Marketing in Small Hotels

Marketing Intelligence & Planning
Marketing in small hotels: a qualitative study

Jane Moriarty, Rosalind Jones, Jennifer Rowley, Beata Kupiec‐Teahan,
Article information:
To cite this document:
Jane Moriarty, Rosalind Jones, Jennifer Rowley, Beata Kupiec‐Teahan, (2008) "Marketing in small
hotels: a qualitative study", Marketing Intelligence & Planning, Vol. 26 Issue: 3, pp.293-315, https://
doi.org/10.1108/02634500810871348
Permanent link to this document:
https://doi.org/10.1108/02634500810871348
Downloaded by Universitas Andalas At 01:14 17 October 2017 (PT)
Downloaded on: 17 October 2017, At: 01:14 (PT)

References: this document contains references to 77 other documents.
To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 8776 times since 2008*
Users who downloaded this article also downloaded:
(1994),"Marketing Strategic Alliances: The Small Hotel Firm", International Journal
of Contemporary Hospitality Management, Vol. 6 Iss 3 pp. 25-30 <a href="https://
doi.org/10.1108/09596119410059227">https://doi.org/10.1108/09596119410059227</a>
(2008),"Do small and medium-sized hotels exploit search engine marketing?", International
Journal of Contemporary Hospitality Management, Vol. 20 Iss 1 pp. 90-97 <a href="https://
doi.org/10.1108/09596110810848604">https://doi.org/10.1108/09596110810848604</a>
Access to this document was granted through an Emerald subscription provided by emerald-srm:602783 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for
Authors service information about how to choose which publication to write for and submission guidelines
are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
providing an extensive range of online products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee
on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.
*Related content and download information correct at time of download.

