Hospitality and Tourism Marketing Module 4 PDF

Santa Isabel College of Manila
210 TAFT AVENUE, MANILA, PHILIPPINES

TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
www.santaisabel.edu.ph
MODULE IN TOURISM AND HOSPITALITY MARKETING
LEARNING MODULE
in
Tourism and Hospitality Marketing
BSHM – Third Year

DR. ANTONINO F. ALEJANDRO
Professor
afa/SICM2020
1|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
VISION-MISSION STATEMENTS
SANTA ISABEL COLLEGE OF MANILA is an audacious Christ-Centered educational institution

committed to empowering communities into inner-directed Vincentian leaders who are
advocates of persons in poverty situations and of God’s creation.
OUR CORE VALUES
 COMMITMENT TO VINCENTIAN EXCELLENCE

Dedication to the highest ideals in the continuing pursuit of quality Christian and Vincentian
education.
 RESPECT FOR HUMAN DIGNITY
Reverence for every person, and concern for the promotion of life, human rights, and total
human development.
 RESPECT FOR GOD’S CREATION
Reverence and care for God’s creation and promotion for ecological sustainability.
 ADVOCACY FOR PERSONS WHO ARE POOR
Love of and preference for the poor as to orient the entire community in favor of the person
in poverty situations; readily working for truth, justice and peace at all times; consistently
living simple and transparent lives in relationships and chosen careers; observing social;
responsibility and accountability in the classroom, in the community and the workplace;
exuding a passion that engenders caring, compassionate life witnesses in human
communities, among fellow citizens and within the church.
 SIMPLICITY
Love of, and living out of truth and freedom, honesty and transparency in relationships, living
a modest and simple lifestyle in solidarity with the less privileged.
OUR ENABLING VALUES
 COMPASSIONATE SERVICE
Sensitivity to the needs of others and the zealous response of caring and sharing for persons
who are poor and God’s creation, out of a gentle and humble heart.
 CO –RESPONSIBILITY
Spirit of stewardship, dialogue, partnership, participation, teamwork, and collaboration in all
endeavors for the good of humanity and the whole creation towards sustainable
development.
 SOCIAL COMMITMENT
Audacious love for the country and Mother Earth; dedication to the transformation of
communities and unjust social structures, through changed personal attitudes and peaceful,
non- violent means.
 SOLIDARITY
Sense of communion with persons and families, regardless of gender, race, color, creed, and
social-economic status; and a firm determination to promote the common good.
afa/SICM2020
2|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Preface
Alongside the growth of the tourism industry, hospitality and tourism education has expanded
rapidly over the last few decades, reflecting the growing recognition of the entire tourism value chain as
one of the world’s most significant economic, social and environmental forces that shape the world.
Marketing is a subject of vital concern in tourism and hospitality because it is the principal management
influence that can be brought to bear on the size and behavior of the local and international markets.
The content of this module – Hospitality and Tourism Marketing, should enhance students’
understanding of the dynamic nature of the tourism and hospitality industry. Besides, the module
includes lessons, activities, and case studies to deepen students’ understanding and help them to apply
theories and concepts. Furthermore, students should be able to develop inquiry, problem-solving, and
decision-making skills through these activities related to marketing problems. As a result of this Module,
a student shall clearly explain marketing concepts and theories, analyzing the marketing environment,
and formulate marketing strategies, and shows how they apply to real-life situations.
All comments and suggestions related to the module may be sent to:
Copyright @ 2020
Dr. Antonino F. Alejandro
c/o College of Hospitality Management
210 Taft Avenue, Manila
August 2020
NO PART OF THIS MODULE MAY BE REPRODUCED IN ANY FORM, BY PHOTOCOPYING,

MIMEOGRAPHING, OR ANY OTHER MEANS WITHOUT THE WRITTEN PERMISSION OF THE COPYRIGHT
OWNERS AND THE PUBLISHER.
afa/SICM2020
3|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
COURSE CODE: HTM 302
COURSE TITLE: TOURISM AND HOSPITALITY MARKETING
COURSE DESCRIPTION:
The course is designed to build on the evolution of modern management toward a marketing-
oriented view for business within the hospitality and tourism industry; stressing the underlying principle
of the “marketing concept”; and integrating concepts concerning consumer needs, marketing
information, selling, product development, pricing, distribution (place), and promotions and destination
marketing.
COURSE OBJECTIVES:
1. Explain what marketing is all about, knowing the basic concepts, philosophies as applied in
the Hospitality and Tourism Industry;
2. Explain the importance of marketing in hospitality and tourism business and strategic
planning;
3. Know the various internal and external environmental forces influencing the hospitality and
tourism industry;
4. Look in the various factors that influence the purchase decision, motivation, social class
structure, and the buyer’s decision process;
5. Describe the market segmentation process, target marketing, and positioning;
6. Understand hospitality and tourism products, its stages, product development, life cycle, and
different product strategies;
7. Identify various pricing decisions, strategies in hospitality and tourism;
8. Know the hospitality and tourism channels of distributions and the levels of distributions
channels;
9. Understand the promotional mix strategies as applied in hospitality and tourism businesses,
communication channels, and various mediums in promotion;
10. Create a marketing plan for any hospitality or tourism establishment.
afa/SICM2020
4|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
MODULE 4
MANAGING, EVALUATING AND CONTROLLING HOSPITALITY AND
TOURISM MARKETING EFFORTS
LESSON 10 – DISTRIBUTION CHANNELS

Week 13 - 3 hours both Synchronous and Asynchronous
LESSON 11 & 12 – PROMOTIONAL MIX STRATEGIES
LESSON 13 & 14 – DESTINATION MARKETING & MARKETING PLAN
INTRODUCTION:
The word tourism has many definitions. The module uses the World Tourism Organization’s
(UNWTO) and United Nations Statistics Division’s (UNSTAT) definition of tourism: “a trip to the main
destination outside usual environment, for less than a year, for any main purpose (business, leisure, or
another personal purpose) other than to be employed by a resident entity in the country or place
visited” according to Kotler et.al. The module will use both word tourism and travel interchangeably.
Tourists travel to destinations, places with some form of actual or perceived boundary, such as the
physical boundary of an island, political boundaries, or even market-created boundaries. Destination
marketing is more challenging than marketing other products because a destination is a bundle of highly
diverse products, including geographic size, attractions, accommodation, food and beverage, and
entertainment. The complexity is augmented by limited control by DMOs and the number of public and
private stakeholders involved in delivering a unified brand and destination experience.
Destination marketing is more challenging than marketing other products because a destination
is a bundle of highly diverse products, including geographic size, attractions, accommodation, food and
beverage, and entertainment. The complexity is augmented by limited control by DMOs and the number
of public and private stakeholders involved in delivering a unified brand and destination experience.
In all aspect of the marketing practices and program, any establishments should do a marketing
plan that will provide a road map for all marketing activities of the firm for the next year; ensures that
marketing activities are in agreement with the corporate strategic plan; force marketing managers to
review and think through objectively all steps in the marketing process; assist in the budgeting process
to match resources with marketing objectives, and create a process to monitor actual against expected
results.
afa/SICM2020
5|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

The development of a marketing plan is a rigorous process and cannot be accomplished in a few
hours. Instead, it is best to set aside one or more days to develop next year’s plan. Many marketing
managers find it best to leave the office along with their staff and all necessary data while writing the
plan. To be effective, a new marketing plan must be written each year. Marketing plans written for
periods longer than a year are generally not effective. At the same time, the annual marketing plan must
be written against a longer-term strategic plan that states what the company hopes to achieve, say,
three to five years down the road.
LEARNING OUTCOMES:
At the end of this module the student should be able to:
1. Understand the different marketing intermediaries available to the hospitality industry and the
benefits each of these intermediary offers.
2. Discuss channel behavior and organization, explaining corporate, contractual, and vertical
marketing systems, including franchising.
3. Identify factors to consider when choosing a business location.
4. Discuss the process and advantages of integrated marketing communications in communicating
customer value; direct marketing and discuss its benefits to customers and companies,
5. Define the five promotion tools and discuss the factors that must be considered in shaping the
overall promotion mix (advertising, sales promotion, public relation, and publicity),
6. Explain how companies have responded to the Internet and other powerful new technologies
with online marketing strategies,
7. Explain the role and nature of personal selling and the role of the sales force.
8. Discuss supervising salespeople, including directing, motivating, and evaluating performance.
9. Discuss the destination marketing system, and identify the components of tourism destination
competitiveness.
10. Explain tourism development strategies and different options for creating and investing in
tourism attractions.
11. Discuss the importance of destination image and branding and creating visitor experiences.
12. Understand why it is important to have a marketing plan and be able to explain the purpose of a
marketing plan.
13. Prepare a marketing plan following the process described in this module.
=======================================
afa/SICM2020
6|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
STUDENT
Marketing collateral referred primarily to print and/or online materials (such as brochures and
flyers), whereas today it entails a wide range of online and offline media, used both to support the sales
process and inform prospects about the products and services you offer. In simple terms, marketing
collateral is a set of different types of media used to help boost the sales of a particular product or
service. So, every piece of content, illustration, video, social media post, GIF, or meme can be
considered as a piece of marketing collateral.
Prepare digital marketing collateral of Santa Isabel College Manila / Chateau as a self-contained
material for the promotion of the school.
Submit the marketing materials before the final examination schedule.
=============================================
LESSON 10 – DISTRIBUTION CHANNELS
Learning Outcomes:
Upon completion of the topic the student will be able to:
1. Understand the different marketing intermediaries available to the hospitality industry and
the benefits each of these intermediary offers.
2. Discuss channel behavior and organization, explaining corporate, contractual, and vertical
marketing systems, including franchising.
3. 3Identify factors to consider when choosing a business location.
--------------------------------------------------------------------------
afa/SICM2020
7|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Introduction
Producing a product and making it available to buyers requires building relationships not just
with customers but also with key suppliers and resellers in the company’s supply chain. This supply
chain consists of “upstream” and “downstream” partners. Upstream from the company is the set of
firms that supply the raw materials, components, parts, information, finances, and expertise needed to
create a product or service. Marketers, however, have traditionally focused on the “downstream” side
of the supply chain—on the marketing channels (or distribution channels) that look toward the
customer. Downstream marketing channel partners, such as wholesalers and retailers, form a vital
connection between the firm and its customers. Both upstream and downstream partners may also be
part of other firms’ supply chains.
But it is the unique design of each company’s supply chain that enables it to deliver superior
value to customers. An individual firm’s success depends not only on how well it performs but also on
how well its entire supply chain and marketing channel compete with competitors’ channels. The term
supply chain may be too limited: It takes a make-and-sell view of the business. A better approach is a
value delivery network made up of the company, suppliers, distributors, and ultimately customers who
“partner” with each other to improve the performance of the entire system. Managing the participants
in an organization’s supply chain is both an important and complex task. After the Product, Place is
another important aspect of the marketing distribution channel. Once a product is made and is available
for sale to consumers, ‘where to sell’ becomes a critical decision. Imagine this: You may have the best
product in the world, but nobody can access the remote Place where the product is sold, you still would
not have any transaction. Thus, Place is where an organization selects to place its product and service so
that its target consumers can easily get hold of it. In the hospitality and tourism industries, one would
often hear the expression of “location, location, location” which is critical to the business’s success.
Nature and Importance of Distribution Systems

If the hotel property is the heart of a hotel company, distribution systems can be viewed as the
company’s circulatory system. Distribution systems provide a steady flow of customers. A well-managed
distribution system can make the difference between a market-share leader and a company struggling
for survival. Many hospitality companies are making greater use of the marketing channels available to
them. For example, Ritz-Carlton receives a significant share of business from travel agents because of
the aggressive development of this channel. Marriott entered a marketing alliance with New Otani
Hotels, giving Marriott exposure to Japanese travelers in North America. In return, New Otani gained
Marriott’s marketing expertise to help reach Americans traveling to Japan. Enterprise Rent-A-Car built
locations next to auto dealers and repair facilities, realizing these facilities create a demand for rental
cars. In today’s competitive environment, companies must develop increasingly complex distribution
networks.
afa/SICM2020
8|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Competition, a global marketplace, electronic distribution techniques, and a perishable product
have increased the importance of distribution. Innovative ways of approaching new and existing
markets are needed. Globalization has meant that many hotel companies must choose foreign partners
to help them market or distribute their products. Sheraton built an alliance with the Welcome Group in
India, which manages Sheraton Hotels on the Indian subcontinent. New electronic distribution methods
have resulted in the growth of international reservation systems such as Utell. Finally, the importance of
distribution has increased because hospitality products are perishable. RCI, a time-share exchange
company, uses its large membership base to negotiate special hotel rates for its members. The
agreement works well for both parties: Hotels have a chance to sell rooms during a soft period, and RCI
can offer its members a benefit.
There are many factors to consider when we determine the right location for our hotels,
restaurants, or theme parks. These factors include accessibility, traffic pattern, supporting
infrastructure, establishments (e.g. hospitals, schools, office buildings, residential, etc.) in the vicinity,
demographics, and income distribution of the people living in the area. If you choose to put your
restaurant next to an office building, a factory, a hospital, or even a school, you are guaranteed to have
businesses from these establishments. The company also needs to consider several direct competitors in
the radius where you want to draw your customers. For example, picture an exotic resort locates in a
remote area where there is no good infrastructure to support it. People cannot get to it easily, surely it
will not be as crowded as it wishes to attract. Moreover, the location does not mean that it has to be
stationary and permanent. Sometimes, the Place comes to your doorsteps, such are the cases of pizza or
KFC delivery. We can also expand the business beyond the Place (on-premise) by having the facility built
in to facilitate customers to do take-out orders. The company should remember that a good location at
the time when you open for business may not be a good location forever. It must constantly monitor
trends in the town planning to keep track of any changes that may affect the company.
Nature of Distribution Channels

A distribution channel is a set of independent organizations involved in the process of making a
product or service available to the consumer or business user. The development of a distribution system
starts with the selection of channel members. Once members are selected, the focus shifts to managing
the channel. Distribution networks in the hospitality industry consist of contractual agreements and
loosely organized alliances between independent organizations. In marketing, distribution systems are
traditionally used to move goods (tangible products) from the manufacturer to the consumer. In the
hospitality and travel industries, distribution systems are used to move the customer to the product: the
hotel, restaurant, cruise ship, or airplane.
The traditional distribution systems provide the framework for the development of hospitality
distribution networks. The products used by hospitality and travel companies come through distribution
channels; thus, it is important to understand their structure. Graduates of hospitality and tourism
afa/SICM2020
9|Page
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

programs often work for companies that distribute products. Graduates with restaurant experience may
find themselves working for a company that distributes food or beverages to restaurants. They may sell
food-service equipment or tabletop items to restaurants and hotels. Some graduates have taken jobs as
food brokers. The food broker works as an agent for the manufacturer, trying to create demand for a
product. For example, if Mrs. Smith’s pies develop a new no-bake pie for the food-service industry,
brokers representing Mrs. Smith’s pies would introduce the product to food-service managers they think
will be interested in using it. The hospitality and travel industries use billions of dollars’ worth of
products, all moved through distribution channels. These distribution channels create thousands of jobs.
Why Are Marketing Intermediaries Used?

