Unit 1 Tourism Marketing PDF

HM6 Tourism and Hospitality Marketing UNIT 1 TOURISM MARKETING Dr. Jeninah Christia B. Pulhin Faculty, CITHM  OBJECTIVES Define tourism marketing and its functions. Differentiate tourism products from consumer products Explain marketing as a managemen...

HM6 Tourism and Hospitality Marketing UNIT 1 TOURISM MARKETING Dr. Jeninah Christia B. Pulhin Faculty, CITHM  OBJECTIVES Define tourism marketing and its functions. Differentiate tourism products from consumer products Explain marketing as a management process Discuss the evolution of marketing and the Integrated marketing approach Discuss sustainable tourism and sustainable marketing Explain ethics in tourism marketing Identify new trends in the tourism industry 6/24/21 HM6 Tourism and Hospitality Marketing 2  WHAT TOURISM IS ACTUALLY SELLING? Tourism is not a single product. It is a combination of products and services which results in a HOLISTIC EXPERIENCE for the traveler. 6/24/21 HM6 Tourism and Hospitality Marketing 3  UNIQUE CHARACTERISTICS OF THE TOURISM INDUSTRY Intangible Inseparable Variable Perishable High Seasonal Substitutable involvement product 6/24/21 HM6 Tourism and Hospitality Marketing 4  Tourism products cannot be touched, smelled, tasted, felt nor heard prior to purchase. INTANGIBLE One cannot examine nor test them before purchase, unlike consumer products which can be sampled. 6/24/21 HM6 Tourism and Hospitality Marketing 5  INSEPARABLE The tourism product cannot be separated from the consumer Since what is being sold is the experience, the product and the consumer cannot be in two different places; they must be in the same place. 6/24/21 HM6 Tourism and Hospitality Marketing 6  VARIABLE The tourism experience is likely to be different depending on when the product is availed, who one is with, and how the service providers deliver the service at the time of consumption. Managing consistency Standardized procedures 6/24/21 HM6 Tourism and Hospitality Marketing 7  PERISHABLE Tourism product is perishable in the sense that it is not able to forward inventory to the next day. A plane seat or hotel room that is not sold today cannot be sold some other day. Revenue management addresses the perishability factor of the tourism products. With the proper tools for forecasting price and occupancy, yield can be maximized. HM6 Tourism and Hospitality Marketing 6/24/21 8  SEASONAL This does not only refer to seasons of the year or weather conditions. It also refers to behavioral patters of the travel market. The seasonality of the tourism product hinders it from maximizing its profits all year round. Hence, intensified marketing during lean season will help increase demand for the product. Different rates throughout the year help manage capacity and yield to maximize profitability. 6/24/21 HM6 Tourism and Hospitality Marketing 9  SUBSTITUTABLE Competition in the tourism industry is intensifying. With new destinations emerging and competing in the global marketplace, one destination can easily be substituted for another destination. Identifying one’s competitive advantage and a unique selling proposition may help make a tourism product less substitutable. 6/24/21 HM6 Tourism and Hospitality Marketing 10  TOURISM AS A HIGH INVOLVEMENT PRODUCT Tourism products of high involvement mean that there is a greater degree of thought or study involved prior to purchase. Expensive – worth more than one’s monthly salary Complex – need to understand the product’s features and details Unrepeatable nature – “once- in-a-lifetime” purchase 6/24/21 HM6 Tourism and Hospitality Marketing 11  TOURISM MARKETING Customer satisfaction is at the center of marketing MARKETING – social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others (Kotler, 2002) Need vs Want 6/24/21 HM6 Tourism and Hospitality Marketing 12  TOURISM MARKETING Marketing – art and science of finding, retaining and growing profitable customers (Kotler, Bowens, & Makens, 2010) Marketing – the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (American Marketing Association, 2013) 6/24/21 HM6 Tourism and Hospitality Marketing 13  MARKETING AS MANAGEMENT PROCESS MARKETING MARKETING PLANNING MARKETING MONITORING AND INFORMATION PLANNING TACTICAL OPERATIONS CONTROL SYSTEM CAMPAIGNS HM6 Tourism and Hospitality Marketing 6/24/21  MARKETING INFORMATION SYSTEM enables the organization to compile an updated set of information about its customers, competitors, and the organization’s capability and effectiveness 6/24/21 HM6 Tourism and Hospitality Marketing 15  MARKETING PLANNING involves an analysis of the marketing environment in relation to the potentials of one’s business Involves the setting up of objectives and an evaluation of the milestones that the company has reached Creation of marketing strategies that will help increase the business by