MKT 201

Sales and Marketing

TU BHM · Semester 3 · Recent BHM syllabus series

Requirement
required
Credits
3
Study Guide
9 units available

Chapter notes

Authoritative study guide across 9 syllabus units

Open a unit to read its study notes.

Unit 1: Introduction· 6 LHs· ~8 marks

Pass path: Memorize must-know definitions, operational roles, and core terminology of Hospitality Marketing, Perishability of Hotel Services, and Inseparability. Top path: Master advanced exam requirements: diagram and execute the Extended 7Ps Hospitality Service Marketing Mix and accurately contrast Physical Goods Marketing vs Hospitality Services Marketing, resolving TU board problem scenarios with complete working steps.

Part 1: Core Concepts (2 Marks)

  • Hospitality Marketing: The art and science of finding, retaining, and growing profitable hotel and restaurant guests by creating, delivering, and communicating superior customer value.
  • Perishability of Hotel Services: Hotel rooms cannot be stored in inventory for future sale; an unsold room on a given night represents revenue lost permanently forever (“An unsold room tonight is gone forever”).
  • Inseparability: Service consumption occurs simultaneously with service production; the guest is co-present with the service provider during delivery (e.g., dining service).
  • The Extended Services Marketing Mix (7Ps): The classical 4Ps (Product, Price, Place, Promotion) expanded for service industries by adding People, Process, and Physical Evidence.

Part 2: Structural Frameworks (10 Marks)

Extended 7Ps Hospitality Service Marketing Mix

Hospitality 7Ps Marketing Mix
Hospitality 7Ps Marketing Mix

The Extended 7Ps Framework for Hotel Marketing

Marketing Mix P Practical 5-Star Hotel Operational Application
1. Product Luxury suites, fine-dining restaurants, spa, banqueting
2. Price Dynamic revenue management, rack rates, corporate rates
3. Place Central booking engine, OTAs, travel agencies, GDS
4. Promotion Social media campaigns, PR events, travel expos, print
5. People Frontline staff grooming, empathy, training, service
6. Process Seamless mobile check-in, fast dining billing, SOPs
7. Physical Evid. Elegant marble lobby, ambient lighting, luxury linen

The Four Unique Characteristics of Hospitality Services (HIPI):

  1. Heterogeneity (Variability): Service quality fluctuates based on who provides it, when, and where. Overcome via rigorous Standard Operating Procedures (SOPs) and employee training.
  2. Intangibility: Hotel accommodation cannot be seen, tasted, or touched prior to purchase. Overcome by providing tangible cues (luxury photography, guest testimonials, virtual 3D room tours).
  3. Perishability: Unsold capacity expires instantly. Overcome through Dynamic Yield Management (discounting off-peak dates).
  4. Inseparability: The employee and guest interact directly; staff behavior directly defines perceived product quality.

Part 3: Distinction Tables

Basis of Comparison Physical Goods Marketing Hospitality Services Marketing
Tangibility Pure tangible goods (cars, soap, phones) Intangible experience, hospitality, and comfort
Inventory Storage Can be warehoused and inventoried for months Zero physical shelf inventory; perishable per night
Customer Involvement Customer absent during factory production Customer physically co-present during service delivery
Quality Control Machine precision inspection before shipping Real-time human interaction; relies on frontline staff

Part 4: Worked Problems & Exam Traps

Typical TU Board Examination Problem:

A resort hotel in Pokhara experiences extreme seasonal demand fluctuations: 95%95\% occupancy during autumn (Sep–Nov) and 25%25\% occupancy during the monsoon (June–July). Propose four marketing interventions addressing the service characteristic of Perishability.

Model Solution:

  1. Differential Promotional Pricing: Implement aggressive off-peak promotional room rates during the monsoon, bundling breakfast, dinner, and spa vouchers to attract domestic budget travelers.
  2. Developing Alternative Target Markets (MICE): Shift marketing focus from international trekking tourists to domestic corporate conferences, medical conventions, and university retreats, which are weather-independent.
  3. Creating Seasonal Monsoon Wellness Packages: Market the monsoon season as a serene “Himalayan Ayurvedic Wellness and Yoga Retreat”, emphasizing misty mountain tranquility, indoor meditation, and detox cuisine.
  4. Non-Refundable Advance Purchase Booking Incentives: Offer 40%40\% discounts for reservations booked and pre-paid 6 months in advance, locking in cash flow before the monsoon begins.

TU Exam Trap: Confusing Inseparability with Intangibility. Intangibility means the service cannot be physically touched prior to purchase; Inseparability means production and consumption happen simultaneously at the exact same moment!

Students lose marks here because they confuse Inseparability with Intangibility. Intangibility means the service cannot be physically touched prior to purchase; Inseparability means production and consumption happen simultaneously at the exact same moment.