The company does not have to maintain several display rooms and a large sales force in every
major city. Instead, a restaurant supply company displays to promote and makes personal sales calls.
The restaurant supply house sells hundreds of other items. Its large assortment makes it a convenient
supplier to the restaurant industry. The sales potential from its product assortment allows it to make
personal sales calls, send catalogs, and provide other support for the products that it represents. Selling
through wholesalers and retailers usually is much more efficient than direct sales. A restaurant manager
can make one call to a restaurant supply house and order a French knife, a dozen plates, a case of
candles, a dozen oyster forks, a case of wine glasses, and a case of cocktail napkins. A different
manufacturer produces each of these items, but they are all available through one distributor. To the
purchaser, this means access to small quantities of products because these become part of a large
order. This reduces inventory requirements, the number of deliveries, and several processed invoices.
Marketing intermediaries are channels of distribution that include travel agents, tour operators, travel
specialists, and the internet. Their purpose is to help the service provider complete the six different
functions listed earlier. Through the use of channel intermediaries, a company can expand the strength
of its distribution network and reach a much larger portion of its target market. As a result, the
combined marketing efforts of the entire distribution network will lead to an increase in the number of
customers using the service, thus boosting overall revenues.
Distribution Channel Functions

A distribution channel moves goods from producers to consumers. It overcomes the major time,
place, and possession gaps that separate goods and services from those who would use them. Members
of the marketing channel perform many key functions:
1. Information: Gathering and distributing marketing research and intelligence information
about the marketing environment
2. Promotion: Developing and spreading persuasive communications about an offer
3. Contact: Finding and communicating with prospective buyers
afa/SICM2020
10 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

4. Matching: Shaping and fitting the offer to the buyer’s needs, including such activities as
manufacturing, grading, assembling, and packaging
5. Negotiation: Agreeing on price and other terms of the offer so that ownership or possession
can be transferred
6. Physical distribution: Transporting and storing goods
7. Financing: Acquiring and using funds to cover the costs of channel work
8. Risk-taking: Assuming financial risks such as the inability to sell inventory at full margin.
The first five functions help complete transactions. The last three help fulfill the completed
transactions. All these functions have three things in common: They use scarce resources, they can often
be performed better through specialization, and they can be shifted among channel members. Shifting
functions to the intermediary may keep producer costs and prices low, but intermediaries must add a
charge to cover the cost of their work. To keep costs low, functions should be assigned to channel
members who can perform the most efficiently. For example, a cruise is an expensive purchase with
many options for the traveler. Travel representing all the major cruise lines answers questions about
cruise lines, itineraries, activities in the ports of call, and the many other questions a guest may have
about the selection of a cruise. Online travel agents specializing in cruise products allow customers to
browse through the different products and talk to an agent when they have questions or are ready to
purchase. The online travel agencies, as well as the agents with physical locations, provide a broad
distribution network for this infrequently purchased and complex product. This is why the majority of
cruise ship bookings are made through travel agents. Frequently purchased products such as hotel
rooms are less complex. Once people find a brand they like, they often prefer to book directly with the
brand.
Number of Channel Levels

Distribution channels can be described by the number of channel levels. Each layer that
performs some work in bringing the product and its ownership closer to the final buyer is a channel
level. Channel 1 is a direct marketing channel, has no intermediary level. It consists of a manufacturer
selling directly to consumers. For example, a restaurateur may buy produce directly from the grower at
a farmers’ market. Channel 2 contains one level. In consumer markets, this level is typically a retailer.
Channel 3 contains two levels. In consumer markets, these are typically a wholesaler and a retailer.
Smaller manufacturers use this type of channel. Channel 4 contains three levels. The jobber buys from
wholesalers and sells to smaller firms that are not served by larger wholesalers. From the producer’s
point of view, a greater number of intermediaries in the channel mean less control, more complexity,
and more cost. All the institutions in the channel are connected by several types of flows. These include
the physical flow of products, the flow of ownership, payment flow, information flow, and promotion
flow. These flows can make channels with only one or a few channels very complex. (see figure below)
afa/SICM2020
11 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Hospitality Distribution Channels

Major hospitality distribution channels - The largest number of reservations, 33 percent, comes
to a hotel through brand.com. Brand.com is a term used for the brand's reservation system. For
example, for Hilton, it would be www.hilton.com. About 24 percent comes from direct bookings, and 13
percent come from the calls into the central reservation office (CRO). Twenty-nine percent come from
third parties: online travel agencies and global distribution systems. The cost of these different channels
varies greatly. The least expensive way is when the guest makes a reservation through the brand’s Web
site. However, when a hotel has rooms to fill, OTAs can help sell the rooms. A revenue manager has to
manage the channels, knowing when to open and close different channels.
1. Direct booking - Managers often like to encourage direct booking because of the low
transaction costs. However, front-desk personnel is usually not trained in revenue management.
Front-desk staff also develop a personal relationship with repeat guests. Thus, a repeat guest
who is making a future reservation and is quoted a $189 rate by a front-desk clerk quickly asks
for the $139 rate he paid during his last stay. The front-desk clerk is unable to explain why there
is such a price difference and quickly acquiesces to the lower rate.
2. Online travel agency (OTA). A travel agency that conducts business through the Internet with
no physical locations or stores. Online travel agencies (OTAs) conduct business through the
Internet with no physical locations or stores. OTAs account for about 14 percent of a hotel’s
reservation. One way of dividing OTAs is into opaque and nonopaque. The nonopaque OTAs
afa/SICM2020
12 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

include merchant, retail, and referral models. The most popular no opaque sites are merchant
agencies that collect payment from the customer and include well-known names like
Hotels.com, Travelocity, and Expedia. Opaque sites reduce the cannibalization of brand.com by
not disclosing the brand and specific hotel one is purchasing until it is purchased in a
nonrefundable transaction with the consumer. Another type of OTA is a retail agency, which is
similar to a conventional travel agency; the hotel pays a commission to the agent and collects
the room rental directly from the guest. OTAs also sell rental cars, airplane flights, ground
transportation, cruises, and tours. In some hotels, commissions and fees paid to OTAs can
represent one-third or more of the net profits of the hotel. A major discussion among hotel
owners is how to reduce the dependence on and the amount paid to OTAs. To illustrate the
power of OTAs in August 2015, Priceline was worth $66 billion and Marriott was worth $19
billion.
3. Global distribution systems - GDSs are computerized reservation systems that serve as a
product catalog for travel agents and other distributors of hospitality products. These
reservation systems were originally developed by airlines to promote sales. Before the Internet,
GDSs offered a way for suppliers and end-users to connect globally. As the Internet evolved,
they developed Internet solutions for their customers. A distribution service provider provides
the connection between a hotel’s CRS and the GDS.
4. Travel agents - One way of reaching a geographically diverse marketplace is through travel
agents. Travel agents offer the tourism customer a variety of services, including everything from
transportation plans and tour packages to insurance services and accommodation. They are the
most widely used marketing intermediaries in the tourism industry. An agency will earn a
commission for each sale, the amount depending on the type of product sold the number of
travel agents has been decreasing in recent years due to the growth of direct booking and
customers self-booking travel on the Internet. Hotels interested in the travel agency business
are listed in airline reservation systems and hotel guides. Hotels also send information packages
to travel agents that include collateral material and hotel news, including updates about hotel
packages, promotions, and special events. Travel agents are also invited to visit hotel property
on familiarization tours (fam trips). Airlines sometimes assist with these trips by providing free
airfare. Fam trips must be well organized. Hospitality providers who serve travel agents must
remember that agents entrust the hotel with their customers. In a travel agency market survey,
travel agents rated reputation for honoring reservations, reputation for good service, ease of
collecting commission, and room rates as the most important factors in choosing a hotel.
5. Travel wholesalers and tour operators - Travel wholesalers assemble blocks of rooms and
airline seats and sometimes create packages usually targeted at the leisure market. These
packages are sold through travel agents or tour operators to the traveler. Tour operators create
packages and sell them to travel agents or directly to the consumer. Tour operators are
afa/SICM2020
13 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

organizations that offer packaged vacation tours to the general public. These packages can
include everything from transportation, accommodation, and activities to entertainment, meals,
and drinks. Tour operators typically focus their marketing efforts on the leisure market, which
represents the dominant buying group. These packages generally include transportation and
accommodations but may include meals, ground transportation, and entertainment. In
developing a package, a tour operator contracts with airlines and hotels for a specified number
of seats and rooms, receiving a quantity discount. The operator also arranges transportation
between the hotel and the airport. Retail travel agents sell these packages. The tour operator
has to provide a commission for the travel agent and give consumers a package that is perceived
to be a better value than what they could arrange on their own. Additionally, tour operators
have to make a profit for themselves. The profit margin on each package is small. Generally,
operators and wholesalers must sell 85 percent of the packages available to break even. This
high break-even point leaves little room for error. As a result, it is not uncommon for a tour
wholesaler to go broke. Thus, it is important that hospitality providers check the history of the
tour operator, receive a deposit, and get paid promptly.
6. Specialists: tour brokers, motivational houses, and junket reps - Motivational houses. Provide
incentive travel offered to employees or distributors as a reward for their efforts. Tour brokers
sell motorcoach tours, which are attractive to a variety of markets. Tours through New England
to view the fall foliage trips to college and sporting events, tours built around Mardi Gras, and
regularly scheduled tours of the Washington, DC, area are examples of popular motor coach
trips. Some motorcoach tours are seasonal, some are based on one event, and others are year-
round. For hotels on their routes, motor coach tours can provide an important source of
income. Junket reps serve the casino industry as intermediaries for premium players. Junket
reps maintain lists of gamblers who like to visit certain gaming areas, such as Reno, Las Vegas, or
Atlantic City, and they work with one or a few casinos rather than the entire industry. They are
paid a commission on the amount the casino earns from the players or in some cases on a per-
player basis. Members of a junket receive complimentary or low-cost hospitality services,
including air transportation, ground transportation, hotel lodging, food and beverage, and
entertainment. The number of complimentary services received depends on the amount that
players gamble in the casino.
7. Hotel representatives - Hotel representatives sell hotel rooms and hotel services in a given
market area. It is often more effective for hotels to hire a hotel representative than to use their
salesperson. This is true when the market is a distant one and when cultural differences may
make it hard for an outsider to penetrate the market. For example, a corporate hotel in Houston
may find it is more effective to hire a hotel representative in Mexico City than to send a sales
manager there. Hotel sales representatives should represent noncompeting hotels. They receive
a straight commission, a commission plus a salary, or a combination of both. It takes time for a
afa/SICM2020
14 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

hotel representative to learn a company’s products and inform the market about them. The
choice of a hotel representative should not be taken lightly. They represent your hotel, as your
sales staff. As with any member of your sales team, frequent changes in hotel representatives
can be disruptive.
8. National, state, and local tourist agencies - National, state, and local tourist agencies are an
excellent way to get information to the market and gain room bookings. National associations
promote tourism within their own countries. Their impact can be important to hotel chains that
have locations throughout the country. State agencies promote the state resources and
attractions overseas, nationally, and in the state itself. State tourist agencies usually have tourist
information centers strategically located throughout the state, often at entrance points.
Regional associations can also help independent and chain operators.
9. Consortia and reservation systems - A consortium is a group of hospitality organizations that
are allied for the mutual benefit of the members. Reservation systems such as Global Hotel
Alliance and Leading Hotels of the World are expanding their services. Reservation systems
provide a CRS for hotels. They usually provide the system for small chains or provide an overseas
reservation service, allowing international guests to call a local number to contact the hotel.
Marketing is often the reason why consortia are formed. The consortium allows a property to be
independent in ownership and management while gaining the advantages of group marketing.
10. Restaurant distribution systems - Companies like Airbnb and Uber have created distribution
systems that allow individuals to share their cooking skills, knowledge of wine, transportation,
and/ or lodging with others. Airbnb requests potential lodging suppliers to list anything from
their Seaside Villa to an air mattress in their living room on their Web site. These channels are
creating distribution channels allowing the part-time provision of hospitality products by people
who may have full-time jobs.
a) Online reservation systems—OpenTable -
b) Delivery, Take-Out, Drive-Through Window - Restaurants produce a tangible product,
allowing it to be delivered to a customer’s home. Most restaurants will manage this process
by hiring drivers.
c) Food trucks have been around for decades, primarily serving construction sites by providing
hot meals for workers. In recent years, they have served as a way for a chef to start his or
her own business.
Channel Behavior
A distribution system consists of dissimilar firms that have banded together for their common
good. Each channel member is dependent on the others, playing a role in the channel and specializing in
performing one or more functions. Ideally, because the success of individual channel members depends
on general channel success, all channel firms should work together. They should understand and accept
afa/SICM2020
15 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

