What are the characteristics of the business market for James’ organization?
Business market in hotel industry is varied, even though most of the services are offered to the customers directly and they are presented at the consumer market. Dwelling upon James’ organization as about a hospitality service, it is important to consider the operations and business strategies applied for successful business. Being an International Hotel which features accommodation, convention facilities and restaurant, café and bar outlets, it attracts international clients.
Therefore, the business market of the organization is international and the demand to the performance is greater. James’ organization is involved into international competition, therefore, tough rivalry is present. James’ organization should apply to the investments for delivering strong financial performance. Being more accountable to shareholders, James’ organization guarantees sincere trust and greater financial injections.
The development of strong relations with the customers should be the priority of the affair (Hutt & Speh 2012). Working in hospitality business, James’ organization should work hard on creating appropriate services and making sure that the customers’ demands are met. Serving international customers and offering the services for business needs, James’ organization has predominant position among other hotels which are ready to accommodate international guests and offer them convention facilities for business needs.
How do business markets and business buying behaviours differ from consumer markets and consumer buying behaviours within different market sectors within the international hospitality industry?
Business market differs from consumer market by the final customer of the offered services. Services and products are sold to the companies and business organizations which have the right to resell the services to customers at business market. At the consumer market the products and the services are delivered to households and individuals (Havaldar 2005). Pride and Ferrell (2011) differentiate between business and consumer markets from the point of view of the purposes.
Thus, they state that markets “consists of purchased products and do not buy products for the main purpose of marketing” (Pride & Ferrell 2011, p. 158), while business markets “consists of individuals or groups that purchase a specific kind of product for one of three purposes: resale, direct use in producing other products, or use in general daily operations” (Pride & Ferrell 2011, p. 158).
Buying behaviour consists of all the members of buying process who are involved into decision making and products using. There are two types of buying behaviour, business buying behaviour and consumer buying behaviour. Business buying behaviour is denoted via the purchase of manufactured products and services by the government, organizations, institutions, etc. Consumer buying behaviour is defined as the purchase of the products by the individual customers. Conducting a research of either consumer or business buying behaviour it is possible to get to know the rate of demand and supply, buyers’ preferences, etc. (Pride Hughes & Kapoor 2011).
How will this assist James with his business and marketing decisions for the future? Analyse international customer and domestic customer
Understanding business market and its buying behaviour along with consumer markets and their buying behaviour may improve the hospitality performance of James’ organization and increase the customers’ rate as the understanding of the business processes correctly is the half way to success (Wright 2006). Being an international hotel, James’ organization attracts international customers, however, it should pay more attention to domestic segment as in spite of several exceptions domestic sector usually exceeds international one (Global Business 2012).
International consumers may be less numerous, however, their interest in James’ organization may be attracted by its business directed services. Moreover, international sector is important for the hotel due to the engagement of the foreign capital and creating a positive international image of the organization. Domestic customer is less demanding, however, the financial input from the domestic customers is lower (Ritchie, Brent & Geoffrey 2003).
What strategy is approach to human resources management?
Dwelling upon human resource management in the organization, motivation is considered as one of the most effective basis for work encouragement. Herzberg’s theory states that employees’ satisfaction depends on a particular set of characteristics while their dissatisfaction depends on another set of strategies. In other words, job dissatisfaction and job satisfaction are two specific categories which exist differently. Job satisfaction is based on employees’ achievements, advancement, responsibility and challenges, while dissatisfaction is more about work performance covered in company polices, technical quality, working conditions, salary, security, etc. (Miner 2007).
Yukl and Becker (2006) are sure that the implementation of a reward and recognition system through the empowerment is an effective motivational factor. It is impossible to disagree as empowerment gives a kind of freedom that encourages people for creativity and initiative. Management of emotional labour should be conducted by means of cutting employees’ working hours that increases job satisfaction and assists reduction of stressful condition (Mastracci, Newman & Guy 2003). Finally, it is a universal truth that initial and continuous trainings are a guarantee of successful working process. Therefore, human resource management should be developed.
Reference List
Global Business 2012, Routledge, London.
Havaldar, KK 2005, Industrial Marketing: Text and Cases, Tata McGraw-Hill Education, New York.
Hutt, MD & Speh, TW 2012, Business Marketing Management: B2b, Cengage Learning, Stamford.
Mastracci, SH, Newman, MA & Guy, ME 2003, ‘Emotional Labour: Why and How to Teach It’, Journal of Public Affairs Education, vol. 16, no. 2, pp. 123-141.
Miner, JB 2007 Organizational Behavior 4: From Theory to Practice, M.E. Sharpe, New York.
Pride, WM & Ferrell, OC 2011, Marketing 2012, Cengage Learning, Stamford.
Pride, WM, Hughes, RJ & Kapoor, JR 2011, Business, Cengage Learning, Stamford.
Ritchie, JR, Brent, C & Geoffrey, I 2003, The Competitive Destination: A Sustainable Tourism Perspective, CABI, New York.
Wright, R 2006, Consumer Behavior, Cengage Learning EMEA, Stamford.
Yukl, GA & Becker, WS 2006, ‘Effective Empowerment in Organizations’, Organization Management Journal, vol. 3, no. 3, pp. 210-231.