Download - Tourism Marketing & Promotion
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Tourism Marketing &
Promotion
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Tourism Marketing
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Introduction to Marketing
What is Marketing?
Where are we now?
How do we know if
we got there?
Where would we
like to be?
How do we get
there?
How do we make
sure we get there?
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Evolution of Marketing
PRODUCTION-ORIENTATION ERA1920s
SALES-ORIENTATION ERA1930s
MARKETING-DEPARTMENT ERA
MARKETING-ORGANIZATION ERA1950s
MARKETING-ORIENTATION ERA
SOCIAL-MARKETING-ORIENTATION ERA1970s
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Marketing Defined
This is about anticipating and identifyingthe wants and needs of a target market ofconsumers, then satisfying those needs in
order to make a profit. A continuous, sequential process through
which management plans, researches,implements, controls and evaluates
activities designed to satisfy bothcustomers needs and wants and the
organizations objectives
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Tourism Marketing
Travel and tourism organization tries to
maximize the satisfaction of tourist
demand through research, forecasting
and the selection of tourism products andservices to meet that demand.
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Tourism and Marketing
Tourism establishment are
mostly service oriented and
thus have the need for a morespecific marketing approach
and is referred to asSERVICES MARKETING
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Why is Services Marketing
different?
GENERIC DIFFERENCES(unchangeable but affects marketing)
Intangible nature of tourism Production methods
Perishability
Distribution channels Cost determination
Relationship with providers
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Why is Services Marketing
different?
CONTEXTUAL DIFFERENCES(correctable & affects marketing)
Narrow definition of marketing
Lack of appreciation for marketing skills Different organizational structures
Lack of data on competitive performance
Impact of government regulation and
deregulation Constraints and opportunities for nonprofit
marketers
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Tourism Marketing
Travel and tourism organization tries to
maximize the satisfaction of tourist
demand through research, forecasting
and the selection of tourism products andservices to meet that demand.
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Why is Tourism Marketing
different?
Shorter exposure to services
More emotional and irrational buying appeals
Greater importance on managing evidence
More variety and type of distribution channels
More dependence on complementaryorganizations
Easier copying of services More emphasis on off-peak promotion
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Uniqueness of Tourism
Marketing
Tourism is a service
Fragmented supply VS composite
demand
Travel motivations are heterogeneous
Dominant role of travel intermediaries
Complementarity of tourist services Role of official organizations in tourism
marketing
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Consumer Behavior and
Tourism Demand
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Defining Tourism Demand
Must have an understanding of the
consumers (tourists) buying behavior to
be able to define the demand
Tourism demand relates to the volume ofactivities, facilities and other tourism
product that the tourist requires in order
to be satisfied
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Measuring Tourism Demand
DESCRIPTIVE METRICSReflect counts of visitors based on some
standardized definition (note that definitionsvary widely by spatial scale)
Differentiate visitors into groups (MARKETSEGMENTATION)
Distinguish temporal components of demand
(track change over time)Often based on some standardized state,
national and global statistic
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Measuring Tourism Demand
INFERENTIAL METRICS
Economic (track incidence of recreation use
based on price and quantity)
Social (reflects some type of social carryingcapacity indices of use)
Environmental (reflects some physical
carrying capacity)
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Core Principles of
Marketing
THE MARKETING CONCEPT Acting on the belief that satisfying
customers needs and wants is first priority.
Constantly putting themselves in thecustomers shoes
MARKETING OR CUSTOMERORIENTATION
Managers or the organization has acceptedand acts according to the marketing conceptmaking sure of the long-term perspective
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Core Principles of
Marketing
SATISFYING CUSTOMERS NEEDS &
WANTS
The key to the establishments existence is
satisfying CNWs.
Being ever alert for new opportunities to convert
CNWs into sales
MARKET SEGEMENTATION
All customers are not alike Better to pick out groups of people (TARGET
MARKET) and market only to them
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Core Principles of
Marketing
VALUE & EXCHANGE PROCESS
Value represents a mental estimate that customers
make of a hospitality or travel services ability to
satisfy their needs and wants
Exchange is the trade of items of value between
establishment and customer
PRODUCT LIFE CYCLE
All establishments pass through predictable stagesthus marketing approach must be modified with
each stage
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Core Principles of
Marketing
MARKETING MIX
Must use a good mixture of the key
elements of marketing in order to achieve
marketing objectives 4 Ps: Product, Place, Promotion and Price
People
Prospects
Packaging
Programming
Partnership
Positioning
Post-sale
Planning
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Unique Approaches for
Tourism Marketing Use of more than 4Ps
Greater significance of WORD-OF-MOUTHADVERTISING
More use of EMOTIONAL APPEALS INPROMOTIONS
Greater difficulties with NEW-CONCEPTTESTING
Increased importance of relationships withcomplementary organizations
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Successful Marketing
Successful marketing depends on thefollowing:
Knowledge
Information;
Understanding how tourism works;
Understanding how consumers are
changing as we speak!
