AMIT(4,5,10,11,12,14,15,16,17,18,19,20,21,22,23,27,28,33,34

1. Production era: In the production era stage, the management focus was on increasing efficiency
of production and supply of products to the markets with the emphasis on consistently reduc

2. Sales era: The second was the sales era stage. Under this stage, the organisations attempted to
Market influence demand by adopting more effective means of selling and increasing their
knowledge about different markets to improve their sales techniques.

3. Marketing era : The earlier two stages got reversed in the third stage i.e. the marketing era. The
crucial shift came when organisations started to produce what they could sell rather than
attempting to sell what they produced. This was the consumer-oriented approach. The
customers' needs, wants, tastes and satisfaction were recognised as the key factors in planning
and designing of the product which the organisation was to produce and offer.

MARKET SEGMENTATION
Why Segment the Tourism Market?
Every tourist being different, the tourism industry possibly is not capable of satisfying every individual’s need. This is the foundation
of segmenting the total market.

While all tourists are different, some of them are similar to each other. Marketing force of a tourism business group the tourists into
various segments that categorize the similar as well as distinct members. Market segmentation can be applicable to any of the
tourism supply components and provides benefits as given below −

 It helps to understand specific demands of the consumers.

 It helps to allocate marketing expenses efficiently.
 It helps to create effective marketing strategies to target specific market segment.

Demographic Market Segmentation Examples 

Demographic
This segmentation is done by considering the tourist’s gender, age, marital status, ethnicity, occupation, religion, income, education, and
family members.

 Age
 Gender
 Income
 Location
 Family Situation
 Annual Income
 Education
 Ethnicity
Where the above examples are helpful for segmenting B2C audiences, a business might
use the following to classify a B2B audience:

 Company size
 Industry
 Job function

Because demographic information is statistical and factual, it is usually relatively easy to

uncover using various sites for market research .

A simple example of B2C demographic segmentation could be a vehicle manufacturer

that sells a luxury car brand (ex. Maserati). This company would likely target an
audience that has a higher income.

Another B2B example might be a brand that sells an enterprise marketing platform. This
brand would likely target marketing managers at larger companies (ex. 500+ employees)
who have the ability to make purchase decisions for their teams.

Psychographic Segmentation
Psychographic
The marketing people do this segmentation by taking into account the psyche of the tourists. They gather information about the
tourists’ interests, attitudes, their way of living life, opinions, and overall personality.

Psychographic segmentation  categorizes audiences and customers by factors that relate

to their personalities and characteristics.

Psychographic Market Segmentation Examples 

 Personality traits
 Values
  Attitudes
 Interests
 Lifestyles
 Psychological influences
 Subconscious and conscious beliefs
 Motivations
 Priorities

Psychographic segmentation factors are slightly more difficult to identify than

demographics because they are subjective. They are not data-focused and require
research to uncover and understand.

For example, the luxury car brand may choose to focus on customers who value quality
and status. While the B2B enterprise marketing platform may target marketing managers
who are motivated to increase productivity and show value to their executive team.

Related:  4 types of market research to fuel your marketing strategies

Behavioral Segmentation
While demographic and psychographic segmentation focus on who a customer
is, behavioral segmentation  focuses on how the customer acts.

Behavioral Market Segmentation Examples 

 Purchasing habits
 Spending habits
 User status
 Brand interactions

Behavioral segmentation requires you to know about your customer’s actions. These
activities may relate to how a customer interacts with your brand or to other activities
that happen away from your brand.
A B2C example in this segment may be the luxury car brand choosing to target
customers who have purchased a high-end vehicle in the past three years. The B2B
marketing platform may focus on leads who have signed up for one of their free
webinars.

Geographic Segmentation
Geographic
Geographic market segmentation is done considering the factors such as tourists’ place of origin. This factor is important as the
tourists belonging to different places are brought up with different cultures and show different traits of behavior. It is the most basic
type of segmentation.

Geographic segmentation is the simplest type of market segmentation. It categorizes

customers based on geographic borders.

Geographic Market Segmentation Examples   

 ZIP code
 City
 Country
 Radius around a certain location
 Climate
 Urban or rural

Geographic segmentation can refer to a defined geographic boundary (such as a city or

ZIP code) or type of area (such as the size of city or type of climate).

An example of geographic segmentation may be the luxury car company choosing to

target customers who live in warm climates where vehicles don’t need to be equipped
for snowy weather. The marketing platform might focus their marketing efforts around
urban, city centers where their target customer is likely to work.
Stages of Developing and Planning a Tour Package

1. Research – Destination and Market:

The main object of tour packaging research is to analyse and understand the key elements associated with a particular tourist
market and destination. Generally, many tour operators find that it is very difficult to arrange all things for all people.

2. Tour Itinerary Development:

Once the study as regards the destination and the target market has been conducted, the second phase in the developmental

process involves working out an effective tour itinerary.It is based on two things – for new tour operators to research on both

destination and tour ingredients and for established ones to review the questionnaires completed by previous tour participants.

