CLASS ASSIGNMENT

Market Segmentation & Targeting of Leisure Market

Identifying & Developing Market Activities of Leisure

Market

Marketing Mix for Travel & Tourism

Group Members :-
Tarunpreet Singh Pahwa
Vijendra Yadav
Sandeep Gupta
Surbhi
MARKET SEGMENTATION AND TARGETING OF LEISURE
MARKET
SEGMENTATION IN TOURISM
Market segmentation is a method of dividing a large market in to smaller groupings of consumers
each having common needs or behaviour. We have two types of markets:
a) Homogenous Market: a market in which people or organisation have similar characteristics
b) Heterogeneous Market: a market in which people or organisations have different characteristics
Market segmentation allows a marketer to take a heterogeneous market and carve it up in to one or
more homogenous markets which are made up of individuals or organisations with similar needs,
wants and behavioural tendencies. In short, market segmentation in tourism helps in.
a) efficient use of marketing resources to cater to a particular type of tourists,
b) better understanding of customer needs and providing better satisfaction,
c) better understanding of the competitive situation and emerging trends, and
d) achieving accuracy in the measurement of goals and performances.
57
SEGMENTATION THEORIES
Although you have studied segmentation theory in TS-6, here it would be useful for you to
recapitulate it.
According to Victor T.C. Middleton , “Market segmentation is the process whereby producers
organise their knowledge of customer groups and select for particular attention, those whose needs
and wants they are best able to supply with their products”.
Hence, Market segmentation involves a division of the prospective market into identifiable groups. In
simple words, it can be defined as the division of a market into groups of segments having similar
wants. This theory is opposed to the diluting of efforts by appealing to an entire market. It is based on
a realisation of the fact that a product can be sold more effectively if efforts are concentrated towards
those groups which are most potential. Philip Kotter is of the view that different “competitors will be
in the best position to go after particular segments of the market” and each “organisation, instead of
trying to reach every one, should identify the most attractive parts of the market that it could
effectively serve”. At the same he mentions that this is not always the practise. The organisations, in
their thinking about operating in a market have generally passed through the following three stages:
1) Mass Marketing: This is a marketing style where the organisation makes efforts to attract every
eligible buyer to use its product which has been mass produced and will be mass distributed. Here
no attention is paid to consumer preferences.
Organisation Product Mass Market
2) Product Differentiated Marketing: In this marketing style the organisation produces two or
more products for the entire market. These products might have different characteristics but they
are not designed for any different group(s). Rather they only provide alternatives to every buyer in
the market.
Product
Organisation Market (Two Options)
Product
3) Target Marketing: Here, the organisation:
differentiates amongst varied market segments,
focuses on one or more of these segments (targets), and
develops the product to meet the needs of the target market.
Organisation Product Segment 1 Segment 3
Segment 2 Segment 4
In tourism, the organisations practice each style of marketing though the emphasis on target marketing
is gaining ground. Let us take the example of Airlines vis-à-vis the tourist market.
Under stage-1, airlines are available for everyone to travel.
Under stage-2, the airlines offer Royal class, J class, Business class, Economy class or one can
hire charter flight or a chopper.
Under stage-3, special airline services to pilgrim both domestic (dhams) or Vaishno Devi or
international (Haj, Jerusalem) which have set target of customers from among the up budget
tourist market.
58
This shift of emphasis is because of the benefits in market segmentation.
By selecting the market niches, i.e., suitable markets, an organisation can exploit the market much
better.
An organisation can focus its strategies more appropriately on target groups, or
Customer loya lties can be in instituted through segmented marketing because the product matches
the needs of that segment.
However, it must be noted that the same customer can be there under different descriptions for various
segments as illustrated in the following figures.
Figure I: Un -segmented Market Figure II: Segmented Market




Figure III: Market Segmentation Figure IV: Market Segmentation
by tourist’s motives: by tourists’ income groups:
1. Business A. Up-market
2. Cultural B. Middle Income
3. Pilgrims C. Low-budget
1 2 3 2 B C B B
3 1 3 B A A
2 1 1 3 A A B A
3 3 3 C B B
3 1 3 2 C A A C

