06 Tourism Marketing

7/31/2019 06 Tourism Marketing

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6/5/12 R'tist@Tourism,

Tourism

MarketingRamakrishna Kongalla


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CCDD Create,Communicate,

Deliver &feedback

Marketing meansachieving thefirm's goals byidentifying theneeds and desires

of consumers, andthen satisfyingthem better thancompetitors.

Tourism marketing

Definition

the organized,

combined effortsof the nationaltourist bodiesand/or the

businesses in thetourism sector ofan international,national or local

area to achievegrowth in tourismby maximizing thesatisfaction of

tourists. In doingR'tist@Tourism, 22


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Characteristics

intangible

Consumption happensat once

consumer relies onpre-purchaseinformation to makehis decisions becausehe has no option to

see different producers are

involved to create andmarket the product

Demand is seasonal

motivations ofconsumers vary widely

Intermediaries such astravel agents have astrong control over

product design,distribution, romotion

Features

involves several steps

Market research seeksto understand theconsumer

product developmentaims to meet his needs

Analysis and selectionof target markets, also

known assegmentation, meansstudying potentialcustomer groups andselecting only certainR'tist@Tourism, 33


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SWOT analysis of Tourism Strengths

Vast geographywith forests,deserts,

mountains &beaches.

Varied culture.

Many historicalmonuments.

Knowledge ofEnglish by

majority of local

Opportunities

Increasedprivatization.

CWG 2010,

Grandprix2011

Medical tourism.

Go-green

initiative.

World-class hotelsand airports

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PEST analysis of Tourism

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Core concepts in Marketing Needs

state of feltdeprivationincluding physical,social, andindividual needs.

Wants

Needs becomewants when theyare directed tospecific objectsthat might satisfythe need.

Demands

Wants + buyingpower

Needs and Wants

Fulfilled through aR'tist@Tourism, 66


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Target markets &segmentation

Differences inneeds, behavior,demographics orpsychographics

are used toidentify segments.

The segment

served by the firmis called the targetmarket.

The market

offering is

Market

The Marketplace is

physical, as whenone goes forshopping in astore.

Marketspace isdigital, as whenone goes shoppingon the internet.

Metamarket isdescribed as acluster of

complementaryR'tist@Tourism, 77


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PhilosophiesThe Production

Concept The productionconcept holds

that customerswill favor productsthat are availableand highly

affordable andthat managementshould thereforefocus on

improving

The Product

ConceptThe productconcept states

that consumerswill favor productsthat offer themost quality,

performance, andfeatures, and thatthe organizationshould therefore

devote its energyR'tist@Tourism, 88


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The sellingConcept

Manyorganizationsfollow the sellingconcept.

The sellingconcept is theidea thatconsumers willnot buy enough ofthe organization'sproducts unlessthe organizationundertakes a

The MarketingConcept

The marketingconcept holdsthat achievingorganizationalgoals depends ondetermining theneeds and wants

of target marketsand delivering thedesiredsatisfactions more

effectively andefficientl thanR'tist@Tourism, 99


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The SocietalMarketing

ConceptThe societalmarketingconcept holdsthat theorganizationshould determinethe needs, wants,and interests oftarget markets. Itshould then

deliver the desiredsatisfactions more

4) Thesocietal conceptcalls upon

marketers tobalance threeconsiderations insetting their

marketing policies: a) Compan

y profits.

b) Customerwants.

c) Society'sinterests.

5) It has

became goodbusiness toR'tist@Tourism, 1010


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conom c mpor ance oMarketing

Generation of

revenue profit generation

and marketing is

the only source tomeet its expensesand earn profits.

survival and growth

of the businessenterprise dependson theeffectiveness and

efficiency of

Large scale

production marketing makes

mass selling

possible andthereby facilitateslarge scaleproduction.

Economies oflarge scaleproduction help toreduce the cost of

production perR'tist@Tourism, 1111

T i k i


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Tourism marketing

Service

Characteristics Curiosity and

desire to travel

Tourism marketingcreates desire intourists

Multifacetedactivitiesproduces tourismproduct

Various sub

Tourism Demand

Highly unstable Seasonal

Economical

political

Facilitators

Motivators

resistance factors

characteristics

Price elasticity responsiveness ofR'tist@Tourism, 1212


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Tourism Product

Intangible, irreversible, perishable, lack

of ownership, Heterogeneity, Non-material, consumed

where produced,

multiplicity of producers, highly unstabledemand, dominant role ofintermediaries, motivations.