3. Negotiations with Tourism Suppliers/Vendors:

Once the itinerary is finalized, the next step is to negotiate with prospective vendors. The tour planner works with many vendors

depending upon the nature and size of the tour. The major ones are airlines, lodging companies, transport operators, car rentals,

ground operators, sightseeing vendors and so forth.

4. Costing of a Package Tour:

The concept of ‘tour cost’ is focal to understanding the connotation and practices of tour management in determining the monetary

value of a tour package. In simple terms, ‘cost’ means the total expenses incurred to change the shape of individual ingredients into

a tour package.

5. Financial Evaluation and Pricing:

After costing of a package tour, tour planner determines exchange rates, estimates future selling prices and finalizes tour prices.

The tour planner has to finalize price structure some ten months or more before the departure of a tour.

6. Administrative Staff:
Since the tour operation business is seasonal in nature, it requires extra personnel to meet the increasing needs. Tour operators are

usually clear about what they want while selecting administrative staff to perform the extra activities, may be at a particular

destination or at a resort.

7. Marketing of a Tour Package:

The tour operators strategic position between the various vendors encompassing airlines, transport operators, hotels, etc. and the

ability to combine the various elements of travel industry into relatively affordable and standardized tour package, have emerged as

the key manipulators of tourism industry.

8. Developing a Tour Marketing Plan:
Tour marketing plan is centred on organizational objectives. It is important to have a clear understanding of what the tour operator

desires to achieve through marketing plan.

In fact, a tour company needs to understand both its product and its market before developing a marketing plan. For many tour

companies, budget is the first step in the process of developing a tour marketing plan.

9. Marketing Inbound and Outbound Tours:

Generally, the international tour marketing is relatively more complex and difficult than domestic tour marketing. International tour

market is composed mainly of tours organized and planned in another country and operated in other countries.

10. Tour Operator’s Brochures:

The tour operator’s vital marketing tool is its tour brochure which contains comprehensive information to persuade and motivate

potential holiday makers to purchase tourist products/services.

11. Operation and Execution of a Tour:

The success of a tour operator depends on how efficiently it operates a tour. This phase is very crucial and has capacity to convert

promises into realities. So utmost care has to be taken to realize whatever had been promised in the package tour to offer to

tourists.

12. Post Tour Management:

This phase is relatively more crucial, which involves preparation of several reports and their evaluation. In fact, it reveals the

success of the tour, where tour planner should go for comparative analysis of the perceived goals, actual achievement and

assessing the tourist satisfaction level, the financial gains, and the effectiveness of the tour packages.

Types of Tourism Products

The tourism products are grouped into the following types −

Tourism Oriented Products (TOP)

These are the products and services created primarily for the tourists and also for the locals. These
products need a great share of investments in private sector. A few of them are −

 Accommodations; For example, Taj, ITC Hotels.

 Transportation; For example, Owning taxis, luxury buses, and boats.
 Retail Travel Agents
 Tour Operators
  Shopping Centers such as malls
 Cinema Theatres such as PVR
 Restaurants for Food and Beverages
 Tourism Information Centers
 Souvenirs Outlets
 Museums, Temples, Gardens, and Theme parks

Residents Oriented Products (ROP)

Here, the products and services are created mainly for the local residents staying at a particular tourist
destination. This category requires investment in public sectors more. Some of them are −

 Hospitals
 Public Parks
 Banks and ATMs
 Petrol Pumps
 Postal Service

Intangible Products of Tourism

They include −
 Bookings of accommodations, theatres, and at various sites.
 Tourists’ experience by visiting a destination, eating at a restaurant, or performing an activity.
 Tourists’ memory which is created by storing the details of events and experience on the tour.
The high degree of satisfaction or dissatisfaction is often stored as a long term memory.
 Transportation of tourists and their luggage from one place to another.

Tour Operator’s Products and Services

To realize the facilities and experience a tourism product offers, service is required by skilled and
qualified staff. The tour operator provides the following typical products and services −

Accommodations
The tourist destinations are equipped with different types of accommodations. They cater for tourists’
stay at the destination.
 Serviced − This type of accommodation is supported by skilled staff such as housekeepers,
drivers, guides, and cooks.
 Self-catering − This accommodation offers staying facilities but dining is required to be self-
catered. It is equipped with cooking, fuel and facility, some basic supplies such as
tea/coffee/sugar sachets, and a drinking water source.
 Hotels − Budget rooms to 7* hotels with classy amenities. The hotels contribute a major share of
imparting the experience to the tourists by providing best services and amenities.
 Guest Houses − Owned by business or government organizations, which can be used by its
staff and staff relatives.
 Camping Sites − They are open sites often located in areas of lush greenery. They are
equipped with clean place to pitch the personal tent, a water supply, and electric supply. Camp
sites have common rest rooms.
Reservations
The tour operator is responsible for making reservations for special events or activities the tourists are
interested in. At some places, the reservations are required to be done well in advance to avoid last
minute hassles. The events or activities such as a music concert or a theatre show, visiting a theme park
or a zoo, require people to secure seats or avail entry with prior reservations.

