unit 5

Marketing- ensuring product and services are attractive to customers

Market segment – the elements of a destination market

Business cards – small cards given details of the business

for example bubble tea business cards

Marketing mix- the combination of product promotion and pricing place

  • product is what you sell

  • Promotion is how you inform the customers

  • Price is how much you charge

  • Places where you market a product to potential customers

MARKET ANALYSIS TOOLS

SWOT

  • Analysis identifies the strengths weaknesses opportunities and threats of travel and tourism

S- strengths

W- weakness

O -opportunities

T - treats

PESTLE

  • analyze considers factors that travel and tourism

P- political

E-economic

S- sociological

T-technological

L - legal

E- environmental

5.1

Promotion is hard travel and tourism organizations tell customers about their product and services

  • customers are attracted to the 4P’s ( product, price, promotion and place,)

  • Marketing is important to travel and tourism

MORE CUSTOMERS

Market shares- The proportion of potential customers who use and buy organization product and services

Customer base – the set of people who use or buy the product of a travel and tourism organization

  • marketing and promotion are important bring more customers to travel and tourism

Market shares and customer base

COMPETITIVE ADVANTAGE

Competitive advantage – makes a travel and tourism more attractive than competitor organizations

POSITIVE IMAGE AND REPUTATION SUSTAINABLE PRACTICES

  • promotional material to create a positive image of travel and tourism organizations

  • Positive image brings more customers

  • A good reputation of an organization

THE CIRCLE OF MARKETING CUSTOMERS AND PROFIT

Marketing and promotion → more customers→ more sales and profit

GEATER CUSTOMER SATISFACTION

  • Great customer satisfaction encourage brand loyalty

brand loyalty – the choice of customers to continue buying the same product from the same organization

Train hotel – a train with a hotel services and board including sleep accommodation and restaurant services

Competition – travel and tourism organization try to be better than each other at attracting customers

Existing customers - tourist who already use or buy the product and services of a travel and tourism organization

Promotional materials – someone who used to promote a product and services

Ex: flyers, websites, posters, social media

5.2

Factors affecting marketing

marketing ( monitoring, brand image, cost, timing, target market segments)

Target market segments – the type of customers a travel and tourism organization tries to attract

Ex: families with kids

Timing – planning when something should happen

  • Timing is planning when to market products and services is considered the most suitable time to talk to customers

Cost – always needs to be considered

ex:cost of promotion and place

Brent image – the impression potential customers have a big product /organization

Monitoring – checking or observing progress

Ex:sales, usage, profitability, and quality

  • owners of properties use Internet and social media to market holidays

  • Internet and social media platforms - online platforms allow customers in travel and tourism providers to exchange information

  • Sometimes Internet and social media platforms is online chat

Online chat – a real time discussion over the Internet

  • i’m asking this facility to discuss accommodation on a travel agent

  • customer type of questions and travel agent to me to me answered

SOICAL MEDIA PLATFORMS

  • Allows customers and providers to share info in ways that are open to other people

Condo apartment- an apartment that is privately owned some rented it out for tourist on holiday

5.3

THE 4P’S

Product

-product and services includes sustainable products and services

Price

  • market penetration- A provider such as a tourist operator charging a low price to attract customers when the demand starts to increase prices increase due to the product being bought

  • Market skimming - They provided such as a tour operator charges a high price for nearly market products customer is my by due to tour operators only providing the product around that place

    Price strategies

  • Discounts

  • Variable

  • Loss leader

  • Promotional

  • Premium pricing

  • Price bundling

Price of bundling – providers such as tour operators price packages bundles of products

Marketing campaigns – I Projects involving product promotion that are time limited to attract customers

Ex:A coffee shop that usually sells their large cup for seven dollars puts it for four dollars over the span of three weeks

Promotion

  • marketing campaign(websites – Internet and social media – blog – direct selling)

  • Sales promotion

  • Public relations

  • Leaflets

  • Trade promotion

Sales promotion - temporary offers to attract customers

for example offering discount prices for coffee drinks

Public relations -involving managing contracts between providers and customers

Show promotion – when Tourist organizations advertise at travel and tourism industry events