SEGMENTATION AND TARGETING APPROACHES IN

TOURISM
It is true that product can be sold more effectively if efforts are concentrated towards those groups
which are most potential. In the words of Philip Kotler, “Competitors will be in the best position to
go after particular segments of the markets and each organisation instead of trying to reach
everyone, should identify the most attractive parts of market that it would effectively serve ”. He
also acknowledges that in practice marketers operating in the markets have generally passed through
following three stages:
Compare Figures III and
IV. You will find that out
of the nine tourists with
sun and sand motives (3),
three belong to higher
income group (A), four to
middle income group (B)
and two to lower income
group.
** Can you give similar
figures for Adventure and
Culture?
(Answer at the end of the
Unit)
59
Figure 1
The purpose of market segmentation in tourism marketing is to:
Segment the markets generating tourists, and
Identify the prospective tourists according to lifestyles, socio-economic status, attitudes about
travel, etc.
This is done to best qualify these tourists for high prospect customer status. This high potential
prospect is defined in terms of how closely his/her vacation preferences and lifestyles match up to
what the destination has to offer. In other words, the purpose is to go for cost-effective marketing.
This can be achieved by designing, promoting and delivering the tourism products or services in such
ways that the identical needs of the target groups are satisfied. A crucial aspect here is what is
grouped in forming market segments. Consumers are not mutually exclusive categories and what is
grouped together is the customers’ probability of purchasing different types of product offers. Hence,
it is necessary to understand what is wanted and who is going to buy it. A marketing person has to
gain knowledge about this and he or she can approach this problem by asking certain questions like:
What
factors influence the tourist demand?
services do the tourists expect?
is the basis for tourists comparing your product with other products?
benefits do the tourists seek?
risks do the tourists perceive?
are the tastes of the tourist?
How
do tourists buy ?
much are the tourists willing to spend?
Mass Marketing
Efforts are made to attract every
eligible buyers
No attention is paid to consumer
preferences, e.g., airline for every one
who can afford, same by all airlines.
Target Marketing
Varied segments are differentiated
Focus on one or two of these segments
Products are developed to meet their needs,
e.g., operating of short/shuttle services
between popular business destinations for
corporate travellers or for pilgrims. For
international pilgrimages, Haj, etc. and for
domestic, Vaishnodevi, Kedarnath, Ajmer,
Neelkanth, etc.
Product Differentiated Segmentation
Organisation produces two or more products
for entire market but produces specialised
products for particular groups
Only to provide alternatives to every buyer
in the market, e.g., an airline offering
different classes. “J” class, “Y” class, Royal
Class, etc. Some airlines provide more leg
and luggage space according to their class of
journey.
60
many vacations do the tourists take in a year?
does promotion and advertising effect the tourists’ demand?
does the product fit into the life styles of tourists?
Where
is the decision made by tourists to buy?
do the tourists seek information about the product?
do the tourists buy the product?
When
do the tourists take a vacation?
do the tourists make a decision to buy the product?
is the product repurchased?
Why
do the tourists buy your product?
do the tourists choose one destination over the other?
do the tourists go to a particular destination?
do the tourists prefer one type of service and not the other?
do the tourists buy your competitors’ products?
Who
buys your product?
buys your competitors’ products?
are likely to buy your product?
may not be interested in your product?
You must remember here that this list of questions is only suggestive and the nature of questions will
depend on the nature of your product and certain specific situations. Besides, you will need the back
up data and information for finding answers to these questions which may not always be possible. But
you should not be discouraged by the limitations.
Depending upon the study’s purpose, various approaches are employed in the tourism industry to
identify market segments. Segments can be defined either by descriptive or casual factors. Descriptive
factors simply describe the characteristics of the person found in a segment. The “why” of a person’s
action, however, is better obtained through additional use of causal factor information which identifies
the motivation behind a decision.
A practical and Actionable Segmentation requires profiling of both:
Past visitors, and
Prospective visitors.
This is done to ensure proper matches and to determine the actual size of each high potential segment,
in terms of:
Geographics,
Deomgraphics
61
Psychographics, and
Travel Habits.
In other words, we can say that the:
Target for Marketing = Characteristics + Demographic profile
(of Consumers, Products and Services)
The studies of marketing experts like Kotler and Chisnall show that in order to make any segment
actionable for marketing, each segment must be:
1) Discrete, i.e., the separate identity of the sub-group must be established by using any criteria like
income, purpose, interest, etc.
2) Measurable, i.e., the characteristics that distinguish the sub-groups should be measurable through
the available data.
3) Viable, i.e., the projected earnings to be achieved should be more than the costs of designing the
market mix.
4) Appropriate, i.e., showing the inseparability of the tourism product which should contribute to
the overall image in the market.

