Tourism Marketing


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Tourism Marketing

  1. 1. Tourism Marketing©Ramakrishna Kongalla
  2. 2. • CCDD – Create, Communicate,Deliver & feedback– Marketing means achieving thefirms goals by identifying theneeds and desires of consumers,and then satisfying them betterthan competitors.– Tourism marketing is theapplication of marketingconcepts in the travel andtourism industry.– Tourism marketing could becomplex due to the productbeing an amalgam of manydifferent industries such asaccommodation andtransportation.– The markets also vary widely,and determining the consumerspreferences could be difficult.• Definition– the organized, combined effortsof the national tourist bodiesand/or the businesses in thetourism sector of aninternational, national or localarea to achieve growth intourism by maximizing thesatisfaction of tourists. In doingso, the tourist bodies andbusinesses expect to receiveprofits• Product– climate, history, culture,amenities,– The tourism product is the sumof all the factors in an area thatcan result in consumersatisfaction.– A tourist or his travel agentcombines the differentcomponents to get his owntourist product.Rtist@Tourism, Pondicherry University 2
  3. 3. • Characteristics– intangible– Consumption happens atonce– consumer relies on pre-purchase information tomake his decisions becausehe has no option to see– different producers areinvolved to create andmarket the product– Demand is seasonal– motivations of consumersvary widely– Intermediaries such astravel agents have a strongcontrol over productdesign, distribution,promotion and pricing– High fixed costs are ofteninvolved, resulting in theuse of short-run marketing• Features– involves several steps– Market research seeks to understand theconsumer– product development aims to meet his needs– Analysis and selection of target markets, alsoknown as segmentation, means studyingpotential customer groups and selecting onlycertain groups whose needs and wants can bebest met with a certain producers product– Marketing strategy seeks to reach the targetmarkets using promotion, advertising, pricingand distribution.• Communication– occur in three ways: external, internal and word-of-mouth– External marketing uses formal communicationchannels to promote the tourism product to thetraveler, boasting of its benefits and makingpromises– Internal marketing communication occurs whenthe tourism service provider makes contact withthe tourist and delivers the promised benefits.– Word-of-mouth communication occursinformally when visitors or employees discusstheir experiences of the tourism product toothers.Rtist@Tourism, Pondicherry University 3
  4. 4. SWOT analysis of Tourism• Strengths– Vast geography withforests, deserts, mountains &beaches.– Varied culture.– Many historical monuments.– Knowledge of English bymajority of local people.– Efficient transport facilities.• Weakness– Lack of adequate infrastructure.– Safety and security of foreigntourists.– Misconception about India byforeigners– Lack of maintenance ofmonuments, forts etc.– Many languages and dialects.• Opportunities– Increased privatization.– CWG 2010, Grandprix2011– Medical tourism.– Go-green initiative.– World-class hotels and airports• Threats– Terrorism.– Tensions with Pakistan.– Better promotion by othercountries.– Economic slowdown.4Rtist@Tourism, Pondicherry University
  5. 5. PEST analysis of Tourism5Rtist@Tourism, Pondicherry University
  6. 6. Core concepts in Marketing• Needs– state of felt deprivationincluding physical, social, andindividual needs.• Wants– Needs become wants whenthey are directed to specificobjects that might satisfy theneed.• Demands– Wants + buying power• Needs and Wants Fulfilledthrough a Marketing Offer :– Some combination ofproducts, services, information, or experiences offered to amarket to satisfy a need orwant.Rtist@Tourism, Pondicherry University 6
  7. 7. • Target markets &segmentation– Differences inneeds, behavior, demographics or psychographicsare used to identifysegments.– The segment served bythe firm is called the targetmarket.– The market offering iscustomized to the needsof the target market.• Market– The Marketplace isphysical, as when one goesfor shopping in a store.– Marketspace is digital, aswhen one goes shoppingon the internet.– Metamarket is described asa cluster of complementaryproducts and services thatare closely related in theminds of consumers butare spread across a diverseset of industries.Rtist@Tourism, Pondicherry University 7
