TOURISM AND HOSPITALITY MARKETING

TOUR12H / REVIEWER PRELIM/ PPT BASED / MS. GUNDAO

L1: TOURISM MARKETING differences in rates help manage capacity and yield to maximize
TOURISM is a social, cultural and economic phenomenon which profitability.
entails the movement of people to countries or places outside
their usual environment for personal or business/professional SUBSTITUTABLE – Competition in the tourism industry is
purposes. These people are called visitors (which may be either intensifying. With new destinations emerging and competing in
tourists or excursionists; residents or non-residents) and tourism the global marketplace, one destination can easily be substituted
has to do with their activities, some of which involve tourism for another destination. It is quite a challenge to establish loyalty
expenditure. (United Nations World Tourism Organization) among clients since there is a wide range of product offerings to
choose from. With the many choices available, the tourism
MARKETING is the management process responsible for product is highly substitutable.
identifying, anticipating and satisfying customer requirements
profitably.” L2: MARKETING AS MANAGEMENT
PROCESS
WHAT IS TOURISM ACTUALLY SELLING? 1. Marketing Information
Tourism is not a single product. It is a combination of products and - With the advent of technology, the provision for a
services which results in a holistic experience for the traveler. marketing information system enables the organization
Unlike consumer products which can be availed off the shelf, to compile an updated set of information about its
tourism products have unique characteristics that make their customers, competitors, and the organization capability
marketing and promotions quite challenging. Additionally, tourism and effectiveness.
is a highly involved product.
2. Marketing Planning
UNIQUE CHARACTERISTIC OF TOURISM PRODUCT - This involves an analysis of the marketing environment
in relation to the potentials of one’s business. It also
INTANGIBLE – Tourism products cannot be touched, smelled, involves the setting up of objectives and an evaluation
tasted, felt or nor heard prior to purchase. They cannot be of the milestones that the company has reached.
subjected to prior scrutiny. One cannot examine nor test them
before purchase, unlike consumer products which can be sampled. 3. Planning Tactical Campaigns
- This step ensures that practical and realistic tactical
INSEPARABLE – The tourism product cannot be separated from campaigns are conducted in support of the
the consumer. When tourists avail of products and services, they comprehensive marketing strategy.
have to personally go to where the products are. Since what is
being sold is the experience, the product and the consumer 4. Marketing Operations
cannot be in two different places, they have to be in the same - This process involves the challenging part of
place. Product cannot be delivered to where the consumer is. implementing the planned strategic and tactical
Most of the time it is the consumer who goes to where the campaigns by coordinating with all stakeholders, fine
product is to avail of the product. tuning the marketing mix, and ensuring that activities
are conducted as planned
VARIABLE – The tourism experience is likely to be different
depending on when the product is availed, who one is with, and 5. Monitoring and Control
how the service providers deliver the service at the time of - This involves the ongoing process of evaluating sales
consumption. This is why standardization of operation is crucial in data and financial and financial performance versus
the tourism industry. marketing activities conducted. It includes handling of
customer feedback and complaints (if any). And
PERISHABLE – The tourism product is one of the most highly coordination with what the staff has to say about the
perishable of products. Perishability refers here as, not being able marketing campaigns. Finally, it includes being aware of
to forward inventory to the next day. It does not refer to food what the competitors are doing.
being spoiled and thrown away. Products become perishable
when it can no longer be consumed today even when no one THE MARKETING MIX
consumed it the day before. Unlikely consumer products such as 4 Ps of MARKETING MIX
pens; if the pen was not sold today, it can still be stored in a ❖ PRODUCT – The product or service is what the company
warehouse to be available for sale the next day. Airline and is offering to satisfy a consumer’s wants or needs.
restaurant seats, hotel rooms and function rooms are perishable ❖ PRICE – The Price is the value that the seller puts on the
products. A seat or a room that is not sold today cannot be sold product or service. This includes the cost of the product
some other day. and the profit the seller wishes to make.
❖ PLACE – The place is the means by which the product or
SEASONAL – Seasonality does not only refer to season of the year service reaches the consumer.
or the weather conditions. It also refers to behavioral patterns of ❖ PROMOTION – The promotion is the strategic plan by
the travel market. The seasonality of the tourism product hinders which customers are informed about the product or
it from maximizing its profit all year round. Hence, intensified service.
marketing during the lean season will help increase demand for A well planned and executed marketing mix will enable marketers
the product. This is also the reason most tourism products, such as to move their products or service successfully to the consumers.
airlines and resorts, have different rates throughout the year. Such

AELix 1
TOURISM AND HOSPITALITY MARKETING
TOUR12H / REVIEWER PRELIM/ PPT BASED / MS. GUNDAO

INTEGRATED MARKETING COMMUNICATION APPROACH (IMC)

