be present for experiencing the
services being offered.

This factor can be overcome by opening new branches/outlets, facilitating

instant communication (through telecom), with the customers in case of any type of
information/services needed during the stay in the hotel etc.

Ex : Previously Domino’s mostly used to deliver its products to the homes of the
customer; but there was no question of serving the customers. Thus, Domino’s
started opening more and more outlets so that it could provide the customers with
more range of services.

VARIABILITY :
The fact that service quality is difficult to control compounds the marketer's
task. Intangibility alone would not be such a problem in customers could be sure
that the services they were to receive would be just like the successful experiences
their neighbors were so pleased with. But in fact, customers know that services can
vary greatly. Even the same service provider has good days and bad days or may
be less focused at different times of day. Services are performances, often involving
the cooperation and skill of several individuals, and are therefore unlikely to be
same every time. This potential variability of service quality raises the risk faced by
the consumer.
In the hotel industry, different front-line personnel have different abilities.
The variability of hotel and catering services would differ because of the distinct
skills and behavior of the various personnel serving the customers.

The service provider must find ways to reduce the perceived risk due to
variability. One method is to design services to be as uniform as possible - by
training personnel to follow closely defined procedures, or by automating as many
aspects of the services as possible. A second way to deal with perceived risk from
variability is to provide satisfaction guarantees or other assurances that the
customer will not be stuck with a bad result.
Ex : Coin operated soft drink machines which saves the time of the consumer.
There is no scope for variations in the service level.

PERISHABILITY:
The fourth characteristic distinguishing services from goods is their time
dependence. Services cannot be inventoried, since they are performed in real time.
And time periods during which service delivery capacity sits idle represent revenue-
earning potential that is lost forever. Periods of peak demand cannot be prepared
for in advance by producing and storing services, nor can they be made up for after
the fact. A service opportunity occurs at a point in time, and when it is gone, it is
gone forever. This can present great difficulty in facilities planning.
In the hotel industry, the accommodation provided can get perished if not
booked or occupied on time.
The service providers must developed alternative, counter seasonal service
products to use slack capacity, although that has long been a common practice by
goods marketers. Many service providers also control demand by requiring
appointments. Some service firms keep on call frontline personnel who can arrive
on short notice to meet the surges in demand, or cross train support personnel to
assist with customer service during busy periods. The service providers must
overmarket their services to avoid the perishability factor.
Ex : Hotels in Goa have less occupancy during monsoon.

FORMULATION OF MARKETING MIX FOR HOTELS ORGANISATIONS

The term marketing mix is the combination of what market offers and studies
which help in identifying the actual point where marketing action can be taken to
improve the acceptability of hotel product and stimulate demand. A modern hotel is
a major establishment, a sophisticated job manned by trained personnel from hotel
schools, an institution of commercial hospitality and a building or an institution
where guests expect refined behaviour, excellent services and personal attention.
This draws our attention on the combination of sub-mixes in the hotel industry.
With the viewpoint of marketing a hotel product, the combination of different sub-
mixes is found significant. The combination of core and peripheral services, the
creative promotional decisions, the pricing strategies helping hotels in maintaining
the commercial viability, the efficient hotel personnel instrumental in minimising the
gap between the services-promised and services-offered, the education and training
programme for the development of hotel personnel efficacious in enriching their
excellence as high performers are important decision making areas which gravitate
our attention on the formulation of a sound mix for the hotel industry. It is against
this background that we go through the different sub-mixes of the marketing mix;

PRODUCT MIX

In any organisation, we find product the focal point. The hotel services also
require a fair combination of core and peripheral services. It is right to mention that
in almost all the hotels of same category by and large the core services are found
identical and therefore the peripheral services divert a close attention where the
hotel personnel need professional excellence. More innovative the peripheral
services, more attractions we add to our product mix. This makes it essential that
hotels and hotel companies assign due weightage to the formulation of an optimal
product mix in which peripheral services prove to be a point of attraction.
 The emerging trends in the socio-economic parlance necessitate an
analogous change in the product mix. With the passage of time, it is quite natural
that some of the services becomes outdated and therefore, we need to eliminate
them. At the same time, it is essential that we keep our minds open and come to
know the latest developments in the likes and dislikes of the customers, and while
including new services in the product mix, assign due weightage to their
preferences, While formulating the product mix it is pertinent that we make the
ways for frequent innovation. It is also right to mention that frequency in innovation
is found essential and at the same time easier in the context of peripheral services.
The hotel professionals are required to formulate a package that helps in attracting
the customers. Modifications in the existing services by adding a few outstanding
properties is found to be a suitable strategy for the development of product. The
generation of idea, the formulation of concept, the analysis of product cost and the
testing of services before their final commercial launch become significant in the
very context. This necessitates an in depth study of product life cycle. A hotel
manager bears the responsibility of adding attractions to the product mix and this is
possible when they have world class professional excellence.

