Hospitality digital marketing

Environmental analysis of Hilton Hotel

Digital marketing is being increasingly used by companies so as to increase their saes and reach to a large number of customers in a cost and time effective manner. This help them in reaching to new customers and track the changing needs and wants of customers so that innovation in their products and services can be brought which can help in attracting more customers. In order to sustain in the market successfully Hilton which is a global brand in hospitality industry must analyse its external environment so that so that opportunities and threats present in the market can be analysed. Following is the external analysis of Hilton so that external environment related to digital market can be analysed:

• Political: These are the factors related to the political situations of country which are related to the rules and regulation of ruling government like trade tariffs, tax rates etc. which affect businesses working in the country. UK is a politically stable country which means that the rules and regulations of country do not change frequently which benefits companies as they do not need to make changes in their company structure and norms due to changing country laws (Bowie and et. al., 2016).

• Opportunity: As there are no political restrictions on use of internet in UK and the support of government in digitisation of economy gives Hilton an opportunity to expand its digital marketing strategies so as to reach to a large number of customers.

• Threat: The government might affect advertisements of company which might lead to a lot of exposure of company facilities to inform customers about the hotel.

• Economical: These are the factors which are related to economic conditions of market which depend on purchasing power of people, GDP, interest rates etc.UK is economically stable which means that the purchasing power of people is high and economy of country is growing. These help businesses to sell their products and services profitably in the market.

• Opportunity: As the economy of UK is strong Hilton can use digital marketing so as to track the market needs and give its customers most luxurious services which can help in increasing their satisfaction thereby enhancing brand image of hotel.

• Threat: The increased use of digital marketing can increase the cost of Hilton which will lead to increased price of hotel. This might affect the company sales as customers will find other alternatives that can provide high quality service at lower price.

• Social: These are the factors which are related to society in which company functions and operate and are related to the composition of people belonging to different demographics, culture, religion etc. which affect their spending pattern thereby affecting business profits. The social factors in UK are favourable for Hilton hotel as people have high spending power which means that they can afford the services offered by hotel.Want to get Assignment Example ? talk to our Experts !

• Opportunity: Hilton can use digital marketing so as to reach to a large number of customers and increase their market base.

• Threat: The taste and preference of customers keep on changing which are difficult to be tracked even with extensive use of digital marketing which means that high investment in digital marketing can increase company costs (Dinis, Breda and Barreiro, 2020).

• Technological: These are related to the increased R&D promoted in country and advancements in technology which is possible in the country which affect business growth and expansion. UK is a technologically advanced country which means that digital marketing can be innovatively used to reach to a large number of customers in the country. This can help Hilton in expanding its business in UK and gain a competitive advantage in the market.

• Opportunity: The increased digital advancement can help Hilton to use digital marketing in an efficient manner so as to increase the customer base and increase its sales which can help in enhancing its profits.

• Threat: As the digital marketing is being used by all the competitors of Hilton like Marriott, Travelodge etc. it has lead to an increase in competition for Hilton which affects its business.

• Legal: These are the factors related to law and order of country which affect the functions and operations of business and set certain legal obligations which are to be followed by all the businesses in market. UK has strict laws and regulations related to businesses so that they can work under the legal framework of country. Also the laws of UK help in increasing the use of digital technology by businesses by supporting the digital platform expansion and building its infrastructure so that companies can be benefited through digital techniques.

• Opportunity: as the UK government support businesses to increase the use of digital media it can help Hilton in increasing the use of digital marketing so as to increase its sales.

• Threat: Hilton needs to follow all the laws about using technology in an ethical manner by following Data Protection Act, 2018 so that the misuse of information of its customers and all its stakeholders can be prevented (Filimonau and Naumova, 2019).

• Environmental: These factors are related to the environment of country which includes availability of resources, pollution etc. which also affects the businesses working in the environment. UK has enough resources available for expansion of businesses which can help Hilton in the growth and expansion of its business.

• Opportunity: The availability of resources can help it in providing services and products to its customers this it can increase its customer base through the use of digital marketing.

• Threat: With the increased tourism the depletion of resources will affect the country and will also increase pollution in the country thus negatively affecting the environment.

