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.
R'tist@Tourism, Pondicherry University
• 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.
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• Characteristics
• Features
– intangible
– Consumption happens at
once
– consumer relies on pre-
purchase 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
• Communication
– 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
R'tist@Tourism, Pondicherry University
– 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.
– occur in three ways: external, internal and word-
of-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.
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 SWOT analysis of Tourism
• Strengths • Opportunities
– Vast geography with – Increased privatization.
forests, deserts, mountains &
beaches. – CWG 2010, Grandprix2011
– Varied culture. – Medical tourism.
– Many historical monuments. – Go-green initiative.
– Knowledge of English by – World-class hotels and airports
majority of local people.
– Efficient transport facilities. • Threats
– Terrorism.
• Weakness – Tensions with Pakistan.
– Lack of adequate infrastructure. – Better promotion by other
– Safety and security of foreign countries.
tourists. – Economic slowdown.
– Misconception about India by
foreigners
– Lack of maintenance of
monuments, forts etc.
– Many languages and dialects.
R'tist@Tourism, Pondicherry University 4
PEST analysis of Tourism

R'tist@Tourism, Pondicherry University 5

 Core concepts in Marketing
• Needs
– state of felt deprivation
including physical, social, and
individual needs.
R'tist@Tourism, Pondicherry University
• Wants
– 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, informatio
n, or experiences offered to a
market to satisfy a need or
want.
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• Target markets &
segmentation
– Differences in
needs, behavior, demogra
phics 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.
R'tist@Tourism, Pondicherry University
• 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.
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 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.
R'tist@Tourism, Pondicherry University
• 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.
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• 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.
R'tist@Tourism, Pondicherry University
• 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 customer-
driven philosophies.
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• The Societal Marketing Concept • 4) The societal concept
– The societal marketing calls upon marketers to
concept holds that the
organization should determine the balance three
needs, wants, and interests of considerations in setting
target markets. It should then their marketing policies:
deliver the desired satisfactions
more effectively and efficiently – a) Company profits.
than competitors in a way that
maintains or improves the – b) Customer wants.
consumer's and the society's well- – c) Society's
being. interests.
• 1) The societal marketing
concept is the newest of the • 5) It has became good
marketing philosophies. business to consider and
• 2) It questions whether the think of society's interests
pure marketing concept is
adequate given the wide variety when the organization
of societal problems and ills. makes marketing decisions.
• 3) According to the societal
marketing concept, the pure
marketing concept overlooks
possible conflicts between
short-run consumer wants and
long-run consumer welfare.
R'tist@Tourism, Pondicherry University 10
 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.
• Customer satisfaction
– Marketing helps to identify and satisfy the
needs and wants of consumers.
– Customer satisfaction has a important role in
marketing without which a business can’t be
successful.
• 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.
R'tist@Tourism, Pondicherry University
• Large scale production
– 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.
• Economic Development
– Marketing gives a boost to
transportation, banking, insurance, wareho
using 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.
• 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
in themselves complete – resistance factors
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 individual’s income will
not necessarily mean an
increase in travel demand.
May result in an increase in
quality product or
destination.
R'tist@Tourism, Pondicherry University 12
• 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

R'tist@Tourism, Pondicherry University 13

 Tourism Marketing mix
• 2. Pricing
• 8 P’s in Tourism
– Cost
– Product
– Demand
– Place
– Competition
– Price
– Duration
– Promotion
– Mode of transport
– People
– Peak/Non-peak season
– Process
– Destination
– Productivity & Quality
– Physical Evidence
• 1.Product
– Accommodation
– Attraction
– Transportation
– Recreation
– Shopping
– Restaurant

R'tist@Tourism, Pondicherry University 14

• 3. Promotion
– Different states highlighting about
their features.
E.g.
– 1. Kerala- ‘God’s own
country’Highlighting about
backwaters, ayurveda, elephants, h
ouseboats, 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.
R'tist@Tourism, Pondicherry University
• 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, ground-
staff 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 • 6. Process
provide best deals to
customers after
understanding their
requirements.
– Guides should have in-
depth 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.

R'tist@Tourism, Pondicherry University 16

• 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.