their roles, coordinate their goals and activities, and cooperate to attain overall channel goals. By
cooperating, they can understand and serve the target market more effectively. But individual channel
members rarely take such a broad view. They are usually more concerned with their own short-run goals
and their dealings with the firms operating closest to them in the channel. Cooperating to achieve
overall channel goals sometimes means giving up individual company goals. Although channel members
depend on each other, they often act alone in their own short-run best interests. They frequently
disagree on the roles each should play or who should do what for which rewards. Such disagreements
over goals and roles generate channel conflict.
Channel conflict. Although channel members depend on each other, they often act alone in
their own short-run best interests. They frequently disagree on the roles each should play on who
should do what for which rewards. The channel conflict when one member of a distribution channel
perceives another to be engaged in behavior that prevents or hinders the first member from achieving
its goals.
a) Horizontal conflict. The conflict between firms at the same level.
b) Vertical conflict. The conflict between different levels of the same channel.
Channel Organization.
Distribution channels are shifting from loose collections of independent companies to unified
systems.
A. Conventional marketing system. A conventional marketing system consists of one or more
independent producers, wholesalers, and retailers. Each is a separate business seeking to
maximize its profits, even at the expense of profits for the system as a whole. –
B. Vertical marketing system. A vertical marketing system consists of producers, wholesalers, and
retailers acting as a unified system. VMSs were developed to control channel behavior and
manage channel conflict and its economies through size, bargaining power, and elimination of
duplicated services. The three major types of VMSs are corporate, administered, and
contractual.
a) Corporate. A corporate VMS combines successive stages of production and distribution
under single ownership.
b) Administered. An administered VMS coordinates successive stages of production and
distribution, not through common ownership or contractual ties, but the size and power
of the parties.
c) Contractual. A contractual VMS consists of independent firms at different levels of
production and distribution who join through contracts to obtain economies or sales
impact.
Franchising. Franchising is a method of doing business by which a franchisee is
granted the right to engage in the offering, selling, or distributing goods or services
afa/SICM2020
16 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

under a marketing format that is designed by the franchisor. The franchisor permits the
franchisee to use its trademark, name, and advertising. Franchising is a method of doing
business by which a franchisee is granted the right to engage in the offering, selling, or
distributing goods or services under a marketing format, which is designed by the
franchisor. The franchisor permits the franchisee to use its trademark, name, and
advertising.
Franchises have been popular forms of distribution for both hotels and
restaurants. Some of the most popular brands are franchised, including Holiday Inn
Express, Hilton Garden Inn, and Fairfield Inn by Marriott, McDonald’s, and KFC.
Franchises have been responsible for shifting the restaurant business from individual
operators to multiunit chains For the right to use the name, methods of operation, and
other benefits that come with a franchise, the franchisee pays an initial fee, a royalty,
and a marketing fee to the franchise organization. In the case of hotels, there is a
reservation fee and a fee for the loyalty program; for an overview of hotel franchise fees
see Hotel Franchise Fee Guide, published by HVS. Royalty is based on gross room
revenue, as are the other total revenue-based fees. The franchisor can verify gross
receipts through tax reports. A contentious area with franchisees is the marketing fee. It
is administered by the brand but uses the fees paid by franchisees. If the use of the
marketing fee is not communicated well, it can create conflict with franchisees. To avoid
this and other forms of conflict, franchisors should encourage the formation of a
franchisee association and work through issues with the association. The initial fee and
the royalty depend on the brand equity of the franchise. For example, McDonald’s is
recognized as a fast-food restaurant around the world. People in London, Paris, Hong
Kong, and New York recognize McDonald’s. The stronger the market position, the more
valuable is the brand name. Thus, a McDonald’s franchise offers more value than a Mr.
Quick Hamburger franchise. These are the advantages of the franchise to the franchisee
(person or organization buying the franchise):
• Recognition of brand
• Less chance of a business failure
• National advertising, premade advertisements, and marketing plans
• Faster business growth
• Help with site selection
• Architectural plans
• Operational systems, software, and manual to support the systems
• National contracts with suppliers
• Product development
• Consulting
afa/SICM2020
17 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

• Help with financing
 The disadvantages of purchasing a franchise are as follows:
• Fees and royalties are required.
• It limits the products sold and the recipes used.
 The franchisee is often required to be open a minimum number of hours and
offer certain products.
• A poorly operated company can affect the reputation of the entire chain.
• The franchisor’s performance affects the profitability of franchisees.
 Some franchisees may not benefit from national advertising as much as other
franchises—often a source of conflict.
Alliances. Alliances are developed to allow two organizations to benefit from each
other’s strengths, organizations to benefit from each other’s strengths. Restaurants are
expanding their locations through alliances with hotel chains. This provides the restaurant
with a good location and access to the hotel’s guests. The hotel gains the value of the
brand name of the restaurant. Additionally, many resorts have food courts similar to those
in the malls, featuring branded fast-food outlets. The use of branded restaurants is
attracting the attention of hotel management and creating opportunities for restaurants to
expand their distribution.
C. Horizontal marketing system. Two or more companies at one level join to follow new marketing
opportunities. Companies can combine their capital, production capabilities, or marketing
resources to accomplish more than what one company can accomplish working alone.
D. Multichannel marketing system. A single firm sets up two or more marketing channels to reach
one or more customer segments.
Selecting Channel Members

A. Customer needs
B. Attracting channel members
C. Evaluating major channel alternatives
1. Economic feasibility of channel member
2. Control criteria
Responsibilities of Channel Members and Suppliers.

The company and its intermediaries must agree on the terms and responsibilities of each
channel member. According to the services and clientele at hand, the responsibilities are formulated
after careful consideration.
afa/SICM2020
18 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Business Location. There are four steps in choosing a location:

A. Understanding the marketing strategy. Know the target market of the company.
B. Regional analysis. Select the geographic market areas.
C. Choosing the area within the region. Demographic and psychographic characteristics
and competition are factors to consider.
D. Choosing the individual site. Compatible business, competitors, accessibility, drainage,
sewage, utilities, and size are factors to consider.
Marketing Highlights
Franchising
These days, it’s nearly impossible to stroll down
a city block or drive on a suburban street without seeing
a Wendy’s, a McDonald’s, a Pizza Hut, or a Starbucks.
One of the best-known and most successful franchisers,
McDonald’s, has more than 35,000 stores in more than a
hundred countries. Subway is one of the fastest-growing
franchises, with more than 45,000 shops in over a
hundred countries. How does a franchising system
work? The individual franchises are a tightly knit group
of enterprises whose systematic operations are planned,
directed, and controlled by the operation’s innovator,
called a franchisor. The franchisee is required to pay for
the right to be part of the system.
Yet this initial fee is only a small part of the total amount
that franchisees invest when they sign a franchising contract. Start-up costs include rental and lease of
equipment and fixtures and sometimes a regular license fee. McDonald’s franchisees invest as much $1
to $2 million in initial start-up costs. Subway’s success is partly due to its low start-up cost of $100,000
to $300,000, which is lower than most other franchises. However, Subway franchisees pay an 8 percent
royalty on gross sales, one of the highest in the food franchise industry, plus a 4.5 percent advertising
fee.
The franchiser provides its franchisees with a marketing and operations system for doing
business. McDonald’s requires franchisees to attend its “Hamburger University” in Oak Brook, Illinois,
for three weeks to learn how to manage the business; franchisees must also adhere to certain
procedures
in buying materials. In the best cases, franchising is mutually beneficial to both franchisor and
franchisee. Franchisers can cover new territory in little more than the time it takes the franchisee to sign
afa/SICM2020
19 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

a contract. They can achieve enormous purchasing power. Franchisers also benefit from the franchisees’
familiarity with local communities and conditions and from the motivation and hard work of employees
who are entrepreneurs rather than “hired hands.” Similarly, franchisees benefit from buying into a
proven business with a well-known and accepted brand name. And they receive ongoing support in
areas ranging from marketing and advertising to site selection, staffing, and financing. As a result of the
franchise explosion in recent years, some fast-food franchisers are facing worrisome market saturation.
One indication is the number of franchisee complaints filed with the Federal Trade Commission against
parent companies.
The most common complaint is that franchisers “encroach” on existing franchisees’ territory by
bringing in another store. For example, McDonald’s franchisees in California and other states recently
complained when the company decided to open new company-owned stores in their areas. Franchisees
may object to parent company marketing programs that may adversely affect their operations.
Franchisees often strongly resist value promotions in which the company reduced prices on menu items
to revive stagnant sales. Many franchisees believe that the value promotion cheapens the image of the
chain and unnecessarily reduces their profit margins. Another complaint is higher-than-advertised
failure rates. Subway, in particular, has been criticized for misleading its franchisees by telling them that
it has only a 2 percent failure rate when the reality is much different. Besides, some franchisees feel that
they’ve been misled by exaggerated claims of support, only to feel abandoned after the contract is
signed and money has been invested. International
expansion is delivering both franchisor growth and
franchisee earnings.
Fast-food franchises have become very
popular throughout the world. Domino’s has
entered Japan with master franchisee Ernest Higa,
who owns 106 stores in Japan with combined sales
of $140 million. Part of Higa’s success can be
attributed to adopting Domino’s product to the
Japanese market, where food presentation is everything. Higa carefully charted the placement of pizza
toppings and made cut-mark perforations in the boxes for perfectly uniform slices. It appears franchise
fever will not cool down soon. Experts estimate franchises capture 50 percent of all U.S. retail sales. Of
the top 12 franchises in worldwide sales, 10 are related to the travel and hospitality industry. These
franchises include McDonald’s, Carlson Wagonlit Travel, Burger King, KFC, Pizza Hut, Wendy’s, Marriott
Hotels, Subway Restaurants, Sheraton, and Taco Bell.
--------------------------------------------------------------------------
afa/SICM2020
20 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Module 4 – Learning Activity / Application – Lesson 10

1. Explain how international travel changed distribution channels in the hospitality and travel
industries.
2. What are the major differences between a distribution channel for a business making tangible
products and a firm producing hospitality and travel products?
3. Can a business have too many channel members? Explain your answer.
4. Explain the difference between a tour wholesaler and a travel agent.
5. Why is franchising such a fast-growing form of retail organization?
6. Marketing alliances are often created to strengthen business relationships with marketing
channels and intermediaries. Businesses involved in the alliance have their own brand identities,
but would forming alliances also affect each other’s co-branding?
References
Carl P. Zeithami and Valarie Zeithami, (1984) “Environmental Management: Revisiting the
Marketing Perspective,” Journal of Marketing. 46–53.
Castle Rock (Town) Colorado, U.S. Census Bureau, State and County Quick Facts, February 5, 2015,
http://quickfacts.census.gov
Chick-fil-A Looks to Perk Sales by Offering First-Ever Specialty Grade Coffee in QSR Industry, Chick-
fil-A.com 2014 CFA Properties, Inc.
.Kotler, P., Bowen. J.T., Makens, J.C. & Baloglu, S. (2017). Marketing for Hospitality and Tourism,
Global Edition, Pearson Education Limited, Edinburgh Gate, England.
Kotler, P. (2008). Marketing Management ((Upper Saddle River, NJ: Prentice-Hall, 1988)
Kotler, P., Kartajaya, H., and Setiawan, I. (2010) Marketing 3.0 (New Jersey: John Wiley & Sons, Inc.,
USA).
Loos, Robert, (2015). “Robots to Staff Hotel in Japan,” Robotics Today, February 3, 2015,
http://www.roboticstoday .com/news/hotel-androids-robots-to-staff-hotel-injapan-3106
(accessed July 10, 2015).
“Mobile Phones Replace Room Keys in Stockholm Hotel, Check-In and Check-Out Without Ever
Stopping by the Front Desk,” November 2, 2010, http://news.discovery.com/tech/mobile-
phones-replace-hotelkeys.html (accessed August 18, 2011).hotelkeys.html (accessed August
18, 2011).
=====================================================
End of Lesson 10
=====================================================
afa/SICM2020
21 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
LESSON 11 & 12 – PROMOTIONAL MIX STRATEGIES
Learning Outcomes:
1. Discuss the process and advantages of integrated marketing communications in
communicating customer value; direct marketing and discuss its benefits to customers
and companies,
2. Define the five promotion tools and discuss the factors that must be considered in shaping
the overall promotion mix (advertising, sales promotion, public relation, and publicity),
3. Explain how companies have responded to the Internet and other powerful new
technologies with online marketing strategies,
4. Explain the role and nature of personal selling and the role of the sales force.
5. Discuss supervising salespeople, including directing, motivating, and evaluating
performance.
6. Discuss the destination marketing system, and identify the components of tourism
destination competitiveness.
7. Explain tourism development strategies and different options for creating and investing in
tourism attractions.
8. Discuss the importance of destination image and branding and creating visitor
experiences.
--------------------------------------------------------------------------
afa/SICM2020
22 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
A company that has a good product is not enough; it will not generate any sales unless the
consumers are aware of the product’s existence and also can access the product. This is where
Promotion comes to play its part. Promotion helps to get the message of the product out so consumers
are aware of it and want to purchase it. There are many promotional tools that you can consider to
market your product. The blend of promotional elements is known as the promotional mix, and
promotional management involves coordinating all the elements, setting objectives and budgets,
designing programs, evaluating performance, and taking corrective action. Promotion can be a short-
term activity, but considered at a strategic level it is a mid and long-term investment aimed at building
up a consistent and credible corporate or destination identity. Promotion, when used effectively, builds
and creates an identity for the product or the organization. Brochures, advertisements, in-store
merchandising, sales promotions, and so on, create the identity of the company in the mind of the
consumer, and all aspects of the promotional effort should therefore project the same image.
Promotion Mix Strategies