The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-4503.htm
Marketing in
Marketing in small hotels: small hotels
a qualitative study
Jane Moriarty and Rosalind Jones
Bangor Business School, University of Wales, Bangor, UK 293
Jennifer Rowley
Manchester Metropolitan University, Manchester, UK, and Received May 2007
Revised December 2007
Beata Kupiec-Teahan Accepted January 2008
Scottish Agricultural College, Edinburgh, UK
Abstract
Purpose – The purpose of this paper is to contribute to the understanding of marketing in small
hotels specifically, and, more generally, to the area of SME or entrepreneurial marketing.
Design/methodology/approach – A deductive-inductive approach based on interviews with 15
small hotel owner-managers, supported by web site analysis and three in-depth case study interviews,
was used to provide a profile of marketing activities in small hotels in North Wales.
Findings – The application of Carson’s levels of activity model to characterise and classify the marketing
strategies and activities of the respondent hotels suggested that for these small hotels an additional category
would be helpful in characterising marketing activities, inexpert marketing. On this basis, five of the
hotels were in the non-marketing category, eight in the inexpert category, and two in the implicit category;
none were in Carson’s sophisticated category. Further, any one hotel might fall into different categories on
the basis of their engagement with different areas (such as marketing knowledge, or promotion).
Originality/value – These findings suggest that, whilst the search for a definition of entrepreneurial
marketing is useful in articulating the difference between what SMEs do and marketing theory, there
is also a need to recognise that there is a spectrum of different styles of and approaches to marketing
adopted by different SME owner-managers even within a specific sector, such that it is important not
to neglect to develop models which help owner/managers, advisors, consultants and academics to
understand the diversity in this sector.
Keywords Hospitality services, Marketing strategy, Tourism marketing, Hotel and catering industry,
Small to medium-sized enterprises, United Kingdom
Paper type Research paper
Introduction
SME’s are a significant proportion (99.9 per cent) of companies in the UK (Department
of Trade and Industry Small Business Service, 2005). This means that they make a
significant contribution to the economy, globalisation, employment and innovation
(PIU and SBS, 2001). On the other hand, there is evidence to suggest that the business
success of SME’s might be enhanced through greater attention to marketing issues
(Blankson and Stokes, 2002; Brooksbank et al., 2004). Small firms are perceived to be
valuable to the economy, but they have been shown to have inherent weaknesses with
respect to capitalisation and marketing awareness and practice, which make them Marketing Intelligence & Planning
Vol. 26 No. 3, 2008
vulnerable (McCarton-Quinn and Carson, 2003; Kirby, 2003). pp. 293-315
This paper reports research in a specific sector of SMEs, the small hotel sector. Tourism q Emerald Group Publishing Limited
0263-4503
is also important to the UK economy, being one of the largest industries in the UK, and DOI 10.1108/02634500810871348
MIP accounting for 3.5 per cent of the UK economy and worth approximately £74.2 billion in
26,3 2003 (the latest figures available). This contribution is comprised of £14.2bn spent on
visits to the UK by overseas visitors (in 2005), £3.2bn paid in fares to UK carriers, and
around £56bn (2004) from UK domestic tourism (Visit Britain, 2007). In 2005, the UK
ranked fifth in the international tourism earnings league. The hotel industry makes a
significant contribution to this revenue; in 2003, the turnover for the hotel industry was
294 £10.9bn. On the other hand, demand in the UK for tourism has been volatile and difficult to
predict in recent years. For example, in 2004 the number of trips taken by UK residents and
the number of tourism nights spent in the UK by residents both dropped by 20 per cent.
The picture was worse in Wales as the number of tourism nights spent in Wales decreased
by 31 per cent and the amount spent on tourism dropped by 16 per cent (Wales Tourist
Board, 2006). However, recent visitor figures show that the number of tourists visiting
Wales has now improved (Visit Wales, Wales Tourist Board, 2005).
The research reported in this paper seeks to make a contribution to the understanding
of marketing in small hotels specifically, and, more generally, to the area of SME or
entrepreneurial marketing. Interviews, supported by web site analysis and three
in-depth case study interviews, were used to provide a profile of marketing activities in
small hotels in North Wales. Carson’s (1990) levels of activity model was used to support
the interpretation of the findings of the research; this process led to a proposal for the
revision of the model in order to better represent the diversity of marketing approaches
adopted by different owner/managers.
The paper commences with a literature review that summarises the key literature on
SME and entrepreneurial marketing. The methodology section outlines the selection of
the sample, and the design and conduct of telephone interviews and in-depth interviews
with owner/managers. The findings, which suggest the insertion of an additional
category in Carson’s model offer definitions of the categories in the revised model, and
then profile the sample against the model. Detailed case study reports offer further
in-depth insights into the marketing activities of a hotel in each of the categories.
The conclusion and recommendations sections summarise the findings arguing for the
development of models that reflect the diversity of entrepreneurial marketing.
Literature review
There is considerable research evidence that suggests that marketing in small- to
medium-sized businesses is different, and that to benchmark or even discuss marketing
in these firms in conventional marketing terms is unlikely to generate any real insights
into how SME’s engage with their customers, find out about their competitors and other
factors affecting their marketplaces, and develop their marketing mix. This literature
review summarises this literature in order to offer a contextual backdrop for this
research. This involves reviewing the literature on SME marketing, and the related
literature on entrepreneurial marketing. Further, as a foundation for the research design,
approaches to the measurement of marketing in SME’s are reviewed, and Carson’s (1990)
model is proposed as a framework for design and analysis in this work. The literature
review concludes with a summary of research on hotel marketing.
There is considerable evidence which shows that small business success (Smith, 1990)
and survival (Blankson and Stokes, 2002; Brooksbank et al., 1999, 2004) is dependent on
the firms marketing efficiency, with many authors citing lack of marketing awareness as a
key cause of company failure (Fuller, 1994; Gadenne, 1994; Hogarth-Scott et al., 1996;
McLarty, 1998; Murdoch et al., 2001). Several authors argue the importance of planning for Marketing in
SME’s since it clarifies management thinking, provides a sense of direction and introduces small hotels
a marketing perspective to activities such as setting objectives, motivating and directing
staff, establishing priorities and improving the quality of market knowledge (Analoui
and Karami, 2003; Carson and Cromie, 1989; Hill and McGowan, 1999). On the other hand,
there is an ever strengthening recognition that the formal approach to marketing planning
that is embedded in marketing theory and promoted by marketing educators is not 295
appropriate for many SME’s (Lewis et al., 2001; Blankson and Omar, 2002; Hill, 2001a, b;
McCarton-Quinn and Carson, 2003).
SMEs characteristics influence the ways in which they informally implement the
marketing planning process. SMEs tend to focus on short-term goals rather than long-term
objectives due to time constraints (Beaver and Harris, 1995) and prefer action rather than
planning (Matthews and Scott, 1995). Carson and Cromie (1989) propose two factors that
considerably influence marketing planning in small firms, namely the “evolution” of
marketing practice (the relationship between the business life-cycle and stages of
marketing) and the controlling influence of the owner/manager upon the firms marketing
activity. Various authors agree that SME owner/managers prefer simple, pragmatic and
intuitive marketing planning over complexity and formality (Carson, 1999;
McCarton-Quinn and Carson, 2003; Lancaster and Waddelow, 1998) although Walker
et al. (1992) found evidence that firms with formal marketing plans outperformed those
without.
Such a pragmatic and intuitive approach to marketing planning has its roots in the
nature and management of small firms. Small businesses differ in their business objectives
and management style from large businesses (Leppard and McDonald, 1987). They also
operate under severe financial and human resource constraints, lack specialised
marketing expertise and often seek controlled growth rather than sales maximisation,
market share and profit like larger firms (Gilmore et al., 2001). Most management decisions
are made by the owner/manager, and as SME’s tend not to employ specialists,
owner/managers are obliged to become “generalists” undertaking a wide range of
business activities (Carson, 1999). In turn this means that SME’s are also significantly
characterised by the management style and personality of their owner/managers (Carson
and Cromie, 1989; Dewhurst, 1996; Hill, 2001a, b; Hurmerinta-Peltomaki and Nummela,
1998; Stokes, 1995). The owner/manager and their limited (or lack of) marketing ability
(Stokes, 1995) is the marketing expertise of the SME.
SME’s have the advantage of having closer contact with customers and are more
flexible, responsive to change and more innovative than most larger firms. They rely
significantly on word-of-mouth for promotion (Stokes, 2000; Stokes and Lomax, 2002) and
utilise personal social and business networks for information gathering, idea testing and
advice and draw on experiential knowledge to intuitively develop their competencies
(Carson, 1999; Carson and McCarton-Quinn, 1995; Gilmore et al., 2001; Hill, 2001a, b;
Stokes, 2000). Some researchers suggest that it is difficult to disentangle such networking
and relationship building from entrepreneurial action, and thereby imply that marketing
orientation goes to the core of the innovativeness that is essential to SME success
(Hult et al., 2003; Wilson and Stokes, 2004; Zontanos and Anderson, 2004).
Pursuit of an understanding of the link between entrepreneurial or innovation
orientation and marketing or customer orientation has led to attempts to establish
a new paradigm “entrepreneurial marketing”. Entrepreneurial marketing is based on
MIP what entrepreneurs do (Stokes, 2000), and therefore has close links to research on SME
26,3 marketing, but is also proposed as being applicable to marketing in large organizations
(Miles and Darroch, 2004). Researchers suggest that marketing has much to offer the
study of entrepreneurship (Hills, 1987; Murray, 1981) and conversely, entrepreneurship
can look to marketing as the key function of the firm, which can encompass innovation
and creativity (Collinson and Shaw, 2001). Stokes (2000) discusses entrepreneurial
296 marketing in terms of marketing philosophy, marketing strategy, marketing mix, and
marketing intelligence. Entrepreneurial marketers have an innovation orientation
rather than a customer orientation to marketing philosophy, yet their marketing
strategy is crucially dependent on targeting of a specific customer group as a starting
point. Relationships with customers and word-of-mouth are the key aspect of
promotion, within the marketing mix, and marketing intelligence relies strongly on
business and trade networks.
There are a number of approaches to measuring market performance, activities and
effectiveness. The literature of market orientation has, for example, spawned a number of
“scales” or “instruments” for measuring the degree of market orientation exhibited by
firms (Blankson and Omar, 2002; Deng and Dart, 1994; Deshpande et al., 1993; Gray et al.,
1998; Kohli and Jaworski, 1990; Narver and Slater, 1990). Amongst the models and
instruments for measuring marketing performance, Carson’s six exploratory models are a
particularly useful basis for a qualitative enquiry into marketing performance and are
grounded in the SME sector. These models concentrate on “Marketing limitations”
(limitations of expenditure, expertise and impact); “Levels of generalisation” (how firms
adapt their marketing practices according to their industry/situation); “Planning versus
operations” (the balance of marketing implemented); “Marketing planning adapted for
small firms” (limited or substantial adaptation); “Stages of marketing development” (The
evolution of marketing – reactive/tinkering/entrepreneurial and proactive marketing
stages) and finally, “Levels of (marketing) activity”. Fuller (1994) suggested that Carson’s
sixth model, “Levels of activity” should be modified, by moving strategy to Model 2 (levels
of generalisation) and, proposed some conditions that should be met before a firms
marketing can be regarded as “sophisticated”. Carson’s level of activity model examines
marketing activities on the basis of a number of key aspects of marketing knowledge and
activities. In addition the model offers categories for different types of engagement with
marketing, thereby facilitating an analysis that supports the profiling of marketing within
an SME sector, encouraging differentiation and acknowledgement of diversity.
This research focuses on marketing in small hotels. This is a particularly important
sector in which to explore marketing strategies. Hotels, and specifically small hotels,
make a significant contribution to the economy, yet in common with other small
business are very dependent on the owner/managers expertises and aspirations.
As services, hotels exhibit the characteristics of services, such as intangibility,
inseparability, variability, perishability, and lack of transference of ownership
(Fisk and Tansuhaj, 1985; Kotler et al., 2002; Lovelock, 1983), which impact on both
their practices and their optimal marketing mix. In addition, there are a number of
other factors that impact on hotel marketing: seasonality; the interdependence of
tourism products; high-fixed costs of operations; and, the availability of the product
being fixed in time and place. Marketing is often used to manage the fluctuations in
demand associated with seasonality. The interdependence of tourism products affects
the industry as consumers make purchase decisions based on a combination of
products and services, such as accommodation, visitor attractions and facilities like Marketing in
shops and restaurants. Therefore, the marketing of tourist industry members such as small hotels
hotels may be implemented in conjunction with tourist boards, attractions and travel
agents. High-fixed costs and low-variable costs mean that additional sales result in
profit at little or no extra cost. Consequently, generating extra sales is another principal
feature of tourism marketing, along with generating off peak demand and affiliate
marketing (Middleton, 1994). 297
Research on marketing in hotels has addressed both the impact of marketing on
business performance, and the contribution of relationship marketing strategies to
marketing in hotels. Various authors have noted the impact of marketing orientation or
marketing effectiveness on business performance for hotels (Cizmar and Weber, 2000;
Nichols and Roslow, 1999; Sin et al., 2005). Other researchers have pursued the theme of
satisfying customer demands from a relationship marketing perspective. There is a
recognition of the need for retention marketing (Shoemaker and Lewis, 1999) and the
importance of being able to measure and manage the antecedents and consequences of
relationship quality (Kim and Cha, 2002). On the other hand, customer relationship
management poses some interesting challenges for small independent hotels. Imrie and
Fyall (2000) remind us that whilst large hotels have sophisticated CRM systems based on
strong branding and loyalty schemes, such options are not available to small hotels
because many customers do not re-visit small hotels. They typically do not visit the same
location for business and leisure and are therefore unlikely to use the same hotel for both
functions, and further, leisure customers often like to visit different locations in pursuit of
variety. Hotels therefore need to attend to customer acquisition as well as customer
retention. Coviello et al. (2006), when studying the tourism accommodation sector, suggest
that this is achieved through a combination of a transaction and a relationship approach to
marketing. Stokes and Lomax (2002) have emphasised the importance of the management
of word-of-mouth recommendations for customer acquisition.
In summary, there is recognition that SME marketing planning and activities do not fit
the traditional notions of marketing which have emerged in the context of larger
businesses. Instead they adopt a more pragmatic and intuitive approach and make
significant use of networks and word-of-mouth. In pursuit of developing an understanding
of market planning, models such as Carson’s level of activity model have been proposed.
Small hotels, in common with other SME’s are pre-occupied with customer acquisition and
retention, but they also face a range of marketing challenges that are unique to their sector.
Methodology
The broad aim of this research is to offer further insights into marketing in small
businesses, focussing specifically on one segment in the service sector, small hotels. An
interview-based qualitative approach was adopted in order to capture a profile of the
marketing approaches of each of the respondents, and thereby to classify their
activities on the basis of Carson’s (1990) level of activity module. It was anticipated that
this would lead to a profile of the levels of marketing activities in small hotels. In the
sense that this study uses Carson (1990) and Carson and Cromie (1989) as a point of
departure this research was deductive. But, during the analysis phase inductive
elements were introduced as a result of the opportunities provided by the rich data.
A qualitative approach was adopted because it was deemed to be the most appropriate
way to develop an understanding of marketing in the study context because it offers
MIP the opportunity to “listen” to owner/managers and to engage in a dialogue. In addition,
26,3 qualitative methods are accepted as appropriate for inquiry into SME and
entrepreneurial marketing (Stokes, 2000).
To build a picture of the research environment, extensive desk-based research was
undertaken. Information from sources such as the Wales Tourist Board research web
site (www.industry.visitwales.co.uk), the Tourism Partnership North Wales Business
298 Plan (www.tpnw.org/english/businessplan.htm) and the Office for National Statistics
(www.statistics.gov.uk) was collated to develop a background on the hotel industry in
North Wales.
The sample population consisted of small hotels located in North Wales that met the
following criteria: 3-30 employees; 10-60 rooms; Wales Tourist Board quality ratings of
1-4; managed by sole proprietor or partner; and, the owner/manager has sole responsibility
for marketing planning and implementation. Details of all micro and small hotels in the
North Wales area were obtained from the government organisation “Business Eye” (www.
businesseye.org.uk). From this data, a sample of potential participants who met the
required criteria were identified. From this sample, 23 hotels were approached from
which 15 owner/managers agreed to participate in telephone interviews. Based on the
results of the 15 interviews, three hotel owner/managers were then selected to
participate in loosely structured office based in-depth interviews, to obtain information
that is more detailed and to facilitate the construction of case studies. These hotels
were selected on the basis of their responses to the initial interviews; they were judged
to be quite different in their approaches to marketing, and potentially illustrative of the
categories in Carson’s levels of activity model. Malhotra and Birks (2003) suggest that
the depth interview is the best way to approach business research with managers; they
recommend holding the interview in a familiar location such as their office, to
encourage the respondent to be more honest, reflective, open and relaxed. The
interviewer adopted a non-directive approach with minimal prompts during both the
telephone and in-depth interviews. By adopting this style of data collection, it is felt
that an authentic picture of the firm’s marketing practices has been revealed.
Telephone interviews were loosely structured using the following questions which
are based on the topics used by Carson and Cromie (1989); these topics provided both a
useful framework covering all aspects of marketing knowledge and activities, and also
ensured comparability between this research and earlier work. The questions were
open-ended and were used to direct the conversation whilst avoiding imposing any a
priori categorisations, terminologies or value sets. Interviews were tape recorded and
later transcribed for analysis purposes:
.
Could you tell me something about the market for your products and services?
(market knowledge).
.
Tell me something about your competitors (competitor knowledge).
.
Could you tell me something about your customers? How many do you have?
Who are your key customers? (customer knowledge).
.
Where do you gather information that lets you know what is happening in your
markets? How do you keep in touch with changes in your markets? (market
information).
. What do you consider to be the most important event in your market over the
past few years? (significant event).
.
Why do your customers buy from you rather than your competitors? What Marketing in
advantage do you offer them that the competition cannot meet? (competitive small hotels
advantage).
.
What methods do you use to promote your products and services? (promotion).
.
Could you tell me how you go about setting the price(s) for your goods and
services? What are the principles underlying your pricing? (pricing).
299
.
Tell me about your communication with customers after you have supplied them
with your services (after sales service).
To gather further insights face-to-face in-depth interviews were conducted in three case
study hotels. The case study respondents were asked the following questions. Again
interviews were recorded and later transcribed for analysis purposes:
.
Whose responsibility is marketing in your company?
.
What area of the business is the most important?
.
What level of marketing planning do you undertake?
. What factors affect bookings?
.
Do you work in conjunction with any other companies such as coach operators,
tourist attractions, or other competitors?
.
Is there anything you do to improve occupancy rates during the off-peak season?
Initial analysis of the telephone interview transcripts was performed on a theme by

