TOURISM MARKETING

INTRODUCTION OF TOURISM
MARKETING
 Travel and tourism marketing is the systematic and
coordinated execution of business policies by the both
private or public and public sector tourism
organizations operating at the local, regional, national,
or international level to achieve the optimal satisfaction
of the needs of identifiable tourist groups, and in doing
so to achieve an appropriate return.
 travel companies  in the pre-regulation, pre-liberalization,
and pre-globalization era were often contended to take
whatever business that come along this way and sold them
on a straight commission basis without bothering about the
extensive marketing. Moreover, their scope of the
operation was small and was not much complex,
sophisticated and competitive.
 But today the  travel companies  are becoming
larger, more sophisticated and more
automated in management.  Similarly, the
clients/tourists are also becoming more
trained, experienced and demanding higher
quality services and packages.
 Therefore, in this volatile travel business

environment, marketing knowledge and skill

are more necessary ingredients than the
product knowledge and enthusiasm, for a
travel agency’s long-term survival and growth.
Thus, this has led to the use of tourism
marketing which is recent phenomena.
EVOLUTION OF TOURISM MARKETING
The term marketing has been in use for the last 30
years or so. The development of marketing in fact is
the outcome of certain social and business pressures.
In 1960, Keith mentioned that the growing recognition
of consumer orientation ''will have far- reaching
implications for business, achieving a virtual revolution
in economic thinking". Though the word marketing
came into use in the 20th century, initially it was linked
with a number of loosely related factors for achieving a
sale. Consumer orientation, according to Keith, started
to be accepted as a business concept only from the
1950s.
Gilbert and Bailey mentioned three distinct stages
in the development of marketing and modern
business practices

1. Production era
2. Sales era
3. Marketing era
 MEANING AND DEFINITION
 ” Marketing is a social and managerial process
by which consumers obtain what they need and
want through creating and exchanging product
services and values with other.”
 According to the British Chartered Institute of

Marketing, ” It is the management process

responsible for the identification, anticipating,
assessing and satisfying the customer’s client’s
requirements profitable.”
 Krippendorf defines tourism marketing,” as
the systematic and coordinated execution
of business policies by both private or
public sector tourism organizations
operated at the local, regional, national, or
international level to achieve the optimal
satisfaction of the needs of identifiable
tourist groups, and in doing so to achieve
an appropriate return.”
Features of Tourism Marketing
 Tour package as a specialized product creates a
number of significant considerations which need to be
fully analyzed. The management of tour package
cannot be divorced from the management of service
and quality. Thus, the marketing of the tour package
is different from other products because the tour
package is a service product where instead of selling
physical goods an intangible experience is sold.
 An understanding of the complexity of the tourism
product concept is an essential pre-requisite for
effective tour package marketing in this context.
 The specific features of tourism marketing are:
 The demand for tour package is highly elastic

and seasonal in nature.

 Tour package is a combination of various service

ingredient.
 Designing, developing and marketing of tour

package a number of intermediaries are

involved. Bed experience at one level can spoil
the entire image of the package as well as
the tour operator.
 A tourist does not only by the tour package in

advance because it is consumed and felt at the

same time at a particular destination.
 Users of Tourism Services
 The users of tourism services can be categorized in a
number of ways. One such way of classifying the users is
by dividing them into categories such as General, Sex,
Region, Education, etc
 1.General: Domestic, Foreign Kids, Teens, Youths, Seniors,

