Tourism Marketing

12/18/2015 Tourism Marketing

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Tourism Marketing17,624-1

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Ramakrishna Kongalla, Assistant ProfessorFollow0 26 0 1

Published on May 22, 2013

Published in: Education, Business, Travel

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• CCDD – Create, Communicate,Deliver & feedback– Marketing means achieving thefirms goals by

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identifying theneeds and desi...

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Tourism Marketing

1. 1. Tourism Marketing©Ramakrishna Kongalla2. 2. • CCDD – Create, Communicate,Deliver & feedback– Marketing means achieving thefirmsgoals by identifying theneeds and desires of consumers,and then satisfying them betterthancompetitors.– Tourism marketing is theapplication of marketingconcepts in the travelandtourism industry.– Tourism marketing could becomplex due to the productbeing anamalgam of manydifferent industries such asaccommodation andtransportation.– The marketsalso vary widely,and determining the consumerspreferences could be difficult.• Definition– theorganized, combined effortsof the national tourist bodiesand/or the businesses in thetourismsector of aninternational, national or localarea to achieve growth intourism by maximizingthesatisfaction of tourists. In doingso, the tourist bodies andbusinesses expect to receiveprofits•Product– climate, history, culture,amenities,– The tourism product is the sumof all the factors inan area thatcan result in consumersatisfaction.– A tourist or his travel agentcombines thedifferentcomponents to get his owntourist product.Rtist@Tourism, Pondicherry University 2

3. 3. • Characteristics– intangible– Consumption happens atonce– consumer relies on pre-purchaseinformation tomake his decisions becausehe has no option to see– different producersareinvolved to create andmarket the product– Demand is seasonal– motivations ofconsumersvary widely– Intermediaries such astravel agents have a strongcontrol overproductdesign, distribution,promotion and pricing– High fixed costs are ofteninvolved, resultingin theuse of short-run marketing• Features– involves several steps– Market research seeks tounderstand theconsumer– product development aims to meet his needs– Analysis and selection

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• Characteristics– intangible– Consumption happens atonce– consumer relies on pre-purchase

information tomake his decision...

of target markets, alsoknown as segmentation, means studyingpotential customer groups andselecting onlycertain groups whose needs and wants can bebest met with a certain producersproduct– Marketing strategy seeks to reach the targetmarkets using promotion, advertising,pricingand distribution.• Communication– occur in three ways: external, internal and word-of-mouth– External marketing uses formal communicationchannels to promote the tourism productto thetraveler, boasting of its benefits and makingpromises– Internal marketing communicationoccurs whenthe tourism service provider makes contact withthe tourist and delivers thepromised benefits.– Word-of-mouth communication occursinformally when visitors oremployees discusstheir experiences of the tourism product toothers.Rtist@Tourism,Pondicherry University 3

4. 4. SWOT analysis of Tourism• Strengths– Vast geography withforests, deserts, mountains&beaches.– Varied culture.– Many historical monuments.– Knowledge of English bymajorityof local people.– Efficient transport facilities.• Weakness– Lack of adequate infrastructure.–Safety and security of foreigntourists.– Misconception about India byforeigners– Lack ofmaintenance ofmonuments, forts etc.– Many languages and dialects.• Opportunities– Increasedprivatization.– CWG 2010, Grandprix2011– Medical tourism.– Go-green initiative.– World-class hotels and airports• Threats– Terrorism.– Tensions with Pakistan.– Better promotion byothercountries.– Economic slowdown.4Rtist@Tourism, Pondicherry University

5. 5. PEST analysis of Tourism5Rtist@Tourism, Pondicherry University6. 6. Core concepts in Marketing• Needs– state of felt deprivationincluding physical, social,andindividual needs.• Wants– Needs become wants whenthey are directed to specificobjectsthat might satisfy theneed.• Demands– Wants + buying power• Needs and WantsFulfilledthrough a Marketing Offer :– Some combination ofproducts, services, information, orexperiences offered to amarket to satisfy a need orwant.Rtist@Tourism, Pondicherry University6

7. 7. • Target markets &segmentation– Differences inneeds, behavior, demographics orpsychographicsare used to identifysegments.– The segment served bythe firm is called thetargetmarket.– The market offering iscustomized to the needsof the target market.• Market– TheMarketplace isphysical, as when one goesfor shopping in a store.– Marketspace is digital,aswhen one goes shoppingon the internet.– Metamarket is described asa cluster ofcomplementaryproducts and services thatare closely related in theminds of consumers butarespread across a diverseset of industries.Rtist@Tourism, Pondicherry University 7

8. 8. Marketing Management Philosophies• The Production Concept– The production conceptholdsthat customers will favorproducts that are available andhighly affordable andthatmanagement should thereforefocus on improving productionand distribution efficiency.–The production concept isuseful when:• 1) Demand for a productexceeds the supply.• 2) Theproducts cost is toohigh and improved productivity isneeded to bring it down.– The risk withthis concept is infocusing too narrowly oncompany operations. Do notignore the desires ofthemarket.• The Product Concept– The product concept states thatconsumers will favorproductsthat offer the mostquality, performance, andfeatures, and that theorganization shouldthereforedevote its energy to makingcontinuous productimprovements.• 1. Somemanufacturersmistakenly believe that if they``build a better mousetrapconsumers will beat apath totheir door just for their product.• 2. The product concept canalso lead to “marketingmyopia”the failure to see the challengesbeing presented by otherproducts.Rtist@Tourism,Pondicherry University 8

