Marketing Tourism Hillary Jenkins, Otago Polytechnic

Marketing Concept ‘ Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.’ (Chartered Institute of Marketing, UK)

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

The Traditional Marketing Mix Set of controllable variables blended by organisations for selected market segments The Price Place (distribution) Product Promotion Queenstown

Set of controllable variables blended by organisations for selected market segments

The Price

Place (distribution)

Product

Promotion

4P’s of Marketing Product Design Quality Range Brand name Features Price List price Discounts Commissions Surcharges Extras Place Distribution channels Methods of distribution Coverage Location Promotion Advertising Sales promotion Salesmanship Publicity The Marketing Mix

Product

Design

Quality

Range

Brand name

Features

Price

List price

Discounts

Commissions

Surcharges

Extras

Place

Distribution channels

Methods of distribution

Coverage

Location

Promotion

Advertising

Sales promotion

Salesmanship

Publicity

Product Tourism products and services are designed for and continuously adapted to match changing needs, expectations and budget of the target market

Tourism products and services are designed for and continuously adapted to match changing needs, expectations and budget of the target market

Place Not only the location of the tourist attraction or facility but the location of points of sale that provide customers with access to tourist products eg. I-site, accommodation, cafe

Not only the location of the tourist attraction or facility but the location of points of sale that provide customers with access to tourist products

eg. I-site, accommodation, cafe

Price Used to achieve predetermined sales volume and revenue objectives Price gives a product or service a perceived value in the eyes of the consumer How would you use price to counteract demand exceeding supply?

Used to achieve predetermined sales volume and revenue objectives

Price gives a product or service a perceived value in the eyes of the consumer

How would you use price to counteract demand exceeding supply?

Promotion The most visible of the 4p’s Promotional techniques aim to increase awareness and demand for products http://nz.youtube.com/watch?v=gwTpijLCfrc&feature=related

The most visible of the 4p’s

Promotional techniques aim to increase awareness and demand for products

http://nz.youtube.com/watch?v=gwTpijLCfrc&feature=related

Marketing Services Tourism is a service. Services differ from physical products, This needs to be taken into account when marketing them

Tourism is a service.

Services differ from physical products,

This needs to be taken into account when marketing them

Characteristics of Services Intangibility Heterogeneity Temporary ownership Perishability Inseparability

Intangibility

Heterogeneity

Temporary ownership

Perishability

Inseparability

Intangibility Not the physical portion (tangible) of the product Performance or experience rendered by the service provider to the service consumer Most tourism products are a mixture of tangible and intangible

Not the physical portion (tangible) of the product

Performance or experience rendered by the service provider to the service consumer

Most tourism products are a mixture of tangible and intangible

Inseparability Services are usually produced and consumed at the same time Think of a restaurant meal This can make it difficult to separate the provider of the service from the service itself.

Services are usually produced and consumed at the same time

Think of a restaurant meal

This can make it difficult to separate the provider of the service from the service itself.

Perishability Services cannot be saved or stored as they expire during the simultaneous production and consumption process Aircraft seat Restaurant meal Amusement park ride

Services cannot be saved or stored as they expire during the simultaneous production and consumption process

Aircraft seat

Restaurant meal

Amusement park ride

Heterogeneity Standardisation Difficult to achieve in a people based service industry Quality control plays an important part What forms of standardization can you think of?

Standardisation

Difficult to achieve in a people based service industry

Quality control plays an important part

What forms of standardization can you think of?

Ownership Service customers usually only have access to or use a facility where a service is performed Use of a hotel room for a holiday – you occupy the space only and have temporary use of the facilities

Service customers usually only have access to or use a facility where a service is performed

Use of a hotel room for a holiday – you occupy the space only and have temporary use of the facilities

How Tourism Differs Tourism is more supply-led than other services All ready have the product then research which market might be interested in purchasing it. Dunedin the destination is already here who wants to visit. Tourism product might involve the co-operation of several suppliers . e.g. Package holiday

Tourism is more supply-led than other services

All ready have the product then research which market might be interested in purchasing it.

Dunedin the destination is already here who wants to visit.

Tourism product might involve the co-operation of several suppliers .

e.g. Package holiday

How Tourism Differs Tourism is a complex, extended product experience with no predictable critical evaluation point. Pre trip anticipation and post trip reflection While trips to the same destination may be the same different variables can make the trip different – and hard to evaluate against

Tourism is a complex, extended product experience with no predictable critical evaluation point.

Pre trip anticipation and post trip reflection

While trips to the same destination may be the same different variables can make the trip different – and hard to evaluate against

How Tourism Differs Tourism is a high-involvement, high-risk product to its consumers Involves committing large sums of money to something reasonably unknown Tourism is a product partly constituted by the dreams and fantasies of its customers . Unlike banking and car repair, tourism is not consumed for rational, functional purposes.

Tourism is a high-involvement, high-risk product to its consumers

Involves committing large sums of money to something reasonably unknown

Tourism is a product partly constituted by the dreams and fantasies of its customers .

Unlike banking and car repair, tourism is not consumed for rational, functional purposes.

How Tourism Differs Tourism is a fragile industry susceptible to external forces beyond the control of its suppliers Tourism organisations sometimes have to make rapid responses to crises in the form of product redesign, price reductions or promotional damage limitation.

Tourism is a fragile industry susceptible to external forces beyond the control of its suppliers

Tourism organisations sometimes have to make rapid responses to crises in the form of product redesign, price reductions or promotional damage limitation.

7 P’s of Tourism Marketing Price Place Product Promotion People Process Physical Evidence

Price

Place

Product

Promotion

People

Process

Physical Evidence

People Know who your target market is traveller or tourist? what do they expect? http://flickr.com/photos/wolfgangstaudt/2242014640

Know who your target market is

traveller or

tourist?

what do they expect?

People - Employees A tourism organisations most valuable resource Physical appearance, behaviour, knowledge and attitude has a powerful impact on customers perception of the tourism product Ensure uniform, grooming etc. conform to branding and target market

A tourism organisations most valuable resource

Physical appearance, behaviour, knowledge and attitude has a powerful impact on customers perception of the tourism product

Ensure uniform, grooming etc. conform to branding and target market

People - Employees Ensure staff are trained to ensure the product is delivered in accordance with the marketing strategic plan. Employees physically embody the product and are walking billboards from a promotional point of view – Zeithaml & Bitner (1996)

Ensure staff are trained to ensure the product is delivered in accordance with the marketing strategic plan.

Employees physically embody the product and are walking billboards from a promotional point of view – Zeithaml & Bitner (1996)

Process Process is inseparable product If any part of the process is found to be unsuitable by the consumer, it could result in a negative evaluation of the whole product.

Process is inseparable product

If any part of the process is found to be unsuitable by the consumer, it could result in a negative evaluation of the whole product.

Physical Evidence Defined as the built environment owned and controlled by a tourism organisation The tangible aspect of the tourism product May be used to facilitate the service delivery process e.g. layout and signage Communicates messages about quality, positioning and differentiation

Defined as the built environment owned and controlled by a tourism organisation

The tangible aspect of the tourism product

May be used to facilitate the service delivery process e.g. layout and signage

Communicates messages about quality, positioning and differentiation

Think about the layout, colours , furnishings, sound systems at an airport http://flickr.com/photos/jamespaullong/940934988/ Physical Evidence

Marketing Tourism Product and service Tangible and intangible People led and operated Market orientated

Marketing Tourism

Product and service

Tangible and intangible

People led and operated

Market orientated