The Role of Marketing Concept in the Tourism and

Hospitality Industry in Pakistan

Abstract
Hospitality and tourism industry comprises businesses engaging by providing
accommodations, foods, recreational activities for visitors and tourists, while
comfort and catering services for others. The purpose of this research to
identify and examine the benefits to be derived when marketing concept is
applied in the tourism and hospitality industry. This research will be based on
descriptive research design. The marketing variables will be analyzed to
know how they influence customer retention. Some recommendations will
made that how the concept of marketing practice could be effectively
operate to have benefits over its competitors. Data will be collected from
different service industry of Pakistan especially hotels and tourists operators.
The data will be analyzed to know collectively to find out effectiveness of
marketing concept in tourism and hospitality industry of Pakistan.

1) Introduction:
Marketing concepts are marketing tools, philosophies use for determining,
anticipating the needs of market and to develop a mechanism that can fulfill
such needs in a beneficial way? In todays competitive world, businesses
must have an updated and integrated marketing system (set of tools &
philosophies) to strengthen the relationship with customers and to gain edge
in the market. Marketing mix comprises of product, price, place and
promotion, the effective and thoughtful use of such tools ultimately gives
competitive edge to the business in the market (Fatos 2010, Chonlada &
Bahaudin, Shahram & Marjan 2015).
Tourism and hospitality industries are interrelated and fastest growing
industries of the world. According to UNWTO, tourism contributes 10% of the
worlds GDP. Tourism refers to Traveling; it can be within or out of the country
or can be around the globe to explore destinations of interest, for

recreational activities, to visit historical and religious places. On the other

hand, hospitality refers to hotels, resorts, restaurants and services provided
with this. Hospitality industry provides food and accommodations facilities to
tourists. Tourism creates opportunities for hospitality industry.
By

using

marketing

concepts

in

tourism

and

hospitality

industry,

opportunities and needs can easily be identified. By making an integrated

marketing mix (4 Ps of marketing), companies can offer better benefits
(Product that tourist or customer wants), effectively build relationship with
their customers (by Promotions & Placement) at attractive price better than
the competitors. In short, tourism and hospitality industries will prosper more
when customers or tourists have knowledge (awareness of the products)
about various destinations of their interests and hotels, resorts that can
provide best foods and accommodations along with finest services to tourists
(Fatos 2010, Chonlada & Bahaudin, Shahram & Marjan 2015).
God gifted Pakistan a lots of beautiful destinations and famous places. There
are numerous classy coastal areas like Karachi and Gawadar, ancients places
like Taxila, religious points like Hassanabdal and hilly areas like Galiat and
HazaraDivison, people around the world and across the country travel to
these destinations each year. Although potential is very high but less use and
poor implementation of marketing practices regarding promotion of such
places for tourism and hospitality industry limiting its growth? In fact,
effective use of marketing concepts in informing tourists, people about such
areas will promote businesses in tourism and hospitality industry, which
ultimately results in overall boost in the economy. Best practices of
marketing in these industries will help in increasing Pakistans market share
in world tourism and hospitality industry. In fact, improvements or correct
use of marketing variables or tools will ultimately increase customer
retention and will impact positively both industries (Fatos 2010, Chonlada &
Bahaudin, Shahram & Marjan 2015 and Amy et al).

This paper will focus on studying the impact of marketing concepts on

tourism and hospitality industry. In Pakistan, limited research work done in
this context.

2) Research Question:
What is the role of marketing concepts in tourism and hospitality industry in
Pakistan?

3) Objectives:
Main objectives of this study is to,
i.
ii.
iii.

To find the role of marketing concepts in tourism industry.

To find the role of marketing concepts in hospitality industry.
To find out the commercial benefits that tourism and hospitality
industry is getting from marketing in Pakistan.

4) Significance of Study:
This study will examine the role of marketing concepts when applied to
tourism and hospitality industry of Pakistan. This study will identify different
marketing variables that can be beneficial when functioned in tourism and
hospitality industry. This study will also pave the path for future research
study specifically about different philosophies and tools usage in these
industries and their impacts.

