Tourism Marketing

Tourism Marketing©Ramakrishna Kongalla

R'tist@Tourism, Pondicherry University 2

• CCDD – Create, Communicate, Deliver & feedback– Marketing means achieving the

firm's goals by identifying the needs and desires of consumers, and then satisfying them better than competitors.

– Tourism marketing is the application of marketing concepts in the travel and tourism industry.

– Tourism marketing could be complex due to the product being an amalgam of many different industries such as accommodation and transportation.

– The markets also vary widely, and determining the consumers' preferences could be difficult.

• Definition– the organized, combined efforts

of the national tourist bodies and/or the businesses in the tourism sector of an international, national or local area to achieve growth in tourism by maximizing the satisfaction of tourists. In doing so, the tourist bodies and businesses expect to receive profits

• Product– climate, history, culture,

amenities, – The tourism product is the sum of

all the factors in an area that can result in consumer satisfaction.

– A tourist or his travel agent combines the different components to get his own tourist product.


• Characteristics– intangible – Consumption happens at

once– consumer relies on pre-

purchase information to make his decisions because he has no option to see

– different producers are involved to create and market the product

– Demand is seasonal– motivations of consumers

vary widely– Intermediaries such as

travel agents have a strong control over product design, distribution, promotion and pricing

– High fixed costs are often involved, resulting in the use of short-run marketing

• Features– involves several steps– Market research seeks to understand the consumer– product development aims to meet his needs– Analysis and selection of target markets, also

known as segmentation, means studying potential customer groups and selecting only certain groups whose needs and wants can be best met with a certain producer's product

– Marketing strategy seeks to reach the target markets using promotion, advertising, pricing and distribution.

• Communication– occur in three ways: external, internal and word-of-

mouth– External marketing uses formal communication

channels to promote the tourism product to the traveler, boasting of its benefits and making promises

– Internal marketing communication occurs when the tourism service provider makes contact with the tourist and delivers the promised benefits.

– Word-of-mouth communication occurs informally when visitors or employees discuss their experiences of the tourism product to others.


SWOT analysis of Tourism

• Strengths– Vast geography with forests,

deserts, mountains & beaches.– Varied culture.– Many historical monuments.– Knowledge of English by majority

of local people.– Efficient transport facilities.

• Weakness– Lack of adequate infrastructure.– Safety and security of foreign

tourists.– Misconception about India by

foreigners– Lack of maintenance of

monuments, forts etc.– Many languages and dialects.

• Opportunities– Increased privatization.– CWG 2010, Grandprix2011– Medical tourism.– Go-green initiative.– World-class hotels and

airports

• Threats– Terrorism.– Tensions with Pakistan.– Better promotion by other

countries.– Economic slowdown.


PEST analysis of Tourism


Core concepts in Marketing

• Needs– state of felt deprivation

including physical, social, and individual needs.

• Wants– Needs become wants when

they are directed to specific objects that might satisfy the need.

• Demands– Wants + buying power

• Needs and Wants Fulfilled through a Marketing Offer :– Some combination of

products, services, information, or experiences offered to a market to satisfy a need or want.


• Target markets & segmentation– Differences in needs,

behavior, demographics or psychographics are used to identify segments.

– The segment served by the firm is called the target market.

– The market offering is customized to the needs of the target market.

• Market– The Marketplace is

physical, as when one goes for shopping in a store.

– Marketspace is digital, as when one goes shopping on the internet.

– Metamarket is described as a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries.


Marketing Management Philosophies

• The Production Concept– The production concept holds

that customers will favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency.

– The production concept is useful when:

• 1) Demand for a product exceeds the supply.

• 2) The product's cost is too high and improved productivity is needed to bring it down.

– The risk with this concept is in focusing too narrowly on company operations. Do not ignore the desires of the market.

• The Product Concept– The product concept states that

consumers will favor products that offer the most quality, performance, and features, and that the organization should therefore devote its energy to making continuous product improvements.