The promotion tools include Advertising, sales promotion and merchandising, personal selling,
and public relations. Each of the tools has its functions, cost, and disadvantages. Hospitality
organizations can consider these tools to match their product nature, the brand image, and the stage of
the life cycle.
A. Advertising. Any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor.
B. Sales promotion. Short-term incentives to encourage the purchase or sale of a product or
service.
C. Personal selling. Personal presentation by the firm’s sales force to make sales and build
customer relationships.
D. Public relations. Building good relations with the company’s various publics by obtaining
favorable publicity, building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events.
E. Direct and digital marketing. Engaging directly with carefully targeted individual consumers
and customer communities to both obtain an immediate response and build lasting customer
relationships.
Integrated Marketing Communications. The company carefully integrates its many

communication channels to deliver a clear, consistent, and compelling message about the organization
and its brands.
A. The new marketing communications landscape - The digital age has spawned a host of new
information and communication tools.
afa/SICM2020
23 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

B. The Shifting Marketing Communications Model
1. Consumers are changing and communication through digital, mobile, and social media
is becoming more important.
2. Marketers are shifting away from mass marketing to targeted communication.
3. The digital age has spawned new communication tools including smartphones and
tablets.
C. The need for integrated marketing communications

1. Integrated marketing communications calls for recognizing all touchpoints where the
customer may encounter content about the company and its brands.
2. As mass markets have fragmented, marketers are shifting away from mass marketing
to narrowly defined micro-markets.
3. The digital age has spawned a host of new information and communication tools,
from smartphones and tablets to the Internet and cable and satellite television
systems.
D. A view of the communications process
1. IMC calls for recognizing all contact points where the customer may encounter the
company and its brands. The company wants to deliver a consistent and positive
message with each contact.
2. IMC ties together all the company’s messages and images. The company’s television
and print advertisements have the same message, look, and feel as its e-mail and
personal selling communications.
3. And its public relations materials project the same image as its Web site. Four more
are major communication functions—encoding, decoding, response, and feedback.
The last element is noise in the system.
afa/SICM2020
24 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Steps in Developing Effective Communications

A. Identify the target audience. A marketing communicator starts with a clear target
audience in mind.
B. Determine the communication objective. The six buyer readiness stages are
awareness, knowledge, liking, preference, conviction, and purchase.
C. Design a message
AIDA model. The message should get attention, hold interest, arouse desire, and obtain
action. Three problems that marketing communicator must solve:
a. Message content (what to say). There are three types of appeals:
I. Rational appeals relate to audience self-interest. They show that the product will
produce the desired benefits.
II. Emotional appeals attempt to provoke emotions that motivate purchase.
III. The moral appeal is directed to the audience’s sense of what is right and proper.
b. Message structure (how to say it)
I. Whether to conclude or leave it to the audience.
II. Whether to present a one- or two-sided argument.
III. Whether to present the strongest arguments first or last.
c. Message format (how to say it symbolically)
I. Visual ad: using novelty and contrast, eye-catching pictures and headlines,
distinctive formats, message size and position, color, shape, and movement.
II. Audio ad: using words, sounds, and voices.
d. Select communication channels
I. Personal communication channels. Used for products that are expensive and
complex. It can create opinion leaders to influence others to buy.
II. Non-personal communication channels. Include media (print, broadcast, and
display media), atmospheres, and events.
e. Message source. Using attractive sources to achieve higher attention and recall, such as
using celebrities.
f. Measure the results of the communication. Evaluate the effects on the targeted
audience.
Setting the Total Promotion Budget and Mix

A. Setting the total promotional budget
1. Affordable method. A budget is set based on what management thinks it can afford.
2. Percentage of sales method. Companies set a promotion budget at a certain percentage
of current or forecasted sales or a percentage of the sales price.
afa/SICM2020
25 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

3. Competitive parity method. Companies set their promotion budgets to match
competitors.
4. Objective and task method. Companies develop their promotion budget by defining
specific objectives, determining the tasks that must be performed to achieve these
objectives, and estimating the costs of performing them.
B. Shaping the Overall Promotion Mix
C. The nature of each promotional tool
D. Promotion mix strategies
E. Type of product and market. The importance of different promotional tools varies among
consumers and commercial markets.
F. Push versus pull strategy
a. Push strategy. The company directs its marketing activities at channel members to
induce them to order, carry, and promote the product.
b. Pull strategy. A company directs its marketing activities toward final consumers to
induce them to buy the product.
G. Buyer readiness state. Promotional tools vary in their effects at different stages of buyer
readiness.
H. Product life-cycle stage. The effects of different promotion tools also vary with stages of the
product life cycle.
Advertising.
Refers to any paid form of non-personal presentation and promotion of ideas, goods, or services
by an identified sponsor.
afa/SICM2020
26 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Major Decisions in Advertising
A. Setting objectives. Objectives should be based on information about the target market,
positioning,
and market mix. Advertising objectives can be classified by their aim: to inform, persuade, or
remind.
1. Informative advertising. Used to introduce a new product category or when the
objective is to build primary demand.
2. Persuasive advertising. Used as competition increases and a company’s objective
becomes building selective demand.
3. Reminder advertising. Used for mature products because it keeps consumers thinking
about the product.
B. Setting the advertising budget. Factors to consider in setting a budget are the stage in the
product life cycle, market share, competition and clutter, advertising frequency, and product
differentiation.
1. Strategic versus tactical budgets
2. Overall promotional budget
3. Consistency
4. Opportunity to stretch the budget
5. The final budget
C. Developing the advertising strategy
D. Creating the advertising message
1. Breaking through the clutter
2. Merging advertising and entertainment
3. Message strategy
4. Message execution. The impact of the message depends on what is said and how it is
said.
5. Consumer-generated messages
6. Message evaluation and selection. Messages should be meaningful, distinctive, and
believable.
E. Selecting advertising media
1. Deciding on reach, frequency, and impact. Reach is a measure of how many people in
the target market are exposed to the ad. Frequency is the number of times the average
person in the target market will see the ad. The impact is a qualitative measure of the
value of the message exposure through a given medium.
2. Choosing among major media types. Choose among newspapers, television, direct mail,
radio, magazines, and outdoor.
afa/SICM2020
27 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

3. Selecting specific media vehicles. Costs should be balanced against the media vehicles:
audience quality, ability to gain attention, and editorial quality.
4. Deciding on media timing. The advertiser must decide on how to schedule advertising
over a year based on the seasonal fluctuation in demand, lead time in making
reservations, and if they want to use continuity in their scheduling or use a pulsing
format.
5. Road blocking.
F. Evaluating advertising effectiveness and the return on advertising investment. There are
three major methods of advertising pretesting and two popular methods of post-testing ads.
Public Relations.
The process by which a positive image and customer preference are created through third-party
endorsement. Social media has become an important tool for public relations.
Major Activities of PR Departments

A. Press relations. Press relations aim to place newsworthy information into the news media to
attract attention to a person, product, or service.
B. Product publicity. Product publicity involves efforts to publicize specific products.
C. Corporate communication. This activity covers internal and external communications and
promotes understanding of the organization.
D. Lobbying. Lobbying involves dealing with legislators and government officials to promote or
defeat legislation and regulation.
E. Counseling. Counseling involves advising management about public issues and company
positions and image.
afa/SICM2020
28 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Publicity.
Publicity is a direct
function of PR. Publicity is the
task of securing editorial and
news space, as opposed to
paid space, in print and
broadcast media to promote a
product or a service. Publicity
is a popular PR tool used in
the five activities described
earlier. Three other popular
uses of publicity are new
product launches, special events, and crisis management.
The Public Relations Process
A. Researching to understand the firm’s mission, culture, and target of the communication.
B. Establishing marketing objectives
1. Build awareness
2. Build credibility
3. Stimulate the sales force and channel intermediaries
4. Lower promotion costs
C. Defining the target audience
D. Choosing the PR message and vehicles
1. Publications. Companies can reach and influence their target market via annual reports,
brochures, cards, articles, audiovisual materials, and company newsletters and
magazines.
2. Events. Companies can draw attention to new products or other company activities by
arranging special events.
3. News. PR professionals cultivate the press to increase better coverage for the company.
4. Speeches. Speeches create product and company publicity. The possibility is
accomplished by printing copies of the speech or excerpts for distribution to the press,
stockholders, employees, and other publics.
5. Public service activities. Companies can improve goodwill by contributing money and
time to good causes, such as supporting community affairs.
7. Identity media. Companies can create a visual identity that the public immediately
recognizes, such as with the company’s logos, stationery, signs, business forms, business
cards, buildings, uniforms, dress code, and rolling stock.
E. Implementing the marketing PR plan
afa/SICM2020
29 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

F. Evaluating PR results
1. Exposures
2. Awareness/comprehension/attitude change
3. Sales-and-profit contribution
PR Opportunities for the Hospitality Industry

A. Individual properties. Public relations is by far the most important promotional tool available
to entrepreneurs and individual properties, such as a single restaurant, tourist attraction, bed
and breakfast (B&B), tour operator, or hotel. Seldom can these enterprises afford costly
advertising or other promotional programs?
B. Build PR around the owner/operator
C. Build PR around the location. For instance, the isolation and obscurity of an enterprise can be
used as a PR tactic.
D. Build PR around a product or service
Sales Promotion
A. Setting sales promotion
objectives. Sales promotion
objectives vary widely and can
include increasing short-term
sales, increasing long-term
sales, getting consumers to try a
new product, luring customers
away from competitors, or
creating loyal customers.
B. Selecting sales promotion
tools. Many tools can be used to accomplish sales promotion objectives. The promotion planner
should consider the type of market, the sales promotion objectives, the competition, and the
costs and effectiveness of each tool. Common sales promotion tools include samples, coupons,
premiums, patronage rewards, point-of-purchase
(POP) displays, contests, sweepstakes, and games.
C. Finding creative ideas
D. Developing the sales promotion program. The following steps are involved in developing a
sales promotion program:
1. Decide on the size of the incentive
2. Set the conditions for participation
3. Decide how to promote and distribute the promotion program
afa/SICM2020
30 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

4. Set promotion dates
5. Decide on the sales promotion budget
E. Pretesting and implementing the plan. The marketer should pretest to determine if sales
promotion tools are appropriate and the incentive size is efficient and effective.
F. Evaluating the results. The company should evaluate the results against the objectives of the
program.
Relationship Marketing and Strategic Alliances.

The art of creating a closer working relationship and interdependence between the people in
two organizations.
A. Strategic alliances. Alliances are relationships between independent parties that agree to
cooperate but still retain separate identities.
B. Why strategic alliances are necessary. Globalization, complicated customer needs, large
customers with multi-locations, the need for technology, highly interdependent vendor/buyer
relationship, intensified competition, and low profitability within the hospitality industry.
Recruiting and Selecting Sales Representatives.

The effective salesperson has two basic qualities: (1) empathy, the ability to feel as the customer
does, and (2) ego drive, a strong personal need to make the sales.
A. Importance of careful selection. Effective salespeople have two basic qualities: empathy, the
ability to feel as the customer does; and ego drive, a strong personal need to make the sale.
B. Establish a profile of desired characteristics matching the corporate culture.
C. Matching career acquisitions with corporate objectives.
D. Salesforce training. There are three types of training: product/service training; policies,
procedures, and planning training; and sales techniques training.
Managing the SalesForce

A. Selecting sales strategies. The following are six general sales strategies:
1. Prevent erosion of key accounts
2. Grow key accounts
3. Grow selected marginal accounts
4. Eliminate selected marginal accounts
5. Retain selected marginal accounts, but provide lower-cost sales support
6. Obtain new business from selected prospects
B. Salesforce tactics: principles of personal selling. - These are prospecting and qualifying, pre-
approach, approach, presentation and demonstration, negotiation, overcoming objections, closing, and
follow-up/maintenance.
afa/SICM2020
31 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

C. Motivating a professional salesforce
1. Salesforce compensation
2. Supplementary motivators
D. Evaluation and control of a professional sales force. There are several means of formal
evaluation of performance: sales-to-salesperson comparisons, customer satisfaction evaluation,
qualitative evaluation of sales representatives, peer-to-peer sales, networking, and salesmanship.
Social Selling: Online, Mobile, and Social Media Tools.

