MARKETING TOURISM MIDTERM

Marketing
- involves the interaction and interrelationships among consumers and producers of
goods and services, through which ideas, products and services and values are created
and exchanged for the mutual benefit of both groups.
Market
- is a set of actual and potential buyers of a product
Need
- State of self-deprivation or deals with the basic human requirement for survival.
Wants
- are directed to specific objects that might satisfy the needs.
Demands
- Is the wants for specific product with the ability to pay for it
- Are happens when we sum up wants plus buying power
Marketing Planning
- This involves analysis of the marketing environment in relation to the potentials of
one’s business. It involves the setting up of objectives and the evaluation of the
milestones that the company has reached.
Price
- is the value that the sellers puts on the product or service.
People
- Refers to the team involved in the delivery of the project and should possess the skills
and qualities needed to ensure its success.
Place
- is the means by which the products or services reaches the consumer. The product
should be available on where the customer expects to find it.
Product or Service
- is what the company is offering to satisfy a consumer’s needs or wants. The product
or service should do what the customer wants or needs it to do.
Promotion
- It is a strategic plan by which customers are informed by the product or service to
avail.
Process
- involved in a product’s delivery will significantly affect the customer’s experience,
level of satisfaction, and lifetime value to your business.
Physical Evidence
- refers to the physical context and paraphernalia (such as receipts, “thanks for
ordering” card, confirmation emails, and PDF invoices) that come along with the
product.
Intangible
- Service products cannot be tasted, felt, seen, heard or smelt.
Inseparability.
- For many services, the product cannot be created or delivered without the customer’s
presence.

Heterogeneity.
- Service delivery quality depends on who provides the services.
Perishability.
- Services cannot be stored.
Seasonal.
- does not refer to seasons of the year or weather condition. It is also refers to
behavioral patterns of the travel market.
Substitutable.
- Competition in the travel and tourism industry is intensifying.
Marketing Information System.
- enables the organization to compile an updated set of information about its
customers, competitions, and the organizations capability and effectiveness.
Marketing Planning.
- This involves analysis of the marketing environment in relation to the potentials of
one’s business. It involves the setting up of objectives and the evaluation of the
milestones that the company has reached.
Planning Tactical Campaigns.
- This step ensures that practical and realistic tactical campaigns are conducted in
support of the comprehensive marketing strategy.
Marketing Operation
- This process involves the challenging part of implementing the planned strategic and
tactical campaigns by coordinating with all stakeholders,
Monitoring and Control.
- This involves the ongoing process of evaluating sales data and financial performance
versus marketing activities conducted.

Marketing Information Management

- Entails gathering information about the customers to better serve their needs and
improve decision making.
Financing
- involves planning to ensure that resources are available to maintain and improve the
business.
Pricing
- ensures that the value and cost of goods and services offered to customers will be at the
level that customers are willing to pay.
Promotion –
- prepares the various promotional strategies that will enable the products to
introduced and sold to the customers.
. Product/Service Management –
- involves designing, developing, maintaining, improving, and acquiring products and
services to meet the needs of the customers. Researching, testing, and gathering
customer input are essential activities of the product and service management
function.
Distribution
- involves bringing the products and services to the customers in the best way possible.
Selling –
- is the ultimate measure of marketing success. Strategies on following up sale, closing
the sale, and making a repeat sale are crucial tasks of marketing.
Risk Management –
- involves identifying potential risks associated with marketing decision and activities
and developing a strategy for dealing with and reducing the risks. Businesses must
consider the risks associated with each marketing mix element.
Market segmentation
- is the process of dividing a market of potential customers into groups, or segments,
based on different characteristics.
Market Segment
- is a subgroup of people or organizations that have one or more characteristics in
common that cause them to have the same product needs.

