Chapter 7
Chapter 7
The marketing process seeks to inform, persuade and bring consumers into action. Information and
persuasion are mainly achieved through communication.
Communication is the basic human need. In particular, are very fond of communicating with others. We
are friendly race and most can strike a conversation with just about anyone.
COMMUNICATION THEORIES
MODELS OF COMMUNICATION:
The communication process begins when the source selects words, symbols, pictures and the like to
represent the message that will be delivered to the receiver (s) (Smith & Zook 2011). The message can
be verbal or non - verbal, oral or written, or in a symbolic form. Encoding is the process by which
thoughts are expressed in the form of words, symbols, pictures and gestures.
A good communicator identifies who they are talking to before crafting the message and deciding on the
best way to transmit it. Decoding is the process of transforming the sender's message into the receivers
thought. How the message is received and understood is heavily influenced by the receivers field of
experience.
Shannon and Weaver (1949) describe communication as a linear process. The process begins with the
information source, which produces a message or a set of messages to be transmitted. The message is
formed into signals by a transmitter.
David Berlo (1960) introduces factors that may affect the process of communication from the source,
message, channel and receiver (SMCR). The source and the receiver of the message have different levels
of communication skills, attitudes, knowledge of the topic being discussed, and social system, which
covers are used aspects of society and culture.
The message is affected by certain factors that may help get that message more easily understood. This
include content (what the actual message is from beginning to end), elements (language used, gestures,
etc.) treatment (the way the message is conveyed), structure (how the message is arranged), and code
(how the message is sent ).
Different channels can be used to get the message across. It could be through any of the five senses or a
combination of two or three senses. The medium can be aural (sense of hearing), visual (sense of sight),
tactile (sense of touch), olfactory (sense of smell) and/or gustatory (sense of taste).
The source and the receiver should be on the same level for effective communication take place.
Furthermore, each one should be sensitive to each other's backgrounds for good communication to
occur.
Communication and marketing planning go hand in hand. Lasswell's Model of communication can be
matched with the process of marketing planning. The who being the advertiser, says what being the
creative message, in which channel as the media type to whom as the defined target market and with
what effect as the consumer’s response. Such parallelism further strengthens the fact that marketing and
communication are closely related fields of study.
Osgood - Schramm's model of communication is dynamic in nature. It veers away from the linear models
of previous communication scholars. It looks into communication as circular in nature. The encoder
(sender) is able to send a message to a decoder (receiver) who interprets the message and sends
feedback to the original message sender. A central feature of this model is that both sender and receiver
can send feedback.
The cultural variables that Hofstede's framework discusses include power distance, individualism,
masculinity, uncertainty avoidance, pragmatism, and indulgence.
According to Katz and Lazarsfeld (1955), "the flow of media messages from radio and print to opinion
leaders and then the leaders lead the messages to lesser active users in the population.” Through this
transformation of message, the leaders may add their opinion to the actual content which may affect
low active users. Mostly, The opinion leaders are selective as they pass the messages to the group.
Opinion leaders are those that pass on information to other, less active members of his group. Opinions
are usually added to the information given; These opinion leaders may be one's parents, older siblings or
more informed friends. They are informal leaders who are looked up to by the other members of the
group. This model is the foundation of how positive word of mouth is used as an effective means of
marketing.
ROLE OF INNOVATION IN MARKETING
Another noteworthy contemporary communication model which is very useful in marketing as the
Adaption Model (Rogers 1962). The model attempts to map out the mental process consumers go
through in purchasing decision making, seminar to the AIDA (Attention -Interest-Desire-Action) model
discussed in numerous consumer behavior books. The different stages of awareness, interest, evaluation,
trial, and adoption are quite simplistic but nevertheless give us an idea of how individuals move from
awareness to actual adoption.
Rogers further developed another known as the Diffusion of Innovation where he defined innovation as
the spread of a new idea from its source to its users. Succeeding users of the product are called early
adopters followed by the early majority. At this stage, The company can already feel that the new
product or idea is becoming popular and sales growing. The late majority are those who adopt the idea
at the latter part while the laggards are those who are last to adopt.