SEGMENTATION FACTORS
In practice, the ground for tourism market segmentation shall be, of course, on the basis of:
a) Geographic factors
b) Demographic profiles,
c) Psychographic attitudes
d) Behavioural situations, and
e) Prices
a) Geographic factors: Since tourism involves movement of millions of people across the
international boundaries, it is an acknowledged fact that the tourists’ needs differ according to
geographic regions. For instance, tourist coming from Australasia region would have altogether
different needs than a tourist coming from North America. Not only this even tourists coming
from two different coasts of America have different needs, desires and attitudes. Therefore, to
market successfully your product or services you must understand varied needs of the tourists
coming from different geographic areas. It is only then that you can categor ise your potential
segments in a homogenous manner. Therefore, it is advisable that you should try to target a
segment for your product which lacks that particular product/service you are marketing. For
instance, you sell deserts of Rajasthan to tourists from Germany, UK or France which have no
deserts. Similarly, if you are trying to sell your mountain based activities to tourist from countries
who do not have such snow capped peaks. You may succeed but if you try to target tourist from
Switzerland or Austria you cannot succeed. On the same pattern don’t try to sell your coastal
beauties to tourist from Australasia or Pacific but try to sell them to tourists who don’t have such
coastal attractions in their countries. Kerala started marketing “monsoon tourism to tourists from
Middle East” but the same cannot be sold to tourists from North-East India. Here Kerala will have
to sell beaches and back waters.
b) Demographic Profiles: This factor is a vital factor for developing tourism products and services.
It means to segment your product service market on basis of income, age, sex, family size,
lifestyle, family life cycle, education, religion, race and nationality and so on. If you fail to design
your product or segment your market without giving due considerat ion to these factors then there
may be serious repercussions for your product or service. It is important because:
i) Consumer wants, preferences and usage rates are associated with demographic variables, and
ii) this method is easy in measurement and interpretation of data.
62
For instance, India being a long haul destination (average length of stay is 27.2 days) and our
major markets are America, Europe, Far East and Australasia. The demographic profile of these
markets will help in marketing decision making. If we look at the demographic characteristics of
the European market, we see:
Age: between 25 – 59 years
Sex: majority of males, alone females very few
Family sizes: 2 – 4 members
Family Life Cycle: single/married without children (DINKS) or with children below the age of 14.
Income: Euro 7000 and above
Occupation: professionals, executives, teachers and professors
Education: Higher secondary and above
Nationality: German, French, Italia, Swiss, Dutch, Spanish and Swedes
Based on this data a marketer can develop, rejuvenate or alter his or her tourism products.
c) Psychographic Grounds: Division of groups on the basis of their social status, life styles and/or
personality characteristics is very essential in tourism marketing. While using demographic
parameters of income, we can divide the target segment in to upper middle class, middle class and
lower middle class. Each of these sub-variable will have different tastes, likings, status, product
preferences, etc. accordingly. Personality characteristics also play and important role in product
development and market segmentation. For instance, if you are targeting at tourists for adventure
sports related tourism, their real market segment would be tough and strong or adventure seekers
only. These people shall be young and so would naturally belong to low budget or lower income.
Another important criteria for segmenting the tourist market is on the basis of personality traits,
i.e., some members of potential targeted market are allocentrics. Money wouldn’t be a constraint
for this segment but they want to visit a new and adventurous place every time. They don’t like to
repeat the same destination. They love to be called first timers or trendsetters to be followed by
the masses (psycocentrics) who have a fear for unknown and who want to perform repeat visits.
In this category, as a marketer, you should also try to identify those who are self made, successful
socialite, mainstreamers, aspirers or innovator type of people because they are the ones who are
most likely to purchase tours to far away countries.
It is also advisable that you should try to segment your market with an idea that among certain
categories of tourists there can be found some common attitudes. For example, people in the age
group of 18-26, want to have vacation full of leisure and thrill, while others who look for
adventure can form another group.
d) Behavioural Grounds: In psychological terms the whole range of generation of wants and their
transformation in to buying or using decisions can be explained as behaviour. Before learning
