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Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared...

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Copyright © 2009 by Nelson Education Ltd. Chapter 1-1 THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Prepared by Simon Hudson, Haskayne School of Business Simon Hudson, Haskayne School of Business University of Calgary University of Calgary and and Marion Joppe, University of Guelph Marion Joppe, University of Guelph 1-1
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Page 1: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-1

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

1-1

Page 2: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-2

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

1-2

Page 3: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-3

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

Page 4: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-4

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

Page 5: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

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1The Tourism Marketing Environment

Table 1.1

Overnight Travel between Canada and Other Countries

Page 6: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

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1The Tourism Marketing Environment

International Tourist Arrivals and Receipts

Page 7: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

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1Annual Growth in International Tourist Arrivals

The Tourism Marketing Environment

Page 8: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-8

1Tourism Arrivals to Canada

The Tourism Marketing Environment

Page 9: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-9

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

Page 10: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-10

1The International Marketing Task

The Tourism Marketing Environment

Page 11: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-11

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

Page 12: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-12

Four Unique Characteristics of Services

1The Tourism Marketing Environment

IntangibilityIntangibility

PerishabilityPerishabilityInseparabilityInseparability

HeterogeneityHeterogeneity

Page 13: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-13

1The Tourism Marketing Environment

Table 1.4

Page 14: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-14

1The Tourism Marketing Environment

Four Unique Characteristics of Services

Table 1.4

Page 15: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-15

Service Marketing Models

• Services Marketing Triangle– 3 key players

• Expanded Marketing Mix for Services

The Tourism Marketing Environment

Page 16: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-16

The Services Marketing Triangle

1The Tourism Marketing Environment

Page 17: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-17

Expanded Mix for Services: The Seven Ps• Product

• Price

• Place

• Promotion

• People

• Process

• Physical Evidence

1The Tourism Marketing Environment

Page 18: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

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1The Tourism Marketing Environment

Key Players in the Tourism Industry

Page 19: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-19

Major Components in a Company’s Microenvironment

1The Tourism Marketing Environment

Page 20: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-20

1The Tourism Marketing Environment

Major Components in a Company’s Macroenvironment

Page 21: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-21

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

Page 22: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-22

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

Page 23: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

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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

Page 24: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-24

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

Page 25: Chapter 1-1 Copyright © 2009 by Nelson Education Ltd. THE TOURISM MARKETING ENVIRONMENT 1 Prepared by Simon Hudson, Haskayne School of Business University.

Copyright © 2009 by Nelson Education Ltd.

Chapter

1-25

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


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