9. 9. • The selling Concept– Many organizations follow theselling concept. The sellingconcept isthe idea thatconsumers will not buy enough ofthe organizations products unlessthe organizationundertakes alarge-scale selling and promotioneffort.• 1. This concept is typicallypracticed withunsought goods(those that buyers do not normallythink of buying).• 2. To be successful withthisconcept, the organization must begood at tracking down theinterested buyer.• 3. Industriesthat use thisconcept usually have overcapacity.Their aim is to sell what they makerather thanmake what will sell inthe market.• 4. There are not only high riskswith this approach butlowsatisfaction by customers.• The Marketing Concept– The marketing concept holdsthatachieving organizational goalsdepends on determining theneeds and wants of targetmarkets









SWOT analysis of Tourism• Strengths– Vast geography withforests, deserts, mountains &beaches.–

Varied culture.– Many histo...

and delivering thedesired satisfactions moreeffectively and efficiently thancompetitors do.– Themarketing and sellingconcepts are often confused. Theprimary differences are:• 1) The sellingconcept takes aninside-out perspective (focuses orexisting products and uses heavypromotionand selling efforts).• 2) The marketing concept takesan ``outside-in perspective(focuses oncustomerneeds, values, and satisfactions).– Many companies claim to adoptthe marketingconcept but reallydo not unless they commit tomarket-focused and customer-drivenphilosophies.Rtist@Tourism, Pondicherry University 9

10. 10. • The Societal Marketing Concept– The societal marketingconcept holds thattheorganization should determine theneeds, wants, and interests oftarget markets. It shouldthendeliver the desired satisfactionsmore effectively and efficientlythan competitors in a waythatmaintains or improves theconsumers and the societys well-being.• 1) The societalmarketingconcept is the newest of themarketing philosophies.• 2) It questions whether thepuremarketing concept isadequate given the wide varietyof societal problems and ills.• 3) Accordingto the societalmarketing concept, the puremarketing concept overlookspossible conflictsbetweenshort-run consumer wants andlong-run consumer welfare.• 4) The societal conceptcallsupon marketers tobalance threeconsiderations in settingtheir marketing policies:– a) Companyprofits.– b) Customer wants.– c) Societysinterests.• 5) It has became goodbusiness to considerandthink of societys interestswhen the organizationmakes marketing decisions.Rtist@Tourism,Pondicherry University 10

11. 11. Economic importance of Marketing• Generation of revenue– profit generation andmarketing is the onlysource to meet its expenses and earn profits.– survival and growth of thebusinessenterprise depends on the effectiveness andefficiency of marketing.• Customersatisfaction– Marketing helps to identify and satisfy theneeds and wants of consumers.–Customer satisfaction has a important role inmarketing without which a business can’tbesuccessful.• Employment Generation– marketing offers challenging and rewardingjobs to alarge number of persons. It alsogenerates employment in production byenlarging the scale ofdistribution andproduction.• Higher standards of living– Marketing is helpful in improvingthestandard of living of people by offering a widevariety of goods and services with freedomofchoice. It has modernized the living standardsof people through the supply of qualityproductsat reasonable price.• Large scale production– marketing makes mass selling possible andtherebyfacilitates large scale production.Economies of large scale production helpto reduce the cost ofproduction per unit.• Economic Development– Marketing gives a boost totransportation,banking, insurance, warehousing and other economics activities. Itmakes the economy strongand stable bybalancing production with consumption. Infact, marketing is the kingpin thatkeepsthe economy moving ahead.• Foreign exchange earner– marketing helps in exploringforeignmarkets and in exporting goods andservices. It is through marketing that acountry earnsvaluable foreign exchange.• Creation of utilities– Marketing includes all activities involvedinthe creation of place utility, time utility andpossession utility. Place utility is createdbymaking goods available at the placeswhere they are needed. Time utility iscreated by makinggoods available at theright time. Possession utility is createdwhen goods are transferred to thosewhoneed them.Rtist@Tourism, Pondicherry University 11

12. 12. Tourism marketing• Service Characteristics– Curiosity and desire to travel– Tourismmarketing createsdesire in tourists– Multifaceted activitiesproduces tourism product– Varioussub sectors, that arein themselves completeindustries– Tourism promotion in variousforms indifferent socioeconomic structures– Marketing strategy is must• Tourism Demand– Highlyunstable• Seasonal• Economical• political– Facilitators– Motivators– resistance factors•characteristics– Price elasticity –responsiveness of demandto change in price– Income elasticity– increasein individual’s income willnot necessarily mean anincrease in travel demand.Mayresult in an increase inquality product ordestination.Rtist@Tourism, Pondicherry University 12

