Marketing Tourism:

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Chapter 11

• Marketing Tourism
• concepts and issues

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Marketing tourism concepts and issues

• by
• Pro. Jin Ciping
• Bachelor of Science in Tourism
  Management
• (H54050020)
• Nanchang University
• School of Economy and Management
• Department of Tourism Management

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Learning outcomes

• Recognize the consequences of marketing in the
  tourism industry and be aware of its
  distinguishing features.
• Realize the importance of understanding the
  customers needs, market segmentation and the
  linkages with aspects of tourist demand and
  motivation.
• Explain the role and nature of marketing plans,
• describing some of the main analytical
  techniques.

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Contents

• 1. INTRODUCTION
• 2. MARKETING MIX
• 3. STEPS TO MARKETING MIX

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1. INTRODUCTION

• Tourism marketing
• Definition of marketing
• Marketing concept
• Tourism services as products

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Tourism marketing (1)

• Fascinating subject
• Key part of the tourism industry.
• The nature of tourism marketing changes with
  rapid change of the nature of the tourism
  industry at international, national, regional,
  destination and the firm level.
• Core marketing concepts and issues are fairly
  universal and constant, but the tourism marketing
  reflects some of the special characteristics of
  this industry

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Tourism marketing (2)Marketing contents of
hotels

• a range of sales activities
• public relations
• advertising in all media
• design of symbols and images

• ( increasingly)
• the departments of convention services
• Reservations
• catering

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Definition of marketing(1)

• The UK Chartered Institute of Marketing (1984)
• Marketing is the management process
  responsible for identifying, anticipating and
  satisfying customer requirements profitably.

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Definition of marketing(2)

• Since the 1950s, some debates about what exactly
• marketing consists of .
• Now, general acceptance of the definition
  suggested by
• the UK Chartered Institute of Marketing
  (1984)
• Marketing is an umbrella term that covers a
  number of strategic and tactical activities
  designed to tell the clientele the story of a
  firms activities and encourage that clientele to
  make choices based on how one firms marketing
  message compares to alternatives.

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Marketing concept

• The marketing function depends on the idea-----
  the marketing concept (the function is central to
  structure of a firm)
• The marketing concept is a theory to helps
• to guide the marketing activities
• Five identifiable marketing concepts to
• influence any area of a firms activities
  (OP)

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Five marketing concept
Product concept marketing activities focus on product development and improvement, it thinks customers mainly interested in quality, performance,features of product
Production concept the approach believe customers are price sensitive, so make products efficiently and distribute them widely enough to raise volume and drive down costs.
Selling concept greater emphasis on advertising and promotion.
Marketing concept understand customer needs, so adopt a balance of the other concepts.
Societal concept conclude the interests of society as well as the customers concerned, not just satisfying customers and generating profits
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Tourism service as products

• Characteristics of tourism service shows that the
  tourism product can be accurately thought of as a
  combination of several different services (OP)
• Though some of the basic principles of marketing
  apply to all products, we should make some
  special consideration in investigate the tourism
  industry (OP)

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Characteristics of tourism service
Tourism marketing depends on features of its services Tourism marketing depends on features of its services
Intangbility Inseparability Heterogeneity Perishability Inelasticity of supply Elasticity of demand Complementarity High fixed costs Labour intensity
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Special consideration

• Essential marketing principle
• Features of tourism marketing
• A customer orientation
• Be concerned with the firms external environment
• Accurate marketing research information,
  particularly in
• relation to customers and competitors
• Products that meet tourists needs
• Differentiation, i.e. that the tourism firms
  products are
• different in some way from the competition
• Controlling various marketing opportunities in
  such a
• way to create customer satisfaction.

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2. MRKETING MIX

• Definition of marketing mix
• 4P --- popular marketing channel
• 3P --- tourist marketing for service
• providers

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Why should my customers buy my products, rather
than those of my competitors?

• Holloway and Robison, 1995
• Why should my customers buy my products,
  rather than those of my competitors?
• The marketing manager must ask himself the
  crucial question.
• The chapter introduce relevant concept and issues
  associated with answering the question.