The use of online, mobile, and social media to engage customers, build stronger customer
relationships and augment sales performance.
Direct and Digital Marketing involves engaging directly with carefully targeted individual
consumers and customer communities to both obtain an immediate response and build lasting
customer relationships. Companies use direct marketing to tailor their offers and content to the needs
and interests of narrowly defined segments or individual buyers. In this way, they build customer
engagement, brand community, and sales.
The New Direct-Marketing Model. In the spate of online social and mobile media, direct
marketing has undergone a dramatic transformation. Direct and digital marketing is more than just
supplementary channels or advertising media; they constitute a complete model for doing business.
Rapid Growth of Direct and Digital Marketing. Direct and digital marketing has become the
fastest-growing form of marketing. Direct marketing continues to become more Internet-based, and
digital direct marketing is claiming a surging share of marketing spending and sales.
Benefits of Direct and Digital Marketing to Buyers and Sellers. For buyers, direct and digital
marketing are convenient, easy, and private. They give buyers anywhere, anytime access to an almost
unlimited assortment of goods and a wealth of product and buying information. For sellers, direct
marketing often provides low-cost, efficient, speedy alternatives for reaching their markets as well as
greater flexibility. Especially in today’s digital environment, direct marketing provides opportunities for
real-time marketing that links brands to important moments and trending events in customers’ lives.
Forms of Direct and Digital Marketing. Traditional direct-marketing tools include face-to-face
selling, direct-mail marketing, catalog marketing, telemarketing, direct-response TV marketing, and
kiosk marketing. In recent years, however, a new set of digital and direct-marketing tools have emerged.
These include Web sites, online ads, promotional e-mail, online videos, blogs, social media marketing,
and mobile marketing.
Digital and Social Media Marketing. Digital marketing tools and platforms directly engage
consumers anywhere at any time via their computers, smartphones, tablets, Internet-ready TVs, and
other digital devices. The use of the Internet and digital technology impacts both buyers and marketers
who serve them.
afa/SICM2020
32 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Marketing, the Internet, and the Digital Age. The digital age has fundamentally changed
customers’ notions of convenience, speed, price, product, information, service, and brand interactions.
As a result, it has given marketers a whole new way to create customer value, engage customers, and
build customer relationships. Also, companies that have traditionally operated off-line have now created
their online sales, marketing, and brand community channels.
Online Marketing. Online marketing refers to marketing via the Internet using company Web
sites, online advertising and promotions, e-mail marketing, online video, and blogs.
Web Sites and Branded Web Communities. For most companies, the first step in conducting
online marketing is to create a Web site. Some Web sites are designed to engage customers and move
them closer to a direct purchase or another marketing outcome, while others’ primary purpose is to
present brand content that engages consumers and creates a customer-brand community.
Online Advertising. Online advertising has become a major promotional medium. The main
forms of online advertising are display ads and search-related ads. Together, they account for the largest
portion of firms’ digital marketing budgets.
E-Mail Marketing. E-mail can be the ultimate direct-marketing medium. Marketers can send
highly targeted, tightly personalized, relationship-building messages. Many companies also use
configurable e-mail systems that let customers choose what they want to get to steer clear of frustration
from spam e-mails.
Online Videos. Online videos engage consumers and are a form of inexpensive marketing.
Videos can go viral and harbor a vast amount of attention.
Blogs and Other Online Forums. Blogs (or Web Blogs) are online journals where people and
companies post their thoughts and other content, usually related to narrowly defined topics. They
usually appeal to specific special interest groups.
Social Media Marketing. For travel products, it can be argued that social media entails a change
from one-to-one recommendations from individuals to many-to-many conversations. In the past, these
personal sources often came from talking with a friend, relative, or resident. Social media has now
expanded the conversation, in terms of both breadth and depth.
Using Social Media. Marketers can engage in social media in two ways: They can use existing
social media or they can set up their own. Using existing social media seems the easiest. Thus, most
brands, large and small, have set up shop on a host of social media sites.
Social Media Marketing Advantages and Challenges. Social media are targeted and personal—
they allow marketers to create and share tailored brand content with individual consumers and
customer communities. Social media are interactive, making them ideal for starting and participating in
customer conversations, and listening to customer feedback. Social media are also immediate and
timely. Social media can be very cost-effective. Social media marketing also presents challenges. First,
many companies are still experimenting with how to use them effectively, and results are hard to
measure. Second, such social networks are largely user-controlled.
afa/SICM2020
33 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Managing User-Generated Social Media Content. UGC is valuable, whether it is positive or
negative. The positive comments create a community and encourage others to use the product. The
negative comments provide feedback on what customers do not like and how we did not meet their
expectations. These comments help us improve the service delivery system.
Listening to Customers on Social Media. One of the goals of a company’s social media plan
should be to engage its customers and create a conversation.
International Social Media. Social media managers working internationally will need to find
out which sites are most effective as they move around the world.
Integrated Social Media Marketing. Companies that use social media successfully are
integrating a broad range of diverse media to create brand-related social sharing, engagement, and
customer community.
Mobile Marketing. Mobile marketing features marketing messages, promotions, and other
marketing content delivered to on-the-go consumers through their mobile devices. Marketers use
mobile marketing to engage customers anywhere, anytime during the buying and relationship-building
processes.
Customer Databases and Traditional Direct Marketing. Effective direct marketing begins with a
good customer database. A customer database is an organized collection of comprehensive data about
individual customers or prospects, including geographic, demographic, psychographic, and behavioral
data. A good customer database can be a potent relationship-building tool.
Relationship Marketing and Loyalty Programs.

Direct marketing allows companies to develop a strong relationship with their customers, which
helps prevent them from switching to competitors. Relationship marketing has a long-term orientation.
The goal is to deliver long-term value to customers, and the measure of success is long-term customer
satisfaction. Relationship marketing requires that all the company’s departments work together with
marketing as a team to serve the customer. It involves building relationships at many levels: economic,
social, technical, and legal, resulting in high customer loyalty.
Benefits of Customer Relationship Management. The benefits of CRM comes from building
continued patronage of loyal customers, reduced marketing costs, decreased price sensitivity of loyal
customers, and partnership activities of loyal customers.
Loyalty Programs. Loyalty programs were developed as a way to attract and maintain a
company’s best customers. The biggest change for North American hotel loyalty programs is the shift in
the importance of generational trends, with millennials trending and baby boomers fading.
Traditional Forms of Direct Marketing. The traditional forms of direct marketing used in the
hospitality industry are direct-mail marketing, telephone marketing, kiosk marketing, and iTV.
Direct-Mail Marketing. Involves sending an offer, announcement, reminder, or another item to
a person at a particular address. Using highly selective mailing lists, direct marketers send out millions of
afa/SICM2020
34 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

mail pieces each year: letters, catalogs, ads, brochures, samples, DVDs, and other “salespeople with
wings.” Direct mail is by far the largest direct-marketing medium.
Telephone Marketing. Involves using the telephone to sell directly to consumers and business
customers. Telephone marketing now accounts for 22 percent of all direct-marketing–driven sales.
Kiosk Marketing. As consumers become more and more comfortable with the computer and
digital technologies, many companies are placing information and ordering machines called kiosks (in
contrast
to vending machines, which dispense actual products) in stores, airports, and other locations.
Interactive TV. ITV lets viewers interact with TV programming and advertising using their
remote controls.
Online Privacy and Security. Marketers have a responsibility to protect the privacy of customer
information and make sure personal information such as credit card numbers is secure.
Extreme Sports Bring Publicity and Tourists
Today, a version of many outdoor sports known as Extreme Sports has built a following. These
were formerly reserved for professional stunt people or highly advanced experts in a particular sport.
Today, advocates exist within each sport such as frozen waterfall climbing or snowboarding and skiing
on extremely dangerous terrain. In some cases, a growth in tourism/hospitality has occurred as a result
of these activities. Each of them offers opportunities for publicity and promotion. An example is the
seaside town of Nazare, Portugal, and the beach of the Praia do Norte. Garret McNamara, an American
who is a champion in the sport of Jet Ski Surfing (a surfing sport in which a jet ski takes a surfer and
board to a giant wave and then quickly gets out of the way), came to the attention of Dino Casimiro, a
Portuguese surfer. Senor Casimiro knew of the town Nazare and the beach Praia do Norte and contacted
Garret to visit and see for himself the size of the waves. Dino also convinced the town’s development
group to promote the waves as a visitor/surfer attraction.
Garret was intrigued and visited Nazare and quickly became hooked on the waves and the area.
In 2011, McNamara broke the world’s large wave record by surfing the biggest wave in the world at 78
feet. News of this event was carried by media throughout Europe. The French newspaper Le Parisien
carried a headline, “Il Surfe la Plus Haut e Vague du Monde” announcing McNamara’s accomplishment.
Garret was becoming a world celebrity and a near icon for Nazare. Today, Nazare has attracted scores of
surfers from all over the world to try their luck at surfing these giant waves. Several have surfed what
are said to be 100-foot waves; however, none of these rides have been officially recognized. The town
attracts thousands of visitors who were made aware of the town by the publicity it received from suffers
riding the big waves. These visitors discover the beaches, great views from the cliffs above the beaches,
seafood restaurants, and other attractions of the town while hoping to see a Jet Ski surfer riding a wave
afa/SICM2020
35 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

reaching 120 feet in height. In the
meantime, Portugal and the town of
Nazare benefit from the observer and
participant interest in this extreme sport at
Praia do Norte. If you put Nazare into the
search function on YouTube, you will be
able to watch some of these surfers.
Nazare, Portugal’s, 100 feet plus waves

have attracted Jet Ski surfers from around
the world. Courtesy of Italy/Fotolia.
--------------------------------------------------------------------------
Module 4 – Learning Activity – Lesson 11 & 12

1. Explain the difference between promotion and advertising.
2. Explain the concept of integrated marketing communications.
3. The tourism and hospitality industry can benefit tremendously from viral marketing. How can a
marketer leverage viral marketing elements to promote the company’s core value offering?
4. The percentage of sales method is one of the most common ways of setting a promotional
budget. What are some advantages and disadvantages of this method?
5. Apply the five major tools in the marketing communication mix to a hospitality or travel
company by showing how a company can use all these tools.
6. Advertising requires different approaches depending upon the core product in question and the
target audience. What features of an advertisement (either online or offline) can be unique to
hospitality and tourism industries targeted to frequent travelers?
References:
Anon. (13 May 2004) ‘Theme park roller coaster seminar helps people cope with their “weaker self”,
National Post, A14.
Booms, B..H., and Bitner, M.J. (1982). “Marketing Services by Managing the Environment,” Cornell
Hotel and Restaurant Administration Quarterly, 23, no. 1 (1982): 35–39.
Cohen, E. (1972) ‘Toward a sociology of international tourism’, Social Research, 39(1), 164–182.
Crompton, J. L. (1979) ‘Why people go on pleasure vacation’, Annals of Tourism Research, 6(4), 408–
424.
Gronroos, C. (1984). “A Service Quality Model and Its Marketing Implications,” European Journal of
Marketing, 18, no. 4 (1984): 36–44;
afa/SICM2020
36 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Hoffman, K. & Bateson, J. (1997). Fundamental differences between goods and services. In
Essentials of Services Marketing (pp.24-35). Orlando, Florida: The Dryden Press.
Kotler, P., Bowen. J.T., Makens, J.C. & Baloglu, S. (2017). Marketing for Hospitality and Tourism,
Leonard L. Berry, A. Parasuraman, and Valarie A. Zeithaml, “The Lessons for Improving Service
Quality,” MSI Report Working Paper Series, no. 03-Vol (Cambridge, MA: Marketing Science
Institute, 2003): 61–82.
Maslow, A. (1970). Motivation and Personality, 2nd ed. (New York: Harper & Row, 1970), pp. 80–106.
Matilla, A. (1999). “Consumers’ Value Judgments,” Cornell Hotel and Restaurant Administration
Quarterly, 40, no. 1 (1999): 40.
Mcneal, J.A. (1982).Consumer Behavior: An Integrative Approach (Boston, MA: Little, Brown, 1982),
pp. 83–90.
Zeithaml, V. (1981). “How Consumer Evaluation Processes Differ Between Goods and Services,” in
Marketing of Services, ed. James Donnelly and William R. George (Chicago: American
Marketing Association,1981), pp. 186–190.
=====================================================
End of Lesson 11 & 12
=====================================================
afa/SICM2020
37 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
LESSON 13 & 14 – DESTINATION MARKETING & MARKETING PLAN
Learning Outcomes:
1. Understand why it is important to have a marketing plan and be able to explain the
purpose of a marketing plan.
2. Prepare a marketing plan following the process described in this module.
--------------------------------------------------------------------------
Globalization of the Tourist Industry.