13. 13. • Tourism Product– Intangible, irreversible, perishable, lack of ownership,– Heterogeneity,Non-material, consumed where produced,– multiplicity of producers, highly unstabledemand,dominant role of intermediaries, motivations.• Tourism DemandDeterminants13Rtist@Tourism, Pondicherry University

14. 14. Tourism Marketing mix• 8 P’s in Tourism– Product– Place– Price– Promotion– People–








Process– Productivity & Quality– Physical Evidence• 1.Product– Accommodation– Attraction–Transportation– Recreation– Shopping– Restaurant• 2. Pricing– Cost– Demand– Competition–Duration– Mode of transport– Peak/Non-peak season– Destination14Rtist@Tourism,Pondicherry University

15. 15. • 3. Promotion– Different states highlighting abouttheir features.E.g.– 1. Kerala- ‘God’sowncountry’Highlighting aboutbackwaters, ayurveda, elephants, houseboats, beaches etc.–Incredible India’ and ‘Atithi DevoBhava’ are taglines of IndianTourism– ‘Our guest is blessed’and ‘Ourvisitor is god’– Aamir Khan as brand ambassadorfor ‘Atithi Devo Bhava’ forIndiantourism.– Use of websites to sell tourism.– Brochures, pamphlets, ads innewspapers.–E.g. Raj, Kesari and Thomas Cook.• 4. Place– The ‘destination’ is the important aspectinplace.– Travel agents, tour operators etc. aredistribution points.– Proper infrastructure,transport andcommunication.• 5. People– Role of people is very important in anyservice.– Intourism, people involved are travelagents, guides, airline crewmembers, receptionist in hoteletc.– Contacts with people may be high, medium orlow.• Examples:1. In case of airlines:- Thepassenger will have high or mediumcontact with the air-hostess, ground-staff where as low orno contact withthe pilot.2. In case of railways:- The passenger will have high or mediumcontactwith travel agents or ticketissuer but low or no contact with theloco pilot.15Rtist@Tourism,Pondicherry University

16. 16. – Travel agents shouldprovide best deals tocustomers afterunderstandingtheirrequirements.– Guides should have in-depth knowledge aboutthe locations,monuments,forts, history etc.– Employees should deliverwhat the companypromises to thecustomer.– Physical appearance ofguides also matters a lot.• 6. Process16Rtist@Tourism,Pondicherry University

17. 17. • 7. Physical Evidence • 8. Productivity &Quality– It involves positioningthe process, theoveralldestination, theintangibles etc.– It also involvespositioning of tourismas Nationalpriority.17Rtist@Tourism, Pondicherry University

18. 18. Tourism Demand Modeling and Forecasting• Tourism demand modelingand forecasting areveryimportant for tourism-relatedbusiness decision making– Stock effect,– market responseeffectAnalysis• Tourism demand can bemeasured in terms of• number of tourist visits fromanorigin country to adestination country• tourist expenditure by visitorsfrom the origin country inthedestination country• tourist nights spent by visitorsin the destination country• the explanatoryvariables fortourism demand includeorigin countryincome, destination countrytourism prices,substitutedestination country tourismprices, tastes, etc. Empiricalstudies usually use livingcostsfor tourists in the destinationas the tourism price. Variousdemand models can be usedtoestimate and forecasttourism demand.• modeling tourism demand ina vector autoregressive(VAR)framework, to forecast thenumber of holidays spent bynon residents18Rtist@Tourism,Pondicherry University

19. 19. Methods that rely onqualitative assessment– Unaided judgment– Prediction market– Delphitechnique– Game theory– Judgmental bootstrapping– Simulated interaction– Intentionsandexpectations surveys– Conjoint analysisMethods that rely onquantitative data– DiscreteEvent Simulation– Extrapolation– Quantitative analogies– Rule-based forecasting– Neuralnetworks– Data mining– Causal models– Segmentation19Rtist@Tourism, PondicherryUniversity

20. 20. Managing capacity and Demand• Capacity Constraints– Time, labor, equipmentandfacilities– Optimal versus maximaluse of capacity• Demand PatternsCharting demandpatternsPredictable cyclesRandom demandfluctuationsDemand patterns bymarketsegment20Rtist@Tourism, Pondicherry University

21. 21. Market segmentation– segmentation is the processof:– (1) taking existingand/orpotentialcustomers/visitors (market)and categorizing them intogroups with similarpreferencesreferred to as "marketsegments;"– (2) selecting the mostpromising segmentsas"target markets;" and– (3) designing "marketingmixes," or strategies(combination of the 4Ps),which satisfy the special needs,desires and behavior of thetarget markets.no unique or bestway tosegment markets, but waysin which customers can begrouped are:– (1) location ofresidence---instate, out-of-state, local;– (2) demographics---age, income, familystatus,










PEST analysis of Tourism5Rtist@Tourism, Pondicherry University

Core concepts in Marketing• Needs– state of felt deprivationincluding physical, social, andindividual

education;– (3) equipment ownership/use---RVs, sailboats, canoes, tents, snowmobiles;– (4)important productattributes---price, quality, quantity; and– (5) lifestyle attributes---activities,interests, opinions.21Rtist@Tourism, Pondicherry University

