TRAVEL & TOURISM SECTOR

PRESENTED BY SADEKE SMITH

COLBOURNE COLLEGE
 What is Marketing?
Marketing is the sum total of
the activities involved in getting
products and services from
producer to customer.
 Ensuring the right product is
developed at the right time.
 Promoted at the right time
 Promoted at the right prices
 Satisfies the customer
 Marketing Challenges
The marketing of tourism is different
from other industries based off the
characteristics of tourism, which
includes,

 Tourist supply cannot be easily

change to meet changing taste. This
puts increased pressure on planners
to make the right development and
marketing decisions.
Marketing Challenges cont’d
 Tourist demand is highly elastic.
This means that changes in
tourist income will produce
proportionately larger change in
the demand for tourism.

 Tourist services are consumed

on the spot. This is to say
tourism cannot be stored. There
is constant pressure to sell
every room , every seat, and
every ticket everyday because
the sale that is lost today is lost
forever.
Marketing Challenges cont’d
 The tourist product is a
combination on services. A plane
seat, a hotel room , restaurant
meals, sight seeing, tours- lack of
services in any of these areas can
ruin a vacation experience for a
tourist. Anyone producer lacks
control over tourist satisfaction
for the entire vacation.
 Developing the promotional plan

Promotion consists of the activities undertaken to

increase sales.
There are various steps in the development of a
promotional plan. These are:
• Select target audience.
• Determine objectives.
• Develop an appropriate message.
• Select the promotional mix.
• Set a budget.
• Evaluate the campaign.
 MARKET SEGMENTATION
A marketer can rarely A market segment consists of a large identifiable group
satisfy everyone in a market! within a market, with similar wants, purchasing power,
geographical location, buying attitudes, or buying habits.

Because the needs, preferences, and behavior of segment

members are similar but not identical, Anderson and Narus
urge marketers to present flexible market offerings instead of
one standard offering to all members of a segment.

 A flexible market offering consists of the product and

service elements that all segment members value, plus
options (for an additional charge) that some segment
members value.

03/27/23 Philip Kotler - Marketing 7

Management Millenium Edition,
 Why Segment?

• Segment Marketing allows a firm to create a more

fine-tuned product or service offering and price it
appropriately for the target audience. The choice of
distribution channels and communications channels
becomes much easier, and the firm may find it faces
fewer competitors in certain segments.

03/27/23 Philip Kotler - Marketing 8

Management Millenium Edition,
 Types of Segmentation
• Geographic Segmentation
Geographic segmentation calls for dividing the
market into different geographical units such as
nations, states, regions, counties, cities, or
neighborhoods.

• Demographic Segmentation
In demographic segmentation, the market is
divided into groups on the basis of age and other
variables such as income, social class and
generation (generation x). One reason this is the
most popular consumer segmentation method is
that consumer wants, preferences, and usage rates
are often associated with demographic variables.
Another reason is that demographic variables are
easier to measure.
03/27/23 Philip Kotler - Marketing 9
Management Millenium Edition,
• Psychographic Segmentation
In psychographic segmentation, buyers are divided into
different groups on the basis of lifestyle or personality and
values. People within the same demographic group can
exhibit very different psychographic profiles.

• Behavioral Segmentation
In behavioral segmentation, buyers are divided into groups
on the basis of their knowledge of, attitude toward, use of,
or response to a offering Many marketers believe that
behavioral variables—occasions, benefits, user status, usage
rate, loyalty status, buyer-readiness stage, and attitude—are
the best starting points for constructing market segments

Philip Kotler - Marketing 10

Management Millenium Edition,
 Key Points to Remember
• More than developing a good product,
pricing it attractively and making it
available to the consumer, companies
must communicate continuously with
their present and potential customers.
• Communication messages should be
consistent with the company’s
marketing objectives.
• Companies must not only ask “How can
we reach our customers?” but also
“How can our customers reach us?”
Questions every Destination
Should Answer
• Does any one know who we are?
• Does the market know what we
offer?
• What does our company stand for?
• What is our record of service?
• What is our reputation?
• If these questions cannot be
answered, chances are that your
communications message is
ineffective and needs to be revised.
 The Promotion Mix
• The 4th P in Marketing is Promotion.
The Promotion Mix is a company’s
total marketing communications
program.
The Promotion Mix consists of:
• Advertising
• Sales Promotion
• Public Relations
• Personal Selling
Critical Steps towards
Communications Success

1) Identifying the Target Audience

- Who is this message for?
The Target audience heavily affects
the decision on what will be said,
how it will be said, when it will be
said, where it will be said and who
will say it.
 Steps cont’d
2) Determining the Communications Objective
- What goals we want to achieve
In most cases the objective is to get someone
to purchase. However getting a sale is the result of
a long process of getting the customer to
make a decision
> Achieving the objective requires several key
components:
a) Awareness – The communicator must be able to
assess how aware the market is about the product,
and must respond by developing a means through
which awareness will be created – Ad Campaigns,
Exhibitions, Brand Visibility (colours, logo etc).