• 1. Some manufacturers mistakenly believe that if they ``build a better mousetrap'' consumers will beat a path to their door just for their product.

• 2. The product concept can also lead to “marketing myopia” the failure to see the challenges being presented by other products.


• The selling Concept– Many organizations follow the

selling concept. The selling concept is the idea that consumers will not buy enough of the organization's products unless the organization undertakes a large-scale selling and promotion effort.

• 1. This concept is typically practiced with unsought goods (those that buyers do not normally think of buying).

• 2. To be successful with this concept, the organization must be good at tracking down the interested buyer.

• 3. Industries that use this concept usually have overcapacity. Their aim is to sell what they make rather than make what will sell in the market.

• 4. There are not only high risks with this approach but low satisfaction by customers.

• The Marketing Concept– The marketing concept holds that

achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

– The marketing and selling concepts are often confused. The primary differences are:

• 1) The selling concept takes an 'inside-out'' perspective (focuses or existing products and uses heavy promotion and selling efforts).

• 2) The marketing concept takes an ``outside-in'' perspective (focuses on customer needs, values, and satisfactions).

– Many companies claim to adopt the marketing concept but really do not unless they commit to market-focused and customer-driven philosophies.


• The Societal Marketing Concept– The societal marketing concept holds

that the organization should determine the needs, wants, and interests of target markets. It should then deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer's and the society's well-being.

• 1) The societal marketing concept is the newest of the marketing philosophies.

• 2) It questions whether the pure marketing concept is adequate given the wide variety of societal problems and ills.

• 3) According to the societal marketing concept, the pure marketing concept overlooks possible conflicts between short-run consumer wants and long-run consumer welfare.

• 4) The societal concept calls upon marketers to balance three considerations in setting their marketing policies:

– a) Company profits.– b) Customer wants.– c) Society's

interests.• 5) It has became good

business to consider and think of society's interests when the organization makes marketing decisions.


Economic importance of Marketing

• Generation of revenue– profit generation and marketing is the only

source to meet its expenses and earn profits.– survival and growth of the business enterprise

depends on the effectiveness and efficiency of marketing.

• Customer satisfaction– Marketing helps to identify and satisfy the needs

and wants of consumers. – Customer satisfaction has a important role in

marketing without which a business can’t be successful.

• Employment Generation– marketing offers challenging and rewarding jobs

to a large number of persons. It also generates employment in production by enlarging the scale of distribution and production.

• Higher standards of living– Marketing is helpful in improving the standard of

living of people by offering a wide variety of goods and services with freedom of choice. It has modernized the living standards of people through the supply of quality products at reasonable price.

• Large scale production– marketing makes mass selling possible and

thereby facilitates large scale production. Economies of large scale production help to reduce the cost of production per unit.

• Economic Development– Marketing gives a boost to transportation,

banking, insurance, warehousing and other economics activities. It makes the economy strong and stable by balancing production with consumption. In fact, marketing is the kingpin that keeps the economy moving ahead.

• Foreign exchange earner– marketing helps in exploring foreign markets

and in exporting goods and services. It is through marketing that a country earns valuable foreign exchange.

• Creation of utilities– Marketing includes all activities involved in the

creation of place utility, time utility and possession utility. Place utility is created by making goods available at the places where they are needed. Time utility is created by making goods available at the right time. Possession utility is created when goods are transferred to those who need them.


Tourism marketing

• Service Characteristics– Curiosity and desire to

travel– Tourism marketing creates

desire in tourists– Multifaceted activities

produces tourism product– Various sub sectors, that

are in themselves complete industries

– Tourism promotion in various forms in different socio economic structures

– Marketing strategy is must

• Tourism Demand– Highly unstable

• Seasonal • Economical• political

– Facilitators– Motivators– resistance factors

• characteristics– Price elasticity –

responsiveness of demand to change in price

– Income elasticity – increase in individual’s income will not necessarily mean an increase in travel demand. May result in an increase in quality product or destination.


