TOURISM & HOSPITALITY MARKETING Tourism Marketing – is defined by Philip Kotler as a social process
REVIEWER by which individual and group obtain what they need and want through
Module 1 – Introduction to Marketing
Marketing – involves the interaction interrelationship among
consumers and producers of goods and services through which ideas,
products and services and values created and exchanged for the
mutual benefit of both groups.
Core Concepts of Marketing
1. Needs – state of felt deprivation including physical, social, and
individual needs. This pertains also to basic human
requirement.
2. Wants – it became a want when they are directed to specific
objective that might satisfy their needs.
3. Demand – wants + buying power
creating and exchanging products and values with others.
7P’s of Marketing
1. Product – refers to the main item/services
2. Price – refers to the value of the product
3. Promotion – refers to how to disseminate or persuade the
product to the market
4. Place – the locale and distribution of the product
5. People – the team/people involved in the delivery of the
product
6. Physical Evidence – physical content or paraphernalia
7. Process – refers to products delivery/action
Marketing Environmental Factors – are completely the beyond of
the control of the marketing people. External Environment that
shapes the way business is done.
A. Organizational Priorities and Goals
B. Competition – Direct Competition, Indirect Competition,
Substitute Services
C. Government Laws and Regulation
D. Economy
E. Technology
F. Society and Culture
Module 2 – Marketing Hospitality and Tourism Services
Service Marketing – a branch of marketing based on a concept of the
recognition of the uniqueness of all services. It is specifically applies
to services industries.
Services – are activities, benefits, or satisfaction which are offered for
sale or provided connection with sale of goods.
Components of Services

1. Physical Product – involve with physical transfer of

ownership
2. Service Product – product which can offer to another party
which is essentially intangible in nature.
3. Service Delivery – one of the important component of service
which pertains to the importance to the customers overall
perception about the quality of service.
4. Service Environment – represents the physical back drop
that surrounds the service.

Strategic marketing is a method through which an organization

differentiates itself from its competition by focusing on its
strengths to provide better service and value to its customers.
Module 3 – Market Segmentation

Market – is a set of actual and potential buyers. These buyers share

a particular need or what can be satisfied through exchange
relationship.

Three Procedures on how to Capture the Market

1. Market Segmentation – the process of dividing a large

number of customer based on their common characteristics
a. Market Segment – is an identifiable group of an
overall market whose members have some common
characteristics and to which a specific service
appeals.
b. Target Market – means a market segment selected
Strategy analysis pertains to analyzing the strengths of business by a hospitality and tourism organization for
positioning; that understands the external and internal factors. Several marketing attention.
frameworks or tools can be used.
Characteristics of Market Segment

