Tourism Promotions PDF

THSH2104 TOURISM PROMOTIONS Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or promote an idea. Tourism promotion stimulates sales through the dissem...

THSH2104 TOURISM PROMOTIONS Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or promote an idea. Tourism promotion stimulates sales through the dissemination of information to encourage actual and potential customers to travel. All marketing communications techniques seek to inform, create awareness, persuade, and reinforce customers' buying behavior. The seller thinks of various marketing strategies to ensure that the tourism product or service is known to its potential target market. These strategies seek not just to inform people but also to persuade them to buy the product. A tourism marketer is tasked to create a promotional mix based on the available resources to meet a company's objectives. The promotional mix includes advertising, direct marketing, personal selling, and sales promotions. Advertising Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea. It can reach the largest number of prospects through television, radio, newspapers, magazines, billboards, transit displays, and even online (e.g., banner advertising, skyscraper ads, and pay-per-click). In the tourism and hospitality industry, advertising is viewed to create and maintain awareness of a company, property, or destination. However, not all tourism products and services would benefit from advertising. A careful assessment of one's resources and objectives needs to be done before deciding on advertising as a promotion tool. Big properties such as hotels, fast food chains, and country destinations may benefit from a carefully planned advertising strategy. Types of Advertisements Product advertisement – It presents information and/or persuasive appeals about products and services. Competitive advertisement – It presents brand-oriented messages designed to stimulate demand, letting consumers know that a company’s products/services are better than those of the competition. Comparative advertisement – It makes direct comparisons between advertised and competing brands. Institutional advertisement – It seeks to enhance the overall image of and build goodwill for an organization. Trade advertisement – It seeks to stimulate reseller demand through messages in trade media (e.g., magazines, journals, and/or websites of specific industries). Direct Marketing Direct marketing is an interactive system of marketing that uses one (1) or more advertising media to affect a measurable response. Examples of advertising media include mail marketing (letters, flyers, and catalogs directly delivered physically to a prospect’s mailbox), telemarketing (a process of marketing the goods and services to potential customers over the telephone or mobile phone), and online marketing (a process of advertising a product/service to potential consumers through digital strategies such as e-mail and social media.). It seeks to establish continuing relationships between a company and its regular customers. Offers are sent to a customer database, which lists people who are most able, willing, and ready to buy a product or service. For instance, a tourism-related establishment keeps a database of regular customers through a loyalty rewards program to help them establish relationships and ensure continued patronage and repeat purchases. Advantages and Disadvantages of Direct Marketing Direct marketing is an ideal promotional tool for products and services that capture a niche market. The following are some of its advantages: 05 Handout 1 *Property of STI  [email protected] Page 1 of 3  THSH2104 Precision Targeting. Having a good database can help pinpoint prospects based on lifestyles, demographics, and purchasing patterns. The direct mail campaign can be very precise in specifying its target market. Personalized Messages. Prospective customers will read through the material when their name is on it. Personally addressing specific customers will capture their attention than generic and random messages. Privacy. With direct marketing, a company's offer is not viable to competitors since it is personalized. Competitors cannot monitor what the offer is; hence, they cannot easily match it. Faster Sales. Direct marketing can yield faster sales as it is targeted to actual consumers of the product. Less Competition. A letter or package opened by the prospect (e.g., gift certificates and discount vouchers from airlines, hotels, resorts, and restaurants) will have less competition from other media content than billboards, TV commercials, and the like. The receiver would take more time reading through the content because it is personalized and unique. Immediate Results. A response form or action is usually solicited from the prospective customer; hence, results can be immediate. Measurability. The company knows the number of direct mailers issued; hence, it will be easy to determine response rates. The following are some disadvantages of direct marketing: Intrusive. Many people find direct marketing annoying, primarily through telemarketing and door-to- door sales. Some people dislike marketing mail and consider it to be junk mail. If consumers find such marketing tactics annoying, this can create a negative