THC 7 reviewer

Week 2&3

Tourism and Hospitality Marketing

Tourism
Comprises the activities of persons traveling to and staying
in places outside their usual environment for not more than
one (1) consecutive year for leisure, business and other
purposes.

Hospitality
This refers to companies or organizations that provide food
and beverages, and/or accommodation to their guests.
Hospitality Marketing
Marketing Hospitality marketing looks at how different sectors of the
A social process by which individuals and groups obtain hospitality industry (e.g. accommodations, food and drink,
what they need and want through creating and exchanging tourism and travel) develop marketing strategies to promote
products and value with others (Kotler, 2002) their products or services, resulting in an increase in
revenue.
-These are professional activities directed at identifying and
satisfying needs and wants of the buying public resulting in Why is Hospitality Marketing Important?
exchange processes
- Philip Kotler Famous Mktg. Author Marketing Management
The planning, organizing, controlling and implementing of
SALE marketing programs, policies, strategies and tactics designed
Exchange of goods and services for money. to create and satisfy the demand for the firms’ product
offerings or services as a means of generating an acceptable
PRODUCTS profit.
Something tangible that can be touch and seen
Marketing Management Involves:
SERVICES 1. The setting of marketing goals and objectives,
Experience which is intangible and therefore, evokes 2. Developing the marketing plan,
emotions. 3. Organizing the marketing function,
4. Putting the marketing plan into action and
5. Controlling the marketing programme.
Exchange
5 Conditions Marketing Management – Concept
1. Two parties
2. Offerings (Product or service) Traditional Marketing vs. Modern Marketing
3. Communication & delivery i. Focus on customer needs
4. Decision (accept or reject) ii. Providing consumer satisfaction
5. Believes it is appropriate or desirable to deal iii. Integrated Marketing Management
iv. Achieving organizational goals
In order to reach the stage of an exchange process, the v. Innovation
marketer must:
- Identify markets Marketing Mix
- Identify the needs
- Develop the appropriate offerings to satisfy the need Marketing Mix 4Ps
- Promote offerings Product
- Deliver the offerings to market Place
- Price them according to the target market & provide the Promotion
after sales service Price

Market Modern Marketing Management 4Ps

The set of actual buyers of the offerings. People
Processes
Programs
Ways how producer reach the consumer Performance
1. Selling directly to the consumer
2. Through Middlemen Hospitality marketing vs. Marketing of manufactured
goods
Characteristics of Tourism and Hospitality Products and A. Problem recognition
Services B. Information search
Intangible C. Evaluation of alternatives
Inseparable D. Choices of purchase
Variable E. Evaluation of post-purchase experience.
Perishable
Seasonal  Response: buyers behavior
Substitutable
High Involvement Stage in the adoption process

WEEK 4-5 - Awareness

Consumers behaviour in services and the future guest - Interest
- Evaluation
A buyer behavior model in tourism - Trial
- Adoption
Stimulus-response Model
Hospitality market segments
Stimuli  Dividing the market into distinct groups
Processing  Performance to facilitate more cost-effective
Response marketing through the formulation, promotion and
delivery of purpose-designed products that satisfy
Components of Stimulus-Response Model the identified needs of target groups.
 Stimulus inputs Methods of segment a market
- Formative communication channels
- Informal communication channels  Geographic segmentation
 Processing - States
o Buyers characteristics Influencing the Decision - Countries
- Needs, desire and motives – psychology - Cities
holds that continuous blending of feelings of - Towns
needs, wants and goal generates uncomfortable - Nations
tension within individuals’ minds and bodies.  Demographic segmentation
- Personality – measures individuals’ - Religion
psychographic attributes using dimensions. - Race
- Personal and Economic Circumstances – the - Age
amount of leisure and disposable income an - Gender
individual devotes to tourist activities. - Income
- Social and Cultural Influences - social  Psychographic segmentation
influences cause new products to spread - Profile
through a society. Culture on the other hand is - Personality
the sum of the shared attitudes, values and - Lifestyle
behavior of group. - Class
- Social
Personal and Economic Factors Marketing tactics before, during and after service
- Stage of life
- Occupation Marketing tactics
- Personality - These are the strategic actions that direct
- Lifestyle the promotion of a product or service to
- Economic Status influence specific marketing goals.

