Tour Map Market

Tourism Marketing
Ramakrishna Kongalla
CCDD Create, Communicate,

Deliver & feedback
Marketing means achieving the
firm's goals by identifying the
needs and desires of consumers,
and then satisfying them better
than competitors.
Tourism marketing is the
application of marketing
concepts in the travel and
tourism industry.
Tourism marketing could be
complex due to the product
being an amalgam of many
different industries such as
accommodation and
transportation.
The markets also vary widely,
and determining the consumers'
preferences could be difficult.
Definition
the organized, combined efforts
of the national tourist bodies
and/or the businesses in the
tourism sector of an
international, national or local
area to achieve growth in
tourism by maximizing the
satisfaction of tourists. In doing
so, the tourist bodies and
businesses expect to receive
profits
Product
climate, history, culture,
amenities,
The tourism product is the sum
of all the factors in an area that
can result in consumer
satisfaction.
A tourist or his travel agent
combines the different
components to get his own
tourist product.
R'tist@Tourism, Pondicherry University
Characteristics
intangible
Consumption happens at
once
consumer relies on prepurchase information to
make his decisions because
he has no option to see
different producers are
involved to create and
market the product
Demand is seasonal
motivations of consumers
vary widely
Intermediaries such as
travel agents have a strong
control over product
design, distribution,
promotion and pricing
High fixed costs are often
involved, resulting in the
use of short-run marketing
Features
involves several steps
Market research seeks to understand the
consumer
product development aims to meet his needs
Analysis and selection of target markets, also
known as segmentation, means studying
potential customer groups and selecting only
certain groups whose needs and wants can be
best met with a certain producer's product
Marketing strategy seeks to reach the target
markets using promotion, advertising, pricing
and distribution.
Communication
occur in three ways: external, internal and wordof-mouth
External marketing uses formal communication
channels to promote the tourism product to the
traveler, boasting of its benefits and making
promises
Internal marketing communication occurs when
the tourism service provider makes contact with
the tourist and delivers the promised benefits.
Word-of-mouth communication occurs
informally when visitors or employees discuss
their experiences of the tourism product to
others.
SWOT analysis of Tourism

Strengths
Vast geography with forests,
deserts, mountains & beaches.
Varied culture.
Many historical monuments.
Knowledge of English by
majority of local people.
Efficient transport facilities.
Weakness
Lack of adequate infrastructure.
Safety and security of foreign
tourists.
Misconception about India by
foreigners
Lack of maintenance of
monuments, forts etc.
Many languages and dialects.
Opportunities
Increased privatization.
CWG 2010, Grandprix2011
Medical tourism.
Go-green initiative.
World-class hotels and airports
Threats
Terrorism.
Tensions with Pakistan.
Better promotion by other
countries.
Economic slowdown.
PEST analysis of Tourism
Core concepts in Marketing

Needs
Wants
state of felt deprivation

including physical, social, and
individual needs.
Needs become wants when

they are directed to specific
objects that might satisfy the
need.
Demands
Wants + buying power
Needs and Wants Fulfilled

through a Marketing Offer :
Some combination of
products, services,
information, or experiences
offered to a market to satisfy
a need or want.
Target markets &

segmentation
Market
Differences in needs,
behavior, demographics or
psychographics are used to
identify segments.
The segment served by
the firm is called the target
market.
The market offering is
customized to the needs
of the target market.
The Marketplace is
physical, as when one goes
for shopping in a store.
Marketspace is digital, as
when one goes shopping
on the internet.
Metamarket is described as
a cluster of complementary
products and services that
are closely related in the
minds of consumers but
are spread across a diverse
set of industries.
Marketing Management Philosophies

The Production Concept
The production concept holds
that customers will favor
products that are available and
highly affordable and that
management should therefore
focus on improving production
and distribution efficiency.
The production concept is
useful when:
1) Demand for a product
exceeds the supply.
2) The product's cost is too
high and improved productivity is
needed to bring it down.
The risk with this concept is in

focusing too narrowly on
company operations. Do not
ignore the desires of the
market.
The Product Concept

