9.2.

Concepts of
Tourism marketing and
promotion
• The purposes of business are to create
and maintain profitable customers.

• Customer satisfaction is leading to

profit is the central goal of tourism and
hospitality marketing.
Definition

• Marketing is the social and managerial

process by which individuals and group
obtains what they need and wants
through creating, offering and
exchanging products and value with each
other.
• Definition of marketing rests on the
following core concepts

Needs- are a state of felt deprivation

describes basic human requirements
such as food, air, water, clothing,
shelter, recreation, education, and
entertainment.
 Wants – how people communicate their
needs.
• Needs become wants when they are
directed to specific objects that might
satisfy the need. (Fast food)
• The form of human needs take as they
are shaped by culture and individual
personality.
• Wants are how people communicate
their needs.
 Demand- ability and willingness to buy a
product.

Demands are wants for specific products

backed by an ability to pay.
Demands= wants + purchasing power
 A Product is any thing that can be
offered to satisfy a need or want.
When offerings deliver value and
satisfaction to the buyer, they are
successful.
• Product can be
Places
Properties
Organizations
Information
Ideas
Goods
Services
Experiences
Events
Persons
 Value: - customers estimates of the
product or it is the over all capacity to
satisfy the need.
• The difference between benefits that
the customer gains from owning /or
using a product and the costs of
obtaining the product.
 Satisfaction:- how will the product meet
the customers expectation
• Depends on the product’s perceived
performance in delivering value relative
to a buyer’s expectation.
Quality:- is the freedom of products
from defects
– Has a direct impact on product/service
performance.
– Narrowest definition… “Freedom from
defects”
• American society… defines quality as
the totality feature and characteristics
of a product /service that bear on its
ability to satisfy customer needs.
Exchange involves obtaining a desired
product from someone by offering
something in return.
• Transaction it is the trade of value
between two parties, involves at least
two things of value,
agreed-upon conditions,
a time of agreement, and
a place of agreement.

• It consists of the trade of value

between two parties.
Market – it is the place where buyers
and sellers gathering to exchange there
goods.
• A supply chain stretches from raw
materials to components to final
products that are carried to final
buyers.
• Each company captures only a certain
percentage of the total value generated
by the supply chain.
• Important aspects of marketing
Identifying customer need and
want.
Prediction of customer behavior.
Converting customer needs,
wants and motivation in to
effective demand
Moving the product to the final
consumer.
A brief history of tourism marketing
The following periods could mark evolution
era of tourism marketing
1. Product orientation era- it began with
industrial revolution and lasted in to
the 1920s. During this era the
production capacities of the factories
could not keep the pace with the
demand and demand exceeds the
supply. Every item that was
manufactured could be sold.
2. Sales oriented era- in 1930s due to
the technical advancement in the
production and increased competition
change the emphasis of the marketing
from production to selling, beating the
competition by out selling them was
the first priority and their profit and
consumer satisfaction objectives.
Special features of tourism
marketing, characteristics of a
service

• Service marketers must be concerned

with four characteristics of services:
intangibility, inseparability, variability,
and perishables.
A. Tourism is an intangible non material
product.
» Unlike physical products,
services can not be seen,
tasted, felt, heard or smelled
before they are purchased.
• E.g. an airline ticket… promises of safe
delivery to their destination.
• Hotel room… the right to use a room for a
specific period of time.
• Some one who purchase the service may go
away empty-handed but they do not go away
empty-headed… they have memories that can
be shared with others”-Robert Lewis.
• To reduce uncertainty caused by service
intangibility, buyers look tangible evidences
that will provide information and confidence
about the service.
• B. Non transfer of owner ship of
goods is involved as compared to
tangible product.
• C. Inseparability - Production and
consumption of tourism services are
closely related
• In most hospitality services, both the
service provider and the customer must
be present for the transaction to occur.
• Customer-contact employees are part of
the product.
• The customers are also part of the
product.
D. Services are highly variable.
• Their quality depends on who provides
them and when they are provided.
• There are several causes for service
variability.
• causes for service variability.

• Services are produced and consumed

simultaneously, which limits quality control.
• Fluctuating demand makes it difficult to deliver
consistent products during periods of peak
demand.
• It depends on the services provider’s
skill/experience.
• Time/length of service/tiredness.
• Lack of comm. and heterogeneity of guest
expectation
E. Product life is short and perishable.

