Tourism and Hospitality Marketing

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Questions and Answers

Explain how creating, delivering, and communicating superior value contributes to the strategic process of marketing.

It helps in selecting target markets, acquiring, retaining, and growing customers.

Discuss the ethical responsibilities of tourism operators in preserving local culture and heritage, referencing the ethical guidelines from DOT.

Festivals should be based on heritage, souvenir products should not harm biodiversity, portrayals should be decent, historical buildings should be preserved authentically, and local cuisine should be used.

How has the rise of social media impacted the methods of planning and sharing in the tourism industry?

Social media has significantly impacted tourism, with a large percentage of people using online sources to plan travel, share experiences, and post reviews.

Explain the significance of 'co-creation' as a factor affecting tourism and hospitality marketing.

<p>Co-creation involves collaboration with customers in the development of products and services, enhancing customer satisfaction and loyalty.</p> Signup and view all the answers

Illustrate how self-reference criterion (SRC) and ethnocentrism can impact marketing decisions in the tourism and hospitality sector.

<p>SRC and ethnocentrism can lead to biased decisions that do not consider other cultural values, experiences, and knowledge, potentially impacting international marketing efforts.</p> Signup and view all the answers

How does relationship marketing contribute to the success and sustainability of tourism and hospitality businesses?

<p>Relationship marketing focuses on building and maintaining ongoing relationships with customers, leading to increased loyalty, repeat business, and positive word-of-mouth referrals.</p> Signup and view all the answers

In the context of tourism, what is the role of a Unique Selling Proposition (USP) in attracting customers?

<p>The USP differentiates a tourism product or service from competitors by highlighting its distinct characteristics, feature, or benefit, making it more attractive to potential customers.</p> Signup and view all the answers

Describe how a competitive advantage can be leveraged in the tourism industry to ensure business success.

<p>A competitive advantage, which highlights the key strengths of tourism products, ensures business success by attracting customers over competitors and sustaining market position.</p> Signup and view all the answers

Explain the importance of target market segmentation in tourism and hospitality marketing strategies.

<p>Target market segmentation allows for focused marketing efforts towards specific groups of consumers, enabling tailored products/services and more effective communication.</p> Signup and view all the answers

Outline how demographic factors are utilized in segmenting the tourism market and provide examples of such factors.

<p>Demographic factors provide basic information such as age, gender, ethnicity, income, etc., which help marketers understand and cater to the needs of different groups.</p> Signup and view all the answers

Describe the role of psychographics in understanding tourist behavior and how it extends beyond basic demographic data.

<p>Psychographics delve into lifestyles, interests, opinions, and preferences to offer a more detailed understanding of tourists' motivations and behaviors.</p> Signup and view all the answers

How can geo-demographics be applied in the tourism sector to refine marketing strategies for specific locations?

<p>Geo-demographics study the population and characteristics based on where they live, enabling marketers to tailor strategies that resonate with local tastes and preferences.</p> Signup and view all the answers

Elaborate on how behavioral-occasion segmentation can be used to target tourists during specific times of the year or for particular events.

<p>Behavioral-occasion segmentation targets tourists based on their knowledge, attitudes, or responses to a product, especially during key holidays or celebrations, enhancing promotion relevance.</p> Signup and view all the answers

Explain how benefit segmentation can be used by a hotel chain to attract different types of customers.

<p>Benefit segmentation targets customers based on the value they seek, enabling hotels to tailor services and messaging that appeal to those looking for relaxation, adventure, or business amenities.</p> Signup and view all the answers

Discuss the potential impact of reference groups on the buying decisions of tourists and how marketers can leverage this.

<p>Reference groups exert influence and pressure on buying decisions, so marketers can leverage this by using endorsements, testimonials, and influencer marketing.</p> Signup and view all the answers

Describe the role of 'Positioning' in tourism and hospitality marketing and how it influences customer perception.

<p>Positioning involves designing an organization's offering to occupy a distinct place in the mind of the target market, influencing how customers perceive its value relative to competitors.</p> Signup and view all the answers

How does branding in the tourism sector help create a memorable and recognizable identity for a destination or service?

<p>Branding uses symbols, colors, slogans, and images to create a recognizable identity that evokes specific perceptions, helping destinations and services stand out and become memorable.</p> Signup and view all the answers

Explain how the 'product' element in the marketing mix relates to the overall experience offered to tourists at a destination.

<p>In the marketing mix, 'product' refers to the combination of tangible and intangible elements demanded by visitors, designed to create a satisfying overall experience.</p> Signup and view all the answers

Based on the Philippine 9 Priority Products, explain how the Philippines is focusing on promoting diverse tourism offerings.