The world has become a global community. Regions such as Eastern Europe and countries such
as China and India are rapidly developing. They are now generators of tourists as well as destinations for
tourists. To understand the principles of destination marketing it is important to comprehend what is
meant in the tourism industry by the term ‘destination’. Destinations are places that have some form of
actual or perceived boundary, such as the physical boundary of an island, political boundaries, or even
market-created boundaries. The tourism destination can comprise a wide range of elements that
combine to attract visitors to stay for a holiday or day visit, but four core elements make up the
destination product: prime attractors, built environment, supporting supply services, and socio-cultural
dimensions such as atmosphere or ambiance.
afa/SICM2020
38 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Objectives and Benefits of Destination Marketing

A fair proportion of destination marketing tends to be carried out by public sector bodies, and
hence it is quite complicated. These public bodies are often involved in destination marketing for a wide
range of reasons other than just attracting tourists.
These objectives might include:
1. improving the image of an area in the hope that this will encourage industrialists to
relocate their factories and offices to the area;
2. providing jobs for residents;
3. increasing the range of facilities that are available for the local community;
4. giving residents more pride in their local area, which can happen when people see that
tourists want to visit their region;
5. providing a rationale and funding for improvements to the local environment; and
6. trying to make the destination politically more acceptable.
afa/SICM2020
39 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Marketing Tourism Destinations
A. Tourism destination
1. Destinations are places with some form of actual or perceived boundary.
2. Macrodestinations such as the United States contain thousands of micro destinations,
including regions, states, cities, towns, and visitor destinations within a town.
B. Destination marketing system - Destination marketing is systematically linking supply
(destination features and benefits) with demand (needs and wants of travelers) and enhancing the
competitiveness of a destination in a sustainable manner.
C. Destination competitiveness
1. Travel and Tourism Competitiveness Index (TTCI) It aims to measure the factors and
policies that make it attractive to develop the T&T sector in different countries. Each
country or economy is ranked on a set of indexes.
2. Price competitiveness has particular importance for tourist destinations because lower
costs increase the attractiveness of some countries for many travelers.
D. Sustainable tourism - It refers to tourism that minimizes the environmental impacts and
sociocultural changes, sustains the longevity of a destination, and creates economic opportunity for
local communities.
7. Economic effects of tourism They are direct employment in the hospitality and tourism
industries, support for other industries, multiplier effect, tax revenue, and exports of
locally made products.
8. Social/cultural effects of tourism Tourism growth affects the social/cultural basis of
destinations in both positive and negative ways.
9. Environmental effects of tourism Too often, tourism planners focus mostly on tourism
development without paying attention to retaining and preserving the destination
attributes.
Tourism Development and Investments

A. Tourism events and attractions
1. Events that attract the desired market and harmoniously fit with a community’s culture
can provide beneficial results, particularly if the event regularly reoccurs over years.
2. Attractions may be natural, such as Niagara Falls or the Scottish Highlands, or a beach.
They can also be manufactured, such as the shopping areas of Buckingham Palace, Hong
Kong, the Vatican, or a casino resort.
B. Attractions
1. UNESCO World Heritage Sites
2. Waterfront attractions
3. Casinos as attractions
afa/SICM2020
40 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

4. Indian gaming
5. Stopover tourism. Many visitor destinations are only stopover destinations for travelers
on their way elsewhere.
C. Destination life cycle: Rejuvenating a destination
Destinations will experience a life cycle similar to the product life cycle and eventually go into
decline or the destruction stage.
Segmenting and Monitoring the Tourist Market.

Tourism planners must consider how many tourists are desired and which segments to attract.
Travel motivations, nationality, generational markets such as millennials, and lifestyles are effective
segmentation bases used by destinations.
A. Agritourism. Agriculture-based tourism that includes farms, ranches, and wineries. It provides
rural areas with a means to attract tourists.
B. Space tourism. As private companies provide vehicles to send tourists into space, this form of
tourism will develop. In the near term, it will just be for the very rich.
C. Multiday hiking and religious pilgrimages.
D. Medical tourism. It is one of the fastest-growing and most lucrative tourism markets. Tourists
spend a large amount on medical treatment, stay in top hotels, and often travel around the
country after their surgery. The aging baby boomers and the growing cost of health care will
ensure the growth of medical tourism in the future.
E. Genealogical tourism.
1. Identifying target markets. Collect information about its current visitors
2. Audit the destination’s attractions and select segments that might logically have an
interest in them
F. Classification of visitor segments
1. Group-inclusive tour (GIT)
2. Independent traveler (IT; formerly FIT)
G. Monitoring the tourist markets. Tourist markets are dynamic and a marketing information
system is part of any well-run tourist organization.
Communicating with the Tourist Market

A. Competition for visitors requires image-making. Tourist destinations largely compete on
images held by current and potential travelers.
B. Branding destinations. Branding opportunities for destinations exist at geographical levels such
as country, city, and town (umbrella and sub-brands); specific attractions such as museums and
theme parks; events such as mega-events and festivals; and lifestyle travel packages.
afa/SICM2020
41 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

C. Destination tourism slogans. Slogans are considered an essential element to build brand
awareness and image at country, state, and city levels.
D. Effectiveness of advertising/promotion. In today’s digital age, savvy DMOs are tapping social
and mobile networks, smartphones and tablets, GPS apps, e-commerce, and booking engines to
economically reach consumers 24/7, and globally. Their Web sites can now interactively deploy
video, text, audio, booking systems, photos, and real-time comments from customers.
E. Developing packages of attractions and amenities. An effective way of communicating with
potential travelers is by offering packages. Tourist organizations must develop a package of
attractions and amenities.
F. Creating and managing visitor experiences. Attractions alone do not attract visitors. Most
places seek to deepen the travel experience by providing greater value and making the
experience more significant and rewarding.
1. Co-creation of destination experience and social media
2. Live-Like-a-Local experience
Organizing and Managing Tourism Marketing.

Making a destination tourist-friendly is the task of a central tourist agency, which may be public,
quasi-public, nonprofit, or private. These agencies are referred to as national tourist organizations
(NTOs), STOs, CVBs, or destination management organizations.
Purpose of a Marketing Plan

A marketing plan serves several of the
following purposes within any hospitality
company:
a. Serves as a road map for all
marketing activities of the firm
for the next year.
b. Ensures that marketing
activities are in agreement
with the corporate strategic
plan.
c. Forces marketing managers to review and think objectively through all steps in the
marketing process.
d. Assists in the budgeting process to match resources with marketing objectives.
The development of a marketing plan is a rigorous process and cannot be accomplished in a few
hours. Instead, it is best to set aside one or more days to develop next year’s plan. Many marketing
managers find it best to leave the office along with their staff and all necessary data while writing the
afa/SICM2020
42 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

plan. Constant interruptions that occur in the office are detrimental to the planning process. To be
effective, a new marketing plan must be written each year. Marketing plans written for periods longer
than a year are generally not effective. At the same time, the annual marketing plan must be written
against a longer-term strategic plan that states what the company hopes to achieve, say, three to five
years down the road.
The following is the marketing plan template in details:
I. Executive Summary
II. Corporate Connection
III. Environmental Analysis and Forecasting
IV. Segmentation and Targeting
V. Next Year’s Objectives and Quotas
VI. Action Plans: Strategies and Tactics
VII. Resources Needed to Support Strategies and Meet Objectives
VIII. Marketing Control
IX. Presenting and Selling the Plan
X. Preparing for the Future
Tips for Writing the Executive Summary

a. Write it to top executives.
b. Limit the number of pages to between two and four.
c. Use short sentences and short paragraphs.
d. Organize the summary as follows: Describe next year’s objectives in quantitative terms;
briefly describe marketing strategies to meet goals and objectives; identify the dollar
costs necessary as well as key resources needed.
e. Read and reread before final submit.
Corporate Connection
A. Relationships to other plans
1. Corporate goals: profit, growth, and others
2. Desired market share
3. The positioning of the enterprise or product lines
4. Vertical or horizontal integration
5. Strategic alliances
6. Product-line breadth and depth
B. Marketing-related plans also include the following:
1. Sales
2. Advertising and promotion
afa/SICM2020
43 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

3. Marketing research
4. Pricing
5. Customer services
C. Corporate direction
1. Mission statement
2. Corporate philosophy
3. Corporate goals
Environmental Analysis and Forecasting

A. Positioning statement (although it should be its Roman numeral)
B. Analysis of major environmental factors
1. Social
2. Political
3. Economic
C. Economic drivers of growth
1. The aerotropolis
D. Competitive analysis
1. List the major existing competitors confronting your firm next year.
2. List new competitors.
3. Describe the major competitive strengths and weaknesses of each competitor.
E. Marketing trends: Monitor visitor trends, competitive trends, related industry trends.
F. Market potential
1. Market potential should be viewed as the total available demand for a firm’s
product within a particular geographic market at a given price. It is important not
to mix different products into an estimate of market potential.
2. Provide an estimate or guesstimate of market potential for each major product
line in monetary terms such as dollars and units such as room nights or
passengers.
G. Marketing research
1. Macro market information: Industry trends, socioeconomic and political trends,
competitive information, and industry-wide customer data.
2. Micro market information: Guest information, product/service information, new-
product analysis and testing, intermediary buyer data, pricing studies, key account
information, and advertising/promotion effectiveness.
afa/SICM2020
44 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Segmentation and Targeting.
The heart of any marketing plan is a careful analysis of available market segments and the
selection of appropriate target markets. Not all market segments are appropriate for a hospitality
company. The selection of segments is the result of (1) understanding what the company is and what it
wishes to be and (2) studying available segments and determining if they fit the capabilities and desires
of the company to obtain and secure them. The selection of segments is the result of the following:
a. Understanding who the company is and what it wishes to be.
b. Studying available segments and determining if they fit the capabilities and
desires of the company to obtain and secure them.
Next Year’s Objectives and Quotas

A. Objectives
1. Quantitative objectives: Expressed in monetary terms, expressed in unit
measurements, time-specific, and profit/margin specific.
2. Other objectives: Corporate goals, corporate resources, environmental factors,
competitions, market trends, market potential, available market segments, and
possible target markets.
3. Actions
a. List primary marketing/sales objectives for next year.
b. List sub-objectives for next year.
c. Break down objectives by quarter, month, and week.
d. List other specific sub-objectives by marketing support area, such as
advertising/promotion objectives.
B. Rating system objectives
C. Quotas
1. Based on next year’s objectives
2. Individualized
3. Realistic and obtainable
4. Broken down to small units, such as each salesperson’s quota per week
5. Understandable/measurable
D. Communicating the plan
E. Top management
F. Board of directors or group of investors
G. Subordinates
H. Vendors
I. Other
afa/SICM2020
45 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

J. Action quotas. Break down and list quotas for sales departments, sales territories, all sales
intermediaries, each sales intermediary, and each salesperson.
Action Plans: Strategies and Tactics

A. Cluster marketing
B. Sales strategies
1. Prevent erosion of key accounts
2. Grow key accounts
3. Grow selected marginal accounts
4. Eliminate selected marginal accounts
5. Retain selected marginal accounts but provide lower-cost sales support
6. Obtain new business from selected prospects
7. Distribution strategies
C. Advertising/promotion strategies
1. Select a blend or mix of media.
2. Select or approve the message.
3. Design a media schedule showing when each medium, including non-
commissionable media, will be used.
4. Design a schedule of events.
5. Carefully transmit this information to management.
6. Supervise the development and implementation of advertising/promotion
programs, with particular care given to timetables and budget constraints.
7. Ensure responsibility for the outcome.
D. Pricing strategy
1. Carefully review pricing objectives with departments responsible for pricing,
planning, and implementation.
2. Refine pricing objectives to reflect sales and revenue forecasts.
3. Describe pricing strategies to be used throughout the year.
4. Make certain that price, sales, and promotion/advertising objectives are
synchronized and working in support of corporate objectives.
E. Product strategies
1. Describe the involvement of the marketing department in major strategic product
development.
2. Describe the role of marketing in the new-product acquisition or product
development.
3. Describe ongoing or planned product development programs for which marketing
has responsibility.
afa/SICM2020
46 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Resources Needed to Support Strategies and Meet Objectives

A. Study and then list the need for new marketing/ sales personnel, including temporary
help during the next year.
B. Study and list the type and amount of equipment and space that will be needed to
support marketing/sales.
C. Study and list the amount of monetary support needed next year.
D. Study and list the amount and type of other costs necessary next year.
E. Study and list the amount of outside research, consulting, and training assistance
needed.
F. Prepare a marketing budget for approval by top management.
Marketing Control
A. Salesforce members often wish to protect themselves and give lower sales estimates
than are possible.
B. The company has certain sales objectives it expects based on the needs of the company.
C. Management may have access to marketing research information not viewed by the
sales force.
D. Management may have a history of dealing with the sales force and realizes that
forecasts are generally too high or too low by x percent.
E. Management may be willing to provide the marketing/sales department with additional
resources.
Presenting and Selling the Plan

A. Members of marketing/sales departments
B. Vendor/ad agencies and others
C. Top management
Preparing for the Future

A. The participatory planning process allows people to understand the management
process.
B. People learn to become team players during the process.
C. People learn to establish objectives and set timetables to ensure they are met.
D. People learn the process of establishing realistic strategies and tactics to meet
objectives.
E. People who approach the planning process with a receptive mind and use the marketing
plan will usually find it enhances their professional career.
afa/SICM2020
47 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Marketing Destination Crisis