1. Identifiable
2. Cohesive
 3. Measurable
4. Accessible
5. Substantial
6. Actionable
Variables of Segmentation
1. Geographic – the most widely used segmentation
characteristics. It means dividing the market into group of
customers who share same geographic location.
2. Demographic – it is based from population statistics that is
primarily generated through census. It means segmenting the
market based on sex, income, occupation, religion, race etc.
3. Psychographic – it divides the consumer based on different
psychographic profile such as social class, lifestyle, and
personality characteristics.
4. Behavioural – refers to dividing the consumer based on their
knowledge, attitude, used of response on the product or
service. This pertains to variables such as special occasion,
benefits sought, user status, user rate, loyalty status, and
buyer readiness.
B. Market Targeting – it refers to evaluating each segment’s
attractiveness and selecting one or more of these market segments in
which to operate one’s business.
Market Coverage Strategies
1. Undifferentiated Marketing – a company ignores market
segmentation and goes after the entire market with only one
market offer.
2. Differentiated Marketing – approaches by market by
targeting several market segments using separate offers per
segment.
3. Concentrated Marketing – practiced by companies with
limited resources. It pertains to getting big share of a small
market rather than a small share of a large market.
C. Market Positioning – It refers to developing competitive
position for the product and an appropriate marketing mix.
Positioning wants product position in their consciousness of its
prospective customer.
The goal of Positioning is to identify the product’s unique
characteristics in a way that will differentiate in in the marketplace.
There are three ways on how to do the positioning: Unique Selling
Proposition, Competitive Advantage, and Top of Mind.
A. Unique Selling Proposition – is the term used to identify
what makes the product or services different from other.
B. Competitive Advantage – is the product advantage over
the competitors which is gained by offering greater value either by
offering lower prices or providing more benefits to justify higher
prices.
C. Top of Mind – is the highest level of recall that a brand
receives. It means that the brand occupies the top spot in a
consumer’s mind.
Module 4 – Consumer Behaviour
Consumer – any individual who purchases goods and services from
the market for his/her end-use called consumer.
Customer Behaviour - is the process and activities of people engage
in when searching for, selecting, purchasing, using, evaluating, and
disposing products and services to satisfy their usual needs and
desires.
Factors that Influence Consumer Behaviour
 1. Motivation – these are inner drives that make people take a
specific plan of action to satisfy their needs.
2. Culture – pertains to collective mental programming of the Components of Tourism Product
human mind which distinguishes one group of people from 1. Destination Attractions – is a collection of attraction, which
another. is the element of tourism product that pulls the people to the
3. Age and Gender – likes and preference of the customer destination.
usually depends on age. Gender plays also important role in 2. Destination Facilities – a wide range of tourism facilities
consumer selection. within the destination that will help the tourist enjoy the
4. Social Class – pertains to one’s position in the society and is destination attractions.
determined by factors such as income, wealth, education, 3. Accessibility – infrastructure and transportation services
occupation, etc. 4. Image – central to the product is its image.
5. Lifestyle – is person’s pattern of living expressed in one’s 5. Pricing – is an important component of the tourism product.
activities, interest, and opinions.
6. Life cycle – refers to the stages an individual goes through in
their lifetime.
Product Types
7. Reference Groups – are known to be set of people who have
direct or indirect influence on other people’s attitude or 1. Core Product – are the products that consumer is really
behaviour. buying.
8. Personality and Self Concept – refers to distinguishing 2. Facilitating Products – are good and services that must be
psychological characteristics that lead to relatively consistent present for the guest to enjoy and use the core product.
and enduring responses to the environment. 3. Supporting Products – add value to the core product and
help differentiate. These are extra offered product/services.
4. Augmented Products – are factors that help consumer
consider the product over other products.
Module 6 – Tourism Product
EXAMPLE
Key Players in the Tourism Industry
Hotel Industry
1. Private and Non-Profit Sectors
Core Product – Room
2. Public Sector Services
Facilitating Product – Check-in and Check-out
3. Suppliers
Supporting Product – business center, room service
a. Transportation Industry
Augmented Product – interaction with service provider and
b. Accommodation Sectors
customers.
c. Food and Beverage Sectors
d. Attractions – natural and man made
e. Events and Conferences
4. Travel Intermediaries
5. Tourist – the center of tourism industry
PRODUCT LIFE CYCLE
1. Development Stage – begins with idea of the new product that
could possibly satisfy an existing need or want. This is done through
series of market research, feasibility, and marketing plan.
2. Introduction Stage – The product was introduced already in the
market. Characterized by slow sales growth and aggregate marketing
strategy to create awareness and penetration.
3. Growth Stage – The period of rapid acceptance and increasing
profits. There is a Return of Investment
4. Maturity Stage – The period where in the product sales are flat or
minimal. The point where in the product becomes popular with its
target market. Three procedures are done in this portion:
Market Modification – comes with Innovation
Product Modification – comes with product enhancement
Marketing Mix Modification – comes with promotion (50%
discount, Buy 1, Take 1)
5. Decline Stage – The period where in the sales fall off and profit
drop quickly. Phase-out the product in the market already which
means product will be shut down.
DESTINATION LIFE CYCLE
1. Exploration Stage - Characterized by a few adventurous tourist,
close interaction with locals, minimal effect on social, cultural, and
physical environments and local facilities are used.
2. Involvement Stage - Characterized by an increase tourist arrivals,
interaction with locals still high, some changes in social, cultural, and
physical environments and local facilities used.
3. Development Stage - Tourist arrivals are fast increasing, Loss of
local control, Rise of foreign own facilities, Migrant labourers,
Promotion of artificial attractions
4. Consolidation Stage - Tourism has become an economic factor,
Heavy advertising and promotion, Facilities become to deteriorate and
growth rates decline
5. Stagnation - Carrying capacity of the destination has been reached
or exceeded, Characterized by social, environmental, and economic
problems, Inflow of tourists comes from repeat visits and conventions.
6. Decline Stage - Characterized by a downward rate of tourist
arrivals. It can be mitigated depending on the management and
marketing efforts to uplift the destination
PRODUCT DEVELOPMENT

•A systematic way of coming up with new ideas.

1. Idea Generation •Sources of new product include the external
environment, internal sources, customers,
competitors, distributors and suppliers.

•This leaves you with so many new ideas that

2. Idea Screening need to be screened to see which ones match the
company’s objectives and can be developed
further.
•New screening committee
•Product that pass through the screening can now
3. Concept Development and be developed further.
Testing •The customers should be consulted on which
product concept are actually helpful to them.

•A new product should be developed to match the

4. Marketing Strategy company’s image and resources with marketing
strategy appropriate with it.

•The business analysis stage looks more deeply

5. Business Analysis into how much revenue the product could
generate, what the cost will be, how much
market share the product may achieve.

•Prototype is presented to its target market for

6. Prototype Creation comments on which adjustments and
enhancement should be done.

•The product is then launched in a small

7. Test Marketing geographical area to test the components of
marketing mix.
•There are certain adjustment depending on the
output.
•This is when the product is fully launched to the
8. Commercialization entire target market either nationally or
internationally.

•This is the stage wherein the company will know

9. Evaluation whether the product has gained market
acceptance, hence, it production will continued
or stopped.