4P+5C+Metrics Slides

Marketing in Hospitality & Tourism

  • BULL GATOR 4P - 5C Analysis & Key Metrics

  • Presented by UF Department of Tourism, Hospitality and Event Management

Learning Objectives

  • Apply the 4P and 5C concepts in marketing strategy development.

  • Understand similarities and differences between performance metrics across Hospitality & Tourism (H&T) business models.

The 4Ps of Marketing (Marketing Mix)

Overview

  • Focus on creating value for customers and stakeholders.

    • Product: The offering to satisfy wants or needs.

    • Promotion: Communication to engage with customers.

    • Place (Distribution): Where and how products are sold.

    • Price: How value is captured by the organization.

  • Considerations go beyond the final price to include revenue shares along the value chain.

Product

Definition

  • Anything offered to satisfy a market need, including:

    • Physical attributes (sizes, shapes)

    • Intangible features (services, support)

    • Varieties and packaging options

    • Branding and positioning elements.

  • Understanding customer desires in H&T is crucial—focus on the experience sought by consumers.

Promotion

Communication Strategies

  • All forms of communication to engage:

    • Traditional media (TV, print, radio)

    • Electronic media and service centers

    • Social media engagement (advocates, influencers)

  • Promotion aims to build awareness and engagement, emphasizing credibility and authenticity.

Place (Distribution)

Scope

  • Originally referred to the sale of physical products, now applies to intangible products/services in H&T.

Considerations in Marketing Strategy

  • Access to potential customers.

  • Efficiency in targeting specific markets.

  • Flexibility and scalability of distribution channels.

Price

Pricing Strategy

  • Represents payment for the value created through the other 3 Ps.

  • Important to evaluate not just final costs but where money flows within the value chain (wholesalers, retailers, etc.).

  • Assess whether decisions are based on rational criteria or emotional factors—impact on prices and competition.

The 5C Framework

Overview

  • External Cs:

    • Customers: Insights into demographics, behaviors, needs, etc.

    • Collaborators: Partnerships that drive synergy.

    • Competitors: Direct, indirect, and substitute competition.

    • Context or Climate: Environment's situation impact.

  • Company: Internal capabilities that differentiate from competitors.

Customer Segmentation

  • Segment customers by:

    • Demographics

    • Behavior and needs

    • Mode of transport

    • Psychographics

    • Home location

  • Be aware that individuals may segment differently per travel circumstances.

Collaboration and Competition

  • Collaborators play a synergistic role in supporting customer engagement.

    • For example, airlines and hotels benefit from partnerships.

  • Acknowledge the competition not just as adversaries but as part of a broad ecosystem.

4P-5C Alignment

Strategy Alignment

  • Ensure 4Ps and 5Cs align in a fact-based, forward-looking, coherent manner.

  • Introduce a 5th P - People, reflected in the 5C framework to emphasize its importance in hospitality relations.

Key Business Metrics by Business Model

Metrics Overview

  • RevPAR: Revenue per Available Room (Hotels)

  • RevPASH: Revenue per Available Seat Hour (Restaurants)

  • PASM: Revenue per Available Seat Mile (Airlines)

  • APCD: Available Passenger Cruise Days (Cruises)

  • Understanding how metrics relate can influence strategy and operations.

Reflective Questions

  • Consider consumer behavior changes concerning knowledge, beliefs, and expectations.

  • Understand what resonates with customers to encourage behavioral shifts in purchasing.

Contact Information

  • For questions, email the instructor: jnorsworthy@ufl.edu

  • Presented by UF Department of Tourism, Hospitality and Event Management.