A good example of diffusion of innovation is travel and Torism and Tourism used to be undertaken by a
small percentage of the population . In the past, travel was just for the rich and famous. Recently, travel
is adopted by more and more people in different countries. However, there are still people who do not
see the we need to travel.
In a study conducted in Turkey regarding cultural approximation and tourist satisfaction, one of its
findings was that greater ease in communication leads to higher satisfaction levels. British tourists had
higher satisfaction ratings when visiting Marmaris (in Southwestern Turkey) and the Russians had lower
satisfaction ratings. This is because the British culture is more well - known in Turkey than the Russian
culture. English is also widely spoken in Turkey, so the British experience case in communication unlike
the Russian counterparts. (Tuna 2006)
Communication is Influence -Communication has a lot to do with shaping influence. The way we
communicate with people determines the level of influence we have on others. Word of mouth is
communication at its finest level. Its value is verbally passing on of information from one person to
another.
Communication Problems-Most of the communication models show how information can flow
effectively from sender/source to receive/destination through various channels. However,
communication fails when a message is received differently from how the sender intends it to be. In
other words, the sent message is different from the received message. Misunderstanding happens when
communicators fail to realize that how they send the message maybe different from how the receiver
interprets the message. This failure in communication may be due to several factors such as:
1. Language Barriers - since the tourism industry is a global industry communication may become
difficult due to differences in language. Google translate has become a very handy tool for Filipinos who
travel to non-English speaking countries.
2. Varied connotation of words, signs, and symbols - the thumbs up sign for instance means differently
depending on culture or race.
3. Cultural Differences - the popular "beso-beso" for Filipinos is expressed differently in some countries.
4. Faulty word choices - a careful choice of words can help improve communication while faulty word
choices can cause miscommunication.
5. Mistranslations - faulty translations from one language to another or one dialect to another may
cause misunderstandings.
The goal of marketing communication is to achieve common ground between the sender and
the receiver.
The bigger the union of the two circles, The easier it is to encourage influence the other person.
Wilbur Schramm's model of communication (1954) encapsulate the goal of marketing achieving
understanding and common ground.
The Tourism Industry is a conglomeration of various products and services, individuals and organization
each with specific economic and/or political interest, Hudson (2008) enumerated this players: (1) private
and non-profit sectors, (2) public sector services, (3) suppliers such as in transportation, accommodation,
food and beverage services, attractions and events, (4) travel intermediaries, and (5) the tourist
themselves.
1. Private and Non-Profit Sectors - include industry associations which have been established to protect
special interest groups, such a travel agency association, financial services, academe, media and
insurance companies
2. Public Sectors Services - cover either national, regional or provincial tourism organizations. They come
up with marketing programs to promote their destinations to both intermediaries and individual tourists.
3. Suppliers
a. Transportation Industry – crucial to the success of tourism. Without an efficient transport system
and road networks,
b. Accommodation Sectors – covers a huge part of a tourist’s expenditure during travel, there are a
variety of accommodation facilities to meet the customers needs, preference and budget.
c. Food and Beverage Sector – another important supplier of the tourism industry. Restaurants, bars,
food stalls and coffee shops help shape the total travel experience of tourist.
d. Attractions – basic requirements in having a successful tourist destination. This can be classified as
natural or man-made.
e. Events and Conferences - Play a key role in attracting both leisure and business travelers to a
destination..
TOURISM PRODUCT
= is usually as the amount of psychological and physical satisfaction it offers or delivers to the tourists
when they are travelling to a new place or are on the way to a given destination it can be both domestic
and international.
= are more concerned towards services and facilities produced to fulfil the requirements of the
consumers or the tourists.
TYPES OF TOURISM PRODUCT
Destination Attraction – is the first and the most important element of tourism product, until unless
there is an attraction, then only a tourist would be encouraged to visit a particular place.
Accessibility – can be defined as means by which a person/tourist can travel or reach to particular place
or destination.
Accommodation – is very crucial and plays a central role and is very essential requirement of every
tourist destination.
