Tourism Marketing & Promotion

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    Tourism Marketing &

    Promotion

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    Tourism Marketing

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    Introduction to Marketing

    What is Marketing?

    Where are we now?

    How do we know if

    we got there?

    Where would we

    like to be?

    How do we get

    there?

    How do we make

    sure we get there?

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    Evolution of Marketing

    PRODUCTION-ORIENTATION ERA1920s

    SALES-ORIENTATION ERA1930s

    MARKETING-DEPARTMENT ERA

    MARKETING-ORGANIZATION ERA1950s

    MARKETING-ORIENTATION ERA

    SOCIAL-MARKETING-ORIENTATION ERA1970s

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    Marketing Defined

    This is about anticipating and identifyingthe wants and needs of a target market ofconsumers, then satisfying those needs in

    order to make a profit. A continuous, sequential process through

    which management plans, researches,implements, controls and evaluates

    activities designed to satisfy bothcustomers needs and wants and the

    organizations objectives

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    Tourism Marketing

    Travel and tourism organization tries to

    maximize the satisfaction of tourist

    demand through research, forecasting

    and the selection of tourism products andservices to meet that demand.

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    Tourism and Marketing

    Tourism establishment are

    mostly service oriented and

    thus have the need for a morespecific marketing approach

    and is referred to asSERVICES MARKETING

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    Why is Services Marketing

    different?

    GENERIC DIFFERENCES(unchangeable but affects marketing)

    Intangible nature of tourism Production methods

    Perishability

    Distribution channels Cost determination

    Relationship with providers

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    Why is Services Marketing

    different?

    CONTEXTUAL DIFFERENCES(correctable & affects marketing)

    Narrow definition of marketing

    Lack of appreciation for marketing skills Different organizational structures

    Lack of data on competitive performance

    Impact of government regulation and

    deregulation Constraints and opportunities for nonprofit

    marketers

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    Tourism Marketing

    Travel and tourism organization tries to

    maximize the satisfaction of tourist

    demand through research, forecasting

    and the selection of tourism products andservices to meet that demand.

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    Why is Tourism Marketing

    different?

    Shorter exposure to services

    More emotional and irrational buying appeals

    Greater importance on managing evidence

    More variety and type of distribution channels

    More dependence on complementaryorganizations

    Easier copying of services More emphasis on off-peak promotion

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    Uniqueness of Tourism

    Marketing

    Tourism is a service

    Fragmented supply VS composite

    demand

    Travel motivations are heterogeneous

    Dominant role of travel intermediaries

    Complementarity of tourist services Role of official organizations in tourism

    marketing

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    Consumer Behavior and

    Tourism Demand

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    Defining Tourism Demand

    Must have an understanding of the

    consumers (tourists) buying behavior to

    be able to define the demand

    Tourism demand relates to the volume ofactivities, facilities and other tourism

    product that the tourist requires in order

    to be satisfied

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    Measuring Tourism Demand

    DESCRIPTIVE METRICSReflect counts of visitors based on some

    standardized definition (note that definitionsvary widely by spatial scale)

    Differentiate visitors into groups (MARKETSEGMENTATION)

    Distinguish temporal components of demand

    (track change over time)Often based on some standardized state,

    national and global statistic

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    Measuring Tourism Demand

    INFERENTIAL METRICS

    Economic (track incidence of recreation use

    based on price and quantity)

    Social (reflects some type of social carryingcapacity indices of use)

    Environmental (reflects some physical

    carrying capacity)

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    Core Principles of

    Marketing

    THE MARKETING CONCEPT Acting on the belief that satisfying

    customers needs and wants is first priority.

    Constantly putting themselves in thecustomers shoes

    MARKETING OR CUSTOMERORIENTATION

    Managers or the organization has acceptedand acts according to the marketing conceptmaking sure of the long-term perspective

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    Core Principles of

    Marketing

    SATISFYING CUSTOMERS NEEDS &

    WANTS

    The key to the establishments existence is

    satisfying CNWs.

    Being ever alert for new opportunities to convert

    CNWs into sales

    MARKET SEGEMENTATION

    All customers are not alike Better to pick out groups of people (TARGET

    MARKET) and market only to them

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    Core Principles of

    Marketing

    VALUE & EXCHANGE PROCESS

    Value represents a mental estimate that customers

    make of a hospitality or travel services ability to

    satisfy their needs and wants

    Exchange is the trade of items of value between

    establishment and customer

    PRODUCT LIFE CYCLE

    All establishments pass through predictable stagesthus marketing approach must be modified with

    each stage

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    Core Principles of

    Marketing

    MARKETING MIX

    Must use a good mixture of the key

    elements of marketing in order to achieve

    marketing objectives 4 Ps: Product, Place, Promotion and Price

    People

    Prospects

    Packaging

    Programming

    Partnership

    Positioning

    Post-sale

    Planning

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    Unique Approaches for

    Tourism Marketing Use of more than 4Ps

    Greater significance of WORD-OF-MOUTHADVERTISING

    More use of EMOTIONAL APPEALS INPROMOTIONS

    Greater difficulties with NEW-CONCEPTTESTING

    Increased importance of relationships withcomplementary organizations

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    Successful Marketing

    Successful marketing depends on thefollowing:

    Knowledge

    Information;

    Understanding how tourism works;

    Understanding how consumers are

    changing as we speak!

