Tourism Marketing

TOURISM
MARKETING
(updated March 2015)
Sourced from the Lesson Plan for Principles of Tourism II

OBJECTIVES
Explain the basic concepts of marketing.
Identify the special dimensions of
marketing different forms of tourism
Differentiate between marketing and
selling/promotion.
Discuss the basic marketing techniques.

UNIT TOPICS
• What is Marketing?
• The Evolution of Marketing , Different Definitions and Concepts of Marketing
• The Differences between Marketing and Selling
• Different Business Philosophies
• Marketing Orientation
• Tourism as a Service Product, the concept of value within tourism
• The characteristics of the service product
• Other aspects of tourism as a service product
• Tourism Product and Risk
• The Adoption of a Marketing Operation
• Criticism of the Marketing Operation Concept
• A Societal Marketing Approach

DEFINITION OF MARKETING
“ Marketing involves the interaction and inter-
relationships among consumers and producers of
goods and services, through which ideas, products
and services and values are created and
exchanged for the mutual benefit of both groups.”
- Weaver D. and Lawton L (2010) Tourism Management. 4th ed. John
Wiley & Sons, Australia.

THE EVOLUTION OF MARKETING
•Marketing has evolved against a background of economic and business
pressures
•The pressures have required an increased focus on the adoption of a series of
managerial measures based upon satisfying consumer needs.
•The key to the importance of marketing within tourism has been he level of
economics growth in past years which has led to subsequent improvements in
living standards, an enlargement of the population and increases in discretionary
time.
•Modern tourism marketing has emerged as a business reaction to changes in
the social and economic environment, with the most successful companies or
tourist bodies having provided the right organizational structure and product
offering for the consumer or visitor.

The history of marketing and modern business practice
have developed in three distinct stages:
1.The production era, based on the notion that if products
were priced cheaply, they would sell regardless of
consumer preferences. This was deemed an inward,
product-oriented focus with little concern for consumers.
2.The sales era, were selling was the prime focus
regardless of the market’s willingness to accept the product.
3.The marketing era, replacing the preceding approaches:
businesses now produced products they could sell which
were tailored to consumer needs to satisfy the purchaser,
effectively making the organization more outward looking.

The important factors that have ushered in marketing
during the past half-century are as follows:
•The increases demand were at a lower rate than the rises in
productivity.
•The consumer was becoming more affluent and therefore it was
possible to develop products that could be sold using a range of
nonprice attributes.
•The distance between the tourism product provider an tourist has been
continually increasing.
•New tourism and hospitality products were being launched which
required more emphasis on marketing.
•As society developed, the mass market splintered into a number of
sub-market while at the same time the ass market became increasingly
difficult to reach.

Different definitions and Concepts of marketing
The concept of value within tourism
•Companies have to find ways to ensure they optimize the
delivery of value.
•The value of tourism incorporates a number of different aspects
which include the perception of price, quality and image as well
as the economic and social aspects of the consumer.

A SYSTEM FOR DELIVERING VALUE
Approaches Uncovering value
needs
Developing value Delivering value
Gathering/ Analytical Data/feedback of
company
representatives
surveys, etc.
Operations/customer
interfaces and touch
points
Logistics/product
quality, service
Organisational Interpretation of
customer
requirements and
resultant expected
organisational
competencies
Training/motivation
of staff and working
with suppliers who
also add quality
Improved attitudes
and behaviour of
employee interface

Product perceived value is based upon:
•Actual price asked and relativity to prices for the same or similar
product offered elsewhere.
•Perceived quality, service an image associated with the
brand/product.
•Convenience of purchasing product method or channel its
congruence to the needs of the customer.
•Consumer difficulty in ability to assess the benefit/relative price of
the product.
•Experience associated with the purchase or consumption process.