A destination crisis is normally the result of external factors impacting negatively on the appeal
and marketability of the destination concerned, beyond the direct managerial control of destination
authorities (Beirman, 2003). Such factors may be acts of terrorism, national disasters, health issues,
crime, or international conflict. Since 11 September 2001, there have been more than 3,000 major
terrorist attacks, most of which have impacted the tourism industry. Although terrorism is not a new
phenomenon, what is new is its use to attain political ends and global media coverage. The continuous
publication by the media of the horror of terrorist attacks and their subsequent results is often enough
to sway many international travelers towards reconsidering their vacation plans. Today, COVID
19pandemic happened to impact the tourism and hospitality industry.
DESTINATION CRISIS defines as the result of external factors impacting negatively on the appeal
and marketability of the destination concerned, beyond the direct managerial control of destination
authorities.
Natural disasters can also have a devastating impact on tourism. The Case Study at the end of
this chapter focuses on the impact of the 2004 tsunami on Thailand. In 2005 New Orleans in the US was
hit by Hurricane Katrina, which devastated the city, damaging 80 percent of it and killing 1,836 people.
Before Katrina, New Orleans received about ten million visitors a year, but a year after the disaster,
hotel bookings were still down by 26 percent. In response to the threat of hurricanes, hurricane
guarantees are now offered by many tour operators and travel agents. In 2005, resorts like Beaches,
Sandals, SuperClubs, and Club Med were promoting policies that allowed travelers to rebook for
another time without penalty if a hurricane ruins their vacation.
Responding to Crisis
It has been suggested that there are three steps to the marketing manager of a destination crisis
(Beirman, 2003).
Establishing a crisis management team. The first step is to establish a crisis management team
and assign key roles, such as media and public relations, relations with the travel industry in source
markets, and destination response co-ordination with the local tourism industry. In theory, the middle
of a crisis is not a good time to formulate a strategy for managing image or reputation, but for many
organizations, it is precisely when the conservation begins. Businesses and destinations that are serious
about their reputation need to manage risk as an ongoing issue, and plan for unfortunate events.
Promoting the destination during and after the crisis. Promotional campaigns following a crisis
are often the only way a destination can persuade visitors to travel there. Initiatives can include offering
incentives to restore the market, and ensuring that opinion leaders in source markets visit the
destination to see that recovery is in place. After 11 September 2001, the challenge for many tourism
afa/SICM2020
48 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

organizations was to encourage people to travel again with creative marketing campaigns. Destinations
can also seek marketing support from the public sector.
Monitoring recovery and analyzing the crisis experience. The final stage for marketing in times
of crisis involves monitoring statistical trends and the duration of both the crisis and recovery process.
Analysis of source markets, which under- or over-performed during the crisis, assists the destination
marketers in determining the allocation of marketing resources to each market. Market research will
gauge the effectiveness of marketing campaigns on source markets and segments within those markets.
The Indigo Pearl
The Indigo Pearl Resort is an independent, luxury design property located in Phuket, Thailand.
Michael Nurbatlain joined the resort as a sales manager, but this role quickly expanded to include
managing digital marketing, e-commerce, and social media. Indigo Pearl Resort had witnessed a clear
shift in its market mix: growing from heavy reliance on tour operators to direct bookings and online
channels. MichaelNurbatlain and the team at Indigo Pearl led this growth by developing a presence in a
variety of channels, with Facebook emerging as one of the biggest successes. In just one year, Michael
grew the resort’s Facebook fan page to more than 8,000 followers. “While Twitter is beginning to gain
popularity here in Asia, Facebook has nearly complete market adoption with our customers,” said
Michael. It’s all about planning. “Have a solid plan when it comes to Facebook, and create an editorial
calendar. Be very strict about creating and following deadlines.” Too many people just wake up in the
morning and try to create content on the fly. “If there is no solid plan for 3–12 months, it’s difficult to
consistently deliver good quality results.”
Facebook Contents: The Key to Growth

“Last year we wanted to give something to our Facebook fans,” said Michael. “At the time, we
had about 3,000 fans, and decided to create a photo contest around what symbolizes Indigo Pearl.” Fans
were asked to post pictures, and then vote on their favorites. But Facebook contacted them, saying the
contest setup violated terms and conditions. This forced them to set up an independent voting scheme
allowing their fans to vote, which worked even better in the end. The contest generated great
interaction among existing fans, strengthening their online community. Additionally, the contest
generated a couple of hundred new fans—which was considered a great success at that time.
Latest Facebook Contest: Ultimate Holiday Package

This year’s idea was to set up a new system. Rather than just asking fans to submit pictures,
Indigo Pearl Resort wanted to add another layer of involvement. Michael and Indigo Pearl Resort asked
fans to design their dream three-day holiday package. What would they like to do in Phuket? The resort
was not very strict with the guidelines so that if someone wrote some poetry about the perfect holiday,
afa/SICM2020
49 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

for example, it was still accepted as an entry. “I imagined Mercedes running a promotion around
designing your dream car,” said Michael. “Although I’m a big fan of cars, I wouldn’t know what
horsepower to put in or the details of the engine. While our guests travel a lot, they are not hoteliers, so
it would be somewhat difficult for them to come up with a breakdown package of all the amenities, so
we left it very open.” “We didn’t buy any Facebook ads or spend much time promoting the content.”
Michael worked a bit with the local media to get mentioned on their Web sites and sent out some
tweets to promote it. But no other public relations or press releases were used. Everything was done
through Facebook. “Within days we had 10–15 entries and then we started to get a snowball effect. We
asked fans to send in their pictures, screened them, and placed the photos in the album called Ultimate
Family Package. Once the photo was approved, the contest participants could ask their friends and
family to vote on the entry.” “This is what created a VIRAL MARKETING effect on the resort. One photo
had over 1,000 likes. It surpassed our expectations and we could hardly believe it.”
Lessons Learned
• You work hard to generate friends and followers. Remember they are important assets of your
online community. Treat them with respect and courtesy. Respond to comments whether
they are positive or negative. Thank those who post positive comments and thank those that
post negative comments for bringing the issue to your attention. Remember that other
members of the community will observe how you handle negative comments.
• Online contests have multiple prizes. People realize that winning a contest online is a low
probability. Having multiple prizes increases the perception that winning is a possibility and
will result in more participation.
• Photos are an essential component of Facebook. Pictures of your guests enjoying your
property, tourists enjoying a destination, or guests enjoying a trip you planned will receive
more likes than a long post. Pictures attract attention and it is often easier to post a picture
with a short note than a written post.
• Avoid using Facebook as an advertising medium. Post items that will be of interest to your
community. A special promotion may be of interest, but promotions should be infrequent.
They should account for less than 10% of your posts.
• There should be consistency between the brand values and brand personality communicated
to online communities and the brand values and personality guests observe when they visit
your property and/or interact with your employees.
--------------------------------------------------------------------------
Module 4 – Learning Activity 1 – Lesson 13 & 14 (Short Essay)
afa/SICM2020
50 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

1. Considering the characteristics and classifications of destinations, do you think
Disneyland in all places is an attraction or a destination?
2. Research the marketing activities of a local destination marketing organization. What
promotional tools is it using?
3. Apply the tourism area life cycle to a destination you are familiar with. What does its
position on the life cycle tell you about its target market?.
4. Apply the Destination Brand Benefit Pyramid to a local destination. What does branding
tell you about the destination’s brand?
5. Find an example of a destination that is attempting to attract tourists through events
and festivals. Is such a marketing strategy sustainable?
References:
Back Ki-Joon and Sara C. Parks, “A Brand Loyalty Model Involving Cognitive, Affective and
Cognitive Brand Loyalty and Customer Satisfaction,” Journal of Hospitality and Tourism
Research, 27, no. 4 (2003): 431.
“Dunkin’ Donuts New Advertising Offers a Rallying Cry for 2009: ‘You Kin’ Do It’,” PR Newswire
(January 5, 2009).
“Dunkin’ Donuts New Advertising Offers a Rallying Cry for 2009: ‘You Kin’ Do It’,” PR Newswire
(January 5, 2009).
James H. Gilmore and B. Joseph Pine, II, “Differentiating Hospitality Operations vis Experiences,”
Cornell Hotel and Restaurant Administration Quarterly, 43, no. 3 (2002): 88.
Kotler, P., and Keller, K. L. (2016). Marketing Management (New York: Pearson Education USA): 52
Kotler, P., Kartajaya, H., and Setiawan, I. (2010) Marketing 3.0 (New Jersey: John Wiley & Sons,
Inc., USA).
Ritz Carlton Website accessed September 16, 2012,

http://corporate.ritzcarlton.com/en/About/GoldStandards.htm.
Sui Jun Jian and Seyhmus Baloglu, “The Role of Emotional Commitment in Relationship Marketing:
An Empirical Investigation of a Loyalty Model for Casinos,” Journal of Hospitality and Tourism
Research, 27, no. 4 (2003): 483.
afa/SICM2020
51 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

Victor J. Cook, Jr., William Mindak, and Arch Woodside, “Profiling the Heavy Traveler Segment,”
Journal of Travel Research, 25, no. 4 (1987).
William R. Swinyard and Kenneth D. Struman, “Market Segmentation: Finding the Heart of Your
Restaurant’s Market,” Cornell Hotel and Restaurant Administration Quarterly, 27, no. 1
(1986): 96.
=====================================================
End of Lesson 13 & 14
=====================================================
Student
You are required to read the case study and answer the questions below. Submission will be advised by
the professor.
######################################################################
MODULE 4 – CASE STUDY

Marketing After a Crisis: Recovering From the Tsunami in Thailand
The warning came too late or not all on 26 December 2004, when an earthquake off the coast of
Sumatra triggered a tsunami that struck more than a dozen countries throughout the Indian Ocean. The
tsunami had an overwhelming human and physical impact. A total of 223,492 people lost their lives, a
further 43,320 are still missing, some 400,000 homes were reduced to rubble, 1.4 million people lost
their livelihoods, and more than 3,000 miles of roads and 118,000 fishing boats were damaged or
destroyed. The disaster caused US$10 billion in damages in barely 24 hours. The world responded to the
plight of the tsunami’s victims on a massive scale and with unprecedented generosity. In the weeks
following the disaster, multi-agency assessment teams calculated that approximately $10 billion would
be needed to reconstruct the destroyed communities. In response, official and private pledges reached
$13.6 billion.
Before the tsunami, tourism in Thailand was at an all-time high, continuing its strong growth
with a 20 percent rise from the previous year with visitor numbers reaching 12 million. However, the
tsunami had devastating effects on Thailand’s Andaman coast, leaving more than 8,000 people – about
half of them foreign tourists – dead or missing. Damages and losses were close to $2.2 billion, hitting the
tourism sector particularly hard. On Ko Phi Phi island, for example, the tsunami killed more than 1,000
people, wiped out many restaurants and rooms, shattered coral reefs, and moved white sand beaches
into coconut groves. For Phuket, tourism is a very important source of income and employment. The
afa/SICM2020
52 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

industry employs about 300,000 people, many from other Thai provinces. However, while the United
Nations said the tsunami-affected more than 500 Thai villages in six provinces, many popular beaches
were relatively unscathed or have been quick to recover their natural beauty, if not their usual number
of visitors. ‘People watched TV news and thought that everything was damaged. But that wasn’t true,’
said Suwalai Pinpradab, Tourism Authority of Thailand’s (TAT) southern regional director. But Thailand
needed to get the word out that it was open for business. Potential tourists were canceling their
bookings because they assumed that all the hotels had been destroyed, and this was not the case. For
example, only 12 percent of Phuket’s hotel rooms were damaged.
To combat the problem, tourism experts representing 42 countries, the private sector, and
several international organizations, drew up the Phuket Action Plan which spelled out a comprehensive
series of activities intended to restart the region’s economically vital tourism industry, which had stalled
after the tsunami. The main objective was to restore travel confidence in the region, with marketing
and communications playing a key role. Marketing campaigns began to attract tourists back to Thailand.
Phuket’s hotel occupancy rates, which dipped below 10 percent in January, rose to 40 percent in
February, helped by the first planeloads of package tourists from Scandinavia, which landed in Phuket
on 2 February to much local media fanfare. In 2005 Phuket received 2.5 million visitors, compared with
4.2 million in 2004. Pinpradab said that because there were fewer tourists, everybody wanted to serve
those who came. ‘We’ve realized that tourism is very important to us. So we treat tourists much better
than before.’ To combat the loss of tourism at a local level, Phuket’s tourism board partnered with local
businesses to offer lower airfares, two-for-one deals, and extra meals included in the price of hotel
rooms. Laguna Phuket, a company that owns five hotel properties in and around Phuket, cut hotel rates
by 50 percent to entice tourists to return. Managing director James Batt said, ‘We are trying to position
Phuket as a summer destination for the British. In addition to offering special packages and lower room
rates, we have launched a $208,000 campaign with UK operators to revive the business.’
At an international level, the Thai cabinet approved a $125 million project to rebuild and market
the tourism industry in Thailand. The Thai government partnered with Thai Airways International (TAI)
and others to promote its ‘Best Offer’ – three days and two nights at any of 11 different resorts for as
little as $80 for the whole stay. Besides, a highly publicized series of events was planned, beginning with
a religious ceremony where monks and priests ‘freed’ the souls of those lost during the tsunami and
permitted the tourists to return to southern Thailand. This took place on the first anniversary of the
tsunami. The TAT even found something positive to say about the effects of the tsunami. Juthamas
Siriwan, governor of TAT, said that environmental studies showed that the tsunami cleansed the water
and beaches, improving quality and helping the ecosystem. The TAT planned to capitalize on this by
restoring and improving tourist hot spots. TAT also partnered with TAI and the Tourism Council of
Thailand (TCT) to organize two ‘Mega’ familiarization trips to the south of Thailand. The second trip,
which took place in July 2005, hosted 270 tour operators and travel journalists from visitor generating
countries in Northeast Asia and the Middle East, while the first trip was targeted at the remaining
afa/SICM2020
53 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

international market. These trips were part of the Andaman Recovery plan to promote Thailand as a
safe and beautiful destination, and designed to show tour operators that it was open for business. TAT
also contacted corporations to offer incentives to stage conferences in Phuket. TAT was hoping that
business travelers from Thailand and nearby Singapore, China, and Japan would occupy beaches and
pools vacated by Westerners. This strategy of focusing on regional tourism helped Bali recover from the
2002 bombing, which killed more than 100 foreigners and emptied resorts for months. Longer-term
recovery efforts are still underway, but the tourism sector suffered revenue losses of about $1.4 billion,
and the rebound in arrivals has been slower than expected. The government continues to support
measures to speed up the recovery with packages and incentives to encourage tourists to return to the
affected areas. The government has also invested in the establishment of an early warning system and
disaster preparedness planning.
Sources: Johnson, C. (26 March 2005) ‘Thai beaches bounce back – but where are the tourists?’ The Globe and Mail, T6; Anon.
(2005) ‘Tourism sector hopeful about tsunami recovery’, WTO News, Issue 4, 1, 3; Anon. (2005) ‘Solidarity overcomes
competition’, WTO News Issue 1, 1,3,7; United Nations (2006) ‘Tsunami recovery: taking stock after 12 months’, United
Nations, Office of the Secretary-General’s Special Envoy for Tsunami Recovery.
Questions
1. Overall, would you say that the tourism authorities in Thailand responded well to the
tsunami and its impact on tourism?
2. What more could have been done to promote Thailand after the tsunami?
3. Restoring travel confidence is often the major marketing challenge for a destination after
a crisis. How did tourism officials in Thailand cope with this challenge?
4. Is there more they could have done to restore consumer confidence?
5. Tourism in Thailand has more recently been impacted by political instability and terrorism.
How should (or how did) the Tourism Authority of Thailand (TAT) respond to the latest
crisis?
=====================================================
afa/SICM2020
54 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
Couse Rubrics for Module 2 as appropriate

