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TOURISM AND HOSPITALITY MARKETING
PRESENTED BY:
MD. SHAIFULLAR RABBI
 Lecturer- BTHM, Daffodil Institute of IT
 Assessor at Bangladesh Technical
Education Board (Ticketing and
Reservation)
 Guest Lecturer – BTHM,IBAIS University
 Guest Trainer at ATAB Tourism Training
Institute
 Guest Trainer at Sheikh Hasina National
Institute of Youth Development
 Former Manager at Mamun Air Service
 Former-Sales & Marketing Executive at City
Air International
 MBA & BBA-Major in Tourism &
Hospitality Management, University of
Dhaka.
 Certified NTVQF Level -4/Assessor
Part( Ticketing and Reservation)
 Completed Diploma Course in Travel
Agency & Tour Operation Management
 Certified NTVQF Level 2 Course
entitled Ticketing & Reservation
 Certified NTVQF Level 1 Course
entitled Tour Guiding
Professional Experiences
Educational Qualifications
WHAT IS TOURISM?
The Definition of Tourism varies source by source, person
by person. There is no consensus concerning the
definition of tourism. Nearly every each institution
defines "Tourism" differently. But When it comes to
explain it with the basic terms, we can sum it up as
follows; "Tourism is a collection of activities, services and
industries which deliver a travel experience comprising
transportation, accommodation, eating and drinking
establishments, retail shops, entertainment businesses
and other hospitality services provided for individuals or
groups traveling away from home" "The sum of the
phenomena and relationships arising from the interaction
of tourists, business suppliers, host governments and host
communities in the process of attracting and hosting
these tourists and other visitors"-Macintosh and
Goeldner
UNWTO DEFINITION OF TOURISM
In order to prevent the disaccords to define "Tourism", UNWTO
defined it as indicated below; "Tourism comprises the activities of
persons traveling to and staying in places outside their usual
environment for not more than one consecutive year for leisure,
business and other purposes.“
❑ Three criteria are used simultaneously in order to characterize a trip
as belonging to tourism.The displacement must be such that;
 It involves a displacement outside the usual environment: this
term is of utmost importance and will be discussed later on;
 Type of purpose: the travel must occur for any purpose different
from being remunerated from within the place visited: the previous
limits, where tourism was restricted to recreation and visiting family
and friends are now expanded to include a vast array of purposes;
 Duration: only a maximal duration is mentioned, not a minimal.
Tourism displacement can be with or without an overnight stay. We
shall discuss the particularity of in transit visits, from a conceptual
and statistical point of view.
WHAT IS HOSPITALITY?
 Hospitality is about people welcoming other people into their
homes or other places where they work or spend their time.
People who welcome visitors are called hosts. The people they
welcome are called guests.
 The word hospitality comes from the Latin hopes, which came
from the word hostess, which originally meant "to have power."
 Hospitality is all about the art of entertaining or receiving
guests. We talk about "offering hospitality". There are many
different ideas about how to offer hospitality according to the
various cultures in the world. In the past, many societies taught
that it was always right to offer hospitality to strangers who
came to their door in need of food or shelter. This may seem a
strange idea to many of us today, but it was an important way to
survive in many societies, especially in lands where people
travelled long distances, often far away from large towns.
 The words hospital, hospice, and hostel also come from the
word "hospitality". They are all about giving personal care to
people who are away from their homes.
TYPES OF TOURISM PRODUCTS
 Tourism Oriented Products (TOP)
 Residents Oriented Products (ROP)
 Intangible Products of Tourism
TOURISM ORIENTED PRODUCTS (TOP)
These are the products and services created primarily for the
tourists and also for the locals. These products need a great
share of investments in private sector. A few of them are −
 Accommodations; for example,Taj, ITC Hotels.
 Transportation; For example, Owning taxis, luxury buses, and
boats.
 Retail Travel Agents
 Tour Operators
 Shopping Centers such as malls
 Cinema Theatres such as PVR
 Restaurants for Food and Beverages
 Tourism Information Centers
 Souvenirs Outlets
 Museums,Temples, Gardens, and Theme parks
RESIDENTS ORIENTED PRODUCTS (ROP)
Here, the products and services are created mainly for
the local residents staying at a particular tourist
destination. This category requires investment in public
sectors more. Some of them are -
 Hospitals
 Public Parks
 Banks and ATMs
 Petrol Pumps
 Postal Service
INTANGIBLE PRODUCTS OF TOURISM
 Bookings of accommodations, theatres, and at various
sites.
 Tourists’ experience by visiting a destination, eating at
a restaurant, or performing an activity.
 Tourists’ memory which is created by storing the
details of events and experience on the tour. The high
degree of satisfaction or dissatisfaction is often stored as
a long term memory.
 Transportation of tourists and their luggage from one
place to another.
WHAT IS MARKETING?
 Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at
large. (Approved 2017)
 Marketing is the study
and management of exchange relationships. It is the business
process of creating relationships with and satisfying customers.
Because marketing is used to attract customers, it is one of the
primary components of business management and commerce.
Marketers can direct product to other businesses (B2B
marketing) or directly to consumers (B2C marketing).
 Regardless of who is being marketed to, several factors,
including the perspective the marketers will use. These market
orientations determine how marketers will approach the
planning stage of marketing. This leads into the marketing
mix, which outlines the specifics of the product and how it will
be sold. This can in turn, be affected by the environment
surrounding the product , the results of marketing research and
market research and the characteristics of the product's target
market.
DEFINITION OF BRAND
 A brand is a name, term, design, symbol or any
other feature that identifies one seller’s good or
service as distinct from those of other sellers.
 ISO brand standards add that a brand “is an
intangible asset” that is intended to create
“distinctive images and associations in the minds
of stakeholders, thereby generating economic
benefit/values.”
TYPES OF MARKETING
 Influencer Marketing
 Relationship Marketing
 Viral Marketing
 Green Marketing
 Keyword Marketing
 Guerilla Marketing
INFLUENCER MARKETING
 According to the Association of National
Advertisers (ANA), influencer marketing focuses
on leveraging individuals who have influence
over potential buyers and orienting marketing
activities around these individuals to drive a
brand message to the larger market.
 In influencer marketing, rather than marketing
directly to a large group of consumers, a brand
inspires or compensates influencers (which can
include celebrities, content creators, customer
advocates, and employees) to get the word out
on their behalf.
RELATIONSHIP MARKETING
 According to the Association of National Advertisers
(ANA), relationship marketing refers to strategies and
tactics for segmenting consumers to build loyalty.
Relationship marketing leverages database
marketing, behavioral advertising and analytics to target
consumers precisely and create loyalty programs.
VIRAL MARKETING
 Viral marketing is a marketing phenomenon that
facilitates and encourages people to pass along
a marketing message. Nicknamed “viral”
because the number of people exposed to a
message mimics the process of passing a virus
or disease from one person to another.
GREEN MARKETING
 Green marketing refers to the development
and marketing of products that are presumed to
be environmentally safe (i.e., designed to
minimize negative effects on the physical
environment or to improve its quality). This term
may also be used to describe efforts to produce,
promote, package, and reclaim products in a
manner that is sensitive or responsive to
ecological concerns.
KEYWORD MARKETING
 Keyword marketing involves placing
a marketing message in front of users based on the
specific keywords and phrases they are using to search.
A key advantage of this method is that it gives marketers
the ability to reach the right people with the right
message at the right time. For many marketers, keyword
marketing results in the placement of an ad when certain
keywords are entered. Note that in SEO, this term refers to
achieving top placement in the search results themselves.
GUERILLA MARKETING
 Guerilla marketing describes an unconventional and
creative marketing strategy intended to get maximum
results from minimal resources.
4 P’S OF MARKETING
❑ Product: A product is defined as a bundle of attributes
(features, functions, benefits, and uses) capable of
exchange or use; usually a mix of tangible and intangible
forms. Thus a product may be an idea, a physical entity (a
good), or a service, or any combination of the three. It
exists for the purpose of exchange in the satisfaction of
individual and organizational objectives. While the term
“products and services” is occasionally used, product is a
term that encompasses both goods and services.
❑ Price: Price is the formal ratio that indicates the quantity
of money, goods, or services needed to acquire a given
quantity of goods or services. It is the amount
a customer must pay to acquire a product.
4 P’S OF MARKETING
❑ Place (Or Distribution): Distribution refers to
the act of marketing and carrying products
to consumers. It is also used to describe the
extent of market coverage for a given product. In
the 4Ps, distribution is represented
by place or placement.
❑ Promotion: According to the Association of
National Advertisers (ANA), promotion
marketing includes tactics that encourage short-
term purchase, influence trail and quantity of
purchase, and are very measurable in volume,
share and profit.
WHAT IS TOURISM MARKETING?
 Just as the travel industry and behavior of travelers have
changed, so has the way we market tourism products and
services. And this is where tourism marketing comes into
play. In a nutshell, Tourism Marketing is a marketing strategy
that uses specific marketing plan and techniques to promote
touristic products and services such as destinations, hotels and
transport services, etc.