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    What is Marketing?

    Where are we now?

    How do we know if

    we got there?

    Where would we

    like to be?

    How do we get

    there?

    How do we make

    sure we get there?

    How do customers make

    hospitality and travel decisions?

    THE HOSPITALITY

    & TRAVEL

    MARKETINGSYSTEM

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    Tourism Promotions

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    Tourism Promotion Defined

    Purpose is to inform, to persuade or toremind or, more specifically, to influencepotential customers or trade

    intermediaries through communications tothink and to act in a certain manner

    A supporting marketing instrument

    Integrates and connects the differentmarketing mix elements into a coherententity

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    Tourism Promotion Defined

    Means stimulating sales through

    information dissemination

    Making the tourist product attractive and

    widely known so that actual and potentialtourists will buy it

    An exercise in communication

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    Types of Promotion

    INFORMATIVE

    PERSUASIVE

    REMINDER

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    Promotion and the

    Travelers Buying Process

    Buying

    Process

    Promotional

    GoalsEnd Goal

    Behaviormodification

    Remind

    Persuade

    Inform

    Adoption

    Purchase

    Intention

    Attitudes

    Comprehension

    Attention

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    Promotion Mix

    Tools that convey the message to the

    customers

    Major types are:

    Advertising

    Personal selling

    Sales promotion

    Public relations

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    Major Issue of Promotion

    Accuracy and reliability of information

    Techniques uses words that evoke emotion

    and that have different meanings to the end

    receiver.

    False and misleading advertising

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    Tourism Product Life Cycle

    Stage 1: DISCOVERY or introduction

    a small number of unobtrusive visitors arrive

    seeking "unspoiled" destinations.

    early "explorer" tourists generally speak thelanguage and identify with the local culture.

    social impact is generally small and resident

    attitudes are fairly positive towards tourism.

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    Tourism Product Life Cycle

    Stage 2: LAUNCH or growth

    the number of incoming tourists increases

    host community responds to the increasing

    numbers of tourist by providing facilities. businesses remain family based and the

    visitor-resident relationship is still

    harmonious.

    visitor numbers increase and the community

    becomes a tourist resort.

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    Tourism Product Life Cycle

    Stage 2: LAUNCH or growth

    Outside interests become involved developing

    businesses and tourist facilities.

    TNC (Trans-National Corporations) foreign

    investment enters the cycle.

    Migrant workers, attracted by the prospect of tourist-

    related jobs, may enter the community and reduce

    resident contact with visitors.

    tourist-relationship converted into one of business as

    the novelty of new visitor arrivals declines

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    Tourism Product Life Cycle

    Stage 3: STAGNATION or maturity

    saturation is reached.

    quality of tourist services falls

    demand levels off

    environmental degradation of the tourist

    destination begins to be obvious and

    worrying tourist destination is said to have reached

    'maturity'

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    Tourism Product Life Cycle

    Stage 4: DECLINE

    represents the current state of mature tourist

    destinations on the Costa Brava in Spain.

    Falling profits lead to foreign-ownedbusinesses withdrawing and the community

    is left to "pick up the pieces".

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    Tourism Product Life Cycle

    REJUVENATIONWhen tourists are drawn away by otherdestinations, the market share of the destinationsuffers heavy decreases, the tourisminfrastructure run-down and replaced by other

    non-tourism uses, and the external investmentmove out of local tourism industry, thedestination proceeds to the decline stage.But some dramatic change will probably occurwhen the new attractions replace original

    attractions, or previously unexploited newresources are used to renew the image of thedestination. In this situation, a rejuvenationstage occurs.

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    Market Segmentation

    Division of the total population intodifferent homogenous groups ofconsumers to act as the market

    Purpose: to allow your marketing/salesprogram to focus on the subset ofprospects that are "most likely" topurchase your offering

    Will help to insure the highest return foryour marketing/sales expenditures

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    Market Segmentation

    Based on the following assumptions: The market for a product/service is made up of

    particular segments whose members have particularneeds and preferences related to the product/servicebeing marketed

    Potential tourists can be grouped whose membershave similar characteristics

    A single product/service that is offered will appeal tosome segments of the population more than theothers

    Some firms and organizations can improve theirmarketing effort by developing specific productofferings to reach specific segments

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    Market Segmentation

    A market segment should be:

    Measurable

    Accessible by communication and

    distribution channelDifferent in its response to a marketing mix

    Durable (not changing too quickly)

    Substantial enough to make profit