TOURISM

___________________________

Principles, Practices, Philosophies

Charles R. Goeldner
J. R. Brent Ritchie
TWELFTH EDITION
© 2012 John Wiley and Sons, Inc.
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CHAPTER 19

Tourism Marketing

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 LEARNING OBJECTIVES

• Appreciate the Internet’s impact on tourism marketing.

• Become familiar with the marketing mix and be able to formulate
the best mix for a particular travel product.
• Appreciate the importance of the relationship between the
marketing concept and product planning and development.
• Understand the vital relationship between pricing and marketing.
• Be able to do market segmentation to plan a marketing program
for the business you are most interested in.
• Demonstrate the linkage between tourism policy and tourism
marketing.

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MARKETING MIX

The marketing mix is composed of every

factor that influences the marketing
effort
• Timing • Image
• Brands • Advertising
• Packaging • Selling
• Pricing • Public relations
• Channels of • Service quality
distribution • Research
• Product
© 2012 John Wiley and Sons, Inc.
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 WHAT IS MARKETING

The American Marketing Association defines

Marketing as:
• “an organizational function and a set of
processes for creating, communicating, and
delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders.”

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PRODUCT LIFE CYCLE

Introduction Growth Maturity Saturation Decline

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 FACTORS THAT INFLUENCE
PRICE POLICIES
• Product quality • Cost of distribution
• Product • Margin of profit
distinctiveness desired
• Extent of the • Seasonality
competition
• Special promotional
• Method of distribution prices
• Character of the • Psychological
market considerations
• Cost of the product
and service
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 PRICE SKIMMING

Skimming is appropriate when the product

or service has the following characteristics:
• Price inelasticity
• No close substitutes
• High promotion elasticity
• Distinct market segments based on price

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 PENETRATION PRICING

Penetration pricing is appropriate when

the following factors are present:
• High price elasticity
• Economies of scales
• An easy fit of the product into consumer
purchasing patterns

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SELECTION OF
CHANNELS OF DISTRIBUTION
Channels of distribution are selected by
• Analyzing the product
• Determining the nature and extent of the market
• Analyzing the channels by sales
• Determining the cooperation you can expect from the
channel
• Determining the assistance you will have to give to the
channel
• Determining the number of outlets to be used

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 PROMOTION

In order to sell the product it is necessary

to:
• Attract attention
• Create interest
• Create a desire
• Get action

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 TYPICAL BASES FOR
MARKET SEGMENTATION
• Geographic
• Demographic
• Socio-economic
• Psychographic
• Behavior patterns
• Consumption patterns
• Consumer predispositions

© 2012 John Wiley and Sons, Inc.

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 TYPICAL BASES FOR
MARKET SEGMENTATION

Typical bases for market segmentation. Source: W. Zikmund and M. D’Amico, Marketing, 3rd ed., copyright ©1984, New York: John
Wiley & Sons, Inc.; adapted by permission of Prentice-Hall, Englewood Cliffs, N.J., from Philip Kotler, Principles of Marketing, copyright
©1980, p. 297.

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