 When we talk of Tourism marketing, it makes sense to focus on
digital marketing, as with tourism industry, more than any other
sector, online communication becomes more important due to
the specifics of the consumption process: customers are
planning their trips being a great distance away from the
service provider.
 Tourism marketing does include plenty of techniques that are
similar to traditional digital marketing, but it has its specifics.
One of the biggest differences is the buyer's journey, or, in
case of Tourism Marketing, the traveler's journey.
TOURISM AND HOSPITALITY MARKETING
 Tourism and Hospitality marketing is how segments of
the tourism industry such as transportation, hotels, restaurants,
resorts, amusement parks and other entertainment and
accommodations businesses promote their products or services.
Tourism and Hospitality are service industry.
 In the hotel industry, marketing and sales are often thought to be the
same, and no wonder: The sales department is one of the most visible
in the hotel. Sales managers provide prospective clients with tours
and entertain them in the hotel’s food and beverage outlets. Thus the
sales function is highly visible, whereas most of the non promotional
areas of the marketing function take place behind closed doors. In the
restaurant industry, many people confuse marketing with advertising
and sales promotion. It is not uncommon to hear restaurant managers
say that they “do not believe in marketing” when they actually mean
that they are disappointed with the impact of their advertising. In
reality, selling and advertising are only two marketing functions and
often not the most important. Advertising and sales are components of
the promotional element of the marketing mix.
THE KEY CONCEPTS FOR TOURISM &
HOSPITALITY MARKETING
There are five distinctive marketing concept types or
approaches to achieving effective marketing. Notably, not
all these marketing concept types work for all industries,
because they differ in function. Every marketing concept
was created depending on the need of the market. As
markets changed, so did the concepts.
 The Production Concept
 The product concept
 The selling concept
 The marketing concept
 The Social Marketing Concept
THE PRODUCTION CONCEPT
 Companies that use the production concept have the belief that
customers primarily want products that are affordable and
accessible. The production concept is based on the approach that a
company can increase supply as it decreases its costs. Moreover, the
production concept highlights that a business can lower costs via
mass production. A company oriented towards production believes
in economies of scale (decreased production cost per unit), wherein
mass production can decrease cost and maximize profits. As a whole,
the production concept is oriented towards operations.
 A working example of the production concept is a company that
produces their goods overseas. Producing retail goods abroad
lowers costs and the resulting savings can be passed on to the
consumer. These lower prices could be a good incentive to attract
new consumers.
 However, the company may experience a decline in quality and
gradually a decline in sales, if the process is not kept to a standard.
Businesses oriented towards production are required to avoid
production efficiency procedures that affect their product’s quality
and design. By compromising product quality and design simply for
production would probably lower the desirability of a product for
customers.
THE PRODUCT CONCEPT
 Companies that focus on the product concept believe that
the most significant priorities for a customer are quality
and functional characteristics of a product. What this
indicates is that a customer looks for innovative
alternatives and always searches for the best of what is
currently available in the market. In addition, within this
concept, it is assumed that consumers stay loyal if they
receive more product options and benefits.
 Companies who keep this philosophy intact direct their
marketing efforts in raising their product quality. With this
in mind, it is not surprising that many companies in
technology use the product concept. These companies
always update and release their new products. It is then
important for these technology companies to create
strong decisions on how often they should release their
new products.
THE SELLING CONCEPT
 The selling concept involves companies that are sales
oriented. What this means is that they can make a product
and then sell it to their target market without
consideration of their consumers needs or wants. The
selling concept highlights that customers would buy a
company’s products only if the company were to sell
these products aggressively.
 This concept became very popular in the early 1930s.The
selling concept pays little attention to whether or not a
product was truly needed by consumers. The objective
was to beat the competition merely in sales, with few
regarding the satisfaction of a consumer. Nowadays, this
is called “hard selling,” wherein goods are not bought –
they are sold. This concept is based on the belief that
consumers may be attracted; hence, companies can focus
their efforts in attracting and educating consumers.
THE MARKETING CONCEPT
A company that believes in the marketing
concept places the consumer at the center of the
organization. All activities are geared towards the
consumer. A business, oriented towards the market, aims
to understand the needs and wants of a customer and
executes the marketing strategy according to market
research beginning from product conception to sales. As
sales begin, further research can be implemented to
figure out what customers think about a product and
whether improvements are needed. While markets
change continuously, product development and market
research is always ongoing for a company that
concentrates on the market.
THE SOCIAL MARKETING
 Societal marketing is a marketing concept that holds that
a company should make marketing decisions not only by
considering consumers' wants, the company's
requirements, but also society's long-term interests.
 The societal marketing concept holds that the
organization's task is to determine the needs, wants, and
interests of a target market and to deliver the desired
satisfactions more effectively and efficiently
than competitors in a way that preserves or enhances the
well being of both the individual consumer and society
in general. Therefore, marketers must endeavor to satisfy
the needs and wants of their target markets in ways that
preserve and enhance the well-being of consumers and
society as a whole. It is closely linked with the principles
of corporate social responsibility and of sustainable
development.
PLANNING FOR SERVICES MARKETING
To ensure effective services marketing, tourism marketers
need to be strategic in their planning process. Using
a tourism marketing system requires carefully
evaluating multiple alternatives, choosing the right
activities for specific markets, anticipating challenges,
adapting to these challenges, and measuring success
(Morrison, 2010). Tourism marketers can choose to follow
a strategic management process called the PRICE
concept, where they:
 P: plan (where are we now?)
 R: research (where would we like to be?)
 I: implement (how do we get there?)
 C: control (how do we make sure we get there?)
 E: evaluate (how do we know if we got there?)
THREE TYPES OF MARKETING
❑ In traditional marketing, a business broadcasts
messaging directly to the consumer. In contrast, in
services marketing, employees play an integral
component. The communications between the three
groups can be summarized as follows (Morrison, 2010):
 External marketing: promotional efforts aimed at
potential customers and guests (creating a promise
between the organization and the guest)
 Internal marketing: training, culture, and internal
communications (enabling employees to deliver on the
promise)
 Interactive marketing: direct exchanges between
employees and guests (delivering the promise)
8 PS OF SERVICES MARKETING
 Product: the range of product and service mix offered to
customers
 Place: how the product will be made available to consumers in
the market, selection of distribution channels, and partners
 Promotion: specific combination of marketing techniques
(advertising, personal sales, public relations, etc.)
 Pricing: part of a comprehensive revenue management and
pricing plan
 People: developing human resources plans and strategies to
support positive interactions between hosts and guests
 Programming: customer-oriented activities (special events,
festivals, or special activities) designed to increase customer
spending or length of stay, or to add to the appeal of packages
 Partnership: also known as cooperative marketing, increasing
the reach and impact of marketing efforts
 Physical evidence: ways in which businesses can
demonstrate their marketing claims and customers can
document their experience such as stories, reviews, blog
posts, or in-location signage and components
SERVICE CHARACTERISTICS OF
HOSPITALITY AND TOURISM MARKETING
The challenges associated with marketing a service-based
business are quite different from the challenges associated
with marketing a product-based business. Service businesses
have unique characteristics that should be explored and
understood when developing a marketing plan and
competitive strategy. The four key characteristics of service
businesses are: Intangibility, Inseparability, Perish ability, and
Variability. Let’s take a closer look at each of these qualities so
you can apply them to your service business. I will also
provide some tips for dealing with the challenges inherent in
each characteristic.
 1) Intangibility
 2) Inseparability
 3) Perish ability
 4) Variability
1) INTANGIBILITY
 When you buy a car, you can see it, feel it, and even test it
prior to purchase. In other words, products have tangible
qualities that provide information to consumers so they can
easily compare one product to another. Services, on the other
hand, are intangible. Most services cannot be experienced or
consumed until the purchase is made. Customers can easily
end up feeling like they have to make a purchasing decision
without adequate information.
 What is the answer to this challenge? Communicate,
communicate, and communicate. Communication can come
from a variety of sources. The use of customer testimonials and
referrals is an excellent way to reduce the level of intangibility
for your service. Additionally, you can increase customers’
comfort level by explaining your service in as much detail as
possible. If you provide your services at one location (e.g. a
doggy daycare) you might consider allowing customer
preview visits. Here is a tip: a well-designed brochure or
website can provide information to customers before they talk
to you, improving your overall efficiency and increasing your
chances of securing new business.
2) INSEPARABILITY
 To continue using the automobile analogy, cars are
produced at one location, sold at another, and used at yet
another location. Services are unique because they are
usually provided and consumed at the same time in the
same location (e.g. a haircut or car tune-up). Because of
the characteristic of inseparability, customers have strong
expectations about how a service will be provided, which
can lead to disappointment if their expectations are not
met.
 A solid customer service process is the key to managing
this challenge effectively. How do you ensure customer
satisfaction? How do you deal with unhappy customers? If
you don’t know the level of your customers’ satisfaction
with your service, ask them!