- Integrated Marketing Communications Approach was L4: FACTORS THAT INFLUENCE
born out of a need to enhance the businesses to
CONSUMER BEHAVIOR
promote their products. IMC is the process of using all
forms of promotion to achieve maximum
communications impact while maintaining a consistent MOTIVATIONS – are inner drives that make people take a specific
image for the products and services. plan of action to satisfy their needs.
Maslow’s Hierarchy of Needs
FACTORS THAT CONTRIBUTED TO THE GROWTH OF IMC 1. Physiological Need – it refers to basic needs for survival
❖ Growth of technology such as need for food and water.
❖ Great challenge for advertising agencies and marketing 2. Safety – refers to personal and perceived degree of
departments safety and security.
❖ The rise of big retailers such as SM Mall, Puregold, 3. Belongingness – refers to acceptance in a social group.
Robinson’s Mall etc 4. Esteem/status – refers to desire for prestige and status.
❖ Growth and development of database marketing has 5. Self-actualization – refers to the goal of self fulfillment
enhanced the use of the IMC approach.
CULTURE – The impact of culture cannot be disregarded in the study of
consumer behavior. For some time it has been understood that
INTEGRATED MARKETING COMMUNICATION APPROACH
different value orientations cause variation in preferences for products
★ TO REACH TARGET MARKET
and brands. Values of both consumers and marketers are defined by
★ TO ACHIEVE COMPANY OBJECTIVE their culture.
★ WITHIN THE AVAILABLE BUDGET
LIFESTYLE – A lifestyle is a person’s patterns of living as expressed in
L3: MARKETING SEGMENTATION one’ activities, interest, and opinions (Kotler et al 2010). It portrays the
Different tourists have different needs. The tourism market can whole person interacting with external forces. Life styles are by no
rarely be satisfied by a single offering. As a consequence, market means universal since they also interact with culture, economic
segmentation has developed to become a very popular marketing situation, and personality. Marketers are in search of relationships
strategy among tourism destinations and businesses. It is based on between their products and people’s lifestyles
the notion that different tourism destinations appeal to different
AGE AND GENDER
types of tourists
– Age pertains to the number of years a person has been living. Age is a
traditional way of segmenting the market and also greatly influences
VARIABLE TO SEGMENT MARKET consumer behavior.

GEOGRAPHIC - Geographic segmentation divides the market into – Gender on the other hand, also influences consumer behavior. The
different geographic units such as: female market is steadily increasing and has been observed to be more
- Nations, Countries, barangays, States, Cities, Town, discriminating than its male counterparts. The gay market is also being
Regions, Neighborhoods seen by marketers as having a set of preferences different from the
male and female markets.
DEMOGRAPHIC - Demographic segmentation refers to segmenting
the market based on variable such as: SOCIAL CLASS – Social class is one’s occupation, family prestige, and
- Age, Income, Religion, Life Cycle, Occupation, Race, value of home or neighborhood (Kotler et al, 2010). Social class is
Gender, Education commonly referred to in the Philippines through letters A, B, C, D, E. It
has been observed that those with higher income tend to travel more
PSYCHOGRAPHIC - Psychographic segmentation divides and those families who have higher income are better educated. Travel
products and services are mostly designed for the elite class A, B
consumers based on different psychographic profiles such as;
market. However, the presence of low-cost carriers, for instance,
- Social Class, Personality, Life Style, Characteristics
creates travel opportunities for the lower class markets.
BEHAVIORAL - Behavioral segmentation refers to dividing groups LIFE CYCLE – refers to the stages an individual goes through in their
based on their knowledge, attitude use of or response to a lifetime. Single people choose destinations that have fun and
product or services such as; adventure more than those who are married and have young children.
- Special Occasions, User Status, Benefits Sought, Loyalty Being married and with a four-year-old son, our choice of destination
Status, Usage Rate, Buyer Readiness has shifted to places with theme parks, child-friendly accommodations
and familiar food choices.
TECHNOGRAPHIC - Cooper (2006) suggests that there is a fifth
variable for market segmentation which he calls, Technographic REFERENCE GROUPS – are known to be a set of people who have a
segment. With the prevalence of the internet and the world wide direct or indirect influence on other people’s attitudes or behavior.
web, there is an increasing divide between the users and These people can be a member of your family, a teacher or a classmate
non-users of technology in searching for travel information. The in school, a boss or a colleague in your workplace, or your priest or
more technological savvy one is, the more information he gets pastor in the church.
from the internet. Hence, travel websites and lifestyle travel
PERSONALITY – refers to distinguishing psychological characteristics
portals will allow customers to customize their travel needs.
that lead to relatively consistent and enduring response to the
environment. This has a great influence over one’s buying behavior.

AELix 2