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Tourism Marketing

Based on the Dusit Thani College lectures on Principles of Tourism II for CITHM of the Lyceum of the University Cavite Campus.

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Tourism Marketing

  1. 1. TOURISM MARKETING (updated March 2015) Sourced from the Lesson Plan for Principles of Tourism II
  2. 2. OBJECTIVES Explain the basic concepts of marketing. Identify the special dimensions of marketing different forms of tourism Differentiate between marketing and selling/promotion. Discuss the basic marketing techniques.
  3. 3. UNIT TOPICS • What is Marketing? • The Evolution of Marketing , Different Definitions and Concepts of Marketing • The Differences between Marketing and Selling • Different Business Philosophies • Marketing Orientation • Tourism as a Service Product, the concept of value within tourism • The characteristics of the service product • Other aspects of tourism as a service product • Tourism Product and Risk • The Adoption of a Marketing Operation • Criticism of the Marketing Operation Concept • A Societal Marketing Approach
  4. 4. DEFINITION OF MARKETING “ Marketing involves the interaction and inter- relationships among consumers and producers of goods and services, through which ideas, products and services and values are created and exchanged for the mutual benefit of both groups.” - Weaver D. and Lawton L (2010) Tourism Management. 4th ed. John Wiley & Sons, Australia.
  5. 5. Simple Marketing System
  6. 6. THE EVOLUTION OF MARKETING •Marketing has evolved against a background of economic and business pressures •The pressures have required an increased focus on the adoption of a series of managerial measures based upon satisfying consumer needs. •The key to the importance of marketing within tourism has been he level of economics growth in past years which has led to subsequent improvements in living standards, an enlargement of the population and increases in discretionary time. •Modern tourism marketing has emerged as a business reaction to changes in the social and economic environment, with the most successful companies or tourist bodies having provided the right organizational structure and product offering for the consumer or visitor.
  7. 7. The history of marketing and modern business practice have developed in three distinct stages: 1.The production era, based on the notion that if products were priced cheaply, they would sell regardless of consumer preferences. This was deemed an inward, product-oriented focus with little concern for consumers. 2.The sales era, were selling was the prime focus regardless of the market’s willingness to accept the product. 3.The marketing era, replacing the preceding approaches: businesses now produced products they could sell which were tailored to consumer needs to satisfy the purchaser, effectively making the organization more outward looking.
  8. 8. The important factors that have ushered in marketing during the past half-century are as follows: •The increases demand were at a lower rate than the rises in productivity. •The consumer was becoming more affluent and therefore it was possible to develop products that could be sold using a range of nonprice attributes. •The distance between the tourism product provider an tourist has been continually increasing. •New tourism and hospitality products were being launched which required more emphasis on marketing. •As society developed, the mass market splintered into a number of sub-market while at the same time the ass market became increasingly difficult to reach.
  9. 9. Different definitions and Concepts of marketing The concept of value within tourism •Companies have to find ways to ensure they optimize the delivery of value. •The value of tourism incorporates a number of different aspects which include the perception of price, quality and image as well as the economic and social aspects of the consumer.
  10. 10. A SYSTEM FOR DELIVERING VALUE Approaches Uncovering value needs Developing value Delivering value Gathering/ Analytical Data/feedback of company representatives surveys, etc. Operations/customer interfaces and touch points Logistics/product quality, service Organisational Interpretation of customer requirements and resultant expected organisational competencies Training/motivation of staff and working with suppliers who also add quality Improved attitudes and behaviour of employee interface
  11. 11. Product perceived value is based upon: •Actual price asked and relativity to prices for the same or similar product offered elsewhere. •Perceived quality, service an image associated with the brand/product. •Convenience of purchasing product method or channel its congruence to the needs of the customer. •Consumer difficulty in ability to assess the benefit/relative price of the product. •Experience associated with the purchase or consumption process.
  12. 12. The Differences between Marketing and Selling “Selling and marketing are antithetical rather than synonymous or even complementary . There will always, one can assume, be a need for some selling, but the aim of marketing is to make selling superfluous. Ducker (1973:64)
