Marketing Tourism: - PowerPoint PPT Presentation

1 / 41
About This Presentation

Marketing Tourism:


Chapter 11 Marketing Tourism: concepts and issues Marketing tourism: concepts and issues by Pro. – PowerPoint PPT presentation

Number of Views:439
Avg rating:3.0/5.0
Slides: 42
Provided by: iesNcuEd


Transcript and Presenter's Notes

Title: Marketing Tourism:

Chapter 11
  • Marketing Tourism
  • concepts and issues

Marketing tourism concepts and issues
  • by
  • Pro. Jin Ciping
  • Bachelor of Science in Tourism
  • (H54050020)
  • Nanchang University
  • School of Economy and Management
  • Department of Tourism Management

Learning outcomes
  • Recognize the consequences of marketing in the
    tourism industry and be aware of its
    distinguishing features.
  • Realize the importance of understanding the
    customers needs, market segmentation and the
    linkages with aspects of tourist demand and
  • Explain the role and nature of marketing plans,
  • describing some of the main analytical


  • Tourism marketing
  • Definition of marketing
  • Marketing concept
  • Tourism services as products

Tourism marketing (1)
  • Fascinating subject
  • Key part of the tourism industry.
  • The nature of tourism marketing changes with
    rapid change of the nature of the tourism
    industry at international, national, regional,
    destination and the firm level.
  • Core marketing concepts and issues are fairly
    universal and constant, but the tourism marketing
    reflects some of the special characteristics of
    this industry

Tourism marketing (2)Marketing contents of
  • a range of sales activities
  • public relations
  • advertising in all media
  • design of symbols and images
  • ( increasingly)
  • the departments of convention services
  • Reservations
  • catering

Definition of marketing(1)
  • The UK Chartered Institute of Marketing (1984)
  • Marketing is the management process
    responsible for identifying, anticipating and
    satisfying customer requirements profitably.

Definition of marketing(2)
  • Since the 1950s, some debates about what exactly
  • marketing consists of .
  • Now, general acceptance of the definition
    suggested by
  • the UK Chartered Institute of Marketing
  • Marketing is an umbrella term that covers a
    number of strategic and tactical activities
    designed to tell the clientele the story of a
    firms activities and encourage that clientele to
    make choices based on how one firms marketing
    message compares to alternatives.

Marketing concept
  • The marketing function depends on the idea-----
    the marketing concept (the function is central to
    structure of a firm)
  • The marketing concept is a theory to helps
  • to guide the marketing activities
  • Five identifiable marketing concepts to
  • influence any area of a firms activities

Five marketing concept
Product concept marketing activities focus on product development and improvement, it thinks customers mainly interested in quality, performance,features of product
Production concept the approach believe customers are price sensitive, so make products efficiently and distribute them widely enough to raise volume and drive down costs.
Selling concept greater emphasis on advertising and promotion.
Marketing concept understand customer needs, so adopt a balance of the other concepts.
Societal concept conclude the interests of society as well as the customers concerned, not just satisfying customers and generating profits
Tourism service as products
  • Characteristics of tourism service shows that the
    tourism product can be accurately thought of as a
    combination of several different services (OP)
  • Though some of the basic principles of marketing
    apply to all products, we should make some
    special consideration in investigate the tourism
    industry (OP)

Characteristics of tourism service
Tourism marketing depends on features of its services Tourism marketing depends on features of its services
Intangbility Inseparability Heterogeneity Perishability Inelasticity of supply Elasticity of demand Complementarity High fixed costs Labour intensity
Special consideration
  • Essential marketing principle
  • Features of tourism marketing
  • A customer orientation
  • Be concerned with the firms external environment
  • Accurate marketing research information,
    particularly in
  • relation to customers and competitors
  • Products that meet tourists needs
  • Differentiation, i.e. that the tourism firms
    products are
  • different in some way from the competition
  • Controlling various marketing opportunities in
    such a
  • way to create customer satisfaction.

