Chapter 7 Tourism Marketing

The Tourism System 6th edition Kendall Hunt Publishing Company

Chapter 7 Tourism Marketing

Robert C Mill and Alastair M Morrison © 2013 1

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PART 2

Part 1. Destination: Planning, Developing, and Controlling

Tourism An identification of the procedures that destination areas follow to set policies,

plan, control, develop, and cater to tourism, with an emphasis on sustainable

tourism development.

Part 2. Marketing:

Strategy, Planning, Promotion, and Distribution

An examination of the process by which destination areas and tourism businesses market services and facilities to potential

customers with an emphasis on the effective use of promotion and distribution channels.

Part 3. Demand: The Factors Influencing the Market

A consumer behavior approach to market demand emphasizing the internal and

external influences on travelers including needs, motivation, and perception, the alternatives to travel, the marketing by tourism organizations, and the process

by which travelers make buying decisions.

Part 4. Travel: The Characteristics of Travel

A description of major travel segments,

travel flows, and modes of transportation used.

MARKETING

Chapter 7

Tourism Marketing

© 2013 Tourism Australia Copyright




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Contents Explains the most important marketing principles

and procedures. Describes a systematic approach to developing

marketing strategies and plans.

Tourism Australia Copyright

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Purpose Having learned about the basic principles and concepts of marketing as applied to tourism, students will be able to describe the procedures that should be used in marketing tourism destinations and organizations.





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Learning Objective 1: Differences between Tourism Marketing and Product Marketing Describe the differences between the marketing of tourism services and traditional product marketing.


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Tourism Marketing is Unique: 7 differentiating factors Intangible experience and perishable. A mixture of several services and some facilities

and products. The organizations that market tourism

destinations usually have little control over the quality and quantity of services provided (DMOs).

The guest‘s satisfaction is a function of the staff providing the service.





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Tourism Marketing is Unique: 7 differentiating factors The role of travel trade intermediaries. Tourism demand is highly elastic, seasonal in nature,

and is influenced by subjective factors such as taste and fashion as well as more objective factors such as price and the physical attractions at the destination.

The intangible nature of tourism services means that the visitor’s travel experiences exist only in memory after the trip is over.


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Learning Objective 2: Production, Selling, Marketing, and Societal Marketing Orientations Compare and contrast the different approaches to marketing associated with production, selling, marketing, and societal marketing orientations.





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Tourism Marketing Defined: Definition of Tourism Marketing “Marketing is a continuous, sequential process through which management in tourism plans, researches, implements, controls, and evaluates activities designed to satisfy both customers’ needs and wants and their own organization’s objectives. To be effective, marketing requires the efforts of everyone in an organization and can be made more or less effective by the actions of complementary organizations.”

Morrison, A. M. (2013)


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Tourism Marketing Defined: A Systems Approach to Tourism Marketing Morrison, A. M. (2013)


Where are we now?

Where would we like to be?

How do we get there?

How do we make sure we

get there?

How do we know if we got

there?




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Tourism Marketing Defined: PRICE Model Procedure for Tourism Marketing 1. Planning 2. Research 3. Implementation 4. Control 5. Evaluation

Morrison, A. M. (2013)


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Tourism Marketing Defined: Stages in the Evolution of Tourism Marketing Production orientation: Greatest emphasis is placed

on the services or products provided to the visitor. Sales orientation: The emphasis shifts to trying to

outsell competitors and the focus is on the seller’s needs.

Marketing orientation: The needs and wants of the visitor are the first priority for the marketer.





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Tourism Marketing Defined: Stages in the Evolution of Tourism Marketing Societal marketing orientation: Organizations with

a marketing organization recognize that they have a responsibility to society and local communities as well as to their visitors.

Sustainable tourism development: An approach to marketing that focuses on the satisfaction of visitor needs and wants while respecting the long-term interests of the community.


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Learning Objective 3: Market Segmentation Explain the concept of market segmentation and how target markets are selected.





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Market Segmentation The process through which people with similar needs, wants, and characteristics are grouped together so that a tourism organization can use greater precision in serving and communicating with these people.

Select market segmentation method Identify market segmentation bases and segments


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Market Segmentation: Four Assumptions A market has several segments whose members

have distinctive needs and preferences. Visitors can be put into groups with similar and

identifiable characteristics. Travel offerings appeal more to some segments

than others. Tourism organizations can be more effective in

their marketing by developing specific offers for specific market segments.





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Market Segmentation Bases Demographic and socioeconomic: Age; education;

gender; income; family size and composition; family life cycle stage; social class; type of residence/home ownership status; second home ownership; race or ethnic group; occupation.

Geographic: County; region; market area; urban/suburban/rural; city size; population density; zip or postal code; neighborhood.