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Definition of marketing mix

• It is that a firm aims at the needs of its
  target market to mix well and use comprehensively
  various marketing factors ( marketing variables )
  the firm can manipulate. These factors include
  the product, the price, physical distribution,
  intermediary or channel of distribution and
  promotion.

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4P --- popular marketing channel (1)

• E.J. Maxim in the U.S. classifies marketing
  channels as four types --- popular 4P
• ?product
• ?price
• ?place
• ?promotion

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4P --- popular marketing channel (2)

• E.J. Maxim in the U.S. classifies marketing
• channels as four types --- popular 4P
• Marketing mix represents the idea of the total
• marketing in the marketing concept
• Marketing mix is a facet complex structure
• 4P includes other factors which constitutes
  sub-mix (OP)
• A marketing mix includes at least two facet
• complex structure

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Other factors of 4P (OP)
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Understanding of 4P

• Seen from the Figure above, different types of
  marketing decisions/marketing mixes will need to
  be made for different types of tourists.
• Vellas and Becherel (1999) state different
  markets require different marketing mixes at
  different times in their life cycle.
• E.g.
• A tourism product aimed at retired people is
  unlikely to be advertised in a magazine for young
  people
• the four Ps offer a suitable framework
• When deciding a marketing mix, a firm should get
  a best mix between 4P, but also make a good
  arrangement between the sub-mix so as to make
  these factors get flexibly and effectively mixed.

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3P --- tourist marketing for service providers
People In the tourism industry, people, i.e. staff are important particularly in terms of their skills of customer care. how friendly they are and their appearance.
Physical evidence Within accommodation, for example, considerations of the furnishings, decor, environment, ambience, layout, cleanliness and noise level are all important
Process Here aspects such as how efficiently procedures work, for example, service time, waiting time, customer forms and documents all need to be evaluated
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3. STEPS TO MARKETING MIX

• Information of customer
• How marketer get information
• Market segmentation
• Importance of competition
• Planning for the future
• Approaches to marketing planning

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Information of customer (1.1)Questions

• ? Why do people go on holidays?
• ? Who are the customers/tourists?
• ? What types of tourism products do they buy?
• ? Who do they travel with (alone, couple,
  family)?
• ? Which suppliers do they use?
• ? What are the needs they aim to satisfy?
• ? Where/how do they buy their tourism
  products?

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Information of customer (1.2)Questions

• ? When do they buy them (last minute, in
  advance)?
• ? How long do they go on holiday for?
• ? How often do they travel?
• ? How much are they prepared to pay?
• ? How do they decide which tourism products to
  buy?
• ? What influences their travel decisions?
• ? How do previous holidays affect future plans?

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Information of customer (2)

• The questions above can help tourism marketers to
  understand tourist buying behavior
• These questions will clearly help the marketers
  to decide how best to market their products.
• The products are aimed, primarily at particular
  types of tourist (e.g. young adults, who are
  singles, travelling with friends. without
  children). Such groups represent the target
  market.
• Vellas and Becherel (1999 59) refer to three
  choices for targeting markets. (OP)

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Three choices for targeting markets (1)

• 1. Undifferentiated marketing ( the same
  products )
• ? sell as much as possible and their products
  have to the broadest
• appeal.
• ? characteristic of mass market tour
  operators.
• In China, European tour
• 2. Differentiated marketing ( different
  products)
• The firm perhaps aims at particular target
  markets and
• designs separate products and marketing
  programmes for each
• market. The costs to the firm of this are
  larger, but total sales may
• be greater.