Students, Executives, Artists, Politicians, Movie stars

 2. Sex: Men, Women

 3. Region: Rural, Urban

 4. Education: Literate, Illiterate
 5. Status: Rich, Poor

 6. Profession: Executives, Academics, Sportsmen, Artists

 7. Occupation: White collar, Blue collar
 Another method of classifying users of tourism services is on the
basis of the frequency of usage of services.
 1. Non-users: They lack the willingness, desire and
ability (income and leisure time).
 2. Potential Users: They have the willingness but the
marketing resources have not been used optimally to
influence their impulse.
 3. Actual Users: They are already using the services
generated by the tourist organizations.
 4. Occasional Users: They have not formed the habit of
travelling.
 5. Habitual Travellers: They have formed a habit and
avail of the services regularly
 Types of tourism
 Following are some types of tourism
1. Recreational tourism
2. Environmental tourism
3. Historical tourism
4. Ethnic tourism
5. Cultural tourism
6. Adventure tourism
7. Health tourism
8. Religious tourism
9. Music tourism
10. Village tourism
11. Wild life tourism
CONSUMER BUYING BEHAVIOR
 Family Security
 Availability of aid
 Reasonable Rate
 Insurance
 Guidance
 Proper Communication
MARKET SEGMENTATION
 Demographic Market Segmentation Examples 
 Age
 Gender
 Income
 Location
 Family Situation
 Annual Income
 Education
 Ethnicity
 Psychographic Market Segmentation Examples 
 Personality traits
 Values
 Attitudes
 Interests
 Lifestyles
 Psychological influences
 Subconscious and conscious beliefs
 Motivations
 Priorities
 Behavioral Market Segmentation Examples 
 Purchasing habits
 Spending habits
 User status
 Brand interactions
 Geographic Market Segmentation Examples   
 ZIP code
 City
 Country
 Radius around a certain location
 Climate
 Urban or rural
Tourism Marketing Information
System
 A marketplace based on information
provision and exchange transactions. The
most important use of the Internet is related
to the exchange transactions (marketing)
between businesses that are purchasing and
others who are supplying.
 The Internet as an Information
Exchange System
 Internet has become a medium for marketing and ideally
for marketing tourism. It allows everyone to access the
network.
 Potential of using the Internet for marketing activities is

derived from its general use as an information exchange

system.
 Information can be stored, indexed, retrieved,

restructured, and redistributed automatically by software

and without human intervention thus making more work
smooth.
 Internet connects organizations with other companies,

companies with customers, and people with other people

without regard to time, space and hardware/software
platforms.
The role of the internet as an
information exchange system.
Some other contributors to Tourism and
marketing with an indirect affect on the business .
Steps of Tourism Product
Development
 Research the Market
 Match the Product with Market
 Assess the Destination
 Understand the Stakeholder Role
 Product Building
 Marketing & Promotion
 Providing Human and Technical Resource
Tourism Management - Marketing Mix
1.Product
Tourism Product Pricing Policies
A. Discount Pricing
B. Variable Pricing
C. Loss Leader Pricing

D. Promotional Pricing

2.Price
Determining the price of the product requires
consideration of three key factors 
E. Operating costs
F. Profit Margins
G. Commissions of Intermediaries
3. Place
4. Promotion
 Types of Tourism Products

 Tourism Oriented Products (TOP)

 Residents Oriented Products (ROP)
 Intangible Products of Tourism
Tour Operator’s Products and Services

 Accommodations
 Reservations
 Guided Tours
 Transport Facilities
 Dining Facilities
 PEOPLE
Traveller
Tourist
Meet their expectations
• Employees – Physical appearance, Knowledge,
Grooming, Trained
• The people who sell and service your product are an
extremely important part of tourism marketing. Friendly
personal service and trained employees can make or
break a tourism business.
• Because much of the tourism industry is based upon
word of mouth advertising particularly about the service
received what your customers say after they depart can
thrust your business forward or send it into a downward
spiral.
 PROCESS
 There are different types of processes involved in
running a tourism business
 administration
 training
 planning
 recruitment
 distribution
 purchasing and service delivery.

