tourism chapter 3 pt 2

marketing in tourism

marketing

• mgmt philosophy that prioritises the consumer

• analyses market & consumer behaviour

• analyses commercial mgmt of companies to attract & retain customers through the satisfaction of needs

• process where groups or individuals get what they want & need through creation & exchange of products

evolution of marketing

1. product orientation 1: produce as many goods as possible to satisfy strong demand

2. product orientation 2: high demand, marketing not needed

3. sales orientation: emphasise guaranteeing sales

4. marketing orientation: understand & satisfy consumer needs, have to win over customers

5. social marketing: same + CSR

marketing planning steps

1. diagnosis: SWOT

2. strategic marketing: objectives & targets

3. operational marketing: marketing mix & monitoring

SWOT analysis in tourism

• strengths: what is unique about your destination

• weaknesses; what do tourists want you to improve

• opportunities: what trend can you capitalise on

• threats: what problems are looming

strategic marketing

• objective: detect opportunities that help company satisfy customer needs in a more optimal & efficient way than competitors

• systematic & continuous analysis of consumer needs

• analysis: discover new markets to target, assess market attractiveness, assess product lifecycles, study competitors, find CA

strategic marketing plan

1. market segmentation: demographic, geographic, economic, psychological

2. target market: select group

3. positioning strat: differentiation strat

4. growth strat: ansoff matrix or product strat

market semgentation

• define market segment & choose one as a target

• target market: chosen segment

• age, marital status, family size, geography, buyer behaviour, income, gender

strategic marketing: how to differentiate (positioning strat)

• product: price/cost, quality, functionality

• relationship with customers: service

• branding: product-plus (add value), holistic (brand rep > sum of its products)

strategic marketing: growth strat

• determine which product to focus on

• BCG: classify products & decide business strat

  • dogs: low MS, low MG

  • ?: low MS, high MG

  • cows: high MS, low MG

  • stars: high MS, high MG

• ansoff: 4 strats

  • market penetration: existing, existing

  • product development: existing m, new p

  • market development: new m, existing p

  • diversification: new, new

operational marketing

• objective: sell using most efficient & effective means

• 4Ps

1. product: features, quality, branding, packaging

2. price: strategy, discounts, payments

3. promotion: sales, advertising, PR, direct marketing

4. place: channels, location, inventory, transport

price

• tourism: perishable & highly price elastic

• tactical: short-run

• strategic: long-run

7 types of strategic pricing (what cost is determined by)

1. cost-oriented: cost of providing a product

2. RoR: price to achieve set RoR

3. demand-oriented: what market is prepared to pay

4. discrimination: diff price based on market sector or time of year

5. backward: price 1st then product is reverse engineered

6. penetration: low price set early to build market share

7. skimming: monopoly company on shortage product → premium

distribution

• travel orgs communicate travel arrangements to customers & confirm their bookings

• e-distribution: customers can book directly or through websites

characteristics of distribution in tourism (5)

• intermediaries: influence purchasing decisions through advice & selective offering → provide access to products & facilitate purchase

• distribution process transfers risk from supplier to intermediary (they hold stock until sold)

• reduces supplier marketing costs

• perishability = sophisticated distribution process → real-time reservation systems that can be accessed globally

• intermediary becomes a repository of advice & knowledge → one-stop shop for consumers

promotion

• tourism market: demand is unstable, disloyal, seasonal, & price sensitive

• promotion combats this

• persuading, informing, reminding, & communicating benefits to potential consumer

• smart tourism promotion intervenes in the tourism purchasing process to influence behaviour

the tourist product

• utilities & benefits offered to the market place

1. core: essence of offering

2. tangible: offering itself

3. augmented: supplier adds extra features to be competitive

ways of viewing a product

• tangible & intangible elements

• destination amalgam → attractions, accom, transport → interdependent

• series of stages → anticipation, planning, travel, evaluation

• experience → gilbert (1990): tourism product is the total experience

tourism & marketing characteristics

• tourism marketing: orgs select target market & find out local, regional, national, & international needs

• aim: adapt tourism products

• intangible, inseparable, heterogeneous, perishable