Book: Micro Perspective of Tourism & Hospitality Author: Zenaida Cruz Copyright: 2019 OBE :) With short quiz at the last part!

1. Tourism
Marketing
Chapter 9

2. • Marketing consists of all those activities necessary to bring
a product or service from the manufacturer to the end user.
• The product or service itself;
• The methods of distribution;
• The methods of pricing;
• The methods of promotion;
• The form of selling; and
• The form of advertising.
In relation to tourism, marketing is the systematic process by
which an organization tries to maximize the satisfaction of
tourist demand through research, forecasting, and the
selection of tourism products and services to meet that
demand.

3. Uniqueness of Tourism Marketing
• Tourism is a service.* Because it is a service, production and
consumption take place at the same time.
• Tourism supply cannot be stored. Airline seats, hotel rooms,
or restaurant seats not sold today lose that particular sale
forever.
• The service provided is usually composed of several
components such as transportation, lodging, food &
beverage, attractions, activities, and the like.
• Tourism product is that travel intermediaries are a
necessity.
• Tourism is that the demand is highly elastic, seasonal in
character, and subject to changes in taste & fashion.

4. Marketing Orientation
• A product orientation emphasizes the products or services that are
available.
• It may be successful if there is a surplus of demand over supply. Thus,
the destination which offers the best product will get the tourist.
• The old adage that reflects this is “build a better mousetrap, and the
world will beat a path to your door.”
• When there is more supply than demand, the consumer orientation is
used.
• Consumer orientation places the needs and wants of the tourist
foremost in the mind of the marketer who seeks to provide a product
or service that will satisfy those needs and wants.
• The social-marketing approach or social orientation which focuses on
the satisfaction of tourist needs & wants while respecting the long-
term interests of the community.

5. Marketing Segmentation
• Market segmentation is a universally accepted way of analyzing
demand. It is the grouping together of people with similar
needs and wants for the purpose of serving the market better.
• 4 criteria that have been developed by which a market segment
can be constructed:
1. Socioeconomic segmentation – are the most commonly
used at present due to the ease of collecting data, the
comparability of such information through census, as well as
media data, and the fact that such data is easy to
understand and apply.
2. Product-Related segmentation – the information gained is
directly related to the particular product in question.
3. Psychographic segmentation – it can be used in highly-
specialized and extensively developed markets to
supplement the information gained from simpler analysis.
4. Geographic segmentation – it is used to identify primary,
secondary, and in some cases, tertiary markets.

6. Socioeconomic and Demographic
Variables
Age Education
Sex Income
Family Size Family Life Cycle
Social class Home ownership
Occupation Race/Ethnic Group
Second home ownership
Product-Related Variables
Recreation activity Brand Loyalty
Equipment Type Volume usage
Benefit expectations
Length of stay
Transportation mode
Experience preferences
Participation patterns
Psychographic Variables
Personality traits
Lifestyle
Attitudes, interests, opinions
Motivations
Geographic Variables
Region
Market Area
Urban, suburban, rural
City size
Population density

7. Product Life Cycle
• The concept of the product life cycle is useful to the markets as
an additional guide on what strategies should be used in
choosing, attracting, and serving target markets.
• It suggests that a product, service, or destination moves through
distinct stages.
INTRODUCTION GROWTH
MATURITY SATURATION
DECLINE
PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5

8. INTRODUCTION
• This phase
requires high
promotional
expenses &
visibility.
• Operation in this
period is
characterized by
high cost, low
sales volume,
and an
advertising
program which
aims to
encourage
primary demand.
GROWTH
• The product
or service is
accepted by
consumers.
• Market
acceptance
means that
both sales &
profits
increase
rapidly,
making the
market
attractive to
competitors.
MATURITY
• The mature
product is
well-
established
in the market
place.
• Sales
increase but
at a slower
rate.
SATURATION
• Sales volume
reaches its
peak.
• The product
or service
has
penetrated
the market
place to its
highest
degree.
DECLINE
• Advertising
expenses are
lower.
• There are few
competitors.