  8. 8. Marketing Management Philosophies• The Production Concept– The production concept holdsthat customers will favorproducts that are available andhighly affordable and thatmanagement should thereforefocus on improving productionand distribution efficiency.– The production concept isuseful when:• 1) Demand for a productexceeds the supply.• 2) The products cost is toohigh and improved productivity isneeded to bring it down.– The risk with this concept is infocusing too narrowly oncompany operations. Do notignore the desires of themarket.• The Product Concept– The product concept states thatconsumers will favor productsthat offer the mostquality, performance, andfeatures, and that theorganization should thereforedevote its energy to makingcontinuous productimprovements.• 1. Some manufacturersmistakenly believe that if they``build a better mousetrapconsumers will beat a path totheir door just for their product.• 2. The product concept canalso lead to “marketing myopia”the failure to see the challengesbeing presented by otherproducts.Rtist@Tourism, Pondicherry University 8
  9. 9. • The selling Concept– Many organizations follow theselling concept. The sellingconcept is the idea thatconsumers will not buy enough ofthe organizations products unlessthe organization undertakes alarge-scale selling and promotioneffort.• 1. This concept is typicallypracticed with unsought goods(those that buyers do not normallythink of buying).• 2. To be successful with thisconcept, the organization must begood at tracking down theinterested buyer.• 3. Industries that use thisconcept usually have overcapacity.Their aim is to sell what they makerather than make what will sell inthe market.• 4. There are not only high riskswith this approach but lowsatisfaction by customers.• The Marketing Concept– The marketing concept holds thatachieving organizational goalsdepends on determining theneeds and wants of targetmarkets and delivering thedesired satisfactions moreeffectively and efficiently thancompetitors do.– The marketing and sellingconcepts are often confused. Theprimary differences are:• 1) The selling concept takes aninside-out perspective (focuses orexisting products and uses heavypromotion and selling efforts).• 2) The marketing concept takesan ``outside-in perspective(focuses on customerneeds, values, and satisfactions).– Many companies claim to adoptthe marketing concept but reallydo not unless they commit tomarket-focused and customer-driven philosophies.Rtist@Tourism, Pondicherry University 9
  10. 10. • The Societal Marketing Concept– The societal marketingconcept holds that theorganization should determine theneeds, wants, and interests oftarget markets. It should thendeliver the desired satisfactionsmore effectively and efficientlythan competitors in a way thatmaintains or improves theconsumers and the societys well-being.• 1) The societal marketingconcept is the newest of themarketing philosophies.• 2) It questions whether thepure marketing concept isadequate given the wide varietyof societal problems and ills.• 3) According to the societalmarketing concept, the puremarketing concept overlookspossible conflicts betweenshort-run consumer wants andlong-run consumer welfare.• 4) The societal conceptcalls upon marketers tobalance threeconsiderations in settingtheir marketing policies:– a) Company profits.– b) Customer wants.– c) Societysinterests.• 5) It has became goodbusiness to consider andthink of societys interestswhen the organizationmakes marketing decisions.Rtist@Tourism, Pondicherry University 10
  11. 11. Economic importance of Marketing• Generation of revenue– profit generation and marketing is the onlysource to meet its expenses and earn profits.– survival and growth of the businessenterprise depends on the effectiveness andefficiency of marketing.• Customer satisfaction– Marketing helps to identify and satisfy theneeds and wants of consumers.– Customer satisfaction has a important role inmarketing without which a business can’t besuccessful.• Employment Generation– marketing offers challenging and rewardingjobs to a large number of persons. It alsogenerates employment in production byenlarging the scale of distribution andproduction.• Higher standards of living– Marketing is helpful in improving thestandard of living of people by offering a widevariety of goods and services with freedom ofchoice. It has modernized the living standardsof people through the supply of qualityproducts at reasonable price.• Large scale production– marketing makes mass selling possible andthereby facilitates large scale production.Economies of large scale production helpto reduce the cost of production per unit.• Economic Development– Marketing gives a boost totransportation, banking, insurance, warehousing and other economics activities. Itmakes the economy strong and stable bybalancing production with consumption. Infact, marketing is the kingpin that keepsthe economy moving ahead.• Foreign exchange earner– marketing helps in exploring foreignmarkets and in exporting goods andservices. It is through marketing that acountry earns valuable foreign exchange.• Creation of utilities– Marketing includes all activities involved inthe creation of place utility, time utility andpossession utility. Place utility is created bymaking goods available at the placeswhere they are needed. Time utility iscreated by making goods available at theright time. Possession utility is createdwhen goods are transferred to those whoneed them.Rtist@Tourism, Pondicherry University 11
