UNIT 5: MARKETING AND PROMOTION

Marketing

Marketing is basically seeking out demand first and then making the products or
supplying the services to satisfy that demand.

Promotion

Promotion is communicating with the public in an attempt to influence them

towards buying the products or services.

Needs

Goods and services that is necessary for one’s survival.

Basic needs are food, water, clothing and housing.

Wants

Goods and services that is not necessary for one’s survival but which one would
like to have.

A customer is someone who buys goods/services from a business.

Why marketing and promotion is important to travel and tourism organizations

1. To create a competitive advantage.

2. To enhance good image of a product or organization.
3. To increase sales and profitability.
4. To improve customer satisfaction.
(Offering products and services that meet customer satisfaction.)
(Customers will be back for repeat business.)

The main marketing and promotion techniques used in Travel and Tourism.

Marketing research

It is the systematic study of data to obtain information relevant to the marketing

of product/services such as data relating to customers habits, wants and needs.
UNIT 5: MARKETING AND PROMOTION

The purpose of marketing research

 To get customers feedback about products and services.

 To inform and improve future decision making at all levels.
 To identify customer needs and then meet those needs.
 To learn about customers attitudes and values.
 To help develop products and services that meet identified needs.
 To discover sales trends.
 To find out about competitors of promotional activity.
 To measure the effectiveness of promotional activity.
 To classify customers into groups or types.

Marketing research techniques

Primary marketing research

This is also called as field research where it involves the organization and its
customers in a first-hand research.

Data may be collected by carrying out surveys and questionnaires to find out
about markets.

These can be undertaken by post or e-mail, telephone, door to door, questioning

or stopping people in the street.

Secondary Research Techniques

This is often referred as “Desk research”

This research is usually taking information that collected by examining data in the
company’s file or in public records.

Qualitative data

The information collected about customer opinions and attitudes towards the
products and services.

Common qualitative techniques interviews observations.

UNIT 5: MARKETING AND PROMOTION

1. Introduction.
2. Role & function of marketing and promotion.
3. Market segmentation and targets.

Promotion

Any form of communication a business uses to inform, persuade or remind

people about its product.

Promotional Mix

Selling, advertising, sales promotion, direct marketing and publicity.

Sales promotion

Any short – term activity designed to increase sales by offering consumers some
type of incentive (Eg, Offering a discount for a limited fine.)

News Release

Written or recorded communication directed at members of the news media for

the purpose of announcing something news worthy.

Premiums

Promotional items linked to a product that often requires box tops, token or proof
of purchase to acquire.

Sponsorship

Type of advertising where a company pays to be associated with a specific event

(Eg, Charitable events, fairs, sports tournaments etc.)

Point of Purchase Display

Placed where the customer is ready to make a purchase draws attention a

particular brand that creates additional value/showcases the product’s
advantages.
UNIT 5: MARKETING AND PROMOTION

Mass advertising

When a firm ignores market segment differences and appeals to the whole
market with one offer/strategy.

Transit advertising

Placed in/on modes of public transportation (Eg Sides of buses, trains, subways,
taxis, etc.)

Specialty media

Giving away gifts in the form of small handy items with the permanent
promotional message imprinted on them for the target market.

Frequency

Used to lure and retain customers for a long terms, includes events like
advertising at frequent intervals, giving discounts to loyal customer, organizing
events etc.

Promotional Budget

A specified amount of money set aside o promote a business or organizations

products or beliefs.

Viral Marketing

A method of marketing where by consumers is encouraged to share information

about a company’s goods or services via the internet.

Mobile marketing

Ensuring that all marketing efforts are mobile device compatible (Email, text,
social media, mobile apps etc.)

SoloMo Marketing

Social, local, mobile, marketing strategies aimed at directing traffic to a business

website.
UNIT 5: MARKETING AND PROMOTION

Product Promotion

Used to convince potential customers to buy a product.

Advertising

Any paid form of non-personal promotion used to remind, inform or persuade

consumers about a business or its products.

Public Relations

The professional maintenance of a favorable public image by a company or other

organization or a famous person.

Push Policy

Using a promotional mix to encourage wholesalers and retailers to buy products

for resale (supply)

Trade Promotions

Marketing campaign at wholesalers or retailers rather than at final consumers

Incentives

The use of prizes and rewards to market or advertise a product.

Product Placement

Indirect form of advertising where businesses pay to have its product prominently
displayed in movies, television shows etc.

Promotional Advertising

Advertising that promotes a product using benefits or rewards (Eg. sweepstakes,

in-store demonstrations, loyalty rewards programs, etc.)

Media

Communication channels through which new, entertainment, education or

promotional, messages are publicized.
UNIT 5: MARKETING AND PROMOTION

Outdoor Advertising

Billboards, bus benches, interiors/exteriors of buses, signage outside brick and

mortar locations are examples of outdoor advertising.

Media Planning

Purpose is to determine the best combination of media to achieve marketing

campaign objectives.

Impressive

A single exposure to an advertising message.

Advertising Campaign

An organized course of action to promote a product or service.

Social Media Marketing

Producing useful, thought – promoting content and engaging people in

conversations about that content to influence consumers.

Visual Merchandising

Presentation at a store and its merchandise aimed to attract potential customers.

Institutional Promotion.

Used to create a favorable image for an organization.

Direct Marketing

Selling products or services directly to the public (Eg. Mail-order, telephone

selling, etc.)

Publicity

Placing newsworthy information about a company or product in the media.

UNIT 5: MARKETING AND PROMOTION

Pull policy

Using a promotional mix that encourages consumers to buy products for personal
use (demand).

Consumer Promotion

Actions intended to convince individuals to purchase a good or service (Eg.

reduced price, free sample, bonus, etc.)

Promotional Tie-in

When the buyer must purchase an additional item in order to buy the desired
item.

Loyalty Marketing Program

Rewards program, gives customers advanced access to new products, special

sales coupons to free merchandise.

Institutional advertising

Advertising intended to promote a company or corporation, does not attempt to

sell anything directly.

Print media

Paper publications circulated in the form of physical editions of books, magazines,

journals, newsletters.

Broadcast media

Used to transmit information immediately to the wildest possible audience.

Audience

The total number of people exposed to an ad.

UNIT 5: MARKETING AND PROMOTION

Cost-Per-Thousand

The media cost exposing 1,000 people to an advertising impression

CPM= Cost of Ad = 1,000/Gross impression.

Promotional Adaptation

Changing the advertising message to reflect the values, familiar images and
cultural differences in a foreign market.

Search engine optimization

The process of trying to max the number of visitors to a particular website by

ensuring that the site appears high on the list of results returned by a search
engine.