  • Definition of marketing mix
  • 4P --- popular marketing channel
  • 3P --- tourist marketing for service
  • providers

Why should my customers buy my products, rather
than those of my competitors?
  • Holloway and Robison, 1995
  • Why should my customers buy my products,
    rather than those of my competitors?
  • The marketing manager must ask himself the
    crucial question.
  • The chapter introduce relevant concept and issues
    associated with answering the question.

Definition of marketing mix
  • It is that a firm aims at the needs of its
    target market to mix well and use comprehensively
    various marketing factors ( marketing variables )
    the firm can manipulate. These factors include
    the product, the price, physical distribution,
    intermediary or channel of distribution and

4P --- popular marketing channel (1)
  • E.J. Maxim in the U.S. classifies marketing
    channels as four types --- popular 4P
  • ?product
  • ?price
  • ?place
  • ?promotion

4P --- popular marketing channel (2)
  • E.J. Maxim in the U.S. classifies marketing
  • channels as four types --- popular 4P
  • Marketing mix represents the idea of the total
  • marketing in the marketing concept
  • Marketing mix is a facet complex structure
  • 4P includes other factors which constitutes
    sub-mix (OP)
  • A marketing mix includes at least two facet
  • complex structure

Other factors of 4P (OP)
Understanding of 4P
  • Seen from the Figure above, different types of
    marketing decisions/marketing mixes will need to
    be made for different types of tourists.
  • Vellas and Becherel (1999) state different
    markets require different marketing mixes at
    different times in their life cycle.
  • E.g.
  • A tourism product aimed at retired people is
    unlikely to be advertised in a magazine for young
  • the four Ps offer a suitable framework
  • When deciding a marketing mix, a firm should get
    a best mix between 4P, but also make a good
    arrangement between the sub-mix so as to make
    these factors get flexibly and effectively mixed.

3P --- tourist marketing for service providers
People In the tourism industry, people, i.e. staff are important particularly in terms of their skills of customer care. how friendly they are and their appearance.
Physical evidence Within accommodation, for example, considerations of the furnishings, decor, environment, ambience, layout, cleanliness and noise level are all important
Process Here aspects such as how efficiently procedures work, for example, service time, waiting time, customer forms and documents all need to be evaluated
  • Information of customer
  • How marketer get information
  • Market segmentation
  • Importance of competition
  • Planning for the future
  • Approaches to marketing planning

Information of customer (1.1)Questions
  • ? Why do people go on holidays?
  • ? Who are the customers/tourists?
  • ? What types of tourism products do they buy?
  • ? Who do they travel with (alone, couple,
  • ? Which suppliers do they use?
  • ? What are the needs they aim to satisfy?
  • ? Where/how do they buy their tourism

Information of customer (1.2)Questions
  • ? When do they buy them (last minute, in
  • ? How long do they go on holiday for?
  • ? How often do they travel?
  • ? How much are they prepared to pay?
  • ? How do they decide which tourism products to
  • ? What influences their travel decisions?
  • ? How do previous holidays affect future plans?

Information of customer (2)
  • The questions above can help tourism marketers to
    understand tourist buying behavior
  • These questions will clearly help the marketers
    to decide how best to market their products.
  • The products are aimed, primarily at particular
    types of tourist (e.g. young adults, who are
    singles, travelling with friends. without
    children). Such groups represent the target
  • Vellas and Becherel (1999 59) refer to three
    choices for targeting markets. (OP)

Three choices for targeting markets (1)
  • 1. Undifferentiated marketing ( the same
    products )
  • ? sell as much as possible and their products
    have to the broadest
  • appeal.
  • ? characteristic of mass market tour
  • In China, European tour
  • 2. Differentiated marketing ( different
  • The firm perhaps aims at particular target
    markets and
  • designs separate products and marketing
    programmes for each
  • market. The costs to the firm of this are
    larger, but total sales may
  • be greater.

