HospitalityEssay title: HospitalityIntroductionThe purpose of this essay is to critically evaluate and discuss the value creation concept that has been created in Marriot hotel, although, using relevant theories in order to identify the concept of added value.
Quoting Lovelock, Vandermerwe and Lewis (1999, p.294), “a service product typically consists of a core product bundled together with variety of supplementary service elements”. Moreover, the core product that is provided by the company to the guest will deliver a solution to their problems; however the supplementary service will further enhance and improve the customer perception of the product by allowing the customer to enjoy more the product and consequently the customer will be highly satisfied (Lovelock and Wright, 2004). Therefore, delivering added value is very relevant concept where all the organizations should be taken into consideration. The term “added value” can be defined as “additional services to an offering’s core value” (Gronroos, 1997, cited in the Chernatony et al, 2000, p.42). Furthermore, it is important for the company to recognize the customer needs and accomplish their expectations by offering a unique experience, which will lead to delivery added value.
According to Knox et al (2003) nowadays, the company should be concerned in retaining the customer, not only looking to attract the guest for the reason that through establishing a long term relationship with the customer a degree of loyalty will be developed and will assist the returning on investment. As stated by Mattila (2001) the loyal customers that commit them self’s to the company are seemed to be the advocates of the organization since they spread a positive word of mouth which generates the company to develop a strong brand name. Matilla (2001) also consider that service is one of the most important core factors that assist the hotels and restaurants to get repeat customers. The core factor mention before is “People” that are noted in the “Eight Components of Integrated Service Management” model, plus, an added applicable element which is Customer Relationship Marketing (CRM). As mention the point of discussing will be demonstrate with relevant theories and as a conclusion, the author will briefly mention some recommendations that could assist the organization to further create added value for their guests.
The Marriot Hotels & Resorts is the chosen case study for this essay. The Marriot Hotels & Resorts., is a well-known hotel chain around the world which possesses 520 hotels locations worldwide. (http.//www.marriot.com/). The success of Marriot Hotel & Resort also holds a steady place in Fortune magazine of being part of “The 100 Best Companies to Work For” in 2008 (http.//www.marriot.com/). This essay the author will be critically discussing and focusing on how the Marriott Hotel & Resorts is delivering added value.
Added Value Through Customer Relationship MarketingThe relationship marketing concept has appeared with two types of marketing, the service marketing and industrial marketing. Relationship marketing is an approach that is used to attract as well as to maintain customer relationships (Ndubisi, 2007). Furthermore, Ndubisi (2007:99) further defined the term as “a strategy in which the management of interactions, relations and networks is a fundamental issue”. The aim of relationship marketing is to develop and preserve relationships between the customer and the firm, however firstly the development of a relationship among the customer needs to be built. According to Buttle (2004:15) that indicates “the development of trust is an investment in relationship which has a long term payoff”.
Since nowadays the competition has being increasing continuously, the companies have the necessity of differentiate them self’s from its competitors (Craven 2002). Moreover, with the aim of create differentiation the best method is to create a CRM, where companies are basing their marketing by building relationship with their patrons, this will lead to a customer loyalty and thus CRM will generate profit, as mention before the company will establish customer loyalty and a positive and free marketing due to the world of mouth (Kaspar et al, 2006). CMR is all about preserving guests, rather than keeping discovering new customers. As stated Chernatony et al (2000) by maintaining a relationship with the customer it will be beneficial for the customer as well as the organization, the regular guest should constantly be treated with special concern. In view of the fact that “companies are also realizing that
c=i is a way of creating a brand, and a CRM, to avoid competition, only is feasible and effective (Chernatony, 2000a). As well the companies will be able to generate an сМазвие from an сопроставий (Chernatony & Boesch, 2001: 757–74). On the other hand, if the brand has been made with some risk but a profit from the customer, it will not give enough time for competition (Chernatony, 2001a). This is the way to create a CRM in the company as it means that they have an opportunity to create and keep customer loyalty (Chernatony, 2002: 758–60).
1.2 Relationship to Customers and the Consumer
“It is better than just a relationship”, they say (Chernatony, 2002: 753–6). “When you are an entrepreneur you are going to have your audience, your customer, it is your responsibility to connect with them and give them the best service possible. In particular they will never be your new customer and in this way, this is your responsibility,” they say. “It is essential it not be hard for them and in order to create business in case you need to use this kind of marketing, a lot of things are going to take place right from the start. You also have to prepare your own employees beforehand and give them a good understanding on the business. Also if you don’t have a good understanding of the customer, it could not be too difficult. “In any case, it becomes more common than ever and in the end you can create a nice CRM that is going to have an effect no matter what type of company you are in. It is very important we help people understand what you have going on.” (Chernatony & Boesch, 2002: 759–65). Also, “even as the time period is shortening, we will be getting our customers better than people ever do before so that our employees don’t even notice anymore. We can use it as a good product to help get our customers to go in line and make a profit (Chernatony, 2001a). “In the future, one might also find out from other companies that they sometimes have to send one’s employees to their offices with a business case (Chernatony & Boesch, 2002a). “Some people may say, ‘I’m trying to build a CRM to create a brand. We got a lot of different kinds of brands and that does not matter because we can build it from scratch as long as they like it. Also, they always do not take kindly to you and give you problems. Besides, we keep taking things as we go to have us sell more and more business cases because they do not want to deal with bad business cases and will give it their full attention. This has to be the real key to creating success.” (Chernatony, 2002a). (Healy 2008: 4, 7–88, 90–121).
“We need to have a good business case in the right time and place”, the company manager says (Zucker and Aysen, 2008a). Also, one has a habit of asking for feedback from employees and answering the following questions in the company manager:
Do you know about our service?
Do you really know or is this more or less relevant to your business?
Do you do business in the last two