PLACE

Distribution channels

Wholesalers and retailers

Online marketing

Direct selling

Physical location

Wholesalers and retailers – part of the marketing mix wholesaler Sells retailers so retailers can sold out products to customers

  • place is the marketing mix that includes distribution channels

  • The cost for physical location

PHYSICAL LOCATIONS

  • The cost character and features around the place

  • Nearby facilities for example toilets and car parks

  • Access transportation is for customers to reach the destination

PRODUCT LIFE CYCLE

  • Product lifecycle is the stages in the marketing existing of a product

4 stages

Intro : A new product starts to be Sold

Growth : sales increase

Maturity: when the period of maximize sales

Decline: sales reduce

Marketing channels – the way products are made attractive to customers

For example tour guides guided tour products me a check to customer via tour operator websites

Direct marketing – provides making products directly attractive to customers

For example a tour guide may market tour to customers face to face

Face to face selling- The customer and provider are physically in the same place

For example travel agents sell products and services to customers face-to-face

Blog - series of Internet post

Example some tourist post travel diaries on social media

Supply chains Dash supply chains other set of linked places watch travel and tourism products and services are marketed

Pricing strategies – methods used to attract customers my managing the price

Premium pricing – a pricing strategy with prices are higher prices

A higher price creates the impression that a product is special and worth more money for example Gucci Chanel Louis Vuitton

5.4

TYPES OF MARKET RESEARCH

PRIMARY RESEARCH - direct research

For example travel and tourism organization use questionnaires, surveys, Interviews and focus groups

  • this is to talk directly to customers to research customers needs and wants

Questionnaires – a set of questions

  • customers get asked questions about the travel and tourism organization

Surveys – a way of researching peoples opinions

  • asking a set of questions online or in person or a paper or sheet

Interview - questions and answer conversations

Focus groups - small groups discussion groups small groups discussed about products and services

SECONDARY RESEARCH

secondary research- is using sources of information that already exist.

Ex: travel and tourism organizations use existing sources like NTO reports , government reports and stats

QUALITATIVE AND QUALITATIVE METHOD

Qualitative method - are observations, informal, conversations and interviews

Quantitative- collect data in the form of numbers

Qualitative- travel organizations, observer customers behavior informally or interviews to find out the need and wants

Quantitative- when customers answered surrey questions which is then counted often as a percentage

MARKET RESEARCH TOOLS

THEY USE SWOT AND PESTLE

reason for marketing

  • find out what attracts customers

  • Understand the market to determine position in the market

  • Identity customers and potential customers by Analyse data

Understanding

  • is the organization that market leader

markert leader - the organizing the strongest market.

3 THINGS TO IDENTIFY POTENTIAL/ CUSTOMERS

  1. what product customers want

  2. The price customers will pay

  3. The marketing place that customers find attractive

ANALYSE competition

  • is the marketing mix of strong competition

Breakout areas- are spaces where business tourist can take breaks from there meeting

Human - nature connection - spaces are relaxing and healthy for business tourist

Flexible meeting room - meeting room that easily be adapted to customers needs

Ex: number of chairs and the and the arrangements of table of chairs can be changed

5.5

DIFFERENT MARKET SEGMENTS

geographic segmentation

  • locality areas or regions

  • Domestic tourist / inbound visitors

DEMOGRAPHICS segmentation

  • Age

  • Gender

  • Ethnicity

  • Level of disposable income

PHYCHOGRAPHIC SEGMENTATION

  • lifestyle

  • Interests

  • Value

Demographic segmentation- divided a market into types of people , suck as customers of different ages, gender, ethnicity or level of income

Phychograhic segmentation- dividing a market by a customer lifestyle such as different Internet or customers different value and attitude

THE DEVELOPMENT OF PRODUCTS/ SERVICES MIX TO TARGET DIFFERENT MARKET SEGMENTS

  • PRODUCT/ SERVICES MIX - the blend of travel and tourism products and services delveloped in order to tarter different market segments

  • Market segmentation- diving of markets into segments

HOW THEY EVALUATE -

  • type of customers

  • Sustainability

  • Accessibility