Unit 1 introduction to tourism marketing- approaches relevance and role


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Unit 1 introduction to tourism marketing- approaches relevance and role

  1. 1. UNIT 1 INTRODUCTION TO TOURISMMARKETING :APPROACHES,RELEVANCEAND ROLEStructureObjectivesIntroductionMarketing:Definition and Concepts1.2.1 Evolution of Marketing1.2.2 Sellingand Marketing1.2.3 BusinessPhilosophyFeatures of Tourism MarketingMarketingOrganisationsand ManagersMarketingPlanningLet Us SumUpAnswers to Check Your Progress Exercises1.0 OBJECTIVESAfter readingthis Unit you willbe able to:- understand the definition and concepts of marketingin relation to tourism,have an idea about the relevance of marketing in tourism,differentiatebetween marketing and selling,learn how tb make a marketing plan, anddevelop some skillsfor marketingyour own services.1.1 INTRODUCTIONTourism Marketing is still an underdeveloped area and is often confused with selling. Thetourismindustryis comprised of small enterprises (travelagencies, tour operators etc.) andfew among them actually adopt marketingwhereas sellingis done by all. However, the waytourismmarketismaturing,therelevanceof marketingisbeingacknowledgedmoreandmoreas an important activityfor the successof the enterprise. This is alsobecausecompetitionisincreasing.In the tourism markets (tourist generatingareas or countries)such competitionis getting intense among:countriesto market their destinations,airliies to market their seats,hotels to sellthe rooms, andtour operators to market the packages etc.A similar situation is witnessed at the destinations where competition is emerging inpracticallyevery servicesector, among guides and escorts, restaurants,hotels, transporters,shops, etc. In fact you should remember that there is a tourism market where demand andsupply have their role to pl^ay and the linkagesbetween them have a bearing on marketing.Keepinginviewthenature of the tourismproduct amore pmfessionalapproachtomarketing,isrequired by all the players i n t o ~ mi.e. the government, tourism industry and the hostpopulation. In todays tourism business, marketing is not a requirement of big players likeairlines or hotel chains only but even the smallest enterprise requires it. In this Unit, anattempthasbeen made to acquaintyouwith the basicsof tourismmarketing.The Unit startswith a discussionon the evolution of marketing over the years along with its definition andconcept. It also deals with the making of marketing plan and gives you some hints aboutmarketing your own tourism product or service. The functions and skills of marketing-,,,,n,, I..,..-. , l C ~hnnnA;rn..rcrnA ;..ihnT Tn:t
  2. 2. UnderstandingTourismMnrLt 1.2 MARKETING:DEFINITIONAND CONCEPTSGenerally, when people are asked what they understand by marketing, we get mixedresponses. ~ o & erelate it with selling and advertising, some with public relations. Very fewpeople understand that marketing is related to a variety of things like needs assessment ofthe consumers, marketing research, product development, pricing and distribution, etc.Everyone has their own perception of marketing and he or she understands or interpretsmarketing in relation to their own activities.It must be noted here that marketing is muchmore than sellingor promotionof a product. In fact they form onlyone aspect of marketing.On different occasions, various definitions of marketing have been provided by variouspeople. Most of these definitions are individual variations within the larger marketingconceptthat marketingis consumer and profit-oriented. According to Philip Kotler:"Marketing is the analysis, planning, implementation, and control of carefullyformulated programs designed to bring about voluntary exchanges of values withtarget markets for the purpose of achieving organisational objectives. It reliesheavily on designing the organisations offering in terms of the target marketsneedsand desires,and on using effectivepricing, communication,anddistributionto inform, motivate, and semce the markets".After givingthis definition Kotler suggeststhat severalthingsshouldbe taken note of in thisdefinition:1) It isamanagerial processwhich involvesanalysis,planning,implementationandcontrol.2) Marketingcan alsobe identifiedas asocialprocesswhich identifies, expendsand servesthe material needs of a society.3) Marketing is not just taking random actions to achieve desired responses. On thecontrary,it manifests itself in carefullyformulated programmes.4) Marketingattemptsto bring about voluntaryexchangesof values.I5) Marketing means the selection of targlt markets rather than an attempt to serve everyimarket.Ii6) Marketing depends on designingthe organisations product or servicein terms of theneeds and desires of the target markets (consumers). 