Amenities – every tourist travelling to a new destination desires for world class facilities and services. In
order to fulfil their demand huge efforts are made by the industry.
Product Types-In most destination facilities, products and services have different types. This includes
core, facilitating, supporting and augmented products.
Core products our products that the customer is really buying.
Facilitating products are goods and services that must be present from the guest to enjoy and to use the
core products.
Supporting products on the other hand add value to the core product and help differentiate it from its
competitors.
Augmented products are factors that help the consumer consider the product over other products
because this includes product accessibility, geographical location, operating hours, atmosphere,
customer satisfaction and customer interaction with each other.
✓ core product- hotel room
✓facilitating product- check in and check out services
✓ supporting products - business center and room services
✓ augmented products - interaction with service provider and other customers.
Accessibility - refers to how available the product is to the customers in terms of location, hours of
operation and ease of availing the products and services.
Atmosphere - is the overall field of the place. This is much appreciated through the five senses. The
product or service should be appealing to the eye, soft the ears, gentle to the touch and smelling
sweetly. Another term for this is the ambiance of the place.
Customer interactions with the service system - is inevitable for the tourism product. Consumption
happens within the destination. Hence, customer interaction with service staff should be pleasant and
memorable.
Customers interact with other customers - consuming the product or service along with them. The
experience becomes highly variable depending on how customers behave and interact with each other.
Customers also do co- production of the product or service - as such, involving the guest in the delivery
of the service can actually improve customer satisfaction, reduce expenses and increase capacity. The
presence of self-service counters, for instance, is aimed at making customers become co-producers of
value.
PRODUCT LIFE CYCLE-In tourism and hospitality, product life cycle can be referred to in two levels. First is
specific product and service on a business or corporate level such as hotel, restaurant, resort property,
etc. Second is an aggregate of offerings within a whole destinations.
Understanding the concept of the product life cycle will help a marketer analyze the kind of promotional
tools and activities that will be most effective. Introducing a new product entails a more aggressive
information drive than a product that is at its maturity stage.
Product Development - The product development stage begins with an idea of a new product that could
possibly satisfy an existing need or want in a specific market. The product idea is further developed
through markets research and product testing to determine the flexibility of the product. The business
plan with a sound financial and marketing strategy is also prepared during this stage.
Introduction – The introduction phase is the period wherein the product is introduced to the market. It
may be a period of rapid or slow sales growth depending on market acceptability of the new product.
As the product is being introduced into the market, profits maybe non-existent on this stage since
investments have been made during the product development stage. An aggressive marketing strategy
should be implemented to ensure market awareness and penetration. Since the product is new the
features of the product should be introduced extensively to its target market.
Growth Stage - The growth stage is a period of rapid market acceptance and increasing profits. As the
product becomes popular with its target market, an increase in sales is projected at this stage. Returned
on investments will materialize at this stage of the product life cycle.
Maturity Stage - The maturity stage is a period where sales plateau because the product has achieved
acceptance by most of its potential buyers. It is also likely that competition has come in and attempts to
grab the products market share. At this stage to prevent declined the company can introduce some
innovation as follows:
1. Market Modification - the company may introduce innovations to the product in order to attract a
related segment of the market and increase consumption further.
2. Product Modification - The company can opt the change product characteristic such as product
quality, features, and style to attract new users and the stimulate more usage.
3. Marketing Mix Modification - this is when the company attempts to improve sales by changing one or
more of the marketing mix elements to attract new customers and prevent consumers from switching
brands.
Decline Stage - some successful products stay in the business for long period of time. By employing
product modification, market modification and marketing mix modification, some products stays in the
market and avoid decline. The decline stage is the period when sales fall off quickly and profits drop.
Phase - out - without the shift in the strategy to adopt to the prevailing business environment, phase-
out maybe inevitable. This is the stage when the production of the product or availability of the service
will be shut down or deleted from the company's product line.
Destination Life Cycle -Butler (1980) developed a concept popularly known as the Destination Life Cycle
(DLC) which uses the product life cycle as its foundation. The DLC provides a framework for the
marketing and management of destinations as it develops over time. (Hsu et al, 2007)