Tourism Marketing

Ramakrishna Kongalla Click to edit Master subtitle style

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R'tist@Tourism,

CCDD Create, Communicate, Deliver & feedback

Definition

Marketing means achieving the firm's goals by identifying the needs and desires of consumers, and then satisfying them better than competitors. marketing R'tist@Tourism,

Tourism 6/5/12

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 22 tourists. In doing

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

Features

involves several steps Market research seeks to understand the consumer product development aims to meet his needs

Analysis and selection Demand is seasonal of target markets, also known as motivations of consumers vary widely segmentation, means Intermediaries such as studying potential travel agents have a customer groups and strong control over product design, 6/5/12 R'tist@Tourism, 33 selecting only certain distribution, promotion

SWOT analysis of Tourism

Strengths

Opportunities

Vast geography with forests, deserts, mountains & beaches. Varied culture. Many historical monuments.

Increased privatization. CWG 2010, Grandprix2011 Medical tourism. Go-green initiative. World-class hotels and airports
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Knowledge of English by majority of local 6/5/12 R'tist@Tourism,

PEST analysis of Tourism

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Core concepts in Marketing

Needs

Wants

state of felt deprivation including physical, social, and individual needs.

Needs become wants when they are directed to specific objects that might satisfy the need. Wants + buying power

Demands

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Needs and Wants R'tist@Tourism, Fulfilled66 through a

Target markets & segmentation

Market

Differences in needs, behavior, demographics or psychographics are used to identify segments. The segment served by the firm is called the target market.
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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 77

The market 6/5/12 offering is

The Production Concept

Marketing Management Philosophies

The Product Concept

Theproduction conceptholds that customers will favor products that are available and highly affordable and that management should therefore focus on improving R'tist@Tourism, 6/5/12

Theproduct conceptstates that consumers will favor products that offer the most quality, performance, and features, and that the organization should therefore devote88 energy its

The selling Concept

The Marketing Concept

Many organizations follow the selling concept. Theselling conceptis the idea that consumers will not buy enough of the organization's products unless the organization 6/5/12 R'tist@Tourism, undertakes a

Themarketing conceptholds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and 99 efficiently than

The Societal Marketing Concept

Thesocietal marketing conceptholds that the organization should determine the needs, wants, and interests of target markets. It should then deliver the desired 6/5/12 R'tist@Tourism, satisfactions more

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

a)Compan y profits. b)Customer wants. c)Society's interests.

5)It has became good 1010 business to

Economic importance of Marketing scale Generation of Large

revenue

production

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 6/5/12 efficiency of R'tist@Tourism,

marketing makes mass selling possible and thereby facilitates large scale production. Economies of large scale production help to reduce the cost of production per 1111

Tourism marketing

Service Characteristics

Tourism Demand

Highly unstable

Curiosity and desire to travel Tourism marketing creates desire in tourists Multifaceted activities produces tourism product sub

Seasonal Economical political

Facilitators Motivators resistance factors Price elasticity 1212 responsiveness of

characteristics

Various 6/5/12

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Tourism Product

Intangible, irreversible, perishable, lack of ownership, Heterogeneity, Non-material, consumed where produced, multiplicity of producers, highly unstable Tourism Demand demand, dominant role of Determinants intermediaries, motivations.

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Tourism Marketing mix

8 Ps in Tourism

2. Pricing

Product Place Price Promotion People Process Productivity & Quality

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Cost Demand Competition Duration Mode of transport Peak/Non-peak season Destination

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Physical 6/5/12

3. Promotion

Different states highlighting about their features.

4. Place

E.g.

1. Kerala- Gods own countryHighlighting 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.

The destination is the important aspect in place. Travel agents, tour operators etc. are distribution points. Proper infrastructure, transport and communication. Role of 1515 people is

Use of websites to sell tourism. 6/5/12 R'tist@Tourism,

5. People

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.

6. Process

Employees should 6/5/12 deliver what R'tist@Tourism, the

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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.
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the explanatory variables for tourism demand include origin country income, destination country tourism prices, substitute Stock effect, destination market response country tourism effect prices, tastes, Analysis 6/5/12 R'tist@Tourism, etc. Empirical 1818

Tourism Demand Modeling and Forecasting

Tourism demand modeling and forecasting are very important for tourism-related business decision making

Methods that rely on qualitative assessment

Methods that rely on quantitative data

Unaided judgment Prediction market Delphi technique Game theory Judgmental bootstrapping
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Discrete Event Simulation Extrapolation Quantitative analogies Rule-based forecasting Neural networks Data mining 1919

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Managing capacity and Demand

Capacity Constraints Demand Patterns

Time, labor, equipment and facilities Charting demand patterns Optimal versus maximal use of capacity Predictable cycles Random demand fluctuations Demand patterns by market segment

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Market segmentation

segmentation is the no unique or best process of: (1) taking existing and/or potential customers/visitors (market) and categorizing them into groups with similarpreferences referred to as "market segments;"

way to segment markets, butways in which customers can be grouped are:

(1) location of residence---instate, out-of-state, local; (2) demographics--age, income, family status,2121 education;

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(2) selecting the R'tist@Tourism,

Target markets

After segments have been identified, the business orcommunity must select the "target markets," thosesegments which offer them the greatest opportunity. Whendetermining target markets, consideration should be givento:

(1) existing and future sales potential of each segment; (2) the amount and strength of competition for eachsegment;
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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. R'tist@Tourism, 6/5/12

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primary elements of positioning are:

Positioning concepts

Functional positions

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?