3) PERISH ABILITY
 If a car does not sell today, it can be stored and sold the
following day or at some other time in the future. Services, on
the other hand, are often perishable, meaning that unused
capacity cannot be stored for future use or sale. For example, a
restaurant might be full one night and half empty the next. If
the restaurant runs with an inflexible staffing model, expenses
are the same each night. However, the revenue picture is quite
different, which impacts profits. The same is true for Mt.
Bachelor – every empty seat on the chairlift is lost revenue.
 This challenge can be overcome by carefully managing supply
and demand. A restaurant might operate with fewer staff
during the week and hire additional staff to cover weekends
when demand is higher. This strategy will allow the restaurant
to provide the same level of customer service with varying
customer demand—and improve productivity. Does your
business have peak periods? What can you do to control
supply and demand? Tip: Use pricing strategies and
promotions to stimulate demand for your service.
4)VARIABILITY
 Once you have decided to buy a Honda Accord, you know that
there will be no variation in the quality of the Accord from one
Honda dealer to another. Manufactured goods tend to have
automated processes and quality assurance procedures that
result in a consistent product. However, the quality of a service
can vary by many factors, including who provides it, where it is
provided, when it is provided, and how it is provided. The more
your business relies on humans to provide services (instead of
automation), the more susceptible you are to variability.
 How can you manage this challenge? Establishing standard
procedures (or checklists) can ensure consistent service
delivery. If you have employees, training is essential. Can
technology improve an aspect of your business? One obvious
example of technology’s impact is illustrated by ATMs
reducing bank teller service variability for customers. Don’t
forget the “little things” like invoicing and newsletters. Any
time you have a “customer touch” you have an opportunity to
demonstrate consistency and professionalism, which will
translate into your customer’s perception that your service is
consistent in quality.
THE SERVICE PROFIT CHAIN
The Service Profit Chain shows that a company’s profitability and
growth are a result of customer and employee satisfaction. The
model consists of sequential links that lead to success. Each link
consists of so-called KPIs; Key Performance Indicators. In other
words, these are crucial performance indicators; variables that are
used to analyze the performance of a company, brand or product.
The success of an organization is measured with KPIs. These links
can be compared to steps that need to be taken. The goal of these
steps is to make a company successful. Each step can, as it were, be
increased or decreased. A correct ‘volume setting’ will result in
profit and growth for a company. It involves the following seven
steps:
 Step 1 – Internal: service quality
 Step 2 – Employee satisfaction
 Step 3 – Loyal and productive employees
 Step 4 – Value proposition for the customer
 Step 5 – Customer satisfaction
 Step 6 – Customer loyalty
 Step 7 – Profit and growth
STEP 1 – INTERNAL: SERVICE QUALITY
The first few steps of the Service Profit Chain involve
employees. An organization can only be successful if it invests
in its own employees. This means that a safe work environment
should be created, employees should be involved in the
decision making process and should work together in a
pleasant atmosphere. A company can achieve this by investing
in their employees, to support, train and invest in the
development of its employees. All to an extent that hiring,
remuneration and development policy are important
components of this first step. New employees with the right
attitude, can contribute to the internal service quality. By
rewarding employees, they are motivated to be actively
engaged in the organization. With training, education and
course options, employees are in a better position to be fully
committed to a company. The internal service quality will
subsequently lead to employee satisfaction.
STEP 2 – EMPLOYEE SATISFACTION
One step cannot be achieved without the other. To satisfy
employees and keep them satisfied, the same amount of
attention must be devoted to them as is devoted to
customers. Engaged employees are more productive,
enabling them to provide a better service. They pass on
their enthusiasm, leading to a positive image. Their job
satisfaction has a positive effect on attracting and
retaining customers. This so-called customer value can
only be generated by satisfied employees. This results in
loyal and productive employees.
STEP 3 – LOYAL AND PRODUCTIVE EMPLOYEES
Committed employees are loyal to their company,
department and colleagues. They feel closely involved in
the organization and its joint goal. Therefore, they are
more productive and feel very responsible for any end
result. In this context, every employee is an ambassador
of the organization and passes this view on to the
customers. The deeper need of each individual employee
is important in order to make them even more loyal and
productive, so they can perform their job with pleasure.
STEP 4 –VALUE PROPOSITION FOR THE CUSTOMER
The external value proposition for the customer is also
referred to as the customer value. Why does a customer
choose a specific product or brand or to only do
business with a company the customer is already familiar
with? Of course, the product or service itself is important,
however the customer value is mainly created by the
employees of the company in question. They ensure a
customer values the way he/she is assisted and
addressed. Satisfied employees truly care about the
company and are able to convey this to their customers
in a good and honest manner. As a result, the service
they provide will increase and their attention will be
sincere. Customers appreciate this.
STEP 5 – CUSTOMER SATISFACTION
Step 5 and 6 are related and are directly linked.
Customer loyalty is a result of customer satisfaction; a
dissatisfied client will not be loyal and will not place a
new order. The more satisfied a customer, the greater the
chance that the customer will return for repeats business
or place larger orders. Satisfied customers are seen as
free publicity; they are ambassadors of the company and
can recommend products and/or service in their
environment with full enthusiasm.
STEP 6 – CUSTOMER LOYALTY
A customer is loyal if he/she goes to the same company
for a subsequent purchase, irrespective of whether or not
the product or service is provided cheaper by a
competitor. The customer deliberately chooses to do so
and wishes to be helped by the company he/ she is
already familiar with and has had positive experiences
with. This customer loyalty will subsequently result in
more growth and a higher profit for the company. If all
customers are assisted well and are provided with the
right service, this would be an excellent investment for
the future. Customers will continue to return by their own
accord.
STEP 7 – PROFIT AND GROWTH
Profit in the Service Profit Chain is not the goal, it is the
result. As you can conclude from the previous steps, all
additional purchases will ensure that the company will
make a profit and grow. Satisfied customers have the
strength of word of mouth advertising; they contribute
to the positive image of the company.
TRAVELER'S JOURNEY: IS IT DIFFERENT TO
BUYER'S JOURNEY?
Travelers use the Internet as the main tool before, during
and after travel. These are the stages that a traveler goes
through during the purchase process. Dreaming,
planning and booking belong to the "before" of the
trip, experiencing to the "during" and sharing mostly
belong to the "after" the trip. By understanding
consumer behavior, you will then be able to create
quality content for each stage of the traveler's
journey and attract your future clients.
TRAVELER'S JOURNEY
 Before the trip: The latest figures point out that two out of three users
purchase travel products and services exclusively online . There is a
widespread belief that through the purchase on the Internet you get
the best prices for plane and hotel. But that is not all. The user also
looks for information about destination, gastronomy, sightseeing’s,
must-see... Blogs and social media are often a great ally when it
comes to preparing a trip.
 During the trip: We cannot forget that the number of Internet
connections through mobile increases every day. The
foresight indicates that this year 75 percent of the people who will
connect to the Internet will do so through a Smartphone. It means that
the user will consume and generate information during his trip,
anywhere and at any time.
 After the trip: Once the trip is over, the tourist 2.0 commits the three
most important actions for you as a hotelier. Why, you may ask?
Because it is time to share the experience, the feelings, impressions,
moods although some have already done it in the previous stage... It
is also time to value and to recommend the destination, the
services, and of course, the hotel in social networks, blogs, forums...
Without a doubt, it is a key stage because the traveler becomes a
promoter.
THE MAIN CHANNELS AND TOOLS OF
TOURISM MARKETING
Relying mostly on digital marketing techniques, tourism
marketing has specific strategies, mediums and channels
that work best in travel sector. Here you will find a quick
detour into the specific marketing practices.
o Social Media Marketing - a major in Tourism Marketing
o Email Marketing for Tourism
o CRM tools for Tourism
o Hub Spot, the solution for Tourism marketing
1 SOCIAL MEDIA MARKETING - A
MAJOR IN TOURISM MARKETING
 Where do users look for inspiration when they are
thinking of a holiday? Where do they ask for
recommendations and look for reviews before making
the choice of a hotel, a restaurant, or a tour? Where do
they share their experiences? Social Media is the answer.
 In our social era, having a social media strategy is a must
for travel brands, and customers expect to find content
that represents products and services. The more presence
on Social Media your brand has the better, so take
advantage of user generated content and develop your
own strategy.
2 EMAIL MARKETING FOR TOURISM
Email marketing continues being a valid tool for
marketing practitioners in tourism sector. It can be used
for different purposes, such as lead nurturing and loyalty
programs. Email marketing helps brands to stay in a
continuous contact with their prospects and clients and to
help the relationship evolve.
3 CRM TOOLS FOR TOURISM
CRM tools are in high demand when it comes to
tourism marketing. Marketing specialists of the
industry value a tool that allows not only to keep the
data base of the clients neat and organized, but also
create campaigns based on segmentation of the
contacts and to stay tuned about the progress of each
contact. Automatization that many CRM tools offer,
allows increasing the efficiency of the marketing
efforts while decreasing the time and resources
spent.