theme basis. Each transcript was analysed in turn for the presence of any comments
relevant to a given theme (e.g. competitor knowledge). Once all such comments for a
given theme had been identified in a specific transcript, an attempt was made to allocate
the hotel to one of the categories in Carson’s model. However, as the analysis progressed
it became apparent that it was difficult to allocate hotels to the categories in the model,
with many responses lying between Carson’s descriptors for “little or no marketing” and
“implicit or simple marketing”. In order to navigate this difficulty an additional
category, “inexpert marketing” was proposed and used in the further analysis of the
data. Subsequent to this initial analysis of the telephone interview data, a theme analysis
of the in-depth interviews was undertaken in order to illustrate more fully the approach
to marketing taken by hotels in the “little or no marketing” “inexpert marketing” and
“implicit or simple marketing” categories. In this process, some interesting comments on
customer relationships surfaced; these are briefly discussed in the findings section.
Findings
This findings section outlines the proposed adaptation of the level of activity model,
and then provides a profile of the sample based on that analysis. Next, case study
profiles, based on in-depth interviews are presented in order to illustrate the categories
in the model. The section closes with some comments on customer relationship issues.
The development of the model

As discussed above, data analysis suggested an adaption to Carson’s (1990) level of
activity model in the shape of a new category, labelled “inexpert marketing”. Figure 1
shows the categories in the new model.
MIP To make the adapted model operational the following descriptions of a non
26,3 marketing, implicit marketing and sophisticated marketing SME hotels have been
developed, based on literature derived from several examples of Carson’s work, and
supplemented by developments from the case study, with a new profile specifically
developed as a result of this work for the additional category of inexpert marketing
(Carson, 1990, 1999; Carson and Cromie, 1989; Carson et al., 1995) (Figure 2).
300 Non-marketing. The non-marketing firm defines its markets in very general terms
such as “young people” has no plans for the future and has little idea who customers
are. It does not collect or use market information and believes that no significant events
have occurred recently in its market. Non marketers only consider competitors within
the immediate vicinity and are unable to relate their “benefits” defined competitive
advantage to competitors. Few promotional tools are employed, cost plus pricing
strategies are used, customer service is equated with complaints, with after sales
service viewed as unnecessary.
Inexpert marketing. The additional category of “inexpert marketing” is a level of

marketing between non-marketing and implicit marketing. The firm whose level of
marketing planning is “inexpert” has some understanding of the relevance of marketing
and attempts to carry out marketing effectively, but does not have the required
knowledge or experience to do so successfully. As such it has not yet become engaged in
marketing as a natural part of business activity and as such can be described as having a
“non-instinctive” ability to market. A firm with inexpert marketing is seen as one that
defines its market in terms of size, location and possibly competitors. It has minimal or
no understanding of segments and does not employ targeting techniques, though it is
aware of its market position. Although there is some knowledge of competitors (usually
those in the same geographic region who offer similar benefits and prices) it does not
consider those in other areas or sectors. The inexpert marketer knows its customers, can
distinguish between key and normal customers (although they are not segmented) and
may hold their contact details, but they are not actually contacted. A few relevant
sources of market information are gathered, informally recorded and then used casually
to inform decisions. The inexpert marketer is aware of key events that affect the market
and can describe its competitive advantage, briefly linking it to competitors and
customer benefits. Several promotional methods are used, although some may not be
suitable or effective and similarly, a marketing mix is devised, but the elements may not
be complementary. Pricing decisions are based on what the market will bear and
competitors prices and although pricing is viewed a function of finance, clever pricing
decisions such as timely discounts are made. Although the inexpert marketer considers
customer service necessary, it has little awareness of the opportunities it offers.
Implicit marketing. The implicit marketing firm defines its markets in terms of
segments, size and location, although segments are not fully developed, targeting is
carried out. It is aware of the number of customers and size of its customer base and
can differentiate between key and normal customers. Marketing has increasingly
become an “instinctive” activity with the use of numerous complementary sources of
Figure 1. Little or no Inexpert Implicit/Simple Explicit/Sophisticated

Adapted “levels of
marketing activity” model Marketing Marketing Marketing Marketing
Marketing in
Marketing level
Marketing Non- Inexpert Implicit Sophisticated
small hotels
activity marketing marketing marketing marketing
Market Very general Defines Defines market Full
knowledge – no plans market in in terms of size, understanding
terms of size, location and of its market
location, segments. and peripheral 301
competitors. Conducts some markets, with
No targeting targeting well developed
market
segments and
targeting
Competitors Considers Some A more in-depth Full awareness
immediate knowledge of knowledge of of close and
competitors close close competitors, peripheral

only competitors related to competitors
understanding of which informs
competitive development of
advantage competitive
position
Customers Little Knows its Aware of size and Customer
knowledge of customers. segments in relationships
who Has contact customer base, managed
customers are details- but and through
doesn’t use differentiates sophisticated
these, or between key and CRM system.
segment other cusomters, Loyalty
customers possibly with aid schemes often
of CRM used.
database
Market Collects none Limited and Numerous Relevant
information informal complementary sources
approach to sources applied harvested
collection informally to regularly and
create and consistently and
maintain a information
competitive recorded for
advantage formal decision
making and
planning
Significant Believes none Aware of key Full Is able to
event have occurred events understanding of anticipate or
market events influence
and their impact market events.
Competitive Poor Can describe Understand the Can clearly
advantage awareness and competitive value of their define
articulation advantage competitive competitive Figure 2.
advantage and position and Adapted “levels of
marketing activity” model
(Continued) with detailed profiles
MIP has plans for how its offering
26,3 developments to
capitalise on it.
defeats those of
competitors.
Promotion Few tools Uses several Uses several Is integrated,
used promotional proactive proactive and
methods, but promotional effective.
they are not methods
302 always the
most suitable
Price Based on cost Based on Based on what Used to
plus pricing what the the market will complement the
market will bear, marketing mix,
bear and competitors adding
competitor changes, and perceptions of
prices customers’ value value or
perceptions prestige.
After Sale Deemed Recognised as Viewed as an Viewed as an
Service unnecessary necessary, but opportunity for opportunity to
limited use of proactive interact with the
opportunities engagement customers,
with customers. gather
information and
build
Figure 2. relationships
market information applied in an informal and balanced manner to gain a competitive

