Digital Marketing: Mixed Mode Relationship (Hilton Hotels and Resorts)
Introduction
Hilton Hotels and Resorts is a Hotel company and business with a global reach in the hospitality sector and offers hotel and resort services under the Hilton Worldwide brand. The Hotel company and business were founded by Conrad Hilton in 1919 in Texas but has spread all over the world under the flagship of Hilton Worldwide as the parent organization. In the United Kingdom, the company has its headquarters in London in Hilton London Tower. Hilton Hotels and Resorts in the U.K carry out operations in services such as accommodation, entertainment, and gambling. Most of the revenue gained in the business comes from the selling of rooms to the customers under the accommodation section. However, other services including restaurants, laundry, spa, banquet halls, conference rooms, casino, bars and travel services also contribute to the revenue allocation of the company. The company has therefore developed an extended mix of marketing that drives the relationship mode with the customers. The four P'S of marketing mix utilized by Hilton Hotels and Resorts in the U.K Include Product, Price, Promotion, and Place. This marketing mix provides a framework of the manner in which the company business is driven.
Product
The primary product offered by Hilton Hotels and Resorts in the U.K involve accommodation services through its apartment hotels and the resorts. Therefore, the main revenue is generated through the selling of rooms to the customers. Other products in the business also include restaurants, laundry, bar, business centers and small shops from which the customers get valuables (Eisenmann, 2006, p.1184). Therefore, these products are advertised through the social media and the company's website based on three categories which include core products, facilitating products and the supporting products. The core products are the primary and basic needs that determine the relationship of the company to the customers (Adler, 2001, p. 217). The core products, therefore, forms the primary reason for the customers to purchase from the company business. Therefore, the hotel's rooms which form the core product of the Hilton Hotels and Resorts are always well displayed and descriptions based on the value provided on the company website for customers to select. The facilitating products, on the other hand, consist of the services which assist the customer in the use or consumption of the core products (Balmer, 2006, p.3). Such facilitating products include the bars, the restaurants and the online reservation mechanisms and facilities that attract the consumers to the company (Holland and Lockett, 2007, p.478). Finally, the supporting products include the additional products that make the business much more attractive and appealing to the consumers. Such products include spa, swimming pools, and service delivered by the staff members. Therefore, these products determine the mode of relationship between the company and the consumers.
Price
The display of the prices for the services offered by the Hilton Hotel and Restaurants, U.K are displayed on the company website and the pricing strategy utilized involve a matrix of the economy, skimming, penetration and premium strategies (Doole & Lowe, 2008, p. 10). The economy pricing strategy by Hilton Hotels and Restaurants consist of products which are sold to the consumers with the low budgets. For instance, the pricing of rooms at a lower price based on the removal of some services. For example, offering bed only is cheaper than offering bed and breakfast. On the other hand, the penetration pricing strategy as marketing mix involves offering services to the consumers using low prices for high-quality products than the prices of the competition in the same market to increase the company's market share (Balmer, 2006, p.5). The skimming strategy for pricing is the opposite of the penetration strategy which involves offering high-quality products at high prices than the competition in the same market. This strategy enables the company to associate its products with the exceptionally high quality, value, and exclusiveness. Lastly, in most of the services offered by the company, they use the premium pricing strategy which involves offering high prices to the products which stand out in the market and are perceived by the consumers to of excellent quality and coupled with additional features to attract more consumers (Eisenmann, 2006, p.1190). Therefore, the premium pricing strategy mostly used by the Hilton Hotels and Resort in the U.K have enabled it to be associated with high-status, luxury, and sense of achievement.