4 HUB SPOT, THE SOLUTION FOR
TOURISM MARKETING
 Attract with your content. Generate compelling
information, spread it online and get everyone to come to
you, to find you easily. Inbound marketing is a non-
intrusive way of marketing that adds value to the
customer. These are marketing campaigns people
actually fall in love with.
 There are innumerable actions of inbound marketing you
can take to attract clients towards your brand. However,
they all converge on the same thing: creating content and
sharing it. Content must be interesting and your design
has to be attractive. Then you won't need to chase your
target audience, instead those consumers will want to
know about you. This methodology has always in mind the
potential customer. And do you know what your main
secret is? Promote your product in a personalized way.
MICRO ENVIRONMENT OF BUSINESS
 Competitors: The competitive environment consists of certain
basic things which every firm has to take note of. No company,
howsoever large it may be, enjoys monopoly. In the original
business world a company encounters various forms of
competition. The most common competition which a
company’s product now faces is from differentiated products
of other companies.
 Customers: According to Peter. F. Drucker, “There is only one
valid definition of business purpose, that is to create a
customer.” The business enterprises aim to earn profit through
serving the customer demand. It now thinks more in terms of
profitable sale rather than more sales volume for its sake.
Today marketing of a firm begins and also ends with the
customers.
 Suppliers: Regarding the suppliers, the organization can think
of availing the required material or labor according to its
manufacturing program. It can adopt such a purchase policy
which gives bargaining power to the organization.
MICRO ENVIRONMENT OF BUSINESS
 Public: Literally word ‘public’ refers to people in general. According
to Philip Kotler, “A public is any group that has an actual or potential
interest in or impact on a company’s ability to achieve its objectives.”
The environmentalists, consumer protection groups, media persons
and local people are some of the well-known examples of publics.
 Marketing Intermediaries: Market intermediaries are either
individuals or business houses who come to the aid of the company
in promoting, selling and distributing the goods to the ultimate
consumers. They are Middlemen (wholesalers, retailers and agents),
distributing agencies, market service agencies and financial
institutions. Most of the companies find, it is too difficult to reach the
consumers. In such a cases the agents and distribution firms help to
reach the product to the consumer.
 Workers and Their Union: As per the production function theory, the
labor gets more importance. He is also one of the pillars of the
company. The organized labor’s is highly secured their position
compare to unorganized workers So, the workers now prefer to join
labor unions which invariably resort to collective bargaining and
thereby makes them less vulnerable to employer’s exploitation.
MARKETING ENVIRONMENT
 The Marketing Environment includes the internal
factors (employees, customers, shareholders, retailers &
distributors, etc.) and the External factors (political,
legal, social, technological, economic) that surround the
business and influence its marketing operations.
 Some of these factors are controllable while some are
uncontrollable and require business operations to
change accordingly. Firms must be well aware of its
marketing environment in which it is operating to
overcome the negative impact the environment factors
are imposing on firm’s marketing activities.
MARKETING ENVIRONMENT
 Internal Environment – The Internal Marketing Environment
includes all the factors that are within the organization and
affects the overall business operations. These factors include
labor, inventory, company policy, logistics, budget, capital
assets, etc. which are a part of the organization and affects the
marketing decision and its relationship with the customers.
These factors can be controlled by the firm.
 Microenvironment- The Micro Marketing Environment
includes all those factors that are closely associated with the
operations of the business and influences its functioning. The
microenvironment factors include customers, employees,
suppliers, retailers & distributors, shareholders, Competitors,
Government and General Public. These factors are controllable
to some extent.
 Macro environment- In the field of marketing, the macro
environment is the set of external factors and forces, not
controlled by the company, that influence its development. It
mainly includes demographic, economic, cultural,
technological, legal or political elements.
FACTORS INFLUENCE MICRO ENVIRONMENT
FACTORS INFLUENCE MICRO ENVIRONMENT
 Customers– Every business revolves around fulfilling
the customer’s needs and wants. Thus, each marketing strategy
is customer oriented that focuses on understanding the need of
the customers and offering the best product that fulfills their
needs.
 Employees– Employees are the main component of a business
who contributes significantly to its success. The quality of
employees depends on the training and motivation sessions
given to them. Thus, Training & Development is crucial to
impart marketing skills in an individual.
 Suppliers– Suppliers are the persons from whom the material is
purchased to make a finished good and hence are very important
for the organization. It is crucial to identify the suppliers existing
in the market and choose the best that fulfills the firm’s
requirement.
 Retailers & Distributors– The channel partners play an
imperative role in determining the success of marketing
operations. Being in direct touch with customers they can give
suggestions about customer’s desires regarding a product and its
services.
FACTORS INFLUENCE MICRO ENVIRONMENT
 Competitors– Keeping a close watch on competitors enables
a company to design its marketing strategy according to the
trend prevailing in the market.
 Shareholders– Shareholders are the owners of the company,
and every firm has an objective of maximizing its shareholder’s
wealth. Thus, marketing activities should be undertaken
keeping in mind the returns to shareholders.
 Government– The Government departments make several
policies viz. Pricing policy, credit policy, education policy,
housing policy, etc. that do have an influence on the marketing
strategies. A company has to keep track on these policies and
make the marketing programs accordingly.
 General public– The business has some social responsibility
towards the society in which it is operating. Thus, all the
marketing activities should be designed that result in
increased welfare of the society as a whole.
FACTORS INFLUENCE MACRO ENVIRONMENT
FACTORS INFLUENCE MACRO ENVIRONMENT
 Political & Legal Factors– With the change in political
parties, several changes are seen in the market in terms of
trade, taxes, and duties, codes and practices, market
regulations, etc. So the firm has to comply with all these
changes and the violation of which could penalize its business
operations.
 Economic Factors– Every business operates in the economy
and is affected by the different phases it is undergoing. In the
case of recession, the marketing practices should be different
as what are followed during the inflation period.
 Social Factors– since business operates in a society and has
some responsibility towards it must follow the marketing
practices that do not harm the sentiments of people. Also, the
companies are required to invest in the welfare of general
people by constructing public conveniences, parks,
sponsoring education, etc.
 Technological Factors– As technology is advancing day by
day, the firms have to keep themselves updated so that
customers needs can be met with more precision.
THE MACRO ENVIRONMENT – SIX FORCES
IN THE ENVIRONMENT OF A BUSINESS
 The company is not alone in its business environment. It
is surrounded by and operates in a larger context. This
context is called the Macro Environment. It consists of all
the forces that shape opportunities, but also pose threats
to the company. The Macro Environment consists of 6
different forces. These
are: Demographic, Economic, Political, Ecological, Socio-
Cultural, and Technological forces. This can easily be
remembered: the DESTEP model, also called DEPEST
model, helps to consider the different factors of the
Macro Environment.
DEMOGRAPHIC FORCES IN THE
MACRO ENVIRONMENT
 World population growth: The world population is growing at
an explosive rate. Already in 2011, it reached 7 billion, while
being expected to reach 8 billion by the year 2030. By the end
of the century, it is likely to double.
 Changing age structure: The changing age structure of world
population is another critical factor influencing marketing. In
the future, there will be countries with far more favorable age
structures than others. For example, India has one of the
youngest populations on earth and is expected to keep that
status.
 Changing family structures: Also, families are changing
which means that the marketing strategies aimed at them must
undergo an adjustment. For example, new household formats
start emerging in many countries. While in traditional western
countries a typical household consisted of husband, wife and
children, nowadays there are more married couples without
children, as well as single parent and single households.
DEMOGRAPHIC FORCES IN THE MACRO
ENVIRONMENT
 Geographic shifts in population: One – and the most important –
element of geographic shifts is migration. By 2050, global migration
is expected to double. This has a major impact on both the location
and the nature of demand for products and services.
 Economic forces in the Macro Environment: The Economic forces
relate to factors that affect consumer purchasing power and
spending patterns. For instance, a company should never start
exporting to a country before having examined how much people
will be able to spend. Important criteria are: GDP, GDP real growth
rate, GNI, Import Duty rate and sales tax/ VAT, Unemployment,
Inflation, Disposable personal income, and spending patterns.
 Socio-Cultural forces in the Macro Environment: The Socio-
Cultural forces link to factors that affect society’s basic values,
preferences and behavior. The basis for these factors is formed by
the fact that people are part of a society and cultural group that
shape their beliefs and values. Many cultural blunders occur due to
the failure of businesses in understanding foreign cultures.
TECHNOLOGICAL FORCES IN THE MACRO
ENVIRONMENT
 Technological forces form a crucial influence in the
Macro Environment. They relate to factors that create new
technologies and thereby create new product and market
opportunities.
 A technological force everybody can think of nowadays is
the development of wireless communication techniques,
smart phones, tablets and so further. This may mean the
emerge of opportunities for a business, but watch out:
every new technology replaces an older one. Thus,
marketers must watch the technological environment
closely and adapt in order to keep up. Otherwise, the
products will soon be outdated, and the company will
miss new product and market opportunities.
