Destination Marketing

5.1) The Importance of Marketing to Travel and Tourism Organisations. 5.2) Factors Affecting Marketing. 5.3) The Marketing Mix

marketing

ensuring products and services are attractive to customers

market segments

the elements of a destination’s market

business cards

small cards giving details of a business. Business cards are often 8.5cm long and 5.5cm wide. Details on business cards often include the name of the business

marketing mix

the combination of product, promotion, price and place used to market products and services.

market research

investigating the types of customers that make up the target market

market analysis tool

something you use to investigate the market for travel and tourism products and services

SWOT analysis

a market analysis tool. SWOT analysis identifies the strengths and weaknesses of a travel and tourism business as well as the opportunities and threats that exist for the business.

PESTLE analysis

a market analysis tool. PESTLE analysis considers factors that affect a travel and tourism business. Factors that affect a travel and tourism business are political (government-related), economic (money-related), sociological (society-related), technological, legal and environmental factors

market share

the proportion of potential customers who use or buy an organisation’s products and services.

customer base

the set of people who use or buy the products of a travel and tourism organisation. The customer base of a travel and tourism organisation are types of tourist.

competitive advantage

makes a travel and tourism organisation more attractive than competitor organisations

brand loyalty

the choice of customers to continue buying the same product from the same organisation

train-hotel

a train with hotel services on board. Hotel services on a train-hotel include sleeping accommodation and restaurant services

competition

trying to be better than others. Travel and tourism organisations try to be better than each other at attracting customers

existing customers

tourists who already use or buy the products and services of a travel and tourism organisation

promotional material

something used to promote a product or service. Examples of travel and tourism promotional materials include posters, flyers, leaflets, brochures, websites, video clips and social media post.

target market

the type of customers a travel and tourism organisation tries to attract

timing

planning when something should happen. For example travel and tourism providers plan when to market products and services.

brand image

the impression potential customers have of a product or organisation

monitoring

checking or observing progress. For example, travel and tourism providers monitor sales, usage, profitability and quality.

internet and social media platforms

online services. Online platforms allow customers and travel and tourism providers to exchange or share information

online chat

a real-time discussion over the internet.

condominium (condo) apartment

an apartment that is privately owned. Some condo owners rent the apartment to tourists for holidays (vacations).

marketing campaigns

are projects involving product promotion that are time-limited. For example, a tour operator may have a six week marketing campaign of placing television, radio, newspaper and magazine advertisements or commercials to attract customers.

sales promotions

temporary offers to attract customers. For example, a tour operator may offer discounted prices for educational groups during the low season.

public relations

involves managing contacts between providers and customers. Providers make contact with potential customers to market products. For example, guided tour operators can be present in hotel lobbies to promote products to potential customers.

trade promotions

when tourism organisations advertise at travel and tourism industry events. For example, travel and tourism providers meet at travel markets such as the World Travel Market. A travel and tourism organisation can be a customer of another travel and tourism organisation. Accommodation providers can promote products to tour operators at travel markets.

market penetration

part of price in the marketing mix. A provider such as a tour operator charges a low price for a newly marketed product. The low price attracts customers. The price is later increased as demand also increases

market skimming

part of price in the marketing mix. A provider such as a tour operator charges a high price for a newly marketed product. The tour operator may be the only provider of the new product. Customers accept the higher price. Competition causes the price to decrease later

wholesalers and retailers

part of place in the marketing mix. Wholesalers buy products from providers. Wholesalers sell products to retailers. Retailers sell products to customers. Tour operators are wholesalers. Travel agents are retailers

price bundling

part of price in the marketing mix. Providers such as tour operators price packages or bundles of products.

distribution channels

the ways in which products reach customers.

product life cycle

the stages in the marketing existence of a product. The product life cycle stages are introduction

marketing channels

the ways products are made attractive to customers.

direct marketing

providers making products directly attractive to customers.

face-to-face selling

part of place in the marketing mix. The customer and provider are physically in the same place.

supply chains

part of place in the marketing mix. Supply chains are the sets of linked places where travel and tourism products and services are marketed.

pricing strategies

methods used to attract customers by managing the price

premium pricing

a pricing strategy. Premium prices are higher prices. Travel and tourism organisations sometimes choose to charge higher prices than competitors. Charging a higher price creates the impression that a product is special and worth more money.