Promotion
Under the marketing mix of promotion, the company uses publicity, sales promotion, and public relation strategies to increase their sales and gain a large market share (Smith and Taylor, 2004, p. 5). The current advertising slogan of the Hilton Hotel and Restaurant, 'Go everywhere. Stay Hilton' was developed with the main aim of communicating the marketing message to ensure consumers satisfaction in the Hotel and Hospitality business all over the United Kingdom. The marketing message is mostly promoted by the online newspapers such as Forbes, The Economist and the Financial Times to attract consumers to the company (Doole & Lowe, 2008, p. 12). Additionally, the message is attached to social media marketing and broadcasting adverts on the television. Furthermore, Hilton Hotels and Restaurants, U.K focuses on the use of constant communication with employees, both private and public organizations and the consumers to increase their public relation and gain profitability and sustainability (Adler, 2001, p.220). The main form of communication involves the use of the official website of the company and emails to engage their consumers and employees. Additionally, Hilton Hotels and Restaurants uses the personal selling strategy to attract consumers and ensure attachment to their products. The method has enabled the company to gain long-term relationships with the consumers based on trust. Finally, Hilton Hotels and Restaurants, U.K has established incentives such as the Hilton HHonors points reward and the discount voucher systems on the company's website to enable the consumers to participate in sale promotions. These incentives have, therefore, enabled the company to persuade its customers to purchase its products on a large scale.
Place
The location of the Hilton Hotels and Restaurants in the U.K are primarily determined by distribution strategies which ensure that services are delivered to the consumers in time and also allow easy access when, how and where they require the services (Fill, 2009, p.139). The distribution strategies utilized focuses on the use of the services available on the Internet and online to ensure the consumers get the services regardless of the location of the company (Doole & Lowe, 2008, p.20). The official website of the company allows the consumers to locate the nearest Hilton Hotel to them all over the United Kingdom coupled with the capabilities of room booking, booking airport pick-ups and scheduling of meetings based on their requirements. Furthermore, the distribution services are also improved through the use of mobile applications such as social media platforms to increase the convenience in serving the customer services regardless of their location (Smith and Taylor, 2004, p.7). For instance, the official Facebook account of Hilton U.K has over 405, 300 followers who have access to the latest news and any valuable announcements made by the company. Social media platforms have therefore formed the primary distribution strategy of Hilton Hotels and Restaurant, U.K based on the convenience in reaching a wide range of consumers over a wide area (Balmer, 2006, p.7). The company also builds its branches in easily accessible locations to increase the convenience of the consumers in reaching the various services rendered by the company. Easy accessibility to the Hilton Hotel and Restaurant services, therefore, enables the company to attract a wide range of consumers in the competitive market.
In conclusion, the current profitability and the dominance of the Hilton Hotel and Restaurant in the United Kingdom hospitality market has been greatly influenced by its marketing mix which puts customer satisfaction above all. The marketing mix of the company is inclined towards establishing long term relationship with the consumers through earning their trust and loyalty to the services offered by the company (Smith and Taylor, 2004, p.5). The four P's marketing mix of Hilton Hotels and Restaurants in the United Kingdom has, therefore, enabled the company to meets the needs of the target consumers all over the region. Therefore, Hilton Hotels and Restaurants in the U.K has continued to increase its revenues and dominated the U.K market as a result of its marketing mix. The long-term relationship established between the company and the consumers has also ensured its continued expansion and sustainability in the U.K hospitality market. The marketing mix, therefore, has established Hilton Hotels and Restaurants in the United Kingdom as a brand attracting several consumers.
References
Adler, P.S., 2001. Market, hierarchy, and trust: The knowledge economy and the future of capitalism. Organization Science, 12(2), pp.215-234.
Balmer, J.M., 2006. Comprehending corporate marketing and the corporate marketing mix. Bradford University, School of Management. Pp. 1-18
Doole, I., & Lowe, R. 2008. International marketing strategy: analysis, development, and implementation. London, Cengage Learning.
Eisenmann, T.R., 2006. Internet companies' growth strategies: determinants of investment intensity and long‐term performance. Strategic Management Journal, 27(12), pp.1183-1204.
Fill, C., 2009. Marketing Communications: interactivity, communities, and content. Upper Saddle River, NJ: Pearson Education.
Holland, C.P. and Lockett, A.G., 2007. Mixed mode network structures The strategic use of electronic communication by organizations. Organization Science, 8(5), pp.475-488.
Smith, P.R. and Taylor, J., 2004. Marketing communications: An integrated approach. London: Kogan Page Publishers.
