THMK Prelim Reviewer (Week 1-5) PDF

lOMoARcPSD|46066072 THMK Prelim Reviewer (WEEK 1-5) BS in International Tourism Management (Our Lady of Fatima University) Scan to open on Studocu Studocu is not sponsored or endorsed by a...

lOMoARcPSD|46066072 THMK Prelim Reviewer (WEEK 1-5) BS in International Tourism Management (Our Lady of Fatima University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072 TOURISM AND HOSPITALITY MARKETING CHAPTER 1 – UNDERSTANDING HOSPITALITY AND TOURISM MARKETING HOSPITALITY AND TOURISM MARKETING  is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that they have value for customers, KEY PROCESS IN MARKETING clients, partners and society at large. MANAGEMENT (The American Marketing Association)  Marketing Information System.  Tourism and Hospitality marketing is  Marketing Plannin the art of and science of finding,  Planning Tactical Campaigns. retaining and growing profitable  Marketing Operation customers. (Kotler, Bowens and  Monitoring and Control. Makens). CORE MARKETING IMPORTANCE OF MARKETING FUNCTIONS  Identify the ideal target market.  Finding The Best Distribution  Attract new customers and develop Channels loyalty  Financing An Enterprise  Understand the customer journey  Deep Market Research  Standout from competitors  Setting Prices  Hone in on the most effective tactics  Product And Service Management  Promotional Channels  Matching Products To Customers INTEGRATED MARKETING COMMUNICATIONS APPROACH MARKETING MANAGEMENT ORIENTATION  Integrated marketing campaigns (IMCs) include the planning and coordination  Production Concept.. of all marketing mix (including  Product Concept. traditional and digital networking  Selling Concept. components). This method is far  Marketing Concept. superior to the single and independent  Societal Marketing Concept. use of each item. Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072 STANDARDIZE - Standardize the service performance process throughout the organization MONITOR - Monitor customer satisfaction INTERNAL SERVICE QUALITY  superior employee selection and training, a quality work environment and strong support for those dealing with customers SATISFIED AND PRODUCTIVE CHAPTER 2: SERVICE SERVICE CHARACTERISTICS OF  more satisfied, loyal and hard-working HOSPITALITY AND TOURISM employees MARKETING GREATER SERVICE VALUE SERVICE CULTURE  more effective and efficient customer  The service culture is a system of value creation and service-delivery values and beliefs in an organization that reinforces the idea that providing SATISFIED AND LOYAL the customer with quality service is the CUSTOMERS principal concern of the business.  satisfied customers who remain loyal, repeat purchase, and refer other  Focuses on serving and satisfying the customers. customer. HEALTHY SERVICE  Creation of a service culture has to start  profits and growth superior service firm with top management and flow down. performance An organization should hire employees with customer service attitude and then it works with employees to instill the concept of service.  The outcome of these effort is employees who provide service to the customers. CHARACTERISTICS OF SERVICE MARKETING  INTANGIBILITY  INSEPARABILITY  VARIABILITY SERVICES MARKETING TRIANGLE  PERISHABILITY INTERNAL MARKETING STEPS TO REDUCE VARIABILITY  means that the service firm must AND CREATE CONSISTENCY effectively train and motivate its customer-contact employees and all the INVEST IN - Invest in good hiring supporting service people to work as a procedures team to provide customer satisfaction. Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072 EXTERNAL MARKETING  MANAGING CAPACITY AND  means that any communication to DEMAND customers (or potential customers) that because services are perishable, happens before service delivery starts. managing capacity and demand is Forms of external marketing include: a key function of hospitality Advertising, Personal Selling, Public marketing. relations, Direct Marketing, CHAPTER 3: MARKETING PLAN INTERACTIVE MARKETING  means that perceived service quality 3 KEY ELEMENTS TO A depends heavily on the quality of the SUCCESSFUL buyer-seller interaction during the MARKETING PLAN service encounter.  It is workable  MANAGING DIFFERENTIATION  It is realistic and Flexible the solution to price competition is  It has measurable and achievable goals todevelop a differentiated offering. Theoffer can include innovative PURPOSE OF A MARKETING PLAN featuresthat set one company’s offer apart from that of its  Provides a road map for all marketing competitors. activities of the firm for the next year  MANAGING SERVICE QUALITY  Ensures that marketing activities are in with hospitality products,quality is agreement with the corporate strategic measured by how well customer plan expectations are met.  