Modules 1-4.pptxxxxxxxxxxxxxxxxxxxxxxxxx
- 2. LESSON 1 Tourism Marketing Definition and the Unique Characteristics of Tourism
- 3. WHAT IS TOURISM MARKETING? Marketing is associated with strategic activities of advertising and selling. Tourism Marketing is promoting the Tourism products and services in line with Tourism’s unique characteristics.
- 4. UNIQUE CHARACTERISTICS OF TOURISM PRODUCTS AND SERVICES Intangible-Tourism product cannot be touched, smelled, tasted and felt nor heard prior to purchase. One cannot examine nor test them before purchase. Inseparable-Tourism product cannot be separated from the consumer. When tourists avail of products and services, they have to personally go to where the products are. Variable-The tourism experience is likely to be different depending on when the product is availed, one who is with, how the service providers deliver the service at the time of consumption.
- 5. Perishable- The tourism product is one of the most highly perishable of products. Perishability as used in this context, refers to not being able to forward inventory to the next day. It does not refer to food being spoiled and thrown away. Products become perishable when it can no longer be consumed today even when no one consume it the day before. Seasonal-Seasonal does not only refer to season of the year or the weather conditions. It also refers to behavioural patterns of the travel market. The seasonality of the tourism product hinders it from maximizing its profits all year round. Hence intensified marketing during the lean season will help increase demand for the product. 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.
- 6. LESSON 2 Marketing as a Management Process, Core Marketing Functions and The Marketing Mix
- 7. MARKETING MANAGEMENT PROCESS Marketing Information System – compilation of updated set of information about its customers, competitors, and the organization’s capability and effectiveness. Marketing Planning- This involves analysis of the marketing environment in relation to the potentials of one’s business. Planning Tactical Campaigns- This step ensures that practical and realistic tactical campaigns are conducted in support of the comprehensive marketing strategy. Marketing Operations- This process involves the challenging part of implementing the planned strategic and tactical campaigns by coordinating with all concerned and ensuring that activities are conducted as planned. Monitoring and Control- This involves the ongoing process of evaluating sales data and financial performance versus marketing activities conducted. It also includes the handling of customer feedback and complaints and finally, being aware of what the competitors are doing.
- 8. CORE MARKETING FUNCTIONS 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 bus. 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 – 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 way possible. Selling- is 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.
- 9. THE MARKETING MIX Product- is what the company is offering to satisfy s consumer’s want or need. Price- is the value that the seller puts on the product or services. Place- is the means by which the product or services reaches the consumer. Promotion- Strategic plan by which customers are informed about the products and service and its value.
- 11. WHAT IS INTEGRATED MARKETING COMMUNICATIONS APPROACH? The Integrated Marketing Communications (IMC) is the process of using all forms of promotion to achieve maximum communications impact while maintaining a consistent image for the products or services. The Integrated Marketing Communications (IMC) approach was born out of a need to enhance the demands of businesses to promote their products. With the growth of technology, consumers have become less responsive to traditional advertising.
- 12. FIGURE 1.1 USE OF INTEGRATED MARKETING APPROACH TO REACH THE TARGET MARKET WITHIN THE AVAILABLE BUDGET TO ACHIEVE COMPANY OBJECTIVES
- 13. MODULE 2 The Tourist Market and Segmentation
- 14. LESSON 1 Market Definition, Segmentation, Targeting and Positioning
- 15. A market is a set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships. (Kotler et al. 2010). The tourism product is not for all. The tourism industry aims to target a specific set of individuals. Three Steps to target marketing: 1. Market Segmentation 2. Market Targeting 3. Market Positioning
- 16. 1. MARKET SEGMENTATION Dividing the market into distinct groups who might require separate products and/or marketing mixes. A market is comprised of varied profiles and characteristics that can be further segregated. Market Segment- is a subgroup of the total consumer market who shares similar characteristics and needs relevant to the purchase of a product, service, or experience.
- 17. CHARACTERISTICS OF A MARKET SEGMENT Identifiable – people can be located and identified Cohesive- consumer should be a part of a whole whose specific qualities are common Measurable-size and potential spending of the members of the market segment. Accessible- members should be accessed by marketing efforts and promotional acts. Substantial- segments should be large in order to be substantial Actionable- enough resources and commitment to enable effective penetration.
- 18. VARIABLES OF SEGMENTATION Geographic Segmentation- divides the market into different geographic units such as nations, states, regions, countries, cities, neighbourhoods, barangays, towns, etc. Demographic Segmentation- segmenting the market based on variable such as age, life cycle, gender, income, occupation, education, religion. Psychographic – divides consumers based on different psychographic profiles such as social class, lifestyle and personality characteristics. Behavioral – dividing groups based on their knowledge, attitude,use of or response to a product or service.