about transformation process of attitudes of tourists in to action we should know who are users
and what is their base:
Foreign Tourist, Domestic Tourist, Youths, Students,
Executives, Artists, Politicians, Academicians, Pilgrims,
Representatives, Sportsmen
General Classification
Sex as a base Male, Female
Region as a base Urban, Rural, Cosmopolitan, Sub-urban
Education as a base Professional, Worker, Vocational, Artists, Professor,
Craftsmen, business man, etc.
63
(Adopted from the model of S.M. Jha, Tourism Marketing)
In view of this, the marketing decision cannot be sound unless the marketers make an in-depth
study of the visitors’ behaviour with focussed attention on customer satisfaction. Before arriving
at sound marketing decisions, the marketers are required to see that users are aware or unaware;
interested or intend to purchase either on trial or experimental basis; whether user is light user
(non-frequent) or heavy user (frequent users), etc. This kind of study will help the marketers to
focus their advertisements on the service sensitivity of the users. In tourism market segmentation
a large number of behaviouristic variables are used. Among important ones a few are:
I) Occasion for travel: You can segment your tourist market on the basis of the occasion they
use for travelling. For instance, you can segment your tourist markets as business tourist
market, holiday/leisure market, VFR (visiting Friends and Relations) market, adventure
tourist market, heritage tourism market, or honeymooners market and so on so forth.
II) Benefit derivation: Segmentation on the basis of benefits identifies the:
i) major benefits that the customer looks for in the product;
ii) kind of people who look for each benefit; and
iii) major brands that deliver each benefit.
According to Kotler many products are made-up of three “core benefit segments”, i.e.,
i) quality buyers – more concerned with product image rather than cost;
ii) service buyers – product that provides good service, i.e., best value for money; and
iii) economy buyers – who are more concerned with the cost and, therefore, would like to
keep it low.
Kotler further classifies customers on the basis of behaviouristic attitudes in to four
categories on the basis of behaviouristic attitudes:
i) hard-core loyals – would never think of switching over;
ii) soft-core loyals – may think of one or two alternatives;
iii) shifting loyals – gradually favour one product/organisation over other; and
iv) switchers – those who have no loyalty to any organisation.
Kotler’s this classification of customers is very useful form the perspective that you can pinpoint
which brands are most competitive to you. By knowing the product and market
strategies of your competitor you can successfully convert your soft core loyals customers in
to hardcore customers by offering them incentives like free mileage or free accommodation
when they accumulate required mileage or number of nights.
III) Associated characteristics: Besides the benefits sought by tourists, you can also use other
associated characteristic for segmenting your market. These are:
i) User status: In this category a tourist may be segmented as first time visitor or repeat
visitor, past-visitor or potential visitor, etc.
ii) Usage rage: This can be illustrated as frequent usage called frequent fliers for an airline
or for hotels ex-numbers of night spent to earn points for complimentary services.
Status as a base Upmarket, Budget Market, Low-Class Market
Occupation as a base White Collar or Blue Collar Tourist
64
iii) Loyalty status: This highlights the loyalty of your customer who remains loyal to you in
spite of many allurements to shift to other products or service. Therefore, your company
must study its own hardcore loyals and devise marketing strategies to maintain their
loyalty. For example, an airline offers members of its frequent fliers scheme, quick checkin
or extra baggage allowances, priority in confirmation of seats or special waiting
lounge.
IV) Buyer-readiness stage: This is a crucial factor for market segmentation since an in-depth
study of this allows marketers to launch their product at right time. For example, if you decide
to launch special packages for all family members, readiness stage would be when all the
members have leisure, i.e., when they have a vacation. In another example, private domestic
airlines started their services when they realised that domestic air travellers were weary of
monopolistic attitude of the national carrier.
V) Attitudes: No doubt tourism market can be classified by the degree of enthusiasm tourist or a
potential tourist shows in buying a destination. Keeping in view this you may encounter
tourists who are enthusiastic, positive, indifferent or hostile in their attitude towards the
destination. It would be easier for you to sell a destination to those who are enthusiastic and
positive in their attitude.
e) Price factor: By now you must have gathered a fair idea that tourism market constitutes of:
i) those who are high spenders and are prepared to pay high prices and they are described as upbudget
tourists;
ii) those who want to take low priced vacation; and
iii) those who may take a moderately priced holiday.

