UNDERSTANDING TOURISM AND
HOSPITALITY MARKETING
• is the activity, set of institutions and
processes for creating, communicating,
delivering and exchanging offerings that they
have value for customers, clients, partners
and society at large. (The American
Marketing Association)
• Tourism and Hospitality marketing is the art
of and science of finding, retaining and
growing profitable customers. (Kotler,
Bowens and Makens).
IMPORTANCE OF MARKETING
• Identify the ideal target market.
o to develop a successful marketing
campaign, the first step is to identify
who is the ideal target market
• Attract new customers and develop loyalty
o a strategy needs to be developed to
reach these potential customers.
• Understand the customer journey
o sell an "experience" not a material
object. It means that the journey of the
customer to make a purchase is quite
unique and comes with its own set of
challenges. Recognizing the
"journey" the consumer takes before
making the purchase is essential to a
successful marketing strategy.
• Standout from competitors
o make sure that your business stands
out as the tourism industry becomes
more and more competitive. One of
the best ways to achieve this is to
highlight what is exceptional and
unique about the company.
o a very good marketing campaign is
capable of effectively explaining
these concepts to consumers in a way
that 'speaks' to them
• Hone-in on the most effective tactics
o using analysis and analytic tools, you
can use a marketing strategy to
determine that resources are best for
attracting your audience and then
draw on those resources to ensure the
best possible Return on investment
o -promotional needs of your company
are being carefully handled.
A Simple Model of Marketing Process
- create value for customers and build customer
relationships
1. Understand the marketplace and customer needs
and wants
2. Design a customer-driven marketing strategy
3. Construct a marketing program that delivers
superior value
4. Build profitable relationships and create customer
delight
5. Capture value from customers to create profits and
customer equity
- Capture value from customers in return
Marketing Management Orientation
Production Concept
"Consumers will favor products that are
available and highly affordable."
Oldest marketing management orientations
Product Concept
consumers will favor products that offer the
highest quality, performance and innovative
features.
Selling Concept
consumers will not buy enough of the
organization's products unless the
organization undertakes a large selling and
promotion effort.
promote what the business sells rather than
do what the market wants.
Marketing Concept
meeting the corporate targets relies on
recognizing the needs and wants of the target
markets and providing the required value
more effectively and efficiently than the
rivals.
"customer first" method.
Societal Marketing Concept
"marketing strategy should deliver value to
customers in a way that maintains or
improves both consumers and society's well-
being"
places individual well-being at the forefront
of income and fulfilling desires.
The Role of Marketing is to Drive Growth by
Aligning Customers with the Company
KEY PROCESS IN MARKETING
MANAGEMENT
Marketing Information System.
collect a detailed set of information about its
customers, competitors and the capability and
productivity of the technology-enhancing
business
Marketing Planning
requires an evaluation of the marketing
environment with regards to one's business
potential
Planning Tactical Campaigns.
comprehensive marketing strategy is
followed by practical and realistic
promotional strategies.
Marketing Operations
involves the challenging part of
implementing the planned strategic and
tactical campaigns by coordinating with all
stakeholders, fine-tuning the marketing mix
as it unfolds and ensuring that the activities
are carried out as planned.
Monitoring and Control
ongoing process of analyzing sales date and
financial performance in relation to the
marketing activities carried out.
It includes managing customer feedback and
concerns (if any)
CORE MARKETING FUNCTIONS
Finding the best distribution channels
how to get the goods or services that you
would like to sell to the people wanting to buy
them
Financing an enterprise
it takes money to make money.
Deep market research
gathering information concerning your target
customer.
Setting prices
setting the correct price for your product or
service can be a challenge.
Product and service management
the goal becomes to effectively manage the
product or service
involves listening to customers, responding
to their wants and needs
Promotional channels
most business owners are familiar with the
idea of promotion.
advertising your products and services is
essential to attracting new customers and
keeping existing customers coming back.
Matching products to customers
selling is last on the list of seven functions of
marketing
selling can happen only after you've
determined the wants and needs of your
customer base and are able to respond with
the right products at the right price point and
time frame.
INTEGRATED MARKETING
COMMUNICATIONS APPROACH
Integrated marketing campaigns (IMCs) include the
planning and coordination of all marketing mix
(including traditional and digital networking
components). This method is far superior to the
single and independent use of each item
INTEGRATED MARKETING
COMMUNICATIONS
(Integrated Marketing Strategy)
o Social media
o Multi-media
o Email Marketing
o Print Media & Direct Mail
o Search
o Website
 o Social Share
o Video
o Other Offline Media
o Public Relations
o Blogs
o Mobile
8 P’s
▪ Product: product and service mix offered
▪ Place: how the products is made available for
consumers in the market
▪ Promotion: personal sales, public relations,
etc., special combination of marketing
techniques
▪ Pricing: full revenue planning and marketing
strategy
▪ People: developing policies and approaches
for human resources to promote positive
experiences between customers and hosts
▪ Programming: customer-oriented activities
for the purpose of increasing client
expenditures, length of stay or to enhance
packages appeal
▪ Partnership: identified also as cooperative
marketing, growing sales effort coverage and
impact.
▪ Physical Evidence: how companies can
validate their marketing specifications and
customers can document their experiences
such as stories, reviews, blog posts, or local
signs and components.
SERVICE CHARACTERISTICS OF
HOSPITALITY AND TOURISM
MARKETING
SERVICE CULTURE
The service culture is a system of values and beliefs
in an organization that reinforces the idea that
providing the customer with quality service is the
principal concern of the business. It focuses on
serving and satisfying the customer. Creation of a
service culture has to start with top management and
flow down. An organization should hire employees
with customer service attitude and then it works with
employees to instill the concept of service. The
outcome of these effort is employees who provide
service to the customers.
CHARACTERISTICS OF SERVICE
MARKETING
• Intangibility
o cannot be seen, tasted, felt, heard or
smelled before they are bought.
• Inseparability
o cannot be separated from their
providers.
o employee and customer are often part
of the product
• Variability
o their quality may vary greatly,
depending on who provides them and
when, where and how they are
provided.
• Perishability
o cannot be stored for later use.
Steps to Reduce Variability and Create
Consistency
INVEST IN Invest in good hiring procedures
STANDARDIZE Standardize the service-
performance process throughout
the organization
MONITOR Monitor customer satisfaction
Service Management Concepts for the
Hospitality Industry
Internal Service Quality
• superior employee selection and training, a
quality work environment and strong support
for those dealing with customers.
Satisfied and Productive Service
• more satisfied, loyal and hard-working
employees
Greater Service Value
• more effective and efficient customer value
creation and service-delivery.
Satisfied and Loyal Customers
• satisfied customers who remain loyal, repeat
purchase, and refer other customers.
Healthy service profits and growth
• superior service firm performance