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What is Marketing?
Where are we now?
How do we know if
we got there?
Where would we
like to be?
How do we get
there?
How do we make
sure we get there?
How do customers make
hospitality and travel decisions?
THE HOSPITALITY
& TRAVEL
MARKETINGSYSTEM
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Tourism Promotions
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Tourism Promotion Defined
Purpose is to inform, to persuade or toremind or, more specifically, to influencepotential customers or trade
intermediaries through communications tothink and to act in a certain manner
A supporting marketing instrument
Integrates and connects the differentmarketing mix elements into a coherententity
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Tourism Promotion Defined
Means stimulating sales through
information dissemination
Making the tourist product attractive and
widely known so that actual and potentialtourists will buy it
An exercise in communication
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Types of Promotion
INFORMATIVE
PERSUASIVE
REMINDER
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Promotion and the
Travelers Buying Process
Buying
Process
Promotional
GoalsEnd Goal
Behaviormodification
Remind
Persuade
Inform
Adoption
Purchase
Intention
Attitudes
Comprehension
Attention
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Promotion Mix
Tools that convey the message to the
customers
Major types are:
Advertising
Personal selling
Sales promotion
Public relations
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Major Issue of Promotion
Accuracy and reliability of information
Techniques uses words that evoke emotion
and that have different meanings to the end
receiver.
False and misleading advertising
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Tourism Product Life Cycle
Stage 1: DISCOVERY or introduction
a small number of unobtrusive visitors arrive
seeking "unspoiled" destinations.
early "explorer" tourists generally speak thelanguage and identify with the local culture.
social impact is generally small and resident
attitudes are fairly positive towards tourism.
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Tourism Product Life Cycle
Stage 2: LAUNCH or growth
the number of incoming tourists increases
host community responds to the increasing
numbers of tourist by providing facilities. businesses remain family based and the
visitor-resident relationship is still
harmonious.
visitor numbers increase and the community
becomes a tourist resort.
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Tourism Product Life Cycle
Stage 2: LAUNCH or growth
Outside interests become involved developing
businesses and tourist facilities.
TNC (Trans-National Corporations) foreign
investment enters the cycle.
Migrant workers, attracted by the prospect of tourist-
related jobs, may enter the community and reduce
resident contact with visitors.
tourist-relationship converted into one of business as
the novelty of new visitor arrivals declines
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Tourism Product Life Cycle
Stage 3: STAGNATION or maturity
saturation is reached.
quality of tourist services falls
demand levels off
environmental degradation of the tourist
destination begins to be obvious and
worrying tourist destination is said to have reached
'maturity'
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Tourism Product Life Cycle
Stage 4: DECLINE
represents the current state of mature tourist
destinations on the Costa Brava in Spain.
Falling profits lead to foreign-ownedbusinesses withdrawing and the community
is left to "pick up the pieces".
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Tourism Product Life Cycle
REJUVENATIONWhen tourists are drawn away by otherdestinations, the market share of the destinationsuffers heavy decreases, the tourisminfrastructure run-down and replaced by other
non-tourism uses, and the external investmentmove out of local tourism industry, thedestination proceeds to the decline stage.But some dramatic change will probably occurwhen the new attractions replace original
attractions, or previously unexploited newresources are used to renew the image of thedestination. In this situation, a rejuvenationstage occurs.
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Market Segmentation
Division of the total population intodifferent homogenous groups ofconsumers to act as the market
Purpose: to allow your marketing/salesprogram to focus on the subset ofprospects that are "most likely" topurchase your offering
Will help to insure the highest return foryour marketing/sales expenditures
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Market Segmentation
Based on the following assumptions: The market for a product/service is made up of
particular segments whose members have particularneeds and preferences related to the product/servicebeing marketed
Potential tourists can be grouped whose membershave similar characteristics
A single product/service that is offered will appeal tosome segments of the population more than theothers
Some firms and organizations can improve theirmarketing effort by developing specific productofferings to reach specific segments
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Market Segmentation
A market segment should be:
Measurable
Accessible by communication and
distribution channelDifferent in its response to a marketing mix
Durable (not changing too quickly)
Substantial enough to make profit