Forces marketing managers to review  MANAGE SERVICE and think through objectively all steps PRODUCTIVITY in the marketing process with their costs rising rapidly, service firms are under great  Assist in the budgeting process to pressure to increase service match resources with marketing productivity. objectives  RESOLVING CUSTOMER  Creates a process to monitor actual COMPLAINTS against expected results It is a critical component of customer retention MARKETING PLAN SECTIONS  MANAGING EMPLOYEE AS I. Executive Summary PART OF THE PRODUCT II. Company Description in the hospitality industry, III. Strategic Focus and Plan employees are critical part of the IV. Situation Analysis product and marketing mix. The V. Market – Product Focus human resource and marketing VI. Marketing Program department must work closely VII. Financial Data and Projections together.. VIII. Organization IX. Implementation  MANAGING PERCEIVED RISK X. Evaluation the high risk that people perceive when purchasing hospitality I. EXECUTIVE SUMMARY products increases loyalty to companies that have provided  Write it for top executives them with a consistent product in  Limit the pages to between two and the past four Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072  Use short sentences and paragraphs. THREATS Avoid using words that are unlikely to  INDUSTRY, COMPETITION, be understood COMPANY AND CUSTOMER  Organize the summary as follows: ANALYSIS (visitor trends) describe next year’s objectives in  ENVIRONMENTAL ANALSIS AND quantitative terms; briefly describe FORECASTING marketing strategies to meet goals and SOCIAL objectives, including a description of POLITICAL target markets; describe expected ECONOMIC results by quarter;identify the dollar  MARKET POTENTIAL should be costs necessary, as well as key viewed as the total available demand resources needed for a hospitality product within a  Read and reread the executive particular geographic market at a given summary several times. Modify and price) change the summary until it flows well, is easily read, and conveys the central V. MARKETPRODUCT FOCUS message of the marketing plan  Set objectives II. COMPANY DESCRIPTION  Identify target markets  Identify points of difference  Describes what the organization does  Positioning  Highlight recent history  Highlight recent Success VI. MARKETING PROGRAM III. STRATEGIC FOCUS AND PLAN  Identify the marketing mix strategy  Includes the following elements: PRODUCT (features, brand name, packaging, services, warranties) PRICE (list price, discounts, credit terms, payment period PROMOTION (advertising, personal selling, Sales Promotions, Publicity, online marketing) PLACE (outlets, channels, coverage, transportation, stock level) VII. FINANCIAL DATA AND PROJECTIONS  Past and present data  Revenue and expenses VIII. ORGANIZATION  ORGANIZATIONAL CHART OF IV. SITUATION ANALYSIS MANAGEMENT STRUCTURE  BOTH CURRENT AND  Analyze where you were, are and are POTENTIAL POSITIONS going  SWOT ANALYSIS IX. IMPLEMENTATION PLAN STRENGTHS WEAKNESSES  How will company turn plans into OPPORTUNITIES results Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072  Details for Strategies creativity, competition, need for relaxation, and belongingness. X. EVALUATION INTRINSIC FACTORS OF  Compares results with goal MOTIVATION  Determine if there are successes  Makes any deviation necessary  Attitudes of Tourists  Tourist's Perception CHAPTER 4:TOURISM &  Attitudes of Tourists CONSUMER BEHAVIOR  Personality of the Tourists FACTORS INFLUENCING EXTERNAL FACTORS OF CUSTOMER BEHAVIOR MOTIVATION 1. Cultural factors EXTRINSIC MOTIVATION: 2. Social Factors  Tourist gets motivated by external 3. Personal Factors factors. 4. Pschological factors Place of Origin Family and Age 1. CULTURAL FACTORS Culture or Social Class  Culture Market  Subculture  Social class MASLOW'S HIERARCHY OF NEEDS 2. SOCIAL FACTORS  Maslow's hierarchy of needs is a  Groups motivational theory in psychology  Word of mouth influence and buzz comprising a five-tier Model of human marketing needs  Family  Proposed by Abraham Maslow in 1943,  Role and status often depicted as hierarchical levels within a pyramid. 