22. 22. Target markets• After segments have been identified, the businessor community must selectthe "target markets,"those segments which offer them the greatestopportunity. Whendetermining targetmarkets, consideration should be given to:– (1) existing and future salespotential of each segment;– (2) the amount and strength of competition for each segment;– (3)the ability to offer a marketing mix which will be successfulin attracting each segment;– (4) thecost of servicing each segment; and– (5) each segments contribution to accomplishingoverallbusiness/community objectives.• It is often wiser to target smaller segments thatare presentlynot being served, or servedinadequately, than to go after larger segments for whichthere is agreat deal of competition. 22Rtist@Tourism, Pondicherry University

23. 23. 23Rtist@Tourism, Pondicherry University24. 24. Positioning• In marketing, positioning has come tomean the process by which marketerstryto create an image or identity in theminds of their target market for itsproduct, brand, ororganization.• Re-positioning involves changing theidentity of a product, relative to theidentityof competing products, in thecollective minds of the target market.• De-positioning involvesattempting tochange the identity of competingproducts, relative to the identity of yourownproduct, in the collective minds ofthe target market.• The original work on Positioningwasconsumer marketing oriented, and wasnot as much focused on the questionrelative tocompetitive products asmuch as it was focused on cuttingthrough the ambient "noise"andestablishing a moment of real contactwith the intended recipient24Rtist@Tourism,Pondicherry University

25. 25. • primary elements of positioning are:– Pricing. Is your product a luxuryitem, somewhere inthe middle, orcheap, cheap, cheap.– Quality. Total quality is a much usedand abused phrase.But is yourproduct well produced? Whatcontrols are in place to assureconsistency? Do youback your qualityclaim with customer-friendlyguarantees, warranties, and returnpolicies?–Service. Do you offer the added valueof customer service and support? Isyour productcustomized andpersonalized?– Distribution. How do customersobtain your product? Thechannel ordistribution is part of positioning.– Packaging. Packaging makes a strongstatement.Make sure its deliveringthe message you intend.• Positioning concepts– Functional positions•Solve problems• Provide benefits to customers• Get favorable perception by investors (stockprofile) andlenders– Symbolic positions• Self-image enhancement• Ego identification•Belongingness and social meaningfulness• Affective fulfillment– Experiential positions•Provide sensory stimulation• Provide cognitive stimulation• Product positioning process–Defining the market in which the product or brand willcompete (who the relevant buyers are)–Identifying the attributes (also called dimensions) that definethe product space– Collectinginformation from a sample of customers about theirperceptions of each product on the relevantattributes– Determine each products share of mind– Determine each products current location inthe productspace– Determine the target markets preferred combination ofattributes (referred toas an ideal vector)– Examine the fit between:• The position of your product• The position of theideal vector– Position.25Rtist@Tourism, Pondicherry University

26. 26. Marketing Environment26Rtist@Tourism, Pondicherry University27. 27. Consumer buying behavior• "The study of individuals, groups, ororganizations and theprocesses they useto select, secure, use, and dispose ofproducts, services, experiences, orideasto satisfy needs and the impacts thatthese processes have on the consumerand society."–how consumers think, feel, reason, and selectbetween different alternatives(e.g., brands,products, and retailers);– how the consumer is influenced by his or herenvironment(e.g.,culture, family, signs, media);– The behavior of consumers while shopping ormaking othermarketing decisions;– Limitations in consumer knowledge orinformation processing abilitiesinfluencedecisions and marketing outcome;– How consumer motivation and decisionstrategiesdiffer between products that differin their level of importance or interest thatthey entail for theconsumer; and– How marketers can adapt and improve theirmarketing campaigns andmarketingstrategies to more effectively reach theconsumer.• Consumer behavior involves









needs.• Wants– Needs...

services andideas as well as tangible products.• main applications of consumer behavior–marketing strategy—i.e., for making bettermarketing campaigns– public policy– Socialmarketing involves getting ideasacross to consumers rather than sellingsomething.– studyingconsumer behavior should make usbetter consumers• three ways of analysing consumerbuyingdecisions– Economic models - These models are largelyquantitative and are based ontheassumptions of rationality and near perfectknowledge. The consumer is seen tomaximizetheir utility. See consumer theory.Game theory can also be used in somecircumstances.–Psychological models - These modelsconcentrate on psychological and cognitiveprocesses suchas motivation and needrecognition. They are qualitative rather thanquantitative and build onsociological factorslike cultural influences and family influences.– Consumer behaviour models- These arepractical models used by marketers. Theytypically blend both economicandpsychological models.27Rtist@Tourism, Pondicherry University

28. 28. General model for Consumer Behavior• A general model of thebuyer decisionprocessconsists of the followingsteps:– Problem recognition;– Information Search– Evaluationof Alternative– Purchase decision– Purchase– Post-purchasebehavior/buyers remorse(cognitivedissonance)• AIUAPR MODEL– Awareness– Interest– Understanding– Attitude– Purchase–Repeat purchaseRtist@Tourism, Pondicherry University 28

