Delivering

Added Value

Sunshine Hotel

Report

Student Name: Manuel Handlechner
Programme/Course: BA Hospitality Management

Table of Contents

1. Introduction 3
2. Competitive Advantage 3
2.1 Higher quality 3
2.2 Market segmentation 4
2.3 Marketing mix 4
3. The Sunshine Hotel strategy 5
3.1 The Product 5
3.2 The Place 7
3.3 The People 8
3.3.1 Internal Marketing 8
3.3.2 The objectives of internal marketing 9
3.3.3 Diversity of workforce 9
4. Relationship Marketing 10
4.1 Relationship Marketing vs. Traditional Marketing 11
4.2 Ladder of loyalty 11
5. Conclusion 12
References 13

2

Delivering Added Value - Sunshine Hotel

1. Introduction
The hospitality industry is highly competitive, and the effectiveness of marketing is a major determinant of a hotel′s immediate business success and long-term survival. Modern hotel managers must be very much involved with the planning and implementation of marketing efforts as an essential part of overall managerial responsibility.
To gain competitive advantage the concept of marketing was introduced in the 1960s. According to Kotler et al. (2006) is marketing a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Analysts predict that the hotel industry will consolidate in much the same way as the airline industry has, with five or six major chains dominating the market. Such consolidation will create a market that is highly competitive. The firms that survive this consolidation will be the ones that understand their customers. (Zeithaml 2006)
The Sunshine hotel is a very small and independent hotel; therefore it is even more important to have a good marketing strategy.
2. Competitive Advantage
2.1 Higher quality
One of the major ways that a service firm can differentiate itself from the competitors is by delivering consistently higher quality than the others. (Zeithaml 2006, Christopher et al. 2002) Many companies are finding that outstanding service quality can give them a potent competitive advantage and deliver added value to the customer, which leads to superior sales and profit performance.

3