• Tourism Product– Intangible, irreversible, perishable, lack of ownership,– Heterogeneity, Non-material, consumed where produced, – multiplicity of producers, highly unstable demand,

dominant role of intermediaries, motivations.

• Tourism Demand Determinants


Tourism Marketing mix

• 8 P’s in Tourism– Product– Place– Price– Promotion– People– Process– Productivity & Quality– Physical Evidence

• 1.Product– Accommodation– Attraction– Transportation– Recreation– Shopping– Restaurant

• 2. Pricing– Cost– Demand– Competition– Duration– Mode of transport– Peak/Non-peak season– Destination


• 3. Promotion– Different states highlighting about

their features.E.g. – 1. Kerala- ‘God’s own

country’Highlighting about backwaters, ayurveda, elephants, houseboats, beaches etc.

– Incredible India’ and ‘Atithi Devo Bhava’ are taglines of Indian Tourism

– ‘Our guest is blessed’ and ‘Our visitor is god’

– Aamir Khan as brand ambassador for ‘Atithi Devo Bhava’ for Indian tourism.

– Use of websites to sell tourism.– Brochures, pamphlets, ads in

newspapers.– E.g. Raj, Kesari and Thomas Cook.

• 4. Place– The ‘destination’ is the important aspect in

place.– Travel agents, tour operators etc. are

distribution points.– Proper infrastructure, transport and

communication.

• 5. People– Role of people is very important in any

service.– In tourism, people involved are travel agents,

guides, airline crew members, receptionist in hotel etc.

– Contacts with people may be high, medium or low.

• Examples:1. In case of airlines:- The passenger will have high or medium

contact with the air-hostess, ground-staff where as low or no contact with the pilot.

2. In case of railways:- The passenger will have high or medium

contact with travel agents or ticket issuer but low or no contact with the loco pilot.


– Travel agents should provide best deals to customers after understanding their requirements.

– Guides should have in-depth knowledge about the locations, monuments, forts, history etc.

– Employees should deliver what the company promises to the customer.

– Physical appearance of guides also matters a lot.

• 6. Process


• 7. Physical Evidence • 8. Productivity & Quality– It involves positioning

the process, the overall destination, the intangibles etc.

– It also involves positioning of tourism as National priority.


Tourism Demand Modeling and Forecasting

• Tourism demand modeling and forecasting are very important for tourism-related business decision making– Stock effect, – market response effect

Analysis• Tourism demand can be measured

in terms of• number of tourist visits from an

origin country to a destination country

• tourist expenditure by visitors from the origin country in the destination country

• tourist nights spent by visitors in the destination country

• the explanatory variables for tourism demand include origin country income, destination country tourism prices, substitute destination country tourism prices, tastes, etc. Empirical studies usually use living costs for tourists in the destination as the tourism price. Various demand models can be used to estimate and forecast tourism demand.

• modeling tourism demand in a vector autoregressive (VAR) framework, to forecast the number of holidays spent by non residents


Methods that rely on qualitative assessment– Unaided judgment– Prediction market– Delphi technique– Game theory– Judgmental bootstrapping– Simulated interaction– Intentions and

expectations surveys– Conjoint analysis

Methods that rely on quantitative data– Discrete Event Simulation– Extrapolation– Quantitative analogies– Rule-based forecasting– Neural networks– Data mining– Causal models– Segmentation


Managing capacity and Demand

• Capacity Constraints– Time, labor, equipment

and facilities– Optimal versus maximal

use of capacity

• Demand PatternsCharting demand patternsPredictable cyclesRandom demand

fluctuationsDemand patterns by

market segment


Market segmentation– segmentation is the process

of: – (1) taking existing and/or

potential customers/visitors (market) and categorizing them into groups with similar preferences referred to as "market segments;"

– (2) selecting the most promising segments as "target markets;" and

– (3) designing "marketing mixes," or strategies (combination of the 4 Ps), which satisfy the special needs, desires and behavior of the target markets.

no unique or best way to segment markets, but ways in which customers can be grouped are: – (1) location of residence---

instate, out-of-state, local; – (2) demographics---age, income,

family status, education; – (3) equipment ownership/use---

RV's, sailboats, canoes, tents, snowmobiles;

– (4) important product attributes---price, quality, quantity; and

– (5) lifestyle attributes---activities, interests, opinions.