ECOLOGICAL FORCES IN THE MACRO
ENVIRONMENT
 Ecological or natural forces in the Macro Environment are
important since they are about the natural resources which are
needed as inputs by marketers or which are affected by their
marketing activities. Also, environmental concerns have grown
strongly in recent years, which make the ecological force a
crucial factor to consider. For instance, world, air and water
pollution are headlines every marketer should be aware of. In
other words, you should keep track of the trends in the
ecological environment.
 Important trends in the ecological environment are the
growing shortage of raw materials and the care for renewable
resources. In addition, increased pollution, but also increased
intervention of government in natural resource management is
an issue.
POLITICAL FORCES IN THE MACRO
ENVIRONMENT
Every business is limited by the political
environment. This involves laws, government
agencies and pressure groups. These influence
and restrict organizations and individuals in a
society. Therefore, marketing decisions are
strongly influenced and affected by
developments in the political environment.
THANK YOU ALL

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Chapter 1 Tourism and Hospitality Marketing (Tourism and Hospitality Marketing )

  • 2. PRESENTED BY: MD. SHAIFULLAR RABBI  Lecturer- BTHM, Daffodil Institute of IT  Assessor at Bangladesh Technical Education Board (Ticketing and Reservation)  Guest Lecturer – BTHM,IBAIS University  Guest Trainer at ATAB Tourism Training Institute  Guest Trainer at Sheikh Hasina National Institute of Youth Development  Former Manager at Mamun Air Service  Former-Sales & Marketing Executive at City Air International  MBA & BBA-Major in Tourism & Hospitality Management, University of Dhaka.  Certified NTVQF Level -4/Assessor Part( Ticketing and Reservation)  Completed Diploma Course in Travel Agency & Tour Operation Management  Certified NTVQF Level 2 Course entitled Ticketing & Reservation  Certified NTVQF Level 1 Course entitled Tour Guiding Professional Experiences Educational Qualifications
  • 3. WHAT IS TOURISM? The Definition of Tourism varies source by source, person by person. There is no consensus concerning the definition of tourism. Nearly every each institution defines "Tourism" differently. But When it comes to explain it with the basic terms, we can sum it up as follows; "Tourism is a collection of activities, services and industries which deliver a travel experience comprising transportation, accommodation, eating and drinking establishments, retail shops, entertainment businesses and other hospitality services provided for individuals or groups traveling away from home" "The sum of the phenomena and relationships arising from the interaction of tourists, business suppliers, host governments and host communities in the process of attracting and hosting these tourists and other visitors"-Macintosh and Goeldner
  • 4. UNWTO DEFINITION OF TOURISM In order to prevent the disaccords to define "Tourism", UNWTO defined it as indicated below; "Tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.“ ❑ Three criteria are used simultaneously in order to characterize a trip as belonging to tourism.The displacement must be such that;  It involves a displacement outside the usual environment: this term is of utmost importance and will be discussed later on;  Type of purpose: the travel must occur for any purpose different from being remunerated from within the place visited: the previous limits, where tourism was restricted to recreation and visiting family and friends are now expanded to include a vast array of purposes;  Duration: only a maximal duration is mentioned, not a minimal. Tourism displacement can be with or without an overnight stay. We shall discuss the particularity of in transit visits, from a conceptual and statistical point of view.
  • 5. WHAT IS HOSPITALITY?  Hospitality is about people welcoming other people into their homes or other places where they work or spend their time. People who welcome visitors are called hosts. The people they welcome are called guests.  The word hospitality comes from the Latin hopes, which came from the word hostess, which originally meant "to have power."  Hospitality is all about the art of entertaining or receiving guests. We talk about "offering hospitality". There are many different ideas about how to offer hospitality according to the various cultures in the world. In the past, many societies taught that it was always right to offer hospitality to strangers who came to their door in need of food or shelter. This may seem a strange idea to many of us today, but it was an important way to survive in many societies, especially in lands where people travelled long distances, often far away from large towns.  The words hospital, hospice, and hostel also come from the word "hospitality". They are all about giving personal care to people who are away from their homes.
  • 6. TYPES OF TOURISM PRODUCTS  Tourism Oriented Products (TOP)  Residents Oriented Products (ROP)  Intangible Products of Tourism
  • 7. TOURISM ORIENTED PRODUCTS (TOP) These are the products and services created primarily for the tourists and also for the locals. These products need a great share of investments in private sector. A few of them are −  Accommodations; for example,Taj, ITC Hotels.  Transportation; For example, Owning taxis, luxury buses, and boats.  Retail Travel Agents  Tour Operators  Shopping Centers such as malls  Cinema Theatres such as PVR  Restaurants for Food and Beverages  Tourism Information Centers  Souvenirs Outlets  Museums,Temples, Gardens, and Theme parks
  • 8. RESIDENTS ORIENTED PRODUCTS (ROP) Here, the products and services are created mainly for the local residents staying at a particular tourist destination. This category requires investment in public sectors more. Some of them are -  Hospitals  Public Parks  Banks and ATMs  Petrol Pumps  Postal Service
  • 9. INTANGIBLE PRODUCTS OF TOURISM  Bookings of accommodations, theatres, and at various sites.  Tourists’ experience by visiting a destination, eating at a restaurant, or performing an activity.  Tourists’ memory which is created by storing the details of events and experience on the tour. The high degree of satisfaction or dissatisfaction is often stored as a long term memory.  Transportation of tourists and their luggage from one place to another.
  • 10. WHAT IS MARKETING?  Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved 2017)  Marketing is the study and management of exchange relationships. It is the business process of creating relationships with and satisfying customers. Because marketing is used to attract customers, it is one of the primary components of business management and commerce. Marketers can direct product to other businesses (B2B marketing) or directly to consumers (B2C marketing).  Regardless of who is being marketed to, several factors, including the perspective the marketers will use. These market orientations determine how marketers will approach the planning stage of marketing. This leads into the marketing mix, which outlines the specifics of the product and how it will be sold. This can in turn, be affected by the environment surrounding the product , the results of marketing research and market research and the characteristics of the product's target market.
  • 11. DEFINITION OF BRAND  A brand is a name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers.  ISO brand standards add that a brand “is an intangible asset” that is intended to create “distinctive images and associations in the minds of stakeholders, thereby generating economic benefit/values.”
  • 12. TYPES OF MARKETING  Influencer Marketing  Relationship Marketing  Viral Marketing  Green Marketing  Keyword Marketing  Guerilla Marketing
  • 13. INFLUENCER MARKETING  According to the Association of National Advertisers (ANA), influencer marketing focuses on leveraging individuals who have influence over potential buyers and orienting marketing activities around these individuals to drive a brand message to the larger market.  In influencer marketing, rather than marketing directly to a large group of consumers, a brand inspires or compensates influencers (which can include celebrities, content creators, customer advocates, and employees) to get the word out on their behalf.
  • 14. RELATIONSHIP MARKETING  According to the Association of National Advertisers (ANA), relationship marketing refers to strategies and tactics for segmenting consumers to build loyalty. Relationship marketing leverages database marketing, behavioral advertising and analytics to target consumers precisely and create loyalty programs.
  • 15. VIRAL MARKETING  Viral marketing is a marketing phenomenon that facilitates and encourages people to pass along a marketing message. Nicknamed “viral” because the number of people exposed to a message mimics the process of passing a virus or disease from one person to another.
  • 16. GREEN MARKETING  Green marketing refers to the development and marketing of products that are presumed to be environmentally safe (i.e., designed to minimize negative effects on the physical environment or to improve its quality). This term may also be used to describe efforts to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns.
  • 17. KEYWORD MARKETING  Keyword marketing involves placing a marketing message in front of users based on the specific keywords and phrases they are using to search. A key advantage of this method is that it gives marketers the ability to reach the right people with the right message at the right time. For many marketers, keyword marketing results in the placement of an ad when certain keywords are entered. Note that in SEO, this term refers to achieving top placement in the search results themselves.
  • 18. GUERILLA MARKETING  Guerilla marketing describes an unconventional and creative marketing strategy intended to get maximum results from minimal resources.
  • 19. 4 P’S OF MARKETING ❑ Product: A product is defined as a bundle of attributes (features, functions, benefits, and uses) capable of exchange or use; usually a mix of tangible and intangible forms. Thus a product may be an idea, a physical entity (a good), or a service, or any combination of the three. It exists for the purpose of exchange in the satisfaction of individual and organizational objectives. While the term “products and services” is occasionally used, product is a term that encompasses both goods and services. ❑ Price: Price is the formal ratio that indicates the quantity of money, goods, or services needed to acquire a given quantity of goods or services. It is the amount a customer must pay to acquire a product.
  • 20. 4 P’S OF MARKETING ❑ Place (Or Distribution): Distribution refers to the act of marketing and carrying products to consumers. It is also used to describe the extent of market coverage for a given product. In the 4Ps, distribution is represented by place or placement. ❑ Promotion: According to the Association of National Advertisers (ANA), promotion marketing includes tactics that encourage short- term purchase, influence trail and quantity of purchase, and are very measurable in volume, share and profit.