obtaining the best fit between the company’s resources and its target market position 6/24/21 HM6 Tourism and Hospitality Marketing 16  PLANNING TACTICAL CAMPAIGNS Ensures that practical and realistic tactical campaigns are conducted in support of the comprehensive marketing strategy 6/24/21 HM6 Tourism and Hospitality Marketing 17  MARKETING OPERATIONS Implementing the planned strategic and tactical campaigns by coordinating with all stakeholders, fine tuning the marketing mix as they unfold, and ensuring that activities are conducted as planned 6/24/21 HM6 Tourism and Hospitality Marketing 18  MONITORING AND CONTROL Involves the ongoing process of evaluating sales data and financial performance versus marketing activities conducted Includes the handling of customer feedback and complaints (if any) and coordination with what the staff has to say about the marketing campaigns Includes being aware of what the competitors are doing 6/24/21 HM6 Tourism and Hospitality Marketing 19  Marketing Information Management Financing Pricing CORE MARKETING Promotion FUNCTIONS Product/Service Management Distribution Selling 6/24/21 HM6 Tourism and Hospitality Marketing 20  Marketing Information Management – entails gathering information about customers to better serve their needs and improve decision making Financing – involves planning to ensure that resources are available to maintain and improve the business Pricing – ensures that the value and cost of goods and services offered to customers will be at the level that customers are willing to pay Promotion – prepares the various promotional strategies that will enable the products to be introduced and sold to the customers 6/24/21 HM6 Tourism and Hospitality Marketing 21  Product/Service Management – involves designing, developing, maintaining, improving, and acquiring products and services to meet the needs of the customers Distribution – involves brining the products and services to the customers in the best way possible Selling – is the ultimate measure of marketing success. Strategies on following up the sale, closing the sale, and making a repeat sale are crucial tasks of marketing 6/24/21 HM6 Tourism and Hospitality Marketing 22  THE MARKETING MIX 6/24/21 HM6 Tourism and Hospitality Marketing 23  INTEGRATED MARKETING COMMUNICATIONS APPROACH It is the process of using all forms of promotion to achieve maximum communications impact while maintaining a consistent image for the products or services. 6/24/21 HM6 Tourism and Hospitality Marketing 24  Growth of technology FACTORS THAT Incentive-based compensation CONTRIBUTED TO THE Consolidation of the retail GROWTH OF industry IMC Database marketing 6/24/21 HM6 Tourism and Hospitality Marketing 25  USE OF INTEGRATED MARKETING APPROACH To reach target market To achieve company objectives Within the available budget 6/24/21 HM6 Tourism and Hospitality Marketing 26 TOURISM MARKETING AND ITS FUTURE 6/24/21 HM6 Tourism and Hospitality Marketing 27  SUSTAINABLE TOURISM AND SUSTAINABLE MARKETING Sustainable Tourism – should make optimal use of Planet environmental resources, respect socio-cultural TRIPLE authenticity of host BOTTOM LINE People communities, and ensure viable, long-term economic operations providing socio- Profit economic benefits to all stakeholders (UNWTO, 2005) 6/24/21 HM6 Tourism and Hospitality Marketing 28  ETHICS IN TOURISM MARKETING Honesty – truthfulness in the presentation of products and services for mutual benefits of the company and the consumers Respect – showing respect for individuals means treating them as equals, as reasonable individuals with goals and lives of their own Responsibility – take responsibility for your words and actions Professionalism – guard one’s reputation carefully by exercising professionalism at all times 6/24/21 HM6 Tourism and Hospitality Marketing 29  NEW TRENDS IN TOURISM Travelling for a purpose Localizing and alternative form of transport and slow travel Climate change and future planning Social media pervasiveness The rise of DIY Tours Tourist Services in the electronic world 6/24/21 HM6 Tourism and Hospitality Marketing 30  HIGHLIGHTS OF CHAPTER 1 Tourism is one of the world’s leading industries. Tourism is not a single product; it is a combination of product and service resulting to holistic experience Tourism products have unique characteristics: intangible, inseparable, variable, perishable, seasonal, substitutable and high involvement product The core marketing functions include: marketing information management, financing, pricing, promotion, product/service management, distribution and selling The integrated marketing communications makes use of all forms of promotion to achieve maximum impact while maintaining consistent. image 6/24/21 HM6 Tourism and Hospitality Marketing 31  -END- 6/24/21 HM6 Tourism and Hospitality Marketing 32