Guided Tours
The tour operators can arrange guided tours. Some qualified staff who can get access to the place,
explain the importance of the place, support, and guide the participants through the entire visit. The
guide is arranged to accompany the tour participants as a part of tour.

Transport Facilities
These facilities are for travelling from one place to another.
Surface Transport − It includes support of transport by road or water.
Air Transport − This is the support of transport by air, generally given for long distance travel. Many
times the tours include a halt of a couple of hours at transit destinations. Today the airports are built and
maintained as engaging tourist terminals by providing amenities such as spas, lounges, food joints, bars,
and book shops, retail shops for selling authentic local food, clothes, and souvenirs.
Today the Airlines are no more backstage when it comes to caring for their customers. They offer loyalty
programs to their customers under Frequent Flyer Program to encourage the customers to travel more
and accumulate points and redeem them against travel or rewards.

Dining Facilities
The tour operators can book accommodation that provides dining facilities or it can tie up with the local
restaurants which are ready to entertain groups. If the tour package is all inclusive, the tour operator
pays for breakfast, lunch, and dinner. If not, the tourists need to pay from their own pocket.

The tourists have ever changing demands which the tourism product is required to satisfy for the survival
of the tourism industry. Kotler defines a product as it is "anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects,
services, persons, places, organization, and ideas".
Medlik and Middleton (1973) term tourism products as “a bundle of activities, services, and benefits that
constitute the entire tourism experience.” This bundle consists of five components: destination
attractions, destination facilities, accessibility, images, and price.
Having been known what the tourism product is, let us see the elements of the tourism product and how
the tourism product is developed.

Brand Decisions In Tourism

1. Branding gets more bookings
When your tour and activity company looks polished and legitimate, guests will be more likely to book with you. That’s because professional
translates to trustworthy. With a unique brand voice and beautiful brand design, you’ll make your business stand out as the best option for a
safe and unforgettable experience.

2. Branding improves recognition

Without a doubt, your brand is the face of your business. Guests won’t just remember your name, but your logo as well. So whenever they
interact with you — whether it’s browsing your website, reading your emails, or seeing your Facebook ads — they’ll be able to recognize your
business instantly.

3. Branding makes you memorable

Many think of branding as a logo and a slogan. But it’s so much more than that. From start to finish, a brand is a visual, emotional, and
tangible experience that you create for your guests. Whn you get this right, guests will remember for a long time — not just a couple of weeks
after the tour or activity. And those that think of you will be loyal to you.

4. Branding increases your value

Brand equity is the value of your brand name. Having a well-known brand name will help establish your company as a leader in your niche
and give your business a boost for further expansion — like opening up a tour office in another location. Since brand equity is all about brand
recognition, you can increase your value by building a stronger brand and delivering consistent exposure — which brings us to the next
section

Tourism Marketing In Indian Perspective

Indian tourism sector has vast potential that needs to be exploited in a systematic and

pragmatic manner. There are several dimensions to the development of tourism,

which are almost similar to any region or country slightly varying depending upon the

local culture and customs.

Infrastructure: Presently India needs to emphasize on creating the required

infrastructure for tourism sector. The concerted effort shall focus on the access

facilities to various destinations by road, rail, air and sea. The completion

Quadrangle National Highway has helped boost the access by roads to the four metros

and enroute helped provide the much needed fillip to the upcoming cities and towns.
The Government of India (GoI) has stepped up the plan allocation and invited the

participation of state governments to enhance the road coverage of respective states.

The access by Air is also not very encouraging due to limited number of International

airports and domestic airports. The Airports Authority of India (AAI) with the support

from GoI has embarked on a mission to develop new airports and upgrade the existing

Airports to increase the capacity to facilitate landing of all types of aircraft. This is

done through Public Private Partnership (PPP).

Indian rail is considered as one of the largest networks in the World, however,

plagued by some inherent limitations such as technology up-gradation and lack of

coverage. Indian railways has started the modernization process of all important

stations and changing of rakes that allow high speed trains. Indian Rail Catering and

Tourism Corporation (IRCTC) has attained much success on its schemes of Hill

Steam Trains (E.g., Darjeeling Himalayan Railway Train) and Heritage Trains (Palace

on Wheels, Deccan Odyssey, Fairy Queen to name a few). It has also started Tourist

Bureaus at all major stations to provide information to the visitor. The access by sea is

still at a very nascent stage in India and much ground work is needed in this regard.

Accommodation: Indian hospitality industry is considered as one of the

fastest growing sector in the world. Many international chains have already started

their operations and are in the process of enhancing their room capacities. Various

budget and mid-segment hotel chains have also started their operations. However, the

striking feature of Indian hospitality sector is while some areas are have all the variety

of accommodation facilities to suit the needs of the tourist some are way behind and

lack basic facilities.

Service Providers: The service providers to tourists such as travel agents and
tour operators are much unorganized in India. There are almost 10,000 agencies

rendering service to tourists in deferent capacities. Out of which around 1500 are

registered with the trade associations.

Manpower Planning: One of the major setbacks of tourism industry is the

non availability of qualified personnel to cater to the needs of the sector. Employees

with different skill set are required to fill travel, hospitality and guide related services.