<p>The Philippines promotes diverse tourism, including nature, culture, beaches, leisure, MICE, wellness, cruises, diving, and education, targeting different traveler interests.</p> Signup and view all the answers

Outline the key components that contribute to a tourist destination's overall composition and appeal.

<p>Key components include accommodations, amenities, accessibility, attractions, and awareness, all contributing to destination appeal.</p> Signup and view all the answers

Describe the role of 'Place' in the marketing mix for tourism and hospitality. How does effective distribution enhance customer satisfaction?

<p>'Place' refers to the channels of product distribution that best serve customers. Effective distribution enhances customer satisfaction by providing convenient access to tourism services.</p> Signup and view all the answers

Explain how the 'Price' element in the marketing mix should reflect the value and benefits offered to travelers:

<p>The 'Price' should reflect the value a customer is willing to pay, justified by the product's benefits, features, and overall value, ensuring perceived worth.</p> Signup and view all the answers

Outline various promotional strategies that tourism businesses can use to make their offerings more visible and appealing to potential customers.

<p>Promotional strategies include advertising, sales promotion, face-to-face presentations, PR, direct marketing, and social media, all aimed at increasing awareness and appeal.</p> Signup and view all the answers

Explain how digital and social media marketing can be leveraged to promote tourist destinations and engage with potential visitors.

<p>Digital and social media use internet tools like websites, social media, blogs, and emails to promote destinations and engage visitors, offering interactive and real-time communication.</p> Signup and view all the answers

Discuss the role of 'People' as part of the expanded marketing mix in the tourism sector, and why their involvement is crucial.

<p>'People' refers to the staff, management and other members of the host community, who all impact the tourism experience. Their involvement is crucial for a positive customer experience.</p> Signup and view all the answers

Flashcards

Marketing Definition

The strategic process of selecting target markets, acquiring, retaining, and growing customers by delivering superior value.

Target Market

A specific group of consumers for which a product or service is designed and marketed.

Positioning

Creating an image or identity in the minds of the target market for its product, brand, or organization.

Branding Definition

A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers.

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Marketing Mix

A coordinated set of strategies using product, price, place, and promotion to meet the needs of customers.

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Expanded Marketing Mix

An augmented marketing mix including people, process and physical evidence to meet the needs of customers.

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Special Interest Tourism

Phenomenon marking a shift from demand for mainstream tourist offerings to more specialized and unique forms of tourism.

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Social Media Marketing

Using online platforms to market tourism and hospitality related products or services, revealed by the Visa Global Travel Intentions study in 2017.

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Unique Selling Proposition

Distinct characteristics, feature, and/or benefit that differentiates a product from the competition.

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Competitive Advantage

The key strengths of your tourism products over the rest.

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Target Market Segmentation

It is a specific group of consumers for which a product or services is being sold to.

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Demographics

Provide basic customer information, such as gender, age, ethnicity, religion etc.

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Psychographics

An in-depth analysis of person's lifestyle e.g interests, opinions, preferences of an individual or group

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Geo-demographics

The population and its characteristics based on where they live.

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Behavioral-Occasion Segmentation

Refer to segments based on knowledge, attitude, use or response to a product. While occasion segmentation refers to the consumption based on key holidays and celebrations

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Benefit Segmentation

Based on what value the target market is looking for.

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Reference Group

Exert influence and pressure even in buying decisions.

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Positioning (Marketing)

The act of designing the organization's actual and perceived offering in such a way that it lands on and occupies a distinctive place in the mind of the target market

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Branding (Marketing)

A symbol, color, slogan and/or an image that can evoke the exact perception it was designed for.

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Product (Marketing)

Different goods and services which are demanded by visitors during their stay at the destination.

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Place (Marketing)

Channels of product distribution that can best serve customers; either physical locations, online sites, or intermediaries.

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Price (Marketing)

The amount of money a customer is willing to pay in exchange for the feature, benefit or value of the product.

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Promotions (Marketing)

Strategies designed to make customer aware of the product. These include sales and communication techniques designed to persuade customers to action.

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Public Relations

Initiatives are designed to generate a favorable corporate image, goodwill with customers as well as deflecting unfavorable stories and negative events.

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Direct Marketing

Used when an organization is interested in selling to a carefully segmented group of customer.

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People (Service Marketing)

Visitors, staff, management, host community and other stakeholders in the creation, purchase and/or delivery of tourism products

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Study Notes

  • Marketing is a strategic process focused on selecting target markets and cultivating customer relationships through creating and delivering superior value.
  • It involves companies creating value for customers and building strong relationships to capture value in return.