1I7) Thepurposeofmarketingistoassistorganisationsin theirsurvivalandgrowthbyserving !their marketsmore effectively.Besides Kotlers definition of marketing, we give you here certain other definitions also.Accordingto the British Institute of Marketing, marketingis defined as :"The management process responsible for identifying,anticipating and satisfyingcustomer requirements profitably".Some scholars have attempted to define marketing in relation to tourism. For example,Krippendorf mentions that:"Marketingin tourism is to be understood as the systematicand co-ordinated execution ofbusiness policy by tourist undertakings whether private or state owned at local, regional,national or internationalleveltoachievethe optimalsatisfaction of the needs of identifiableconsumer groups, and in doingso to achieve an appropriate return".At theWorldTourism Organisation seminar,heldinOtawain 1975,onTestingEtYectivenessof Promotional Campaigns in International Travel Marketing,marketingwasdefined as"amanagement philosophy which, in light of tourist demand, makes it possible throughresearch, forecasting, and selection to place tourism products on the market most in linewith the organisations purpose for the greatest benefit".Threeaspectsare suggestedin thisdefinition:
  3. 3. 1) Marketing is a thought process related to a situation which matches and balances theneeds of the touristswith the needs of the destinationor the needs of the organisationsdesigning and providingtourism related services.2) Tourism research is aninherent part of tourism marketing which culminates in theidentification and selectionof target marketsbased on market segmentation.3) In order to have a proper placement of tourism products and services, the marketingconceptsof positioning and product life cycle are of great significance.I Alastair M. Morrison stressed on the systems approach and accordingto him :"Marketingis a continuous, sequential process through which managementin thetourism industry plans, researches, imnlements,controls, and evaluatesactivitiesdesigned to satisfy both customers needs and wants and their own organisationsobjectives. To be effective, marketing requires the efforts of everyone in anorganisation and can be made more or less effective by the actions ofcomplementaryorganisations".As per this definition,marketing is an ongoingconcern forany organisation in tourism andit should not be treated as a one-time effort only. Further, it stresses that marketing is theI concern of everyonein the organisation and not only of the marketing department.!An analysis of the above definition of marketing makes it clear that tourism marketing, farI from being a separate discipline, adopts the basic principles of marketingwhich have beendeveloped and practiced in relation to the marketing of other consumer products andservices. You must rememher here that as a tourism professional, you should be able todifferentiatebetween the popular use of the term marketing and the professional term ofmarketing used by marketing managers, the best example of which again, is described byKotler:"Marketing is the organisations undertaking of analysis, planning,implementation, and control to achieve its exchange objectives with its targetmarkets".It must be noted here that marketing in its most simpleform can be described as a processof achievingvoluntary exchangesbetween customersand producers. And, againin Kotlerswords, it is:"Effective management by an organisation of its exchange relations with itsvarious markets and publics".It must be remembered here that the effective management in marketing involves amanagement decision process which is focussedon the customer decisionprocess. All theconcepts of marketing are applied keeping in view the customers needs, wants and tastes.In our case, the customer king the tourists. At the same time, the producers of tourismproductsand servicesdo influencethe prospective customersto choosetheir products. Herecomes the role of promotion, advertising and selling. But it should be remembered that theentireprocessof marketingstartsmuch beforethe actualsellingof theproduct or theservice.Before we go further, let us try to understand certain other aspectsrelated to markqting.12.1 Evolution of Marketing.Theterm marketinghasbefenin use forthe last30yearsor so.The developmentof marketingin factisthe outcome of certainsocial andbusinesspressures. In 1960,Keith mentioned thatthe growing recognition