Definition
Marketing means the whole business viewed from the point of view of the customer is the definition of marketing provided by Peter Drucker (Bennett and Strydom). Therefore, marketing may be defined as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual needs and organizational goals” (Bennett and Strydom 2).
Marketing Mix
A tourism marketing mix is identified as a set of tools that may be used to meet predefined objectives or target markets (Fyall and Garrod). Though there remains a dispute as to what elements constitute the mix of marketing, universally four are accepted viz. price, promotion, place, and product.
- Product – In the case of tourism, the product is the ways in which the tourism product is changed according to the changing needs of the market (Fyall and Garrod). In the case of tourism, the product may encompass multiple factors like tourism destination, destination’s attractions, facilities, environment, etc. For instance, the Great Barrier Reef in Australia is attracted through its abundant natural beauty and water adventures, while Las Vegas has the charm of its casinos.
- Price – It is the amount that is charged for usage or consumption of the product. Due to the presence of a high degree of product intangibility, pricing becomes a very important part of the marketing mix for tourism. Tourism pricing should reflect chosen positioning, image, and branding of the product. Further, they can be tactical. For instance, airline tickets prices are manipulated at the last minute/late booking demand at higher prices. Again in cases of leisure travel, recreation, and vacation, there is a high price elasticity of demand which makes prices almost fixed.
- Place – this is represented the outlet that is to be provided for the availability of the tourism product for the customers. As this is a service industry with intangible products, the interface of customer interaction is of paramount importance. For instance, in the case of airline ticketing, ticketless travel helps fliers save the time of going to an outlet and collecting tickets.
- Promotion – this means the measures taken to make those in the market aware of the product and make induce favorable customer intention to buy it. In the case of travel and tourism, the aim is to make the customers aware of the product and provide a lot of information. For instance, Qatar Airlines stresses it being a five-star airline, indicating its superior quality of service.
Market Segmentation
In the tourism market segmentation is done on the basis of the reason for travel, for instance, if the customer is traveling on business or leisure. Destination segmentation implies traveling to visit a particular destination. Here the destination is based on geographic segregation. Then this can again be differentiated as to what is the demographic pattern of the people traveling for a particular destination or purpose. Whether more men or women travel to sports destinations or what is the age group these customers belong to. Another interesting segmentation is based on the priority of the customers be it recreation, family, safety, facilities, etc. Segmentation on the basis of buyer behavior is prevalent in the travel and tourism industry. For instance, the case of frequent fliers in airlines. Other prevalent usages are simple demographic, life-cycle, and geographic segmentation.
Target Markets
Once the business has identified its market segments; it has to target its marketing efforts to these segments. This is called target marketing. Targeting will depend on similarities of customer need, the segment size and growth potential, and the target’s accessibility. For instance, for travel and tourism organizations, Gateway magazine is an effective tool to advertise to the target market in South Africa.
Marketing Objectives
Here the report describes the marketing objectives and briefly describes how they link with the principles of marketing.
- Raise awareness – The aim is to spread information about the product in order to increase awareness. This will reduce the perception of risk associated with the intangible product.
- Increase market share – This will help the companies to increase their target customers letting them increase their customer base. si is essential for any business. Increasing profit will help companies to realize the benefits of the profit.
- Increase profit – by increasing their promotion and product offering, the company can increase profit.
- Challenge competitors – Segmentation and innovative product offering can pose challenges to the customers.
- Product development – By providing new features and added services to the products, product development is possible. For instance, the benefits business class travel may provide to frequent travelers.
- Introduce new products – Continuous product improvement is required as the products are intangible and copying of products by other service providers is inevitable.
- Target new customers – New target segments have to be identified to sell older products.
- Retain existing customers – retaining old customers is important as they provide sure business. For instance frequent travel programs in airlines.
- Branding – Branding of products increases the appeal of the product and gives personality. For instance, a Virgin airline is branded by the personality of the enigmatic owner Richard Branson.
Organizational Objectives
- Raise awareness – increased promotional activities through more advertisement or traveler schemes are effective.
- Increase market share – Expansion of business into different segments. An airline may expand its number of destinations.
- Increase profit – By reducing prices and increasing customer base. For instance Northwest Airlines is in the low-cost airline segment.
- Challenge competitors – Innovative marketing through the usage of new technology. Airline reservations through the internet and ticketless travel.
- Product development – By introducing an innovative product. Like the introduction of premium economy class for business travelers during recessions.
- Introduce new products – Introduce new travel destinations. Hub to hub airline destination.
- Target new customers – Target students at special promotional prices.
- Retain existing customers – Frequent flier programs or customer loyalty programs.
- Branding – brand around the product you offer. Like Casinos in Las Vegas.
Bibliography
Bennett, J. Alf and Johan Wilhelm Strydom. Introduction to travel and tourism marketing. Lansdowne: Juta and Company Limited, 2001.
Fyall, Alan and Brian Garrod. Tourism marketing: a collaborative approach. New York: Channel View Publications, 2005.