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Market Segmentation Bases

Purpose of trip: Regular business travel, business travel related to meetings; conventions, and congresses; incentive travel; visiting friends and relatives; close-to-home leisure trips; touring vacation; city trip; outdoors vacation; resort vacation; cruise trip; visit to a theme park; exhibition or event.





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Behavioral: Volume of use; frequency of use; usage status; use occasions; brand loyalty; benefits sought; lengths of stay; transportation modes used; expenditure levels; experience preferences; activity participation patterns.

Psychographic: Lifestyle; attitudes, interests, and opinions; values.


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Product related: Recreation activity; equipment type; price level; type of hotel or resort property.

Channel of distribution: Principal function; area of specialization; size and structure; geographic location.





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Learning Objective 4: Positioning Define positioning and explain how it is used in tourism.


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Positioning The purpose of positioning is to create a perception or

image - to establish a position - in the targeted visitor’s mind.

Objective positioning: The destination or organization attempts to tailor-make its services or products to the needs and wants of a selected target market or markets.

Subjective positioning: An attempt is made to form, reinforce, or change the potential visitor’s image without altering the physical characteristics of the services or products offered.





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Alternative Positioning Approaches Positioning on specific product features Positioning on benefits, problem solution, or needs Positioning for specific usage occasions Positioning for user category Positioning against another product Positioning by product class dissociation


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Learning Objective 5: Product Life Cycle Explain the product life cycle concept and how it applies to tourism.





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Product Life Cycle Introduction Growth Maturity Decline

1. At what stage in the PLC is our part of tourism? 2. At what stage in the PLC is our destination,

service, or product?


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Learning Objective 6: Marketing Planning Process Steps Describe each of the steps of the marketing planning process in tourism.





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Steps in the Marketing Planning Process in Tourism 1. Where are we now? Scan the marketing environment Consider the development goals and strategies Evaluate services, products, and the destination mix Analyze competition


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Steps in the Marketing Planning Process in Tourism 2. Where would we like to be? Define a vision and vision statement Establish tourism marketing goals Select target markets Create a positioning approach Set marketing objectives





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Steps in the Marketing Planning Process in Tourism 3. How do we get there? Develop a marketing plan Develop a marketing mix using each of the 8 Ps of

tourism marketing Prepare a marketing budget Prepare a marketing plan implementation

timetable


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Steps in the Marketing Planning Process in Tourism 4. How do we make sure we get there? Monitor marketing plan implementation Check progress towards achieving individual

marketing objectives Modify the marketing plan if necessary





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Steps in the Marketing Planning Process in Tourism 5. How do we know if we got there? Measure and evaluate marketing plan results and

outcomes Determine if marketing goals and individual

marketing objectives have been achieved Draw conclusions and implications for next round

of the marketing planning process


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Learning Objective 7: Marketing Mix (8 Ps) List and describe the elements of the marketing mix.





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Elements of the Marketing Mix (8 Ps) Product Price Promotion Place (Distribution mix) Packaging Programming People Partnership


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Elements of the Marketing Mix (8 Ps) Product: Travel experiences consist of several

different services and products ranging from transportation and lodging to sightseeing and souvenirs. The tourism product in a particular place is represented by the destination mix.

Price: The monetary value at which tourism services are offered.





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Elements of the Marketing Mix (8 Ps) Promotion: The promotional mix consists of several

elements including advertising, sales promotion, merchandising, personal selling and sales, public relations and publicity, along with Internet or digital marketing. All promotions involve some form of communications with potential customers.


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Elements of the Marketing Mix (8 Ps) Place: A unique set of distribution channels and

travel trade intermediaries has developed in tourism. The distribution mix is the combination of these offline and online channels that a destination or tourism business selects to use.





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Elements of the Marketing Mix (8 Ps) Packaging: Packages combine the services and

products of several tourism organizations. Programming: Involves special activities, events, or

other types of programs to increase customer spending or to give added appeal to a package or other tourism service.


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Elements of the Marketing Mix (8 Ps) People (human resources): The training of tourism

employees in their specific functions, and the encouragement of hospitable attitudes toward visitors among tourism employees and local residents.

Partnership: Cooperative marketing programs involving two or more tourism destinations or individual organizations.





THE TOURISM SYSTEM

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Chapter Summary Highlights


Chapter Summary Highlights

Chapter 7

Tourism marketing is unique. Market segmentation and positioning are important in having

effective marketing strategies in tourism. The product life cycle also applies in tourism, and it has been

adapted into a destination life cycle as well. There is a systematic process for tourism marketing. The marketing mix in tourism consists of 8 Ps (product, price,

place, promotion, packaging, programming, people, and partnership).