Services Marketing Triangle
Internal Marketing
• means that the service firm must effectively
train and motivate its customer-contact
employees and all the supporting service
people to work as a team to provide customer
satisfaction.
External Marketing
• means that any communication to customers
(or potential customers) that happens before
service delivery starts. Forms of external
marketing include: Advertising, Personal
Selling, Public relations, Direct Marketing.
Interactive Marketing
• means that perceived service quality depends
heavily on the quality of the buyer-seller
interaction during the service encounter.
Management Strategies for Service Business
Managing differentiation
• the solution to price competition is to develop
a differentiated offering. The offer can
include innovative features that set one
company’s offer apart from that of its
competitors.
Managing service quality
• with hospitality products, quality is measured
by how well customer expectations are met.
Manage service productivity
• with their costs rising rapidly, service firms
are under great pressure to increase service
productivity.
Resolving customer complaints
• it is a critical component of customer
retention
Managing employee as part of the product
• in the hospitality industry, employees are
critical part of the product and marketing
mix. The human resource and marketing
department must work closely together.
Managing perceived risk
• the high risk that people perceive when
purchasing hospitality products increases
loyalty to companies that have provided them
with a consistent product in the past.
Managing capacity and demand
• because services are perishable, managing
capacity and demand is a key function of
hospitality marketing.
MARKETING PLANS
3 KEY ELEMENTS TO A SUCCESSFUL
MARKETING PLAN
1. It is workable
2. It is realistic and flexible
3. It has measurable and achievable goals
PURPOSE OF A MARKETING PLAN
• Provides 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
• Forces 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
• Creates a process to monitor actual against
expected results
Marketing Plan Sections
 I. Executive Summary
II. Company Description Demographics
III. Strategic Focus and Plan • Age • Social Status
IV. Situation Analysis • Gender • Family
V. Market –Product Focus • Income • Life stage
VI. Marketing Program • Education • Occupation
VII. Financial Data and Projections
VIII. Organization Psychographics
IX. Implementation • Lifestyle • Personality
X. Evaluation • AIO: Activity, • Values
Interest, Opinion
• Concerns • Attitudes

