Tourism Marketing

Dr. Jerome H. BaldemoroAteneo de Naga University

1. Define tourism marketing.2. Determine the differences between

tourism marketing and product marketing.3. Describe a systematic approach to

marketing segmentation, orientation, strategies and plans.

4. Identify the procedures that should be used in marketing tourism destinations and organizations.

Learning Objectives:

The product and or service itself The methods of distribution The methods of pricing The methods of promotion The form of selling The form of advertising

Marketing consists of all those activities necessary to bring a product or service from the manufacturer to the end user. These activities include:

In relation to tourism, marketing is the systematic process by which an organization tries to maximize the satisfaction of tourist demand through research, forecasting and the selection of tourism products and services to meet that demand.

It is a management philosophy which in the light of tourist demand, makes it possible through research, forecasting and selection to place tourism products on the market in line with the organization’s purpose for the greatest benefit.

Tourism is a service. An intangible experience is being sold, not a physical good that can be inspected before is bought. For example, a consumer does not buy a bed or a beach, but buys a night’s lodging in a hotel at the seashore.

The service provided is usually composed of several components such as transportation, lodging, food and beverage, attractions, activities etc. the degree of success of anyone component influences the success of the other components.

Travel intermediaries are a necessity. Because most tourist services are located far from their potential customers, specialized intermediaries are necessary to bridge the gap between the producer and the tourists.

Uniqueness of Tourism Marketing

The organizations that market tourism destinations usually have a little control over the quality and quantity of services.

The guest’s satisfaction is a function of the staff providing the service.

Tourism demand is highly elastic, seasonal in nature and it is influenced by subjected factors such as price and the physical attraction at the destination

The intangible nature of tourism services means that the visitor’s travel experiences exist only in memory after the trip is over.

“Marketing is a continuous, sequential process through which management in tourism plans, researches, implements, controls and evaluates activities designed to satisfy both customers’ needs and wants and their own organization’s objective. To be effective, marketing requires the efforts of everyone in an organization and can be made more or less effective by the actions of complementary organizations.” –Morrison, A.M (2013)

Where are we now?

Where would we like to be?

How do we get there?

How do we make sure we

get there?

How do we know if we got

there?

A Systems Approach to Tourism Marketing

1. Planning2. Research3. Implementation4. Control5. Evaluation

PRICE Model Procedure for Tourism Marketing

Production Orientation: Greatest emphasis is placed on the services or products provided to the visitor:

Sales Orientation: The emphasis shifts to trying to outsell competitors and the focus is on the seller’s needs.

Marketing Orientation: The needs and wants of the visitor are the first priority for the marketer.

Stages in the Evolution of Tourism Marketing

Societal Marketing Orientation: organizations with a marketing organization recognize that they have a responsibility to society and local communities as well as to their visitors.

Sustainable tourism development: An approach to marketing that focuses on the satisfaction of visitor needs and wants while respecting the long-term interests of the community.

Before embarking on a program to market tourism in general or a specific tourism product or service in particular, it is necessary to develop a philosophy or orientation to guide one’s marketing efforts.

A product orientation emphasizes the products or services that are available. It may be successful if there’s a surplus of demand over supply. Thus, the destination which offers the best product will get the tourist. The old adage that reflects this is “Build a better mousetrap, and the world will beat a path to your door.”

Marketing Orientation

Is universally accepted way of analyzing demand. It is the grouping together of people with similar needs and wants for the purpose of serving the market better.

Market Segmentation

1. The market for a product or service such as a vacation, is made up of particular needs and preferences related to the product or service being marketed

2. The potential tourists can be grouped into segments whose members have similar characteristics.

3. A single product offering such as trip to Boracay will appeal to some segments of the market more than others.

4. Some firms and organizations can improve their marketing effort by developing specific product offerings to reach specific segments of the market

Market Segmentation: Four Assumptions

Socioeconomic and demographic variables

-Age, education, sex, income, family size. Family size cycle, social class, home ownership, race or ethnic groups, occupation. Psychographic variables

-Personality traits, life-style, attitudes, interests, opinions, motivation

Four Criteria for Market Segmentation

Product-related variables-Recreation activity, equipment type, volume usage, brand loyalty, benefit expectations, length of stay, transportation mode, experience references, participation patterns Geographic Variables

-Region, market area, urban, suburban, rural, city size and population density

TEXTBOOK:

Kotler, Philip et.al. Marketing for Hospitality and Tourism (2010). Fifth Edition. Pearson Education, Inc.