5) Literature Review:
One of the main objectives of traveling by tourist across different parts or
destinations of the globe is to get attraction secreted with such destinations
(Romania 2014, Brown 2009 and Shahram & Marjan 2015). Tourism industry
is the worlds largest industry influencing economies and businesses of many
countries by creating opportunities (Romania 2014 and Shahram & Marjan
2015). Businesses attached with this industry should have an updated and
integrated business plan to indentify, anticipate the needs of customers

(tourists) and to satisfy them better than competitors called tourism

marketing. In fact, by using effective tourism marketing, firms and
businesses can survive only in todays world (Constantinides, 2014). Tourism
marketing is a managerial process that focuses on all activities through
which businesses plans from need identification to product development and
from product placement to attract customers towards the products
(Dosewell, 1997).
Hospitality refers to hotels, resorts, restaurants and services provided with
this. Hospitality industry provides food and accommodations facilities to
tourists. Tourism and hospitality industries are interrelated. In short, tourism
creates opportunities for hospitality industry. Hospitality and tourism
industries comprise of both tangible like food and intangible products like
service, experience associated with a specific journey etc. Marketing
concepts in hospitality industry also emphasis on profit maximization driven
by crafting values for the tourists or customers in order to accomplish the
needs. Successful marketing plan compose of combine efforts from all
employees at each level with the main aim to serve for the customers stake
(Amy et al).
Shahram and Marjan, 2015 did work to study the impact of marketing in
tourism industry. In their work, they use 7 Ps model (i.e. product, price,
placement, promotion, people, process and physical factor) to make an
integrated marketing mix in order to identify the marketing role in the form
these 7 variables in tourism industry. They interpreted from their study that
all of these variables are positively influence the tourism industry and if
these variables are applied through integrated marketing mix then business
will grow in tourism industry (Shahram and Marjan, 2015).
Romania in 2014 also did work in studying the role of marketing in tourism
and hospitality industry. According to him, tourism industry will improved
well by using effective marketing tools. According to him, promotional

activities like advertisement etc attract, stimulate and persuade tourists to

explore the beauty of nature and secrets hidden with it (Romina, 2014).
Marketing concepts

associated

with

hospitality

and tourism industry

comprises of two dimensions first the tangible part or item or product like
food, beverages etc that the business is offering satisfy the customers need
and second the intangible part services like actions, performances or
experiences associated with it (Amy et al).
Fatos in 2010 also did his work by analyzing the impact of marketing
concepts in tourism. In his study, he used 4 Ps (price, product, place and
promotion) to design marketing mix model. He defined each factor like
product is what that the customer wants to fulfill his need, price is the
amount that the customer is willing to pay for the product of their interest,
place is about easy availability of your product and promotion is the
communication with the customer to stimulate sales. He used descriptive
research study and concluded that product should be relevant with the need
of the customer at best affordable price, easily available and should be
effectively communicated with customers (Fatos, 2010).
Chonlada and Bahaudin also used 4 P in his research. According to him,
product comprises of two parts physical or tangible part and intangible part
like service, so providing quality products with best services are two key
factors that can keep customer retention. Price is amount that the customer
wants to pay in acquiring such product or service and it should be affordable,
flaxen and cutthroat. Promotion is the way by which companies can develop
the image of its product or service in the mind of customer (Chonlada and
Bahaudin).

6) Operational Definition of Variables and Description of

the Variables:

Marketing Concepts refers to an organizational function and a set of

processes for creating, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit the
organization and its stakeholders.
Marketing Concepts includes;
Product the thing that company or firm is offering to satisfy the needs of
tourists or customers. That must be relevant to the need of customer. The
intangible aspect of the product like service should be effective. In todays
world, physical part and non-physical part like service of the product has
equal importance. Services include experiences and the way product is
delivered to the customer particularly in hospitality industry.
Price the amount that the customer is offering in exchange of acquiring
that product. It must be competitive, fair and affordable.
Place it is related to the availability of the product.
Promotion how the products knowledge is communicated from company
to the customer.
Hospitality Industry refers to hotels, resorts, restaurants and services
provided with this.
Tourism Industry refers to traveling to destinations of interest for
recreational purpose or to get the attractions from nature or to explore the
beauty of nature.
In fact, effective marketing concepts means integrated marketing mix plan,
which gives relevant product with excellent services at affordable price and
that product, is easily available to the customer as it is communicated.
Relevancy of products characteristics should properly communicate and it
must be ensured by the company that specific product has the desired
qualities and characters as it is communicated through promotions. By this
marketing concept positively affects businesses in tourism and hospitality
industry.

7) Theoretical Framework:
Independent Variables
Dependent Variables

Marketing Concepts;

Product

Impacts
businesses
in Tourism
and
Hospitality
Industry

(Relevance

with Customers need and

Price

(Affordable &

Competitive)

Place

(Easily Available)

Promotion

(Effective

Communication)

The Marketing Mix Model

8) Hypothesis Development:
Does marketing concepts play important role in tourism and
hospitality industry of Pakistan?
Or
Does

marketing

concepts

significantly

affect

tourism

and

hospitality industry in Pakistan?

Or
Does marketing concepts affect positively tourism and hospitality
industry of Pakistan?