- 19. 2. MARKET TARGETING Evaluating each segment’s attractiveness and selecting one or more of these market segments in which to operate one’s business. A careful assessment of these specific market segments will help the firm identify which ones it should target. Three factors to consider in evaluating which segment should be targeted. Segment size- refers to the current sales volume, growth rate, and high profit margin. Attractiveness – refers to the potential impact of the segment to the company. One that is not saturated and has few aggressive competitors would be structurally attractive. Company objectives and availability of resources- refers to the main reasons for its decision making and the available resources the company will use to make its objectives a reality.
- 20. 3. MARKET POSITIONING Developing competitive positioning for the product and an appropriate marketing mix. Positioning has everything to do with the deliberate way by which marketers would want to position their product in the consciousness of its prospective customers. Its goal is to identify the products unique characteristics in a way that would differentiate it in the marketplace. Three (3) market positioning concepts: Unique selling proposition – what makes the product/service different from others. Competitive advantage – product/service advantage over competitors Top of Mind – highest level of recall that the brand receives.
- 21. LESSON 2 New and Emerging Markets in the New Normal
- 22. NEW AND EMERGING MARKETS IN THE NEW NORMAL The study of new and emerging markets in tourism is vital in the growth of destinations. In order to obtain sustainable competitive advantage, the process of new market identification should be taken seriously. If you are also thinking about how your business should confront the COVID-19 crisis or if you have already taken the first actions to adapt to the “new normal”, in this module, several interesting measures seen from other professionals in the hotel & tourism sector who work in many of the top international hotel chains will be briefly discuss. The impact on the travel industry will continue to be more severe and long-lasting. Some parts of life will return to normal quickly, but the travel industry will undergo a fundamental reset.
- 23. VARIABLES THAT AFFECT THE NEW AND EMERGING MARKETS 1. Closed borders Countries across the world so far have adopted complete or partial border closures. The era of traveling freely from country to country seems to be over for the foreseeable future. 2. Behavioral norms Social distancing norms and limitations on public gatherings will stay past the easing of lockdown measures and will have a profound impact on our daily life.
- 24. 3. Uneven recovery Even if the world is open for business, travelers’ wallets will likely not.Six of the 10 countries with most COVID19 declared cases are also in the top 10 ranking of the world’s richest economies. It seems inevitable that low income countries, emerging markets and developing economies will be hit particularly hard given a combination of lack of medical infrastructure to respond to such a crisis, and inability to deploy the scale of financial assistance and emergency support programs that richer economies can. 4. Focus on core business Travel players will have to readjust to the new normal. Hotels and airlines will need to reinvent large components of their product and value proposition in order to adapt to new regulations and behavioural norms. They will also have to readjust their geographic footprint based on the new travel flows, travel restrictions and country specific opportunities.
- 26. LESSON 1 Factors that Influence Consumer Behavior and Organizational Buyer Behavior
- 27. KEY FACTORS THAT HAVE AN INFLUENCE OVER CONSUMER BEHAVIOR Motivations Culture Age and Gender Social Class Life Style Life Cycle Reference Groups
- 28. 1.MOTIVATIONS Inner drives that make people take a specific plan of action to satisfy their needs. Maslow’s Hierarchy of Needs -Outline the different needs of man, and rank them based on degree of importance in a simple and easy to understand manner. Travel and Tourism, for a great part, belong to the higher order needs.
- 29. 2. CULTURE Collective programming of the human mind which distinguishes one group of people from another. This kind of programming influences patterns of thinking which are reflected in the meaning people attach to various aspects of life and which become crystallized in the institutions of a society. Hofstede discloses the six dimensions of culture:
- 31. 3. Age and Gender Age pertains to the number of years a person has been living. Age is s traditional way of segmenting the market and also greatly influences consumer behavior. Likes and preferences of consumers are normally dependent on their ages. Travel packages are normally tailor-fit depending on the generation of the target market. Gender also influences consumer behavior. The female market is steadily increasing and has been observed to be more discriminating than its female counter parts. 4. Social Class One’s position within the society and is determined by factors such as income, wealth , education, occupation, family prestige, and value of home or neighbourhood.Social class has commonly been referred to in the Philippines through letters – A,B,C,D,E.