The product concept states that
consumers will favor products
that offer the most quality,
performance, and features, and
that the organization should
therefore devote its energy to
making continuous product
improvements.
1. Some manufacturers
mistakenly believe that if they
``build a better mousetrap''
consumers will beat a path to
their door just for their product.
2. The product concept can
also lead to marketing myopia
the failure to see the challenges
being presented by other
products.
The selling Concept

Many organizations follow the
selling concept. The selling
concept is the idea that
consumers will not buy enough of
the organization's products unless
the organization undertakes a
large-scale selling and promotion
effort.
1. This concept is typically
practiced with unsought goods
(those that buyers do not normally
think of buying).
2. To be successful with this
concept, the organization must be
good at tracking down the
interested buyer.
3. Industries that use this
concept usually have overcapacity.
Their aim is to sell what they make
rather than make what will sell in
the market.
4. There are not only high risks
with this approach but low
satisfaction by customers.
The Marketing Concept

The marketing concept holds that
achieving organizational goals
depends on determining the
needs and wants of target
markets and delivering the
desired satisfactions more
effectively and efficiently than
competitors do.
The marketing and selling
concepts are often confused. The
primary differences are:
1) The selling concept takes an
'inside-out'' perspective (focuses or
existing products and uses heavy
promotion and selling efforts).
2) The marketing concept takes
an ``outside-in'' perspective
(focuses on customer needs,
values, and satisfactions).
Many companies claim to adopt

the marketing concept but really
do not unless they commit to
market-focused and customerdriven philosophies.
The Societal Marketing Concept

The societal marketing
concept holds that the
organization should determine the
needs, wants, and interests of
target markets. It should then
deliver the desired satisfactions
more effectively and efficiently
than competitors in a way that
maintains or improves the
consumer's and the society's wellbeing.
1) The societal marketing
concept is the newest of the
marketing philosophies.
2) It questions whether the
pure marketing concept is
adequate given the wide variety
of societal problems and ills.
3) According to the societal
marketing concept, the pure
marketing concept overlooks
possible conflicts between
short-run consumer wants and
long-run consumer welfare.
4) The societal concept

calls upon marketers to
balance three
considerations in setting
their marketing policies:
a) Company profits.
b) Customer wants.
c) Society's
interests.
5) It has became good
business to consider and
think of society's interests
when the organization
makes marketing decisions.
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Economic importance of Marketing
Generation of revenue
profit generation and marketing is the only
source to meet its expenses and earn profits.
survival and growth of the business
enterprise depends on the effectiveness and
efficiency of marketing.
marketing makes mass selling possible and

thereby facilitates large scale production.
Economies of large scale production help
to reduce the cost of production per unit.
Customer satisfaction
Employment Generation
marketing offers challenging and rewarding
jobs to a large number of persons. It also
generates employment in production by
enlarging the scale of distribution and
production.
Higher standards of living

Marketing is helpful in improving the
standard of living of people by offering a wide
variety of goods and services with freedom of
choice. It has modernized the living standards
of people through the supply of quality
products at reasonable price.
Economic Development
Marketing gives a boost to transportation,
banking, insurance, warehousing and other
economics activities. It makes the
economy strong and stable by balancing
production with consumption. In fact,
marketing is the kingpin that keeps the
economy moving ahead.
Marketing helps to identify and satisfy the

needs and wants of consumers.
Customer satisfaction has a important role in
marketing without which a business cant be
successful.
Large scale production
Foreign exchange earner

marketing helps in exploring foreign
markets and in exporting goods and
services. It is through marketing that a
country earns valuable foreign exchange.
Creation of utilities
Marketing includes all activities involved in
the creation of place utility, time utility and
possession utility. Place utility is created by
making goods available at the places
where they are needed. Time utility is
created by making goods available at the
right time. Possession utility is created
when goods are transferred to those who
need them.
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Tourism marketing
Service Characteristics
Tourism Demand
Highly unstable
Curiosity and desire to travel
Seasonal
Tourism marketing creates
Economical
desire in tourists
political
Multifaceted activities
Facilitators
produces tourism product
Motivators
Various sub sectors, that are
resistance factors
in themselves complete
industries
characteristics
Tourism promotion in various
Price elasticity
forms in different socio
responsiveness of demand
economic structures
to change in price
Marketing strategy is must
Income elasticity increase
in individuals income will
not necessarily mean an
increase in travel demand.
May result in an increase in
quality product or
destination.
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Tourism Product
Intangible, irreversible, perishable, lack of ownership,
Heterogeneity, Non-material, consumed where produced,
multiplicity of producers, highly unstable demand,
dominant role of intermediaries, motivations.
Tourism Demand Determinants
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Tourism Marketing mix