  12. 12. Tourism marketing• Service Characteristics– Curiosity and desire to travel– Tourism marketing createsdesire in tourists– Multifaceted activitiesproduces tourism product– Various sub sectors, that arein themselves completeindustries– Tourism promotion in variousforms in different socioeconomic structures– Marketing strategy is must• Tourism Demand– Highly unstable• Seasonal• Economical• political– Facilitators– Motivators– resistance factors• characteristics– Price elasticity –responsiveness of demandto change in price– Income elasticity – increasein individual’s income willnot necessarily mean anincrease in travel demand.May result in an increase inquality product ordestination.Rtist@Tourism, Pondicherry University 12
  13. 13. • Tourism Product– Intangible, irreversible, perishable, lack of ownership,– Heterogeneity, Non-material, consumed where produced,– multiplicity of producers, highly unstable demand,dominant role of intermediaries, motivations.• Tourism Demand Determinants13Rtist@Tourism, Pondicherry University
  14. 14. Tourism Marketing mix• 8 P’s in Tourism– Product– Place– Price– Promotion– People– Process– Productivity & Quality– Physical Evidence• 1.Product– Accommodation– Attraction– Transportation– Recreation– Shopping– Restaurant• 2. Pricing– Cost– Demand– Competition– Duration– Mode of transport– Peak/Non-peak season– Destination14Rtist@Tourism, Pondicherry University
  15. 15. • 3. Promotion– Different states highlighting abouttheir features.E.g.– 1. Kerala- ‘God’s owncountry’Highlighting aboutbackwaters, ayurveda, elephants, houseboats, beaches etc.– Incredible India’ and ‘Atithi DevoBhava’ are taglines of IndianTourism– ‘Our guest is blessed’ and ‘Ourvisitor is god’– Aamir Khan as brand ambassadorfor ‘Atithi Devo Bhava’ for Indiantourism.– Use of websites to sell tourism.– Brochures, pamphlets, ads innewspapers.– E.g. Raj, Kesari and Thomas Cook.• 4. Place– The ‘destination’ is the important aspect inplace.– Travel agents, tour operators etc. aredistribution points.– Proper infrastructure, transport andcommunication.• 5. People– Role of people is very important in anyservice.– In tourism, people involved are travelagents, guides, airline crewmembers, receptionist in hotel etc.– Contacts with people may be high, medium orlow.• Examples:1. In case of airlines:- The passenger will have high or mediumcontact with the air-hostess, ground-staff where as low or no contact withthe pilot.2. In case of railways:- The passenger will have high or mediumcontact with travel agents or ticketissuer but low or no contact with theloco pilot.15Rtist@Tourism, Pondicherry University
  16. 16. – Travel agents shouldprovide best deals tocustomers afterunderstanding theirrequirements.– Guides should have in-depth knowledge aboutthe locations, monuments,forts, history etc.– Employees should deliverwhat the companypromises to the customer.– Physical appearance ofguides also matters a lot.• 6. Process16Rtist@Tourism, Pondicherry University
  17. 17. • 7. Physical Evidence • 8. Productivity &Quality– It involves positioningthe process, the overalldestination, theintangibles etc.– It also involvespositioning of tourismas National priority.17Rtist@Tourism, Pondicherry University
  18. 18. Tourism Demand Modeling and Forecasting• Tourism demand modelingand forecasting are veryimportant for tourism-relatedbusiness decision making– Stock effect,– market response effectAnalysis• Tourism demand can bemeasured in terms of• number of tourist visits froman origin country to adestination country• tourist expenditure by visitorsfrom the origin country in thedestination country• tourist nights spent by visitorsin the destination country• the explanatory variables fortourism demand includeorigin countryincome, destination countrytourism prices, substitutedestination country tourismprices, tastes, etc. Empiricalstudies usually use living costsfor tourists in the destinationas the tourism price. Variousdemand models can be usedto estimate and forecasttourism demand.• modeling tourism demand ina vector autoregressive (VAR)framework, to forecast thenumber of holidays spent bynon residents18Rtist@Tourism, Pondicherry University
  19. 19. Methods that rely onqualitative assessment– Unaided judgment– Prediction market– Delphi technique– Game theory– Judgmental bootstrapping– Simulated interaction– Intentions andexpectations surveys– Conjoint analysisMethods that rely onquantitative data– Discrete Event Simulation– Extrapolation– Quantitative analogies– Rule-based forecasting– Neural networks– Data mining– Causal models– Segmentation19Rtist@Tourism, Pondicherry University
