Chapter 7 Tourism Marketing

Chapter 7 Tourism Marketing

Chapter 7 Tourism Marketing

Chapter 7 Tourism Marketing

Learning ObjectivesDescribe the differences between the marketing of tourism services and traditional product marketing. Compare and contrast the different approaches to marketing associated with production, selling, marketing, and societal marketing orientations. Explain the concept of market segmentation and how target markets are selected. Define positioning and explain how it is used in tourism. Explain the product life cycle concept and how it applies to tourism. Describe each of the steps of the marketing planning process in tourism. List and describe the elements of the marketing mix.

Chapter 7 Tourism Marketing

OverviewTourism marketing is unique; Tourism marketing defined; Marketing orientation; Market segmentation; Positioning; Product life cycle; Marketing planning process;

Chapter 7 Tourism Marketing

Tourism marketing is uniqueTourism is a combination of personal services and certain physical facilities and products. An intangible experience is offered. Tourism is highly perishable commodity. Tourism consumption and production take place at same time. Tourism supply can’t be stored. Tourism is a mixture of several services and some facilities and products. Package - Interdependence DMOs have little control over the qualities and quantities, and must rely on the other tourism organizations. Not easy to provide consistent quality of service. Tourism demand is highly elastic, seasonal in nature.

Chapter 7 Tourism Marketing

Definitions of Tourism MarketingThe French School / Robert Lanquard Swiss School / Jost Krippendorf The American School / J.J. Swarchz The American Marketing Association/AMA A popular definition in the United States

Chapter 7 Tourism Marketing

Definitions of Tourism MarketingFrench School ( Robert Lanquard): Is an attitude of permanent research to satisfy the social- psychological needs of the tourist, the host community and tourism organizations (private and public sectors).

Chapter 7 Tourism Marketing

Swiss School (Jost Krippendorf):Is a systematic adoption of policies by the public & private sector at all levels for the satisfaction of a pre-determined group of consumers.

Chapter 7 Tourism Marketing

The American School / J.J. SwartchzIs the mix and in-depth research of the four elements: Product, Place, Promotion and Price, to obtain the wanted sales volume.

Chapter 7 Tourism Marketing

The American Marketing AssociationIs a planning process for the execution of concepts and strategies on the ‘4P’s to create exchanges and satisfy the needs of the clients, the destination or the organizations’ objectives.

Chapter 7 Tourism Marketing

MarketingA popular definition in the United States Is all the stuff you do to make money! Marketing VS Sales The objective of marketing is “to please and serve the needs of the clients while making business” To sale is an attitude geared to success in the fundamental objective to sale not matter what!!

Chapter 7 Tourism Marketing

Tourism Marketing DefinitionA systematic process of planning, researching,implementing,controlling and evaluating the “10 Ps”as components of the marketing mix. Five key functions of marketing

Chapter 7 Tourism Marketing

Marketing Orientation – Tourism Marketing

Historical Evolution20’s >>>> USA 50’s to 60’s – Production Era 70’s to 80’s – Sales Era 80’s to 90’s – Marketing Era 2001… Societal & Sustainable Marketing

Chapter 7 Tourism Marketing

Marketing Orientation – Tourism Marketing Historical EvolutionProduction Era: The demand exceeded the supply; the emphasis is placed on the services and products. Sales Era: The capacity met the demand; focus on the need of the seller. Marketing Era: The supply exceeded the demand; focus on the needs and wants of the visitors. Societal Marketing Era:Destinations & businesses / social responsibility

Chapter 7 Tourism Marketing

Marketing Orientation – Societal and Sustainable MarketingRecognizes the need for:New products (designed with sustainable principles) Fresh services Customer’s satisfaction Standards of quality Sustainable practices

Social responsibility of business (examples)Businesses as part of society

Chapter 7 Tourism Marketing

Market SegmentationIs a process through which people with similar needs, wants, and characteristics are grouped together so that a tourism organization can use greater precision in serving and communicating with these It is a two step process:market segments and target markets.

Chapter 7 Tourism Marketing

Reasons for Market SegmentationNot possible to serve the total market Total market is not homogeneous Customers react differently to 4 P’s To properly identify target markets To better position the product To better serve the customer To compete more effectively To achieve organizational goals such as higher profitability, effectiveness, service quality