8 Ps in Tourism
Product
Place
Price
Promotion
People
Process
Productivity & Quality
Physical Evidence
2. Pricing
Cost
Demand
Competition
Duration
Mode of transport
Peak/Non-peak season
Destination
1.Product
Accommodation
Attraction
Transportation
Recreation
Shopping
Restaurant
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3. Promotion
Different states highlighting about
their features.
E.g.
1. Kerala- Gods own
countryHighlighting about
backwaters, ayurveda, elephants,
houseboats, beaches etc.
Incredible India and Atithi Devo
Bhava are taglines of Indian
Tourism
Our guest is blessed and Our
visitor is god
Aamir Khan as brand ambassador
for Atithi Devo Bhava for Indian
tourism.
Use of websites to sell tourism.
Brochures, pamphlets, ads in
newspapers.
E.g. Raj, Kesari and Thomas Cook.
4. Place
The destination is the important aspect in
place.
Travel agents, tour operators etc. are
distribution points.
Proper infrastructure, transport and
communication.
5. People
Role of people is very important in any
service.
In tourism, people involved are travel agents,
guides, airline crew members, receptionist in
hotel etc.
Contacts with people may be high, medium or
low.
Examples:
1. In case of airlines:
The passenger will have high or medium
contact with the air-hostess, groundstaff where as low or no contact with
the pilot.
2. In case of railways:
- The passenger will have high or medium
contact with travel agents or ticket
issuer but low or no contact with the
loco pilot.
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Travel agents should

provide best deals to
customers after
understanding their
requirements.
Guides should have indepth knowledge about
the locations, monuments,
forts, history etc.
Employees should deliver
what the company
promises to the customer.
Physical appearance of
guides also matters a lot.
6. Process
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7. Physical Evidence
8. Productivity &
Quality
It involves positioning
the process, the overall
destination, the
intangibles etc.
It also involves
positioning of tourism
as National priority.
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Tourism Demand Modeling and Forecasting

Tourism demand modeling
and forecasting are very
important for tourism-related
business decision making
Stock effect,
market response effect
Analysis
Tourism demand can be
measured in terms of
number of tourist visits from
an origin country to a
destination country
tourist expenditure by visitors
from the origin country in the
destination country
tourist nights spent by visitors
in the destination country
the explanatory variables for

tourism demand include
origin country income,
destination country tourism
prices, substitute destination
country tourism prices, tastes,
etc. Empirical studies usually
use living costs for tourists in
the destination as the tourism
price. Various demand
models can be used to
estimate and forecast tourism
demand.
modeling tourism demand in
a vector autoregressive (VAR)
framework, to forecast the
number of holidays spent by
non residents
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Methods that rely on

qualitative assessment
Unaided judgment
Prediction market
Delphi technique
Game theory
Judgmental bootstrapping
Simulated interaction
Intentions and
expectations surveys
Conjoint analysis
Methods that rely on

quantitative data
Discrete Event Simulation

Extrapolation
Quantitative analogies
Rule-based forecasting
Neural networks
Data mining
Causal models
Segmentation
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Managing capacity and Demand

Capacity Constraints
Time, labor, equipment
and facilities
Optimal versus maximal
use of capacity
Demand Patterns
Charting demand patterns
Predictable cycles
Random demand
fluctuations
Demand patterns by
market segment
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Market segmentation
segmentation is the process
of:
(1) taking existing and/or
potential
customers/visitors (market)
and categorizing them into
groups with similar preferences
referred to as "market
segments;"
(2) selecting the most
promising segments as
"target markets;" and
(3) designing "marketing
mixes," or strategies
(combination of the 4 Ps),
which satisfy the special needs,
desires and behavior of the
target markets.
no unique or best way to

segment markets, but ways
in which customers can be
grouped are:
(1) location of residence--instate, out-of-state, local;

