Ch01 introduction to tourism marketing

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    Chapter 1

    Introduction to tourism marketing

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    Tourism in the experience

    economy From service economy to experience

    economy

    Tourism experience core value ofservice delivery in tourism

    Tourism system: demand, travel,

    destination, marketing Destination mix: FAITH

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    Concepts related to customer

    experience

    Customer expectation

    Customer perception Customer satisfaction

    Customer value

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    The evolution of marketing

    concepts Production orientation

    Sales orientation

    Marketing orientation

    Personal marketing orientation

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    Production orientation

    Dominated business operation

    approaches until mid 1950s

    Concerned with product supply issues

    Supply shortage comparing to mass

    demand

    Common belief: supply creates its owndemand

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    Sales orientation

    Mid 1950s to early 1970s

    More business efforts on salespromotion strategies and

    advertisements

    Still lack of attention to customersneeds

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    Marketing orientation

    Starting from early 1970s

    Competitive business environment

    Unprecedented attention toconsumer needs and wants

    Customer centred and market-

    driven business practices

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    Personal marketing orientation

    Propelled by technology

    Tailor marketing programs to the

    individual Mass customisation

    Customer relationship management

    (CRM) Database marketing

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    What is marketing?

    Definitions of marketing

    Marketing mix

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    Definitions of marketing (1)

    Philip Kotler (2003): a societal

    process by which individuals and

    groups obtain what they need and

    want through creating, offering, and

    freely exchanging products and

    services of value with others

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    Definitions of marketing (2)

    American Marketing Association

    (AMA) (1995): the process of

    planning and executing theconception, pricing, promotion and

    distribution of ideas, goods, and

    services to create exchanges thatsatisfy individual and organisational

    goals.

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    Definitions of marketing (3)

    AMA (2004): an organizational

    function and a set of processes for

    creating, communicating anddelivering value to customers and for

    managing customer relationships in

    ways that benefit the organization

    and its stakeholders.

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    Marketing mix

    FourPs: Product,price,place, and

    promotion

    Four Cs: customer solution, customercost, convenience, and

    communication

    Seven Ps:P

    roduct,price,place,promotion, people, process, and

    physical evidence

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    Characteristics of tourism

    services

    Characteristics of services

    Special features of travel and

    tourism

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    Characteristics of services

    Intangibility

    Inseparability

    Variability

    Perishability

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    Special features of travel and

    tourism Seasonality

    Unclear ownership

    Interdependence

    Sensitivity to crises

    Fixed capacity

    Shorter exposure to services

    More emotional buying appeals

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    Special features of travel and

    tourism Greater emphasis on stature and

    imagery

    More variety and types of distributionchannels

    Easier copying of services

    Difficulty of differentiating tourism,travel and hospitality services

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    The importance of tourism

    marketing

    World economic development

    Consumer movement patterns

    Limited destination information before

    trip

    Multiple service segments in tourism

    Marketing everybodys

    responsibility

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    Destination marketing

    organisations

    National tourism organisations

    (NTOs)/ national tourism

    administrations NTAs)

    International tourism organisations

    Inter- and intra-organisational

    collaboration

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    NTOs/NTAs

    Responsible for many aspects of a

    nations tourism development

    Destination marketing as a major or

    sole function

    Branch offices in major source

    markets

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    International tourism

    organisations

    World Tourism Organisation

    (UNWTO)

    World Travel and Tourism Council

    (WTTC)

    Pacific Asia Travel Association

    (PATA)

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    Inter- and intra-

    organisational collaboration

    International marketing collaboration:

    E.g., UNWTOSilk Road Project

    Inter-organisational collaborations

    within a destination

    Departmental collaboration and

    cooperation within a tourism company

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    Summary

    Nature of tourism in the experience

    economy

    Customer experience related concepts Evolution of marketing concepts

    Definitions of marketing

    Characteristics of tourism services

    Importance of tourism marketing

    Destination marketing organisations

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