DTM50153

Tourism and
Hospitality
Marketing
CHAPTER 1: OVERVIEW OF MARKETING
 Learning Content:

1.1. Demonstrate mastery of knowledge and understanding

of the concept and principles of marketing
1.1.1 Explain the meaning of marketing
1.1.2 Explain the functions of marketing
1.1.3 Explain marketing concepts
1.1.4 Identify the unique marketing approaches required
in tourism and hospitality industry
 1.1.1 Definition of Marketing

American Peter F Drucker,

Kotler, Bowen, &
Marketing 1954
Makens (2006)
Association

A social and managerial A planning and

process by which implementation process
of concept, price, Marketing is not just a
individuals and groups
promotion and idea selling process; neither
obtain what they need
distribution, product and specific to one activity
and want through services to form a only. It contains all
creating and exchanging transaction that satisfy business activities
product and value with the individual and
others. organization objectives.
WHAT IS MARKETING? BASIC MARKETING CONCEPT

- Marketing is the Market

management process
through which goods Exchange,
transactions &
Needs, wants and
demands
relationships
and services move from
concept to the customer.

- It includes the Marketers Offerings

coordination of 4
Values &
elements called the 4 P’s. satisfactions
1.1.2 Functions of Marketing
1. Environment analysis and Marketing Research
• Monitor the external factors ( economics and competitors)
and data collection
• To solve a marketing specific issues.

2. Consumer Analysis
• Investigate the consumer characteristic, their needs and
buying process.

3. Products Planning (Product Service and Ideas)

• Product development and improvement, product diversity,
product placing, brand name and choice, to end the
production of certain product.
1.1.2 Functions of Marketing
4. Planning distribution
• Create a networking, physical distribution , inventory
management, warehousing, transportation, product
placing, wholesaler and retailer.

5. Promotion planning
• Combination of advertising, publicity, personal sales,
sales promotion, public relation and the other form
of communication.

6. Price Planning
• Determine the level of price strategy, buying roles,
price changing and the using of price as an active or
passive factor.
1.1.2 Functions of Marketing

7. Social Responsibilities
• Responsibilities to offer a safe, ethical and
useful product, service and ideas to a
consumer.

8. Marketing Management
• Marketing process (Planning and
implementation) of marketing strategy, which
are the product, price, place and promotion
through business transaction that can
maximize consumer satisfaction.
 1.1.3 Marketing Concept

1. Product Concept
• This idea assumes that
• Under this concept, marketing
consumers will favor products
strategy focuses on making
that offer the most quality,
continuous product
performance and innovative
improvement.
features.
1.1.3 Marketing Concept

2. Selling concept
• Consumers has to be influenced • Aim is to get every possible
to buy through an aggressive sale, not to worry about
marketing activities, namely satisfaction after the sale or the
promotion and sales. revenue contribution of the sale.
• Hold that consumers, if left
alone, they will not buy any
marketed product.
1.1.3 Marketing Concept

3. Modern Marketing Concept

• Objective is customer satisfaction
• Consumer oriented
• Creating long-term customer relationship
• Sustained promotional activities
• To ensure profitability
1.1.3 Marketing Concept

4. Social Marketing Concept

• To determine the needs and wants and interests of target

market
• Deliver the desired satisfactions more effectively than
competitors in a way that preserve or enhance the
consumer’s and the society’s well being.
• Always doing what ‘s best for consumers and society in the
long run.
• Involve many stakeholders
1.1.4 Five Unique Marketing Approaches/Ways/Method
Required in Tourism and Hospitality Industry
1. Use of the more than 4 Ps
• Price, Place, Promotion, Product, People, Packaging,
Programming and Partnership
• People: Hospitality and travel is a people industry
• Packaging and Programming: Customer oriented concept.
• Partnership: Cooperative marketing efforts among
complementary hospitality and travel organizations.
 1.1.4 5 Unique Marketing Approach Required in
Tourism and Hospitality Industry

2. Greater significance of word-of-mouth information

• The opportunities for customers to sample services
prior to purchase them are limited in hospitality
and travel industry. The rule is “you have to buy to
try”.
• This places a premium on words-of-mouth
advertising.
• Providing a consistent quality of service and
associated facilities.
 1.1.4 5 Unique Marketing Approach Required in
Tourism and Hospitality Industry

3. More use of emotional appeals in

promotion
• Because of the intangible
nature of services, customers
tend to make more use of
emotional appeals when they
buy.
• In order to make resort,
vacation package or attraction
appeal to customers, it must
be given a distinctive
personality.
1.1.4 5 Unique Marketing Approach Required in
Tourism and Hospitality Industry

4. Greater difficulties with new-concept testing

• Process of evaluating responses to a
concept before it reaches market.
• Services can be copied more easily than
products.
• To be alert for new and innovative
customer services.
• Leading cooperation aware.
• Constantly test marketing new concept.
 1.1.4 5 Unique Marketing Approach Required in
Tourism and Hospitality Industry

5. Increased importance of relationship with complementary

organizations
3 unique relationships among organizations in our industry
that have significant impact on the marketing of hospitality
and travel services. The 3 unique relationship is:
i. The relationship between supplier, carriers, the travel
trade and destination marketing organization.
ii. The destination mix concept: Relation concept with
the 5 components attraction and events, facilities,
infrastructure, transportation and hospitality
resource.
iii. Visitor and residents: Both intermingle and share the
same services and facilities.