  20. 20. Managing capacity and Demand• Capacity Constraints– Time, labor, equipmentand facilities– Optimal versus maximaluse of capacity• Demand PatternsCharting demand patternsPredictable cyclesRandom demandfluctuationsDemand patterns bymarket segment20Rtist@Tourism, Pondicherry University
  21. 21. Market segmentation– segmentation is the processof:– (1) taking existing and/orpotentialcustomers/visitors (market)and categorizing them intogroups with similar preferencesreferred to as "marketsegments;"– (2) selecting the mostpromising segments as"target markets;" and– (3) designing "marketingmixes," or strategies(combination of the 4 Ps),which satisfy the special needs,desires and behavior of thetarget unique or best way tosegment markets, but waysin which customers can begrouped are:– (1) location of residence---instate, out-of-state, local;– (2) demographics---age, income, familystatus, education;– (3) equipment ownership/use---RVs, sailboats, canoes, tents, snowmobiles;– (4) important productattributes---price, quality, quantity; and– (5) lifestyle attributes---activities, interests, opinions.21Rtist@Tourism, Pondicherry University
  22. 22. Target markets• After segments have been identified, the businessor community must select the "target markets,"those segments which offer them the greatestopportunity. When determining targetmarkets, consideration should be given to:– (1) existing and future sales potential of each segment;– (2) the amount and strength of competition for each segment;– (3) the ability to offer a marketing mix which will be successfulin attracting each segment;– (4) the cost of servicing each segment; and– (5) each segments contribution to accomplishingoverall business/community objectives.• It is often wiser to target smaller segments thatare presently not being served, or servedinadequately, than to go after larger segments for whichthere is a great deal of competition. 22Rtist@Tourism, Pondicherry University
  23. 23. 23Rtist@Tourism, Pondicherry University
  24. 24. Positioning• In marketing, positioning has come tomean the process by which marketerstry to create an image or identity in theminds of their target market for itsproduct, brand, or organization.• Re-positioning involves changing theidentity of a product, relative to theidentity of competing products, in thecollective minds of the target market.• De-positioning involves attempting tochange the identity of competingproducts, relative to the identity of yourown product, in the collective minds ofthe target market.• The original work on Positioning wasconsumer marketing oriented, and wasnot as much focused on the questionrelative to competitive products asmuch as it was focused on cuttingthrough the ambient "noise" andestablishing a moment of real contactwith the intended recipient24Rtist@Tourism, Pondicherry University
  25. 25. • primary elements of positioning are:– Pricing. Is your product a luxuryitem, somewhere in the middle, orcheap, cheap, cheap.– Quality. Total quality is a much usedand abused phrase. But is yourproduct well produced? Whatcontrols are in place to assureconsistency? Do you back your qualityclaim with customer-friendlyguarantees, warranties, and returnpolicies?– Service. Do you offer the added valueof customer service and support? Isyour product customized andpersonalized?– Distribution. How do customersobtain your product? The channel ordistribution is part of positioning.– Packaging. Packaging makes a strongstatement. Make sure its deliveringthe message you intend.• Positioning concepts– Functional positions• Solve problems• Provide benefits to customers• Get favorable perception by investors (stock profile) andlenders– Symbolic positions• Self-image enhancement• Ego identification• Belongingness and social meaningfulness• Affective fulfillment– Experiential positions• Provide sensory stimulation• Provide cognitive stimulation• Product positioning process– Defining the market in which the product or brand willcompete (who the relevant buyers are)– Identifying the attributes (also called dimensions) that definethe product space– Collecting information from a sample of customers about theirperceptions of each product on the relevant attributes– Determine each products share of mind– Determine each products current location in the productspace– Determine the target markets preferred combination ofattributes (referred to as an ideal vector)– Examine the fit between:• The position of your product• The position of the ideal vector– Position.25Rtist@Tourism, Pondicherry University
  26. 26. Marketing Environment26Rtist@Tourism, Pondicherry University
