TOURISM AND

HOSPITALITY
MARKETING
Instructor: JOE-MARIE P. NOPRA
 Topics

01 02
Introduction to Tourism and The Tourist Market and
Hospitality Marketing Segmentation

03 04
Tourism and Consumer The Marketing Plan
Behavior
 Knowledge Test!
1-3. Name 3 Core Marketing Functions.
4-7. These make up the Marketing Mix.
8-10. Name 3 Unique Characteristics of the
Tourism Industry.
Marketing has become a buzzword in the world
of business when the competition to gain market
share began among businesses.

TRUE OR FALSE?

TRUE
01 Introduction to
Tourism and
Hospitality
Marketing
Marketing has evolved from
simple trade, to production
orientation, to sales
orientation.
When businesses realized
that production was
increasing, they began
competing for recognition
within the market.
Tourism is one of the leading industries of the
future. Next to information technology and
telecommunications, tourism contributes largely to
the generation of jobs and the strengthening of
economies.
In figures, tourism contributes 10.3% to the global Gross
Domestic Product (GDP), provides one out of ten jobs,
and generates exports amounting to $1.7 trillion.
 Marketing for tourism covers several
levels, from the tourism destination as the
product itself, down to the specific
tourism products and services that a
tourist should avail to complete the tourist
experience.
In a nutshell, Tourism Marketing is a marketing
strategy that uses specific marketing plan and
techniques to promote touristic products and
services such as destinations, hotels and transport
services, etc.
 Tourism Products
Transportation
Airline, Cruise ship, Bus, etc.

Accommodation
Hotels, Inns, Apartelles, Bed and Breakfast, etc.

Food and Beverage

Restaurants, Catering, Bars, etc.
 Tourism Products
Attractions
Amusement Parks, Museums, Zoos, Marine
Sanctuaries, etc.
Amenities
Souvenir Shops
 Unique
Characteristics of the
Tourism Industry
 Intangible
● Tourism products cannot be touched, smelled, tasted, felt,
nor heard prior to purchase.
● They cannot be subjected to prior scrutiny.
● One cannot examine nor test them before purchase,
unlike consumer products.
 Inseparable
● Tourism product cannot be separated from the consumer.
● When tourists avail of products and services, they must
personally go to where the products are.
● What is being sold is the “experience.”
 Variable
● The tourism experience is likely to be different
depending on when the product is availed, who one is
with, and how the service providers deliver the service
at the time of consumption.
● This is the primary reason why standardization of
operations is crucial in the tourism industry.
 Perishable
● The tourism product is highly perishable.
● Perishability, in this context, refers to not being able to
forward inventory to the next day.
● Products become perishable when they can no longer be
consumed today even when no one consumed them the
day before.
● “A sale lost today is a sale lost forever.”
 Seasonal
● Seasonality does not only refer to the seasons of the year or
the weather conditions.
● It pertains to the behavioral patterns of the travel market.
● The seasonality of the tourism product hinders it from
maximizing its profits all year round.
● This is also the reason why most tourism products, such as
airlines and resorts, have different rates throughout the
year.
 Substitutable
● Competition in the tourism industry is intensifying.
● With new destinations emerging and competing in the
global marketplace, one destination can easily be
substituted for another destination.
● When a new restaurant opens, old favorites are relegated
as second choices.
 Substitutable
● Challenge on establishing and sustaining loyalty among
clients since there is a wide range of product offerings to
choose from.
● Identifying one’s competitive advantage and a unique
selling proposition may help make a tourism product
less substitutable.
 High Involvement Product
● “Decision-making in the purchase”
● Tourism products of high involvement mean that there is
greater degree of thought or study involved prior to the
purchase.
● Expensive, complex, and unrepeatable are the
characteristics of high involvement products.
 High Involvement Product
● Expensive products - likely to go through a long and
detailed process of canvassing and comparing of brands,
suppliers, and product features.
● Complex products - difficult to purchase; there is a need
to understand the features or details of the product.
Example: Travel packages
 High Involvement Product
● Unrepeatable nature of travel - “once in a lifetime
purchase”; with the novelty seeking behavior of most
tourists and the high cost of travel, travel purchases not
be repeated or may be infrequent.
 Marketing in the Past

Advertising Selling
The two activities are now part of a more complex set of
strategic activities that comprise marketing.
 Marketing Misconception

Account Marketing
Managers Officers
 A highly successful establishment makes marketing a
concern not only of guest contact positions but of every
employee of the establishment.
Customer satisfaction is at the center of marketing.
 It is easy to persuade a customer to make the initial
purchase but making the customer return for more is
dependent on their satisfaction from their initial
experience.
 Marketing is defined as “the process by
which companies create value for
customers and build strong relationships
in order to capture value from the
customers in return. (Kotler, et al., 2017)
In an earlier definition, marketing is defined as a
social process where individuals and groups obtain
what they need and want through creating and
exchanging products and value with others.
(Kotler, 2002)
Tourism Products is part of the…