Key tools, platforms and channels used by organisations

Digital tools and techniques are used by businesses so that they can efficiently reach to a large number of customers and increase their brand image in market. Digitalisation has become a new trend which is used in each and every sector so that the processes and operations of businesses can become easy and systematic. This also helps the customers to easily use digital media thereby enhancing their convenience and increasing their satisfaction. Following are the digital media tools which are used by Hilton and one f its competitors Marriott:

Hilton hotel: In order to capture the attention of millennial Hilton use various digital marketing tools so that its presence in market can be increased and they can increase their sales and profits. The company spends more than 38% of its revenue on digital marketing so that the attention of customers can be captured which will help in increasing its sales and building a strong brand image in market which also help in retaining its existing customer base. Following are some of the tools used by company:

• Social media: Social media is the strongest digital media platform which can be used by companies to reach a large number of customers in an efficient and effective manner. Social media platforms such as Face book, Instagram, Twitter etc. are being used by most of the customers in the present era which means that the companies need to be active on this platform so as to reach to a large customer base efficiently. Hilton uses social media to increase its digital presence and get in touch with its potential customers (Gursoy, 2017).

• SEO: Search engine optimisation which is a process of controlling the quality and quantity of website traffic by increasing the visibility of a website for web users. Hilton uses SEO so that the visibility of its website can increase with every search of its customers which can help in attracting them towards the hotel services and increasing their sales. This technique help in increasing the brand image of company which is essential to attract new customers and build a new customer base thereby increasing its sales.

• Content marketing: This type of marketing involves sharing of materials related to business such as images, videos, blogs etc. which help in informing in detail about hotel facilities to customers and increasing their attraction towards company. Thus this tool also helps in increasing the customer base and building reputation of company. The information can help in gaining trust of customers and authenticating the services that are provided by hotel so that they can be attracted to purchase its services (Gustavo, 2019).Worried for Assignment Help ? Get our experts Help Now!

Marriott Hotel: This hotel chain is an American diversified hospitality company which provides lodging facilities to its customers and is the third largest hotel chain in the world. The headquarters of this chain is located in Maryland, US and it provides highly luxurious facilities to its customers. With the increase in competition in the market it is important that innovation in marketing is done so as to increase the attraction of customers and increase in its sales. Following are some digital marketing tools which are used by Marriott:

• Email marketing: This tool help in reaching to the potential customers directly by sending them mails about the offers, discounts, new facilities available etc. to their customers. This help in capturing the attention of potential customers towards the services of company which can increase the customer base of hotel.

• Google ads: These are one of the most important and effective digital marketing tools as it help in increasing the digital presence of company on the digital media platform and attracting the attention of customers. Google is being used by many people all around the world and increasing the advertisements on Google can help in attracting a large number of customers (Kriechbaumer and Teare, 2019).

• Social media: This digital is also being increasing used by Marriott to reach to its prospect as it the most fast and effective way through which a large number of prospects can be reached in a cost effective manner in real time. Thus social media is being used by Marriott so that they can be informed about various schemes, discounts and offers that the company provides from time to time so that people can plan their stay in the hotel.

Plan for digital marketing activities to support Hilton hotel

In order to remain competitive in the market it is important that the companies use digital marketing so as to reach to their customers and increase their presence in the market which helps in building their brand image and also help in increasing company sales. It is important that an effective digital marketing plan is developed by company so that the investments done by company can be efficiently utilised and the objectives of digital marketing are achieved. This plan can help the company in gaining a competitive edge in the market and dealing effectively with competition in the market. Following are the digital marketing tools that are developed by Hilton hotel so as to achieve its marketing goals:

Luxury business channel

a) Identify the channel: It is the most essential step in developing a digital marketing plan for company as it will determine the type of its target audience and the ability of channel to attract the desired type and number of customers. In order to make the luxury business channel of company effective it is important that high income people are attracted towards the company so that the luxurious facilities can be efficiently sold to customers. The customers belonging to this section generally prefer comfort and refreshment activities so that high value can be created for their money which can help in increasing their satisfaction and increase company sales (Lanz and Carmichael, 2015). This means that in order to attract rich class people they need to be attracted through channels which can give them a detailed idea about the facilities which will be offered by the company. Content marketing, Google ads, Facebook and twitter can be used by the company to efficiently attract the customers to this section. These tools can help in attracting customer belonging to high class section of the society.

b) Developing objective: After selection of marketing channel it is important that objectives are set which can help in improving the performance of these platforms so that high profits can be earned by the company. Following are some of the objectives of Hilton:

• To increase its sales by 20% in the next 6 months.
• To increase its customer base by 25% in next 1 year.
• To increase its online presence so that a large number of customer can be reached.