of consumer orientation will have far- reaching implications forbusiness,achievinga virtual revolution in economicthinking". Thoughthe word marketingcameintouse inthe20thcentury,initiallyitwaslinkedwithanumber of looselyrelated factorsfor achievinga sale. Consumer orientation, accordingto Keith, started to be accepted as abusiness concept onlyfrom the 1950s.Gilbert and Baileymentionedthree distinct stages inthe developmentof marketing and modern business practices :1) In the production era stage, the management focus was on increasing efficiency ofproduction and supply of products to the markets with the emphasis on consistentlyreducingcosts.Thismeant developinga standardisedproduct to be offeredat thelowestprice.Introductionto FourismMarketingProdcuct Life Cycle meansthat a product passesthrough a specificsequenceofstages:Stages SalesInfancy : lowGrowth : rapidlydingMaturity : peakDecline : decline
  4. 4. Understanding ouri ism 2) The second was the sales era stage. Under this stage, the organisations attempted toMarket influence demand by adopting more effective means of selling and increasing theirknowledge about different markets to improve their sales techniques.3) The earlier two stagesgot reversed in the third stage i.e. the marketing era. The crucialshift came when organisations started to produce what they could sell rather thanattempting to sellwhat they produced. This was the consumer-orientedapproach.Thecustomers needs, wants, tastes and satisfaction were recognised as the key factors inplanning and designingof the product which the organisationwas to produce andoffer.There were various factors that led to the emergenceof the marketing era which have beendescribed by Chris Cooper, John Fletcher,David Gilbert and Stephen Wanhill in relationto tourism in their book Tourism-Principlesand Practices :1) The increasesin demandwere at a lowerrate than the risesin productivity. For example,there was an oversupply of:accommodationat certain destinations,aircraft seatson important routes, andtourism suppliers.ThTSbfwss&the competitionin the markets alongwiththe risks. The need forsurvivaland growth led the pmdwxgs of tourism servicestowards consumer orientation. Theyselected their markets, attempted to umkstand the consumers needs and tastes andstarted designing products which suited the con sum^.2) The purchasing power of the consumer was going up and a need was felt to h d e pmethods for creatingand changing consumer attitudes and beliefs.3) The increase in travel, particularly the emergence for long haul traveller, created theneed for marketing research regarding information on market trends, understandingconsumer behaviour and evaluating the levels of satisfaction of the users of tourismproducts and services.4) Economic and social development led to the segmentation of mass market intospecialised target markets. The business in tourism was dominated by small companiesforwhom it was difficultto reach and cater to the mass market. Thisfurther encouragedthe need for cateringto selectedtarget markets.Today, marketing techniques are used by practically all segments of the tourism industrywhich include both profit-making as well as non-profit making organisations. In a way thechanges which have been taking place in relation to the consumer attitudes, market forcesand the producers of tourism products have madeit essentialto adopt marketingtechniquesor else it is difficult for the organisationsto survive in the competitive situations.1.2.2 Selling and MarketingIt,wasmentioned earlier that many persons confusemarketingwith sellingwhereas they aretotally differsent.This difference has been describedby Levitt as follows:I"Sellingfocuses on the needs of the seller; marketing on the needs of the buyer.Selling is preoccupied with the sellers need to convert his product into cash;marketing with the idea of satisfying the needs of the customer by means of theproduct and the whole cluster of things associated with creating, delivering andfinallyconsumingit".Thus, according to the sales concept orsales orientation, an organisation believes that thesize of the market canbe increasedby increasingthe sellingeffort. Suchan organisationdoesnot changes its product according to the consumer needs but on the contrary increasesitsadvertising,personnel selling, sales promotion and other demand-creatingactivities for theproduct. The aimisto achieve profitsby increasingthe volume of sales.Accordingto Kotler:"Asales orientation holds that the main task of the organisation is to stimulatetheinterests in consumers in the organisations existing products andservicesn.