COURSE BIBLIOGRAPHY: Goeldner ,Charles R. and Ritchie,J.R. Brent. Tourism: Principles, Practices, Philosophies.

Tenth Edition. John Wiley & Sons, Inc.   Swarbrooke, John. The Development and Management of Visitor Attractions. Second

Edition(2002). Elsevier Science. PhD Kandampully, Jay, PhD Mok, Connie and PhD Sparks, Beverly. Service Quality

Management in Hospitality, Tourism and Leisure(2001). The Haworth Press, Inc Walker, John. Introduction to Hospitality (2009). Fifth Edition.Pearson Education, Inc.   Lumsdon, Les.Tourism Marketing(1997). First Edition. International Thomson Business Press.   Mancini, Marc, Ph. D. Access: Introduction to Travel and Tourism(2006). Thomson Asian

Edition. Delmar Learning.   Claravall, Bienvenido G. Travel and Tour Operations in the Philippines(2008). Second

Edition. Paul So and Partner. Libosada, Carlos Jr and Bosangit, Carmela.Introduction to Tourism:A Comprehensive Guide

to the Travel and Tourism Industry(2007).Anvil Publishing, Inc

References:

Prepare an advertising campaign that can help promote tourism of one place considering all the variables given.

Ex: “it’s more fun in the Philippines”

Activity

Tour And Learn Everything(TALE)in Bicolandia

Experience the BEST in Bicol Region

City of Pines “ BAGUIO’Philippines COOLest

From Island to HIGHlandDavao!!

City of Pasacao “ LOL’ PASACAO”

The concept of product life cycle is useful to the markets as an additional guide on what strategies should be used in choosing, attracting and serving target markets. It suggests that a product, service or destination moves through distinct stages.

Product Life Cycle

A strategic marketing process can be divided into three elements

1. Market planning2. Target market selection3. The marketing mix selection

Strategic Marketing Process

1. Collection of data- data can be collected into two ways, from secondary sources and primary sources

2. Analysis of data – data is usually organized and interpreted. This requires a great amount of skill and understanding. At present, computers shorten the process of organizing and interpreting the data.

3. Identification of alternative strategies for reaching the desired goal – in most cases, there are several ways to arrive at a desired goal.

4. Cost-benefit analysis – the cost/benefit analysis of several methods for reaching the goals would indicate which of the alternatives or combination of them would be best from a financial standpoint.

7 steps in the market planning process

5. Selecting alternatives and plan formation – after the variables and cost/benefit for each are identified, it is then decided which one should be carried out by the other organization.6. Control procedures – these are methods which analyze the progress made in achieving the goals of the project.7. Plan information – putting into effect the plan of action and supervising it.

1. Estimate the approval of an area’s attractions. This include the degree of interest of the tourist of the area and the length of time the tourist will spend visiting it.

2. Estimate the distance in both travel time and travel costs. The greater the attraction the longer the distance potential tourists will travel.

3. Identify the potential target markets geographically by locating the population clusters within the maximum distance determined from the estimated travel time and lure of the attraction.

4. Identify the actual and potential competition in the target market

Four steps in identifying Target markets

There are six steps in determining a marketing strategy. These are: Identify the market segment Determine the preferences of the market segment. Determine what influences the segment most – price,

product, image, sales persuasion, customer service, product availability etc.

Realize the importance of two clients-the traveler and the travel intermediary such travel agent and tour operator.

Determine the marketing mix that will influence the segment identified.

Establish a price policy that will maximize profits by balancing the number of tourists with the capacity of the attraction

Selecting a marketing strategy

Marketing mix is the combination of elements –product, price, promotion and distribution that interact and complement each other to attain the objectives of the market plan

Marketing Mix

A. ProductA vacation consists of several parts or products

such as transportation, accommodation, food and beverage, sightseeing, entertainment and souvenirs. The philosophy of a consumer marketing orientation suggests that products should satisfy the needs and wants of the customer.

B. Priceis the result of supply and demand. When supply

exceeds demand, price tends to decrease. When demand exceeds supply, price tends to increase. For example higher prices are charged during the peak seasons and lower prices during off seasons.