Lumsdon (1997) identified six characteristics of a

segment as follows:
1. Identifiable.
- The people who comprise the segment can be located and identified such that
targeting them would be easy.
2. Cohesive.
- The consumers should be part of a whole specific qualities are common to all.
3. Measurable.
- The marketer should be able to estimate the size and potential spending of the
members.
4. Accessible
- The members of the segment should be accessed by marketing efforts and
promotional activities to be conducted.
5. Substantial.
- The segment should be large in order to be substantial.
6. Actionable.
- The company has enough resources and commitment to enable effective penetration
of the identified segment to ensure effective positioning.
Geographic
- It means dividing the market into groups of customers who share same geographic
location.
Demographic
- It refers to segmenting the market based on variables such as age, sex/gender,
income, occupation, religion, race.
Psychographic
- It divides the consumers based on different psychographic profiles such as social class,
lifestyle, and personality characteristics.
Behavioral
- refers to dividing groups based on their knowledge, attitude, use of response to a
product or service.
Market Targeting
- a process of evaluating each segment’s attractiveness and selecting one or more of
these market segment in which to operates one’s business.
undifferentiated marketing
- a company ignores market segmentation and goes after the entire market with only
one market offer.
differentiated marketing,
- Approaches the market by targeting several market segments using separate offers
per segment.
Concentrated Marketing,
- Practiced by companies with limited resources. It pertains to getting big share of a
small market rather than a small share of a large market.
Market Positioning
- It refers to developing competitive position for the product and an appropriate
marketing mix.
- identify the product’s unique characteristic in a way that will differentiate it in the
marketplace.
- goal of market positioning is to get your customers to perceive your brand as distinct
and superior.
Unique Selling Proposition
- is a term used to identify what makes the product or service different from others.
Competitive Advantage
- is the product’s advantage over competitors, which is gained by offering greater value
either by offering lower prices or providing more benefits to justify higher prices.
Top of Mind
- is the highest level of recall that a brand receives. It means that the brand occupies
the top spot in a consumer’s mind.
Consumer
- is a person (or group) who pays to consume the goods and/or services produced by a
seller.
Customer Behavior
- is the way customers select, use, and behave before and after they have purchased
hospitality and tourism services.
Motivation
- is derived from the word “motive” which means need, desires, wants, or drives within
the individual. It is the process of stimulating people to actions to accomplish the
goals.
Maslow’s Hierarchy of Needs
- most popular theory that will outline the level of needs of an individual.
Physiological Needs
- pertains to basic needs for survival.
Safety Needs
- refers to personal and perceived degree of safety and security.
Belongingness
- refers to acceptance in social group.
Esteem and Status
- refers to prestige and status
Self Actualization
- refers to the goal of fulfillment.
Push Factors
- are those that make you want to travel
Pull Factors
- are those that affect where you would want to go. Further
Culture
- Plays a vital and important role in the consumer behaviour of the people. It refers to
the cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings,
hierarchies, religion, notions of time, roles, spatial relations, concepts of the universe,
and material objects and possessions acquired by a group of people in the course of
generations through individual and group striving.
Age
- refers to number of years a person has been living.
Gender
- influences consumer behavior.
Social Class
- is one’s position within the society and it is determined by factors such as income,
wealth, education, occupation
Lifestyle
- is a person’s pattern of living as expressed in one’s activities, interest, and opinions.
Life Cycle
- refers to the stages an individual goes through in their lifetime.
Personality
- refers to distinguishing psychological characteristics that lead to relatively consistent
and enduring responses to the environment.
Reference Groups
is a group of people whom you refer to, while making buying decisions.
Advertising Influences
- is a series of related advertisement with a common theme or idea that focuses on a
specific product, service, brand, or message.
Promotional Influences
- is any form of communication that a company uses to create a favourable image of its
product or services.

Initiator
- are the players who recognize that there is a need to be satisfied or a problem to be
solved.
Gatekeepers
- are individuals who press the stop/go button in the process.
Buyers
- are the professional function within an organization generally responsible for
purchasing.
Decider
- are responsible for making the final deal or decision.
Users
- are those who put the service or product into operations once the deal has been
clinched.
Influencers
- are those who may have a persuasive role in relation to the deciders.
Extended problem solving:
- the consumer is likely to have a deep level of commitment, to make a detailed search
for information, and to make an extensive comparison of the alternatives.
Limited problem solving:
- the consumer will have some degree of knowledge or experience already, but many
factors will be taken for granted and the information search will be far more limited.
Habitual problem solving;
- This is a repeat purchase of a tried and tested short break or day excursion, which
requires little or no evaluation.
Need Recognition
- At this stage, the buyer recognizes a problem or need
Information Search
- Information may be obtained through personal and commercial sources and the
internet.
Evaluation of Alternatives
- This stage allows prospective customers to make detailed comparisons of different
product or services providers since they already have sufficient information.
Purchase Decision
- This is the stage most awaited by tourism marketers. the marketers should facilitate
speed and convenience.
Post-Purchase Evaluation
- The most important stage for product and service providers to ensure that customers
have a good experience with the product.
Service Quality
- defined in businessdictionary.com is an assessment of how well a delivered service
conforms to the client’s expectation.
Economic Man Model
- In this model, consumers follow the principle of maximum utility based on the law of
diminishing marginal utility.

− Lower the price of the product more will be the quantity purchase.