  27. 27. Consumer buying behavior• "The study of individuals, groups, ororganizations and the processes they useto select, secure, use, and dispose ofproducts, services, experiences, or ideasto satisfy needs and the impacts thatthese processes have on the consumerand society."– how consumers think, feel, reason, and selectbetween different alternatives(e.g., brands, products, and retailers);– how the consumer is influenced by his or herenvironment(e.g., culture, family, signs, media);– The behavior of consumers while shopping ormaking other marketing decisions;– Limitations in consumer knowledge orinformation processing abilities influencedecisions and marketing outcome;– How consumer motivation and decisionstrategies differ between products that differin their level of importance or interest thatthey entail for the consumer; and– How marketers can adapt and improve theirmarketing campaigns and marketingstrategies to more effectively reach theconsumer.• Consumer behavior involves services andideas as well as tangible products.• main applications of consumer behavior– marketing strategy—i.e., for making bettermarketing campaigns– public policy– Social marketing involves getting ideasacross to consumers rather than sellingsomething.– studying consumer behavior should make usbetter consumers• three ways of analysing consumer buyingdecisions– Economic models - These models are largelyquantitative and are based on theassumptions of rationality and near perfectknowledge. The consumer is seen tomaximize their utility. See consumer theory.Game theory can also be used in somecircumstances.– Psychological models - These modelsconcentrate on psychological and cognitiveprocesses such as motivation and needrecognition. They are qualitative rather thanquantitative and build on sociological factorslike cultural influences and family influences.– Consumer behaviour models - These arepractical models used by marketers. Theytypically blend both economic andpsychological models.27Rtist@Tourism, Pondicherry University
  28. 28. General model for Consumer Behavior• A general model of thebuyer decision processconsists of the followingsteps:– Problem recognition;– Information Search– Evaluation of Alternative– Purchase decision– Purchase– Post-purchasebehavior/buyers remorse(cognitive dissonance)• AIUAPR MODEL– Awareness– Interest– Understanding– Attitude– Purchase– Repeat purchaseRtist@Tourism, Pondicherry University 28
  29. 29. Marketing Competitive Differentiation• Treacy & Wiersema say that there areprimarily three ways in which a companycan build competitive differentiation• Operational Excellence/Cost Leadership– Provide middle-of-the-marketproducts at the best price and theleast hassle.– Example: Wal-Mart.• Product Leadership– Provide the best product, period.Continue to innovate year after year.– Example: Intel, Nike.• Customer Intimacy– Provide unique solutions to customersby virtue of intimate knowledge oftheir needs.– Example: IBM.• every company that is a leader in its marketchooses to differentiate itself on one and onlyone of these three "value disciplines".– For example, if a company tries to be the costleader as well as the product leader in its market -over time, it will end up as neither, Wal-Martdoesnt sell Armanis, Nike doesnt sell cheapshoes, and IBM sells neither the cheapest nor thebest products.• How Durable Is Your CompetitiveAdvantage?• If your company chooses to be a productleader, continue to innovate year after year– Intel, for example, has sustained productleadership over a very long period by out-innovating competitors. Dell, likewise, has heldcost leadership for the better part of the last twodecades.• Differentiate or Die?– If your companys products are not differentiatedin ways that really matter to your customers, yourproducts may not necessarily die - but theycertainly will be commoditized over time and atbest will end up as also-ran products.– Identify areas where your products can havestrong, sustainable competitive differentiationand execute to make that the reality. This is oneof the biggest values you can add to yourcompany.Rtist@Tourism, Pondicherry University 29
  30. 30. Competitive Marketing Strategy• Marketing strategy is a process that can allow anorganization to concentrate its limited resources onthe greatest opportunities to increase sales andachieve a sustainable competitive advantage• marketing strategies are developed as multi-yearplans, with a tactical plan detailing specific actions tobe accomplished in the current year• Marketing strategies are dynamic and interactive. Theyare partially planned and partially unplanned• involves careful scanning of the internal and externalenvironments, Internal environmental factors includethe marketing mix, plus performance analysis andstrategic constraints• External environmental factors include customeranalysis, competitor analysis, targetmarket analysis, as well as evaluation of any elementsof the technological, economic, cultural orpolitical/legal environment likely to impact success• Once a thorough environmental scan iscomplete, a strategic plan can be constructed toidentify business alternatives, establish challenginggoals, determine the optimal marketing mix to attainthese goals, and detail implementation.