Social factors Before

- Reference groups - A method employed by service marketers
- Family is to reduce claims of their products and
- Role and status service by creating expectations

Cultural factors During

- Culture - The quality of service depends on the
- Sub-culture information the guest brings to the service
- Social class encounter.
o Information Processing After
- Perception - The marketer’s job does not end with the
- Learning - cognitive learning, classical purchase of a product or service.
conditioning and operant conditioning.
- Attitudes - enduring favorable or
unfavorable thoughts and feelings towards
something.
o The consumer decision-making:
The future guests - Customers
- Emotional experience
- Time conscious 1. Macro (Broad environment)
- Health conscious - It is the larger external surrounding that
- Value addition influence an organization.
- Woman power
- Business wealth Main influencing factors of macro environment:
- Information 1. Political environment
- DIY competent 2. Economic environment
- Techno savvy 3. Technological environment
- Hygiene-conscious 4. Media
- Language savvy 5. Demographical environment
- Point casting 6. Natural environment

Customer Expectation and Service and Exceeding Micro environment

Customer Expectation - A micro environm3nt has an immediate
influence in an organization. This is a
Mode of expectation reality that organization must deal with
- Dreams expectation daily.
- Desire expectation The main influencing factor in the microenvironment
- Experience-based expectation are:
- Acceptable expectation 1. Customers
- Basic expectation 2. Employees
3. Suppliers
Factors influencing expectation in service 4. Service agencies
 Influence of situation
 Tolerance level to service Market research
a. Type of product on offer - The gathering and analysis of information
b. Time about customers, competitors, distribution
c. Price channels and other forces in the
d. Relative importance of service factors marketplace that influence the sale of
 Satisfaction of personal needs product and service.
 Influence of others
 Temporary short-term needs Applied research in Tourism
 Perceived service alternatives
 Perceived self-service  Research on consumers
 Predicted service - Identifying existing, potential and lapsed
a. Word of mouth consumer and changes in attitudes and
b. Explicit service promises behavior patterns.
c. Implicit service promises - Identifying general trends in demographics
d. Past experience and psychographics.
 Research on product and service
Marketing environment and market research - measuring attitude towards existing
product
Marketing environment - consideration of the product life cycle.
- A mix of those internal and external factors  Research on pricing
which influence the successful sale of a - Identifying attitudes towards prices
product or service. Some factors are - Testing attitudes towards packages and
controllable, and others are not. individual pricing.
Marketing environment  Research on place and distribution
 Internal environment or controllable factors - Identifying attitudes towards location.
 External environment or uncontrollable factors  Research on promotion
- Micro environment - Testing and comparing media options
- Macro environment - Testing new communication options
Macro environment  Research on competition
- Economic - Measuring awareness and usage
- Demographic  Research on the operating environment
- Social - Economic and social media trends
- Media - Environmental issues
- Technology - Technological development and its impact
- Natural  Research on a destination
- Political - Measuring resident’s attitudes and
Micro environment customers loyalty.
- Employees - Branding research
- Services
- Suppliers
STAGES IN RESEARCH PROCESS Qualitative research techniques
 Identifying and defining the problems - vital to  Participative/participant observation- complete
make sure that any information gathered is participant, participant as observer, observer as
relevant. participant, complete observer.
 Exploratory – helps you define the problem and  Focus group - the interviewer becomes the
suggest hypotheses. facilitator.
 Descriptive - to describe the size and  Virtual focus group – online chat sessions.
composition of the market.  In-depth interviewer – interviewer meets the
 Casual – testing hypotheses about the cause-and- interviewer for about 45 minutes to one hour.
effect relationship.
 Investigating available resources -looking for Research use two types of questions
available information.
 Developing the research plan - research 1. Close Questions
objectives must be translated into specific - Responses of yes or no
information needs. 2. Open Questions
 Primary data – information collected for the - Questions would typically start with what,
specific purpose at hand where, which, why, when, and how.
 Secondary data – information that already exists
somewhere and have been collected for another Product formulation the evolving marketing mix and
purpose before distribution channel
 Data collection – the phase usually the most
expensive and prone to errors. Overall tourism product
 Data analysis – to get necessary information and - As far as the tourist is concerned, the
findings, the data gathered must be processed and product covers the complete experience
analyzed from the time he leaves home to the time he
 Presenting research results – before returns to it.
recommendations can be made regarding - The tourist product is to be considered as a
appropriate courses of action, information needs to mixture of three main component.
be tabulated and interpreted. 1. Attraction
2. Facilities
Research methodology 3. Accessibility