edge. This firm fully understands significant market events and their impact on the
firm, can explain how competitive advantage sets the firm apart from competitors
(although cannot detail how it defeats them) and has areas or markets under
consideration for future expansion. The implicit firm utilises several proactive
promotional methods and is able to skilfully mix the “4 P’s” of marketing. Price is
based on what the market will bear, competitor’s charges and the customer’s
perception of value and the firm is able to use price to complete the product. Service is
viewed as an opportunity and the implicit firm also regularly contacts customers to
ensure needs are being met and to inform them of new offers.
Sophisticated marketing. The firm with sophisticated marketing practices
undertakes marketing activities as part of a fully coordinated and integrated
programme of activities. As well as the aforementioned marketing competences, the
sophisticated firm is one that has a full understanding of its own market and peripheral
markets, has well developed market segments and carefully designed targeting
techniques and has a long-term strategic marketing plan. It can define its competitive
position and how its own offering defeats those of competitors; it has undertaken
detailed competitor analysis, considers competitors in other sectors and fully
understands their strengths and weaknesses. The sophisticated firm also has a
computerised customer database which segments customers and stores their contact
and purchase details and products are tailored to appeal to the different customer
segments. Highly detailed, relevant market information sources are gathered
consistently, recorded and used for formal decision making and planning, to gain a
competitive edge or plan for contingencies. Marketing communications are integrated,
proactive and effective and pricing is used to compliment the marketing mix, for Marketing in
example, to add consumer perception of value or prestige. This firm views customer small hotels
service as an opportunity to interact with the customer, gather information and build
relationships. Customer loyalty programs and referral schemes are sometimes
employed and after sales services are highly developed.
Profiling the sample 303

Individual classification of each telephone interview response showed that 57 responses
matched the non-marketing category, 55 could be defined as inexpert marketing, 20 as
implicit marketing and only three could be described as sophisticated marketing
(shown at Table I). Standardising the classifications within each topic of interest
showed that on average the cohorts level of marketing can be described as non
marketing in four area’s (market knowledge; competitors; market information;
promotion) and as inexpert marketing in the remaining five areas (customers;
significant marketplace events, competitive advantage; pricing and after sales service).
The average classification for each theme was based on the highest number of
responses, as can be seen in Table I, although both non marketing and inexpert
marketing categories had six responses each, in the “After sales service” section,
inexpert marketing was selected as the most suitable category because it is positioned
between two implicit responses and one of the few sophisticated responses at one end
of the scale, and six non-marketing responses at the other. As Table I shows, the cohort
as a whole has not been able to achieve an implicit or sophisticated level of marketing
in any area of marketing activity. Knowledge and understanding of competitors was
poor for two-thirds (10) of the participants and for just over half (8) of the participants,
the collection and use of market information was non-existent, limited or haphazard.
Promotional tools were employed rarely or not at all by the majority of respondents
(60 per cent). Alternatively, the level of sophistication increased for just over half of the
participants in the price component, as eight SME hotels could be described as
employing inexpert rather than non-marketing pricing techniques.
Finally, by totalling the theme ratings for each hotel, hotels were allocated to one of the
categories. Table II shows that five hotels were in the non-marketing category, eight were
in the inexpert marketing category and two were in the implicit marketing category.
Non Inexpert Implicit Sophisticated Total sample Average
External
Market knowledge 7 5 3 0 15 Non M
Competitors 10 5 0 0 15 Non M
Customers 3 6 5 1 15 Inexpert
Market information 8 7 0 0 15 Non M
Significant event 6 7 2 0 15 Inexpert
Competitive advantage 5 6 3 1 15 Inexpert
Internal
Promotion 9 5 1 0 15 Non M
Price 3 8 4 0 15 Inexpert Table I.
After saleservice 6 6 2 1 15 Inexpert Theme analysis
Total 57 55 20 3 135 Inexpert for small hotels
MIP Case studies
26,3 This section offers in-depth case study data, compiled from both telephone and
in-depth interviews. The following descriptions illustrate the categories proposed for
the model and demonstrate how categories can be applied in the small hotel sector.
No profile is offered for the sophisticated marketing category because none of the
sample could be classified into this category.
304 Hotel 1: non-marketing. The SME hotel, whose level of marketing activity can be
defined as non marketing, employs ten people, four of whom are employed part time
and has 22 rooms. The 13-year old hotel is situated in a small city on the North Wales
coast and is managed by the female sole proprietor. The owner/manager feels that,
“Marketing is for those that need it; we don’t need it so we don’t really do it.” However,
the hotel is suffering from a drop in occupancy, which it attributes to a drop in tourists,
despite the fact that the Welsh Tourist industry is experiencing higher occupancy this
year than the year before (Wales Tourist Board, 2006) and excellent visitor figures
show that there has been no shortage of tourists in Wales (Wales Tourist Board, 2005).
Also, the second case study is located in the same geographic area as Hotel 1, yet their
occupancy rates are above average. This non-marketer does not employ segmenting or
targeting techniques and describes its market as “holidaymakers”. When asked to
expand further, Hotel 1 went on to discuss holidaymakers who are “all ages”.
Hotel 1 has no plans for the future as they feel that whilst they are making a profit,
changes are not necessary. The owner/manager of Hotel 1 defines competitors as other
hotels in the city, but does not consider other providers of tourist accommodation, such
as caravan parks or holiday cottages as competition. Hotel 1 revealed that they have no
idea what their competitive advantage is, although when prompted, they disclosed that
it may be that they are cheap and close to the city centre. The only market information
gathered is from informal conversations with customers, who tell them where they are
from and places they have visited. Hotel 1 felt that they have a loyal customer base,
mainly families and older couples, who return to the hotel on a regular basis. When
prompted, the owner/manager stated that she could “distinguish between key and
normal customers” and defined key customers as the “group of repeat customers”.
The hotel does not store customer information and can only remember vague details of
where a few of the key customers live.
The owner/manager of Hotel 1 stated initially in the telephone interview stage of
research that no significant events had occurred in the hotel or tourism sector. However,
when further questioned on this issue she said that possible impacts on the market could
include “a drop in consumer income and a rise in holidays taken abroad”. The rise in
holidaymakers travelling abroad initially affected the UK tourism sector over ten years
ago, therefore it is felt that the majority of tourism actors should have adapted to
this shift by now. In addition, consumer income has increased, not decreased.
Marketing categories Participant classifications Percentage
Non 5 33.3
Inexpert 8 53.3
Implicit 2 13.3
Table II. Sophisticated 0 0
Profile for small hotels Total 15 100
Therefore, it can be concluded that Hotel 1 has little understanding of issues affecting the Marketing in
market. Although Hotel 1 does not have a web site, it is featured on a few search engines small hotels
and online hotel booking sites. The hotel feels that “this is all the promotion that is
necessary and advertising is an expense that does not offer a return”. Its pricing is based
on “what the market will bear” and after sales service is non existent.
Failure to formally gather customer information that is readily available at Hotel 1
has resulted in a vital loss of useful marketing data which could be used in marketing 305
communications such as contacting old customers to inform them of new promotions,
implementation of a referral scheme, or encouraging hotel staff to greet customers by
name on check-in and at other interactions during their stay in order to improve
customer relationships, improving customer perception of quality and reducing service
intangibility and variability.
Although Hotel 1 feels that “it does not need to spend its limited resources on
marketing” the numerous inconsistencies in their understanding of the market and