NEEDS WANTS WANTS

Marketing is also defined as the art and
science of “finding, retaining, and
growing customers.” (Kotler, Bowens,
and Makens, 2010)
Customer-centered Marketing and Relationship Marketing
 Finding, retaining, and growing profitable customers
involve strategic planning to ensure customer satisfaction
and building of customer loyalty.
 Repeat visits and referrals are the ultimate goals of
ensuring that customers become extremely satisfied with
one’s products and services.
 REMEMBER:
It is more expensive to create new customers than it is to
retain old ones.
 Tourism and Hospitality Marketing can be
defined as a management process where
destinations, products, and services are
designed, promoted, and distributed to meet
the needs and wants of prospective tourists.
 Marketing as a
Management Process
 Key Processes

Marketing Planning Tactical

Information System Campaigns

Marketing Planning Marketing

Operations

Monitoring and Control

 Marketing Information System
● Compilation of updated set of information about the
customers, competitors, and the organization’s
capability and effectiveness.
 Marketing Planning
● Analysis of the marketing environment in relation to the
potential of one’s business.
● Setting up of objectives and evaluation of milestones of
the company.
● Creation of marketing strategies will help increase
business by obtaining the best fit between the
company’s resources and its target market position.
 Planning Tactical Campaigns
● Ensuring that practical and realistic tactical campaigns
are conducted in support of the comprehensive
marketing strategy.
 Marketing Operations
● Challenging part of implementing the planned strategic
and tactical campaigns by coordinating with all the
stakeholders, fine tuning the marketing mix as they
unfold, and ensuring that activities are conducted as
planned.
 Monitoring and Control
● Ongoing process of evaluating sales data and financial
performance versus marketing activities conducted.
● Handling of customer feedback and complaints (if any)
and coordinating with what the staff has to say about
the marketing campaigns.
● Being aware of what the competitors are doing.
 Marketing Information
Management

Core Financing
Marketing
Functions Pricing

Promotion
 Marketing Information Management
● Entails gathering information about customers to better
serve their needs and improve decision-making.
 Financing
● Involves planning to ensure that resources are available
to maintain and improve the business.
 Pricing
● Ensures that the value and cost of goods and services
offered to customers will be at the level that customers
are willing to pay.
 Promotion
● Prepares the various promotional strategies that will
enable the products to be introduced and sold to the
customers.
 Product/Service Management

Core
Marketing Distribution

Functions
Selling
 Product/Service Management
● Involves designing, developing, maintaining, improving,
and acquiring products and services to meet the needs of
the customers.
 Distribution
● Involves bringing the products and services to the
customers in the best possible way.
 Selling
● The ultimate measure of marketing success.
● Strategies on following up the sale, closing the sale, and
making a repeat sale are crucial tasks of marketing.
 The Marketing Mix

1 2 3 4

PRODUCT PRICE PLACE PROMOTIO

N
PRODUCT OR
SERVICE

What the company is

offering to satisfy a
consumer’s want or need.
PRICE

The value that the seller

puts on the product or
service.

Combination of the cost of

the product and the profit
the seller wishes to make.
PLACE

The means by which the

product or service reaches
the consumer.
PROMOTION

The strategic plan by which

customers are informed
about the product or
service.

Encourages the customers

to purchase.
Integrated Marketing Communications Approach

The process of using all forms of promotion to achieve

maximum communications impact while maintaining a
consistent image for the products or services.
With the growth of technology, consumers have become
less responsive to traditional advertising.
There is a great challenge for
advertising agencies and
marketing departments to
maximize resources for better
efficiency and effectiveness.
 Traditional advertising

IMC Incentive-based Compensation

Approach Consolidation of the retail industry

Database Marketing

Digital Marketing
 Use of IMC Approach

Reach Target Achieve Within

Market Company Available
Objective Budget
As such, businesses have shifted the compensation of
advertising agencies from fixed compensation to
incentive-based compensation.
A challenge for advertising agencies to come up
with an integrated approach in mixing the different
promotional tools to yield maximum results
because the more effective their marketing strategy
is, the higher their pay will be.
 The rise of big retailers such as SM Malls, Puregold,
Robinson’s Malls, etc. has also altered the way marketing
and promotions are implemented.
The consolidation of the retail industry has affected
the way people consumed products. Big retailers
can actually dictate the brands that will make it to
their shelves.
Retailers can dictate the discount scheme and
merchandising support they would need from
manufacturers.
The growth and development of database marketing have
also enhanced the use of the IMC approach.
With enhanced computer programs adopted by
many tourism establishments such as hotels,
airlines, and restaurants, database management is
facilitated.
These databases would be most helpful in carrying
out direct marketing campaigns such as
telemarketing and loyalty programs.
The behavior and needs of consumers are tracked,
and customers are served more efficiently through
the management of a sound and updated database.
Due to the advent of technological advancements, the
IMC Approach has become a popular option in
maximizing resources and optimizing results.
Digital marketing strategies have made smaller
destinations with fewer resources noticed in the
crowded marketplace due to videos or social media
posts that have become viral.
End of Chapter 1.

QUESTIONS?