Ethical Guidelines from DOT

  • Festivals should be based on heritage.
  • Souvenir products should avoid harming local biodiversity and geological features.
  • Promotion of women and children should be decent and sensitive.
  • Authentic restoration and preservation of historical buildings is critical.
  • Using local cuisine and sourcing of food locally is important.

Factors Affecting Tourism and Hospitality Marketing

  • Special Interest Tourism is a shift away from demand for mainstream tourism that are standardized.
  • Social Media Marketing is an important factor.
  • 83% of people use online resources to plan trips.
  • 69% of travelers share experiences online.
  • 41% of travelers post online reviews.
  • Co-creation.
  • Thematic Products and Services; travel agents use theme-based itineraries to highlight attractions.
  • Self-Reference Criteria (SRC) and Ethnocentrism.
  • Relationship Marketing involves developing and maintaining customer relationships.

Social Media Statistics

  • Global Digital Report 2019 provides data on internet and social media use.
  • There are 4.388 billion internet users worldwide.
  • There are 3.484 billion social media users worldwide.
  • There are 5.112 billion mobile phone users.
  • Facebook currently has 2.375 billion users.
  • YouTube currently has 2 billion users.
  • WhatsApp currently has 1.6 billion users.
  • Facebook Messenger currently has 1.3 billion users.
  • Instagram currently has 1 billion users.
  • Twitter currently has 330 million users.
  • Pinterest currently has 265 million users.

Key Concepts

  • Unique Selling Proposition is a distinct feature, benefit, and/or characteristic that sets a product apart.
  • Competitive Advantage refers to the set of key strengths of tourism products.
  • Target Market Segmentation is a specific consumer group a product/service is sold to.

Target Market Segmentation

  • Demographics provide basic information such as age, gender, educational attainment, ethnicity, religion, occupation, household size, and income.
  • Psychographics analyze a person’s lifestyle, covering interests, opinions, and preferences.
  • Geo-demographics studies the population and its characteristics based on location

Segmenting

  • Behavioral-Occasion Segmentation selects tourist segments based on knowledge, attitude, use or response to a product.
  • Occasion segmentation refers to consumption based on key holidays and celebrations.
  • Benefit Segmentation targets the value the market is looking for.
  • Reference Groups exert influence and pressure on buying decisions.
  • Positioning involves creating actual and perceived offering to occupy a distinctive place in the target market's mind.
  • Branding is a symbol, color, slogan, and/or image evoking a designed perception.

Marketing Mix

  • Product is composed of goods and services that are demanded by visitors during their stay at the destination.
  • The product is the package of tangible and intangible products perceived by the tourists as an experience represents the core of the tourism products.
  • It is a combinations of other-related products and services positioned to satisfy and exceed customer expectation.

Philippine 9 Priority Products

  • Nature Tourism
  • Cultural Tourism
  • Sun and Beach Tourism
  • Leisure and Entertainment tourism
  • MICE and Events Tourism
  • Health, Wellness and Retirement Tourism
  • Cruise and Nautical Tourism
  • Diving and Marine Sports Tourism
  • Education Tourism

Composition of Tourists Destination

  • Accommodations
  • Amenities: Services provided at destinations.
  • Accessibility: Available transportation and infrastructure to reach the destination.
  • Attractions: Natural and built environment landmarks, arts, culture, entertainment, and other points of interest.
  • Awareness

Elements of the Marketing Mix

  • Place (Distribution Channels): Involves product distribution channels serving customers, including physical locations, online sites, and intermediaries.
  • Price: Money a customer pays for a products feature, benefit, or value.
  • A feature refers to the product specification while a benefit justifies the reason why traveler should make the purchase.
  • Promotions: Strategies designed to make customers aware of the product.

Promotional Techniques

  • Advertising: Any form of paid presentation and promotion of ideas, goods, or services.
  • Sales Promotion: Short-term incentives that are used to provide inducements for the purchase of a product or service.
  • Personal Selling: Involves face-to-face presentations.
  • Public Relations: Designed to generate a favorable corporate image and customer goodwill by deflecting negative events.
  • Public relations aligns with long-term marketing plans.
  • Direct Marketing: Direct sales to a carefully segmented customer group.
  • Digital and Social Media Marketing: Uses tools like websites, social media, mobile apps, blogs, and emails.
  • Kiosk Marketing.
  • Interactive Television: Targeted and interactive audience engagement where consumers use remote controls to select on demand samples, video content and other promotional offer.

Expanded Marketing Mix

  • People: Visitors, staff, management, host community, and other stakeholders in creation/delivery.
  • Process: Online and Face-to-face customer interactions.
  • Physical Evidence.

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