competition leave the firm in a dangerous position. Owing to a lack of planning, market
awareness and understanding and a low level of marketing knowledge and experience,
this hotel is under threat from the competitors who are experiencing higher occupancy
levels and may be more adaptable to changes in the external environment.
Hotel 2: inexpert marketing category. The second hotel to participate in in-depth
interviews has 12 rooms, employs four people, and is also located in a small
North Wales coastal city. This 18-year old hotel has been awarded two stars by the
Wales Tourist Board and is owned by partners, one of whom is also the manager.
The manager defines his market as being mainly commercial business Monday to
Thursday, parents visiting children at the local university who stay at weekends and a
small number of leisure visitors who visit for the golfing packages offered.
The manager feels that there “aren’t enough competitors in the area” which results
in a lack of bed spaces. He views competitors as other local hotels and guest houses and
possibly “the local University in the summer months” although he is not sure that the
University can be classed as a competitor. He feels that “the hotel enjoys several
competitive advantages, such as the fantastic location, membership of the Welsh
Tourist Board, value for money and a high level of repeat business”. Although Hotel 2
does not keep customer records, they feel that they know their regular customer base
well and most members of staff know regular customers on a first name basis. Hotel 2,
however, cannot say how many customers have used their hotel and previous
customers are never contacted.
The manager reveals that he does not gather or keep market information, although
when he wants to know something specific such as competitor’s prices, he will use the
internet. The internet is described as “the key event that has affected the hotel sector”
due to the availability of a variety of online booking systems. The inexpert marketing
hotel feels that the online booking systems have increased sales and extended the firms
reach, however, a review of these online booking sites shows that Hotel 2 has received
negative feedback from previous customers on numerous occasions.
Promotional methods employed include the firm’s online presence in the form of a
web site and positioning on numerous booking and tourist information web sites. The
hotel also advertises regularly in Golfing Monthly magazine. However, the manager
states that:
MIP As we are very busy, we don’t feel that we need to spend £100 a month on ads [. . .] we are
very selective about what advertising we put out as we are not prepared to waste money.
26,3
Prices in Hotel 2 have been increasing over a number of years, as the firm has been
gradually making improvements and increasing quality. However, recently prices
have stabilised as the manager feels that the market has “tightened”. Pricing decisions
are based on “gut feeling” and the manager feels that the most important pricing
306 considerations are to remain competitive whilst providing value for money. The
inexpert marketing hotel does not have a marketing plan and views the most important
area of the business as the quality and cleanliness of the accommodation. When asked
how important marketing is he replied:
I’m very conscious of the importance of marketing, but at the moment we are achieving 90%
occupancy so we are not prepared to spend money when we don’t need to.
It is felt that this hotel understands segmenting and targeting techniques and is
utilising them to customise their offer and make specific targeted communications to
the golfing market. The company’s web site is well designed, accessible and features
an online reservation system, a downloadable brochure and details of special offers.
However, it has received negative comments from customers that are available for
potential customers to view on the web site, but has failed to address these complaints.
Hotel 2 is only gaining high-occupancy levels because of a shortage of competition in
the area as it has the best location, facilities and quality ratings within its limited
competitive landscape. This lack of competition and negative publicity leaves the firm
open to the threat of new entrants to the market and the lack of marketing planning
may mean that the hotel will be unprepared for future changes. Although the inexpert
hotel is currently successful, the situation could change quickly due to its failure to
monitor the situation in the market and plan for the future.
Hotel 3: implicit marketing. The final case study examines an SME hotel with an
implicit level of marketing planning. Hotel 3 situated in Snowdonia, is over 100 years
old and has four Wales Tourist Board Crowns for quality. The hotel also has 66 rooms
(of which five are deluxe) and 25 employees. The male owner/manager is responsible
for the marketing function, although he admits to getting help from reception staff.
The implicit marketing hotel was able to define numerous markets: golfers, walkers,
trekkers, business people, weddings, and holidaymakers. Golfers are the key
customers because the hotel is adjacent to, and has strong links with a royal golf course.
The secondary market is the activity market, the trekkers, walkers and climbers; the
hotel often hosts groups of 50-60 activity holidaymakers. Business people and
weddings make up a smaller, but regular market as the hotel has conferencing facilities
and function rooms. The owner/manager refers to standard holidaymakers as “casual”
visitors as the majority of this group make last minute bookings.
Hotel 3 views two nearby hotels as key competitors as they offer the same facilities
and are in the same price range. He also describes “hotels like ours, that are very well
off and comfortable” as competitors, although competition outside North Wales and in
other markets are not considered. Competitive advantage is described in terms of the
hotels deluxe rooms, secluded location, high quality and high ratings. The implicit
hotel has a computerised customer database, which stores customer details and
segments them according to their purchasing purpose (e.g. golfer; trekker; business;
holiday). The 450 regular customers (which the manager claims to know the majority
of by name) are contacted regularly, via electronic or postal mail to inform them of Marketing in
hotel news and special offers. small hotels
The only market information collected is from customers and travel agencies.
Online travel agencies, who are paid 8-12 per cent commission for bookings, provide
the hotel with information on market trends and customer preferences. The most
significant event to occur in the marketplace is defined as the change in customer
expectations: 307
Expectations have changed radically; today’s customers want more comfort for the same
price. Also competition is higher so we must provide excellent service and accommodation,
yet we can’t charge for it.
The promotional methods used by Hotel 3 are well integrated. Print adverts are placed
in local newspapers in the Midlands and Wirral areas (England). Brochures are
positioned in travel agents and at golf courses, European and UK physical and
online booking agents are employed and sales promotions in the form of special offers
are made to smooth seasonal fluctuations in demand. This hotel also has its own web
site which provides information which is accurate and informative, but it does not
include a booking facility and it has an amateurish quality, therefore it is felt that Hotel
3 launched a web site merely for the sake of it.
Pricing is governed by local competition and the prices of similar hotels elsewhere in
the UK. Pricing is used as part of the marketing mix to increase footfall midweek and
reduce demand on Bank holidays. The owner/manager stated that he did not mind
offering discounts to encourage mid week bookings as the lost profit is often made up
elsewhere such as in the restaurant or at the bar. Hotel 3 has a comprehensive
marketing plan which is reviewed on a six-monthly basis, the objective of which is to
increase turnover by 8-10 per cent. Marketing is considered to be equally as important
as human resources, as “human resources is people, it’s who we are, whereas
marketing lets people know where we are.”
Although this hotel has a marketing plan, a computerised customer database and a
well-organised promotional mix, the firm does not gather sufficient market information
or consider competitors in other locations, price ranges or sectors. Currently this hotel
is achieving 70-80 per cent occupancy during the summer season and 45-50 per cent
during the off-peak period. To improve this, Hotel 3 could redesign its web site to give
it a more professional image and should provide an online booking facility. It could
also implement joint marketing efforts with other local tourism stakeholders to attract
more visitors to the area.
Building and maintaining customer relationships

Personal customer relationships and networks are viewed as an important aspect of
entrepreneurial marketing, yet when asked questions about their customers, on
average the respondents were rated in the inexpert category on this theme, with three
hotels falling into the non-expert category, six in the inexpert category, five in the
implicit category and only one in the sophisticated category. The case study hotels
provided some useful insights into the attitude to customers and customer knowledge
in each of the first three categories. The non-marketing hotel felt that they had a loyal
customer base who returned on a regular basis. This hotel does not store customer
information and cannot remember key details about even the key customers.
MIP The inexpert marketing hotel does not keep customer records because they feel that
26,3 they know their regular customer base well, and converse on a first name basis with
them. The hotel however does not know how many customers have used their hotel
and previous customers are never contacted. Further, this hotel has on numerous
occasions received negative word-of-mouth on the web, but the owner/manager has
taken no action to respond to this. The implicit marketing hotel has a computerised
308 customer database, which stores customer details and segments them according to
their purchasing purposes. The manager knows most of the 450 customer by name and
they are contacted regularly, via electronic or postal mail to inform them of hotel news
and special offers. These descriptions suggest quite different approaches to customer
relationships in the different hotels. The non-marketing hotel is extremely casual about
customer relationships. The inexpert marketing hotel is still informal in their approach
to customer relationships, but they make efforts to know their customers and are proud
of what they achieve with their informal approach. The implicit marketing hotel has a
more formal system for recording and keeping in contact with their customers, but
does not report undertaking any analysis or making any other use of customer data
beyond electronic direct marketing.
Conclusions
Although all of the small hotels that took part in this study carry out some marketing,
their degree of sophistication differs. A number of the owner/managers suffered from the
misconception that effective marketing will only be achieved using a considerable
budget and is bound to be complicated. However, the study has shown how small hotel
specific marketing (such as using customer information to provide a personalised,
high-quality customer service and an enhanced reputation) can be simple and low cost.
A straightforward approach to improving SME marketing competences fits with SMEs
characteristics and suits their need for “simplistic” marketing techniques. The research
shows that considerable potential exists for SME hotels to strengthen their marketing
competencies and improve performance, illustrated by the fact that none of hotels within
the case study achieved the highest, “sophisticated” category identified by Carson.
The application of Carson’s levels of marketing activity model to the small hotel
sector in North Wales has demonstrated the need for an additional category or descriptor
when applied to the case study research. This has resulted in an adapted model which
can be applied to the small hotel industry. Whilst the need for adaptation may have its
roots in the nature of the service sector with its relatively high level of involvement with
customers, it is also possible that the time elapse between Carson’s work in 1990, and this
work may be partially responsible for the new category of “inexpert marketing”. The
intervening period has been characterised by a growing public awareness of marketing
and marketisation as it affects our society. A variety of marketing and business
development training initiatives have been directed at SME owners, yet this study has
found that there are those SME hotel owner/managers who lack understanding of the
definitions of marketing and its application, perhaps due to the fact that hotels are
marketing a complex, intangible service as opposed to the more tangible marketing of a
product. This misunderstanding may inhibit those instinctive marketing activities that
Carson describes, hence the requirement for an “inexpert” marketing category that seeks
to distinguish those that move from non-instinctive marketing to instinctive marketing
whilst developing their implicit marketing activities.
This study also makes a unique contribution to the literature on hotel marketing, Marketing in
focussing specifically on small hotels, which face very different challenges to larger small hotels
hotels, in areas such as competitive positioning, customer relationships, and pricing.
This study shows that small hotels vary in their awareness of their market position
and their management of customer relationships. Some can be categorised overall as
non-marketing, and others as inexpert marketing. None achieve Carson’s implicit or
sophisticated categories overall, although some fall into these categories for specific 309
aspects of their marketing activities. This aligns with research on other types of SME’s
that suggests that the formal approach to market planning that is embedded in
marketing theory is not appropriate for many SME’s (Hill, 2001a, b; Lewis et al., 2001;
McCarton-Quinn and Carson, 2003) Overall, small hotels fall into the non-marketing
category for competitor knowledge, market knowledge, marketing information, and
promotion. Some use computer systems to keep records of customers, and to send
e-mail’s of special offers and other news. Others rely on personal customer knowledge,
and yet others are very casual about managing longer-term customer relationships.
More generally, this research also poses questions that need to be considered in the
development of a paradigm of entrepreneurial marketing. This research most
importantly shows that different small hotels have different approaches to marketing,
and that models, such as the “Level of Marketing Activity” model which provide a
framework for profiling and categorising both individual businesses and specific
sectors can be valuable in making sense of the complexity that is associated with such
diversity. In addition, it is important to acknowledge that the marketing profile of any
business has a number of inter-related dimensions, and both individual businesses, and
whole sectors may be in different categories for different dimensions. For example, this
small group of hotels are on average in the non-marketing category for competitive
knowledge, but in the inexpert category when it comes to pricing decisions. Further, in
the visitor accommodation sector, product or service innovation may be quite limited,
but this does not mean that businesses do not need to develop their marketing activity
to retain and develop their customer base and presence in the marketplace. Many
owner/managers would not see themselves as entrepreneurs, but merely as someone
“keeping a business ticking over”. It is possible that the link between marketing
orientation and innovation orientation that lies at the heart of the concept of
entrepreneurial marketing is more relevant in some sectors than others.
Recommendations for future practice and research

