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Copyright © 2009 by Nelson Education Ltd.
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THE TOURISM MARKETING
ENVIRONMENT
1
Prepared byPrepared bySimon Hudson, Haskayne School of BusinessSimon Hudson, Haskayne School of Business
University of CalgaryUniversity of Calgary
andand
Marion Joppe, University of GuelphMarion Joppe, University of Guelph
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Copyright © 2009 by Nelson Education Ltd.
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Topics
• Influence of marketing on tourism
• Services marketing models
• Tourism in Canada
• Key players in Canada’s tourism industry
• Micro and macro-environments
1The Tourism Marketing Environment
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Copyright © 2009 by Nelson Education Ltd.
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Tourism Tourism
1The Tourism Marketing Environment
• the activities of persons travelling to and staying in places outside their usual environment for not more than one year for leisure, business, or other purposes not related to the exercise of an activity remunerated from within the place visited
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1The Tourism Marketing Environment
• any person travelling to a place other than that of his or her usual environment for fewer than 12 months and whose main purpose for the trip is other than exercise of an activity remunerated from within the place visited
Tourism marketTourism market• a market that reflects the demands of
consumers for a wide range of travel and hospitality products and services
VisitorVisitor
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1The Tourism Marketing Environment
Table 1.1
Overnight Travel between Canada and Other Countries
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1The Tourism Marketing Environment
International Tourist Arrivals and Receipts
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1Annual Growth in International Tourist Arrivals
The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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1Tourism Arrivals to Canada
The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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Influence of Marketing on Tourism
1The Tourism Marketing Environment
International MarketingInternational Marketing• business activities designed to plan, price,
promote, and direct the flow of a organization’s goods and services to consumers in more than one country for profit
• Figure 1.4 illustrates the environment of an international marketer
Copyright © 2009 by Nelson Education Ltd.
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1The International Marketing Task
The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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Self-Reference Criteria (SRC)Self-Reference Criteria (SRC)
1The Tourism Marketing Environment
• unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions
EthnocentrismEthnocentrism• closely related to SRC• notion that one’s own culture knows best how to
do things
Both limit the international marketer’s ability to understand and adapt to differences prevalent in foreign markets
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Four Unique Characteristics of Services
1The Tourism Marketing Environment
IntangibilityIntangibility
PerishabilityPerishabilityInseparabilityInseparability
HeterogeneityHeterogeneity
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1The Tourism Marketing Environment
Table 1.4
Copyright © 2009 by Nelson Education Ltd.
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1The Tourism Marketing Environment
Four Unique Characteristics of Services
Table 1.4
Copyright © 2009 by Nelson Education Ltd.
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Service Marketing Models
• Services Marketing Triangle– 3 key players
• Expanded Marketing Mix for Services
The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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The Services Marketing Triangle
1The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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Expanded Mix for Services: The Seven Ps• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
1The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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1The Tourism Marketing Environment
Key Players in the Tourism Industry
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Major Components in a Company’s Microenvironment
1The Tourism Marketing Environment
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1The Tourism Marketing Environment
Major Components in a Company’s Macroenvironment
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Demographic and Economic Forces
• DemographicsDemographics– statistics that describe the observable
characteristics of individuals– most notable demographic trend in
Canada is the aging population
• Economic forcesEconomic forces– affect consumer purchasing power and
spending patterns
1The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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Environmental, Natural, and Technological Forces• Environmental and Natural ForcesEnvironmental and Natural Forces
– see Banff Snapshot, pp. 31-2
• Technological forcesTechnological forces– most dramatic force that has forces tourist
organization to adapt
1The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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Political, Cultural and Social Forces
• Political forcesPolitical forces– see Myanmar Case Study at end of
chapter
• Cultural and social forces Cultural and social forces – institutions and other forces that affect
society’s basic values, perceptions, preferences, and behaviours
1The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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Legal Forces
• Legal forcesLegal forces– increased legislation and regulation that
affects business, enacted to protect companies and consumers from unfair business practices
– smoking restrictions in hotels and restaurants
1The Tourism Marketing Environment
Copyright © 2009 by Nelson Education Ltd.
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Cultural Trends• increased responsibility for those who drink & those who sell and
serve alcoholic beverages• desire to develop individuality in order to be seen and treated as
different from others (egonomics)• tendency to act and feel younger than one’s age (down-aging)• urge to change one’s life to a slower but more rewarding pace
(cashing out)• refusal to tolerate shoddy products and poor service (the vigilant
consumer)• acceptance of the gay and lesbian community• concerns for the environment• increasing desire for smoke-free restaurants and hotels• desire to regularly eat out
1The Tourism Marketing Environment