Tourism and Hospitality Marketing Course Overview

Course Overview

• The course will cover the hospitality and tourism marketing process.
• Students will learn how to develop hospitality and tourism marketing strategies.
• Students will learn to develop the hospitality and tourism marketing mix.
• Students will learn about managing hospitality and tourism marketing.

Learning Outcomes

• Analyze and apply marketing mix principles (4 Ps: Product, Price, Place, Promotion) in the tourism and hospitality industry.
• Understand how these principles are specifically tailored to the unique context of the tourism and hospitality industry.

Tourism and Hospitality Marketing

• The process by which segments of the tourism industry (transportation, hotels, restaurants, resorts, amusement parks, entertainment, accommodation businesses) advertise their products or services.

Tourism and Hospitality Marketing Framework

• Marketing professionals determine product characteristics, pricing, distribution, and promotion strategies.
• The slides include examples like quality/ingredients and travel time that affect Jollibee restaurant's distribution strategy.

Marketing in the Tourism and Hospitality Industry

• Marketing is the process of introducing a company's product or service to customers.
• Hospitality marketing focuses on segments of the hospitality industry (hotels, motels, food services, recreation, tourist destinations, performing arts, sports, museums, amusement parks, and gambling establishments).
• Tourism marketing promotes initiatives that enhance customer experiences and add value.

Marketing in the Tourism and Hospitality Industry (Details)

• It refers to the services a company wants to sell (e.g., flights, hotel rooms).
• Includes a range of products and services offered to customers (e.g., guest rooms, fitness centers, pools, restaurants, valet services).
• Covers the entire experience, starting from the acquisition of the service to the return from the service.

Marketing in the Tourism and Hospitality Industry (Place)

• Location where customers buy services is crucial (e.g., hotel location, ease of access for service).
• Involves selection of distribution channels (e.g., hotels.com).

Marketing in the Tourism and Hospitality Industry (Promotion)

• A combination of marketing techniques (advertising, personal sales, public relations).
• Provides details about the product and price.
• Includes characteristics of travel marketing strategies (communication method, promotion content, and cost to the operator).

Marketing in the Tourism and Hospitality Industry (Pricing)

• Pricing is part of the comprehensive revenue management and pricing plan.
• Pricing should be attractive and match the product.
• Pricing depends on factors like location, seasonality, competitor pricing, and government regulations.
• Non-monetary factors include search time, alternative products/services, and location convenience.

Marketing in the Tourism and Hospitality Industry (Process)

• Includes: procedures, mechanisms, and flow of activities between customers and businesses.
• Essential for the transaction's success.
• Key personnel who interact with guests (managers, receptionists, etc.) play a huge role in this process.

Marketing in the Tourism and Hospitality Industry (Physical Evidence)

• How businesses showcase their marketing, such as stories, reviews, blog posts, or in-location signage.
• Customers can use these to document their experiences.

Importance of Marketing to the Tourism and Hospitality Industry

• The hospitality industry has a high failure rate (20%-30% for restaurants).
• Focus on customers is crucial for success.
• Marketing campaigns promote products and services.
• How establishments treat customers after purchase is essential.

Importance of Marketing to the Tourism and Hospitality Industry (Additional Points)

• Marketing campaigns don't always guarantee success if the product quality, engagement, and innovation aren't good enough.
• Quality service is crucial. Investing in well-trained, motivated employees is important.

Marketing Management and Philosophies

• Marketing concepts guide businesses' marketing efforts.
• Businesses identify and fulfill customer needs, benefiting both the customer and the company, driven by objectives (e.g., cost efficiency, product quality, and customer need fulfillment).

Marketing Management and Philosophies (Concepts)

• Production Concept: Consumers prefer products that are inexpensive and widely available. Production quantity leads to economies of scale (lower cost). However, quality might be overlooked.
• Product Concept: Consumers appreciate quality, performance, and innovative product features. Marketing focuses on product improvements. Focusing solely on the product might lead to a narrow view (myopia) and overlook the customers' various needs.
• Selling Concept: The focus is on making as many sales as possible regardless of product quality or customer need. Aggressive sales tactics may even include deception.
• Marketing Concept: Businesses prioritize fulfilling customers' needs and wants. Research helps develop products that better satisfy customer needs; Customer satisfaction surveys are crucial.
• Societal Marketing Concept: Business considers societal well-being together with fulfilling customer needs without negatively affecting the environment or natural resources. Social responsibilities are important (e.g., poverty elimination, education, environmental issues).
• Holistic Marketing Concept: The business is viewed as a single entity with all its elements working together towards a common objective.

Key Players in the Tourism and Hospitality Industry

• Private & Non-profit Sector: Travel agencies, tour operators, financial institutions, educational institutions, insurance companies.
• Public Sector: Provincial tourism organizations creating attractive tourism products; e.g. Tourism Promotion Board (TPB).
• Transportation: Roads (Trains, Taxis, Jeepneys, Buses, Trikes), Airlines, Cruises, Railways (e.g. Metro Rail Transit).
• Accommodations: Hostels, bed and breakfasts, tourist residences, holiday dwellings, timeshare apartments, campsites.
• Food and Beverages: Companies involved in processing, packaging, and distributing fresh and prepared foods, alcoholic and non-alcoholic beverages.
• Attractions: Natural and man-made attractions (e.g. events and conferences).
• Intermediaries: Tour operators, wholesalers, travel agents, web-based intermediaries.
• The Tourists: Bring revenue to the industry.

Key Marketing Concepts

• Needs, Wants, and Demand:
• Needs: Basic human requirements (e.g., food, shelter).
• Wants: Communication of needs (e.g., certain food types).
• Demands: Wants backed by purchasing power.
• Products and Services: Anything potentially fulfilling needs or wants (e.g., goods or services).
• Value, Satisfaction, and Quality: Value is the perceived difference between benefits and costs. Satisfaction is the overall estimate of a product's ability to satisfy needs. Quality refers to the characteristics of a product.
• Exchange, Transactions, and Relationships: Exchange involves obtaining a desired object. Transactions are the basic units of exchange. Relationship marketing focuses on building profitable customer relationships.
• Markets: A market includes actual and potential buyers linked to a seller.
• Marketing Management: Art and science of choosing a target market and creating profitable business through a marketing framework.
• Marketing Manager: Person responsible for the analysis, planning, implementation, and control of the marketing strategy.

Five Marketing Management Philosophies

• Production Concept: Focuses on widely available and inexpensive products.
• Product Concept: Prioritizes product quality and innovation, assuming customer prefer quality products.
• Selling Concept: Requires aggressive selling and promotion to incentivize customers to buy.
• Marketing Concept: Aligns with customer needs and business goals.
• Societal Marketing Concept: Considers the well-being of society and customer needs while minimizing negative impacts on the environment and natural resources.

This quiz covers the essentials of hospitality and tourism marketing processes. It includes the development of marketing strategies and marketing mix principles specific to the industry. Assess your understanding of key concepts such as product, price, place, and promotion within the tourism and hospitality sectors.