(2) demographics---age,
income, family status,
education;
(3) equipment ownership/use--RV's, sailboats, canoes, tents,
snowmobiles;
(4) important product
attributes---price,
quality, quantity; and
(5) lifestyle attributes--activities, interests, opinions.
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Target markets
After segments have been identified, the business
or community must select the "target markets,"
those segments which offer them the greatest
opportunity. When determining target markets,
consideration should be given to:
(1) existing and future sales potential of each segment;
(2) the amount and strength of competition for each segment;
(3) the ability to offer a marketing mix which will be successful
in attracting each segment;
(4) the cost of servicing each segment; and
(5) each segment's contribution to accomplishing
overall business/community objectives.
It is often wiser to target smaller segments that

are presently not being served, or served inadequately,
than to go after larger segments for which there is a
great deal of competition.
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Positioning
In marketing, positioning has come to
mean the process by which marketers
try to create an image or identity in the
minds of their target market for its
product, brand, or organization.
Re-positioning involves changing the
identity of a product, relative to the
identity of competing products, in the
collective minds of the target market.
De-positioning involves attempting to
change the identity of competing
products, relative to the identity of your
own product, in the collective minds of
the target market.
The original work on Positioning was
consumer marketing oriented, and was
not as much focused on the question
relative to competitive products as
much as it was focused on cutting
through the ambient "noise" and
establishing a moment of real contact
with the intended recipient
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primary elements of positioning are:

Pricing. Is your product a luxury item,
somewhere in the middle, or cheap,
cheap, cheap.
Quality. Total quality is a much used
and abused phrase. But is your
product well produced? What
controls are in place to assure
consistency? Do you back your quality
claim with customer-friendly
guarantees, warranties, and return
policies?
Service. Do you offer the added value
of customer service and support? Is
your product customized and
personalized?
Distribution. How do customers
obtain your product? The channel or
distribution is part of positioning.
Packaging. Packaging makes a strong
statement. Make sure it's delivering
the message you intend.
Positioning concepts
Functional positions
Solve problems
Provide benefits to customers
Get favorable perception by investors (stock profile) and
lenders
Symbolic positions
Self-image enhancement
Ego identification
Belongingness and social meaningfulness
Affective fulfillment
Experiential positions
Provide sensory stimulation
Provide cognitive stimulation
Product positioning process
Defining the market in which the product or brand will
compete (who the relevant buyers are)
Identifying the attributes (also called dimensions) that define
the product 'space'
Collecting information from a sample of customers about their
perceptions of each product on the relevant attributes
Determine each product's share of mind
Determine each product's current location in the product
space
Determine the target market's preferred combination of
attributes (referred to as an ideal vector)
Examine the fit between:
The position of your product
The position of the ideal vector
Position.
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Marketing Environment
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Consumer buying behavior

"The study of individuals, groups, or
organizations and the processes they use
to select, secure, use, and dispose of
products, services, experiences, or ideas
to satisfy needs and the impacts that
these processes have on the consumer
and society."
how consumers think, feel, reason, and select
between different alternatives (e.g., brands,
products, and retailers);
how the consumer is influenced by his or her
environment (e.g., culture, family, signs,
media);
The behavior of consumers while shopping or
making other marketing decisions;
Limitations in consumer knowledge or
information processing abilities influence
decisions and marketing outcome;
How consumer motivation and decision
strategies differ between products that differ
in their level of importance or interest that
they entail for the consumer; and
How marketers can adapt and improve their
marketing campaigns and marketing
strategies to more effectively reach the
consumer.
Consumer behavior involves services and

ideas as well as tangible products.
main applications of consumer behavior
marketing strategyi.e., for making better
marketing campaigns
public policy
Social marketing involves getting ideas
across to consumers rather than selling
something.
studying consumer behavior should make us
better consumers
three ways of analysing consumer buying

decisions
Economic models - These models are largely

quantitative and are based on the
assumptions of rationality and near perfect
knowledge. The consumer is seen to
maximize their utility. See consumer theory.
Game theory can also be used in some
circumstances.
Psychological models - These models
concentrate on psychological and cognitive
processes such as motivation and need
recognition. They are qualitative rather than
quantitative and build on sociological factors
like cultural influences and family influences.
Consumer behaviour models - These are
practical models used by marketers. They
typically blend both economic and
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psychological models.
General model for Consumer Behavior

