Tourism Marketing

Tourism Marketing19LEARNING OBJECTIVESAppreciate the Internet’s impact on tourism marketing.Become familiar with the marketing mix and be able to formulate the best mix for a particular travel product.Appreciate the importance of the relationship between the marketing concept and product planning and development.Understand the vital relationship between pricing and marketing.Be able to do market segmentation to plan a marketing program for the business you are most interested in.Demonstrate the linkage between tourism policy and tourism marketing.The marketing mix is composed of every factor that influences the marketing effortTimingBrandsPackaging PricingChannels of distributionProductImageAdvertisingSellingPublic relationsService qualityResearchMARKETING MIXWHAT IS MARKETINGThe American Marketing Association defines Marketing as: “an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”DollarsSales VolumeProfit MarginsIntroductionGrowthMaturitySaturationDeclinePRODUCT LIFE CYCLEProduct qualityProduct distinctivenessExtent of the competitionMethod of distributionCharacter of the marketCost of the product and serviceCost of distributionMargin of profit desiredSeasonalitySpecial promotional pricesPsychological considerationsFACTORS THAT INFLUENCEPRICE POLICIESPRICE SKIMMINGSkimming is appropriate when the product or service has the following characteristics:Price inelasticityNo close substitutesHigh promotion elasticityDistinct market segments based on pricePENETRATION PRICINGPenetration pricing is appropriate when the following factors are present:High price elasticityEconomies of scalesAn easy fit of the product into consumer purchasing patternsSELECTION OF CHANNELS OF DISTRIBUTIONChannels of distribution are selected byAnalyzing the productDetermining the nature and extent of the marketAnalyzing the channels by salesDetermining the cooperation you can expect from the channelDetermining the assistance you will have to give to the channelDetermining the number of outlets to be used PROMOTIONIn order to sell the product it is necessary to:Attract attentionCreate interestCreate a desireGet action TYPICAL BASES FOR MARKET SEGMENTATIONGeographicDemographicSocio-economicPsychographicBehavior patternsConsumption patternsConsumer predispositionsTypical bases for market segmentation. Source: W. Zikmund and M. D’Amico, Marketing, 3rd ed., copyright ©1984, New York: John Wiley & Sons, Inc.; adapted by permission of Prentice-Hall, Englewood Cliffs, N.J., from Philip Kotler, Principles of Marketing, copyright ©1980, p. 297.TYPICAL BASES FORMARKET SEGMENTATION