This document discusses key concepts in tourism marketing. It defines marketing and highlights its focus on creating value for both consumers and producers through the exchange of goods and services. It then examines the characteristics of services marketing which applies specifically to the tourism sector, including intangibility, inseparability, variability, and perishability. The document also covers managing supply and demand in tourism, the role of destination marketing organizations, and the marketing mix (8Ps) used in tourism.

1. TOURISM MARKETING
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2. DEFINITION OF MARKETING
• Marketing is popularly perceived as involving little more than the
promotional advertisements are displayed through television
and other media
• Marketing implicates everyone in the tourism and hospitality
sector
• Marketing involves the interaction and interrelationship among
consumers and producers of goods and services, through which
ideas, products, services and values are created and exchanged
for the mutual benefit of both groups.

3. SERVICES MARKETING
• Services marketing applies to service sector activities such as
tourism.
• Characteristics of services marketing :
1. Intangibility
2. Inseperability
3. Variability
4. perishability

4. INTANGIBILITY
• Contrast with physical products, they can be experiences in only a
very limited way prior to their purchase and consumption.
• The product itself cannot be returned once it has been consumed.
• Word of mouth is especially important as a source of product
information.
• To reduce the risk, service providers offers tangible clues as to what
the customer can expect from the product.

5. INSEPARABILITY
• The production and consumption occur simultaneously in the same place.
• Because the consumers and producers of the product in frequent contact,
these interactions has a major impact on customer satisfaction level.
• Thus, emotional labour attributes such as empathy, assurance,
responsiveness are very important.
• Tourists also need to respect the regulations since their misbehavior can
negatively affect the product.

6. VARIABILITY
• Each producer-consumer interaction is a unique experience
that influenced by large number of often unpredictable
factors.
• Often, just one experience can have a disproportionate
influence in souring tourist’s impression.
• This uncertainly element (variability) combined with the
inseperability, makes it extremely difficult to introduce quality
control in tourism.

7. PERISHABILITY
• Tourism services cannot be produced and stored today for
consumption in the future.
• This characteristic also helps to explain why airlines, hotel or other
business offer last minute sales that drastically reduced the prices.

8. MANAGING SUPPLY AND DEMAND
Two main cost components that must be taken into account :
1. Fixed costs : costs that the operation has little flexibility to change
over the short time.
2. Variable costs : costs that can be adjusted in the short time.

9. MANAGING SUPPLY AND DEMAND

10. - DAILY VARIATIONS IN DEMAND-
THE LEVEL OF DEMAND FOR THE MOST TOURISM SERVICES CHANGES THROUGHOUT THE DAY.
• The peak Check Out & Check
In time in Hotel. However,
Housekeeping Dept. have to
prepare the room.
• Airport Hotel often faces
unpredictable demand
• Peak often occurs between
midday & late afternoon

11. - Weekly Variations in Demand-
Weekly basis are illustrated in the hotel industry by the distinction between the ‘four-day’
and ‘three-day’ market.
The four-day market is a largely business-
oriented clientele that concentrates in the
Monday to Thursday and downturn on the
weekend.
The three-day or short holiday markets
peaks on the weekend and during national
or states holidays.
Business
Hotel
Resort

12. - SEASONAL VARIATIONS IN DEMAND-
Variations can also be identified over the one-year cycle, with a distinction being made
between high season, the low season and shoulder periods in many types of
destinations and operations.
Ice Hotel in Sweden that only open in
Winter
Ski Hotel

13. -Long term Variations in Demand-
The most difficult patterns to identify are those that occur over a period of
several years or even decades.

14. Supply/demand matching strategies
Supply
Supply
Demand
Demand
If supply exceeds demand:
• Increase demand
• Reduce supply
• Redestribute supply
If demand exceeds supply:
• Reduce demand
• Increase supply
• Redestribute demand

15. MARKET FAILURE
TOURISM IS AN INDUSTRY WHERE MARKET FAILURE OCCURS FREQUENTLY. COMPANIES THAT IDENTIFY A
NEED PROMOTION TO FILL THEIR HOTEL ROOMS OR AIRCRAFTS SEATS, THEREFORE, WILL SPEND THE
NECESSARY FUNDS ON THAT PROMOTION.

16. DESTINATION TOURISM
ORGANISATION (DTO)
Established as govermenr or quasi-gvermental agencies at the national, regional, state or
municipal level. This is a role that serves to rainforce the importance of destination
gverments within the overall tourism system.

