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Service Marketing Op 08


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Service Marketing Op 08

  1. 1. Marketing Tourism Hillary Jenkins, Otago Polytechnic
  2. 2. Marketing Concept <ul><li>‘ Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.’ (Chartered Institute of Marketing, UK) </li></ul>
  3. 3. The Traditional Marketing Mix <ul><li>Set of controllable variables blended by organisations for selected market segments </li></ul><ul><li>The Price </li></ul><ul><li>Place (distribution) </li></ul><ul><li>Product </li></ul><ul><li>Promotion </li></ul>Queenstown
  4. 4. 4P’s of Marketing <ul><li>Product </li></ul><ul><li>Design </li></ul><ul><li>Quality </li></ul><ul><li>Range </li></ul><ul><li>Brand name </li></ul><ul><li>Features </li></ul><ul><li>Price </li></ul><ul><li>List price </li></ul><ul><li>Discounts </li></ul><ul><li>Commissions </li></ul><ul><li>Surcharges </li></ul><ul><li>Extras </li></ul><ul><li>Place </li></ul><ul><li>Distribution channels </li></ul><ul><li>Methods of distribution </li></ul><ul><li>Coverage </li></ul><ul><li>Location </li></ul><ul><li>Promotion </li></ul><ul><li>Advertising </li></ul><ul><li>Sales promotion </li></ul><ul><li>Salesmanship </li></ul><ul><li>Publicity </li></ul>The Marketing Mix
  5. 5. Product <ul><li>Tourism products and services are designed for and continuously adapted to match changing needs, expectations and budget of the target market </li></ul>
  6. 6. Place <ul><li>Not only the location of the tourist attraction or facility but the location of points of sale that provide customers with access to tourist products </li></ul>
  7. 7. Price <ul><li>Used to achieve predetermined sales volume and revenue objectives </li></ul><ul><li>Price gives a product or service a perceived value in the eyes of the consumer </li></ul>
  8. 8. Promotion <ul><li>The most visible of the 4p’s </li></ul><ul><li>Promotional techniques aim to increase awareness and demand for products </li></ul>
  9. 9. Marketing Services <ul><li>Tourism is a service. </li></ul><ul><li>Services differ from physical products, </li></ul><ul><ul><li>This needs to be taken into account when marketing them </li></ul></ul>
  10. 10. Characteristics of Services <ul><li>Intangibility </li></ul><ul><li>Heterogeneity </li></ul><ul><li>Temporary ownership </li></ul><ul><li>Perishability </li></ul><ul><li>Inseparability </li></ul>
  11. 11. Intangibility <ul><li>Not the physical portion (tangible) of the product </li></ul><ul><ul><li>Performance or experience rendered by the service provider to the service consumer </li></ul></ul><ul><li>Most tourism products are a mixture of tangible and intangible </li></ul>
  12. 12. Inseparability <ul><li>Services are usually produced and consumed at the same time </li></ul><ul><ul><li>Think of a restaurant meal </li></ul></ul><ul><li>This can make it difficult to separate the provide of the service from the service itself. </li></ul>
  13. 13. Perishability <ul><li>Services cannot be saved or stores as they expire during the simultaneous production and consumption process </li></ul><ul><ul><li>Aircraft seat </li></ul></ul>
  14. 14. Heterogeneity <ul><li>Standardisation </li></ul><ul><ul><li>Difficult to achieve in a people based service industry </li></ul></ul><ul><ul><ul><li>Quality control plays an important part </li></ul></ul></ul>
  15. 15. Ownership <ul><li>Service customers usually only have access to our use a facility where a service is performed </li></ul><ul><ul><li>Use of a hotel room for a holiday – you occupy the space only and have temporary use of the facilities </li></ul></ul>
  16. 16. How Tourism Differs <ul><li>Tourism is more supply-led than other services </li></ul><ul><ul><li>All ready have the product then research which market might be interested in purchasing it. </li></ul></ul><ul><ul><li>Dunedin the destination is already here who wants to visit. </li></ul></ul><ul><li>Tourism product might involve the co-operation of several suppliers . </li></ul><ul><ul><li>e.g. Package holiday </li></ul></ul>
  17. 17. How Tourism Differs <ul><li>Tourism is a complex, extended product experience with no predictable critical evaluation point. </li></ul><ul><ul><li>Pre trip anticipation and post trip reflection </li></ul></ul><ul><ul><li>Every trip is different therefore may not be anything to evaluate it against. </li></ul></ul>
  18. 18. How Tourism Differs <ul><li>Tourism is a high-involvement, high-risk product to its consumers </li></ul><ul><ul><li>Involves committing large sums of money to something that cannot be seen or evaluated before purchase. </li></ul></ul><ul><li>Tourism is a product partly constituted by the dreams and fantasies of its customers . </li></ul><ul><ul><li>Unlike banking and car repair, tourism is not consumed for rational, functional purposes. </li></ul></ul>
  19. 19. How Tourism Differs <ul><li>Tourism is a fragile industry susceptible to external forces beyond the control of its suppliers. </li></ul><ul><ul><li>Tourism organisations sometimes have to make rapid responses to crises in the form of product redesign, price reductions or promotional damage limitation. </li></ul></ul>
  20. 20. 7 P’s of Tourism Marketing <ul><li>Price </li></ul><ul><li>Place </li></ul><ul><li>Product </li></ul><ul><li>Promotion </li></ul><ul><li>People </li></ul><ul><li>Process </li></ul><ul><li>Physical Evidence </li></ul>
  21. 21. People <ul><li>Know who your target market is </li></ul><ul><ul><li>traveller or </li></ul></ul><ul><ul><li>tourist? </li></ul></ul>
  22. 22. People - Employees <ul><li>A tourism organisations most valuable resource </li></ul><ul><ul><li>Physical appearance, behaviour, knowledge and attitude has a powerful impact on customers perception of the tourism product </li></ul></ul><ul><ul><li>Ensure uniform, grooming etc. conform to branding and target market </li></ul></ul>
  23. 23. People - Employees <ul><li>Ensure staff are trained to ensure the product is delivered in accordance with the marketing strategic plan. </li></ul><ul><li>Employees physically embody the product and are walking billboards from a promotional point of view – Zeithaml & Bitner (1996) </li></ul>
  24. 24. Process <ul><li>Process is inseparable product </li></ul><ul><ul><li>If any part of the process is found to be unsuitable by the consumer, it could result in a negative evaluation of the whole product. </li></ul></ul>
  25. 25. Physical Evidence <ul><li>Defined as the built environment owned and controlled by a tourism organisation </li></ul><ul><li>The tangible aspect of the tourism product </li></ul><ul><li>May be used to facilitate the service delivery process e.g. layout and signage </li></ul><ul><li>Communicates messages about quality, positioning and differentiation </li></ul>
  26. 26. Think about the layout, colours , furnishings, sound systems at an airport. Physical Evidence