R'tist@Tourism, Pondicherry University 17

 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
R'tist@Tourism, Pondicherry University
• 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 Methods that rely on
qualitative assessment quantitative data
– Unaided judgment – Discrete Event Simulation
– Prediction market – Extrapolation
– Delphi technique – Quantitative analogies
– Game theory – Rule-based forecasting
– Judgmental bootstrapping – Neural networks
– Simulated interaction – Data mining
– Intentions and – Causal models
expectations surveys
– Segmentation
– Conjoint analysis

R'tist@Tourism, Pondicherry University 19

 Managing capacity and Demand

• Capacity Constraints • Demand Patterns

– Time, labor, equipment Charting demand patterns
and facilities Predictable cycles
– Optimal versus maximal Random demand
use of capacity fluctuations
Demand patterns by
market segment

R'tist@Tourism, Pondicherry University 20

 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.
R'tist@Tourism, Pondicherry University
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, s
nowmobiles;
– (4) important product
attributes---
price, quality, quantity; and
– (5) lifestyle attributes--- 21
activities, interests, opinions.
 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 dealR'tist@Tourism,
of competition.
Pondicherry University 22
R'tist@Tourism, Pondicherry University 23
 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

R'tist@Tourism, Pondicherry University 24

• 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.
R'tist@Tourism, Pondicherry University
• 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

R'tist@Tourism, Pondicherry University 26

 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.
R'tist@Tourism, Pondicherry University
• Consumer behavior involves services and
ideas as well as tangible products.
• main applications of consumer behavior
– marketing strategy—i.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 • AIUAPR MODEL
steps: – Awareness
– Problem recognition; – Interest
– Information Search – Understanding
– Evaluation of Alternative – Attitude
– Purchase decision – Purchase
– Purchase – Repeat purchase
– Post-purchase
behavior/buyer's remorse
(cognitive dissonance)
R'tist@Tourism, Pondicherry University 28
 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.
R'tist@Tourism, Pondicherry University
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 out-
innovating 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
• Typically there are four types of
the greatest opportunities to increase sales and
market dominance strategies:
achieve a sustainable competitive advantage – Leader
• marketing strategies are developed as multi-year – Challenger
plans, with a tactical plan detailing specific actions to – Follower
be accomplished in the current year – Nicher
• Marketing strategies are dynamic and interactive. They
are partially planned and partially unplanned
• generic strategy framework (porter
• involves careful scanning of the internal and external
1984)
environments, Internal environmental factors include – Product differentiation (broad)
the marketing mix, plus performance analysis and – Cost leadership (broad)
strategic constraints – Market segmentation (narrow)
• External environmental factors include customer • Innovation strategies
analysis, competitor analysis, target
market analysis, as well as evaluation of any elements
– Pioneers
of the technological, economic, cultural or – Close followers
political/legal environment likely to impact success – Late followers
• Once a thorough environmental scan is • Growth strategies
complete, a strategic plan can be constructed to – Horizontal integration
identify business alternatives, establish challenging
goals, determine the optimal marketing mix to attain – Vertical integration
these goals, and detail implementation. – Diversification
• A final step in developing a marketing strategy is to – Intensification
create a plan to monitor progress
R'tist@Tourism, Pondicherry University 30
New product Development

R'tist@Tourism, Pondicherry University 31

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"
R'tist@Tourism, Pondicherry University 32
 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."
R'tist@Tourism, Pondicherry University
• 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 CLIENT’S
NEEDS & GO OUT OF YOUR
WAY TO HELP THEM OUT
– 7. HONOUR YOUR PROMISES
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R'tist@Tourism, Pondicherry University 34
Customer Retention

R'tist@Tourism, Pondicherry University 35

 Strategies in Internal & External Marketing
Internal factor , these involve • Macro factors are the one
(5M's) that affect the organization
– Management indirectly, these are (pestel)
– Manpower – Political
– machine – enviroment
– material and – socia-cultural
– money. – technological and
External factors , these include – Ecological
– Macro factor – leagal
• micro factors. • while micro factors are those
which affect the organization
directly it involve
– customers
– competitors
– suppliers and
– public