A general model of the
buyer decision process
consists of the following
steps:
Problem recognition;
Information Search
Evaluation of Alternative
Purchase decision
Purchase
Post-purchase
behavior/buyer's remorse
(cognitive dissonance)
AIUAPR MODEL
Awareness
Interest
Understanding
Attitude
Purchase
Repeat purchase
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Marketing Competitive
Differentiation
every company that is a leader in its market
Treacy & Wiersema say that there are

primarily three ways in which a company
can build competitive differentiation
Operational Excellence/Cost Leadership
Provide middle-of-the-market
products at the best price and the
least hassle.
Example: Wal-Mart.
Product Leadership
Provide the best product, period.
Continue to innovate year after year.
Example: Intel, Nike.
Customer Intimacy
Provide unique solutions to customers

by virtue of intimate knowledge of
their needs.
Example: IBM.
chooses to differentiate itself on one and only

one of these three "value disciplines".
For example, if a company tries to be the cost
leader as well as the product leader in its market over time, it will end up as neither, Wal-Mart
doesn't sell Armanis, Nike doesn't sell cheap
shoes, and IBM sells neither the cheapest nor the
best products.
How Durable Is Your Competitive

Advantage?
If your company chooses to be a product
leader, continue to innovate year after year
Intel, for example, has sustained product
leadership over a very long period by outinnovating competitors. Dell, likewise, has held
cost leadership for the better part of the last two
decades.
Differentiate or Die?
If your company's products are not differentiated

in ways that really matter to your customers, your
products may not necessarily die - but they
certainly will be commoditized over time and at
best will end up as also-ran products.
Identify areas where your products can have
strong, sustainable competitive differentiation
and execute to make that the reality. This is one
of the biggest values you can add to your 29
company.
Competitive Marketing Strategy
Marketing strategy is a process that can allow an

organization to concentrate its limited resources on
the greatest opportunities to increase sales and
achieve a sustainable competitive advantage
marketing strategies are developed as multi-year
plans, with a tactical plan detailing specific actions to
be accomplished in the current year
Marketing strategies are dynamic and interactive. They
are partially planned and partially unplanned
involves careful scanning of the internal and external
environments, Internal environmental factors include
the marketing mix, plus performance analysis and
strategic constraints
External environmental factors include customer
analysis, competitor analysis, target market analysis,
as well as evaluation of any elements of the
technological, economic, cultural or political/legal
environment likely to impact success
Once a thorough environmental scan is complete,
a strategic plan can be constructed to identify business
alternatives, establish challenging goals, determine
the optimal marketing mix to attain these goals, and
detail implementation.
A final step in developing a marketing strategy is to
create a plan to monitor progress
Typically there are four types of

market dominance strategies:
Leader
Challenger
Follower
Nicher
generic strategy framework (porter

1984)
Product differentiation (broad)
Cost leadership (broad)
Market segmentation (narrow)
Innovation strategies
Pioneers
Close followers
Late followers
Growth strategies
Horizontal integration
Vertical integration
Diversification
Intensification
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New product Development
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Product life Cycle

Discovery
unspoiled" destinations
Explorers
Launch
incoming tourists increases
host community responds
Stagnation
host community responds
quality of tourist services
falls
demand levels off
environmental
degradation
reached 'maturity
Decline
Falling profits
foreign-owned businesses
withdrawing
community is left to "pick
up the pieces"
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Customer Satisfaction
Customer satisfaction, a
term
frequently
used
in marketing, is a measure
of how products and
services supplied by a
company meet or surpass
customer expectation.
Customer satisfaction is
defined as "the number of
customers, or percentage
of total customers, whose
reported experience with a
firm, its products, or its
services (ratings) exceeds
specified
satisfaction
goals."
Customer Satisfaction in 7
Steps
1. ENCOURAGE FACE-TO-FACE
DEALINGS
2. RESPOND TO MESSAGES
PROMPTLY & KEEP YOUR
CLIENTS INFORMED
3. BE FRIENDLY AND
APPROACHABLE
4. HAVE A CLEARLY-DEFINED
CUSTOMER SERVICE POLICY
5. ATTENTION TO DETAIL
(ALSO KNOWN AS THE LITTLE
NICETIES)
6. ANTICIPATE YOUR CLIENTS
NEEDS & GO OUT OF YOUR
WAY TO HELP THEM OUT
7. HONOUR YOUR PROMISES
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Customer Retention
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Strategies in Internal & External Marketing

