Tourism Marketing & Promotion

Tourism Marketing

Introduction to Marketing
What is Marketing?

Where are we now?

Where would we like to be?

How do we know if we got there?

How do we get there?

How do we make sure we get there?

Evolution of Marketing
1920s
1930s

PRODUCTION-ORIENTATION ERA
SALES-ORIENTATION ERA

MARKETING-DEPARTMENT ERA
1950s MARKETING-ORGANIZATION ERA MARKETING-ORIENTATION ERA 1970s SOCIAL-MARKETING-ORIENTATION ERA

Marketing Defined
This is about anticipating and identifying the wants and needs of a target market of consumers, 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 both customers needs and wants and the organizations objectives

Tourism Marketing
Travel and tourism organization tries to maximize the satisfaction of tourist demand through research, forecasting and the selection of tourism products and services to meet that demand.

Tourism and Marketing

Tourism establishment are mostly service oriented and thus have the need for a more specific marketing approach and is referred to as SERVICES MARKETING

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

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

Tourism Marketing
Travel and tourism organization tries to maximize the satisfaction of tourist demand through research, forecasting and the selection of tourism products and services to meet that demand.

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 complementary organizations Easier copying of services More emphasis on off-peak promotion

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

Consumer Behavior and Tourism Demand

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 of activities, facilities and other tourism product that the tourist requires in order to be satisfied

Measuring Tourism Demand

DESCRIPTIVE METRICS
Reflect counts of visitors based on some standardized definition (note that definitions vary widely by spatial scale) Differentiate visitors into groups (MARKET SEGMENTATION) Distinguish temporal components of demand (track change over time) Often based on some standardized state, national and global statistic

Measuring Tourism Demand

INFERENTIAL METRICS
Economic (track incidence of recreation use based on price and quantity) Social (reflects some type of social carrying capacity indices of use) Environmental (reflects some physical carrying capacity)

Core Principles of Marketing

THE MARKETING CONCEPT
Acting on the belief that satisfying customers needs and wants is first priority. Constantly putting themselves in the customers shoes

MARKETING OR CUSTOMER ORIENTATION

Managers or the organization has accepted and acts according to the marketing concept making sure of the long-term perspective

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

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 stages thus marketing approach must be modified with each stage

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 Partnership People Positioning Prospects Post-sale Packaging Planning Programming

Unique Approaches for Tourism Marketing

Use of more than 4Ps Greater significance of WORD-OF-MOUTH ADVERTISING More use of EMOTIONAL APPEALS IN PROMOTIONS Greater difficulties with NEW-CONCEPT TESTING Increased importance of relationships with complementary organizations

Successful Marketing
Successful marketing depends on the following:
Knowledge Information; Understanding how tourism works; Understanding how consumers are changing as we speak!

What is Marketing?

How do customers make hospitality and travel decisions?

Where are we now?

Where would we like to be?

THE HOSPITALITY & TRAVEL MARKETING SYSTEM

How do we know if we got there?

How do we get there?

How do we make sure we get there?

Tourism Promotions

Tourism Promotion Defined

Purpose is to inform, to persuade or to remind or, more specifically, to influence potential customers or trade intermediaries through communications to think and to act in a certain manner A supporting marketing instrument Integrates and connects the different marketing mix elements into a coherent entity

Tourism Promotion Defined

Means stimulating sales through information dissemination Making the tourist product attractive and widely known so that actual and potential tourists will buy it An exercise in communication

Types of Promotion
INFORMATIVE PERSUASIVE REMINDER

Promotion and the Travelers Buying Process

Adoption Purchase Intention Persuade Behavior modification Remind

Attitudes
Comprehension Attention Buying Process Inform

Promotional Goals

End Goal

Promotion Mix
Tools that convey the message to the customers Major types are:
Advertising Personal selling Sales promotion Public relations

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

Tourism Product Life Cycle

Stage 1: DISCOVERY or introduction
a small number of unobtrusive visitors arrive seeking "unspoiled" destinations. early "explorer" tourists generally speak the language and identify with the local culture. social impact is generally small and resident attitudes are fairly positive towards tourism.

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.

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 touristrelated 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

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'

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-owned businesses withdrawing and the community is left to "pick up the pieces".

Tourism Product Life Cycle

REJUVENATION
When tourists are drawn away by other destinations, the market share of the destination suffers heavy decreases, the tourism infrastructure run-down and replaced by other non-tourism uses, and the external investment move out of local tourism industry, the destination proceeds to the decline stage. But some dramatic change will probably occur when the new attractions replace original attractions, or previously unexploited new resources are used to renew the image of the destination. In this situation, a rejuvenation stage occurs.

Market Segmentation
Division of the total population into different homogenous groups of consumers to act as the market Purpose: to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering Will help to insure the highest return for your marketing/sales expenditures

Market Segmentation
Based on the following assumptions:
The market for a product/service is made up of particular segments whose members have particular needs and preferences related to the product/service being marketed Potential tourists can be grouped whose members have similar characteristics A single product/service that is offered will appeal to some segments of the population more than the others Some firms and organizations can improve their marketing effort by developing specific product offerings to reach specific segments

Market Segmentation
A market segment should be:
Measurable Accessible by communication and distribution channel Different in its response to a marketing mix Durable (not changing too quickly) Substantial enough to make profit