- 32. 5.Lifestyle Person’s pattern of living as expressed in one’s activities, interests, and opinions. It portrays the whole person interacting with external forces. 6.Life Cycle Stages an individual goes through in their lifetime. Preferences and activities of single, married, family and other stages of the life cycle may vary; thus, influencing consumer and purchase behavior. 7. Reference Groups Set of people who have a direct and indirect influence on other people’s attitudes or behavior. These people can be a member of your family, a teacher, a classmate in school, a boss or a colleague in your workplace or your priest or pastor in the church. Reference group is extremely important in selling tourism products because the product is intangible; hence word of mouth plays an important trigger for purchase decisions.
- 33. LESSON 2 The Buyer Decision Making-Process and Customer Satisfaction
- 34. STAGES OF THE BUYER DECISION MAKING PROCESS 1. Need Recognition Marketers need to find out what people needs are. 2. Search for Product Information Internal Information stored in long term memory-External Information acquired from outside sources 3. Product Evaluation-comparison of products and service providers 4. Product Choice and Purchase consumers make the purchase decision 5. Post-purchase Use and Evaluation - Degree of satisfaction of customers 6. Disposal of the Product -Customers decided to upgrade the product/services
- 39. WHAT ABOUT THE NON-USERS? WHO ARE THEY? Classification of Non Users Ex-users – who stop using the product/services Need to be persuaded – who are aware of the product but need persuasion to purchase. Not Aware – doesn’t know the product/service is existing.
- 40. MODULE 4 Tourism Marketing and the Communication Process
- 41. LESSON 1 Communication Theories and Models of Communication
- 42. Communication theories can help us understand how to communicate better. Some communication scholars have come up with theories that will enable marketing practitioners to understand how to effectively communicate with their target market. Marshal McLuhan, one of the more popular theorists, describes communication as technological determinism. He says, “The medium is the message”. It simply means that the messenger is more important than the message; the one who says it is more important than what is said.
- 43. MODELS OF COMMUNICATION 1. Harold Lasswell’s SMCRE Model (Sender,Message,Channel,Receiver, Effect)
- 44. 2. SHANNON AND WEAVER’S MATHEMATICAL MODEL
- 45. 3. BERLO’S SMCR COMMUNICATION MODEL (SOURCE, MESSAGE, CHANNEL, RECEIVER)
- 46. 4. OSGOOD AND SCHRAMM’S MODEL OF COMMUNICATION
- 47. LESSON 2 Role of Culture in Tourism Marketing, Role of Opinion Leaders and Role of Innovation in Marketing.
- 48. Role of Culture in Tourism Asians regard older people, persons in authority with a lot of respect. Role of Opinion Leaders Those that pass on information to other, less active members of his group. Role of Innovation in Marketing Implies the spread of a new idea from its source to its users.
- 49. LESSON 3 Role and Goal of Marketing Communication
- 50. COMMUNICATION AND ITS RELATIONSHIP ON TOURIST SATISFACTION Greater ease in communication leads to higher satisfaction levels. Communication has a lot to do with shaping influence. The way we communicate with people determines the level of influence we have on others. Marketing is all about communicating the best our products, services, and ideas have to offer. Word of mouth is communication at its finest level. Its value is verbally passing on of information from one person to another. Positive word of mouth still is the most effective means to sell products and services. The higher the influence a person has, the more effective word of mouth is; thus the value of celebrity endorsers, opinion formers, opinion leaders, influencers, and early adopters.
- 51. COMMUNICATION PROBLEMS Failure in communication may be due to several factors: Language barriers – Since tourism industry is a global industry, communication may become difficult due to differences in language. “Google translate” has become a very handy tool for Filipinos who travel to non-English speaking countries. Varied connotations of words, signs, and symbols. – The thumbs up sign, for instance means differently depending on culture or race. It means “the best” to Americans, “money” to the Japanese, but is vulgar in Latin American countries. Cultural differences- The popular “beso-beso” for Filipinos is expressed differently in some countries. Some European countries express a warm greeting through a peck on each cheek and not just on one as Filipinos are accustomed to. A pat on the head for Filipinos is an act of endearment while it is rude to do the same to Thais. Faulty word choices- A careful choice of words can help improve communication while faulty word choices can cause miscommunication. Mistranslations- Faulty translation from one language to another or one dialect to another may cause misunderstandings.
- 52. WHY IS MARKETING COMMUNICATION IMPORTANT? WHAT IS THE GOAL OF MARKETING COMMUNICATION? The goal of marketing communication is to achieve common ground between the sender and the receiver. The bigger the union of the two circles, the easier it is to encourage and influence the other person. Wilbur Schramm’s model of communication encapsulates the goal of marketing achieving understanding and common ground.