The Differences between Marketing and
Selling
“Selling and marketing are antithetical rather
than synonymous or even complementary .
There will always, one can assume, be a need
for some selling, but the aim of marketing is to
make selling superfluous.
Ducker (1973:64)

The sales and marketing concepts compared
•The sales concept focuses on products and uses selling and
promotion to achieve profits through sales volume.
•The marketing concept focuses on customer needs and utilizes
integrated marketing to achieve profits through customer satisfaction.
Sales
Concept
Focus
Selling/Product
Means
Promotion
End
Profit through
sales volume
Marketing
Concept Customer needs Integrated Marketing to specific segments Profits through
Customer satisfaction

FOUR POSSIBLE BUSINESS PHILOSOPHIES
1.Product- orientated company
2.System/technology-orientated company
Product
Creation
Promotion Sales
Technology Product
Formulation
Product
creation
Promotion Sales

3.Market-orientated company
4.Integrated company
Marketing
Research
Product
Formulation
Product
Creation Promotion Sales
Marketing Research
Product formulation a company-wide marketing principles incorporated
Product
Creation Promotion Sales

MARKETING INFORMATION
1. It is a management orientation or philosophy.
2. It encourages exchange to take place.
3. It involves long- and short-term planning.
4. It requires efficient, cost- effective methods.
5. It requires the development of an integrated
company environment.

The difference between transaction and
relationship marketing
Transaction Marketing Relationship Marketing
Short-term orientation sales as end
result
Long term orientation, the sale is the
only the beginning.
“Me” orientated ‘We’ orientated
Focus on achieving a sale Focus on retention and repeat sales
Emphasis on persuasion to buy Stress on creating positive
relationships
Need to win , manipulation Providing trust an service
Stress of conflict of achieving a
transaction
Partnership and cooperation to
minimize defection and provide
longer-term relationship(with
customers or strategic alliances, joint
ventures, vendor, partnering, etc.)
Anonymous customer won by
conquest in a carefully planned event
Individual profile of customers known
so that a continuing process can
arrange.

TOURISM PRODUCTS
Service Good
Intagibility More Intangible
Perishability Often storable
Inseparability Standardized
Intangibility: it cannot be easily evaluated or demonstrated in advance of its
purchase
Perishability: service products such as tourism, unlike goods, cannot be stored for
a sale on a future occasion.
Inseparability: both service provider and customer are present when the service
function occurs.

OTHER ASPECTS OF TOURISM AS A SERVICE PRODUCT
1. Shorter aspects of tourism as a service
delivery.
2. More personal.
3. Growing use of self-service.
4. Greater significance on managing evidence.
5. Complementarity is greater.
6. Easier copying of services.

TOURISM PRODUCT & RISK
 A major aspect of consumer behavior, linked to the
purchase of tourism products, is the notion of risk and
consumer’s judgement about the likelihood of a problem
occurring.
 Tourism products often involve a complex decision
making process because the purchase is relatively high
risk and high involvement.
 The concept is also related to individual feelings of
uncertainty based upon the subjective possibility of any
occurrence of the ff. types of risk.

The adoption of tourism marketing
Tourism marketing involves a number of special characteristics:
1. Marketing is a philosophy with the overriding value that the
decision-making process of any organization has to be led by
the consumers needs, the marketplace and the company's’
and resources.
2. Successful marketing requires a special organization
structure that believes in integrating the principles of
consumer orientation throughout the organization
3. Marketing requires innovative methods of thinking and
planning so that new ideas are generated to take advantage
of opportunities or to improve existing methods of
marketing.

THE ADOPTION OF A MARKETING OPERATION
Tourism marketing involves a number of special
characteristics
Marketing is a philosophy with the overriding value that the decision-
making process of any organization has to be led by the consumer’s
needs, the marketplace and the company’s assets and resources.
Successful marketing requires a special organization structure that
believes in integrating the principles of consumer orientation
throughout the organization.
marketing requires innovative methods of thinking and planning so that
new ideas are generated to take advantage of opportunities or to
improve existing methods of marketing

CRITICISMS OF THE MARKETING CONCEPT
Environmental of the marketing impact
Overemphasis on profitable products
Invasion of privacy
Waste of resources on tourism market

A SOCIETAL MARKETING APPROACH
It is important to recognize that consumers are now
better educated and are competent to select
products that are not creating undue problems to
society.
If organizations or their products create problems,
thee are articulate pressure groups and government
legislation available for consumer and
environmental protection.
Three basic issues to consider:
Consumerism
Corporate social responsibility
Ethics

SOME POINTS RELEVANT TO SOCIETAL MARKETING
APPROACH
Good business managers should be socially responsible to all
stakeholders, related to the company and tourism offer so
as to minimize social costs.
Managers should be honest in claims an promotions, not be
deceptive or agree to misleading advertising.
The products offered should not cause harm or
unacceptable tourism impact and managers should
communicate any risks which are known to be associated
with any product
Marketers should undertake not to adopt sales techniques
under the guise of its being research

Tourism Marketing

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