Behavioral: Breakdown the way customers go

THE TOURIST MARKET AND through their decision making and buying processes.
SEGMENTATION, TARGETING AND Attitudes towards the brand, the way they use it, and
POSITIONING their knowledge base are all behavioral examples
• Benefits sought • Buyer Stage
MARKET • Purchase • User status
• A set of actual and potential buyers of a • Usage • Life cycle stage
product. These buyers share a need or want • Intent • Engagement
that can be satisfied through exchange • Occasion
relationship.
CLASSES OF TOURISTS
MARKET SEGMENTATION Tourists Travelling with Families
• Is nothing but a division of the total consumer Single Tourists
market into groups in order to be able to Group of Tourists
communicate with and meet their specific Tourists visiting Friends and Relatives
needs. Business Tours
Incentive Tours
Health Tourists
WHY SEGMENT THE TOURISM MARKET?
CHARACTERISTICS OF A MARKET
• It helps to understand specific demands of the SEGMENT
consumers. 1. Identifiable
• It helps to allocate marketing expenses 2. Substantial
efficiently. 3. Accessible
• It helps to create effective marketing 4. Cohesive
strategies to target specific market segment 5. Measurable
6. Actionable

TOURISM MARKET SEGMENTATION IDENTIFIABLE

➢ You should be able to identify customers in
Geographics: considering the factors such as each segment and measure their
tourists' place of origin. This factor is important as characteristics, like demographics or usage
the tourists belonging to different places are brought behavior.
up with different cultures and show different traits of SUBSTANTIAL
behavior. It is the most basic type of segmentation ➢ It’s usually not cost-effective to target small
• Country • Climate segments — a segment, therefore, must be
• City • Area large enough to be potentially profitable.
• Density • Population
• Language
ACCESSIBLE
➢ It sounds obvious, but your company should
be able to reach its segments via
communication and distribution channels.
COHESIVE
➢ The consumers should be part of a whole
whose specific qualities are common to all
MEASURABLE
➢ The marketer should be able to estimate the
size and potential spending of the members of
the market segment.
ACTIONABLE
➢ You have to be able to provide products or
services to your segments.
MARKET TARGETING
A process by which the target market is selected from
the whole market.
STEPS IN MARKET TARGETING
1. Evaluating Market Segments
A. Segment Size: refers to current sales
volume, growth rate, and high profit margin.
B. Attractiveness: refers to potential impact
of the segment to the company.
C. Company objectives and availability of
resources: refers to the main reasons for its
decision making and the available resources
the company will use to make its objectives
and reality
2. Selecting Target Market Segments
Market Targeting Strategies
FACTORS INFLUENCING THE CHOICE OF
THE MARKET
1. The company’s resources
If resources are limited, a concentrated
market targeting strategy might make more
sense.
2. The degree of product variability
In case of uniform products, such as apples or
steel, undifferentiated marketing may be
more suited. In case of products that can vary
in design, more narrow differentiation and
concentration is suitable
3. The product life cycle
When a company introduces a new product,
it may be helpful to launch only one version.
Undifferentiated or concentrated marketing
might make most sense.
4. Market Variability
where all buyers have the same tastes, buy the
same amounts etc., undifferentiated
marketing makes sense.
5. Competitor’s marketing strategies
If competitors apply differentiated or
concentrated market targeting strategies,
using undifferentiated marketing may prove
to be fatal.
MARKET POSITIONING
It is developing competitive positioning for the
product and an appropriate marketing mix (Kotler et
al. 2010)
A. POSITIONING STRATEGIES
1. Specific product attributes