17. Marketing Functions of Destination Tourism
Organisations
• Promotion
• Research
• Direct Support for The Tourism Industry

18. Strategic Tourism Marketing
- Must have vision for the future
- An awareness of the strategy that are required to
achieve success
- Only with long term thinking will minimise
negative impacts and attain a sustainable tourism
sector

19. Business Mision
SWOT Analysis
Long-term Objectives /
Marketing Strategies
Short-term Objectives /
Marketing Tactics
Implementation
Control / Evaluation

20. Business Mission
The mission statement is usually some very
basic directive that influences any further
statement of objectives or goals.
A business, in contrast, may have a mission of
offering the highest quality products within a
particular sector

21. SWOT Analysis
o Strengths
o Weakness
o Opportunities
o Threats
Internal Environment
External Environment

22. Objectives
 Long Term Objectives : 10-15 Years
Given the complex and unpredictable nature of the factors that
will influence tourism over that timeframe.
 Short Term Objectives : 6 Month – 3 Years
Should be established that have a horizon 6 months to 3 years
depending on feasibility.

23. Control / Evaluation
 The control or evaluation process provides feedback for
further SWOT analyses, which reassess the internal and
external environmental factors.
 This in turn may lead to a reassessment of marketing
strategies and tactics.
 It is also useful to periodically evaluate the SWOT
procedures themselves to ensure that the best
methodologies are used to assess the best quality
information.

24. Marketing Mix
8P

25. Place
• Tourists must travel to the destinatiom in
order to directly consume the tourist
product.
• Relative location (potential market &
competitor) is a critical element of place , as
it coverage (the other places that are
identified or not as a target markets for
marketing & promotional efforts)

26. Product
• The product component encompasses the
range of available goods and services (quality,
warranty and aftersales service)

27. People
 Service personnel : highly trained employees
and emotional labour at the consumer
inteface.
 The tourists themselves : inappropriate
tourist behaviour can reduce the quality of
the product for all participants.
 Local residents : tourists may be attracted by
the culture and hospitality of the resident
population.

28. Price
The Pricing Techniques :
1. Profit oriented = oriented towards profit include typical
approaches such as the maximisation of profits and the
attainment of satisfactory profits.
2. Sales oriented = maximising the volume of sales, increasing
market share through aggressive promotion and reduced
prices, maintaining high prices as a signal of outstanding
quality

29. 3. Competition oriented = the reactive approach can involve the
matching of a competitor’s prices, depending on the type of
market that is being targeted.
4. Cost oriented : cost oriented pricing is to calculate break even
point that is combination of price and occupancy where
revenues and costs are equal.

30. PACKAGING
packaging refers to deliberate grouping of two or more
elements of the tourism experience into a single product.
this is the best illustrated in the private sector by the
provision of set-price package tours integrate
transportation,accommodation,visits to attractions and
other complementary tourism components.

31. PROGRAMMING
programming is closely related to packaging in that it
involves the addition of special events , activities or
programs to a product to make it more diverse and
appealing.

32. PUBLICITY
Publicity can occur through press release and is one of
the least expensive means of promotion,and one that
can be readily used by destination managers. There is a
higher risk in such unsolicited media coverage that the
publicity,and resulting product image,will be negative.

33. MERCHANDISING
Merchandising can be used very effectively as a promotional tool
when it involves the sale of products, at on-site gift shops or
online,that are readily associated with a particular company or
destination.
There are several advantages associated with well-formulated
merchandising strategies :
-Unlike other forms of promotion, merchandising also generates
direct income,and all the more so since logo products often sell at a
premium.
-Since such products are usually purchased as souvenirs , they tend
to be prominently displayed as status symbols back in the origin
region,thereby maximising exposure to potential customers.
-It is commonly the more frequently worn items of clothing , such
as base-ball caps and T-shirts,that are merchandised, and therefore
the purchasers of these products are likely to spend more time
acting as walking billboards for the company or destination.

34. ADVERTISING
Advertising is the most common form of promotion and constitutes a
major topic of investigation and management in its own right. An
important distinction in advertising can be made between a ‘ shotgun
approach’ and a ‘ rile approach’.
In shortgun marketing , an advertisement is placed in a mainstream
media source that is accessed by a broad cross-section of the tourist
market.
Rifle marketing, occurs when the advertisement is directed specifically to
the target market.

35. PARTNERSHIPS
Partnerships are especially important for small
operations that lack the economies of scale to
engage in these efforts efficiently and
effectively on their own.