Three choices for targeting markets (2)
  • 3. Concentrated marketing ( specific products )
  • The firm concentrates on a specific target
    market, not
  • aim at all tourists.
  • E.g.
  • concentrating on trekking and adventure
    holidays to
  • destinations such as the Himalayas
  • A strategy to approach a target market is
    necessary, it is also important to understand
    that different tourists buy their holidays in
    different ways

How marketers get information
  • Tourist buying behaviour (so that the marketer
  • can decide how best to market their
  • Inner meaning of each stage in the buying
  • process
  • How potential tourists search for relevant
  • information on which to base their decisions
  • Where the potential customer searches for that
  • information ( to communicate their products
  • new customers)

Market segmentation
  • Tourism products and services have to be
    targeted, not only to target markets, but often
    to specific types of consumer. This approach,
    known as market segmentation,
  • Several approaches to segment tourist markets
  • ?factors influencing motivation
  • ?factors affecting tourism demand

Other factors (variables)
Geographic Region, climate, urban, rural
Demographic Age, sex, ethnicity, social class
Personal and psychological Education level, lifestyle, values, beliefs, attitudes
Sociocultural Family influences, peer group influences, cultural norms, status
Economic Economic climate, employment security, political stability
Buying behavior Previous experience, purchasing preferences, attitudes to adverts
Importance of Competition
  • Competition is the next step following the market
  • segmentation
  • Old saying know the enemy and know yourself,
  • you can fight a hundred battles with no
    danger of
  • defeat.
  • Firms need to know the following about their
  • ?Who they are.
  • ?What their strategies are.
  • ?What their objectives are.
  • ?What their strengths and weaknesses are.
  • ?How they react.

Planning for the future
  • This is a very important step (firms aim to
    survive, make
  • a profit and, in many cases, grow).
  • Need a strategic marketing plan in place which is
  • and a regular feature of managerial
  • A variety of techniques need to be applied to the
  • PEST and SWOT analyses are two key techniques ---
  • helpful (OP)

PEST analysis
  • PEST --- Political, Economic, Socio-cultural and
  • ?It refers to the external environment within
    which the firm
  • operates.
  • ?To future plans, this method provides a
    framework to help
  • investigate the various factors that
    will affect the firm.
  • PEST analysis is particularly important in the
    tourism industry as
  • we have seen the industry is so
    vulnerable to rapid change.
  • While PEST provides an awareness of the external
  • SWOT analysis is one of the main tools
    used to develop business
  • strategies.

SWOT analysis (1)
  • SWOT --- Strengths, Weaknesses, Opportunities
    and Threats.
  • ?This technique provides a framework which
    enables an
  • organization to assess their position
    within a market in
  • relation to the competition.
  • ?Information gathered in a marketing audit can
  • the companys internal strengths and
    weaknesses and
  • the external opportunities and threats
    that it faces.
  • ? SWOT analysis is not limited to the context of
  • marketing it can be applied to the whole
    company, to
  • destinations or tourism products.

SWOT analysis (2)
  • Some of the common factors are now considered.
  • ? Strengths and weaknesses internal
  • Products, people, the organization,
  • position.
  • ? Opportunities and threats external
  • Competition, nature of the market, new
    technology, economic
  • position, legal framework, political

Approaches to marketing planning
  • Marketing plans are central to a firms strategy.
  • Edgell et al ,1999
  • the key is to have a welkhought-out
    marketing plan.
  • Edgell et al ,1999
  • a six-stage framework to help marketers
    analyse the marketplace and develop a strategic
    marketing plan --- these stages represent a
    useful structure. (OP)

The six-stage framework
  • ?Needs analysis
  • ?Research and analysis
  • ?Creative infusion
  • ?Strategic positioning
  • ?Marketing plan development
  • ?Training, implementation, evaluation and
  • adjustment

  • Harris and Katz 1996
  • tourism marketing is not an easy task ... it
    is more than just advertising it requires a
    co-ordinated, phased plan involving dozens of
    specialised tasks.

  • Critically evaluate the role and importance of
    the following in contemporary tourism and
  • the World Wide Web
  • brand management

Topic discussion
  • 1. Talk about marketing concepts?
  • 2. What are characteristics of tourism services?
  • 3. Why should our customers buy our products,
    rather than those of our competitors?
  • 4.How do you understand 3P and 4P?
  • 5. How do you understand 3 choices for targeting
  • 6. Talk about PEST and SWOT?
Write a Comment
User Comments (0)