STRATEGIES FOR MARKETING OF SERVICES IN THE HOSPITALITY INDUSTRIES IN AKWAIBOM STATE

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ABSTRACT

Hospitality and tourism industry comprises businesses involve in the provision of accommodations, foods, recreational centers for visitors or travelers, comfort and catering services for others. The purpose of this research was to identify and examine the benefits to be derived when marketing strategies and concepts are applied effectively in the hospitality and tourism industry. The research was based on descriptive research design. The research analyses marketing variables and how they influence customer patronages. The researcher took into considerations the total population of 80 employees and customers of Royalty Hotels and Recreations with a sample size of 67 respondents to analyze his data and test hypotheses. Findings revealed that for effective marketing of services in the hospitality industries, a specific blend of marketing strategies are required. Some recommendations made include, Royalty Hotels and Recreations, the operator of the hospitality and tourism industry should apply the marketing concept effectively to have an edge over its competitors, they should embrace the concept for a better economic gains to the organization. Experts in the field of marketing should be employed to ensure effective and efficient application of the marketing concept. They should provide good quality services to its customers at the price which the customer can afford.

 


 

TABLE OF CONTENTS

Cover page

Title Page

Certification

Dedication

Acknowledgement

Abstract

Table of Contents

List of Tables

CHAPTER ONE

1.0                       Background of the Study

1.1                         Statement of the Problem

1.2      Objective of the Study

1.3                        Research Questions

1.4                        Research Hypothesis

1.5                        Significance of the Study

1.6                        Scope / Limitation of the Study

1.7                        Definition of Terms,

 

CHAPTER TWO

2.0     Introduction

2.1     Theoretical and Conceptual Overview of Marketing Concept

2.2                         The Marketing Concept in Service Marketing -

2.3                         An Overview of Services

2.4                         Services Characteristics 

2.4.1              Intangibility of Service

2.4.2              Perishability of Service

2.4.3              Heterogeneity of Sendee

2.4.4     Inseparability of Service

2.4.5              Use of Direct Distribution

2.4.6     Involvement of Customer in Production 

2.5                         Natures and Importance of Services

2.6                         Marketing Strategies in the Services Industry:
The Marketing Mix: 

2.6.1            People as Component of Services Marketing Mix

2.6.2            Process as Component of Services Marketing Mix -

2.6.3            Physical Facility as a Component of Service Marketing Mix 

2.7                         Relevance of Marketing Techniques to Service

2.8                         Advertising as an Element of Promotional Mix and
it Effects on Hotel and Tourism -

2.9     Theoretical Framework

  

CHAPTER THREE

3.1   Area of the Study

3.2   Research Design   

3.3     Population of the Study

3.4    Sample Determination/Techniques

3.5      Source of Data

3.6    Method of Data Collection

3.7    Data Presentation 


CHAPTER FOUR

4.0                          Introduction

4.1                          Data Presentation and Analysis

4.2                          Test of Hypotheses -

4.3                          Discussion of Findings

CHAPTER FIVE

5.1   Summary

5.2                        Conclusion

5.3                        Recommendations -
Questionnaire
References

 

 

 

 

 

CHAPTER ONE - INTRODUCTION

1.0     BACKGROUND OF THE STUDY

Marketing is one of the basic functions facing organization today, be it for profit or not for profit making. Corporate managers now realize the hidden potentials of marketing as a tool for generating and maximizing sales and patronages.

Organizations perform the marketing function either knowingly or unknowingly as they fight to acquire more market shares (sales volume) and revenues. Marketing of services is an integral part of marketing. A service is any activity or benefit one party offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product. Services involve action, deed, and performance, services business covers a wide span from very small operation such as a roadside Motor Mechanic, Restaurant, and Bar to large businesses such as Hotel, Tourism, Airlines, etc.

Hotel and tourism are entities that organize and provide hospitality services to people in the form of accommodation, meals, leisure, monuments, and showcase of cultural and natural heritage, rental, communication and recreational facilities in returns for payment (money). The application of the basic principles of marketing is the same irrespective of whether one is marketing tangible or intangible goods for commercial (profit) or non­commercial (social) organizations. Marketing of services which is sometimes called marketing of professional services cut across the hospitality and tourism industry etc.