Internal factor , these involve
(5M's)
Management
Manpower
machine
material and
money.
External factors , these include

Macro factor
micro factors.
Macro factors are the one

that affect the organization
indirectly, these are (pestel)
Political
enviroment
socia-cultural
technological and
Ecological
leagal
while micro factors are those

which affect the organization
directly it involve
customers
competitors
suppliers and
public
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Interactive and Relationship Marketing

Interactive Marketing refers to the
evolving trend
in marketing whereby marketing
has moved from a transactionbased effort to a conversation.
the ability to address an individual
and the ability to gather and
remember the response of that
individual leading to the ability to
address the individual once more in
a way that takes into account his or
her unique response(Deighton
1996).
Interactive marketing is not
synonymous with online marketing,
although interactive marketing
processes are facilitated by internet
technology
Relationship marketing was first

defined as a form of marketing
developed from direct response
marketing campaigns which
emphasizes customer retention and
satisfaction, rather than a dominant
focus on sales transactions.
it recognizes the long term value of
customer relationships and extends
communication beyond intrusive
advertising and sales promotional
messages
Relationship marketing extends to
include inbound marketing efforts,
(a combination of search
optimization and strategic content),
PR, social media and application
development.
Relationship marketing is a broadly
recognized, widely-implemented
strategy for managing and nurturing
a companys interactions with
clients and sales prospects.
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Product & Product Strategies

The product is defined as A PRODUCT MARKETING
STRATEGY
a "thing produced by
Decide on new
labor or effort" or the
revenue growth and profits
"result of an act or a
Decide on
process
new product development.
Tangible and Intangible
Decide on price.
Tourism Product Multi
Decide on sales
faceted
force, distribution, service.
Product design
Product quality
Product features
Product branding
Decide on
customer psychological
factors, not features and
benefits.
Decide on
product promotion.
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Product Line
Product Mix
A company/organization
creates a group of
products, which has in
common most of their
main characteristics.
A good way for a company
to try to expand its
business is by adding to
its existing product line.
This is because people are
more likely to purchase
products from brands
with which they are
already familiar
Product mix-an
organization creates many
products and sells them.
the product mix is
everything organization
sells.
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Branding & Rebranding
increase a product's perceived value

increase brand franchise and brand
equity
started at Procter & Gamble
A good brand name should:
be protected (or at least protectable)
under Trademark law.
be easy to pronounce.
be easy to remember.
be easy to recognize.
be easy to know
be easy to translate into all languages in
the markets where the brand will be
used.
attract attention.
suggest product benefits or suggest usage
(note the tradeoff with strong trademark
protection.)
suggest the company or product image
distinguish the product's positioning
relative to the competition.
be attractive.
stand out among a group of other brands.
Functions of brand
(For consumers) Identification of source of
product,
Assignment of responsibility to product
maker,
Risk reducer,
Search cost reducer,
Symbolic device,
Signal of quality,
Speak personality,
Deliver its value qualitatively and
quantitatively,
Live up to consumer expecatition.
it speaks itself looks are more important
(For Manufacturers)
Means of identification to simplify
handling and tracing,
Means of legally protecting unique
features,
Signal of quality level to satisfied
customers,
Means of endowing products with unique
associations,
Source of competitive advantage,
Source of financial returns
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Packing
defined as the wrapping material
around a consumer item that serves
to contain, identify, describe,
protect, display, promote, and
otherwise make the product
marketable and keep it clean.
Packaging is the outer wrapping of a
product.
It is the intended purpose of the
packaging to make a product readily
sellable as well as to protect it
against damage and prevent it from
deterioration while storing.
Furthermore the packaging is often
the most relevant element of a
trademark and conduces to
advertising or communication
Functional Requirements
1. Protection and
preservation
2. Containment
3. Communication
Types of packaging
Transport packing
Consumer Packing
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Pricing
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Pricing Strategies
Premium Pricing
used where a substantial competitive
advantage exists.
Such high prices are charge for luxuries such
as Cunard Cruises, Savoy Hotel rooms, and
Concorde flights
Economy Pricing
no frills low price
cost of marketing and manufacture are kept
at a minimum.
Supermarkets often have economy brands
for soups etc
to respond on an emotional, rather than