  5. 5. lntroductionto TourismMarketing .Physical Access.Travel OrganisersTour Operators,Travel Agents,OthersDestination OrganisationsRegional Tourist OfficesMarketing Influence(MarketingMix)Product Supply(destinations)Fig. 1: The Systematic links between demand and supply and the influenceof marketingin tourism.Source: Rased on Victor T C.Middleton. Marketine in Travel and Tburlsm Oxford 1997Market Demand(areas of origin)VisitorsTouristsExcursionistsInternational: DomesticActivitiesAttractionsAccommodationOther facilitiesAbTransportationAirRoadSeaRail
  6. 6. UnderstandingTourismMarketContrarytothis,inthe marketconceptormarket orientation,thefocusisoncustomerneeds;where marketing is utilised to gain profits through customer satisfaction. According toKotler:"A marketing orientation holds that the main task of the organisation is todeterminethe needs and wants of target markets and to satisfy them through thedesign, communication, pricing, and delivery of appropriate and competitivelyviable productsand services".FOCUS MEANS ENDSALES Selling1 throughsalesCONCEPT Promotion volumeFOCUS MEANSFig. 2: The Sales and MarketingConcepts compared.Source: Chris Cooper,et al, TourlsrnPrinciples and ~ractlle,London, 1993.ProfitsMany organisations in tourism go by the product orientation approach which according toKotler means:"Thatthe major task of an organisation is to pursue efliciency in production anddistribution".MARKETINGCONCEPTHere the emphasisis on the available servicesof products.This approach does not take intoaccount the consumers needs or attitudes etc. Similarly,the selling orientation focusses onthe needs of the seller and ignores the needs of the tourists. It is here that the marketingorientation offers a totally different approach where the tourists needs and wants etc. aretaken care of. This has been described by some as an exercise of "puttingyourself in thetourist shoes".IntegratedMarketing1.2.3 Business Philosophythroughcu.tomersatisfactionIt canbe saidthat marketingisabusiness philosophyinwhichthe consumerandhislherneeds. areintheforefrontof alltheactivities.For example,you mayhaveaverygoodtourism productbut ifthe accessto the product is difficult, there is no accommodationinfrastructure,leisureand entertainment facilitiesare missing, the product oriented approach in marketing mightfail.Thisis because the tourist is notjyst goingto the destinationbecauseofits attractionbutalsoneeds fast access,accommodation,leisure and entertainment facilities,etc. At the sametime the touristshave their own needs, preferencesand tastes.PromotionI SalesICustomerneedsFig. 3: ProductOrientedOrganisationFlg. 4: Systems/Technology-OrientedOrganisationTechnology1 ProductFormulation CreationSimilarly,the systems oriented organisation also can fail. Cooper et a1 have observed thatthe type of organisationsmentioned in Fig. 3and 4 can land with having a wrongproduct forthe market. Suchorganisationsbusinessphilosophyisthat theirproducts areacceptableandwhat isreiuired isidentificaa~baof marketsandmethodsof selling. SuchbusinessphilosophyA promotion 147
  7. 7. Iworks only when there is shortage of supplyand little competition. These organisationsgofor improvementswith the organisationsrather than concentratingon the touristsneqds.IAccordingtoCooperet al the idealapproach for organisingbusinessin the "moderntourismmarket place"is as per Fig. 5 and 6.IIFig. 6: Integrated OrganisationMarkelingResearch-MarketingResearch*Figures3 to 6 arebased on ChrisCoopers,eta4TourismPrlnciple~and PmcticeProductCreationL, These approaches are governed by market research to provide an understanding of thei tourists,market placeandthebusiness. Thedevelopmentof productsandpromotionisbasedon the feedback from the consumers. This, in a way ensures the successof the products inthe markets and the marketing budget is efficientlyutilis6d for customer satisfaction.f tFig. 5: Market Oriented OrganisationProductCreationA consumer oriented market philosophybrings the organisationnot onlya goodimagein the-market but alsoa reputed market standing. In tourism every tourist wants to be treated as aspecialconsumerand anyorganisation cateringto this attitude of thetouristwill naturallybeahead of other competitors.At the sametime the consumer orientedmarkM philosophyhastogodeepintothemindsof the decisionmakersandemployeesof theorganisation.Thetasksto be undertakenby the organisation should include:IProduct formulationand company-widemarketing principalsincorporated1) Identifyingthe needs of tourists. This is done through marketingresearch.2) The market opportunitieshave to be analysed through market segmentation.3) The needs of the touristshave to be translated into products through product planningand design.4) The value of tourism products and servicesisto to determinedthrough a pricing policy.5) The product has to be made availableto the customers (tourists)through distribution,6) The