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 2525 customers about their perceptions of each product on the relevant attributes

Distribution. How do customers obtain your product? The channel R'tist@Tourism, or 6/5/12 distribution is part of

Marketing Environment

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Consumer buying behavior

"The study of Consumer individuals, groups, behavior involves or organizations services and ideas and the processes as well as tangible they use to select, products. secure, use, and main applications dispose of of consumer products, services, behavior experiences, or marketing ideas to satisfy strategyi.e., for needs and the making better impacts that these marketing 6/5/12 R'tist@Tourism, 2727 processes have on campaigns

A general model of the buyer decision process consists of the following steps:

General model for Consumer Behavior

AIUAPR MODEL

Awareness Interest Understanding Attitude Purchase Repeat purchase

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Problem recognition; Information Search

Evaluation of 6/5/12 R'tist@Tourism, Alternative

Marketing Competitive Treacy & WiersemaDifferentiation say that there every company that

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.

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

Product Leadership

Provide the best product, period. Continue to innovate year after year. Example:Intel, Nike.

Customer Intimacy 6/5/12 R'tist@Tourism, Provide unique solutions to

For example, if a company tries to be the cost leader as well as the product leader in its market 2929 over time, it will end

Marketing strategyis a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainablecompetitive 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 themarketing mix, plus performance analysis and strategic constraints

Competitive Marketing Strategy

Typically there are four types of market dominance strategies:

Leader Challenger Follower Nicher

External environmental factors include customer analysis,competitor analysis,target marketanalysis, 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

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generic strategy R'tist@Tourism, framework (porter 3030

New product Development

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Product life Cycle

Discovery

unspoiled" destinations Explorers incoming tourists increases host community responds

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Launch

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Customer Satisfaction

Customer Customer Satisfaction in 7 satisfaction, a Steps term frequently 1. ENCOURAGE used FACE-TO-FACE inmarketing, is a DEALINGS measure of how 2. RESPOND TO products and MESSAGES services supplied PROMPTLY & KEEP by a company YOUR CLIENTS meet or surpass INFORMED customer 6/5/12 3333 expectation. R'tist@Tourism, 3. BE FRIENDLY

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Customer Retention

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Strategies in Internal & External Marketing

Internal factor , these involve (5M's)

Management Manpower machine material and money.

Macro factors are the one that affect the organization indirectly, these are (pestel)

Political enviroment socia-cultural technological and

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External factors , these include R'tist@Tourism, 6/5/12

Relationship Interactive marketingwas Marketingrefer first defined as a s to the evolving form of marketing trend developed from inmarketingwh direct response ereby marketing marketing has moved from a campaigns which transaction-based emphasizescust effort to a omer conversation. retentionand satisfaction, the ability to 6/5/12 R'tist@Tourism, 3737 rather than a address an

Interactive and Relationship Marketing

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Product & Product Strategies

Theproductis defined as a "thing produced by labor or effort"or the "result of an act or a process Tangible and Intangible

A PRODUCT MARKETING STRATEGY

Decide on new revenuegrowtha ndprofits Decide on newproductdev elopment. Decide onprice. force,distributio

Tourism Product Decide on sales Multi faceted R'tist@Tourism, 6/5/12 3939

Product Line

Product Mix

A company/organiz ation creates a group of products, which has in common most of their main characteristics.

Product mix-an organization creates many products and sells them. the product mix is everything organization sells.

A good way for a company to try to expand its business is by 6/5/12 R'tist@Tourism, adding to its

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Branding & Rebranding

increase a product's perceived value increase brand franchise and brand equity started at Procter & Gamble A good brand name should:

Functions of brand

(For consumers) Identification of source of product, Assignment of responsibility to product maker, Risk reducer, Search cost reducer,
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be protected (or 6/5/12 R'tist@Tourism, at least

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
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Functional Requirements

1. Protection and preservation 2. Containment 3. Communication

Types of packaging

Transport 4242

Pricing

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Pricing Strategies

Approaches

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

Psychological Pricing

to respond on an emotional, rather than rational basis

Product Line Pricing

6/5/12 Penetration

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Where there is a range of product or services the pricing4444 reflect the

Distribution Channels

Physical distribution(or place) is one of the four elements of themarketing mix

Channel decisions

Channel strategy Gravity & Gravity Push and Pull strategy Product (or service) Cost Consumer location
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defined as a chain of intermediaries, each passing the product down the chain to the next organization, 6/5/12 R'tist@Tourism,

Type of

Marketing Of Tourism Services

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Airlines

the first marketing model, called PESTE Political, Economic, Social, Technological and Environmental

distributing the product - Global Distribution Systems (such as Galileo, Sabre and Amadeus Brands Management in Airline Marketing

Airline Business and Marketing Strategies Relationship strategic families marketing 6/5/12 4747 (from cost R'tist@Tourism, maintaining and

Hotels

Budget Social Media The true cost The hotel sales office How to use social media for meetings GDS hotel bookings Priceline Hotel panel
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Travel Agency Marketing

Travel agencies don't need large marketing budgets - just determination, a creative mind and willingess to work outside normal hours

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 4949 marketing plan

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Hold an open evening

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Marketing Skills for Tourism

Creativity

Communication

make something out of nothing Create the branding, create the positioning, find the niche develop the words, the visuals, the images that make

Learn 3 languages mother tongue, national & international Polite speech, Good body language Good personality Courtesy calls Letters Fax
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Self Motivation

Team building

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

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 5151 built by on neither

Motivation factors 6/5/12 R'tist@Tourism, are

Personality development

Freud conceived the mind as only There are having a fixed inherent natural, amount of genetic, and 6/5/12 R'tist@Tourism, psychic 5252 energy . environmental

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

Freud believed that two basic drivessex and aggression motivate all our thoughts and behaviours

Thank You
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