Whist the body of knowledge on marketing in SME’s and entrepreneurial marketing is
growing there is still scope for considerably more research in this field, particularly
given the importance of small businesses to economies worldwide. Not only is it
important to propose and test definitions of the nature of entrepreneurial marketing in
different industry sectors, including, specifically the service and manufacturing sectors,
but it is also important to develop and refine models that can be used to profile the
diversity of practice in marketing in SME’s. In this process, categories in these models
(e.g. non-marketing, inexpert marketing) need to be seen as valid alternatives, provided
that they are “fit-for-purpose”. This means that it is essential to understand that a label
“non-marketing” should not be seen as a negative descriptor, but merely a reference to
the fact that the type of marketing undertaken has minimal overlap with traditional
marketing theory. Of course, should marketing theory adapt to embrace the relationship
MIP between innovation and marketing, which is at the heart of entrepreneurial marketing,
26,3 then it may be necessary to find new descriptors for such labels.
This paper makes a useful contribution to understanding of marketing in small
hotels, but the study has a number of limitations, which might usefully be redressed by
further research:
.
Whilst the in-depth qualitative approach offers useful insights, generalisability
310 of findings across the small hotel sector in the UK has yet to be established; there
is scope for a quantitative study that might develop a profile of research
activities across the UK, and thereby further test the model proposed in this
paper.
.
The model could also be usefully applied to a sample of hotels across the UK, or
in other geographical locations to compare marketing practices of small and
larger hotels.
.
Again, the relatively small sample used in this research does not lend itself to
further investigation into the factors that affect marketing activities in small
hotels, such as size, “growth” stage, and leadership style. There is scope for
further research into the diversity of marketing planning and the applicability of
the level of marketing activity model.
.
This research has surfaced the significance of activities such as networking,
managing customer relationships, innovation and targeting, but has not
explored in detail the associated processes. More in-depth qualitative research
would be beneficial.
One of the challenges in research and the development of practice in small businesses
in general, and small hotels, specifically is achieving a differentiation between what
entrepreneurs do, and what they should do. This research, in common with other
approaches to entrepreneurial marketing has described what entrepreneurs do.
This approach has the great attraction of avoiding imposing value, terminological and
attitudinal frameworks that may not be appropriate to small businesses. It is evident
that small hotels engage with marketing to varying degrees, and that different
approaches might be appropriate for different businesses.
This paper has proposed a model that shows that small hotels can adopt different
levels of marketing activities. In particular, within the categories in the model
(non-marketing, inexpert, implicit, and sophisticated) small hotels may exhibit
different levels of enragement with different activities. They may, for example, be
non-marketing in respect of marketing knowledge, but inexpert marketing in terms of
customer knowledge and engagement. In general, according to Carson’s model of levels
of marketing activity, the group of small hotels participating in this study would be
deemed non-marketing in every area; the adaptation of the model as proposed in this
paper, shows that the group overall does have some marketing engagement, and fit the
category inexpert marketing, in respect of areas such as customer knowledge and
relationships, awareness of significant events, establishment of competitive advantage,
pricing strategies, and after sales service.
We therefore propose that, whilst in many instances there is scope for the
development of marketing awareness and engagement, small hotel managements and
their advisors must work towards a solution that suit their resources and marketplace. Marketing in
The model proposed in this paper could be used to assist them in: small hotels
.
profiling their existing marketing activity;
.
identifying areas for action;
.
devising appropriate marketing plans; and
.
developing the “marketing orientation” of their business. 311
On the basis of the findings of this research it is suggested that agencies that support
SMEs in this sector, for example, Tourist Boards, might consider initiatives that
support more sophisticated customer relationship management, the use of horizontal
marketing networks and improved awareness of the business and marketing
environment.
References
Analoui, F. and Karami, A. (2003), Strategic Management in Small and Medium Enterprises,
Thomson Learning, London.
Beaver, G. and Harris, L. (1995), “Performance management and the small firm: dilemmas,
tensions and paradoxes”, Journal of Strategic Change, Vol. 4 No. 2, pp. 109-19.
Blankson, C. and Omar, O.E. (2002), “Marketing practices of African and Caribbean small
businesses in London, UK”, Qualitative Market Research: An International Journal, Vol. 5
No. 2, pp. 123-34.
Blankson, C. and Stokes, D. (2002), “Marketing practices in the UK small business sector”,
Marketing Intelligence & Planning, Vol. 20 No. 1, pp. 49-61.
Brooksbank, R., Kirby, D.A. and Taylor, D. (2004), “Marketing in ‘survivor’ medium-sized British
manufacturing firms:1987-1997”, European Business Review, Vol. 16 No. 3, pp. 292-306.
Brooksbank, R., Kirby, D.A., Taylor, D. and Jones-Evans, D. (1999), “Marketing in medium-sized
manufacturing firms: the state-of-the-art in Britain 1987-1992”, European Journal of
Marketing, Vol. 33 Nos 1/2, pp. 103-20.
Carson, D. (1990), “Some exploratory models for assessing small firms marketing performance
(a qualitative approach)”, European Journal of Marketing, Vol. 24 No. 11, pp. 8-51.
Carson, D. (1999), “Marketing for small-to-medium enterprises”, in Baker, M.J. (Ed.),
The Marketing Book, 4th ed., Butterworth-Heinemann, Oxford, pp. 621-38.
Carson, D. and Cromie, S. (1989), “Marketing planning in small enterprises: a model and some
empirical evidence”, Journal of Consumer Marketing, Vol. 7 No. 3, pp. 5-17.
Carson, D. and McCarton-Quinn, D. (1995), “Non-practice of theoretically based marketing in
small businesses – issues arising and their implications”, Journal of Marketing Theory and
Practice, Vol. 3 No. 4, pp. 24-32.
Carson, D., Cromie, S., McGowan, P. and Hill, J. (1995), Marketing and Entrepreneurship in SMEs:
An Innovative Approach, Prentice-Hall International, Englewood Cliffs, NJ.
Cizmar, S. and Weber, S. (2000), “Marketing effectiveness of the hotel industry in Croatia”,
International Journal of Hospitality Management, Vol. 19 No. 3, pp. 227-40.
Collinson, E. and Shaw, E. (2001), “Entrepreneurial marketing: a historical perspective on
development and practice”, Management Decision, Vol. 39 No. 9, pp. 761-6.
Coviello, N., Winklhofer, H. and Hamilton, K. (2006), “Marketing practice and performance of
small service firms”, Journal of Service Research, Vol. 9 No. 1, pp. 38-58.
MIP Deng, S. and Dart, J. (1994), “Measuring marketing orientation: a multi-factor, multi-item
approach”, Journal of Marketing Management, Vol. 10 No. 8, pp. 725-42.
26,3
Department of Trade and Industry Small Business Service (2005), Statistical Press
Release UR5/92, available at: www.sbs.gov.uk/SBS_Gov_files/researchandstats/
SMEStats2004.pdf
Deshpande, R., Farley, J.U. and Webster, F.E. Jr (1993), “Corporate culture, customer orientation
312 and innovativeness in Japanese firms: a quadrad analysis”, Journal of Marketing, Vol. 57
No. 1, pp. 23-37.
Dewhurst, J. (1996), “The entrepreneur”, in Burns, P. and Dewhurst, J. (Eds), Small Business and
Entrepreneurship, 2nd ed., Macmillan Press, Basingstoke, pp. 94-109.
Fisk, R. and Tansuhja, P. (1985), Services Marketing: An Annotated Bibliography, American
Marketing Association, Chicago, IL.
Fuller, P.B. (1994), “Assessing marketing in small and medium-sized enterprises”, European
Journal of Marketing, Vol. 28 No. 12, pp. 34-49.