  • 21. WHAT IS TOURISM MARKETING?  Just as the travel industry and behavior of travelers have changed, so has the way we market tourism products and services. And this is where tourism marketing comes into play. In a nutshell, Tourism Marketing is a marketing strategy that uses specific marketing plan and techniques to promote touristic products and services such as destinations, hotels and transport services, etc.  When we talk of Tourism marketing, it makes sense to focus on digital marketing, as with tourism industry, more than any other sector, online communication becomes more important due to the specifics of the consumption process: customers are planning their trips being a great distance away from the service provider.  Tourism marketing does include plenty of techniques that are similar to traditional digital marketing, but it has its specifics. One of the biggest differences is the buyer's journey, or, in case of Tourism Marketing, the traveler's journey.
  • 22. TOURISM AND HOSPITALITY MARKETING  Tourism and Hospitality marketing is how segments of the tourism industry such as transportation, hotels, restaurants, resorts, amusement parks and other entertainment and accommodations businesses promote their products or services. Tourism and Hospitality are service industry.  In the hotel industry, marketing and sales are often thought to be the same, and no wonder: The sales department is one of the most visible in the hotel. Sales managers provide prospective clients with tours and entertain them in the hotel’s food and beverage outlets. Thus the sales function is highly visible, whereas most of the non promotional areas of the marketing function take place behind closed doors. In the restaurant industry, many people confuse marketing with advertising and sales promotion. It is not uncommon to hear restaurant managers say that they “do not believe in marketing” when they actually mean that they are disappointed with the impact of their advertising. In reality, selling and advertising are only two marketing functions and often not the most important. Advertising and sales are components of the promotional element of the marketing mix.
  • 23. THE KEY CONCEPTS FOR TOURISM & HOSPITALITY MARKETING There are five distinctive marketing concept types or approaches to achieving effective marketing. Notably, not all these marketing concept types work for all industries, because they differ in function. Every marketing concept was created depending on the need of the market. As markets changed, so did the concepts.  The Production Concept  The product concept  The selling concept  The marketing concept  The Social Marketing Concept
  • 24. THE PRODUCTION CONCEPT  Companies that use the production concept have the belief that customers primarily want products that are affordable and accessible. The production concept is based on the approach that a company can increase supply as it decreases its costs. Moreover, the production concept highlights that a business can lower costs via mass production. A company oriented towards production believes in economies of scale (decreased production cost per unit), wherein mass production can decrease cost and maximize profits. As a whole, the production concept is oriented towards operations.  A working example of the production concept is a company that produces their goods overseas. Producing retail goods abroad lowers costs and the resulting savings can be passed on to the consumer. These lower prices could be a good incentive to attract new consumers.  However, the company may experience a decline in quality and gradually a decline in sales, if the process is not kept to a standard. Businesses oriented towards production are required to avoid production efficiency procedures that affect their product’s quality and design. By compromising product quality and design simply for production would probably lower the desirability of a product for customers.
  • 25. THE PRODUCT CONCEPT  Companies that focus on the product concept believe that the most significant priorities for a customer are quality and functional characteristics of a product. What this indicates is that a customer looks for innovative alternatives and always searches for the best of what is currently available in the market. In addition, within this concept, it is assumed that consumers stay loyal if they receive more product options and benefits.  Companies who keep this philosophy intact direct their marketing efforts in raising their product quality. With this in mind, it is not surprising that many companies in technology use the product concept. These companies always update and release their new products. It is then important for these technology companies to create strong decisions on how often they should release their new products.
  • 26. THE SELLING CONCEPT  The selling concept involves companies that are sales oriented. What this means is that they can make a product and then sell it to their target market without consideration of their consumers needs or wants. The selling concept highlights that customers would buy a company’s products only if the company were to sell these products aggressively.  This concept became very popular in the early 1930s.The selling concept pays little attention to whether or not a product was truly needed by consumers. The objective was to beat the competition merely in sales, with few regarding the satisfaction of a consumer. Nowadays, this is called “hard selling,” wherein goods are not bought – they are sold. This concept is based on the belief that consumers may be attracted; hence, companies can focus their efforts in attracting and educating consumers.
  • 27. THE MARKETING CONCEPT A company that believes in the marketing concept places the consumer at the center of the organization. All activities are geared towards the consumer. A business, oriented towards the market, aims to understand the needs and wants of a customer and executes the marketing strategy according to market research beginning from product conception to sales. As sales begin, further research can be implemented to figure out what customers think about a product and whether improvements are needed. While markets change continuously, product development and market research is always ongoing for a company that concentrates on the market.
  • 28. THE SOCIAL MARKETING  Societal marketing is a marketing concept that holds that a company should make marketing decisions not only by considering consumers' wants, the company's requirements, but also society's long-term interests.  The societal marketing concept holds that the organization's task is to determine the needs, wants, and interests of a target market and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the well being of both the individual consumer and society in general. Therefore, marketers must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole. It is closely linked with the principles of corporate social responsibility and of sustainable development.
  • 29. PLANNING FOR SERVICES MARKETING To ensure effective services marketing, tourism marketers need to be strategic in their planning process. Using a tourism marketing system requires carefully evaluating multiple alternatives, choosing the right activities for specific markets, anticipating challenges, adapting to these challenges, and measuring success (Morrison, 2010). Tourism marketers can choose to follow a strategic management process called the PRICE concept, where they:  P: plan (where are we now?)  R: research (where would we like to be?)  I: implement (how do we get there?)  C: control (how do we make sure we get there?)  E: evaluate (how do we know if we got there?)
  • 30.
  • 31. THREE TYPES OF MARKETING ❑ In traditional marketing, a business broadcasts messaging directly to the consumer. In contrast, in services marketing, employees play an integral component. The communications between the three groups can be summarized as follows (Morrison, 2010):  External marketing: promotional efforts aimed at potential customers and guests (creating a promise between the organization and the guest)  Internal marketing: training, culture, and internal communications (enabling employees to deliver on the promise)  Interactive marketing: direct exchanges between employees and guests (delivering the promise)
  • 32. 8 PS OF SERVICES MARKETING  Product: the range of product and service mix offered to customers  Place: how the product will be made available to consumers in the market, selection of distribution channels, and partners  Promotion: specific combination of marketing techniques (advertising, personal sales, public relations, etc.)  Pricing: part of a comprehensive revenue management and pricing plan  People: developing human resources plans and strategies to support positive interactions between hosts and guests  Programming: customer-oriented activities (special events, festivals, or special activities) designed to increase customer spending or length of stay, or to add to the appeal of packages  Partnership: also known as cooperative marketing, increasing the reach and impact of marketing efforts  Physical evidence: ways in which businesses can demonstrate their marketing claims and customers can document their experience such as stories, reviews, blog posts, or in-location signage and components
  • 33. SERVICE CHARACTERISTICS OF HOSPITALITY AND TOURISM MARKETING The challenges associated with marketing a service-based business are quite different from the challenges associated with marketing a product-based business. Service businesses have unique characteristics that should be explored and understood when developing a marketing plan and competitive strategy. The four key characteristics of service businesses are: Intangibility, Inseparability, Perish ability, and Variability. Let’s take a closer look at each of these qualities so you can apply them to your service business. I will also provide some tips for dealing with the challenges inherent in each characteristic.  1) Intangibility  2) Inseparability  3) Perish ability  4) Variability
  • 34. 1) INTANGIBILITY  When you buy a car, you can see it, feel it, and even test it prior to purchase. In other words, products have tangible qualities that provide information to consumers so they can easily compare one product to another. Services, on the other hand, are intangible. Most services cannot be experienced or consumed until the purchase is made. Customers can easily end up feeling like they have to make a purchasing decision without adequate information.  What is the answer to this challenge? Communicate, communicate, and communicate. Communication can come from a variety of sources. The use of customer testimonials and referrals is an excellent way to reduce the level of intangibility for your service. Additionally, you can increase customers’ comfort level by explaining your service in as much detail as possible. If you provide your services at one location (e.g. a doggy daycare) you might consider allowing customer preview visits. Here is a tip: a well-designed brochure or website can provide information to customers before they talk to you, improving your overall efficiency and increasing your chances of securing new business.
  • 35. 2) INSEPARABILITY  To continue using the automobile analogy, cars are produced at one location, sold at another, and used at yet another location. Services are unique because they are usually provided and consumed at the same time in the same location (e.g. a haircut or car tune-up). Because of the characteristic of inseparability, customers have strong expectations about how a service will be provided, which can lead to disappointment if their expectations are not met.  A solid customer service process is the key to managing this challenge effectively. How do you ensure customer satisfaction? How do you deal with unhappy customers? If you don’t know the level of your customers’ satisfaction with your service, ask them!