Target markets

• After segments have been identified, the business or community must select the "target markets," those segments which offer them the greatest opportunity. When determining target markets, consideration should be given to: – (1) existing and future sales potential of each segment; – (2) the amount and strength of competition for each segment; – (3) the ability to offer a marketing mix which will be successful in

attracting each segment; – (4) the cost of servicing each segment; and – (5) each segment's contribution to accomplishing

overall business/community objectives. • It is often wiser to target smaller segments that are presently

not being served, or served inadequately, than to go after larger segments for which there is a great deal of competition.



Positioning• In marketing, positioning has come to

mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

• Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

• De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

• The original work on Positioning was consumer marketing oriented, and was not as much focused on the question relative to competitive products as much as it was focused on cutting through the ambient "noise" and establishing a moment of real contact with the intended recipient


• primary elements of positioning are: – Pricing. Is your product a luxury item,

somewhere in the middle, or cheap, cheap, cheap.

– Quality. Total quality is a much used and abused phrase. But is your product well produced? What controls are in place to assure consistency? Do you back your quality claim with customer-friendly guarantees, warranties, and return policies?

– Service. Do you offer the added value of customer service and support? Is your product customized and personalized?

– Distribution. How do customers obtain your product? The channel or distribution is part of positioning.

– Packaging. Packaging makes a strong statement. Make sure it's delivering the message you intend.

• Positioning concepts– Functional positions

• Solve problems• Provide benefits to customers• Get favorable perception by investors (stock profile) and

lenders– Symbolic positions

• Self-image enhancement• Ego identification• Belongingness and social meaningfulness• Affective fulfillment

– Experiential positions • Provide sensory stimulation• Provide cognitive stimulation

• Product positioning process– Defining the market in which the product or brand will

compete (who the relevant buyers are)– Identifying the attributes (also called dimensions) that define

the product 'space'– Collecting information from a sample of customers about their

perceptions of each product on the relevant attributes– Determine each product's share of mind– Determine each product's current location in the product

space– Determine the target market's preferred combination of

attributes (referred to as an ideal vector)– Examine the fit between:

• The position of your product• The position of the ideal vector

– Position.


Marketing Environment


Consumer buying behavior

• "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society."

– how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers);

– how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

– The behavior of consumers while shopping or making other marketing decisions;

– Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;

– How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

– How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

• Consumer behavior involves services and ideas as well as tangible products.

• main applications of consumer behavior– marketing strategy—i.e., for making better

marketing campaigns– public policy– Social marketing involves getting ideas across to

consumers rather than selling something. – studying consumer behavior should make us

better consumers

• three ways of analysing consumer buying decisions

– Economic models - These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. See consumer theory. Game theory can also be used in some circumstances.

– Psychological models - These models concentrate on psychological and cognitive processes such as motivation and need recognition. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences.

– Consumer behaviour models - These are practical models used by marketers. They typically blend both economic and psychological models.


General model for Consumer Behavior

• A general model of the buyer decision process consists of the following steps:– Problem recognition;– Information Search– Evaluation of Alternative– Purchase decision– Purchase– Post-purchase

behavior/buyer's remorse (cognitive dissonance)

• AIUAPR MODEL– Awareness– Interest– Understanding– Attitude– Purchase– Repeat purchase


Marketing Competitive Differentiation• Treacy & Wiersema say that there are

primarily three ways in which a company can build competitive differentiation

• Operational Excellence/Cost Leadership– Provide middle-of-the-market

products at the best price and the least hassle.

– Example: Wal-Mart.• Product Leadership

– Provide the best product, period. Continue to innovate year after year.

