Tourism Marketing

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Tourism marketing

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Tourism Marketing

  1. 1. MARKETING FOR TOURISM 3 CHAPTER 4 THE TOURIST MARKET
  2. 2. Introduction <ul><li>Market defined group of consumers for a particular product or range of products. </li></ul><ul><li>By group we mean any group of people identified by a variable that distinguish one group from another. </li></ul><ul><li>Requirements to define a Market </li></ul><ul><li>Measurable : To define the overall number of the market. </li></ul><ul><li>Reachable : Marketers must be able to communicate with the market through magazines </li></ul><ul><li>Viable : The market size is sufficient-there is sufficient number of them to make it worthwhile for an organisation to adopt a strategy of niche marketing directed at them. </li></ul>
  3. 3. Understanding Needs and Wants <ul><li>Difference between needs and wants </li></ul><ul><li>Needs </li></ul><ul><li>Physiological : basic for survival , eat, drink, sleep, warm and reproduce </li></ul><ul><li>Psychological : for human well-being, receiving affection, status, respect </li></ul><ul><li>Maslow’s Hierarchy of Needs: categorised needs </li></ul><ul><li>(Physiological, Safety, Social, Ego and Self-Actualisation) </li></ul><ul><li>Wants </li></ul><ul><li>Needs are translated into wants for a certain product that satisfies the need </li></ul><ul><li>Attitudes and beliefs </li></ul><ul><li>Segmenting Markets by Needs and Wants </li></ul><ul><li>Variables can distinguish one market from another. </li></ul><ul><li>Market segmentation process of dividing markets by their variables by </li></ul><ul><li>Market segmentation: </li></ul><ul><li>Geographical </li></ul><ul><li>Demographical </li></ul><ul><li>Psychographic </li></ul><ul><li>Behavioural </li></ul>
  4. 4. <ul><li>1. Geographic </li></ul><ul><li>Divining market where they live </li></ul><ul><li>Divide by regions, district or towns. </li></ul><ul><li>Cultural differences in geographical areas </li></ul><ul><li>2. Demographic </li></ul><ul><li>Age, race, gender, family composition and size, life-cycle, income, occupation </li></ul><ul><li>,education, and ethnic background. </li></ul><ul><li>Marketers must track changes taking place </li></ul><ul><li>Computer mapping: marketers can develop databases selecting those elements of </li></ul><ul><li>the population mostly likely to favour the company’s products and to target these </li></ul><ul><li>by marketing outlays. </li></ul><ul><li>Sub-cultures with their different racial or religious characteristics </li></ul><ul><li>3. Psychographic </li></ul><ul><li>Motivation of individuals within the demographic groups </li></ul>Understanding Needs and Wants (continued)
  5. 5. Understanding Needs and Wants (continued) <ul><li>Nationality : countries develop their own unique cultures, values which is learned </li></ul><ul><li>Sub-cultural : regional patterns of behaviour within a country </li></ul><ul><li>Social Class : stratify society according to occupation </li></ul><ul><li>Peer Groups </li></ul><ul><li>Group with which an individual is mostly closely associated </li></ul><ul><li>Keeping up with the Jones’ </li></ul><ul><li>Reference Groups </li></ul><ul><li>Group admired to emulate their lifestyle </li></ul><ul><li>Trickle-down effect </li></ul><ul><li>Social class </li></ul><ul><li>4. Behavioural </li></ul><ul><li>Consumers act and react as individuals </li></ul><ul><li>Three Stages of Behaviour: </li></ul><ul><li>Initial extensive problem-solving stage </li></ul><ul><li>Stage of more limited problem solving </li></ul><ul><li>Routinised behaviour. </li></ul>
  6. 6. <ul><li>Key Issues in Organisational Marketing: </li></ul><ul><li>Buyer is seldom the consumer </li></ul><ul><li>Buying tends to be in large quantities </li></ul><ul><li>Prices are negotiable </li></ul><ul><li>Buyers make huge demands on quality consistency,supply, reliability and personal service. </li></ul><ul><li>Seldom intermediaries in the buying process. </li></ul><ul><li>Markets are far less diffused than are mass consumer markets. </li></ul><ul><li>Branding is relatively unimportant in the purchasing decision. </li></ul><ul><li>Emotional Factors play a role: </li></ul><ul><li>Prestige of dealing with an established firm with international reputation </li></ul><ul><li>Cultivate personal contacts. </li></ul><ul><li>Networking is important. </li></ul>Organisational Marketing (continued)
  7. 7. Relationship Marketing <ul><li>Relationship Marketing creating, maintaining and enhancing strong relationships </li></ul><ul><li>with customers and other stakeholders </li></ul><ul><li>Establish close ongoing links with individuals and businesses that company is </li></ul><ul><li>heavily involved with. </li></ul><ul><li>Stakeholder management (shareholders, government) </li></ul><ul><li>Better relations with employees through communication-internal marketing </li></ul><ul><li>Customer Relationship Marketing (CRM) technique or set of techniques designed </li></ul><ul><li>to help build up close and favourable contacts with an organisation’s key </li></ul><ul><li>customers whether consumers or business over a long time period. </li></ul><ul><li>CRM frequent flyer programs, SAA Voyager </li></ul><ul><li>ICT offers tools to aid in CRM </li></ul><ul><li>Databases-website marketing, call centres and interactive digital television </li></ul>
  8. 8. Applying the Theory in Marketing Tourism <ul><li>Very few cases that product of organisation is attractive to all consumers </li></ul><ul><li>Short-gun approach : make sense to target products to consumers that want </li></ul><ul><li>product or see value </li></ul><ul><li>Rifle-approach : targeting all customers, any customers, ‘is there a customer out </li></ul><ul><li>there’ </li></ul><ul><li>Market segmentation determine the market(s) it will serve and develop products to serve the needs of those markets </li></ul>
  9. 9. Segmentation in Travel and Tourism Marketing <ul><li>Markets can be segmented in several ways: </li></ul><ul><li>Demographic </li></ul><ul><li>Personality </li></ul><ul><li>Psychocentric: packaged structured tour </li></ul><ul><li>Allocentric: outgoing, adventerous,new things </li></ul><ul><li>Benefits </li></ul><ul><li>Benefits offered to customer </li></ul><ul><li>E.g. space travel, low cost, best quality, unique location </li></ul>
  10. 10. Marketing Mix <ul><li>Marketing Mix/ 4p’s:Core of marketing planning (4p’s) </li></ul><ul><li>Marketing Mix/4p’s: Product, Place, Promotion and Price </li></ul><ul><li>Marketing Mix/ 4p’s: are tools </li></ul><ul><li>Marketing Mix ‘’set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market’’. </li></ul><ul><li>Product: </li></ul><ul><li>It is what will be consumed with both tangible (physical) and intangible (service) elements </li></ul><ul><li>Price: </li></ul><ul><li>Amount of money or the cost of the product </li></ul><ul><li>Price is the figure at which the product is made available to customers </li></ul><ul><li>Place: </li></ul><ul><li>Place is the point-of-sale </li></ul><ul><li>Where the product can be purchased from </li></ul><ul><li>Promotion: </li></ul><ul><li>Techniques to publicise the product, prices to customers. </li></ul><ul><li>Promotion includes Advertising, Public Relations, Sales Promotion, Personal Selling (direct selling) </li></ul><ul><li>People, Process, Physical Evidence, Productivity and Quality </li></ul>

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