29. 29. Marketing Competitive Differentiation• Treacy & Wiersema say that there areprimarilythree ways in which a companycan build competitive differentiation• OperationalExcellence/Cost Leadership– Provide middle-of-the-marketproducts at the best price andtheleast hassle.– Example: Wal-Mart.• Product Leadership– Provide the best product,period.Continue to innovate year after year.– Example: Intel, Nike.• Customer Intimacy–Provide unique solutions to customersby virtue of intimate knowledge oftheir needs.– Example:IBM.• every company that is a leader in its marketchooses to differentiate itself on one andonlyone of these three "value disciplines".– For example, if a company tries to be the costleaderas well as the product leader in its market -over time, it will end up as neither, Wal-Martdoesntsell Armanis, Nike doesnt sell cheapshoes, and IBM sells neither the cheapest nor thebestproducts.• How Durable Is Your CompetitiveAdvantage?• If your company chooses to be aproductleader, continue to innovate year after year– Intel, for example, has sustainedproductleadership over a very long period by out-innovating competitors. Dell, likewise, hasheldcost leadership for the better part of the last twodecades.• Differentiate or Die?– If yourcompanys products are not differentiatedin ways that really matter to your customers,yourproducts may not necessarily die - but theycertainly will be commoditized over time andatbest will end up as also-ran products.– Identify areas where your products can havestrong,sustainable competitive differentiationand execute to make that the reality. This is oneof thebiggest values you can add to yourcompany.Rtist@Tourism, Pondicherry University 29

30. 30. Competitive Marketing Strategy• Marketing strategy is a process that can allowanorganization to concentrate its limited resources onthe greatest opportunities to increase salesandachieve a sustainable competitive advantage• marketing strategies are developed as multi-yearplans, with a tactical plan detailing specific actions tobe accomplished in the current year•Marketing strategies are dynamic and interactive. Theyare partially planned and partiallyunplanned• involves careful scanning of the internal and externalenvironments, Internalenvironmental factors includethe marketing mix, plus performance analysis andstrategicconstraints• External environmental factors include customeranalysis, competitor analysis,targetmarket analysis, as well as evaluation of any elementsof the technological, economic,cultural orpolitical/legal environment likely to impact success• Once a thorough environmentalscan iscomplete, a strategic plan can be constructed toidentify business alternatives, establishchallenginggoals, determine the optimal marketing mix to attainthese goals, and detailimplementation.• A final step in developing a marketing strategy is tocreate a plan to monitorprogress• Typically there are four types ofmarket dominance strategies:– Leader– Challenger–Follower– Nicher• generic strategy framework (porter1984)– Product differentiation (broad)–Cost leadership (broad)– Market segmentation (narrow)• Innovation strategies– Pioneers– Closefollowers– Late followers• Growth strategies– Horizontal integration– Vertical integration–Diversification– IntensificationRtist@Tourism, Pondicherry University 30






• Target markets &segmentation– Differences inneeds, behavior, demographics or psychographicsare

used to identifysegments....

31. 31. Rtist@Tourism, Pondicherry University 31New product Development32. 32. Product life Cycle• Discovery– unspoiled" destinations– Explorers• Launch– incomingtourists increases– host community responds• Stagnation– host community responds– quality oftourist servicesfalls– demand levels off– environmentaldegradation– reached maturity‘•Decline– Falling profits– foreign-owned businesseswithdrawing– community is left to "pickupthe pieces"Rtist@Tourism, Pondicherry University 32

33. 33. Customer Satisfaction• Customer satisfaction, aterm frequently usedin marketing, is ameasureof how products andservices supplied by acompany meet or surpasscustomerexpectation.• Customer satisfaction isdefined as "the number ofcustomers, or percentageof totalcustomers, whosereported experience with afirm, its products, or itsservices (ratings)exceedsspecified satisfactiongoals."• Customer Satisfaction in 7Steps– 1. ENCOURAGEFACE-TO-FACEDEALINGS– 2. RESPOND TO MESSAGESPROMPTLY & KEEPYOURCLIENTS INFORMED– 3. BE FRIENDLY ANDAPPROACHABLE– 4. HAVE ACLEARLY-DEFINEDCUSTOMER SERVICE POLICY– 5. ATTENTION TODETAIL(ALSO KNOWN AS ‘THE LITTLENICETIES’)– 6. ANTICIPATE YOURCLIENT’SNEEDS & GO OUT OF YOURWAY TO HELP THEM OUT– 7. HONOUR YOURPROMISESRtist@Tourism, Pondicherry University 33

34. 34. Rtist@Tourism, Pondicherry University 3435. 35. Rtist@Tourism, Pondicherry University 35Customer Retention36. 36. Strategies in Internal & External MarketingInternal factor , these involve(5Ms)–Management– Manpower– machine– material and– money.External factors , these include–Macro factor• micro factors.• Macro factors are the onethat affect the organizationindirectly,these are (pestel)– Political– enviroment– socia-cultural– technological and– Ecological–leagal• while micro factors are thosewhich affect the organizationdirectly it involve–customers– competitors– suppliers and– publicRtist@Tourism, Pondicherry University 36