Tourism DemandDeterminants

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Tourism Marketing mix 8 Ps in Tourism

Product

Place

Price Promotion

People

Process

Productivity &Quality

Physical Evidence

2. Pricing

Cost

Demand

Competition

Duration

Mode of transport

Peak/Non-peakseason

Destination

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3. Promotion

Different states highlightingabout their features.

E.g. 1. Kerala- Gods own

countryHighlighting aboutbackwaters, ayurveda,elephants, houseboats,beaches etc.

Incredible India and AtithiDevo Bhava are taglines ofIndian Tourism

Our guest is blessed and

Our visitor is god Aamir Khan as brand

ambassador for Atithi DevoBhava for Indian tourism.

Use of websites to sell

tourism.

4. Place

The destination is

the importantaspect in place.

Travel agents, touroperators etc. aredistribution points.

Properinfrastructure,

transport andcommunication.

5. People

Role of people is1515R'tist@Tourism,


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Travel agentsshould providebest deals to

customers afterunderstandingtheirrequirements.

Guides shouldhave in-depthknowledge about

the locations,monuments, forts,history etc.

Employees shoulddeliver what the

6. Process

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7. PhysicalEvidence

8. Productivity& Quality

It involvespositioning theprocess, theoverall

destination, theintangibles etc.

It also involves

positioning oftourism asNational priority.

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T i D d M d li d


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Tourism Demand Modeling andForecasting

Tourism demandmodeling andforecasting arevery important for

tourism-relatedbusiness decisionmaking

Stock effect, market response

effect

Analysis

the explanatory

variables fortourism demandinclude origin

country income,destinationcountry tourismprices, substitute

destinationcountry tourismprices, tastes,

etc. Empirical1818R'tist@Tourism,


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Methods thatrely on

qualitativeassessment

Unaided judgment

Prediction market Delphi technique

Game theory

Judgmentalbootstrapping

Simulated

interaction

Methods thatrely on

quantitative data Discrete Event

Simulation

Extrapolation Quantitative

analogies

Rule-basedforecasting

Neural networks

Data mining1919R'tist@Tourism,

M i it d


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Managing capacity andDemand

Capacity Constraints

Time, labor, equipment and facilities

Optimal versus maximal use of capacity

Demand Patterns

Charting demandpatterns

Predictable cycles

Random demandfluctuations

Demand patterns bymarket segment

2020R'tist@Tourism,

M k i


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Market segmentation segmentation is the

process of:

(1) taking existingand/or potentialcustomers/visitors

(market) andcategorizing theminto groups withsimilar preferences

referred to as"marketsegments;"

(2) selecting the

no unique or best

way to segmentmarkets, but waysin which customerscan be groupedare:

(1) location ofresidence---instate,

out-of-state, local;

(2) demographics---age, income, family

status, education;2121R'tist@Tourism,


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Target markets

After segments have been identified,the business or community mustselect the "target markets,"those segments which offer them the

greatest opportunity.When determining target markets,consideration should be given to:

(1) existing and future sales potential ofeach segment;

(2) the amount and strength ofcompetition for each segment;

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Positioning In marketing,

positioning hascome to mean theprocess by whichmarketers try tocreate an imageor identity in theminds of their

target market forits product,brand, or

organization. 2424R'tist@Tourism,

primary elements of Positioning concepts


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primary elements ofpositioning are:

Pricing. Is your product aluxury item, somewhere in themiddle, or cheap, cheap,

cheap.

Quality. Total quality is a muchused and abused phrase. But isyour product well produced?What controls are in place to

assure consistency? Do youback your quality claim withcustomer-friendly guarantees,warranties, and return policies?

Service. Do you offer theadded value of customerservice and support? Is yourproduct customized andpersonalized?