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Three choices for targeting markets (2)

• 3. Concentrated marketing ( specific products )
• The firm concentrates on a specific target
  market, not
• aim at all tourists.
• E.g.
• concentrating on trekking and adventure
  holidays to
• destinations such as the Himalayas
• A strategy to approach a target market is
  necessary, it is also important to understand
  that different tourists buy their holidays in
  different ways

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How marketers get information

• Tourist buying behaviour (so that the marketer
• can decide how best to market their
  products)
• Inner meaning of each stage in the buying
• process
• How potential tourists search for relevant
• information on which to base their decisions
• Where the potential customer searches for that
• information ( to communicate their products
  to
• new customers)

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Market segmentation

• Tourism products and services have to be
  targeted, not only to target markets, but often
  to specific types of consumer. This approach,
  known as market segmentation,
• Several approaches to segment tourist markets
• ?factors influencing motivation
• ?factors affecting tourism demand

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Other factors (variables)
Geographic Region, climate, urban, rural
Demographic Age, sex, ethnicity, social class
Personal and psychological Education level, lifestyle, values, beliefs, attitudes
Sociocultural Family influences, peer group influences, cultural norms, status
Economic Economic climate, employment security, political stability
Buying behavior Previous experience, purchasing preferences, attitudes to adverts
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Importance of Competition

• Competition is the next step following the market
  
• segmentation
• Old saying know the enemy and know yourself,
  and
• you can fight a hundred battles with no
  danger of
• defeat.
• Firms need to know the following about their
  competitors
• ?Who they are.
• ?What their strategies are.
• ?What their objectives are.
• ?What their strengths and weaknesses are.
• ?How they react.

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Planning for the future

• This is a very important step (firms aim to
  survive, make
• a profit and, in many cases, grow).
• Need a strategic marketing plan in place which is
  flexible
• and a regular feature of managerial
  activity.
• A variety of techniques need to be applied to the
  plan
• PEST and SWOT analyses are two key techniques ---
  
• helpful (OP)

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PEST analysis

• PEST --- Political, Economic, Socio-cultural and
  Technological
• ?It refers to the external environment within
  which the firm
• operates.
• ?To future plans, this method provides a
  framework to help
• investigate the various factors that
  will affect the firm.
• PEST analysis is particularly important in the
  tourism industry as
• we have seen the industry is so
  vulnerable to rapid change.
• While PEST provides an awareness of the external
  environment,
• SWOT analysis is one of the main tools
  used to develop business
• strategies.

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SWOT analysis (1)

• SWOT --- Strengths, Weaknesses, Opportunities
  and Threats.
• ?This technique provides a framework which
  enables an
• organization to assess their position
  within a market in
• relation to the competition.
• ?Information gathered in a marketing audit can
  assess
• the companys internal strengths and
  weaknesses and
• the external opportunities and threats
  that it faces.
• ? SWOT analysis is not limited to the context of
  
• marketing it can be applied to the whole
  company, to
• destinations or tourism products.

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SWOT analysis (2)

• Some of the common factors are now considered.
• ? Strengths and weaknesses internal
• Products, people, the organization,
  financial
• position.
• ? Opportunities and threats external
• Competition, nature of the market, new
  technology, economic
• position, legal framework, political
  situation.

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Approaches to marketing planning

• Marketing plans are central to a firms strategy.
• Edgell et al ,1999
• the key is to have a welkhought-out
  marketing plan.
• Edgell et al ,1999
• a six-stage framework to help marketers
  analyse the marketplace and develop a strategic
  marketing plan --- these stages represent a
  useful structure. (OP)

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The six-stage framework

• ?Needs analysis
• ?Research and analysis
• ?Creative infusion
• ?Strategic positioning
• ?Marketing plan development
• ?Training, implementation, evaluation and
• adjustment

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CONCLUSION

• Harris and Katz 1996
• tourism marketing is not an easy task ... it
  is more than just advertising it requires a
  co-ordinated, phased plan involving dozens of
  specialised tasks.

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• Critically evaluate the role and importance of
  the following in contemporary tourism and
  marketing
• the World Wide Web
• brand management

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Topic discussion

• 1. Talk about marketing concepts?
• 2. What are characteristics of tourism services?
• 3. Why should our customers buy our products,
  rather than those of our competitors?
• 4.How do you understand 3P and 4P?
• 5. How do you understand 3 choices for targeting
  markets?
• 6. Talk about PEST and SWOT?