tourists have to be informed and motivated through promotion which inclidesadvertisingand selling.Marketingalsohasadevelopmentalroleandtodaysocialmarketingandsociallyresponsiblemarketingare emerging as marketing specialisations(See Block-3).1.3 FEATURES OF TOURISM MARKETINGThe marketing of tourism is different from other products because tourism is a serviceproduct where instead of selling physical goods an intangible experience is sold. In Unit-4of TS-3you have already been acquainted with the characteristicsof the tourism services.However,verybrieflywe once again mention certain aspectsof the tourism product:It is not possible to evaluate or demonstrate the tourism product in advance. This isbecausetheservices are consumed and felt at the sametime.Thetourist not onlybuys the product but also feelsthe product and is involvedin it.r The tniiricrn nrndiirtc rannnt h e ctnredIntroductionto TourismMarktUng
  8. 8. Understanding Tourism The tourist buys the experience and does not own the product.MarketThe tourism product is a combination of several services.In the designing and packaging of a tourism ~roducta number of intermediaries areinvolved.Bad experienceat one level can spoil the entireimage of the product or service.The demand in tourism is highly elastic and seasonal in nature.Some of the problems faced by the tourism industry for the purposes of marketing are therebecause of its own lack of efforts in the area. For example, few in the industry go for marketresearch as the industry is dominated by smallbusiness which lacks in both expertise as wellas resources for adopting a marketing approach. Most of the time a short term outlook isadopted rather than a long term approach. The presence of too many intermediaries effectsquality controls and leads to consumer dissatisfaction. The resource crunch effects themarketing efforts, particularly for making a presence in the international markets. Theapproach adopted by the organisations is to deal through intermediaries rather thanapproaching the market on their own. The consumer of the tourism products and servicesin future is going to be different from that of today. The emergence of specialised tourismis going to make more demands on the industry in relation to the consumer needs.Competition is already on the increase and hence more and more consumer satisfactionwillbe the key to success. A major challenge for tourism marketing is coming in the form ofconsumerprotectionlaws and eco-friendlydestinations. Time is not far when in spite of thebest marketing efforts if consumer protection and unpolluted environment donot form a partof the marketing package, the destination, product or service is bound to be adverselyeffected.CheckYour Progress-11) What do you understand by marketing?2) What is the differencebetween sellingand marketing?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3) Discuss the features of the tourism marketing.
  9. 9. 1.4 MARKETING ORGANISATIONS AND MANAGERSWe have mentioned earlier that marketing is concerned with everyone in the organisation.However, in thc entire organisation there is a need for having a marketing department or,divisionor in the case of very smallbusiness a person assigned to look after marketing.Sincemarketing is concerned with product design and development, pricing, promotion and.distribution,all activitiesrelating to these four basic dimensions are a part of the marketingfunctions. Marketing organisations are designed keeping in view the various marketingfunctionswhich may include a MarketingDirector with managers at differentlevels and fordifferentactivities.For example:I Marketing Research Unit,1 Marketing Planning Unit,I Advertisingand Promotion Unit,I Public Relations Unit, andProduct Development Unit, etc.A marketing organisation starts its work by identifying the customer needs through theconduct of market research; monitors the changing preferences of the customers;developsnewideas; monitors the market standingand competition; influencesthe pricing policy anddistribution strategies,etc. Accordingto Stephen Morse:"TheChief Marketing Executive has a dual role. The exercise of skill is necessarynot only in trying to persuade the more down- to-earth managers to look up fromthe furrow fora minute to see how far they havegot andwhere they aregoing. Hisskill has also to be exercised in making a diagnosis of the detailed results ofmarketing activities so as to derive objectives for individual functions withinmarketing: marketing research, product management, sales force, saleslorderoffice, advertising and sales promotion, physical distribution,marketing services(such as forecasting and pricing), after-sales service, and ancillary services suchas sales training."IIIn the following Table we give you the job positions and job descriptions in a full scalemarketing department as envisised by Philip Kotler.II Table: Generic MarketingPositionsIMarketingManager1) Other names: Vice President of Marketing, Marketing Director, Chief MarketingOfficer, Marketing Administrator.2) The Marketing Manager heads the organisations marketing activities. Tasks includeproviding a marketing point of view to the top administration; helping to formulatemarketing plans of the organisation; staffing, directing, and coordinating marketingactivities,and proposing new products and services to meet emerging market needs.