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.

THE TOURIST MARKET AND SEGMENTATION, TARGETING AND

POSITIONING

MARKET- Is a set of actual and potential buyers of a product. These buyers share a need or
want that can be satisfied through exchange relationship.

Types of Consumer
Consumer- According to International Dictionary of Management “ Consumer is a purchaser
of goods and services for immediate use or consumption”.
Buyer- He is the person who purchase goods either for resale of for the use in production or
for use of somebody else.
Customer- He is the one who purchases goods for his own use or for the use of others or else
he is regular customer of a particular product and he is a regular customer of particular shop.
Institutional Buyer- These are either government institutions or private organizations.

MARKET SEGMENTATION
- Is nothing but a division of the total consumer market into groups in order to be able
to communicate with and meet their specific needs. Segmentation is essentially an
identification of the subsets of buyers within a market that share a similar needs and
demonstrates similar buyer behaviour.

WHYWE SEGMENT THE TOURISM MARKET?

It helps to understand specific demands of the consumers
It helps to allocate marketing expenses efficiently.
It helps to create effective marketing strategies to target specific market segment

Objectives of market segmentation

1. To understand the needs, wants, desires and buying habits of customers.
2. To formulate marketing programs for each consumer groups according to their nature.
3. To develop new products according to consumer’s changing needs.
4. To expand market & market share.
5. To provide satisfaction to customers.
6. To make the marketing strategies and policies consumer oriented.

GEOGRAPHICAL SEGMENTATION
DEMOGRAPHIC SEGMENTATION

PSYCHOGRAPHIC SEGMENTATION

BEHAVIOURAL SEGMENTATION

CLASSES OF TOURISTS
▸ Tourists Travelling with Families
▸ Single Tourists
▸ Group of Tourists
▸ Tourists visiting Friends and Relatives
▸ Business Tours
▸ Incentive Tours
▸ Health Tourists

CHARACTERISTICS OF A MARKET SEGMENT

1. Identifiable –It should be possible to describe a segment according to descriptive
characteristics (geographic, demographic and psychographic) or behavioral considerations
(consumer responses to benefits, usage occasions or brands)

2. Substantial –a viable market segment needs to be large enough to support your business. If
the market is too small, your business will not be able to earn enough revenue to survive. The
segment also needs to have the means to purchase your products and services.

3. Accessible –f you’re going to tailor your business to a specific segment, they need to be
easily accessible and reachable to you. If they are physically too far from your business or
resistant to your marketing, then it is not a good option.

4. Cohesive- is one that takes all your different platforms of promoting your business and
aligns them to the same strategy. Basically it all boils down to one thing; consistency.

5. Measurable- Measurable means that segmentation variables must be related to the purchase
of a product or service. Therefore, it requires an understanding of how much each segment
will spend – and when.

6. Actionable -Lastly, your market segments need to be actionable, meaning that they have
practical value. A market segment should be able to respond to a certain marketing strategy
or program and have outcomes that are easily quantifiable

MARKET TARGETING
- Is a process by which the target market is selected from the whole market.

STEPS IN MARKET TARGETING

1. Evaluating Market Segments

A. Segment Size
B. Attractiveness
C. Company objectives and availability of resources
2. Selecting Target Market Segments
Undifferentiated marketing, or mass marketing
• It is a strategy that a company my chose to adopt if the market segmentation exercise has
not been useful and has not produced meaningful and substantially different segments. The
strategy here is to focus on common characteristics rather than on differences.

Differentiated marketing, or segmented marketing

• It is deployed when the company settles on one market segment or a few market segments
that provide the best opportunities for them. Each segment is targeted with special offer
designed to appeal specifically to the buyers of that market.

Concentrated marketing
• It is a marketing strategy in which a company focuses on one specific target market group
for most or all of its marketing initiatives. Companies that use concentrated marketing
emphasize how their products can meet the unique needs of their niche audience.