brand association and make them less likely to buy. Low Response Rates. When the marketing reaches consumers uninterested in the offered products or services, it is a waste of money, and they are likely to find it irritating. Although a targeted list is provided, there is still a possibility that some consumers may not be interested; thus, continuous updates on the list should be made. Costly. Tactics like telemarketing and direct mail marketing may have high financial and resource costs. Legal Issues. There are laws relating to privacy and data protection in direct marketing. A company's mailing list must contain individuals who have consented to receive marketing messages. Personal Selling Personal selling can be defined as the person-to-person communication between a salesperson and a prospective customer. The salesperson uses his/her interpersonal skills to persuade customers to purchase products/services that meet their needs in exchange for money or resources. Steps of the Sales Process 1. Prospecting and Qualifying Prospects. This stage is when prospective customers are identified and qualified to determine whether investing time and resources in acquiring them will be profitable. Cold calling (done by doing sales calls or visits to different business categories in the hope of generating business) and sales blitz (carried out by a group of salespeople who conduct a large number of company visits over a short period to communicate new products or services) are some of the effective ways for this stage. 2. Pre-approach. This is when the salesperson seeks to understand the business opportunities that the prospects can provide the company and be familiar with their needs to ensure that offered products/services fit those needs. 05 Handout 1 *Property of STI  [email protected] Page 2 of 3  THSH2104 3. Approach. This stage is when the salesperson starts to communicate with the prospect and establish rapport during the initial meeting. The salesperson needs to observe proper etiquette, protocols, and cultural sensitivity throughout the engagement. 4. Presentation and Demonstration. This stage is when the salesperson presents the features, benefits, and advantages of availing the products and services to prospective clients. Listening is an essential skill to help the salesperson understand clients' needs and address their questions. 5. Negotiation. This stage is challenging and involves arriving at a mutually beneficial value exchange between the seller and the buyer. Negotiation is the process of resolving the difference between what the seller wants to give in exchange for what the buyer can pay for. 6. Closing the Sale. This stage is done by signing a contract. The salesperson can ask directly or discretely if s/he can draft the contract for review and/or receive the reservation payment from the client. 7. Follow-Up. This stage ensures that product and service quality is provided by asking the client through a phone call or a personal visit. In case of customer dissatisfaction, the follow-up call will enable feedback and an avenue to address and respond to concerns and complaints. Sales Promotion Sales promotion is a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer, with the primary objective of creating an immediate sale. It consists of short-term incentives and various techniques to encourage purchasing or selling a product or service. Sales Promotional Tools Here are some sales promotional tools employed by businesses: Samples. These are offers made to consumers and company executives believing that trial will improve product knowledge, eventually leading to a sale. For instance, a company executive used his/her free overnight stay at a hotel and purchased the remaining days s/he needs for a business convention. Coupons. These are certificates that offer buyers savings when they purchase specific products. These are also used to stimulate sales of a mature product and promote the trial of a new product. For instance, a theme park offers a free entrance pass to birthday celebrants with one (1) or two (2) paying companions. Packages. These involve putting a set of complementing products to develop one (1) bundle at a special price. For instance, a travel agency offers a tour package with flights and meals included. Patronage Rewards. These are bonuses in cash or items of value that can be redeemed for regular purchases made. These can create more frequency of purchase, positive word of mouth, and possibly larger purchases. For instance, airlines offer rewards/mileage points to their frequent passengers, converting them to free flights. Point of Purchase Promotions. These include displays and promotions that take place at the point of sale. For instance, hotels display brochures of their other branches at the lobby or front desk. Souvenir items are also positioned near the cashier for easy, random, and impulse purchases. References: Gatchalian-Badilla, M. (2015). Tourism marketing. Rex Bookstore. Medina, R. (2012). Principles of marketing. Rex Bookstore. NI Business Info. (n.d.). Advantages and disadvantages of direct marketing. Retrieved October 20, 2021, from https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-direct-marketing 05 Handout 1 *Property of STI  [email protected] Page 3 of 3