<,Product Manager1) Other names: Program Manager, Manager,Brand Manager.2) A Product Manager is responsiblefor managing a particular product or program of theorganisation. Tasks include proposing product objectives and goals, creating productstrategiesand plans,seeingthat theyare implemented,monitoringtheresults, and takingcorrective actions.Marketing Research Manager1) Other names: MarketingResearch Director.2) The Marketing Research Manager has responsibility for developing and supervisingresearch on the organisations markets and publics, and on the effectiveness of variousmarketingtools.Introductionto TourismMarketing --"ARmpnsiveOrganisationisone thatmakes everyeffod tosense, serveaqd saUsfy Uleneedsandwants of itsclients and publicswithinthe constrninkof itsbudget"-Philip Kotler
  10. 10. Undustpndlng T6urlsmMarketCommunications Manager1) Other names: AdvertisingManager,Advertising and Sales Promotion Director.2) The Communications Manager provides expertise in the area of mass and selectivecommunication and promotion. Person is knowledgeable about the development ofmessages,media and publicity.Sales Manager1) Other names: Vice President ofSales.2) The Sales Manager has responsibility for recruiting, training, assigning, directing,motivating, compensatingand evaluatingsalespersonnel and agentsof the organisationand coordinatingthe ~ o r kof SalesPersonnelwith the other marketingfunctions.New Products Manager1) Other names: New Products Director.2) The New ProductsManagerhas responsibilityfor conceivingnew products and service;screening and evaluating new product ideas; developing prototypes and testing them;and advising and helping to carryout the innovations introduction in the market place.Distribution Manager1) Other names: ChannelManager, PhysicalDistribution Manager, LogisticsManager.2) The DistributionManager has responsibilityfor planning and managing the distributionsystems that make the organisations products and services available and accessible tothe potential users.Pricing Manager1) Other names: PricingExecutive.2) The Pricing Manager is responsible for advising and/or setting prices on theorganisations servicesand programs.Customer Relations Manager1) Other names: Customer ServiceManager,Account Manager.2) TheCustomerRelationsManagerhasresponsibilityfor managing customerservicesandhandling customer complaints.Government Relations Manager1) Other names: LegislativeRepresentative,Lobbyist.2) The Government Relations Manager provides the organisation with intelligence onrelevant developments in government and manages the organisations program ofrepresentationand presentationto government.Public Relations Manager1) Other names: PublicAffairs Officer.2) The PublicRelations Manager has responsibilityfor communicatingand improvingtheorganisationsimage with variouspublics.TerritoryManager1) Other names: Regional Manager,District Manager.2) The Territory ivianager has responsibility for managing the organisations products,servicesand programs in a specific territory.
  11. 11. This explainsthat the main tasks to be performed by marketing managers at different levelsinclude:planning and control tasks,E1 executive tasks, andcoord&atingtasks.However, in small organisations marketing is the responsibility of the proprietor or theentrepreneurial manager. Stephen Morse has mentioned four major obstacles which canfrustrate the attempts of a marketing manager to influence the organisations planningprocess. These are:1) A lack of commitmentto forward thinking from the Chief Executive.2) Planningmaybe donebysomeonewhoisnotin themainstreamand doesnot understandrealities of the business.3) Market analysisis ignored and add 10%syndrome takes precedence.It4) .The organisation moves on the basis of a few good ideas which tend to obscure andioverwhelm well grounded planning.Here the views of SimonMajaro are worth quoting:"Thefirst task in developingan effectivemarketingfunctionis an educationalone.Marketing cannot thrive in an organisation which is unable or unwilling toappreciatethe immense value that the function can impart to its overall success.Moreover marketing has an enormous number of interface areas with otherfunctions, and if the non-marketingpersonnel do not fully understand theseinterfaces it is difficult to see how marketing can attain its legitimateposition inthe firm.Problems apart, a Marketing Manager must possess the followingpersonal qualities to be asuccessfulpractitioner:He or she should be very cnergetic,active, competitiveand aggressiveby nature.He or she should be creative in terms of seekingnew opportunities and to exploit themfor the organisations benefit.He or she should be a good communicator, presenter and advocate.He or she should have the skill ana confidence to analyse, appreciate and interpret thedata in relation to marketing.He or she should have the quality of judgement for taking marketing decisions andevaluatingrisks, besides being a good administrator and strategist.He or she must develop a marketing orientationalongwith sensitivitytowards consumerneeds and attitudes.