rational basis
Optional Product Pricing

Optional 'extras' increase the overall price
of the product or service
Captive Product Pricing

companies will charge a premium price
where the consumer is captured
Product Bundle Pricing

combine several products in the same
package. This also serves to move old
stock
Price Skimming
Charge a high price because you have a
substantial competitive advantage
However, the advantage is not sustainable
high price tends to attract new competitors
into the market, and the price inevitably falls
due to increased supply
Product Line Pricing

Where there is a range of product or
services the pricing reflect the benefits of
parts of the range
Penetration Pricing.
set artificially low in order to gain market
share.
Once this is achieved, the price is increased
Approaches
Psychological Pricing
Promotional Pricing
BOGOF (Buy One Get One Free)
Geographical Pricing
Value Pricing
external factors such as recession or
increased competition
44
Distribution Channels
Physical distribution (or place) is
one of the four elements of
the marketing mix
defined as a chain of intermediaries,
each passing the product down the
chain to the next organization, before
it finally reaches the consumer or
end-user.
Channels
Distributor, who sells to retailers,
Retailer (also
called dealer or reseller), who sells to
end customers
Advertisements typically used for
consumption goods
Channel decisions
Channel strategy
Gravity & Gravity
Push and Pull strategy
Product (or service)
Cost
Consumer location
Type of marketing channel

Intensive distribution - Where the
majority of resellers stock the
'product'
Selective distribution - This is the
normal pattern, 'suitable' resellers
stock the product.
Exclusive distribution - Only specially
selected resellers or authorized
dealers, are allowed to sell the
'product'.
Channel motivation
Monitoring and managing channels
45
Marketing Of Tourism Services
46
Airlines
the first marketing model, called
PESTE - Political, Economic,
Social, Technological and
Environmental
Airline Business and Marketing
Strategies - strategic families
(from cost leadership to
differentiation)
Product Analysis in Airline
Marketing - The product of an
airline is split up in several parts:
fleet and schedules, customer
service, controlling product
quality and even the air freight
product
No life cycle concept, daily basis
Pricing and Revenue
Management triangle of
marketing, sales, and pricing &
revenue management
distributing the product - Global

Distribution Systems (such as
Galileo, Sabre and Amadeus
Brands Management in Airline
Marketing
Relationship marketing maintaining and strengthening
relationships with existing
customers, not just about
frequent flyer programs, but also
about promises in
advertisements and about the
warm welcome that the existing
heavy user, main customer,
wants.
Airline Selling, Advertising and
Promotional Policies - provides
and analyses selling and sales
management, good airline
advertising and media relations
47
Hotels
Budget
Social Media
The true cost
The hotel sales office
How to use social media for meetings
GDS hotel bookings
Priceline
Hotel panel
Successful hotel sales plan
A revenue driven checklist for function space
management
48
Travel Agency Marketing

Travel agencies don't need
large marketing budgets - just
determination, a creative
mind and willingess to work
outside normal hours
Hold an open evening

Make your agency look inviting
Be community-spirited
Use the local press
Form partnerships
Motivate your staff
Tips to Travel Agents

"mine" data base
Increase your sales training and
prospecting skills
Be in the know
Be a member of a travel
consortium
have a working marketing plan
today is the first day of your
business
Identify pipers who have the
ability to bring in new business
customized client promotions
Be creative
Use PR as a tool to get the
positive word out about travel
49
Marketing Skills for Tourism