• A final step in developing a marketing strategy is tocreate a plan to monitor progress• Typically there are four types ofmarket dominance strategies:– Leader– Challenger– Follower– Nicher• generic strategy framework (porter1984)– Product differentiation (broad)– Cost leadership (broad)– Market segmentation (narrow)• Innovation strategies– Pioneers– Close followers– Late followers• Growth strategies– Horizontal integration– Vertical integration– Diversification– IntensificationRtist@Tourism, Pondicherry University 30
  31. 31. Rtist@Tourism, Pondicherry University 31New product Development
  32. 32. Product life Cycle• Discovery– unspoiled" destinations– Explorers• Launch– incoming tourists increases– host community responds• Stagnation– host community responds– quality of tourist servicesfalls– demand levels off– environmentaldegradation– reached maturity‘• Decline– Falling profits– foreign-owned businesseswithdrawing– community is left to "pickup the pieces"Rtist@Tourism, Pondicherry University 32
  33. 33. Customer Satisfaction• Customer satisfaction, aterm frequently usedin marketing, is a measureof how products andservices supplied by acompany meet or surpasscustomer expectation.• Customer satisfaction isdefined as "the number ofcustomers, or percentageof total customers, whosereported experience with afirm, its products, or itsservices (ratings) exceedsspecified satisfactiongoals."• Customer Satisfaction in 7Steps– 1. ENCOURAGE FACE-TO-FACEDEALINGS– 2. RESPOND TO MESSAGESPROMPTLY & KEEP YOURCLIENTS INFORMED– 3. BE FRIENDLY ANDAPPROACHABLE– 4. HAVE A CLEARLY-DEFINEDCUSTOMER SERVICE POLICY– 5. ATTENTION TO DETAIL(ALSO KNOWN AS ‘THE LITTLENICETIES’)– 6. ANTICIPATE YOUR CLIENT’SNEEDS & GO OUT OF YOURWAY TO HELP THEM OUT– 7. HONOUR YOUR PROMISESRtist@Tourism, Pondicherry University 33
  34. 34. Rtist@Tourism, Pondicherry University 34
  35. 35. Rtist@Tourism, Pondicherry University 35Customer Retention
  36. 36. Strategies in Internal & External MarketingInternal factor , these involve(5Ms)– Management– Manpower– machine– material and– money.External factors , these include– Macro factor• micro factors.• Macro factors are the onethat affect the organizationindirectly, these are (pestel)– Political– enviroment– socia-cultural– technological and– Ecological– leagal• while micro factors are thosewhich affect the organizationdirectly it involve– customers– competitors– suppliers and– publicRtist@Tourism, Pondicherry University 36
  37. 37. Interactive and Relationship Marketing• Interactive Marketing refers to theevolving trendin marketing whereby marketinghas moved from a transaction-based effort to a conversation.• “the ability to address an individualand the ability to gather andremember the response of thatindividual” leading to “the ability toaddress the individual once more ina way that takes into account his orher unique response”(Deighton1996).• Interactive marketing is notsynonymous with online marketing,although interactive marketingprocesses are facilitated by internettechnology• Relationship marketing was firstdefined as a form of marketingdeveloped from direct responsemarketing campaigns whichemphasizes customer retention andsatisfaction, rather than a dominantfocus on sales transactions.• it recognizes the long term value ofcustomer relationships and extendscommunication beyond intrusiveadvertising and sales promotionalmessages• Relationship marketing extends toinclude inbound marketingefforts, (a combination of searchoptimization and strategiccontent), PR, social media andapplication development.• Relationship marketing is a broadlyrecognized, widely-implementedstrategy for managing and nurturinga company’s interactions withclients and sales prospects.Rtist@Tourism, Pondicherry University 37
  38. 38. Rtist@Tourism, Pondicherry University 38
  39. 39. Product & Product Strategies• The product is defined asa "thing produced bylabor or effort" or the"result of an act or aprocess“• Tangible and Intangible• Tourism Product – Multifaceted– Product design– Product quality– Product features– Product brandingA PRODUCT MARKETINGSTRATEGY– Decide on newrevenue growth and profits– Decide onnew product development.– Decide on price.– Decide on salesforce, distribution, service.– Decide oncustomer psychologicalfactors, not features andbenefits.– Decide onproduct promotion.Rtist@Tourism, Pondicherry University 39
  40. 40. • Product Line– A company/organizationcreates a group ofproducts, which has incommon most of theirmain characteristics.– A good way for a companyto try to expand itsbusiness is by adding toits existing product line.This is because people aremore likely to purchaseproducts from brandswith which they arealready familiar• Product Mix– Product mix-anorganization creates manyproducts and sells them.– the product mix iseverything organizationsells.Rtist@Tourism, Pondicherry University 40