Building awareness takes time!

Design the Message
3) Designing the
communications message
includes the following
components:
• Message Content
• Message Structure
• Message Format
• Message Source
 What is a Brand?
• A brand is an accumulation of
characteristics that form a
destination’s image and identity.
In other words, branding is a promise
to the consumer, an expectation of
performance and a mark of integrity
and reputation
(Travis, 2000)
 Destination Branding
• Destination branding is about
combining all the attributes
associated with the place (i.e. its
products, and services from various
industries such as agriculture,
tourism, sports, arts, investment,
technology, education, etc.) under
one concept, which expresses a
unique identity and personality of
the destination and differentiates it
from its competition.
Important things to Know

1) Branding creates that first idea about a

destination in the consumer’s mind
2) Branding efforts should be based on
visitors’ perceptions about the destination
3) A mission and vision are necessary
in destination branding
4) A destination brand exists in the mind of
the consumer who, if satisfied, remains
loyal and does not switch.
Critical Questions
> What do we want to be
known for?

> How will we stand out from

the crowd?

> What words do we want to

come to mind when people
hear our name?
Components of Destination Branding

Brand image is a key component in the

formation of a clear and recognizable brand
identity in the market (Williams et al, 1999).
Brand image is related to how
the brand is currently perceived by consumers
(Aaker, 1996, p. 71). In other words what is
the reputation of the brand in the
marketplace (Upshaw,1995,).
Cont’d

• Brand culture - is about the

system of values that surround a
brand much like the cultural
aspects of a people or a
country. (Upshaw,1995).
Cont’d
• Brand character is related to its
internal constitution, how it is
perceived in terms of integrity,
trustworthiness and honesty
(Upshaw, 1995). This is also
related with the promise of the
brand to deliver the experience
associated with itsname.
Cont’d
• Brand personality is the set of human
characteristics that are associated with the brand. It
includes such characteristics as gender, age,
socioeconomic class, as well as human personality traits
such as warmth and sentimentality (Aaker, 1996, p. 141).

• Brand essence or brand soul represents the emotional

elements and values of the brand. Essence should be
part of a long term positioning that does not change with
every communication
(http://www.allaboutbranding.com/index.lasso?
article=108).
Cont’d
Brand identity is how brand strategists want the brand to
be perceived. “It is a set of unique brand associations that
represent what the brand stands for.

These associations imply a promise to customers from

organization members.

Brand identity should help establish a relationship

between the brand and the customer by generating a
value proposition involving functional, emotional or self
expressive benefits”. (Aaker 1996, p.68)
O ffice

Destination Brand
Su p plies
D is tribu to r W orkf lo w D iag ram

S u pplie r Re c e iving V is u al I nsp e c ti on

V is u a l Ins p e ct ion S t ore Inv e n tor y C a t a lo g

Benefit Pyramid
P r e pa re s hip m en t S hi p C u sto me r

What
is the
essential nature Level 5
and character of
the brand?
What does value mean for
the typical repeat visitor? Level 4
What psychological rewards or
emotional benefits do people
get by visiting this destination?
Level 3

What benefits to the visitor result from the Level 2

destination’s features?

What are the tangible, verifiable, objective,

measurable characteristics of the destination? Level 1
Source: www.humsamf.auc.dk/edu/snf/turisme/brandingopl
%E6g.ppt)
Destination Brand Loyalty
• According to Marconi (2000, p. 62) in his book “Brand
Marketing” Consumers decide to remain loyal to the
brand based on the following elements:
• Value (price and quality)
• Image (brand’s personality and reputation),
• Convenience and availability,
• Satisfaction (deliver on the brand promise)
• Service and Hospitality,
• Unique past and future experiences
• Guarantee or Warrantee.
Measuring Brand Success
Factors that can be measured and can be indicators
of a brand’s success are:
1) Brand name awareness
2) Visitor Perceptions
3) The brand and its identity elements
4) Visitors opinions and attitudes
5) Brand loyalty and traveling behaviors.
 Conclusion:
Remember the essentials….
When a a decision is made to develop, transform or
maintain a brand one should consider the following key
points:

1) Understand how visitors perceive the destination and

build the brand’s components based on these
perceptions
2) Create a vision and a mission for the organization’s
branding efforts
3) Create a brand with unique features that differentiate it
from the competition
Cont’d
4) Remember… brand is a promise, it is
set of strong associations people have
with a place, which form their
expectations.
5) The brand has to deliver on the
expectations to increase its value and
create loyal customers.
6) Manage the brand through the right
positioning to stimulate and affect
consumer’s perceptions and claim a
position in their minds.
7) Monitor brand effectiveness
Reference
David Aaker. (1996). Building Strong Brands. New
York: The Free Press.

David Aaker. (1991). Managing Brand Equity:

Capitalizing on the value of the brand name.
New York: The Free Press.

Ramspus Marconi . (2000). The brand marketing book:

creating, managing and extending the value of
your brand. Chicago: NTC Business Books (in
conjunction with the American Marketing Association)