In order to achieve these objectives it is important that Hilton render to its customers high quality of services and products so that their experience can be enhanced and their goodwill can be increased. Also it is important that the tastes and preferences of customers are timely analysed which can help in providing them with services that can give them maximum satisfaction.

c) Determine target audience: At this step the target audience is determined which can best suit the luxury segment of the hotel and can help in increasing its sales. The company focuses on providing high quality services to its customers which means that the main target audience has high spending power so that they can afford the highest quality of service which can help in enhancing their experience. This also helps in building a strong brand image in market (Leite and Azevedo, 2017).

d) Generate integration: At this stage the marketing team of hotel combines the online and offline marketing channels so that effective results can be achieved. This also help in attracting a large number of customers through different marketing channels so that a competitive edge can be gained in the market.

Active holiday seekers

a) Identifying the channels: It is important to select a suitable marketing channel so that the holiday seekers can be efficiently reached all across the world which can help in increasing its sales and increase its customer base. Hilton hotel can use a variety of tools and techniques so that a large number of customers can be reached like by using the social media platform, through e-mails, advertisement on various channels etc. This can help in gaining the attention of holiday seekers so that they can enjoy a high quality vacations which builds strong brand image of company (Litvin, Goldsmith and Pan, 2018).

b) Developing objectives: Hilton hotel then set certain objectives which it intends to achieve through the marketing strategies so that sales can be increased and profits can be earned by company. These objectives can help in giving best quality of services to its customers so that their holiday experience can be enhanced which also help in building string brand image in the market. This also helps in maintaining healthy and long-term relations with their customers so that they can be retained for future.

c) Determining target audience: At this stage the target audience is determined so that their tastes and preferences can be analysed which can help in improving company services so that customer needs and wants can be efficiently achieved. The company can target thee young travellers by attracting their attention through offers on rooms, facilities and services so that they can enjoy their travel at low expenses and having high quality of accommodation services. Also vacation packages can be launched by Hilton hotel so that a large number of travellers can be attracted and the overall profitability of company can increase.

d) Generating integration: At this stage various channels of communication are integrated by Hilton hotel so that competition can be dealt with in an efficient manner. Communication can help in building strong relations with customers along with discovering their new or probable trends so that they can be provided with goods and services that can help in increasing their staying experience (Minazzi, 2015).

Methods to evaluate, monitor and measure digital marketing effectiveness

In order to determine the effectiveness of digital marketing techniques used by Hilton hotel it is important that they are evaluated by using effective methods so that improvements can be made in the digital marketing methods so that company goals can be efficiently achieved. It is also important as it help in addressing to the changing needs of the market so that a brand image can be built which helps in attracting a large number of customers. From the above digital marketing plans which are developed for luxury business division and holiday seekers it can be said that they need to be evaluated and monitored so that improvements can be made so that changing customer needs can be efficiently met in an effective manner. Following are some of the tools which can help in monitoring the digital marketing effectiveness:

• CTR (Click through rate): This method can be used for evaluating the effectiveness of digital marketing as CTR determines the ratio of users who click on a specific link to the number of total users who view the page, e-mail or advertisement. This helps in determining the number of people who actually visit the online site of company which can help in analysing the effectiveness of company's digital marketing techniques to attract the prospect customers. If the numbers of visitors are more then it determines the success of online marketing in achieving its objectives (Pappas and Bregoli, 2016).

• Questionnaire: Through a questionnaire data and information can be collected from the customers of Hilton hotel related to their experience which can help in evaluating the information to determine the effectiveness of digital platform in attracting customers. If the answers of customers are positive then it means that the hotel is able to provide them with services which are being promised to them on the digital platform. This help in gaining trust of customers and retaining them which is important to increase company sales.

• ROI metrics: This is the most important tools which can help in determining the effectiveness of digital marketing in achieving its objectives as this evaluates the amount of profit or loss earned in a year as compared to the investments made by company. If the ratio is positive which means that the company has earned profits on its investments and vice versa. This is an effective tool as it gives actual figures to the company on its ability of using digital marketing in an efficient and effective manner (Saura, Reyes-Menendez and Palos-Sanchez, 2020).

CONCLUSION

From the above report it can be concluded that digital marketing plays an important role in the success of businesses in the present era which means that various digital marketing platforms must be used by businesses so as to gain the attention of customers and achieve a competitive advantage in market. Also it can be said that various external environmental factors affect the success of digital marketing which must be analysed by company so that they can use digital platform in the most efficient manner. Further the application of digital marketing requires development of a plan so that it can be efficiently applied and increase company profitability. Various tools must be used to evaluate the effectiveness of digital marketing so that improvements can be made and sales can be increased.

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