  41. 41. Branding & Rebranding• increase a products perceived value• increase brand franchise and brandequity• started at Procter & Gamble• A good brand name should:– be protected (or at least protectable)under Trademark law.– be easy to pronounce.– be easy to remember.– be easy to recognize.– be easy to know– be easy to translate into all languages inthe markets where the brand will beused.– attract attention.– suggest product benefits or suggest usage(note the tradeoff with strong trademarkprotection.)– suggest the company or product image– distinguish the products positioningrelative to the competition.– be attractive.– stand out among a group of other brands.• Functions of brand– (For consumers) Identification of source ofproduct,– Assignment of responsibility to productmaker,– Risk reducer,– Search cost reducer,– Symbolic device,– Signal of quality,– Speak personality,– Deliver its value qualitatively andquantitatively,– Live up to consumer expecatition.– it speaks itself looks are more important• (For Manufacturers)– Means of identification to simplifyhandling and tracing,– Means of legally protecting uniquefeatures,– Signal of quality level to satisfiedcustomers,– Means of endowing products with uniqueassociations,– Source of competitive advantage,– Source of financial returnsRtist@Tourism, Pondicherry University 41
  42. 42. Packing• defined as the wrapping materialaround a consumer item that servestocontain, identify, describe, protect, display, promote, and otherwise makethe product marketable and keep itclean.• Packaging is the outer wrapping of aproduct.• It is the intended purpose of thepackaging to make a product readilysellable as well as to protect itagainst damage and prevent it fromdeterioration while storing.• Furthermore the packaging is oftenthe most relevant element of atrademark and conduces toadvertising or communication• Functional Requirements– 1. Protection andpreservation– 2. Containment– 3. Communication• Types of packaging– Transport packing– Consumer PackingRtist@Tourism, Pondicherry University 42
  43. 43. PricingRtist@Tourism, Pondicherry University 43
  44. 44. Pricing Strategies• Premium Pricing– used where a substantial competitiveadvantage exists.– Such high prices are charge for luxuries suchas Cunard Cruises, Savoy Hotel rooms, andConcorde flights• Penetration Pricing.– set artificially low in order to gain marketshare.– Once this is achieved, the price is increased• Economy Pricing– no frills low price– cost of marketing and manufacture are keptat a minimum.– Supermarkets often have economy brandsfor soups etc• Price Skimming– Charge a high price because you have asubstantial competitive advantage– However, the advantage is not sustainable– high price tends to attract new competitorsinto the market, and the price inevitably fallsdue to increased supplyApproaches• Psychological Pricing– to respond on an emotional, rather thanrational basis• Product Line Pricing– Where there is a range of product orservices the pricing reflect the benefits ofparts of the range• Optional Product Pricing– Optional extras increase the overall priceof the product or service• Captive Product Pricing– companies will charge a premium pricewhere the consumer is captured• Product Bundle Pricing– combine several products in the samepackage. This also serves to move oldstock• Promotional Pricing– BOGOF (Buy One Get One Free)• Geographical Pricing• Value Pricing– external factors such as recession orincreased competitionRtist@Tourism, Pondicherry University 44
  45. 45. Distribution Channels• Physical distribution (or place) isone of the four elements ofthe marketing mix– defined as a chain ofintermediaries, each passing theproduct down the chain to the nextorganization, before it finally reachesthe consumer or end-user.• Channels– Distributor, who sells to retailers,– Retailer (alsocalled dealer or reseller), who sells toend customers– Advertisements typically used forconsumption goods• Channel decisions– Channel strategy– Gravity & Gravity– Push and Pull strategy– Product (or service)– Cost– Consumer location• Type of marketing channel– Intensive distribution - Where themajority of resellers stock theproduct– Selective distribution - This is thenormal pattern, suitable resellersstock the product.– Exclusive distribution - Only speciallyselected resellers or authorizeddealers, are allowed to sell theproduct.• Channel motivation• Monitoring and managing channelsRtist@Tourism, Pondicherry University 45
  46. 46. Marketing Of Tourism ServicesRtist@Tourism, Pondicherry University 46