• Service cannot be stored.

• A 100 room hotel…
• Hotels charging No shows…
• Just like water down the drain
• Dominant role played by intermediaries (TA and
TO)
F. Tourism product is assembled by many
products
G. Tourism demand is highly unstable and
variable.
Levels of tourism marketing
• Individual levels- individual operators
like hotels, restaurants, tour
operators, air lines …concentrate on
developing their individual market of
composite tourism products.
• Destination level- it is the
responsibilities of different tourism
organizations, which seek to market the
tourism products of a given destination.
Market research
• Tourism and hospitality marketing is
heavily oriented towards the consumers.
Potential consumers or markets are
identified by market research.
• Tourism market research involves
gathering and analyzing information
about present and potential clients in an
attempt to predict what they want to
buy.
Market segmentation

• Information obtained from market

allows suppliers of the services to divide
the market or consumer in to different
segments/ parts.
• Market segmentation: the act
of dividing a market into
distinct groups of customers
who might require separate
products and/or marketing
mixes.
• The product then can be developed to
match the need and want of the
consumers.
Buyers are too numerous,
widely scattered, and
varied in their needs and buying
practices.
• Market segment: a group of customers
who share a similar set of wants.
• Types of market segmentation
Geographic – dividing the market or
consumers in to, who share the same
level geographical areas.
Geographic
»Nation or country
»State or region
»City or metro size
»Density
»Climate
 Geographic

Region, City or Metro

Size, Density, Climate
• Demographic – dividing the market
based on personal information.
• Demographic
»Age, race, gender
»Income, education
»Family size
»Family life cycle
»Occupation
»Religion, nationality
»Generation
»Social class
 Demographic
Age, Gender, Family size and
life cycle, Race, Occupation,
or Income...
• Socio-economic- dividing the market
on the basis of level of income and
social conditions.
• Behavioral – dividing the market on
the basis of purchasing behavior of
individuals.
• Behavioral
Occasions
Benefits
User status
Usage rate
Loyalty status
Buyer-readiness
Attitude
Behavioral

Occasions, Benefits,
Uses, or Attitudes
• Marketing mix (4p’s)

1. Product- is any thing that can be

offered to satisfy a need or want.
 Price- is the amount of money
charged for a good or service.
• is the sum of all values that consumers
exchange for the benefits of having or
using the product or service.
• Pricing is the only marketing mix
element that produces revenue.
• All other marketing mixes represent
cost
place

Promotion- it is one of elements of

marketing mix or a technique to attract
clients.
• Tourism promotion- it is the mix of
communication activities to draw or
attract/ influence people.

• The four major promotion tools are:

advertising, sales promotion, public
relation, and personal selling.
Advertising – paid form of non personal
communication about product.

• Advertising is a good way to

inform and persuade, whether
the

Purpose is to sell the product.

 Sales promotion – short-term
incentives to encourage the
purchase or sales of a product
or services.
Public relation – building good
relations with the company’s
various publics by obtaining
favorable publicity, developing a
good corporate image, and
handling or heading off
unfavorable rumors, stories, and
events.
Personal sealing – persuading and
convincing personally. Oral
presentation in a conversation
with one more prospective
purchaser for the purpose of
making sales.
• Tools of promotion
• Travel trade fair/ exhibition
• Travel trade magazine, news paper
• Broachers, folders
• Internet
• FAM trips
• CD rooms
• Trade shows.
• The traditional 4Ps marketing approach
work well for goods, but additional
elements require attention in service
business. Rooms and Bitner suggested 3
additional 3Ps for service marketing:
people, physical evidence and process.
• People- for most services are prepared
by people, the selection, training and
motivation of employees make huge
difference in customer satisfaction.
• Physical evidence- a hotel will develop a
look and style of dealing with customers
that realize its intended customer value
proposition whether its cleanliness,
speed or some other benefit.
• Process- the production process and
organization system is also one element
of customer satisfaction.
 The four Ps
&
The Four Cs

Marketing
Mix

Place
Product

Convenie
Customer
nce
Solution Price Promotion

Customer Communication
Cost