It is important to ensure that these processes are

planned and carried out properly so that operations
run smoothly and problems are rectified quickly
 PHYSICAL EVIDENCE
 The physical evidence of a tourism product
refers to a range of more tangible attributes of
the operations. Tangibalising the product is a
good way of giving positive and attractive hints
or cues to potential customers with regard to
the quality of the product.
Tourism Product Planing and Developing
 Elements of a Tourism Product

 The Physical Plant

 Service
 Hospitality
 Freedom of Choice
 Involvement
Key Principles of Tourism Product Development
 A tourism product can be of any type from

cultural, educational, recreational, site, or a

business hub.
Tourism Product Development should −
 Have the support of the host community.
 Respect the natural and cultural

environments.
 Be different from the competitors, avoiding

copying developments blindly.

 Be of sufficient scale to make a significant

economic contribution, but not very large to

create high economic leakage.
Salient Features of Tourism Product

 Intangible
 Psychological
 Highly Perishable
 Composite Nature
 Unstable Demand
 Fixed supply in the short run
 Absence of ownership
 Risky
 Marketable
 Designing a Tour Package
 Research – Destination and Market
 Tour Itinerary Development
 Negotiations with Tourism Suppliers/Vendors
 Costing of a Package Tour
 Financial Evaluation and Pricing
  Administrative Staff
 Marketing of a Tour Package
  Developing a Tour Marketing Plan
 Marketing Inbound and Outbound Tours
 Tour Operator’s Brochures
 Operation and Execution of a Tour
 Post Tour Management
 Brand Decisions In Tourism
1. Branding gets more bookings
2. Branding improves recognition
3. Branding makes you memorable
4. Branding increases your value
PROMOTIONAL MIX OF TOURISM
PROMOTIONAL MIX OF TOURISM
 ADVERTISING
 SALES PROMOTION
 PERSONAL SELLING
 PUBLIC RELATIONS
 DIRECT MARKETING
 PLACE MIX
 Place refers to the location where the customer buys the
collection of services. Ideally, the operator uses it to
encourage the potential customer to visit the operator's
location and complete the purchase.
 Generally Hotels are located at either City Center area or
Tourist Zones, and Airlines and Travel Agents are around
Metro City areas, Malls and Office complex.
 Fast food restaurants and sales and service centers may be
located in busy main streets to allow walk in customers,
while a fine dining restaurant may be located in a quiet
street to maintain exclusivity and privacy
 The product or service must be available in the right place,
at the right time and in the right quantity. • As mentioned,
the service is produced and consumed in the same place. It
cannot be owned and taken away from the location.
 Tourism Marketing in Indian
Perspective
 Incredible India’, a multi-pronged promotional
campaign launched by the Department of
Tourism. Incredible India was conceptualized in
2002 by V. Sunil (while he was Creative Director,
O&M Delhi) and Amitabh Kant, Joint Secretary,
Ministry of Tourism. The campaign began in the
middle of the tourism crisis in 2002 when hotel
occupancy rates were down to 20 per cent. At
that time, all outlays used to be divided into 18
foreign offices. Some offices called it “Spiritual
India”; some called it “Cultural India”, and some,
“Unbelievable India”.
 It focuses on the diversity of India as a holiday
destination ‘with something for everyone’, from
beaches to mountains, world heritage sites to
cultural fairs and safaris to holistic holidays. The
‘Incredible India' campaign was built around the
brand proposition of “India as a path to ananda”
(wellness, bliss and contentment - in Sanskrit).
 First, online campaign was undertaken by Ministry
of Tourism during the period of March 2002 –
April 2002. The campaign resulted in more than
13 million hits to the website per month. A
response mechanism was devised to create a
dialogue with the users
contactus@tourismofindia.com was made popular
through online campaign and website
 With success of first online campaign,
subsequently many more campaigns have
been launched and website has been
revamped to www.incredibleindia.org
 Marketing Strategies like DVD advertisement
insert and digital brochure insert in ZDNet
India’s Technology magazine. Direct
marketing adopted as Incredible India post
cards inserts along with tickets to all those
who purchased railways ticket from Indian
railways website.
THANK YOU