9. Strategic Marketing Process
• 3 elements:
1. Market Planning;
2. Target Market Selection; and
3. The Marketing Mix Selection.

10. 1. Marketing Planning Process
• 7 steps in the marketing planning process:
1. Collection of data – data can be collected in two ways:
secondary sources and from primary sources.
2. Analysis of data – data is usually organizes and interpreted. This
requires a great amount of skill and understanding.
3. Identification of alternative strategies for reaching the desired
goal – in most cases, there are several ways to arrive at a desired
goal.
4. Cost-benefit analysis - is a systematic approach to estimating the
strengths and weaknesses of alternatives used to determine
options which provide the best approach to achieving benefits
while preserving savings.
5. Selecting alternatives and plan formation – after the variables and
cost-benefit for each are identified, it is then decided which one
should be carried out by the other organizations. A plan of action,
including the responsibilities of the members of the organization, can
then be established.
6. Control procedures – these are methods which analyze the
progress made in achieving the goals of the project.
7. Plan information – putting into effect the plan of action and
supervising it.

11. 2. Target Markets
• 4 steps in identifying target markets:
1. Estimate the approval of an area’s attractions. This includes
the degree of interest of the tourist on the area and the
length of time the tourist will spend visiting it.
2. Estimate the distance in both travel time and travel cost.
3. Identify the potential target markets geographically by
locating the population clusters within the maximum
distance determined from the estimated travel time and
lure of the attraction.
4. Identify the actual and potential competition in the target
market.

12. Behavioral Characteristics of Target Market
• The behavioral characteristics of potential travelers is very
important in identifying target markets.
• Once the target markets have been defined, the segments must
be studied to know why these people travel to a specific location.
• Research can determine the behavioral target markets that
would be best suited for the particular product and match the
attractions with those who are most likely to enjoy them and let
the tourists know their existence through promotion.

13. Selecting a Marketing Strategy
• 6 steps in determining a marketing strategy:
• 1. Identifying the market segment;
• 2. Determining the preferences of the market segment;
• 3. Determining what influences the segment most;
• 4. Realizing the importance of two clients – the traveler & the travel intermediary;
• 5. Determining the marketing mix that will influence the segment identified;
• 6. Establishing a price policy that will maximize profits by balancing the number of
tourists with the capacity of the attraction.

14. 3. Marketing Mix
• The marketing mix is the combination of elements – product, price, promotion and
distribution that interact and complement each other to attain the objectives of
the marketing plan.
1. Product
a vacation consists of several parts or products such as transportation,
accommodation, food & beverage, sightseeing, entertainment, and souvenirs.
Criteria that should be met in deciding to provide a product or service.
First, there should be a heavy
demand for the product or
service from at least one
important segment with the
possibility of additional
business from other segments
of the market.
Second, new products &
services should suit the
general image of the
destination area and
complement existing ones.
Third, new products &
services should be offered in
accordance with available
supply od manpower, money
& natural resources.
Forth, any added product or
service should contribute to
the profit and/or growth of
the entire destination.

15. 2. Price
Price is the result of supply and demand.
When supply exceeds demand, price tends to decrease.
When demand exceeds supply, price tends to increase.
Price is influenced by competition.
If products & services of an agency are similar to those
of its competitors, its price will be similar to theirs.
Price is also related to the needs of the market segment
that is served. If a destination is perceived by the
members of the market segment as serving their needs
& wants, they will be willing to pay a higher price.

16. Get ¼ yellow pad

17. READY?

18. 1. This phase of the product life cycle in whichs advertising expenses are lower
and there are few competitors.
2. It is the combination of elements that interact and complement each other.
3. Activities that bring a product or service from the manufacturer to the end
user.
4. The process of grouping together of people with similar needs and wants for
the purpose of serving the market better.
5. A type of orientation that satisfies the needs of the community.
6. The phase of the product life cycle in which volume of sales reaches its peak.
7. A segment technique used in highly-specialized and extensively developed
markets.
8. A type of orientation that satisfies the needs of the buyer.
9. When supply exceeds demand, price tends to _________.
10. This phase of the product life cycle requires high promotional expenses &
visibility.