3. PERSONAL FACTORS  Age And Life Cycle  Occupation  Economic Situation  Lifestyle  Personality And Self Concept Personnality Self Concept 4. PSYCHOLOGICAL FACTORS  MOTIVATION Internal Factors External Factors SELF-FULFILLMENT NEEDS INTERNAL FACTORS OF  Self- actualization: achieving one's MOTIVATION full potential, including creative activities. INTRINSIC MOTIVATION  For many people, tourism is a way of PHYSIOLOGICAL NEEDS: satisfying their psychological needs such as travelling, performing ,  Esteem needs: prestige and feeling of exploring novelty and capabilities, self- accomplishment expression and self-assurance, Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072  Belongingness and love needs: They tend to be tensed for performance intimate relationships, friends and could be apprehensive, which hinders their enjoyment and relaxation. BASIC NEEDS They look forward to the same experience  Safety needs: security, safety in the short span of time.  Physiological Needs: food, water, warmth, rest THE BUYER DECISION-MAKING PROCESS 4. PSYCHOLOGICAL FACTORS (CONT..) STAGE 1: NEED/PROBLEM  Perception RECOGNITION  Learning  Beliefs STAGE 2: INFORMATION SEARCH FACTORS AFFECTING TOURIST STAGE 3: ALTERNATIVE BEHAVIOR EVALUATION 1. Geographical Factors STAGE 4: PURCHASE DECISION 2. Social Factors 3. Place of Origin STAGE 5: POST-PURCHASE 4. Tourism Destination EVALUATION 5. Education of Tourists BENEFITS OF SERVICE QUALITY THE INTRINSIC AND EXTRINSIC TOURIST BEHAVIOR  Customer Retention  Avoidance of price competition Intrinsic Behavior Vs Extrinsic Behavior  Retention of good employees  Reduction of cost  INTRINSIC BEHAVIOR SERVICE QUALITY They record higher level of satisfaction Service Quality > Satisfaction > Repeat and enjoyment as they see an activity as Purchase > Referrals to Friends a mean of enjoyment itself. THE ORGANIZATIONAL BUYER Time passes faster to them. BEHAVIOR The organizational purchase process They record a higher level of enjoyment consist of 8 stages. They look forward to the next similar 1. PROBLEM RECOGNITION experience in the moderate to long span 2. NEED DESCRIPTION of time. 3. PRODUCT SPECIFICATION 4. SUPPLIER SEARCH 5. PROPOSAL SOLICITATION  EXTRINSIC BEHAVIOR 6. SUPPLIER SELECTION 7. ORDER-ROUTINE They record comparatively lower level 8. SPECIFICATION of enjoyment as they go through the 9. PERFORMACE REVIEW stress of competition. TYPOLOGY OF TOURISTS They are focused on passage of time  There are many forms of travelers who have specificdestination criteria. Tourist typologies are descriptors of Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072 distinctive aspects of market travel and recognize what kind of sustenance behavior. They represent the multiple and activity to expect. motives, desires and modes of travel on  Tourists like to travel to destinations, the part of visitors. Some typologies like in ordinary hotels, and eat at aim to divide visitors according to their family-style dining rooms. tastes in terms of locations, events while on vacation, individual travel VS MIDCENTRIC (COMBINATION) package holidays. The goal of these typologies is to split tourists into  This classification of tourist covers the separate groups in order to figure out ones who swing between the above said what tourist wants. to writes. PLOG'S TOURIST MOTIVATION TYPE OF TOURISM MIDCENTRIC MODEL TRAVELLERS PREFER:  Recreation  Sports  Social  Nature  Religious COHEN'S MODEL 1. Organized Mass Tourists  Is the type who buys all-inclusive tour packages and ensures that everything goes as planned. ALLOCENTRIC (THE WANDERERS) 2. Individual Mass Tourists  A traveler who is looking for new  Is more autonomous than the organized experiences and practice in a wide mass tourist preferring to travel range of activities. This person is polite independently, but still chooses popular and courageous in his actions. destinations and activities.  An Allocentric person wants to fly and 3. The Explorer examine new and-unusual regions that  Seeks new areas but would sometimes others have previously done as such. opt for the comfort of familiar  Allocentric appreciate meeting people accommodations. from distant or varied cultures. They 4. The Drifter enjoy fantastic inns and sustenance but  Is the free spirit who avoids any kind of not actual new or chain-like lodgings. traditional tourist establishment. Allocentric (The Wanderers) THEY ARE: STEWART'S MODEL OF HOLIDAY TAKING  Explorers of New destinations  Independent Travellers 1. PHASE I- BUBBLE TRAVELERS  Need to see and do new things  Above-average incomes  They don't have much cash and also  Wanderlust information. They incline towards bundled visits. They long to watch PSYCHOCENTRIC (THE REPEATER) diverse societies without being a piece of it. They travel generally to clear  A vacationer who falls in this class is something up. usually not audacious.  