37. 37. Interactive and Relationship Marketing• Interactive Marketing refers to theevolving trendinmarketing whereby marketinghas moved from a transaction-based effort to a conversation.• “theability to address an individualand the ability to gather andremember the response ofthatindividual” leading to “the ability toaddress the individual once more ina way that takes intoaccount his orher unique response”(Deighton1996).• Interactive marketing is notsynonymouswith online marketing,although interactive marketingprocesses are facilitated byinternettechnology• Relationship marketing was firstdefined as a form of marketingdevelopedfrom direct responsemarketing campaigns whichemphasizes customer retention andsatisfaction,rather than a dominantfocus on sales transactions.• it recognizes the long term value ofcustomerrelationships and extendscommunication beyond intrusiveadvertising and salespromotionalmessages• Relationship marketing extends toinclude inbound marketingefforts, (acombination of searchoptimization and strategiccontent), PR, social media andapplicationdevelopment.• Relationship marketing is a broadlyrecognized, widely-implementedstrategy formanaging and nurturinga company’s interactions withclients and salesprospects.Rtist@Tourism, Pondicherry University 37

38. 38. Rtist@Tourism, Pondicherry University 3839. 39. Product & Product Strategies• The product is defined asa "thing produced bylabor or effort"or the"result of an act or aprocess“• Tangible and Intangible• Tourism Product – Multifaceted–Product design– Product quality– Product features– Product brandingA PRODUCTMARKETINGSTRATEGY– Decide on newrevenue growth and profits– Decide onnewproduct development.– Decide on price.– Decide on salesforce, distribution, service.– Decideoncustomer psychologicalfactors, not features andbenefits.– Decide onproductpromotion.Rtist@Tourism, Pondicherry University 39

40. 40. • Product Line– A company/organizationcreates a group ofproducts, which has incommonmost of theirmain characteristics.– A good way for a companyto try to expand itsbusiness is byadding toits existing product line.This is because people aremore likely to purchaseproductsfrom brandswith which they arealready familiar• Product Mix– Product mix-anorganizationcreates manyproducts and sells them.– the product mix iseverythingorganizationsells.Rtist@Tourism, Pondicherry University 40













Marketing Management Philosophies• The Production Concept– The production concept holdsthat

customers will favorproducts t...

41. 41. Branding & Rebranding• increase a products perceived value• increase brand franchise andbrandequity• started at Procter & Gamble• A good brand name should:– be protected (or at leastprotectable)under Trademark law.– be easy to pronounce.– be easy to remember.– be easy torecognize.– be easy to know– be easy to translate into all languages inthe markets where thebrand will beused.– attract attention.– suggest product benefits or suggest usage(note thetradeoff with strong trademarkprotection.)– suggest the company or product image– distinguishthe products positioningrelative to the competition.– be attractive.– stand out among a group ofother brands.• Functions of brand– (For consumers) Identification of source ofproduct,–Assignment of responsibility to productmaker,– Risk reducer,– Search cost reducer,– Symbolicdevice,– Signal of quality,– Speak personality,– Deliver its value qualitativelyandquantitatively,– Live up to consumer expecatition.– it speaks itself looks are moreimportant• (For Manufacturers)– Means of identification to simplifyhandling and tracing,–Means of legally protecting uniquefeatures,– Signal of quality level to satisfiedcustomers,–Means of endowing products with uniqueassociations,– Source of competitive advantage,–Source of financial returnsRtist@Tourism, Pondicherry University 41

42. 42. Packing• defined as the wrapping materialaround a consumer item that servestocontain,identify, describe, protect, display, promote, and otherwise makethe product marketable andkeep itclean.• Packaging is the outer wrapping of aproduct.• It is the intended purpose ofthepackaging to make a product readilysellable as well as to protect itagainst damage andprevent it fromdeterioration while storing.• Furthermore the packaging is oftenthe most relevantelement of atrademark and conduces toadvertising or communication• FunctionalRequirements– 1. Protection andpreservation– 2. Containment– 3. Communication• Types ofpackaging– Transport packing– Consumer PackingRtist@Tourism, Pondicherry University 42

43. 43. PricingRtist@Tourism, Pondicherry University 4344. 44. Pricing Strategies• Premium Pricing– used where a substantial competitiveadvantageexists.– Such high prices are charge for luxuries suchas Cunard Cruises, Savoy Hotel rooms,andConcorde flights• Penetration Pricing.– set artificially low in order to gain marketshare.–Once this is achieved, the price is increased• Economy Pricing– no frills low price– cost ofmarketing and manufacture are keptat a minimum.– Supermarkets often have economybrandsfor soups etc• Price Skimming– Charge a high price because you have asubstantialcompetitive advantage– However, the advantage is not sustainable– high price tends to attractnew competitorsinto the market, and the price inevitably fallsdue to increasedsupplyApproaches• Psychological Pricing– to respond on an emotional, rather thanrationalbasis• Product Line Pricing– Where there is a range of product orservices the pricing reflect thebenefits ofparts of the range• Optional Product Pricing– Optional extras increase the overallpriceof the product or service• Captive Product Pricing– companies will charge a premiumpricewhere the consumer is captured• Product Bundle Pricing– combine several products in thesamepackage. This also serves to move oldstock• Promotional Pricing– BOGOF (Buy One GetOne Free)• Geographical Pricing• Value Pricing– external factors such as recession orincreasedcompetitionRtist@Tourism, Pondicherry University 44