Gadenne, D. (1994), “Critical success factors for small business: an inter-industry comparison”,
International Small Business Journal, Vol. 17 No. 1, pp. 36-56.
Gilmore, A., Carson, D. and Grant, K. (2001), “SME marketing in practice”, Marketing Intelligence
& Planning, Vol. 19 No. 1, pp. 6-11.
Gray, B., Matear, S., Boshoff, C. and Matheson, P. (1998), “Developing a better measure of market
orientation”, European Journal of Marketing, Vol. 32 Nos 9/10, pp. 884-903.
Hill, J. (2001a), “A multidimensional study of the key determinants of effective SME marketing
activity: Part 1”, International Journal of Entrepreneurial Behaviour & Research, Vol. 7
No. 5, pp. 171-204.
Hill, J. (2001b), “A multidimensional study of the key determinants of effective SME marketing
activity: Part 2”, International Journal of Entrepreneurial Behaviour & Research, Vol. 7
No. 6, pp. 211-35.
Hill, J. and McGowan, P. (1999), “A qualitative approach to developing small firm marketing
planning competencies”, Qualitative Market Research: An International Journal, Vol. 2
No. 3, pp. 167-75.
Hills, G.E. (1987) in Hills, G.E. (Ed.), Marketing and Entrepreneurship Research Issues: Scholarly
Justification; Research at the Marketing/Entrepreneurship Interface, The University of
Illinois, Chicago, IL, pp. 3-15.
Hogarth-Scott, S., Watson, K. and Wilson, L. (1996), “Do small business have to practice
marketing to survive and grow?”, Marketing Intelligence & Planning, Vol. 14 No. 1,
pp. 34-49.
Hult, G.T., Hurley, R.F. and Knight, G.A. (2003), “Innovativeness: its antecedents and impact on
business performance”, Industrial Marketing Management, Vol. 33, pp. 429-38.
Hurmerinta-Peltomaki, L. and Nummela, N. (1998), “Market orientation for the public sector
providing expert services for SMEs”, International Small Business Journal, Vol. 16 No. 2,
pp. 69-83.
Imrie, R. and Fyall, A. (2000), “Customer retention and loyalty in the independent mid-market
hotel sector: a United Kingdom perspective”, Journal of Hospitality & Leisure Marketing,
Vol. 7 No. 3, pp. 39-54.
Kim, W.G. and Cha, Y. (2002), “Antecedents and consequences of relationship quality in hotel
industry”, International Journal of Hospitality Management, Vol. 21, pp. 321-38.
Kirby, D. (2003), Entrepreneurship, McGraw Hill Education, Aldershot.
Kohli, A.K. and Jaworski, B.J. (1990), “Market orientation: the construct, research propositions Marketing in
and managerial implications”, Journal of Marketing, Vol. 54, pp. 1-18.
small hotels
Kotler, P., Roberts, E.L., Roberts, N. and Lee, N. (2002), Social Marketing: Improving the Quality of
Life, Sage, Thousand Oaks, CA.
Lancaster, G. and Waddelow, I. (1998), “An empirical investigation into the process of strategic
marketing planning in SMEs: its attendant problems and proposals towards a new
practical paradigm”, Journal of Marketing Management, Vol. 14, pp. 853-78. 313
Leppard, J. and McDonald, M. (1987), “A reappraisal of the role of marketing planning”, Journal
of Marketing Management, Vol. 3 No. 2, pp. 159-71.
Lewis, C., Pick, P. and Vickerstaff, A. (2001), “Trappings versus substance – market orientation
in food and drink SMEs”, British Food Journal, Vol. 103 No. 5, pp. 300-12.
Lovelock, C.H. (1983), “Classifying services to gain strategic marketing insights”, Journal of
Marketing, Vol. 47, pp. 9-20.
McCarton-Quinn, D. and Carson, D. (2003), “Issues which impact upon business markets in the
small firm”, Small Business Economics, Vol. 21, pp. 201-13.
McLarty, R. (1998), “Case study: evidence of a strategic marketing paradigm in a growing SME”,
Journal of Marketing Practice: Applied Marketing Science, Vol. 4 No. 4, pp. 105-17.
Malhotra, N.K. and Birks, D.F. (2003), Marketing Research: An Applied Approach, Pearson
Education, Harlow.
Matthews, C. and Scott, S. (1995), “Uncertainty and planning in small and entrepreneurial firms:
an empirical assessment”, Journal of Small Business Management, Vol. 33 No. 4, pp. 34-52.
Middleton, V.T.C. (1994), Marketing in Travel and Tourism, Butterworth-Heinemann, Oxford.
Miles, M.P. and Darroch, J. (2004), “Large firms, entrepreneurial marketing processes, and the
cycle of competitive advantage”, European Journal of Marketing, Vol. 40 Nos 5/6,
pp. 485-501.
Murdoch, H., Blackey, H. and Blythe, J. (2001), “Beliefs and attitudes of Welsh SMEs to
marketing”, Journal of Targeting, Measurement and Analysis for Marketing, Vol. 10 No. 2,
pp. 143-55.
Murray, J. (1981), “Marketing is home for the entrepreneurial process”, Industrial Marketing
Management, Vol. 10, pp. 93-9.
Narver, J.C. and Slater, S.F. (1990), “The effect of a market orientation on business profitability”,
Journal of Marketing, Vol. 54, pp. 45-6.
Nichols, J.A.F. and Roslow, S. (1999), “Segmenting the hotel market”, FIU Hospitality Review,
Vol. 7 No. 1, pp. 39-47.
PIU and SBS (2001), “Strategic opportunities for small business in the UK”, Seminar on 11
September 2001, Background document, available at: www.strategy.gov.uk/downloads/
seminars/small_business/briefing.pdf
Shoemaker, S. and Lewis, R.C. (1999), “Customer loyalty: the future of hospitality marketing”,
International Journal of Hospitality Management, Vol. 18 No. 4, pp. 345-70.
Sin, L.Y.M., Tse, A.C.B., Heung, V.C.S. and Yim, F.H.K. (2005), “An analysis of the relationship
between market orientation and business performance in the hotel industry”, International
Journal of Hospitality Management, Vol. 24, pp. 555-77.
Smith, D. (1990), “Small is beautiful, but difficult: towards cost-effective research for small
business”, Journal of the Market Research Society, Vol. 32 No. 1, pp. 35-51.
Stokes, D. (1995), Small Business Management, 2nd ed., D.P. Publications, London.
MIP Stokes, D. (2000), “Entrepreneurial marketing: a conceptualization from qualitative research”,
Qualitative Market research: An International Journal, Vol. 3 No. 1, pp. 47-54.
26,3
Stokes, D. and Lomax, W. (2002), “Taking control of word of mouth marketing: the case of an
entrepreneurial hotelier”, Journal of Small Business and Enterprise Development, Vol. 9
No. 4, pp. 349-57.
Visit Britain (2007), “Key tourism facts”, available at: www.tourismtrade.org.uk/
314 MarketIntelligenceResearch/KeyTourismFacts
Wales Tourist Board (2005), Tourism Business Survey Final Report, Completed by Strategic
Marketing on behalf of Wales Tourist Board, available at: www.industry.visitwales.co.uk/
upload/pdf/Final_Report_2005.pdf
Wales Tourist Board (2006), Tourism Trends February 2006, available at: www.wtbonline.gov.uk
Walker, O.C., Boyd, H.W. and Larreche, J-C. (1992), Marketing Strategy: Planning and
Implementation, Irwin, Toronto.
Wilson, N.C. and Stokes, D. (2004), “Laments and serenades: relationship marketing and
legitimation strategies for the cultural entrepreneur”, Qualitative Market Research:
An International Journal, Vol. 7 No. 3, pp. 218-27.
Zontanos, G. and Anderson, A.R. (2004), “Relationships, marketing and small business:
an exploration of links in theory and practice”, Qualitative Market Research:
An International Journal, Vol. 7 No. 3, pp. 228-36.
Further reading
Carson, D. and Gilmore, A. (2000), “SME marketing management competences”, International
Business Review, Vol. 9, pp. 363-82.
European Union (2000), Commission press release: internet access surges in EU, news on
non-Framework Programme Five, programmes and policy, EN00:37 UKRO, European
News, December 15.
Graham, P.G. (1999), “Small business participation in the global economy”, European Journal of
Grängsjö, Y. and Gummesson, E. (2005), “Hotel networks and social capital in destination
marketing”, International Journal of Service Industry Management, Vol. 17 No. 1, pp. 58-75.
Harris, C.H. and Watkins, P. (1998), “The impediments to developing a market orientation:
an exploratory study of small UK hotels”, International Journal of Contemporary
Hospitality Management, Vol. 10 No. 6, pp. 221-6.
Jocumsen, G. (2004), “How do small business managers make strategic marketing decisions?
A model of process”, European Journal of Marketing, Vol. 38 Nos 5/6, pp. 659-74.
Kim, W.G., Han, J.S. and Lee, E. (2001), “Effects of relationship marketing on repeat purchase and
word of mouth”, Journal of Hospitality & Tourism Research, Vol. 25 No. 3, pp. 272-88.
Morse, L., Wilkinson, S., Thomas, B. and Lloyd, B. (2003), “Small business networks in Wales:
in support of learning and growth”, Proceedings of the 26th ISBA National Small Firms
Policy and Research Conference, 12-14 November.
Narver, J.C., Slater, S.F. and Tietje, B. (1998), “Creating a market orientation”, Journal of Market
Focused Management, Vol. 2, pp. 241-55.
Pickernell, D., Christie, M., Rowe, P., Thomas, B., Putterill, L. and Griffiths, J. (2004), “Farmers
markets in Wales: making the ‘net’ work?”, British Food Journal, Vol. 106 No. 3,
pp. 194-210.
Shapiro, B.P. (1988), “What the hell is market orientated?”, Harvard Business Review, Vol. 66, Marketing in
pp. 119-25.
Smallbone, D. (1990), “Success and failure in new business start ups”, International Small
small hotels
Business Journal, Vol. 13 No. 3, pp. 34-47.
Stokes, D. and Blackburn, R. (2002), “Learning the hard way: the lessons of owner-managers
who have closed their businesses”, Journal of Small Business and Enterprise Development,
Vol. 9 No. 1, pp. 17-27. 315
Sui, W. and Kirby, D.A. (1998), “Approaches to small firm marketing”, European Journal of
Thomas, B. (2001), “Small firms and technology transfer strategies within one region of Europe:
Industrial South Wales”, International Journal of Applied Management, Vol. 2 No. 2,
pp. 87-101.
Corresponding author
Jennifer Rowley can be contacted at: j.rowley@mmu.ac.uk
To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