While formulating the product mix for the hotel services, it is essential that
catering management, restaurant and cafeteria management, management of
bedrooms, management of convention halls are given due weightage. The boarding
services are considered to be an important part of product mix. In addition, the
lodging services also become significant. Here it is essential that facilities like light,
water, electricity, ventilation, entertainment, sanitation arrangement of bed etc. are
available to the guests. While formulating the product mix, the hotel organisations
are required to make possible a fair mix of core and peripheral services.

We can't deny the fact that as and when we talk about the services of hotel
industry, our focus is on the tourism industry because from there we get profitable
business. In addition, the industries and their executives also divert our attention
since they help us substantially in getting the business. We can't devalue the
instrumentality of educational institutions and business houses in getting business
for our convention halls. These facts make it clear that while formulating product
strategy, it is pertinent that the hotel professionals keep in their minds the users of
services and their characteristics.

In the formulation of a sound product strategy, it is essential that we assign

due weightage to the mix of services expected and desired by the potential
customers. We need to make the information system strong enough to initiate
suitable guidelines for the strategic decisions. What to offer? What to modify? What
to alter? What to eliminate? These questions require suitable answers which are
expected from the professionally sound and high performing team of hotel
personnel. If we find that our competitors have been innovating their strategies, we
have no option but to practise the same. If we want to project our image as a
leader, we have no option but to make the ways for innovation. We need broad-
based information related to the local community vis-a-vis the foreign and domestic
tourists. In addition, the information regarding the facilities available in the hotel
would be related to both such as areas producing revenue and areas not generating
profitable financial returns. The information regarding the details of competition are
also to be collected regarding the various facilities made available in a hotel
including the prices, profile of potential customers, such as age-bracket, sex. Type
of group, place of employment, place of residence, mode of transport, room
popularity, new guest, first choice, length of stay, any complaints and who made
the booking. Besides, we also need information related to hotel activities, such as
occupancy statistics, seat turnover percentage, number of empty days. pattern of
sales in restaurant and bar or so. It is not to be forgotten that needs of the guests
are the cornerstone of marketing analysis. An in depth study of what the
competitors are doing, implementation of unique selling proposition to fulfill the
needs of customers, determination of objectives and the formulation of strategies,
advertise a promise which is genuine and creditable and in which the customers can
easily discern their own benefits can't be devalued in the very context. It is
pertinent that we view everything from the customers perspective. The
accommodation facilities available and the housekeeping draw our attention to
improve the quality of services. While formulating strategic decisions, it is
significant that we include in our product mix all the new services offered by our
competitors. Not only the primary and auxiliary or core and peripheral but even the
supportive services offered by allied industries divert our attention. The
development process can’t remain static. This necessitates a continuous effort for
incorporating 'he necessary changes in our service mix. The issue of concern here is
how and what to incorporate? A sound product strategy is found a pre-requisite for
establishing a fair or positive image. Image is the way in which a hotel portrays
itself. The factors like atmosphere, brand name, the status, type of people and
corporate institutions patronising a hotel would be instrumental in building up a fair
image. And the most important thing in the projection of a fair image is the quality
of services and the behaviour of the front-line staff.

PROMOTION MIX
 For successful marketing, it is only not sufficient that we concentrate on the
quality of services but it is also impact generating that we promote our business in
such a way that our prospects come to know about the quality to be offered to
them as hotel customers- This focuses our attention on innovative promotional
measures. It is against this background that we talk about the promotional
measures. There are a number of components for promoting the business and it is
hoped that a professionally sound employee would blend the different constituents
in such a way that effects are proactive but the process of persuasion is cost-
effective. The components like advertisement, publicity, sales promotion, personal
selling, word-of-mouth promotion and telemarketing need due attention of hotel
professionals.