Micromarketing can be defined as a type of marketing strategy that targets a specific niche
of your overall target audience. These extremely small, or “micro”, groups of people or
individuals can be approached with customized content and outreach initiatives for a
personalized marketing experience

FACTORS INFLUENCING THE CHOICE OF THE MARKET

1. The company’s resources
2. The degree of product variability
3. The product life cycle
4. Market Variability
5. Competitor’s marketing strategies

MARKET POSITIONING
- Market Positioning refers to the ability to influence consumer perception regarding a
brand or product relative to competitors. The objective of market positioning is to
establish the image or identity of a brand or product so that consumers perceive it in a
certain way

A. POSITIONINGSTRATEGIES

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

2.Effectively communicating and delivering the chosen position to a carefully selected target
market

NEW AND EMERGING MARKETS

The method of new market recognition should be taken seriously in order to obtain a
sustainable competitive advantage.

In the article of Cooper et al. (2006), identified the growth of tourism markets as
fueled by these factors on the demand side:

1. Economic Growth in major source markets

2. Increase disposable leisure time and a longer life expectancy with a sound health to travel
3.Changes in living conditions especially city dwellers becoming more inclined to engage in
tourism.
4.Rising educational levels and increased access to information, stimulating curiosity.
5.Increasing international integration of life.

TYPES OF MARKETS
1. The Family Market
2. The Senior Market
3. The Youth Market
4. The MICE Market and Business Tourism
TOURISM & CONSUMER BEHAVIOR
- In sales, commerce, and economics, a customer is the recipient of a good, service, product
or an idea - obtained from a seller, vendor, or supplier via a financial transaction or exchange
for money or some other valuable consideration.

Consumer behaviour is a study of when, why how and where people do or do not buy a
product. It basically depends on the psychology of the consumer.

It attempts to understand the buyer decision making process both individually & groups. It
studies the individual consumers such as demographics & behavioural aspects to understand
the people wants. The study of consumer behaviour main focus is the CUSTOMER
SATISFACTION because customer is the only person with those presence businesses
actually exists.

FACTORS INFLUENCING COSTUMER BEHAVIOR

1. 3.

2.

4.

INTERNAL FACTORS OF MOTIVATION

Intrinsic Motivation
- For many people, tourism is a way of satisfying their psychological needs such as
travelling, performing, leisure activities, exploring novelty and capabilities, self-
expression and self-assurance, creativity, competition, need for relaxation, and
belongingness.
-
INTRINSIC FACTORS OF MOTIVATION
•Attitudes of Tourists
•Tourist’s Perception
•Attitudes of Tourists
•Personality of the Tourists
EXTERNAL FACTORS OF MOTIVATION

EXTRINSIC MOTIVATION: Tourist gets motivated by external factors.

•Place of Origin
•Family and Age
•Culture or Social Class
•Market

MASLOW’S HIERARCHY OF NEEDS

- Maslow’s hierarchy of needs is a motivational theory in psychology comprising a

five-tier Model of human needs proposed by Abraham Maslow in 1943, often
depicted as hierarchical levels within a pyramid.

4. Phychological Factors (continuation)

•Perception
•Learning
•Beliefs

FACTORS AFFECTING TOURIST BEHAVIOR

1. Geographical Factors
2. Social Factors
3. Place of Origin
4. Tourism Destination
5. Education of Tourists
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

Service quality is a measure of how an organization understands its users' needs and fulfills
their expectations. Understanding how to improve the service quality of your product is the
key step to growth for any organization. Measuring and improving service quality is a
valuable art.

BENEFITS OF SERVICE QUALITY

 Customer Retention
 Avoidance of price competition
 Retention of good employees
 Reduction of cost
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 the visitors.

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 lodging.
THEY ARE:
⁃ Explorers of New destinations
⁃ Independent Travellers
⁃ Need to see and do new things
⁃ Above-average incomes
⁃ Wanderlust

Psychocentric (The repeater)

• A vacationer who falls in this class is usuall not audicious
• They want to return to familiar travel destinations where they can unwind and recognize
what kind of sustenance and activity to expect.
• Tourist like to travel to destinations, like an 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 writers.

Type of tourism Midcentric traveller prefer:

⁃ Recreation
⁃ Sports
⁃ Social
⁃ Nature
⁃ Religious

COHEN’S MODEL

1. Organized Mass Tourist- is the type who buys all-inclusive tour packages and endures that
everything goes as planned.

2. Individual Mass Tourists- is 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- is 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
someting 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 more gusty and
incline toward individualistic visits.

Phase IV- Complete Immersers

These tourist 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 taget 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/services but
need to be convinced or be persuaded to purchase.

3. Not aware- they are customers who are not aware of product/service’s existence.