2. Need products fill, or benefits products offer
B. CHOOSING AND IMPLEMENTING A
POSITIONING STRATEGY
1. Identifying a set of possible competitive
advantages on which to build a position
- differentiation between its products/services
from competitors
2. Selecting the right competitive advantage
- brand's value proposition
3. Effectively communicating and delivering the
chosen position to a carefully selected target
market.
- company must communicate its position to
targeted customers.
 NEW AND EMERGING MARKETS Personality and Self-Concept
The method of new market recognition should be - Personality
taken seriously in order to obtain a sustainable - Self-concept
competitive advantage.
In the article of Cooper et al. (2006), identified the 4. PSYCHOLOGICAL FACTORS
growth of tourism markets as fueled by these factors Motivation
on the demand side: - Internal factors
1. Economic Growth in major source markets - External factors
2. Increase disposable leisure time and a longer life
expectancy with a sound health to travel. INTERNAL FACTORS OF MOTIVATION
3. Changes in living conditions especially city Intrinsic Motivation
dwellers becoming more inclined to engage in For many people, tourism is a way of satisfying their
tourism. psychological needs such as travelling, performing
4. Rising educational levels and increased access to leisure activities, exploring novelty and capabilities,
information, stimulating curiosity. self-expression and self-assurance, creativity,
5. Increasing international integration of life. competition, need for relaxation, and belongingness.
• Attitudes of Tourists
TYPES OF MARKETS • Tourist's Perception
1. The Family Market • Personality of the Tourists
2. The Senior Market
3. The Youth Market EXTERNAL FACTORS OF MOTIVATION
4. The MICE Market and Business Tourism Extrinsic Motivation
• Tourist gets motivated by external factors.
• Place of Origin
• Family and Age
TOURISM AND CONSUMER BEHAVIOR • Culture of Social Class
• Market
FACTORS INFLUENCING CUSTOMER
MASLOW'S HIERARCHY OF NEEDS
BEHAVIOR
Maslow's hierarchy of needs is a motivational theory
1. Cultural Factors
in psychology comprising a five-tier Model of
2. Social Factors
human needs proposed by Abraham Maslow in 1943,
3. Personal Factors
often depicted as hierarchical levels within a
4. Psychological Factors
pyramid.
1. CULTURAL FACTORS
Culture
Subculture
Social Class

2. SOCIAL FACTORS
Groups
Word-of-mouth Influence and Buzz
Marketing
Family
Role and status

3. PERSONAL FACTORS
Age and Life Cycle
Occupation
Economic situation
Lifestyle
PSYCHOLOGICAL FACTORS (continuation) BENEFITS OF SERVICE QUALITY
Perception Customer Retention
Learning Avoidance of price competition
Beliefs Retention of good employees
Reduction of cost
FACTORS AFFECTING TOURIST
BEHAVIOR
1. Geographical Factors SERVICE QUALITY
2. Social Factors
3. Place of Origin
4. Tourism Destination
5. Education of Tourists
Satisfaction Repeat Purchase
THE INTRINSIC AND EXTRINSIC TOURIST
BEHAVIOR Service Quality
Intrinsic Behavior Referrals to friends
• They record higher level of satisfaction and
enjoyment as they see an activity as a mean
of enjoyment itself.
• Time passes faster to them
• They record a higher level of enjoyment THE ORGANIZATIONAL BUYER
• They look forward to the next similar BEHAVIOR
experience in the moderate to long span of The organizational purchase process consists of 8
time. stages
➢ Problem recognition
➢ Need description
Extrinsic Behavior ➢ Product specification
• They record comparatively lower level of ➢ Supplier search
enjoyment as they go through the stress of ➢ Proposal solicitation
competition. ➢ Supplier selection
• They are focused on passage of time ➢ Order-routine
➢ Specification
• They tend to be tensed for performance and
could be apprehensive, which hinders their ➢ Performance Review
enjoyment and relaxation.
• They look forward to the same experience in
the short span of time.