- - - - - -1.5 MARKETING PLANNINGA MarketingPlan is a structured guideforcarryingoutmarketingoperations. The purposesof a marketingplan include:Providing a well laid down policy and clear directionsfor the marketingoperations.coordinatingatheresources of the organisation ih order to eliminate confusion andmisunderstandingand achievingcooperation.Identifying the strengthsand weaknesses through the SWOTanalysis.Identlfyingdifferentmarket segments.Settingtargets, andAdd 10% syndromemeans that thepreviousyearsobjectivesandstrategies arc carriedfonvardby simplyadding 10%lo revenueexpectationsandcostbudge&Pointingout the controls,areasof diversification,competitorsstrengthsandweaknesses,P ~ P
  12. 12. ~nders(nndi~~g~ourisrn Different aspectsof marketingplanningwillbe dealt with in the various Units and BlocksofMarketthis course. However, in this Section we only point out the issues to be addressed whilemaking a MarketingPlan. Theseinclude:1) Definingthe marketingobjectives and goals of the organisation alongwithan executivesummaryof these.2) It shouldtakeintoaccountthesituationanalysis. Thistakesintoaccountthebackground,forecast, opportunitiesand threats and strengths and weaknesses.3) Based on these,aspects a marketing strategy is devised taking into account the targetmarkets, marketing mix and the levels of marketing expenditure, i.e., the marketingbudget.4) Next step involvesthe action programmekeepingin view a timeframe.5) The marketing plan should also specify the methods of monitoring and controls. Thisshouldtake into account:salesanalysis,market share,Imarketingexpenses,andIcheckingcustomer attitudestowards the.organisations products and services.ILately, organisationshave been increasinglyusing marketing auditsfor assessingmarketing1iopportunitiesand operations. Accordingto Kotler:"A marketing audit is a comprehensive, systematic, independent and periodicexamination of an organisations marketing environment, objectives, strategiesand activities with a view of determining problem areas and opportunities andrecommending a plan of action to improve the organisations marketingperformance."CheckYour Progress-2n1) Mention the skillsrequired for becominga marketingmanager.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2) How would you make a marketingplan?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-
  13. 13. IntroductionbTourism1.6 LET US SUM UP MarketingTbisUnit gave you an idea about the differentaspectsof marketing. You were made awareof the different definitionsof marketing. However, allthese definitionscentre around onetheme i.e., customers needs and wants. You must remember that marketing is not meantonly for large organisations,it is also crucial for smallbusiness and services. Many a small,business suffer losses or close down because of lack of marketing understanding andapplication. You can relate the generalconceptsand techniques of marketing to your ownenterprisekeepingin viewthe conditions and situationsunder whichyou operate.1.7 ANSWERS TO CHECK YOURPROGRESS EXERCISESCheckYour Progress-1r1) Take note of the variousdefinitionin Sec. 1.2and answer in your ownwords.2) Base your answer on Sub-sec.1.3) Mention the features discussedin Sec. 1.3.CheckYour Progress-2E1) Various skillshavebeen mentioned in Sec. 1.4.2) Attempt it by readingSec. 1.5.Market Slandlng: Checklistof Questions1) Is the market we are is increasingor decreasing?2) At what rate per year? Compared to externalenvironment (e.g. GNP)?I3) What is our share of the market (bearingin mind the need to be very clear about marketdefinitions)?4) What are the importantattributesof the product?from the point of view of production?from the point of veiw of advertising?fromthe point of view of the buyer?fromthe point of view of the user?5) Who makesthe buying decision?I6) Are we dependent on a few customers?I7) What are the strengths and weaknesses of main competitors?I8) Where isthe product bought? (distribution system)9) How logicalis our product range?10) What is the price structure?I
  14. 14. 11) How effectiveis our salesorganisatiop?a territories,I . a ordervalue,I a costsper product,1 a cosperarea,a successratios.12) Where are our productsmtheirHe cycle?)l.3) Are newproducts underdevelopment?Source: StephenMorse,ManagementSkills inMarkelin&1982.