Creativity
make something out of nothing
Create the branding, create the
positioning, find the niche
develop the words, the visuals, the
images that make a brand
the brochure, the website, the
positioning statement
Keeping fresh and current so that I
can think of new ways of
approaching
industry partnerships and a new
sponsorship program
Innovative Product development
5 Stage process
Communication
Learn 3 languages mother tongue,
national & international
Polite speech, Good body language
Good personality
Courtesy calls
Letters
Fax
Email messages
Must allow visitor to speak
If language is barrier then show
standard pictures or symbols
Neat maintenance of travel
documents
Advertisement in target customers
language
Saturation
Preparation
Incubation
Illumination
verification
50
Self Motivation
Self motivated to work and
deliver concrete results
Motivation and morale are
closely related
If morale is high
motivation will be high to
give sterling performance
Motivation factors are
backgrounds, education,
family status, economic
condition
Person to person
treatment would develop
the organization
Team building
Socio cultural norms, if the team
changes this norms and values
effect is immediate and ever
lasting
Tasks are completed faster than
an individual does - Rome was
not built in a day, Rome was not
built by on neither
Team work leads to synergy
Team work gives status
recognition, reverence to all
Single person cannot deliver
results on his own
Groups become teams
Common working approach,
performance goals
Hard work, discipline, dedication
to purpose , willingness to adopt
new technologies
1. Thank a colleague
2. Compliment a colleague
3. Invite a colleague
51
Personality development
An individual's personality is an
aggregate conglomeration of
decisions we've made
throughout our lives (Bradshaw )
There are inherent natural,
genetic, and environmental
factors that contribute to the
development of our personality
"personality also colors our
values, beliefs, and expectations
... Hereditary factors that
contribute to personality
development do so as a result of
interactions with the particular
social environment in which
people live.
Freud believed that two basic

drivessex and aggression
motivate all our thoughts and
behaviours
Freud conceived the mind as
only having a fixed amount of
psychic energy . The outcome
of the interaction between the
id, ego and the superego,
determines our adult
personality.
The id allows us to get our
basic needs met
The ego's job is to meet the
needs of the id
superego inhibits the
biological instincts of the id
(resulting in a high level of
guilt)
52
Thank You
53

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Tourism Marketing

CCDD Create, Communicate,

R'tist@Tourism, Pondicherry University

R'tist@Tourism, Pondicherry University

SWOT analysis of Tourism

R'tist@Tourism, Pondicherry University

PEST analysis of Tourism

R'tist@Tourism, Pondicherry University

Core concepts in Marketing

state of felt deprivation

Needs become wants when

Needs and Wants Fulfilled

Target markets &

R'tist@Tourism, Pondicherry University

Marketing Management Philosophies

The risk with this concept is in

The Product Concept

R'tist@Tourism, Pondicherry University

The selling Concept

The Marketing Concept

Many companies claim to adopt

R'tist@Tourism, Pondicherry University

The Societal Marketing Concept

4) The societal concept

R'tist@Tourism, Pondicherry University

Economic importance of Marketing

marketing makes mass selling possible and

Higher standards of living

Marketing helps to identify and satisfy the

Large scale production

Foreign exchange earner

R'tist@Tourism, Pondicherry University

Tourism Demand Determinants

R'tist@Tourism, Pondicherry University

Tourism Marketing mix

R'tist@Tourism, Pondicherry University

Travel agents should

R'tist@Tourism, Pondicherry University

R'tist@Tourism, Pondicherry University

Tourism Demand Modeling and Forecasting

the explanatory variables for

R'tist@Tourism, Pondicherry University

Methods that rely on

Methods that rely on

Discrete Event Simulation

R'tist@Tourism, Pondicherry University

Managing capacity and Demand

R'tist@Tourism, Pondicherry University

no unique or best way to

(1) location of residence--instate, out-of-state, local;

It is often wiser to target smaller segments that

R'tist@Tourism, Pondicherry University

R'tist@Tourism, Pondicherry University

primary elements of positioning are:

R'tist@Tourism, Pondicherry University

R'tist@Tourism, Pondicherry University

Consumer buying behavior

Consumer behavior involves services and

three ways of analysing consumer buying

Economic models - These models are largely

General model for Consumer Behavior

R'tist@Tourism, Pondicherry University

Treacy & Wiersema say that there are

Provide unique solutions to customers