Segmenting, …, positioning,

SAVE marketing mix (4ps):

- Instead of product: Focus on solution

- Instead of Place: Focus on access
- Instead of price: Focus on value
- Instead of promotion: Focus on education

Transactional Marketing (Existing Focus): Making money thru closing as many sales as possible or
finding new customers

Relationship Marketing (New Focus): Making money thru taking care of our existing customers…and
these existing customers will help us expanding.

Destination Loyalty (Existing Focus): The act of visiting a destination frequently…. mainly due to
satisfaction with the destination’s “functional attributes.”

Destination attachment (New Focus): Strong emotional bonding with a destination – nostalgic, self-
identity, symbolic meaning, connect psychologically

Local Marketing to Global Marketing

Characteristics of Service Marketing:

- Intangibility: University services, etc.

- Inseparability: Hair Salon, etc.
- Variability: Counter Services, etc.
- Perishability Music Concert, etc.

The Service Profit Chain:

- Internal service quality TO Satisfied and productive service employees TO Greater service value
TO Satisfied and loyal customer TO Healthy service profitability and growth

Marketing Strategies:

- Service Differentiation TO Service quality TO service productivity TO Customer complaints TO

Employees as part of product

5 Dimensions of Service Quality:

- Reliability,

Recommendation for Improving Service Quality

1. Listening
2. Reliability
3. Basic Service
4. Service Design
5. Recovery
6. Surprising Customers
 7. Fair play
8. Team work
9. Employee research
10. Servant leadership

Psychological Determinants of Demand:

- Prestige, Escape, Education, Social Interactions, Family bonding, Relaxation, Self-Discovery, Sex

Demand Management:

- Use price to create or reduce demand

- Use Reservations
- Overbook
- Revenue Management
- Use Queuing
- Shift Demand

Destination Marketing

- A marketing that promotes a destination (town, city, country, etc.) with a purpose to increase
the number of visitors.
- A tourism advertising for a specific place. Unlike product marketing, where the products are
delivered to customers through distribution channels, in destination marketing consumers move
to the destinations.

Why Destination Marketing:

- To achieve their ambitious goals using the available marketing.

Steps to successful destination marketing:

- Identify markets and target

- Identify customer needs and wants
- Match tourism resources and products with the selected targets and markets
The 4Ps of Futures

- Possible
- Plausible
- Probable
- Preferable

Scenario Planning: A tool of strategic planning which takes the uncertainty of future developments into
account.

- A process of creating alternative future based on knowledge, research and imagination.

- Aim to define your critical and develop plausible scenarios in order to discuss the impacts and
the responses to give for each one of them.
- Awareness of what could happen will prepare you to deal with what will happen
1) Define: What will be the main issue in this tourism and hospitality. Main concern. Put it
down as a question. May have one question or subset of questions. Set a timeline of your
choice. No less than 5 yrs and no less than 30 yrs.
2) Explore: Identify driving forces. (PESTLE) Forces that impact your focal issue
3) Create: Create a scenario from these driving forces and uncertainties. Can have 2 scenarios,
maximum 4.
4) Communicate: Describe in a short paragraph what this scenario will be.
5) Act:
6) Monitor:

The process to Create Scenarios:

- Determine focal issue and time horizon

- Identify your driving forces
- Identify your critical uncertainties
- Develop a range of plausible scenarios
- Discuss the implication

Broad Focal Issue: Destination Marketing of any country

- Step 1: Framing the Focal Issue (Main challenge, issue in 10yrs time)
o Food safety, Environment cleanliness, Noise pollution, travel packages, rural areas being
commercialized, prices increase where more tourists appear, Wide Internet access,
DEVELOPMENT OF PUBLIC FACILITIES: Affordablity, transportation,
- Step 2: Scoping the Future: Each student to list minimum 25 changes and uncertainties that can
affect the tourism and hospitality industry on the provided Post-it stickers. You are encouraged
to use elements of Micro (e.g.
Least Predictable, Most Impactful:

- Good relationship between countries can have an impact on lowering travelling restrictions
between them. This will increase flow and movement of people/tourists between these
countries. Businesses would invest in providing faster and more comfortable ways of
transportation to ease the travelling process.
- This is a threat to the traditional industry of transportation where customers would prefer the
better alternative option.

Most Predictable, Most impactful:

- Robotization would lead businesses to lower costs when producing newer high-speed
transportation methods. These new transportation methods would have the necessary
technology to cater to the new generations needs.
- This is a threat to the traditional industry of transportation where future customers would
prefer a transportation with more