It is true that price range communicates to consumers the quality expectations of a product along
with the producer’s image. Today destinations in South Eat Asia are cheaper than travelling
within India. For example, Bangkok is being sold at $25 per night, Singapore at $40 per night, etc.
This is able to attract large volume of outbound tourism from India.

OTHER VARIABLES
Tourism markets are also segmented on the basis of travelling habits of tourists, which include:
a) Distance Travelled: Whether potential tourist segment belongs to long haul, short haul or mid
haul tourist. This is classified on the basis of the distance a tourist travels. For India, tourists from
Europe, Far East or USA are long haul market segments whereas Nepal or Bangladesh are short
haul.
b) Duration of Trip: Segmentation of tourist markets can also take place on basis of short-break
holidays of 2-3 days or long trips of 20 or more days for instance to USA or Europe.
c) Time of Travel: Tourist markets can also be segmented on the basis of time period when they
travel. For example some tourists prefer to travel during summer holidays while some prefer to
travel during winter holidays or some take a holiday in both summer and winter. In Europe,
normally, longer trips are taken during summer seasons, since vacation is longer in summer than
winters.
d) Organisation of Trips: Marketers also segment the market on the basis of how do they travel,
i.e., whether they travel individually (FIT) or in groups (GITS). On the other hand, some of your
customers will buy only air tickets or in some cases only hotel bookings will be sought.
e) Religion as Travel Motive: Since ancient times man has travelled for religion motives be it to
have a holy dip in the revered rivers or to visit any temples devoted to their deities or even for the
sake of visiting religious fairs or melas. Undoubtedly religion has always been one of the prime
motive for travel. However, in present times specialise services are prepared and delivered to this
niche market whether they are Muslim tourists (Haj); Hindus (Dhamyatra) or Christians (Hoy
65
visit to Jerusalem). You must have noticed that there is a particular time for each of there
segments to travel. For instance, Haj travellers travel between the month of January and March;
Hindu tourists visit their dhams or other religious shrines like Vaishno Devi, Shirdi, Kalka, etc.
during summer vacations, i.e., May to July; and, of course, Christians travel during October and
December. If you look at the time and spatial distribution of there religious tourists it would
appear to be a much more potential market segment on regular basis. Therefore, it is advisable
that you should treat this segment as a solution provider to your seasonality problem.
It must be noted here that you can apply one or a combination of more than one variables
simultaneously for market segmentation. In tourism for selecting the basis for segmentation. There are
no fixed method but certain methods have worked successfully all through years. These are:
intuitions,
experience,
market research; and
trial and error, etc.
But at the same you must assess your own resources, size, growth potential, capacity risks,
competition, infrastructure and support system, etc.
In the end it is advisable for all that now since you have segmented your markets in to smaller
homogenous markets, as a tour operator or a hotelier, etc., you must decide upon which niche market
you would like to cater to and accordingly develop upon your services or products. If you are a tourist
transport operator you shall decide on which segment you are targeting at only then you will be able
to make your purchases of motor vehicles. It would always be a wise decision to make your efforts to
capture specialised market segments. For instance, if you are a hotelier you have the option to choose
from catering walk-in customers or groups, corporate customers to cabin crew members and so on so
forth.
IDENTIFYING & DEVELOPING MARKET ACTIVITIES OF
LEISURE MARKET (CASE STUDY)

A TOURISM STRATEGY
FOR

ELLON
1. Introduction

1.1 The Ellon Town Team Officers Steering Group has produced this strategy, although its
implementation will depend on commitment from a wide range of parties with an interest in tourism in
Ellon and the surrounding area. These interests have been consulted in the formulation of the strategy.

2. Context

2.1 Under the Aberdeenshire Towns Partnership (ATP), A Strategy for Ellon, launched in 2001, a number
objectives were included that would help make Ellon a more attractive place to visit, namely, Town
Centre Enhancement, Signage and Interpretation Strategy and the Ellon Path Implementation Projects.
Following on from the town strategy came the Ellon 3 year plan that identified further projects for
attracting visitors into the town including supporting the Ellon Traders Association to put on events in
the town and provide flower baskets in the town centre.

2.2 As the Aberdeenshire Towns Partnership withdraws from Ellon, along with Stonehaven and Inverurie,
these towns, including Ellon are participating in a European programme under the Interreg IIIc
programme SusSET (Sustaining Small Expanding Towns). The development of this tourism strategy
is part of the overall SusSET project and forms a part of the whole town strategy.

2.3 The Aberdeen and Grampian Tourism strategy has the key objectives to achieving sustainable growth
in the value and share of the tourism market all year round; to build world-class experiences and
 service levels for our target customers; to make a step change in our performance for the local tourist
economy.

2.4 A recent branding exercise by Aberdeen City and Shire Economic Forum has taken place, identifying
the area as Aberdeen City and Shire – a Brighter Outlook. The strategy reflects this branding.

2.5 At a national level, a report was published in November 2005 – “Scottish Tourism – the Next
Decade – a Framework for Tourism Change”. This identifies the huge importance of the UK
market but that overseas markets are growing faster, overall satisfaction levels are high, that today’s
travellers want customised and flexible travel to a destination generally within 3 hours travel time;
special interest holidays and special experiences; an authentic experience (with experience mattering
more than destination); good value for money and that there will be increasing demand in the future
for short breaks with an interest in good health/activity; the use of a break as a personal reward or
wellbeing experience; increasing interest in extended education e.g. history and culture. The principal
focus appears to be on leisure, short break, and tourism.

2.6 Sources of Information - the Visit Scotland Tourism Survey will be published shortly and will provide
useful data on visitor patterns, expenditure and what they are looking for. For a more local
perspective an Ellon Visitors survey could provide useful information for future tourism development.

2.7 Community Planning – is the overall framework under which public and voluntary sector agencies
interact and work with the community and businesses, including tourism businesses, to a common set
of goals. Community Planning in Aberdeenshire has a vision of ‘’working together for the best
quality of life for everyone in Aberdeenshire’’. This is done through four themes of Jobs and the
Economy; Sustainable Environment; Community Wellbeing; and Learning and works to six principles
of Inclusion; Accountability; Participation; Communication; Evidence Based; and Partnership.
Tourism fits mainly under the Jobs and the Economy theme but has implications for the other themes,
in particular Sustainable Environment. The production of the strategy and the workings of an Ellon
Tourism Strategy fit well with the principles of Community Planning.