SHORT ESSAY AND REACTION PAPER RUBRICS:
Commendable Appreciable Acceptable Weight Total

Criteria (3 points) (2 points) (1 point)
The content is clear, The content is accurate and The content is not
comprehensive, accurate, persuasive and major points comprehensive and /or
and persuasive and the major are stated, However, persuasive and the major 2 6
points are stated clearly and responses are adequate and points are addressed, but not
Comprehensiveness are well supported. The address the topic. The well supported. Responses
responses are excellent, content is vague and are inadequate or do not
timely, and address the topic. examples are few. address the topic with no
Specific examples are used. examples at all.
The organization and The organization and The organization and

structure of the essay are structure are mostly clear structure are not easy to 3 9
clear and easy to follow. The and simple to follow. The follow and the transitions
Organization & Structure
transitions are logical and transitions are present but need improvement. The
maintain the flow of thought not logical enough to conclusion is missing, or if
throughout the discussion. maintain the flow of provided, does not flow from
discussion. the body of the essay.
The essay is written with a 2 6
The essay is written with an
good form of discussion with The essay is written with an
excellent form of discussion
Grammar and form of a few grammatical errors and acceptable form of
with minimal grammatical
discussion an acceptable choice of discussion with many
errors and an acceptable
words. grammatical errors and an
choice of words.
acceptable choice of words.
The requirement was The requirement was 1 3
The requirement was
submitted on time and has submitted on time and has
On-time and complete submitted after the deadline
accurately considered all the few notable points as to the
submission and has few notable points
details of the essay. details of the essay.
as to the details of the essay.
Total = /24
CASE STUDY RUBRICS
Criterion Excellent Fair Need Improvement Weight Total

(3 points) (2 points) (1 point)
Content and Substance Demonstrates a clear and Demonstrate a weak flow of Focus is lost or ideas are
concise flow of ideas; ideas and with hard to follow; lack of
passionate interest in the inconsistencies and enthusiasm or interest; 2 6
topic. deficiency in content and limited engagement with the
substance. class.
Quality of Analysis Demonstrates a superior The writer has good control The writer shows an
understanding of the topic of the topic he or she is understanding of the topic, 3 9
he or she is writing about. writing about. Main ideas but some ideas are not fully
The main ideas are fully are adequately developed. developed.
developed.
Concluding Sentence The analysis has a detailed The analysis has a detailed The analysis is not 2 6
conclusion restating the conclusion restating the completely convincing and
claim or main points and claim or main points but has the conclusion is not fully
wrapped up the paper little doubt is left in the clear.
satisfactorily. reader's mind.
Grammar, Punctuation & The rules of grammar, usage, The rules of grammar, usage, The case study analysis 1 3
Spelling and punctuation are and punctuation are contains a few grammatical,
followed; spelling is correct. followed with minor errors punctuation, and spelling
in one assigned part. errors.
Total = /24
afa/SICM2020
55 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340
LEARNING PORTFOLIO RUBRICS

 This includes the collection and reflection of major accomplishments during the
semester in the subject matter.
 This shall include, lectures, learning competencies, mode of delivery, learning exercises,
etc.
 Recommended to have at least 5 pages, at a font style of Times New Roman, at a font
size of 12. - 7 out of 12 is rated PASS.
 Rubrics to be used for this requirement would be:
Criteria Commendable (3 points) Appreciable (2 points) Acceptable (1 point)

The paper exhibited all the The paper exhibited the majority The paper exhibited some of the
required details It also includes of the required details It also required details It also includes
Comprehensiveness the goals and accomplishments of includes the goals and the goals and accomplishments of
both students and faculty. accomplishments of both students both students and faculty.
and faculty.
The paper was written in an The paper was written in an
The paper was written in a good
excellent structural form and acceptable structural form and
Flow and sequence of structural form and content. It is
content. It is sequentially content. It is somehow
discussion somehow sequentially organized
organized as to thoughts and sequentially organized as to
as to thoughts and analysis.
analysis. thoughts and analysis.
The paper was written with an The paper was written with a good The paper was written with an
Grammar and form of excellent form of discussion with form of discussion with few acceptable form of discussion with
discussion minimal grammatical errors and grammatical errors and an a few grammatical errors and an
an acceptable choice of words acceptable choice of words. acceptable choice of words.
The requirement was submitted The requirement was submitted The requirement was submitted
on time and has accurately on time and has few notable after the deadline and has few
Completeness and
considered all the details of the points as to the details of the notable points as to the details of
on-time submission
paper. paper. the paper.
--- NOTHING FOLLOWS ---
Course Requirements:
a. Those who are not officially enrolled (not in the official class list and those who are not
in the Google classroom) are not allowed to be accepted in class.
b. Flexible Learning Modalities. An instructional delivery platform that offers an approach
to the usage of the hybrid model. This will utilize the existing LMS of SICM using Google
Classroom and Google Meet as the primary mode of the synchronous approach of
online classes. Also, other modes of synchronous approach can be used (e.g. messenger
chat, etc.). However, the asynchronous part of the course will be for alternative learning
tasks, assignments, course requirements, etc.
c. Online Class Participation – Much of the learning in this course will occur in an online
class as you share your experiences, questions, and analyses. Leniency in all the
submission of the activities and requirements will be implemented. Note that your
class participation grade is not simply a function of the "air time" you take up; you will
be evaluated on how effectively you contribute to the learning of the class and how
thoughtfully you respond to questions/activities and requirements. The regular class
afa/SICM2020
56 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

sessions consist of lecture/online discussion, and online class participation (either online
collaboration or group activity). In an online lecture/discussion, we will focus on
concepts, theories, and examples. Open-line communication will be implemented in
this flexible online learning system for the accomplishment of all lesson task
assignments and assessments.
d. Online Quizzes – either short or long quizzes that may be unannounced.
e. 2 Major Online Examinations. There are two exams (Midterm and Final Examinations)
not cumulative. The exams may also cover various class activities during the regular
class meetings. No make-up exam will be allowed unless otherwise officially excused
with the instructor’s prior permission. Exam Permit is required every periodical
examination
f. Class Standing (attendance, behavior, recitation, assignment, and exercises) quizzes and
periodic examination, project.
Grading System:
Class Standing 40 %
Quizzes 30 %
Periodic Exams 30 %
_____________________________________
Total 100 %
Course Policies:
 Attendance Policy:
 In the Hospitality industry, punctuality and attendance count. Accordingly,
classes begin promptly and students are expected to attend all class sessions
and/or advise the instructor of his/her attendance during asynchronous tasks.
The CHED allows only a maximum of four (4) absences in an 18-week term. Your
instructor keeps attendance sheets as part of the official record.
 Tardiness – Students in this course are expected to be professional; all students
must come to class before the schedule; students who come after the schedule
is considered late; three (3) late is equivalent to one absent; students who come
to class after 30 minutes may still be accepted, but they are considered absent.
 Students who are absent or late is expected to catch up with their missed
lessons and activities; a student’s absence is not an excuse for not being to
comply with the requirements, especially those requirements that are due on
the day s/he will come back to class.
afa/SICM2020
57 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

 Classroom Policy:
 Mobile phones should be turned off or kept in silent mode during class hours
during synchronous tasks.
 English – all communications whether in class or online must be in English. Face-
to-face and online inquiries are entertained only during consultation hours.
 The SICM dress code will be strictly enforced.
 Eating or drinking in class will not be allowed DURING synchronous tasks.
 Dishonesty in all forms will be strongly penalized.
 Submission of requirements is scheduled and should comply with the deadline.
 No grade below 80% for the professional course.
 Observe Netiquette during synchronous tasks.
 Positive attitude toward other students, being patient with a fellow student that
may have a different learning style and pace.
 Individual and team performance at the highest level shall be adhered to and be
in their best professional behavior, as future managers and leaders in the
hospitality and tourism industry.
 Students and the professors will use all modes and means of communication
(such as SMS, Messenger, Email, Google Classroom, and available platform to
conduct learning procedures, consultations, coaching, and mentoring.
 The student will be given ample time to finish and accomplish all the activities
and requirements given by the professor in line with the guidelines of the
institution.
 Intellectual Property (IP) Policy
 Students are expected to exhibit a culture of integrity, both in the academic and
social aspects. Hence, all the work that they will submit is expected to be
original.
 Students are expected to paraphrase/use their original words whenever getting
ideas from other authors (including the internet).
 Students are expected to follow the University Policy in Intellectual Property, as
stated in the latest edition of the Student Handbook.
 Students are hereby directed to espouse the highest level of integrity in
scholarship and academic standards. SICM, as a policy, emphasized proper
attribution or credit to someone else’s ideas, thoughts, words, or methods of
learning, research, or study. Considered as a form of academic fraud, plagiarism
is a serious offense. Essentially, it includes failing to give citations of other
people’s work or simply copying an individual’s output without permission
afa/SICM2020
58 | P a g e
TEL.NO.:525-94-16 to 19
FAX NO.: 524-7340

 Data Privacy Policy: SICM is committed to protecting the privacy and confidentiality of
the personal information of its students, faculty, staff, and administrators. On the other
hand, every student, faculty, staff, and administrator bears personal responsibility for
complying with this Policy in the fulfillment of their respective responsibilities
Date: Consultation: Prepared by: Checked by: Approved by:
August Every Monday

2020 10 am to 12
noon DR. ANTONINO F. SR. MARY GRACE M. SR. MA. MYRNA C. BAS
ALEJANDRO BARCINAS, DC President and VP for
Faculty Program Chair Academics
afa/SICM2020
59 | P a g e

Hospitality and Tourism Marketing Module 4 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Hospitality and Tourism Marketing Module 4 PDF

Uploaded by

Copyright:

Available Formats

Santa Isabel College of Manila

210 TAFT AVENUE, MANILA, PHILIPPINES

MODULE IN TOURISM AND HOSPITALITY MARKETING

BSHM – Third Year

MODULE IN TOURISM AND HOSPITALITY MARKETING

SANTA ISABEL COLLEGE OF MANILA is an audacious Christ-Centered educational institution

OUR CORE VALUES

 COMMITMENT TO VINCENTIAN EXCELLENCE

OUR ENABLING VALUES

MODULE IN TOURISM AND HOSPITALITY MARKETING

NO PART OF THIS MODULE MAY BE REPRODUCED IN ANY FORM, BY PHOTOCOPYING,

MODULE IN TOURISM AND HOSPITALITY MARKETING

COURSE CODE: HTM 302

COURSE TITLE: TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

LESSON 10 – DISTRIBUTION CHANNELS

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

LESSON 10 – DISTRIBUTION CHANNELS

MODULE IN TOURISM AND HOSPITALITY MARKETING

Nature and Importance of Distribution Systems

MODULE IN TOURISM AND HOSPITALITY MARKETING

Nature of Distribution Channels

MODULE IN TOURISM AND HOSPITALITY MARKETING

Why Are Marketing Intermediaries Used?

Distribution Channel Functions

MODULE IN TOURISM AND HOSPITALITY MARKETING

Number of Channel Levels

MODULE IN TOURISM AND HOSPITALITY MARKETING

Hospitality Distribution Channels

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

Selecting Channel Members

Responsibilities of Channel Members and Suppliers.

MODULE IN TOURISM AND HOSPITALITY MARKETING

Business Location. There are four steps in choosing a location:

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

Module 4 – Learning Activity / Application – Lesson 10

MODULE IN TOURISM AND HOSPITALITY MARKETING

LESSON 11 & 12 – PROMOTIONAL MIX STRATEGIES

MODULE IN TOURISM AND HOSPITALITY MARKETING

Promotion Mix Strategies

Integrated Marketing Communications. The company carefully integrates its many

MODULE IN TOURISM AND HOSPITALITY MARKETING

C. The need for integrated marketing communications

MODULE IN TOURISM AND HOSPITALITY MARKETING

Steps in Developing Effective Communications

Setting the Total Promotion Budget and Mix

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

Major Activities of PR Departments

MODULE IN TOURISM AND HOSPITALITY MARKETING

MODULE IN TOURISM AND HOSPITALITY MARKETING

PR Opportunities for the Hospitality Industry

MODULE IN TOURISM AND HOSPITALITY MARKETING

Relationship Marketing and Strategic Alliances.

Recruiting and Selecting Sales Representatives.