Distribution. How docustomers obtain your

product? The channel ordistribution is art of

g p

Functional positions

Solve problems

Provide benefits to customers

Get favorable perception by investors (stockprofile) and lenders

Symbolic positions

Self-image enhancement

Ego identification

Belongingness and social meaningfulness

Affective fulfillment

Experiential positions

Provide sensory stimulation

Provide cognitive stimulation

Product positioning process

Defining the market in which the product or brandwill compete (who the relevant buyers are)

Identifying the attributes (also called dimensions)that define the product 'space'

Collecting information from a sample ofcustomers about their perceptions of eachproduct on the relevant attributes

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Marketing Environment

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Consumer buying behavior


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Consumer buying behavior "The study of

individuals, groups,or organizationsand the processesthey use to select,

secure, use, anddispose ofproducts, services,

experiences, orideas to satisfyneeds and theimpacts that these

processes have on

Consumerbehavior involvesservices and ideasas well as tangibleproducts.

main applicationsof consumerbehavior

marketingstrategyi.e., formaking bettermarketingcampaigns2727R'tist@Tourism,

enera mo e or


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enera mo e orConsumer Behavior

A general model

of the buyerdecisionprocess consists

of the followingsteps:

Problem

recognition; Information

Search

Evaluation ofAlternative

AIUAPR MODEL

Awareness

Interest

Understanding

Attitude

Purchase

Repeat purchase

R'tist@Tourism, 2828

Mar et ng Compet t ve


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Mar et ng Compet t veDifferentiation Treacy & Wiersema say that there

are primarily three ways in which a

company can build competitivedifferentiation

Operational Excellence/CostLeadership

Provide middle-of-the-market

products at the best price andthe least hassle.

Example: Wal-Mart.

Product Leadership

Provide the best product,period. Continue to innovateyear after year.

Example: Intel, Nike.

Customer Intimacy

Provide unique solutions to

every company that

is a leader in itsmarket chooses todifferentiate itself onone and only one ofthese three "valuedisciplines".

For example, if a

company tries to bethe cost leader aswell as the productleader in its market -

over time, it will endR'tist@Tourism, 2929


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Strategy Marketing strategy is a process that canallow an organization to concentrate itslimited resources on the greatestopportunities to increase sales and achieve

a sustainable competitive advantage

marketing strategies are developed asmulti-year plans, with a tactical plandetailing specific actions to beaccomplished in the current year

Marketing strategies are dynamic and

interactive. They are partially planned andpartially unplanned

involves careful scanning of the internaland external environments, Internalenvironmental factors includethe marketing mix, plus performanceanalysis and strategic constraints

External environmental factors includecustomer analysis, competitoranalysis, target market analysis, as well asevaluation of any elements of thetechnological, economic, cultural orpolitical/legal environment likely to impactsuccess

Once a thorough environmental scan is

Typically there are

four types ofmarketdominancestrategies:

Leader

Challenger

Follower Nicher

generic strategy

framework (porterR'tist@Tourism, 3030

N d t


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6/5/12 R'tist@Tourism,R'tist@Tourism, 3131

New productDevelopment

Product life Cycle


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Product life Cycle Discovery

unspoiled"destinations

Explorers

Launch incoming

tourists

increases host

communityresponds



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Customer Satisfaction Customer

satisfaction, aterm frequentlyused

in marketing, is ameasure of howproducts and

services suppliedby a companymeet or surpasscustomer

expectation.

Customer

Satisfaction in 7Steps

1. ENCOURAGE

FACE-TO-FACEDEALINGS

2. RESPOND TOMESSAGESPROMPTLY & KEEP

YOUR CLIENTSINFORMED

3. BE FRIENDLYR'tist@Tourism, 3333


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Customer Retention

Strategies in Internal & External


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Strategies in Internal & ExternalMarketing

Internal factor ,these involve(5M's)

Management

Manpower

machine

material and money.

External factors ,

these include

Macro factors arethe one thataffect theorganization

indirectly, theseare (pestel)

Political

enviroment

socia-cultural

technological and



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Marketing Interactive

Marketing refers to the evolvingtrend

in marketing whereby marketinghas moved from atransaction-basedeffort to aconversation.

the ability toaddress an

Relationshipmarketing wasfirst defined as aform of marketingdeveloped from

direct responsemarketingcampaigns which

emphasizes customerretention andsatisfaction,rather than aR'tist@Tourism, 3737


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StrategiesThe product is

defined as a"thing producedby labor or

effort" or the"result of an actor a process

Tangible andIntangible

Tourism Product

Multi faceted

A PRODUCT

MARKETINGSTRATEGY

Decide on new

revenue growth and profits

Decide onnew product dev

elopment.