The success rate of a hotel is virtually coiled in the essence of transforming

the occasional visitors into the habitual visitors because this helps substantially the
process of increasing the occupancy ratio. The sensitivity is vigorously influenced by
creativity. This makes it essential that the decision makers in the hotel industry
make sincere efforts to formulate sound promotional strategy. We can't deny the
fact that creation of awareness has a far reaching effect on the formulation of
promotional strategy. If scientifically formulated, optimally blended promotional
measures are used by the professionally-sound and personally-committed hotel
personnel, the rate of success would be found satisfactory. We find a number of
instances to quote that even quality services failed in creating and expanding
market because the promotional measures failed in sensitizing the prospects. This
draws our attention on using the different components of promotion in such a way
that we find them very much instrumental in throwing a positive impact.

Advertisement: We are well aware of the fact that advertisement is a paid form of
communication which helps in informing, sensing and persuading the prospects or
users, While advertising, it is significant that the hotel professionals make possible
a productive use of print media, broadcast media and telecast media. In the face of
potentials, requirements and the intensity of competition, we need to select media
for promoting our messages and slogans. It is possible to be descriptive while
advertising. We are in a position to attract the attention of prospects by displaying
attractive scenes, events, landscape, comforts, costs etc. In this context, it is
pertinent that the hotel professionals advertise sensibly, intelligently and for that
seek the co-operation of advertising professionals who can simplify and sensitize
the process. We have a big circulation of different newspapers, magazines and
keeping in view the target market/audience to be covered, we can take a decision
in the every context.
 The services of advertising professionals would make possible creativity in
the advertisement messages and appeals. While selecting the media for
advertisement, it is significant that we keep in our minds the magazines,
newspapers preferred by the target audience. The magazines, newspapers
preferred by women and teens should be given due weightage since in a majority of
the cases, the decisions regarding a particular tour hotel are taken by them.

The broadcast media can also be used for advertising the hotel services but if
we make a comparative analysis of this media with others, the effects are found of
low intensity. The hotel professionals are supposed to select a suitable time for
transmission when a majority of the target audience are supposed to be close to
the radio set. We find a particular season during which the pilgrims prefer to visit
the sacred places and the hotels located in that catchment area need to advertise
on sensitive hours. The messages, themes need rural orientation in the very
context. It is essential that the advertising professionals are well aware of the
nature and requirements of target audience.

Publicity: Another dimension of promotion known as an unpaid form of persuasive

communication also plays an incremental role in promoting the hotel business.
While publicising, thy hotel professionals play a significant role by managing the
media personnel or publishing news items related to the hotel. Public relations
activities thus become instrumental in the process of publicising.

In the hotel industry, we find public relations activities more instrumental in

informing the clients the outstanding merits of different services offered. The
specialities of hotel are presented in such a way that the prospects are motivated to
avail of the facilities offered by a particular hotel- It also helps in creating an
atmosphere where the users at large are convinced. Besides, it also helps in
collecting the information on the preferences of the prospects. It is right to mention
that we find a few or even a very few consumer industries to be benefited
substantially by public relations as the hotel industry. The vast majority of hoteliers
welcome publicity not only because it is free but because they know that most
people buy a magazine or a newspaper to read the articles, news and editorials,
rather than the advertisements unless they are looking for a product or are
interested in booking a holiday or a restaurant or a convention hall or a wedding
hall.

In the hotel business, we find a number of events which should be

transmitted to the local press, such as the appointment of a new chef, list of
cocktails, menus for certain functions held at hotel, particulars of certain important
conferences or exhibitions to be held, menus for special days of the year,
photographs of staff dressed up for special days and well-known people staying in
the hotel. Of late, the sponsored events start and finish at hotels or are run even in
the hotel grounds. Sponsored walks, sponsored car rallies, sponsored fashion-
designing events, sponsored entertainment programmes, sponsored beauty contest
or so. We find all appearing in the newspapers and magazines. Journalists always
prefer to visit a hotel as they get their full enjoyment free of cost. You can give
journalists a write-up of your story and preferably a story with a photograph. Of
course, the photographs cover a lot of space but if media use it, we find this the
finest eye-catching free publicity. Sometimes a stunt is also thought to obtain a
write-up.

In the public relations, the activities range from a press release to'
newspapers and magazines, specially to create the interest of prospects in a holiday
package in a good resort of a country. The holiday package tours and trips on
familiarity with a tour spot, organised by tour operators for the travel agents help
them in enriching their knowledge and making the travelling decisions.

There are a number of media sources available for publicity. Illustration, copy
and the spoken word are the primary publicity to media which are grouped into the
following heads:

• Printed Publicity

• Advertising Publicity

• Projected Publicity

• Structural Publicity .