  47. 47. Airlines• the first marketing model, calledPESTE - Political, Economic,Social, Technological andEnvironmental• Airline Business and MarketingStrategies - strategic families(from cost leadership todifferentiation)• Product Analysis in AirlineMarketing - The product of anairline is split up in several parts:fleet and schedules, customerservice, controlling productquality and even the air freightproduct• No life cycle concept, daily basis• Pricing and RevenueManagement – triangle ofmarketing, sales, and pricing &revenue management• distributing the product - GlobalDistribution Systems (such asGalileo, Sabre and Amadeus• Brands Management in AirlineMarketing• Relationship marketing -maintaining and strengtheningrelationships with existingcustomers, not just aboutfrequent flyer programs, but alsoabout promises inadvertisements and about thewarm welcome that the existingheavy user, maincustomer, wants.• Airline Selling, Advertising andPromotional Policies - providesand analyses selling and salesmanagement, good airlineadvertising and media relationsRtist@Tourism, Pondicherry University 47
  48. 48. Hotels• Budget• Social Media• The true cost• The hotel sales office• How to use social media for meetings• GDS hotel bookings• Priceline• Hotel panel• Successful hotel sales plan• A revenue driven checklist for function spacemanagementRtist@Tourism, Pondicherry University 48
  49. 49. Travel Agency Marketing• Travel agencies dont needlarge marketing budgets - justdetermination, a creativemind and willingess to workoutside normal hours– Hold an open evening– Make your agency look inviting– Be community-spirited– Use the local press– Form partnerships– Motivate your staff• Tips to Travel Agents– "mine" data base– Increase your sales training andprospecting skills– Be in the know– Be a member of a travelconsortium– have a working marketing plan– today is the first day of yourbusiness– Identify pipers who have theability to bring in new business– customized client promotions– Be creative– Use PR as a tool to get thepositive word out about travelRtist@Tourism, Pondicherry University 49
  50. 50. Marketing Skills for TourismCreativity• make something out of nothing• Create the branding, create thepositioning, find the niche• develop the words, the visuals, theimages that make a brand• the brochure, the website, thepositioning statement• Keeping fresh and current so that Ican think of new ways ofapproaching• industry partnerships and a newsponsorship program• Innovative Product development• 5 Stage process– Saturation– Preparation– Incubation– Illumination– verificationCommunication– Learn 3 languages – mothertongue, national & international– Polite speech, Good body language– Good personality– Courtesy calls– Letters– Fax– Email messages– Must allow visitor to speak– If language is barrier then showstandard pictures or symbols– Neat maintenance of traveldocuments– Advertisement in target customer’slanguageRtist@Tourism, Pondicherry University 50
  51. 51. • Self Motivation– Self motivated to work anddeliver concrete results– Motivation and morale areclosely related– If morale is highmotivation will be high togive sterling performance– Motivation factors are –backgrounds, education, family status, economiccondition– Person to persontreatment would developthe organization• Team building– Socio cultural norms, if the teamchanges this norms and valueseffect is immediate and everlasting– Tasks are completed faster thanan individual does - Rome wasnot built in a day, Rome was notbuilt by on neither– Team work leads to synergy– Team work gives statusrecognition, reverence to all– Single person cannot deliverresults on his own– Groups become teams– Common working approach,performance goals– Hard work, discipline, dedicationto purpose , willingness to adoptnew technologies• 1. Thank a colleague• 2. Compliment a colleague• 3. Invite a colleagueRtist@Tourism, Pondicherry University 51
  52. 52. Personality development• An individuals personality is anaggregate conglomeration ofdecisions weve madethroughout our lives (Bradshaw)• There are inherent natural,genetic, and environmentalfactors that contribute to thedevelopment of our personality• "personality also colors ourvalues, beliefs, and expectations... Hereditary factors thatcontribute to personalitydevelopment do so as a result ofinteractions with the particularsocial environment in whichpeople live.“• Freud believed that two basicdrives—sex and aggression—motivate all our thoughts andbehaviours• Freud conceived the mind asonly having a fixed amount ofpsychic energy . The outcomeof the interaction between theid, ego and thesuperego, determines ouradult personality.• The id allows us to get ourbasic needs met• The egos job is to meet theneeds of the id• superego inhibits thebiological instincts of the id(resulting in a high level ofguilt)Rtist@Tourism, Pondicherry University 52
  53. 53. Thank You…Rtist@Tourism, Pondicherry University 53