Decide on price.

Decide on sales

force, distributioR'tist@Tourism, 3939


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Product Line

A

company/organization creates agroup ofproducts, which

has in commonmost of theirmaincharacteristics.

A good way for acompany to try toexpand itsbusiness is byaddin to its

Product Mix

Product mix-an

organizationcreates manyproducts and sellsthem.

the product mix iseverythingorganization sells.


ran ng e ran ng


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ran ng e ran ng increase a

product'sperceived value

increase brandfranchise andbrand equity

started at Procter& Gamble

A good brandname should:

be protected (orat least

Functions ofbrand

(For consumers)Identification ofsource of product,

Assignment ofresponsibility toproduct maker,

Risk reducer, Search cost

reducer,

Symbolic device,R'tist@Tourism, 4141

Packing


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Packing defined as the

wrapping materialaround a consumeritem that serves tocontain, identify,describe, protect,display, promote,and otherwise make

the productmarketable andkeep it clean.

Packaging is the

Functional

Requirements 1. Protection

andpreservation

2. Containment

3.Communication

Types ofpackaging

TransportR'tist@Tourism, 4242

P i i


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Pricing


Pricing Strategies Approaches


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Pricing Strategies

Premium Pricing

used where asubstantialcompetitiveadvantage exists.

Such high pricesare charge forluxuries such as

Cunard Cruises,Savoy Hotel rooms,and Concordeflights

Penetration

Approaches

Psychological

Pricing to respond on an

emotional, ratherthan rationalbasis

Product LinePricing

Where there is arange of productor services the

pricing reflect theR'tist@Tourism, 4444

Distrib tion Channels


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Distribution Channels Physical

distribution (orplace) is one ofthe four elements

of the marketingmix

defined as a chainof intermediaries,each passing theproduct down thechain to the next

organization,

Channel

decisions Channel strategy

Gravity & Gravity

Push and Pullstrategy

Product (or

service) Cost

Consumer location

T e of R'tist@Tourism, 4545


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Marketing Of Tourism

Services


Ai li


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Airlines the first

marketing model,called PESTE -Political,Economic, Social,

Technological andEnvironmental

Airline Businessand MarketingStrategies -strategic families

(from cost

distributing the

product - GlobalDistributionSystems (such asGalileo, Sabre and

Amadeus Brands

Management in

Airline Marketing Relationship

marketing -

maintaining andR'tist@Tourism, 4747


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Tra el Agenc Marketing


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Travel Agency Marketing

Travel agenciesdon't need largemarketingbudgets - just

determination, acreative mind andwillingess to work

outside normalhours

Hold an openevening

Tips to TravelAgents

"mine" data base

Increase yoursales training andprospecting skills

Be in the know

Be a member of atravel consortium

have a working

marketing planR'tist@Tourism, 4949

Marketing Skills for Tourism


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Marketing Skills for TourismCreativity

make somethingout of nothing

Create the

branding, createthe positioning,find the niche

develop thewords, thevisuals, theimages that make

Communication

Learn 3 languages mother tongue,national &international

Polite speech,Good bodylanguage

Good personality Courtesy calls

Letters

FaxR'tist@Tourism, 5050

Self Motivation T b ildi


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Self Motivation

Self motivated towork and deliverconcrete results

Motivation andmorale are closely

related If morale is high

motivation will behigh to givesterlingperformance

Motivation factors

are

Team building

Socio cultural

norms, if the teamchanges thisnorms and valueseffect is

immediate andever lasting

Tasks arecompleted faster

than an individualdoes - Rome wasnot built in a day,Rome was notbuilt b on neitherR'tist@Tourism, 5151

Personality development


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Personality development An individual's

personality is anaggregateconglomeration of

decisions we'vemade throughoutour lives(Bradshaw )

There areinherent natural,genetic, andenvironmental

Freud believed

that two basicdrivessex andaggression

motivate all ourthoughts andbehaviours

Freud conceivedthe mind as onlyhaving a fixedamount of

psychic energy .R'tist@Tourism, 5252


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06 Tourism Marketing