TOURISM MARKETING

SESSION 10: June 20, 2019

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 UNIT 3

STRATEGIC MARKETING

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CHAPTER 7: EVOLVING MARKETING MIX FOR
TOURISM SERVICES (Part 2)
We introduce 4 key decision areas that marketing managers need to make
continuous decisions in order to satisfy or exceed consumer needs better than
their competitors. They are collectively known as the Marketing Mix.

THE MARKETING MIX

1. Place
1.1 Introduction: Distribution channels
1.2 Functions of distribution channels
1.3 Number of channel levels
1.4 Marketing intermediaries
2. Promotion
2.1 Promotion mix
2.2 Steps in effective communication
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1. THE PLACE

Introduction: Distribution channels

Companies have to producing products or services and making them
available to buyers.
This requires building relationships with key suppliers & resellers
These relationships are very important for many reasons:
Globalization forces businesses to expand their activities
internationally. These companies often have no experience of foreign
markets. Hence, they have to choose foreign partners to help them
market or distribute their products.
Also, the importance of distribution channels has increased because
hospitality products are perishable.

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The “Place” refers to:
How a travel and tourism organisations gets their products to its
customers (i.e. Distribution)
Where the customer goes to access the product/ service (i.e. Access)

In other sectors, the distribution system moves the tangible product to
the consumer.
In the hospitality and travel industry, the distribution system moves the
consumer to the product.

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1.2Functions of distribution channels
A distribution channel moves goods from producers to consumers. Hence
they overcome time, place and possession gaps that separate goods and
services from thee consumer. For that, they perform many key functions:
Information - gathering and distributing marketing research and
intelligence information about the marketing environment.
Promotion - developing and spreading persuasive communications
about an offer.
Contact - finding and communicating with buyers.
Matching -shaping and fitting the offer, including manufacturing,
grading, assembling and packaging.
Negotiation - agreeing on price and other terms so that ownership or
possession can be transferred.
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Physical distribution - transporting and storing goods.
Financing - acquiring and using funds to cover the costs of channel
work.
Risk taking - assuming financial risks such as the inability to sell
inventory at full margin.

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1.3Number of channels levels

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1.4 Marketing intermediaries

Travel agents
One way of reaching a geographically diverse marketplace is through
travel agents.
In addition to selling airline tickets, travel agents book hotel sales, and
nearly all cruise travel.
hotels typically pay 10% commission to travel agents
cruise lines can pay up to 15%

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Tour wholesalers
Tour wholesalers assemble travel packages usually targeted at the
leisure market.
In developing a package, a tour wholesaler contracts with airlines and
hotels for a specified number of seats and rooms, receiving a quantity
discount.
retail travel agents sell these packages
The wholesaler has to provide a commission for the travel agent and
give consumers a package perceived as a better value than they could
arrange themselves.
plus they have to make a profit for themselves

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Tour Brokers and
Tour brokers sell motor bus tours, which are attractive to a variety of
markets.
Some motor coach tours are seasonal, some are based on one event,
and others are year round.
for hotels on their routes, motor coach tours can provide an important
source of income

Motivational Houses
Motivational houses provide incentive travel offered to employees or
distributors as a reward.
the incentive trip is usually to a resort area and includes first-class or
luxury properties

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Hotel representatives
Hotel representatives sell hotel rooms and hotel services in a given
market area.
They are very useful especially when the hotel would like to reach a
market in culturally different areas.
they receive straight commission, a commission plus a salary, or a
combination of both

National, State and Local Tourist Agencies

National associations promote tourism within their own countries.
State agencies promote the state resources and attractions overseas,
nationally and in the state itself.
Local/Regional associations can also help the independent and chain
operators.
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Hotel representatives
Hotel representatives sell hotel rooms and hotel services in a given
market area.
They are very useful especially when the hotel would like to reach a
market in culturally different areas.
they receive straight commission, a commission plus a salary, or a
combination of both

National, State and Local Tourist Agencies

National associations promote tourism within their own countries.
State agencies promote the state resources and attractions overseas,
nationally and in the state itself.
Local/Regional associations can also help the independent and chain
operators.
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Global Distribution Systems
Global distribution systems (GDSs) are computerized reservation
systems serving as a product catalog for travel agents and other
hospitality product distributors.
Originally developed by the airlines to promote sales, before the
Internet, GDSs offered a way for suppliers and end users to connect
globally.
There are four main GDSs: (Amadeus, Galileo, Sabre, and Worldspan)
The internet
Internet reservations account for almost 40% of leisure and business
travel bookings.
Almost all hotel brand web sites offer low price guarantee, to guests if
they book directly, rather than through an intermediary
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2. PROMOTION
It consists of communicating the offer of a travel and tourism product/service to
customers, and the methods used to acquire them.

2.1 Major promotion mix

Advertising - any paid form of nonpersonal presentation & promotion of
ideas, goods, or services by an identified sponsor
Sales promotion - short-term incentives encouraging the purchase or sale of a
product or service
Personal selling - personal presentation by the firm’s
sales force for the purpose of making sales & building customer relationships
Public relations -  building good relations with the various publics by obtaining
favorable publicity
Direct marketing - direct connections with targeted individual consumers to
both obtain an immediate response & cultivate lasting customer relationships
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2.2Steps in effective communication
Identify the target audience (start with a clear target audience in mind)
Determine the communication objectives (decide on what type of
response you want to obtain from your target: awareness; knowledge;
liking; preference; conviction, purchase)
Design the message (apply the Attention-Interest-Desire-Action model)
Select communication channels (choose between personal [e.g. email,
telephone] or non-personal [e.g. radio, tv, brochures])
Message source (Use attractive sources to achieve higher attention. e.g.
using celebrities)
Measure the result of the communication (evaluate the effects on the
target audience)

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