  • 36. 3) PERISH ABILITY  If a car does not sell today, it can be stored and sold the following day or at some other time in the future. Services, on the other hand, are often perishable, meaning that unused capacity cannot be stored for future use or sale. For example, a restaurant might be full one night and half empty the next. If the restaurant runs with an inflexible staffing model, expenses are the same each night. However, the revenue picture is quite different, which impacts profits. The same is true for Mt. Bachelor – every empty seat on the chairlift is lost revenue.  This challenge can be overcome by carefully managing supply and demand. A restaurant might operate with fewer staff during the week and hire additional staff to cover weekends when demand is higher. This strategy will allow the restaurant to provide the same level of customer service with varying customer demand—and improve productivity. Does your business have peak periods? What can you do to control supply and demand? Tip: Use pricing strategies and promotions to stimulate demand for your service.
  • 37. 4)VARIABILITY  Once you have decided to buy a Honda Accord, you know that there will be no variation in the quality of the Accord from one Honda dealer to another. Manufactured goods tend to have automated processes and quality assurance procedures that result in a consistent product. However, the quality of a service can vary by many factors, including who provides it, where it is provided, when it is provided, and how it is provided. The more your business relies on humans to provide services (instead of automation), the more susceptible you are to variability.  How can you manage this challenge? Establishing standard procedures (or checklists) can ensure consistent service delivery. If you have employees, training is essential. Can technology improve an aspect of your business? One obvious example of technology’s impact is illustrated by ATMs reducing bank teller service variability for customers. Don’t forget the “little things” like invoicing and newsletters. Any time you have a “customer touch” you have an opportunity to demonstrate consistency and professionalism, which will translate into your customer’s perception that your service is consistent in quality.
  • 38. THE SERVICE PROFIT CHAIN The Service Profit Chain shows that a company’s profitability and growth are a result of customer and employee satisfaction. The model consists of sequential links that lead to success. Each link consists of so-called KPIs; Key Performance Indicators. In other words, these are crucial performance indicators; variables that are used to analyze the performance of a company, brand or product. The success of an organization is measured with KPIs. These links can be compared to steps that need to be taken. The goal of these steps is to make a company successful. Each step can, as it were, be increased or decreased. A correct ‘volume setting’ will result in profit and growth for a company. It involves the following seven steps:  Step 1 – Internal: service quality  Step 2 – Employee satisfaction  Step 3 – Loyal and productive employees  Step 4 – Value proposition for the customer  Step 5 – Customer satisfaction  Step 6 – Customer loyalty  Step 7 – Profit and growth
  • 39. STEP 1 – INTERNAL: SERVICE QUALITY The first few steps of the Service Profit Chain involve employees. An organization can only be successful if it invests in its own employees. This means that a safe work environment should be created, employees should be involved in the decision making process and should work together in a pleasant atmosphere. A company can achieve this by investing in their employees, to support, train and invest in the development of its employees. All to an extent that hiring, remuneration and development policy are important components of this first step. New employees with the right attitude, can contribute to the internal service quality. By rewarding employees, they are motivated to be actively engaged in the organization. With training, education and course options, employees are in a better position to be fully committed to a company. The internal service quality will subsequently lead to employee satisfaction.
  • 40. STEP 2 – EMPLOYEE SATISFACTION One step cannot be achieved without the other. To satisfy employees and keep them satisfied, the same amount of attention must be devoted to them as is devoted to customers. Engaged employees are more productive, enabling them to provide a better service. They pass on their enthusiasm, leading to a positive image. Their job satisfaction has a positive effect on attracting and retaining customers. This so-called customer value can only be generated by satisfied employees. This results in loyal and productive employees.
  • 41. STEP 3 – LOYAL AND PRODUCTIVE EMPLOYEES Committed employees are loyal to their company, department and colleagues. They feel closely involved in the organization and its joint goal. Therefore, they are more productive and feel very responsible for any end result. In this context, every employee is an ambassador of the organization and passes this view on to the customers. The deeper need of each individual employee is important in order to make them even more loyal and productive, so they can perform their job with pleasure.
  • 42. STEP 4 –VALUE PROPOSITION FOR THE CUSTOMER The external value proposition for the customer is also referred to as the customer value. Why does a customer choose a specific product or brand or to only do business with a company the customer is already familiar with? Of course, the product or service itself is important, however the customer value is mainly created by the employees of the company in question. They ensure a customer values the way he/she is assisted and addressed. Satisfied employees truly care about the company and are able to convey this to their customers in a good and honest manner. As a result, the service they provide will increase and their attention will be sincere. Customers appreciate this.
  • 43. STEP 5 – CUSTOMER SATISFACTION Step 5 and 6 are related and are directly linked. Customer loyalty is a result of customer satisfaction; a dissatisfied client will not be loyal and will not place a new order. The more satisfied a customer, the greater the chance that the customer will return for repeats business or place larger orders. Satisfied customers are seen as free publicity; they are ambassadors of the company and can recommend products and/or service in their environment with full enthusiasm.
  • 44. STEP 6 – CUSTOMER LOYALTY A customer is loyal if he/she goes to the same company for a subsequent purchase, irrespective of whether or not the product or service is provided cheaper by a competitor. The customer deliberately chooses to do so and wishes to be helped by the company he/ she is already familiar with and has had positive experiences with. This customer loyalty will subsequently result in more growth and a higher profit for the company. If all customers are assisted well and are provided with the right service, this would be an excellent investment for the future. Customers will continue to return by their own accord.
  • 45. STEP 7 – PROFIT AND GROWTH Profit in the Service Profit Chain is not the goal, it is the result. As you can conclude from the previous steps, all additional purchases will ensure that the company will make a profit and grow. Satisfied customers have the strength of word of mouth advertising; they contribute to the positive image of the company.
  • 46. TRAVELER'S JOURNEY: IS IT DIFFERENT TO BUYER'S JOURNEY? Travelers use the Internet as the main tool before, during and after travel. These are the stages that a traveler goes through during the purchase process. Dreaming, planning and booking belong to the "before" of the trip, experiencing to the "during" and sharing mostly belong to the "after" the trip. By understanding consumer behavior, you will then be able to create quality content for each stage of the traveler's journey and attract your future clients.
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  • 48. TRAVELER'S JOURNEY  Before the trip: The latest figures point out that two out of three users purchase travel products and services exclusively online . There is a widespread belief that through the purchase on the Internet you get the best prices for plane and hotel. But that is not all. The user also looks for information about destination, gastronomy, sightseeing’s, must-see... Blogs and social media are often a great ally when it comes to preparing a trip.  During the trip: We cannot forget that the number of Internet connections through mobile increases every day. The foresight indicates that this year 75 percent of the people who will connect to the Internet will do so through a Smartphone. It means that the user will consume and generate information during his trip, anywhere and at any time.  After the trip: Once the trip is over, the tourist 2.0 commits the three most important actions for you as a hotelier. Why, you may ask? Because it is time to share the experience, the feelings, impressions, moods although some have already done it in the previous stage... It is also time to value and to recommend the destination, the services, and of course, the hotel in social networks, blogs, forums... Without a doubt, it is a key stage because the traveler becomes a promoter.
  • 49. THE MAIN CHANNELS AND TOOLS OF TOURISM MARKETING Relying mostly on digital marketing techniques, tourism marketing has specific strategies, mediums and channels that work best in travel sector. Here you will find a quick detour into the specific marketing practices. o Social Media Marketing - a major in Tourism Marketing o Email Marketing for Tourism o CRM tools for Tourism o Hub Spot, the solution for Tourism marketing
  • 50. 1 SOCIAL MEDIA MARKETING - A MAJOR IN TOURISM MARKETING  Where do users look for inspiration when they are thinking of a holiday? Where do they ask for recommendations and look for reviews before making the choice of a hotel, a restaurant, or a tour? Where do they share their experiences? Social Media is the answer.  In our social era, having a social media strategy is a must for travel brands, and customers expect to find content that represents products and services. The more presence on Social Media your brand has the better, so take advantage of user generated content and develop your own strategy.
  • 51. 2 EMAIL MARKETING FOR TOURISM Email marketing continues being a valid tool for marketing practitioners in tourism sector. It can be used for different purposes, such as lead nurturing and loyalty programs. Email marketing helps brands to stay in a continuous contact with their prospects and clients and to help the relationship evolve.
  • 52. 3 CRM TOOLS FOR TOURISM CRM tools are in high demand when it comes to tourism marketing. Marketing specialists of the industry value a tool that allows not only to keep the data base of the clients neat and organized, but also create campaigns based on segmentation of the contacts and to stay tuned about the progress of each contact. Automatization that many CRM tools offer, allows increasing the efficiency of the marketing efforts while decreasing the time and resources spent.
  • 53. 4 HUB SPOT, THE SOLUTION FOR TOURISM MARKETING  Attract with your content. Generate compelling information, spread it online and get everyone to come to you, to find you easily. Inbound marketing is a non- intrusive way of marketing that adds value to the customer. These are marketing campaigns people actually fall in love with.  There are innumerable actions of inbound marketing you can take to attract clients towards your brand. However, they all converge on the same thing: creating content and sharing it. Content must be interesting and your design has to be attractive. Then you won't need to chase your target audience, instead those consumers will want to know about you. This methodology has always in mind the potential customer. And do you know what your main secret is? Promote your product in a personalized way.