– Example: Intel, Nike.• Customer Intimacy

– Provide unique solutions to customers by virtue of intimate knowledge of their needs.

– Example: IBM.

• every company that is a leader in its market chooses to differentiate itself on one and only one of these three "value disciplines".

– For example, if a company tries to be the cost leader as well as the product leader in its market - over time, it will end up as neither, Wal-Mart doesn't sell Armanis, Nike doesn't sell cheap shoes, and IBM sells neither the cheapest nor the best products.

• How Durable Is Your Competitive Advantage?• If your company chooses to be a product leader,

continue to innovate year after year– Intel, for example, has sustained product leadership

over a very long period by out-innovating competitors. Dell, likewise, has held cost leadership for the better part of the last two decades.

• Differentiate or Die?– If your company's products are not differentiated in

ways that really matter to your customers, your products may not necessarily die - but they certainly will be commoditized over time and at best will end up as also-ran products.

– Identify areas where your products can have strong, sustainable competitive differentiation and execute to make that the reality. This is one of the biggest values you can add to your company.


Competitive Marketing Strategy• Marketing strategy is a process that can allow an

organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage

• marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year

• Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned

• involves careful scanning of the internal and external environments, Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints

• External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success

• Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation.

• A final step in developing a marketing strategy is to create a plan to monitor progress

• Typically there are four types of market dominance strategies:– Leader– Challenger– Follower– Nicher

• generic strategy framework (porter 1984)– Product differentiation (broad)– Cost leadership (broad)– Market segmentation (narrow)

• Innovation strategies– Pioneers– Close followers– Late followers

• Growth strategies– Horizontal integration– Vertical integration– Diversification– Intensification


New product Development


Product life Cycle

• Discovery– unspoiled" destinations– Explorers

• Launch– incoming tourists increases– host community responds

• Stagnation– host community responds – quality of tourist services falls– demand levels off– environmental degradation – reached 'maturity‘

• Decline– Falling profits – foreign-owned businesses

withdrawing – community is left to "pick up

the pieces"


Customer Satisfaction

• Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation.

• Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."

• Customer Satisfaction in 7 Steps– 1. ENCOURAGE FACE-TO-FACE

DEALINGS– 2. RESPOND TO MESSAGES

PROMPTLY & KEEP YOUR CLIENTS INFORMED

– 3. BE FRIENDLY AND APPROACHABLE

– 4. HAVE A CLEARLY-DEFINED CUSTOMER SERVICE POLICY

– 5. ATTENTION TO DETAIL (ALSO KNOWN AS ‘THE LITTLE NICETIES’)

– 6. ANTICIPATE YOUR CLIENT’S NEEDS & GO OUT OF YOUR WAY TO HELP THEM OUT

– 7. HONOUR YOUR PROMISES



Customer Retention


Strategies in Internal & External Marketing

Internal factor , these involve (5M's)– Management– Manpower– machine– material and– money.

External factors , these include– Macro factor

• micro factors.

• Macro factors are the one that affect the organization indirectly, these are (pestel)– Political– enviroment– socia-cultural– technological and– Ecological– leagal

• while micro factors are those which affect the organization directly it involve– customers– competitors– suppliers and– public


Interactive and Relationship Marketing

• Interactive Marketing refers to the evolving trend in marketing whereby marketing has moved from a transaction-based effort to a conversation.

• “the ability to address an individual and the ability to gather and remember the response of that individual” leading to “the ability to address the individual once more in a way that takes into account his or her unique response”(Deighton 1996).

• Interactive marketing is not synonymous with online marketing, although interactive marketing processes are facilitated by internet technology

• Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions.

• it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages

• Relationship marketing extends to include inbound marketing efforts, (a combination of search optimization and strategic content), PR, social media and application development.

• Relationship marketing is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with clients and sales prospects.