  13. 13. The sales and marketing concepts compared •The sales concept focuses on products and uses selling and promotion to achieve profits through sales volume. •The marketing concept focuses on customer needs and utilizes integrated marketing to achieve profits through customer satisfaction. Sales Concept Focus Selling/Product Means Promotion End Profit through sales volume Marketing Concept Customer needs Integrated Marketing to specific segments Profits through Customer satisfaction
  14. 14. FOUR POSSIBLE BUSINESS PHILOSOPHIES 1.Product- orientated company 2.System/technology-orientated company Product Creation Promotion Sales Technology Product Formulation Product creation Promotion Sales
  15. 15. 3.Market-orientated company 4.Integrated company Marketing Research Product Formulation Product Creation Promotion Sales Marketing Research Product formulation a company-wide marketing principles incorporated Product Creation Promotion Sales
  16. 16. MARKETING INFORMATION 1. It is a management orientation or philosophy. 2. It encourages exchange to take place. 3. It involves long- and short-term planning. 4. It requires efficient, cost- effective methods. 5. It requires the development of an integrated company environment.
  17. 17. The difference between transaction and relationship marketing Transaction Marketing Relationship Marketing Short-term orientation sales as end result Long term orientation, the sale is the only the beginning. “Me” orientated ‘We’ orientated Focus on achieving a sale Focus on retention and repeat sales Emphasis on persuasion to buy Stress on creating positive relationships Need to win , manipulation Providing trust an service Stress of conflict of achieving a transaction Partnership and cooperation to minimize defection and provide longer-term relationship(with customers or strategic alliances, joint ventures, vendor, partnering, etc.) Anonymous customer won by conquest in a carefully planned event Individual profile of customers known so that a continuing process can arrange.
  18. 18. TOURISM PRODUCTS Service Good Intagibility More Intangible Perishability Often storable Inseparability Standardized Intangibility: it cannot be easily evaluated or demonstrated in advance of its purchase Perishability: service products such as tourism, unlike goods, cannot be stored for a sale on a future occasion. Inseparability: both service provider and customer are present when the service function occurs.
  19. 19. OTHER ASPECTS OF TOURISM AS A SERVICE PRODUCT 1. Shorter aspects of tourism as a service delivery. 2. More personal. 3. Growing use of self-service. 4. Greater significance on managing evidence. 5. Complementarity is greater. 6. Easier copying of services.
  20. 20. TOURISM PRODUCT & RISK  A major aspect of consumer behavior, linked to the purchase of tourism products, is the notion of risk and consumer’s judgement about the likelihood of a problem occurring.  Tourism products often involve a complex decision making process because the purchase is relatively high risk and high involvement.  The concept is also related to individual feelings of uncertainty based upon the subjective possibility of any occurrence of the ff. types of risk.
  21. 21. The adoption of tourism marketing Tourism marketing involves a number of special characteristics: 1. Marketing is a philosophy with the overriding value that the decision-making process of any organization has to be led by the consumers needs, the marketplace and the company's’ and resources. 2. Successful marketing requires a special organization structure that believes in integrating the principles of consumer orientation throughout the organization 3. Marketing requires innovative methods of thinking and planning so that new ideas are generated to take advantage of opportunities or to improve existing methods of marketing.
  22. 22. THE ADOPTION OF A MARKETING OPERATION Tourism marketing involves a number of special characteristics Marketing is a philosophy with the overriding value that the decision- making process of any organization has to be led by the consumer’s needs, the marketplace and the company’s assets and resources. Successful marketing requires a special organization structure that believes in integrating the principles of consumer orientation throughout the organization. marketing requires innovative methods of thinking and planning so that new ideas are generated to take advantage of opportunities or to improve existing methods of marketing
  23. 23. CRITICISMS OF THE MARKETING CONCEPT Environmental of the marketing impact Overemphasis on profitable products Invasion of privacy Waste of resources on tourism market
  24. 24. A SOCIETAL MARKETING APPROACH It is important to recognize that consumers are now better educated and are competent to select products that are not creating undue problems to society. If organizations or their products create problems, thee are articulate pressure groups and government legislation available for consumer and environmental protection. Three basic issues to consider: Consumerism Corporate social responsibility Ethics
  25. 25. SOME POINTS RELEVANT TO SOCIETAL MARKETING APPROACH Good business managers should be socially responsible to all stakeholders, related to the company and tourism offer so as to minimize social costs. Managers should be honest in claims an promotions, not be deceptive or agree to misleading advertising. The products offered should not cause harm or unacceptable tourism impact and managers should communicate any risks which are known to be associated with any product Marketers should undertake not to adopt sales techniques under the guise of its being research