THE BUYER DECISION-MAKING

PROCESS
Stage 1: Need/Problem recognition
Stage 2: Information search
Stage 3: Alternative evaluation
Stage 4: Purchase Decision
Stage 5: Post-purchase evaluation
 TYPOLOGY OF TOURISTS
There are many forms of travelers who have specific
destination criteria. Tourist typologies are
descriptors of distinctive aspects of market travel
behavior. They represent the multiple motives,
desires and modes of travel on the part of visitors.
Some typologies aim to divide visitors according to
their tastes in terms of locations, events while on
vacation, individual travel VS package holidays. The
goal of these typologies is to split tourists into
separate groups in order to figure out what tourist
wants.
PLOG'S TOURIST MOTIVATION MODEL
(Stanley Plog)
Allocentric (The Wanderers)
A traveler who is looking for new experiences and
practice in a wide range of activities. This person is
polite and courageous in his actions. An Allocentric
person wants to fly and examine new and unusual
regions that others have previously done as such.
Allocentric appreciate meeting people from distant
or varied cultures. They enjoy fantastic inns and
sustenance but not actual new or chain-like lodgings.
THEY ARE:
➢ Explorers of New destinations
➢ Independent travelers
➢ Need to see and do new things
➢ Above-average incomes
➢ Wanderlust
Psychocentric (The Repeater)
A vacationer who falls in this class is usually not
audacious. They want to return to familiar travel
destinations where they can unwind and recognize
what kind of sustenance and activity to expect.
Tourists like to travel to destinations, like in ordinary
hotels, and eat at family-style dining rooms.
Midcentric (Combination)
This classification of tourist covers the ones who
swing between the above said to writes.
Type of tourism Midcentric travelers prefer:
➢ Recreation
➢ Sports
➢ Social
➢ Nature
➢ Religious
COHEN'S MODEL
1. Organized Mass Tourists
Who buys all-inclusive tour packages and
ensures that everything goes as planned.
2. Individual Mass Tourists
More autonomous than the organized mass
tourist preferring to travel independently, but
still chooses popular destinations and
activities.
3. The Explorer
Seeks new areas but would sometimes opt for
the comfort of familiar accommodations.
4. The Drifter
The free spirit who avoids any kind of
traditional tourist establishment.
STEWART'S MODEL OF HOLIDAY TAKING
PHASE I - BUBBLE TRAVELERS
They don't have much cash and also
information. They incline towards bundled
visits. They long to watch diverse societies
without being a piece of it. They travel
generally to clear something up.

PHASE II - IDEALIZED EXPERIENCE

SEEKERS
They are certain tourists with the experience
of outside visits. They are adaptable and
agreeable. They lean toward visit offers made
for people.

PHASE III - SEASONED TRAVELERS

These tourists are more well-to-do than the
admired experience searchers. They are more
certain to trail and experience better places
and situations. They are gutsier and incline
toward individualistic visits.

PHASE IV - COMPLETE IMMERSERS

These tourists have an expectation of
inundating totally into the remote culture,
legacy, culinary experience, and dialect.
Their holidaying is very much arranged
however not all around organized.

THE NON-USERS
Marketers will continue to strive to acquire new
customers. To target non-users would be the best way
to do this. It can be classified as:
1. Ex-users
who stopped using the products/ services for
various reason.
2. Need to be persuaded
they are the customers who are aware of the
products/ serviced but need to be convinced
or be persuaded to purchase.
3. Not aware
who are not aware of product/ service's
existence.