Product & Product Strategies

• The product is defined as a "thing produced by labor or effort" or the "result of an act or a process“

• Tangible and Intangible• Tourism Product – Multi

faceted– Product design– Product quality– Product features– Product branding

A PRODUCT MARKETING STRATEGY– Decide on new

revenue growth and profits– Decide on

new product development.– Decide on price.– Decide on sales

force, distribution, service.– Decide on

customer psychological factors, not features and benefits.

– Decide on product promotion.


• Product Line– A company/organization

creates a group of products, which has in common most of their main characteristics.

– A good way for a company to try to expand its business is by adding to its existing product line. This is because people are more likely to purchase products from brands with which they are already familiar

• Product Mix– Product mix-an

organization creates many products and sells them.

– the product mix is everything organization sells.


Branding & Rebranding

• increase a product's perceived value • increase brand franchise and brand

equity• started at Procter & Gamble• A good brand name should:

– be protected (or at least protectable) under Trademark law.

– be easy to pronounce.– be easy to remember.– be easy to recognize.– be easy to know– be easy to translate into all languages in

the markets where the brand will be used.– attract attention.– suggest product benefits or suggest usage

(note the tradeoff with strong trademark protection.)

– suggest the company or product image– distinguish the product's positioning

relative to the competition.– be attractive.– stand out among a group of other brands.

• Functions of brand– (For consumers) Identification of source of

product, – Assignment of responsibility to product

maker, – Risk reducer, – Search cost reducer, – Symbolic device, – Signal of quality, – Speak personality, – Deliver its value qualitatively and

quantitatively, – Live up to consumer expecatition. – it speaks itself looks are more important

• (For Manufacturers)– Means of identification to simplify handling

and tracing, – Means of legally protecting unique features, – Signal of quality level to satisfied customers, – Means of endowing products with unique

associations, – Source of competitive advantage, – Source of financial returns


Packing

• defined as the wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote, and otherwise make the product marketable and keep it clean.

• Packaging is the outer wrapping of a product.

• It is the intended purpose of the packaging to make a product readily sellable as well as to protect it against damage and prevent it from deterioration while storing.

• Furthermore the packaging is often the most relevant element of a trademark and conduces to advertising or communication

• Functional Requirements– 1. Protection and

preservation – 2. Containment – 3. Communication

• Types of packaging – Transport packing– Consumer Packing


Pricing


Pricing Strategies• Premium Pricing

– used where a substantial competitive advantage exists.

– Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights

• Penetration Pricing.– set artificially low in order to gain market

share. – Once this is achieved, the price is

increased

• Economy Pricing– no frills low price– cost of marketing and manufacture are

kept at a minimum.– Supermarkets often have economy

brands for soups etc

• Price Skimming– Charge a high price because you have a

substantial competitive advantage– However, the advantage is not sustainable– high price tends to attract new

competitors into the market, and the price inevitably falls due to increased supply

Approaches• Psychological Pricing

– to respond on an emotional, rather than rational basis

• Product Line Pricing– Where there is a range of product or

services the pricing reflect the benefits of parts of the range

• Optional Product Pricing– Optional 'extras' increase the overall

price of the product or service

• Captive Product Pricing – companies will charge a premium price

where the consumer is captured

• Product Bundle Pricing– combine several products in the same

package. This also serves to move old stock

• Promotional Pricing– BOGOF (Buy One Get One Free)

• Geographical Pricing• Value Pricing

– external factors such as recession or increased competition


Distribution Channels

• Physical distribution (or place) is one of the four elements of the marketing mix– defined as a chain of

intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user.

• Channels– Distributor, who sells to

retailers,– Retailer (also

called dealer or reseller), who sells to end customers

– Advertisements typically used for consumption goods

• Channel decisions– Channel strategy– Gravity & Gravity– Push and Pull strategy– Product (or service)– Cost– Consumer location

• Type of marketing channel– Intensive distribution - Where the

majority of resellers stock the 'product'– Selective distribution - This is the

normal pattern, 'suitable' resellers stock the product.

– Exclusive distribution - Only specially selected resellers or authorized dealers, are allowed to sell the 'product'.