3. Ellon

3.1 In order to assess what is required from the strategy and what specific action should be taken forward,
it is important to consider the strengths, weaknesses, opportunities and threats to tourism in Ellon.
The following outlines these aspects-:

3.2 Strengths
 the landscape setting
  the river
 Forvie and the Ythan estuary
 opportunities for fishing, wildlife watching and walking
 walks on the river, in the town and adjacent woods
 Ellon Meadows Sports Complex
 Ellon Swimming Pool
 Castle Gardens
 Fyvie Castle
 Haddo Country Park
 A wide range of eating opportunities
 Pitmedden gardens
 Close to Aberdeen City
 Kingscliff Sporting Lodge
 Formartine and Buchan way
 A wide variety of accommodation
 Interesting local history
 Golf Course
 A range of events, some with an international flavour
 An active Business Association ETA and EBI
 Strong community and voluntary organisations
 Small independent retailers (although limited choice may be a weakness)

3.3 Weaknesses
 Lack of town tourism group to coordinate, monitor and evaluate the delivery of a tourism
action plan
 The town is easily by-passed so visitors need to be drawn into it
 There are no large hotels/function rooms
 Quality of accommodation – there is limited high quality accommodation
 There is limited Quality Assured facilities
 There is a short summer season
 Limited variety of shops
 Tourism has been neglected in previous town strategies
 No town website
 The tourism experience on offer has failed to keep pace with recent trends and customer
expectations
 Good quality indoor activities lacking
 Lack of visitor information and little differentiation e.g. recognition of overseas visitors
 Over-reliance on the business tourism market e.g. due to strength of oil & gas sector

3.4 Opportunities
 Develop castle gardens into a first class visitor attraction.
 There are opportunities for tourism related businesses to participate in networking
 Setting up and sharing training and Quality Assurance opportunities
 Being part of the SusSET Project presents opportunities to share, and learn from experiences,
with similar towns with similar problems elsewhere in Europe and perhaps the opportunity in
the future for European funding to help address some issues
 To establish a group of tourism related businesses to work with Visit Scotland, Scottish
Enterprise Grampian, Local Authority and the voluntary sector to develop and improve the
product and its promotion.
  A strategy helps to set a clear vision and action plan
 Opportunities to promote Ellon through its events and attractions to a wide market
 Web- based promotion
 Improve visitor flow and access by providing better information
 Further events’ development e.g. international markets
 Climate change – warmer sunnier summers
 Joint ticketing of venues
 More activities for visitors
 “Green” and food tourism
 Aberdeen Western Peripheral Route – faster links to airport
 Towns Together Forum – potential to work in partnership with other towns in promoting the
region

3.5 Threats
 Decline of the town as an attractive place to come and visit.
 More accessible destinations
 Destinations with a longer summer season
 Destinations offering a better range of accommodation
 Climate change – wetter summers
 Economic influences e.g. adverse exchange rates & fuel costs
 Further changes in holiday trends
 Competition from other spending choices e.g. lifestyle products
 Rising business costs e.g. business rates & energy costs, and bureaucracy
 Large-scale hotel development could have an adverse impact on existing accommodation
businesses

4. The Aim of the Strategy

4.1 The aims of the Ellon Tourism Strategy and a supporting action plan are as follows: -

To Understand the Existing Tourism Market in Ellon and the Requirements of Existing Tourists

Ellon Tourism Group (once established) will review national and local survey results (once available)
and other relevant information either commissioned by individual tourism businesses or other Tourism
Group to ensure that there is an understanding of the profile of visitors and what they are looking for.
Ellon will, also, undertake periodic tourism surveys in order to gauge the effective delivery of the
strategy. This information will be disseminated to businesses and interested parties as required.

Ensure that Visitors have an Experience that Meets or Exceeds their Expectations
Ellon Tourism Group will encourage networking opportunities and jointly with the Businesses
Association will organise seminars and training as required. Tourism businesses will be encouraged
to participate in Visit Scotland Quality Assurance Schemes; Scottish Enterprise Grampian Service
Achievement Awards; Pride and Passion Initiative, Green Tourism Initiatives etc. Ellon Tourism
Group will explore any gaps in the tourism products and services offered and seek opportunities to
improve these.

To Explore and Implement Ways of Extending the Season and Market

Ellon Tourism Group will explore and promote ways to extend the tourism season and scope of the
tourism market, recognising the changing trends in visitor needs.

It will work with others towards the further development of key events to attract a wider range of
visitors to the town e.g. an international market to build on the summer/music festival.