According to Chigozie (2007), marketing must not be seen narrowly as the task of finding clever ways to sale products or sendees. According to him many people confuse marketing with some of its sub - functions such as advertising and selling. Marketing is not the art of selling what you make but knowing what to make, it is the art of identifying and understanding customer needs and creating solution that deliver satisfaction to customers, profit to hotel, fast food, restaurant operators and tourism business etc.

Hospitality and tourism industry is the sector that the Federal, State and Local Government pays a lot of attention to, by a successive government in Nigeria. Various governments seem to recognize the potentials of hospitality and tourism industry to boost the economy and corporate image of the country in a variety of ways. Based on this, marketing in hospitality and tourism world critically look at the dynamic of the environment encompasses in business, physical (geographical) and governmental policies environment, (Adeyemo, 2005).

The philosophy of marketing in the hospitality and tourism industry is customer oriented. Their services are defined from the customer point of view. Hospitality means to be hospitable; Akwa Ibom State people in Nigeria by nature are hospitable and accommodating. This quality should be exhibited in our hospitality and tourism industry, (Nwidum 2007). The thrust of this research is designed to examine the strategies for services marketing in the hospitality industries in Akwa Ibom State with particular reference to Royalty Hotels and Recreations, Eket.

Royalty Hotel and Recreations is a privately owned establishment which provides or deals on hotels and gathering services. It is located at 74/76 Eket Oron Road Eket. Royalty Hotels and Recreations is a top-class hotel offering sophisticated services for both the business and leisure travelers.

The hotel is strategically located in a superb and conducive environment that is easily accessible from anywhere within the town.

Located in Eket Akwa Ibom State, the hotel's rooms are each fully equipped with air-conditioning system, intercom, satellite TV, in house movies, refrigerators etc. The hotel's restaurant offers a delightful choice of local national and continental dishes suitable for everyone. Royalty lobby bar and the Sunset bar provide a wonderful pre-dinner cocktail, light snacks and an unimaginable relaxation. Royalty Hotels and Recreations is a home of superior service and generous comfort within an environment of royal elegance. The hotel also features fully equipped conference and banquet hall and a multi­purpose hall with seating capacity of 1000.

Royalty Hotels and Recreations offers 80 spacious guest rooms all beautifully decorated and equipped with modern facilities for ultimate comfort. The 80 ready rooms include two Royal Suites and each room is equipped with air-conditioning system, telephone, big screen television with cable/satellite channels, in-house movies and refrigerator, wireless internet access etc.

Room Facilities

         Air conditioning

         Cable/satellite TV

         Complimentary toiletries

         Complimentary newspapers

         Telephone/Intercom

         Wake up calls (On Demand)

         24-hour room service

         24-hour security

Plasma TVs

Facilities & Services

         Business center

        24 hours' room Service

         24 hours uninterrupted Power supply 

         Safe deposit box

         Banqueting/Conferencing services

         Full restaurant services

         Car hire facilities on request

         Complementary car wash services

         24hrs front desk services

         Currency Exchange

         Guests car park

         Well-equipped fitness center

         Well-maintained swimming pool

         Indoor & Outdoor Bar

         High-speed internet access

 

 1.1     STATEMENT OF THE PROBLEM

Effective marketing strategies have contributed immensely toward the achievement of post purchase satisfaction on the side of the consumers who purchase the company's product or services in the market place. Every organization which intends to improve on marketing of it products or services

has to create good marketing strategies for its efficient and effective operations. These strategies if effectively used should increase the sales volume of it products or services as well as it profitability Nwaizugbo (2004).

In evaluating the activities of the hospitality industries, hotel and tourism in particular. It has been observed that the application of the marketing mix concept as a strategy has contributed toward the success story of the hospitality industries. The specific blend of their marketing variables such as product, price, place (distribution), promotion, people, processes and physical evidence has helped to maintain their market shares in the industries over the years.