  • 54. MICRO ENVIRONMENT OF BUSINESS  Competitors: The competitive environment consists of certain basic things which every firm has to take note of. No company, howsoever large it may be, enjoys monopoly. In the original business world a company encounters various forms of competition. The most common competition which a company’s product now faces is from differentiated products of other companies.  Customers: According to Peter. F. Drucker, “There is only one valid definition of business purpose, that is to create a customer.” The business enterprises aim to earn profit through serving the customer demand. It now thinks more in terms of profitable sale rather than more sales volume for its sake. Today marketing of a firm begins and also ends with the customers.  Suppliers: Regarding the suppliers, the organization can think of availing the required material or labor according to its manufacturing program. It can adopt such a purchase policy which gives bargaining power to the organization.
  • 55. MICRO ENVIRONMENT OF BUSINESS  Public: Literally word ‘public’ refers to people in general. According to Philip Kotler, “A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.” The environmentalists, consumer protection groups, media persons and local people are some of the well-known examples of publics.  Marketing Intermediaries: Market intermediaries are either individuals or business houses who come to the aid of the company in promoting, selling and distributing the goods to the ultimate consumers. They are Middlemen (wholesalers, retailers and agents), distributing agencies, market service agencies and financial institutions. Most of the companies find, it is too difficult to reach the consumers. In such a cases the agents and distribution firms help to reach the product to the consumer.  Workers and Their Union: As per the production function theory, the labor gets more importance. He is also one of the pillars of the company. The organized labor’s is highly secured their position compare to unorganized workers So, the workers now prefer to join labor unions which invariably resort to collective bargaining and thereby makes them less vulnerable to employer’s exploitation.
  • 56. MARKETING ENVIRONMENT  The Marketing Environment includes the internal factors (employees, customers, shareholders, retailers & distributors, etc.) and the External factors (political, legal, social, technological, economic) that surround the business and influence its marketing operations.  Some of these factors are controllable while some are uncontrollable and require business operations to change accordingly. Firms must be well aware of its marketing environment in which it is operating to overcome the negative impact the environment factors are imposing on firm’s marketing activities.
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  • 58. MARKETING ENVIRONMENT  Internal Environment – The Internal Marketing Environment includes all the factors that are within the organization and affects the overall business operations. These factors include labor, inventory, company policy, logistics, budget, capital assets, etc. which are a part of the organization and affects the marketing decision and its relationship with the customers. These factors can be controlled by the firm.  Microenvironment- The Micro Marketing Environment includes all those factors that are closely associated with the operations of the business and influences its functioning. The microenvironment factors include customers, employees, suppliers, retailers & distributors, shareholders, Competitors, Government and General Public. These factors are controllable to some extent.  Macro environment- In the field of marketing, the macro environment is the set of external factors and forces, not controlled by the company, that influence its development. It mainly includes demographic, economic, cultural, technological, legal or political elements.
  • 59. FACTORS INFLUENCE MICRO ENVIRONMENT
  • 60. FACTORS INFLUENCE MICRO ENVIRONMENT  Customers– Every business revolves around fulfilling the customer’s needs and wants. Thus, each marketing strategy is customer oriented that focuses on understanding the need of the customers and offering the best product that fulfills their needs.  Employees– Employees are the main component of a business who contributes significantly to its success. The quality of employees depends on the training and motivation sessions given to them. Thus, Training & Development is crucial to impart marketing skills in an individual.  Suppliers– Suppliers are the persons from whom the material is purchased to make a finished good and hence are very important for the organization. It is crucial to identify the suppliers existing in the market and choose the best that fulfills the firm’s requirement.  Retailers & Distributors– The channel partners play an imperative role in determining the success of marketing operations. Being in direct touch with customers they can give suggestions about customer’s desires regarding a product and its services.
  • 61. FACTORS INFLUENCE MICRO ENVIRONMENT  Competitors– Keeping a close watch on competitors enables a company to design its marketing strategy according to the trend prevailing in the market.  Shareholders– Shareholders are the owners of the company, and every firm has an objective of maximizing its shareholder’s wealth. Thus, marketing activities should be undertaken keeping in mind the returns to shareholders.  Government– The Government departments make several policies viz. Pricing policy, credit policy, education policy, housing policy, etc. that do have an influence on the marketing strategies. A company has to keep track on these policies and make the marketing programs accordingly.  General public– The business has some social responsibility towards the society in which it is operating. Thus, all the marketing activities should be designed that result in increased welfare of the society as a whole.
  • 62. FACTORS INFLUENCE MACRO ENVIRONMENT
  • 63. FACTORS INFLUENCE MACRO ENVIRONMENT  Political & Legal Factors– With the change in political parties, several changes are seen in the market in terms of trade, taxes, and duties, codes and practices, market regulations, etc. So the firm has to comply with all these changes and the violation of which could penalize its business operations.  Economic Factors– Every business operates in the economy and is affected by the different phases it is undergoing. In the case of recession, the marketing practices should be different as what are followed during the inflation period.  Social Factors– since business operates in a society and has some responsibility towards it must follow the marketing practices that do not harm the sentiments of people. Also, the companies are required to invest in the welfare of general people by constructing public conveniences, parks, sponsoring education, etc.  Technological Factors– As technology is advancing day by day, the firms have to keep themselves updated so that customers needs can be met with more precision.
  • 64. THE MACRO ENVIRONMENT – SIX FORCES IN THE ENVIRONMENT OF A BUSINESS  The company is not alone in its business environment. It is surrounded by and operates in a larger context. This context is called the Macro Environment. It consists of all the forces that shape opportunities, but also pose threats to the company. The Macro Environment consists of 6 different forces. These are: Demographic, Economic, Political, Ecological, Socio- Cultural, and Technological forces. This can easily be remembered: the DESTEP model, also called DEPEST model, helps to consider the different factors of the Macro Environment.
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  • 66. DEMOGRAPHIC FORCES IN THE MACRO ENVIRONMENT  World population growth: The world population is growing at an explosive rate. Already in 2011, it reached 7 billion, while being expected to reach 8 billion by the year 2030. By the end of the century, it is likely to double.  Changing age structure: The changing age structure of world population is another critical factor influencing marketing. In the future, there will be countries with far more favorable age structures than others. For example, India has one of the youngest populations on earth and is expected to keep that status.  Changing family structures: Also, families are changing which means that the marketing strategies aimed at them must undergo an adjustment. For example, new household formats start emerging in many countries. While in traditional western countries a typical household consisted of husband, wife and children, nowadays there are more married couples without children, as well as single parent and single households.
  • 67. DEMOGRAPHIC FORCES IN THE MACRO ENVIRONMENT  Geographic shifts in population: One – and the most important – element of geographic shifts is migration. By 2050, global migration is expected to double. This has a major impact on both the location and the nature of demand for products and services.  Economic forces in the Macro Environment: The Economic forces relate to factors that affect consumer purchasing power and spending patterns. For instance, a company should never start exporting to a country before having examined how much people will be able to spend. Important criteria are: GDP, GDP real growth rate, GNI, Import Duty rate and sales tax/ VAT, Unemployment, Inflation, Disposable personal income, and spending patterns.  Socio-Cultural forces in the Macro Environment: The Socio- Cultural forces link to factors that affect society’s basic values, preferences and behavior. The basis for these factors is formed by the fact that people are part of a society and cultural group that shape their beliefs and values. Many cultural blunders occur due to the failure of businesses in understanding foreign cultures.
  • 68. TECHNOLOGICAL FORCES IN THE MACRO ENVIRONMENT  Technological forces form a crucial influence in the Macro Environment. They relate to factors that create new technologies and thereby create new product and market opportunities.  A technological force everybody can think of nowadays is the development of wireless communication techniques, smart phones, tablets and so further. This may mean the emerge of opportunities for a business, but watch out: every new technology replaces an older one. Thus, marketers must watch the technological environment closely and adapt in order to keep up. Otherwise, the products will soon be outdated, and the company will miss new product and market opportunities.
  • 69. ECOLOGICAL FORCES IN THE MACRO ENVIRONMENT  Ecological or natural forces in the Macro Environment are important since they are about the natural resources which are needed as inputs by marketers or which are affected by their marketing activities. Also, environmental concerns have grown strongly in recent years, which make the ecological force a crucial factor to consider. For instance, world, air and water pollution are headlines every marketer should be aware of. In other words, you should keep track of the trends in the ecological environment.  Important trends in the ecological environment are the growing shortage of raw materials and the care for renewable resources. In addition, increased pollution, but also increased intervention of government in natural resource management is an issue.
  • 70. POLITICAL FORCES IN THE MACRO ENVIRONMENT Every business is limited by the political environment. This involves laws, government agencies and pressure groups. These influence and restrict organizations and individuals in a society. Therefore, marketing decisions are strongly influenced and affected by developments in the political environment.