Primary versus Secondary Component of overall tourism product

Primary  Destination attractions and environment –

- It requires the gathering of data not elements within a destination that largely
available from any other sources determine consumers’ choice and influence
Secondary prospective buyers’ motivation.
- Information gathered originally for a  Destination facilities and service – these are the
purpose not related to the needs of a component elements found in the destination or
particular business. link to it, which make it possible for visitors to
stay and in other ways
Quantitative versus Qualitative  Accessibility of the destination – these are the
private and public transport aspects of the product
Quantitative that determine the cost, speed and convenience.
- A study from which numerical estimate  Images and perceptions of the destination – the
can be performed attitudes and images customers have towards
Qualitative product strongly influence their buying decisions.
- Is suitable gaining an in-depth knowledge  Price to the consumer – the sum of the costs of
of underlying reasons for which answers travel, accommodation and participation in a
cannot be predicted. selected range of facilities and services.

Quantitative research techniques Specific Tourism Product

 Questionnaires or survey method  It serves to stress the point that any individual
 Factual survey – respondents is asked to state product is composed of a series of elements or
certain facts. processes that combine to satisfy the purchasers’
 Opinion survey – respondent is asked to express need.
an opinion or make an evaluation or appraisal
 Interpretative survey – respondents acts as an Components of specific tourism product
interpreter as well as the reporter - In designing a product within the service
operations, there are internal dimensions of
products. These are:
- Core product
- Formal product
- Augmented product
 The unique selling positioning (USP) – used to
identify what makes a product or service different from
Core product each other.
- The essential service or benefit design to
satisfy the identified needs of target The difference is worth if it has the following criteria:
customer segments  Importance – highly valued benefits
- These are intangible and not factual.  Distinctive – more unique
Actual/formal/tangible product  Superior – greater than others
- Comprises the formal offer of a product as  Communicable – visible to buyers
set out in a brochure or website; stating  Preemptive – can’t easily copy
exactly what is to be provided at a specified  Affordable – can afford the difference
time at a specified price.  Profitable – introduce the difference profitable.
Augmented product
- It comprises all forms of added value, that C. Selecting overall positioning strategy
producers may choose to build into their Value proposition - full positioning of the brand,
formal product offers. including the full mix benefits on which it is
differentiated and positioned.
The evolving Marketing mix tourism
- Product means customer value Possible value proposition:
- Price means cost
 More for more
- Promotion means communications
 More for the same
- Place means convenience
- The people component  Same for less
 Visitors  Less for much less
 Employees  More for less
 Host community
Developing a positioning statement
- The service delivery process
 This involves the consumer interacting with an
A positioning statement summarize a company or brand
employee face-to-face on a firm’s premises.
positioning.
- Managing physical evidence and design
 Communicates messages about quality, Distribution channels in tourism
positioning and differentiation, and helps to set
and meet visitor expectation. Distribution channel
The function of distribution is to make product available for
Market Differentiation and Positioning purchase by potential customers
Differentiation Types:
- Differentiating a company’s market Direct distribution – a firm sells its product directly to
offering to create superior customer value. consumer
Positioning Indirect distribution – a firm sells its products through
- Arranging for a product to occupy a clear, some form of middleman and sells the product n behalf of
distinctive and desirable place relative to the business.
competing products in the mind of the
target market. Marketing intermediaries
- These are channel distribution that include
Choosing a Differentiation and Positioning Strategy travel agents, tour operators, travel
specialists and the internet.
A. Identifying possible value differences and Travel agents
competitive advantages - Offers the tourism customer a variety of
service, including everything from
Competitive advantage – advantage over competitors transport to accommodation.
gained by offering great value. Tour operator
- Are organization that offer packaged
 Product differentiation – based on features, vacation tours to the general public
performance, style and design.
 Service Differentiation – providing speedy, Travel specialist
convenient, careful delivery of product. - Intermediaries that specialize in performing
 Channel differentiation – the way an one or more functions of a company’s
organization design its channel’s coverage, distribution system
expertise and performance. - Tour brokers – sells coach tours
 People differentiation – involves hiring and - Motivational houses – provide incentives
training better people than competitors do. travel
 Image differentiation – image should convey a - Junket representative - serves the casino
product’s distinctive benefits and positioning. industry.

B. Choosing the right competitive advantage.

Internet
- An opportunity to avoid intermediaries and
to sell basic products and service directly to
the customer.

Broad strategies in distribution

Intensive - maximize the exposure of travel services by

distributing through all available outlets.

Extensive – restricts the number of channels that its uses to

distribute its product or service to its customers.

Selective – using one but less than all of the possible

distribution channels