In spite of the importance of marketing mix strategies in this sector. Royalty Hotels and Recreations have been experiencing low customer patronage for so long now as a result of the following;

i     The price of goods and services in Royalty Hotels are very high, customers can no more afford them.

ii        The quality of goods and sendees are very poor, not commensurate with price paid for these goods and services.

iii       The sales volume of goods and services on a daily basis are reducing due to poor quality and lack of patronage by customers.

As a result of the above mentioned problems the researcher intends to find out if well-tailored marketing strategies can be a solution to the problems and offer recommendations.

1.2     OBJECTIVE OF THE STUDY

The general objective of this study is to examine the strategy for marketing of services in the hospitality industries in Akwa Ibom state with particular

1. Ho - Goods and services sold in Royalty Hotels and Recreations are not costly.

Hi — Goods and services sold in Royalty Hotels and Recreations are costly.

2.     Ho - The quality of goods and services in Royalty Hotels and Recreations are poor.

Hi - The quality of goods and services in Royalty Hotels and Recreations are not poor.

3.     Ho — Customers does not derive any satisfaction from the consumption of goods and services they buy from Royalty Hotels and Recreations.
Hi - Customers derived satisfaction from the consumption of goods and services they buy from Royalty Hotels and Recreations.

 

 

1.5     SIGNIFICANCE OF THE STUDY

 

This study provides the following benefit:

(a)       It will unfold whether or not marketing as a philosophy of modern business has a role to play in the hospitality industries.

(b)       The study will broaden the researcher's horizon in the theories, concepts and processes of marketing.

(c)       Hotel managers and proprietors will benefit from it, because the findings and suggestions will improve their marketing strategy.

(d)       It is hoped also that the research report would act as reference materials to those in the marketing and business research profession. It would be of great value and importance to the development of the profession as it adds to existing literatures in the field of marketing.

(e)       The research would be useful to other students, researchers and scholars who might wish to carry out research in this field or relevant ones in the future as it would provide them with the much needed reference materials.

(f)    Other organizations wishing to understand more about marketing of services will find this work very useful.

1.6     SCOPE / LIMITATION OF THE STUDY

This research is confined within the research topic and identified problems. Thus deliberating on theory and application of marketing strategies as a philosophy to a hotel /tourism as stated in the statement of the problem and defined objectives. In conducting this study, the researcher encountered the following:

1.  Poor attitude on the part of respondents. Our respondents were either showing lukewarm attitude in responding to our questionnaire or did not respond at all. Therefore, the researchers had to make several contacts and calls to enable him retrieve some of the questionnaires distributed.

2.           Inability to carry out two or more studies from respondents in other services industries to compare, if the practice is the same with what is obtainable in Royalty Hotels and Recreations.

3.           The time allocated for the study was rather too small, owing to the fact that the researcher had to combine his official duty and other engagement with project work. But despite all this the researcher was able to complete the work on schedule.

 

 

DEFINITION OF TERMS,

a.     HOTEL:  This is a business outfit where rooms, meals recreation faculties are provided for people in return for payment.

b.    MARKETING:   it  is  the process  of planning  and  executing  the conception, pricing, promotion and distribution of services to create exchanges   that   satisfy   individual   (customer)   and   organizational objectives.

c.     MARKETING CONCEPT: this is the idea that business success requires being customer -oriented rather than product oriented, as such business must find out the needs and wants of the customers before wading into production of a product to satisfy them at the same time making profit and out-beating it competitors.

d.    MARKET OFFER:  this is service, which an organization makes available for members of the public

e.     PROMOTION: promotion is an activity carried out by any organization intended to increase revenue consequently.

f.     TARGET AUDIENCE: this is a set of fairly homogenous customers whom an organization want to reach or satisfy with it market offer (service).

g.     SERVICE: This is any form of product that is abstract intangible in nature and does not result in the ownership of anything. Sometimes it goes with a physical product.

h.     TOURISM: this a business of providing accommodation, showcasing unique heritage (such as natural, artificial and cultural heritage) and service for people visiting a place in order to create good impression about the place.


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