− Lower the price of the substitute product, lower will be the utility of the original product
purchase.
− When more income is earned, or more money is available, quantity purchased will be
more.
The Psychoanalytic Model
- The model suggests that human needs operate at various levels of consciousness. His
motivation which is in these different levels, are not clear to the casual observer.
Sociological Model
- This is concerned with the society. A consumer is an element of the society and he
may be a member of many groups and institutions in a society. His buying behavior is
influenced by these groups.
Communication
- defined as transmitting, giving, or exchanging information using oral or written
means.
Awareness, Interest, Desire, Action Model
- identifies cognitive stages an individual goes through during the buying process for a
product or service.
Private and non-profit sectors
- Include industry associations which have been established to protect special interest
groups, such as travel agency associations
Public sector services
- Cover either national, regional, or provincial tourism organization. They come up with
marketing programs to promote their destinations to both intermediaries.
Suppliers
- Transportation Industry - is crucial to the success of Tourism and Hospitality Industry.
Without an efficient transport system and road networks, tourist would not be
encouraged to come to the destination.
- Accommodation Sectors - cover huge part of tourist’s expenditures during travel.
Variety of accommodation services to meet the customer’s needs, preferences, and
budget.
- Food and Beverage Sector - is another important supplier of the tourism industry.
Ranges to establishment serving local food to multinational franchise restaurants.
Attractions - are basic requirements in having a successful tourist destination. These
can be classified as natural and man-made.
 - Events and Conferences - play a key role in attracting both leisure and business
travellers to a destination be classified as natural and man-made.
Travel Intermediaries
- Help bring the tourism product to consumer. These area also known as channels of
distribution. These includes travel agents, tour operators, web-based distributors etc.
Tourists
- The center of the tourism industry. The tourist satisfaction is the utmost goal of all
other key players in the industry.
Consumer Marketing
- PRODUCT is anything that can be offered to market for attention, acquisition, use or
consumption that might satisfy a want or need.
Tourism Marketing
- PRODUCT have different components that make up the over-all tourism product but
there are many products and services that form the entire tourism experience
Destination Attractions
- .is a collection of attractions, which is the element of tourism product that pulls
people to a destination. These are what the visitors wants to see
Destination Facilities
- A wide range of tourist facilities within the destination will help the tourist enjoy the
destination attractions. These include accommodation, facilities
Accessibility.
- This compose of the areas or pathways that connect people from one place to
another.
Image.
- helps the visitor form expectations of what they will experience.
Price.
- It allows the consumer to determine the level of services they may receive in the
destinations.
Core products
- are products that the consumer is really buying. This is the main reason why consumer
go to the place or decided to purchase on the store.
Facilitating products
- are goods and services that must be present for the guest to enjoy and use the core
product. This refer on a way on how the customer can able to purchase or enjoy the
product.
Supporting products,
- add value to the core product and help differentiate it from its competitors.
Augmented products
- are factors that help the consumer consider the product over other products because
these include products accessibility, geographical location, operating hours,
atmosphere, customer satisfaction, and customer interaction with each other.
Product Consideration
- Accessibility - refers to how available the product is to the consumer, in terms of
location hour of operation and case of availing the products and services.
- Atmosphere - is the over-all feel of the place. This is much appreciated through the 5
senses.
- Customer interactions - Customers interact with other costumers consuming the
product or service along with them. Customer also does co-production of the product
or service. As much, involving the guest in the delivery of the service that can actually
improve customer satisfaction, reduce expenses, and increase capacity.
Product Life Cycle
- Product Development - At this stage begins with an idea of a new product that could
possibly satisfy an existing need or want in a specific market.
- Introduction - is the period wherein the product is introduced to the market. It may
be a period of rapid or slow sales growth depending on market acceptability of a new
product.
- Growth Stage - i s a period of rapid market acceptance and increasing profits.
- Maturity Stage - is a period where sales plateau because the product has achieved
acceptance by most of its potential buyers.
- Decline Stage - The period where in the sales fall off quickly and profits drop.
- Phase Out - is the stage when the production of the product or availability of the
service will be shut down or deleted from the company product line.
DESTINATION LIFE CYCLE
- Exploration - Characterized by a few adventurous tourist close interaction with locals
minimal effect on social, cultural, and physical environments and local facilities are
used.
- Involvement - Characterized by an increase in tourist arrivals, interaction with locals
still high, some changes in social, cultural, and physical environment. Infrastructure
development begins.
- Development - As word spreads about the destination, attractions and amenities are
improved and there are more tourists that come to the area.
- Consolidation- Tourist has become a major economic factor.
- Stagnation - This is when a destination cannot take any more visitors. It reaches a set
carrying capacity that is determined by social and environmental limits.
- Decline - Characterized by a downward rate of tourist arrivals. The decline stage can
be mitigated depending on management and marketing effort to uplift the
destination.
Product Development
- is a process whereby the assets of a particular destination are molded to meet the
needs of national and international customers.
Idea Generation
- is a systematic way of coming up with new ideas. Sources of new product ideas
include the external environment, internal sources, customers, competitors,
distributors and suppliers, and other sources.
Idea Screening
- Idea generation leaves you with so many new ideas that need to be screened to see
which ones matches the company’s objectives and can be developed further.
Concept Development and Testing
- The products that pass through the screening can now be developed further.
Marketing Strategy
- A new product or service is developed to try to gain a marketing edge and to
differentiate itself from competitors.
Business Analysis
- stage looks more deeply into how much revenue the product could generate, what the
cost will be, how much market share the product may achieve and the expected life of
the product
Prototype Creation
- When the concept has been developed, when marketing seems to be feasible and the
product financially viable, a prototype of the product is created.
Test Marketing
- The product is then launched in a small geographical are to test the components of the
marketing mix.
Commercialization
- This is when the product is fully launched to the entire target market either nationally
or internationally.
Evaluation
- This is the stage wherein the company will know whether the product has gained
market acceptance hence, if production will be continued or be stopped.