49069460 Ch01 Introduction to Tourism Marketing

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Chapter 1

Introduction to tourism marketing

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Tourism in the experience

economy From service economy to experience

economy

Tourism experience ± core value of service delivery in tourism

Tourism system: demand, travel,

destination, marketing Destination mix: FAITH

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Concepts related to customer 

experience

Customer expectation

Customer perception Customer satisfaction

Customer value

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The evolution of marketing

concepts Production orientation

Sales orientation

Marketing orientation

Personal marketing orientation

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Production orientation

Dominated business operation

approaches until mid 1950s

Concerned with product supply issues

Supply shortage comparing to mass

demand

Common belief: supply creates its owndemand 

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Sales orientation

Mid 1950s to early 1970s

More business efforts on salespromotion strategies and

advertisements

Still lack of attention to customers¶needs

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Marketing orientation

Starting from early 1970s

Competitive business environment

Unprecedented attention toconsumer needs and wants

Customer centred and market-

driven business practices

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Personal marketing orientation

Propelled by technology

Tailor marketing programs to the

individual Mass customisation

Customer relationship management

(CRM) Database marketing

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What is marketing?

Definitions of marketing

Marketing mix

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Definitions of marketing (1)

Philip Kotler (2003): a societal

process by which individuals and

groups obtain what they need and

want through creating, offering, and

freely exchanging products and

services of value with others

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Definitions of marketing (2)

American Marketing  Association

( AMA) (1995): the process of 

planning and executing theconception, pricing, promotion and

distribution of ideas, goods, and

services to create exchanges thatsatisfy individual and organisational

goals.

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Definitions of marketing (3)

AMA (2004): an organizational

function and a set of processes for 

creating, communicating anddelivering value to customers and for 

managing customer relationships in

ways that benefit the organization

and its stakeholders.

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Marketing mix

Four Ps: P roduct , price, place, and

 promotion

Four Cs: customer solution, customer cost , convenience, and

communication

Seven Ps:P 

roduct , price, place, promotion, people, process, and

 physical evidence

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Characteristics of tourism

services

Characteristics of services

Special features of travel and

tourism

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Characteristics of services

Intangibility

Inseparability

Variability

Perishability

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Special features of travel and

tourism Seasonality

Unclear ownership

Interdependence

Sensitivity to crises

Fixed capacity

Shorter exposure to services

More emotional buying appeals

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Special features of travel and

tourism Greater emphasis on stature and

imagery

More variety and types of distributionchannels

Easier copying of services

Difficulty of differentiating tourism,travel and hospitality services

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Destination marketing

organisations

National tourism organisations

(NTOs)/ national tourism

administrations NTAs)

International tourism organisations

Inter- and intra-organisational

collaboration

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NTOs/NTAs

Responsible for many aspects of a

nation¶s tourism development

Destination marketing as a major or 

sole function

Branch offices in major source

markets

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International tourism

organisations

World Tourism Organisation

(UNWTO)

World Travel and Tourism Council

(WTTC)

Pacific  Asia Travel  Association

(PATA)

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Inter- and intra-

organisational collaboration

International marketing collaboration:

E.g., UNWTO Silk Road Project

Inter-organisational collaborations

within a destination

Departmental collaboration and

cooperation within a tourism company

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Summary

Nature of tourism in the experience

economy

Customer experience related concepts Evolution of marketing concepts

Definitions of marketing

Characteristics of tourism services

Importance of tourism marketing

Destination marketing organisations

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