• Personal Publicity

Thus it is right to say that public relations activities occupy a significant place
in the promotion mix of hotel companies. In thy hotel companies, the tour
operators, travel agents explore opportunities for educating the masses You spend
nominal amount but get big coverage which help you substantially, if not at present
of course in future.

Sales Promotion : In almost all the organisations, we feel the need of offering
incentives for promoting the business. Like other organisations, the hotels and hotel
companies also offer incentives to the users vis-a-vis to the personnel and
organizations evincing interest in promoting the business. We consider sales
promotion a temporary device to increase the business with certain objectives. It is
a short term activity seeking to boost sales during peak demand periods to make it
sure that the firm obtains its market share and helps launch a new product or
support an ailing or modified services. These facts make it clear that sales
promotion is complementary to advertising. Sales promotion and advertising
objectives do not conflict but reinforce one another.

This tool of promotion is designed to appeal particularly to those customers

who are found sensitive to price. It is quite natural that the tools of sales promotion
attract buyers even having little brand loyalty. It is against this background that the
promotional measures are found more effective where brand loyalty is a feature,
such as certain cruise makers are holiday package operators but here it is essential
that efforts are aimed at present clientele to attract more business from the
existing market instead of trying to encourage brand-switching and targeting new
clients- This is not to be a case of value-addition to the business of tour operators
and the travel agents. In the hotel business, we find perishability a risk and this
factor is also given due weightage while offering off-season accommodation at low
price tags.

We find repeated advertising and competitive market conditions two

important reasons for the growing significance of sales promotion in the hotel
industry. The techniques may be directed the hotel staff, tour operator and the
travel agents including the users of the services. We find tools of sales promotion
directed at the hotel staff, tour operator and travel agents and guests or clients. We
find three-tier arrangements for sales promotion in the hotel business. There are a
number of incentives offered to them. In addition, we also find some of the hotels
offering concessional travelling and accommodation facilities, specially to their staff.
Besides, we also find cases of organising sales contests.

Tools of Sales Promotion

The following tools of sales promotion are used for all the three heads
instrumental in promoting the hotel business.

1. Brochure: It is a device to stimulate customers and motivate them to visit a

hotel and avail of the benefits offered by the management of the hotel It is a
detailed publication helping hotel companies in promoting their business. The
guests, clients get detailed information from the brochure.
2. Folder: We find folder the most commonly used sales promotion tool. In this
respect, it is essential that folders have an impressive appearance in totality. The
particulars are required to be in brief but clear. The hotels can use folders for
promoting the business.

3. Packaging: We call packaging an attractive wrapper of product. When we talk

about packaging in the hotel industry, our emphasis is on the outer cover and
internal layout of brochures and leaflets.

4. Attraction leaflets: This is exclusively meant for presenting a view of the

different theme parks, museums, amusement parks, outstanding points of
attraction in the hotels or so.

5. Merchandising: It is found helpful in promoting mass-market- This tool is found

significant to restaurants and bars. The merchandising involves displaying of food
stuffs and drinks in the right location.

6. Direct Mail Materials: The sales letters are found to be a direct mail material
which can either be used alone or in combination with brochures and folders.

7. Display Materials: In the materials to be displayed at sensitive points are

posters, dispensers, exhibits etc. We can use these materials in the offices of the
travel agents, tour operators or at the places where tourists come, such as tourists
spots, resorts, airports, railway and bus stations.

8. Competition and Exhibition: We find organisation of competition and

exhibition for promoting the business.

9. Special Officer: We also find a provision for special offer for all, such as users,
travel agents, tour operators, hotel personnel. The aforesaid tools of sales
promotion help hotels and hotel companies in increasing the business.
Word-of-mouth Promotion : We consider word-of-mouth promotion very much
instrumental in sensitizing the prospects. In the hotel industry, it is much more
significant that the satisfaction of users is give top priority- Of course, there are a
number of components to promote sale but it is right to mention that other
constituents may be ineffective but the word-of-mouth can't. The word-of-mouth
promoters are those who are satisfied with the services of hotels or are motivated
to motivate the prospects. We can't deny the fact that one bad meal would often do
more damage by word-of-mouth than fifty good meals. Our guests take a good
meal for granted but don't forget to narrate to their friends and relatives about a
bad meal or the bitter experiences of menu-fatigue. This speaks of the fact that
word-of-mouth promotion can show more negative effects and therefore the hotels
and hotel companies need to assign due weightage to this component of the
promotion mix. Of course, the dissatisfied group of users are free to complain to
the hotel management but often they don't act. We find them close-mouthed and

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