They want to return to familiar travel destinations where they can unwind Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072 2. PHASE II-IDEALIZED able to communicate with and meet their EXPERIENCE SEEKERS specific needs..  They are certain tourists with the experience of outside visits. They are WHY SEGMENT THE TOURISM adaptable and agreeable. They lean MARKET? toward visit offers made for people.  It helps to understand specific demands 3. PHASE III- SEASONED of the consumers TRAVELERS  It helps to allocate marketing expenses  These tourists are more well-to-do than efficiently the admired experience searchers. They  It helps to create effective marketing are more certain to trail and experience strategies to target specific market better places and situations. They are segment. more gutsy and incline toward individualistic visits. TOURISM MARKET SEGMENTATION 4. PHASE IV-COMPLETE IMMERSERS GEOGRAPHICS  These tourists have an expectation of  Country inundating totally into the remote  City culture, legacy, culinary experience,  Density and dialect. Their holidaying is very  Langugae much arranged however not all around  Climate organized.  Area  Population THE NON-USERS DEMOGRAPHICS  Age  Marketers will continue to strive to  Gender acquire new customers. To target non-  Income users would be the best way to do this.  Education It can be classified as:  Social status  Family 1. EX-USERS - who stopped using the  Life stage products/services for various reason.  Occupation 2. NEED TO BE PERSUADED- they are PSYCHOGRAPHICS the customers who are aware of the  Lifestyle products/services but need to be convinced  AIO: Activity or be persuaded to purchase.  Interest, Opinion 3. NOT AWARE - they are customers who  Concerns are not aware of product/service's existence  Personality  Values CHAPTER 5: THE TOURIST MARKET  Attitudes AND SEGMENTATION, TARGETING BEHAVIORAL AND POSITIONING  Benefits sought  Purchase 1. MARKET  Usage - Is a set of actual and potential buyers of a  Intent product. These buyers share a need or want  Occasion that can be satisfied through exchange  Buyer stge relationship  User status  Life cycle stage 2. MARKET SEGMENTATION  Engagement - Is nothing but a division of the total consumer market into groups in order to be Downloaded by yn pr ([email protected])  lOMoARcPSD|46066072 CLASSES OF TOURISTS B. CHOOSING AND IMPLEMENTING A POSITIONING STRATEGY  Tourists Travelling with Families  Single Tourists 1. Identifying a set of possible competitive  Group of Tourists advantages on  Tourists visiting Friends and Relatives which to build a position  Business Tours 2. Effectively communicating and  Incentive Tours delivering the chosen  Health Tourists position to a carefully selected target market CHARACTERISTICS OF A MARKET NEW AND EMERGING MARKETS SEGMENT  The method of new market recognition 1. Identifiable should be taken seriously in order to 2. Substantial obtain a sustainable competitive 3. Accessible advantage. 4. Cohesive  In the article of Cooper et al. (2006), 5. Measurable identified the growth of tourism 6. Actionable markets as fueled by these factors on the demand side: MARKET TARGETING 1. Economic Growth in major source  Is a process by which the target market markets is selected from the whole market. 2. Increase disposable leisure time and a longer life expectancy with a sound STEPS IN MARKET TARGETING health to travel 3. Changes in living conditions especially 1. Evaluating Market Segments city dwellers becoming more inclined A. Segment Size to engage in tourism. B. Attractiveness 4. Rising educational levels and increased C. Company objectives and availability of access to information, stimulating resources curiosity. 2. Selecting Target Market Segments 5. Increasing international integration of life FACTORS INFLUENCING THE CHOICE OF THE MARKET TYPES OF MARKETS 1. The company’s resources 1. The Family Market 2. The degree of product variability 2. The Senior Market 3. The product life cycle 3. The Youth Market 4. Market Variability 4. The MICE Market and Business Tourism 5. Competitor’s marketing strategies MARKET POSITIONING  It is developing competitive positioning for the product and an appropriate marketing mix (Kotler et al. 2010) A. POSITIONING STRATEGIES 1. Specific product attributes 2. Need products fill or benefits products offer Downloaded by yn pr ([email protected])