45. 45. Distribution Channels• Physical distribution (or place) isone of the four elements ofthemarketing mix– defined as a chain ofintermediaries, each passing theproduct down the chain tothe nextorganization, before it finally reachesthe consumer or end-user.• Channels– Distributor,who sells to retailers,– Retailer (alsocalled dealer or reseller), who sells toend customers–Advertisements typically used forconsumption goods• Channel decisions– Channel strategy–Gravity & Gravity– Push and Pull strategy– Product (or service)– Cost– Consumer location•Type of marketing channel– Intensive distribution - Where themajority of resellers stocktheproduct– Selective distribution - This is thenormal pattern, suitable resellersstock theproduct.– Exclusive distribution - Only speciallyselected resellers or authorizeddealers, areallowed to sell theproduct.• Channel motivation• Monitoring and managingchannelsRtist@Tourism, Pondicherry University 45

46. 46. Marketing Of Tourism ServicesRtist@Tourism, Pondicherry University 4647. 47. Airlines• the first marketing model, calledPESTE - Political, Economic,Social,Technological andEnvironmental• Airline Business and MarketingStrategies - strategic










• The selling Concept– Many organizations follow theselling concept. The sellingconcept is the idea

families(from cost leadership todifferentiation)• Product Analysis in AirlineMarketing - Theproduct of anairline is split up in several parts:fleet and schedules, customerservice, controllingproductquality and even the air freightproduct• No life cycle concept, daily basis• Pricing andRevenueManagement – triangle ofmarketing, sales, and pricing &revenue management•distributing the product - GlobalDistribution Systems (such asGalileo, Sabre and Amadeus•Brands Management in AirlineMarketing• Relationship marketing -maintaining andstrengtheningrelationships with existingcustomers, not just aboutfrequent flyer programs, butalsoabout promises inadvertisements and about thewarm welcome that the existingheavy user,maincustomer, wants.• Airline Selling, Advertising andPromotional Policies - providesandanalyses selling and salesmanagement, good airlineadvertising and mediarelationsRtist@Tourism, Pondicherry University 47

48. 48. Hotels• Budget• Social Media• The true cost• The hotel sales office• How to use socialmedia for meetings• GDS hotel bookings• Priceline• Hotel panel• Successful hotel sales plan• Arevenue driven checklist for function spacemanagementRtist@Tourism, Pondicherry University48

49. 49. Travel Agency Marketing• Travel agencies dont needlarge marketing budgets -justdetermination, a creativemind and willingess to workoutside normal hours– Hold an openevening– Make your agency look inviting– Be community-spirited– Use the local press– Formpartnerships– Motivate your staff• Tips to Travel Agents– "mine" data base– Increase yoursales training andprospecting skills– Be in the know– Be a member of a travelconsortium– havea working marketing plan– today is the first day of yourbusiness– Identify pipers who havetheability to bring in new business– customized client promotions– Be creative– Use PR as atool to get thepositive word out about travelRtist@Tourism, Pondicherry University 49

50. 50. Marketing Skills for TourismCreativity• make something out of nothing• Create thebranding, create thepositioning, find the niche• develop the words, the visuals, theimages thatmake a brand• the brochure, the website, thepositioning statement• Keeping fresh and current sothat Ican think of new ways ofapproaching• industry partnerships and a newsponsorshipprogram• Innovative Product development• 5 Stage process– Saturation– Preparation–Incubation– Illumination– verificationCommunication– Learn 3 languages – mothertongue,national & international– Polite speech, Good body language– Good personality– Courtesycalls– Letters– Fax– Email messages– Must allow visitor to speak– If language is barrier thenshowstandard pictures or symbols– Neat maintenance of traveldocuments– Advertisement intarget customer’slanguageRtist@Tourism, Pondicherry University 50

51. 51. • Self Motivation– Self motivated to work anddeliver concrete results– Motivation andmorale areclosely related– If morale is highmotivation will be high togive sterlingperformance– Motivation factors are –backgrounds, education, family status,economiccondition– Person to persontreatment would developthe organization• Team building–Socio cultural norms, if the teamchanges this norms and valueseffect is immediate andeverlasting– Tasks are completed faster thanan individual does - Rome wasnot built in a day,Rome was notbuilt by on neither– Team work leads to synergy– Team work givesstatusrecognition, reverence to all– Single person cannot deliverresults on his own– Groupsbecome teams– Common working approach,performance goals– Hard work, discipline,dedicationto purpose , willingness to adoptnew technologies• 1. Thank a colleague• 2.Compliment a colleague• 3. Invite a colleagueRtist@Tourism, Pondicherry University 51

52. 52. Personality development• An individuals personality is anaggregate conglomerationofdecisions weve madethroughout our lives (Bradshaw)• There are inherent natural,genetic, andenvironmentalfactors that contribute to thedevelopment of our personality• "personality alsocolors ourvalues, beliefs, and expectations... Hereditary factors thatcontribute topersonalitydevelopment do so as a result ofinteractions with the particularsocial environment inwhichpeople live.“• Freud believed that two basicdrives—sex and aggression—motivate all ourthoughts andbehaviours• Freud conceived the mind asonly having a fixed amount ofpsychicenergy . The outcomeof the interaction between theid, ego and thesuperego, determinesouradult personality.• The id allows us to get ourbasic needs met• The egos job is to meettheneeds of the id• superego inhibits thebiological instincts of the id(resulting in a high level








thatconsumers will not...