Or visit our web site for further details: www.emeraldinsight.com/reprints
This article has been cited by:
1. Sarah Quinton, Lyndon Simkin. 2017. The Digital Journey: Reflected Learnings and Emerging
Challenges. International Journal of Management Reviews 19:4, 455-472. [Crossref]
2. Roya Rahimi, Metin Kozak. 2017. Impact of Customer Relationship Management on Customer
Satisfaction: The Case of a Budget Hotel Chain. Journal of Travel & Tourism Marketing 34:1, 40-51.
[Crossref]
3. Simone Regina Didonet, Geoff Simmons, Guillermo Díaz-Villavicencio, Mark Palmer. 2016. Market
Orientation's Boundary-Spanning Role to Support Innovation in SMEs. Journal of Small Business
Management 54, 216-233. [Crossref]
4. Ranis Cheng, Fernando Lourenço, Sheilagh Resnick. 2016. Educating graduates for marketing in SMEs.
Journal of Small Business and Enterprise Development 23:2, 495-513. [Abstract] [Full Text] [PDF]
5. Sheilagh Mary Resnick, Ranis Cheng, Mike Simpson, Fernando Lourenço. 2016. Marketing in SMEs: a
“4Ps” self-branding model. International Journal of Entrepreneurial Behaviour & Research 22:1, 155-174.
[Abstract] [Full Text] [PDF]

6. Christina Donnelly, Geoff Simmons, Gillian Armstrong, Andrew Fearne. 2015. Digital loyalty card ‘big
data’ and small business marketing: Formal versus informal or complementary?. International Small
Business Journal 33:4, 422-442. [Crossref]
7. Luca Cacciolatti, Soo Hee Lee. Introduction 1-5. [Crossref]
8. Florian Kriechbaumer, Natasa Christodoulidou. 2014. SME website implementation factors in the
hospitality industry. Worldwide Hospitality and Tourism Themes 6:4, 328-351. [Abstract] [Full Text]
[PDF]
9. Jan Mattsson, Francina Orfila-Sintes. 2014. Hotel Innovation and Its Effect on Business Performance.
International Journal of Tourism Research 16:4, 388-398. [Crossref]
10. Mário Franco, Maria de Fátima Santos, Isabel Ramalho, Cristina Nunes. 2014. An exploratory study of
entrepreneurial marketing in SMEs. Journal of Small Business and Enterprise Development 21:2, 265-283.
11. Arthur Kearney, Denis Harrington, Felicity Kelliher. 2014. Exploiting managerial capability for innovation
in a micro-firm context. European Journal of Training and Development 38:1/2, 95-117. [Abstract] [Full
Text] [PDF]
12. Abdul alem Mohammad, Basri bin Rashid, Shaharuddin bin Tahir. 2013. Assessing the influence of
customer relationship management (CRM) dimensions on organization performance. Journal of Hospitality
and Tourism Technology 4:3, 228-247. [Abstract] [Full Text] [PDF]
13. Simone Didonet, Geoff Simmons, Guillermo Díaz‐Villavicencio, Mark Palmer. 2012. The relationship
between small business market orientation and environmental uncertainty. Marketing Intelligence &
Planning 30:7, 757-779. [Abstract] [Full Text] [PDF]
14. Christina Donnelly, Geoff Simmons, Gillian Armstrong, Andrew Fearne. 2012. Marketing planning and
digital customer loyalty data in small business. Marketing Intelligence & Planning 30:5, 515-534. [Abstract]
[Full Text] [PDF]
15. Paul Harrigan, Elaine Ramsey, Patrick Ibbotson. 2012. Entrepreneurial marketing in SMEs: the key
capabilities of e‐CRM. Journal of Research in Marketing and Entrepreneurship 14:1, 40-64. [Abstract] [Full
Text] [PDF]
16. Rosalind Jones, Jennifer Rowley. 2012. Food marketing: the public house sector. Worldwide Hospitality
and Tourism Themes 4:3, 255-270. [Abstract] [Full Text] [PDF]
17. Paul Harrigan, Elaine Ramsey, Patrick Ibbotson. 2012. Exploring and explaining SME marketing:
investigating e-CRM using a mixed methods approach. Journal of Strategic Marketing 20:2, 127-163.
[Crossref]
18. C-W Huang, Y-H Chiu, C-T Ting, C-H Lin. 2012. Applying a hybrid DEA model to evaluate the
influence of marketing activities to operational efficiency on Taiwan’s international tourist hotels. Journal
of the Operational Research Society 63:4, 549-560. [Crossref]
19. Sheilagh Resnick, Ranis Cheng, Clare Brindley, Carley Foster. 2011. Aligning teaching and practice: a
study of SME marketing. Journal of Research in Marketing and Entrepreneurship 13:1, 37-46. [Abstract]
[Full Text] [PDF]
20. Paul Harrigan, Elaine Ramsey, Patrick Ibbotson. 2011. Critical factors underpinning the e-CRM activities
of SMEs. Journal of Marketing Management 27:5-6, 503-529. [Crossref]
21. Ada S. Lo, Lawrence D. Stalcup, Amy Lee. 2010. Customer relationship management for hotels in
Hong Kong. International Journal of Contemporary Hospitality Management 22:2, 139-159. [Abstract]
[Full Text] [PDF]
22. Drew Martin, Arch G. Woodside. 2009. Moving beyond pedagogy to andragogy: experimental learning
exercises for tourism/hospitality executive training. International Journal of Culture, Tourism and
Hospitality Research 3:4, 283-286. [Abstract] [Full Text] [PDF]
23. Jane Moriarty, Rosalind Jones, Jennifer Rowley, Beata Kupiec‐Teahan. 2009. Executive training exercises
in small hotel marketing. International Journal of Culture, Tourism and Hospitality Research 3:4, 337-346.
24. Kijpokin Kasemsap. The Roles of International Entrepreneurship and Organizational Innovation in SMEs
1318-1346. [Crossref]
25. Kijpokin Kasemsap. The Roles of International Entrepreneurship and Organizational Innovation in SMEs
410-438. [Crossref]

Marketing in Small Hotels

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Marketing in Small Hotels

Diunggah oleh

Hak Cipta:

Format Tersedia

Marketing Intelligence & Planning

Marketing in small hotels: a qualitative study

Downloaded on: 17 October 2017, At: 01:14 (PT)

*Related content and download information correct at time of download.

Initial analysis of the telephone interview transcripts was performed on a theme by

The development of the model

Inexpert marketing. The additional category of “inexpert marketing” is a level of

Figure 1. Little or no Inexpert Implicit/Simple Explicit/Sophisticated

competitors close close competitors, peripheral

market information applied in an informal and balanced manner to gain a competitive

Profiling the sample 303

Non Inexpert Implicit Sophisticated Total sample Average

Marketing categories Participant classifications Percentage

marketing” the numerous inconsistencies in their understanding of the market and

Building and maintaining customer relationships

Recommendations for future practice and research

Journal of Marketing, Vol. 28 No. 12, pp. 34-49.

Jennifer Rowley can be contacted at: j.rowley@mmu.ac.uk

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

[Abstract] [Full Text] [PDF]

Anda mungkin juga menyukai