Ellon Tourism Group will identify and action new opportunities for marketing and promoting the
town and surrounding area. For example, using the main visitor entry points' e.g. regional airports,
ferry terminal, and rail stations.

Steps will be taken to research and understand the day visitor market in greater detail. This will
include developing specific marketing actions aimed at attracting visitors from this important sector.

Ellon Tourism Group will continue to develop existing marketing materials for the town and will
undertake a promotional programme across Scotland and the U.K. where possible, aimed at attracting
more day and short stay visitors to the town and surrounding area.

Structured Marketing and Promoting a Consistent Image and Identity

Ellon Tourism Group will produce marketing material for the town as a whole, and for the various
events that are held. Through the Towns Together Forum, Ellon will participate in the annual Expo
tourism exhibition.

Under the umbrella of the Aberdeenshire Towns Partnership discussions will be held in relation to an
image/theme/strapline for Ellon. We have been working with "the natural choice" theme /brand for
some time now and this strapline should be considered by the group as a useful starting point. As part
 of this project will be the development of a town website that will help raise the awareness of the town
and provide a medium for marketing and promoting events and activities.

Ellon Tourism Group will adopt and encourage appropriate businesses to adopt the Aberdeen City and
Shire branding.

Ellon Tourism Group will work with other organisations such as the Civic Pride group, Heritage
group and business associations that are dedicated to improving the appearance of Ellon.

Aberdeenshire Council will try within resources to ensure that litter, public conveniences and general
housekeeping is as good as can be found anywhere in the country.

5. Engagement with the Community and with Tourists

5.1 Ellon Tourism Group will organise, as appropriate, meetings, seminars, discussion forum for
businesses involved in tourism in Ellon. Given the nature of Ellon and its economy, a wide range of
businesses will be involved in this, even if the apparent link with tourism is not so obvious. This will
be done jointly with the town’s Business Associations.

5.2 This strategy will be the subject of discussion and consultation in the first instance and then will be refined
to ensure that it represents what the tourism industry in Ellon, and the wider community, seeks. There
will be close co-operation between the various organisations such as Ellon Tourism Group; Ellon
Traders Association; Ellon Community Council; Visit Scotland; Ellon Business Initiative;
Aberdeenshire Council; Scottish Enterprise Grampian and Enterprise North East Trust, etc. in relation
to achieving the objectives of the strategy.

5.3 At least once per annum there will be a forum open to all for discussion about the implementation and
review of the strategy, changing markets and trends, and future action programmes.

5.4 Ellon Tourism Group will produce and circulate an action plan, which looks forward for a 3-year
period and will revise this annually and this will take forward the strategy.

5.5 Ellon Tourism Group will continuously review feedback and any information on trends and review
and revise the strategy in consultation with all stakeholders as necessary.
MARKETING MIX FOR TRAVEL AND TOURISM