• The Societal Marketing Concept– The societal marketingconcept holds that theorganization should

ofguilt)Rtist@Tourism, Pondicherry University 5253. 53. Thank You…Rtist@Tourism, Pondicherry University 53

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• Tourism Product– Intangible, irreversible, perishable, lack of ownership,– Heterogeneity, Non-

material, consumed where p...



Tourism Marketing mix• 8 P’s in Tourism– Product– Place– Price– Promotion– People– Process–



Productivity & Quality– Physic...

• 3. Promotion– Different states highlighting abouttheir features.E.g.– 1. Kerala- ‘God’s



owncountry’Highlighting aboutbac...

– Travel agents shouldprovide best deals tocustomers afterunderstanding theirrequirements.– Guides



– Travel agents shouldprovide best deals tocustomers afterunderstanding theirrequirements.– Guides

should have in-depth kn...



• 7. Physical Evidence • 8. Productivity &Quality– It involves positioningthe process, the

overalldestination, theintangib...



Tourism Demand Modeling and Forecasting• Tourism demand modelingand forecasting are

veryimportant for tourism-relatedbusin...



Methods that rely onqualitative assessment– Unaided judgment– Prediction market– Delphi



technique– Game theory– Judgmental...

Managing capacity and Demand• Capacity Constraints– Time, labor, equipmentand facilities–



Optimal versus maximaluse of cap...



Market segmentation– segmentation is the processof:– (1) taking existing

and/orpotentialcustomers/visitors (market)and cat...



Target markets• After segments have been identified, the businessor community must select the

"target markets,"those segme...



23Rtist@Tourism, Pondicherry University



Positioning• In marketing, positioning has come tomean the process by which marketerstry to create

an image or identity in...



• primary elements of positioning are:– Pricing. Is your product a luxuryitem, somewhere in the

middle, orcheap, cheap, ch...





Marketing Environment26Rtist@Tourism, Pondicherry University

Consumer buying behavior• "The study of individuals, groups, ororganizations and the processes they



useto select, secure, ...



General model for Consumer Behavior• A general model of thebuyer decision processconsists of the

followingsteps:– Problem ...



Marketing Competitive Differentiation• Treacy & Wiersema say that there areprimarily three ways in

which a companycan buil...



Competitive Marketing Strategy• Marketing strategy is a process that can allow anorganization to



concentrate its limited r...



Rtist@Tourism, Pondicherry University 31New product Development

Product life Cycle• Discovery– unspoiled" destinations– Explorers• Launch– incoming tourists



increases– host community res...



Customer Satisfaction• Customer satisfaction, aterm frequently usedin marketing, is a measureof how

products andservices s...



Rtist@Tourism, Pondicherry University 34



Rtist@Tourism, Pondicherry University 35Customer Retention

Strategies in Internal & External MarketingInternal factor , these involve(5Ms)– Management–



Manpower– machine– material a...



Interactive and Relationship Marketing• Interactive Marketing refers to theevolving trendin

marketing whereby marketinghas...



Rtist@Tourism, Pondicherry University 38



Product & Product Strategies• The product is defined asa "thing produced bylabor or effort" or

the"result of an act or apr...



• Product Line– A company/organizationcreates a group ofproducts, which has incommon most of

theirmain characteristics.– A...



Branding & Rebranding• increase a products perceived value• increase brand franchise and

brandequity• started at Procter &...



Packing• defined as the wrapping materialaround a consumer item that servestocontain, identify,



describe, protect, display...



PricingRtist@Tourism, Pondicherry University 43

Pricing Strategies• Premium Pricing– used where a substantial competitiveadvantage exists.– Such



high prices are charge fo...



Distribution Channels• Physical distribution (or place) isone of the four elements ofthe marketing

mix– defined as a chain...



Marketing Of Tourism ServicesRtist@Tourism, Pondicherry University 46



Airlines• the first marketing model, calledPESTE - Political, Economic,Social, Technological

andEnvironmental• Airline Bus...



Hotels• Budget• Social Media• The true cost• The hotel sales office• How to use social media for

meetings• GDS hotel booki...



Travel Agency Marketing• Travel agencies dont needlarge marketing budgets - justdetermination, a

creativemind and willinge...



Marketing Skills for TourismCreativity• make something out of nothing• Create the branding, create



thepositioning, find th...

• Self Motivation– Self motivated to work anddeliver concrete results– Motivation and morale



areclosely related– If morale...



Personality development• An individuals personality is anaggregate conglomeration ofdecisions weve

madethroughout our live...



Thank You…Rtist@Tourism, Pondicherry University 53



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