• Channel motivation• Monitoring and managing channels


Marketing Of Tourism Services


Airlines• the first marketing model, called

PESTE - Political, Economic, Social, Technological and Environmental

• Airline Business and Marketing Strategies - strategic families (from cost leadership to differentiation)

• Product Analysis in Airline Marketing - The product of an airline is split up in several parts: fleet and schedules, customer service, controlling product quality and even the air freight product

• No life cycle concept, daily basis• Pricing and Revenue Management

– triangle of marketing, sales, and pricing & revenue management

• distributing the product - Global Distribution Systems (such as Galileo, Sabre and Amadeus

• Brands Management in Airline Marketing

• Relationship marketing - maintaining and strengthening relationships with existing customers, not just about frequent flyer programs, but also about promises in advertisements and about the warm welcome that the existing heavy user, main customer, wants.

• Airline Selling, Advertising and Promotional Policies - provides and analyses selling and sales management, good airline advertising and media relations


Hotels

• Budget • Social Media • The true cost • The hotel sales office • How to use social media for meetings• GDS hotel bookings • Priceline • Hotel panel • Successful hotel sales plan• A revenue driven checklist for function space

management


Travel Agency Marketing

• Travel agencies don't need large marketing budgets - just determination, a creative mind and willingess to work outside normal hours– Hold an open evening– Make your agency look

inviting– Be community-spirited– Use the local press– Form partnerships– Motivate your staff

• Tips to Travel Agents– "mine" data base– Increase your sales training and

prospecting skills– Be in the know– Be a member of a travel

consortium – have a working marketing plan– today is the first day of your

business– Identify pipers who have the

ability to bring in new business– customized client promotions– Be creative – Use PR as a tool to get the

positive word out about travel


Marketing Skills for Tourism

Creativity• make something out of nothing• Create the branding, create the

positioning, find the niche• develop the words, the visuals, the

images that make a brand• the brochure, the website, the

positioning statement• Keeping fresh and current so that I can

think of new ways of approaching• industry partnerships and a new

sponsorship program• Innovative Product development• 5 Stage process

– Saturation– Preparation– Incubation– Illumination– verification

Communication– Learn 3 languages – mother

tongue, national & international– Polite speech, Good body

language– Good personality– Courtesy calls– Letters– Fax– Email messages– Must allow visitor to speak– If language is barrier then show

standard pictures or symbols– Neat maintenance of travel

documents– Advertisement in target

customer’s language


• Self Motivation– Self motivated to work and

deliver concrete results– Motivation and morale are

closely related – If morale is high

motivation will be high to give sterling performance

– Motivation factors are – backgrounds, education, family status, economic condition

– Person to person treatment would develop the organization

• Team building – Socio cultural norms, if the team

changes this norms and values effect is immediate and ever lasting

– Tasks are completed faster than an individual does - Rome was not built in a day, Rome was not built by on neither

– Team work leads to synergy– Team work gives status recognition,

reverence to all– Single person cannot deliver results

on his own– Groups become teams– Common working approach,

performance goals – Hard work, discipline, dedication to

purpose , willingness to adopt new technologies

• 1. Thank a colleague • 2. Compliment a colleague • 3. Invite a colleague

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Personality development

• An individual's personality is an aggregate conglomeration of decisions we've made throughout our lives (Bradshaw )

• There are inherent natural, genetic, and environmental factors that contribute to the development of our personality

• "personality also colors our values, beliefs, and expectations ... Hereditary factors that contribute to personality development do so as a result of interactions with the particular social environment in which people live.“

• Freud believed that two basic drives—sex and aggression—motivate all our thoughts and behaviours

• Freud conceived the mind as only having a fixed amount of psychic energy . The outcome of the interaction between the id, ego and the superego, determines our adult personality.

• The id allows us to get our basic needs met

• The ego's job is to meet the needs of the id

• superego inhibits the biological instincts of the id (resulting in a high level of guilt)

R'tist@Tourism, Pondicherry University


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