To make life easy for marketers who occasionally run into difficulty at dinner parties in explaining what
they do for a living, there is something of a mnemonic called The Four Ps of Marketing. This is often
referred to as the marketing mix. But then to make life difficult again a further three Ps need to be brought
into play to cover the service industry of which travel and tourism forms a part. Other Ps have crept in over
the years which are more overviews and extensions, with Passion often being referred to as the eighth P.
• Product
• Pricing
• Promotion
• Place
• Positioning
• Packaging
• Personnel
• Procedures
• Physical environment
• Perishability
• Passion
Product
It is this element to which all the other elements relate but without which it would be inaccessible or have
little meaning. ‘People do not buy products, they buy the expectation of benefits. It is the benefits that are
the product.’ (Levitt: 1969). The fact that a product exists is therefore only part of the story. What product is
offered by British Telecom? It is certainly much more than the cables and telephone handsets which they
provide. It is communication, reassurance when you call an elderly relative, happiness when you receive a
call from someone you love, excitement when you hear good news and sadness when you hear bad.
Similarly, a hotel is much more than a place to sleep and eat. For different people it could be a surrogate
home for a company director while away on business, a haven of refuge for a salesman when stranded or
a prison for a tourist if caught up in a war zone. It may be a place to relax, to work, to entertain or be
entertained,
to confer or just to lie around in the sun. For operators to decide what business they are in, or what
their products are, is one of the key issues of marketing. To decide this, information is needed from customers
which requires market research.
Promotion
Promotion is about telling people what’s on offer. It is not entirely separate from the product because what
is said and how it is said influences how the product is seen. It’s ‘the sizzle not the sausages’ that is sold,
or it’s Coke with all the images of sun, youth, vitality, and world-wide harmony. It’s certainly not ‘carbonated
water with vegetable extracts’.
Marketing in Tourism and Travel; Back to Basics: The 4 Ps of Marketing and 3 Ps More Page – 1 –
Promotion includes advertising but also includes direct mail, public relations, printed brochures, presence at
travel trade shows, and participation in joint marketing schemes. Promotion can be very expensive and it is
often difficult to decide whether or not it is successful.
Price
Price is the one element in the marketing mix which produces revenue. Most of the others involve cost,
which may explain why marketing is less popular than it might be. Price is often determined by the cost,
with a margin being added to yield a profit or return on the investment. Marketing, however, would
recommend
using price tactically to help to achieve the goals of the business, varying the price according to the
level of demand and the willingness of the market to pay the price. Marketing is about giving each product
or business its own ‘unique selling proposition’, so that it is different from all competing products and can
command a premium price.
Price is also an indicator of quality, particularly for the first-time buyer, and while it remains so, subsequent
purchases are much more concerned with judgement of value for money.
Place
Place really means distribution. A packet of tissues can be bought almost anywhere but the places where
tourism can be bought are relatively few. Nor is tourism very well packaged in the domestic market: it is
much easier to buy an all-inclusive holiday abroad than to buy one in the UK. Tourism is different from
many other products in that we travel to the product, whereas most of the other goods we buy, from cars
to tomato sauce, travel to us, or at least to the nearest garage or shop. But to enjoy a weekend in Capel
Curig one must first travel to get there. Most marketing relates to products where there is something tangible,
something you can hold in your hand. You can hold a can of beans or a bottle of Whisky whereas
tourism is a service, mainly intangible at the point of sales and often cannot be inspected. Many service
products like travel and tourism are ‘ideas’ in the minds of prospective buyers. They cannot easily be
measured,
touched or evaluated at the point of sale prior to performance, and in travel and tourism the point of
sale is, more often than not, remote from the product. The role of third party product evaluation and reporting
is vital here. You cannot hold an experience, and the familiar ‘wish you were here’ which is written on
postcards by holiday-makers demonstrates a wish to share the experience because there is no way it can
be packaged and brought home. The role of holiday snaps is interesting as they are an attempt to capture
the experience so that it can be shared and relived. In much the same way third party product evaluation
and reporting is vital as part of promotion in the form of recommendations and testimonials.
Positioning
Positioning is a function of all four Ps together in determining where in the market a product stands in relation
to others.
Packaging
Packaging is an extension of Positioning insofar as it deals with how a product is presented in the market
place and is a function of Promotion, Price and Place together.
Personnel
Personnel are crucial in tourism where a pleasant manner and appearance can turn a disaster into an
acceptable experience, and an acceptable experience into a memorable one. This is marketing at the sharp
end and the importance of people in delivering the tourism product underlines the need for careful selection
of staff, their proper training and motivation, and the provision of the right tools and information to
make their jobs easier and more effective.
Procedures
Procedures help to ensure proper delivery of the product by routinising the way it is delivered. Whether it
is the carefully controlled queuing at Disney World, the cleanliness of MacDonalds or the bedtime chocolate
in the Plaza in Kuala Lumpur. All these suggest that visitors are valued and thought is being given to
their welfare and enjoyment.
Physical environment
The physical environment is very important in services. Imagine a dental surgery with blood on the floor:
very unpleasant. A dirty plate in a restaurant would put anyone off and make it difficult for the service to
be experienced as was intended.
Marketing in Tourism and Travel; Back to Basics: The 4 Ps of Marketing and 3 Ps More Page – 2 –
Perishability
Products, as generally thought of, are manufactured and held in stock at a warehouse or on shelves in
shops waiting to be bought. Services, however, are performed and are better understood as a ‘capacity to
produce’. Capacity can only be utilised when customers are present on the producer’s premises or physically
in the care of a supplier. If customers are not present then the capacity becomes wasted. I
In travel and tourism the plane, train, bus or ferry only leaves once at a given moment in time and bedspaces
are only available once on a given night or series of nights. If they are not taken up before time
they perish. This is clearly felt by consumers missing the last train or finding no room left at the inn.
Conversely, transport operators and accommodation providers left with empty seats and empty rooms
experience perishability as the opportunity for selling them passes. There’s no second chance to fill them.
It is here where tactical marketing comes into its own.
Passion
Graham Phillips of the Marketing Group offers Passion as an ingredient. Often known now as the eighth P it
is perhaps best explained as the kind of limitless enthusiasm for the job that drives a person on to achieve
things that payment alone for the job would not necessarily guarantee; often producing results beyond
expectation. Those marketers that have it for their work are more likely to succeed over those that don’t.
There is little doubt that motivation plays a key part in marketing, whether its simply a motivation to succeed
or perhaps just a motivation to please. But the marketing edge is likely to be held by those that have
a belief in their work and their products.