R'tist@Tourism, Pondicherry University 36

 Interactive and Relationship Marketing
• Interactive Marketing refers to the
evolving trend
in marketing whereby marketing
has moved from a transaction-
based 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
R'tist@Tourism, Pondicherry University
• 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 company’s interactions with
clients and sales prospects.
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R'tist@Tourism, Pondicherry University 38
 Product & Product Strategies
• The product is defined as A PRODUCT MARKETING
a "thing produced by STRATEGY
labor or effort" or the – Decide on new
"result of an act or a revenue growth and profits
process“ – Decide on
new product development.
• Tangible and Intangible
– Decide on price.
• Tourism Product – Multi – Decide on sales
faceted force, distribution, service.
– Product design – Decide on
– Product quality customer psychological
– Product features factors, not features and
benefits.
– Product branding
– Decide on
product promotion.
R'tist@Tourism, Pondicherry University 39
• Product Line • Product Mix
– A company/organization – Product mix-an
creates a group of organization creates many
products, which has in products and sells them.
common most of their – the product mix is
main characteristics. everything organization
– A good way for a company sells.
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

R'tist@Tourism, Pondicherry University 40

 Branding & Rebranding
• increase a product's perceived value • Functions of brand
• increase brand franchise and brand – (For consumers) Identification of source of
equity product,
• started at Procter & Gamble – Assignment of responsibility to product
maker,
• A good brand name should: – Risk reducer,
– be protected (or at least protectable) – Search cost reducer,
under Trademark law.
– Symbolic device,
– be easy to pronounce.
– Signal of quality,
– be easy to remember.
– Speak personality,
– be easy to recognize.
– Deliver its value qualitatively and
– be easy to know quantitatively,
– be easy to translate into all languages in – Live up to consumer expecatition.
the markets where the brand will be
used. – it speaks itself looks are more important
– attract attention. • (For Manufacturers)
– suggest product benefits or suggest usage – Means of identification to simplify
(note the tradeoff with strong trademark handling and tracing,
protection.) – Means of legally protecting unique
– suggest the company or product image features,
– distinguish the product's positioning – Signal of quality level to satisfied
relative to the competition. customers,
– be attractive. – Means of endowing products with unique
– stand out among a group of other brands. associations,
– Source of competitive advantage,
– Source of financial returns

R'tist@Tourism, Pondicherry University 41

 Packing
• defined as the wrapping material • Functional Requirements
around a consumer item that serves – 1. Protection and
to preservation
contain, identify, describe, protect, d – 2. Containment
isplay, promote, and otherwise make – 3. Communication
the product marketable and keep it • Types of packaging
clean. – Transport packing
• Packaging is the outer wrapping of a – Consumer Packing
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

R'tist@Tourism, Pondicherry University 42

 Pricing

R'tist@Tourism, Pondicherry University 43

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
• Penetration Pricing.
– set artificially low in order to gain market
share.
– Once this is achieved, the price is increased
• Economy Pricing
– no frills low price
– cost of marketing and manufacture are kept
at a minimum.
– Supermarkets often have economy brands
for soups etc
• 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
Approaches
• Psychological Pricing
– to respond on an emotional, rather than
rational basis
• Product Line Pricing
– Where there is a range of product or
services the pricing reflect the benefits of
parts of the range
• 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
• Promotional Pricing
– BOGOF (Buy One Get One Free)
• Geographical Pricing
• Value Pricing
– external factors such as recession or
increased competition

R'tist@Tourism, Pondicherry University 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

R'tist@Tourism, Pondicherry University 45

Marketing Of Tourism Services

R'tist@Tourism, Pondicherry University 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
R'tist@Tourism, Pondicherry University
• 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
R'tist@Tourism, Pondicherry University 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
R'tist@Tourism, Pondicherry University
• 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
– Saturation
– Preparation
– Incubation
– Illumination
– verification
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 customer’s
language

R'tist@Tourism, Pondicherry University 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, fa
mily status, economic
condition
– Person to person
treatment would develop
the organization
R'tist@Tourism, Pondicherry University
• 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.“
R'tist@Tourism, Pondicherry University
• Freud believed that two basic
drives—sex 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…

R'tist@Tourism, Pondicherry University 53