Tourism and Hospitality Marketing Patricia Costales

CHAPTER I UNIQUE CHARACTERISTICS OF THE

TOURISM INDUSTRY
MARKETING INTANGIBLE Tourism Products can’t be
- has become a buzzword in the world of business when touched, smelled, tasted,felt nor
the competition to gain market share began among heard prior to purchase. They
businesses. Marketing has evolvedfrom simple trade to a cannot be subjected to prior
production orientation, and to a sales orientation. When scrutiny. One cannot examine
business realized that production was increasing, they nor test them before purchase,
began competing for recognition within market. The unlike consumer products which
customer has become king, and building relationships can be sampled.
with them has been at the hear of any successful INSEPARABLE The Tourism Product can’t be
business enterprise. With the rise of relationship separated from the consumer.
marketing and social media marketing, the rules of the When tourists avail of products
game have changed. and services, they have to
personally go to where the
TOURISM products are. Since what is being
- is one of the leading industries of the future. Next to sold is the experience, the
information technology and telecommunications, product and the consumer cannot
tourism contributes largely in terms of job generation be in two different places; they
and strengthening of economies. Much attention has have to be in the same place.
been given to how tourism can continually grow. Just VARIABLE The tourism experience is likely
like any other business, marketing plays an integral role to be different depending on
in its continuing growth. when the product is availed, who
one is with, and how the service
Tourism & Hospitality providers deliver the service at
• One of the leading industries of the future the time of consumption.
• One of the world's largest and fastest growing PERISHABLE The Tourism Product is one of
industries the most highly perishable of
• There has been estimated that there are 5-6 billion products. Perishability, as used
domestic tourists who travel within their country of in this context refers to not being
residence able to forward inventory to the
• It is projected that there will be a total of 1.8 billion next day. It does not refer to
visitors traveling internationally by 2030 food being spoiled and thrown
away. Products become
*The success of any business in the travel and perishable when it can no longer
hospitality industry is highly dependent on its marketing be consumed today even when
efforts. no one consumed it the day
before.
MARKETING FOR TOURISM AND SEASONAL Seasonality does not only refer
HOSPITALITY to seasons of the year or the
weather conditions. It also refers
Marketing covers several levels, from the tourism to behavioral patterns of the
destination as the product itself, down to the specific travel market. The seasonality of
tourism products and services that a tourist should avail the tourism product hinders it
to complete the tourist experience. These products from maximizing its profits all
include transportation (airline, cruise ships, bus, etc), year round. Hence, intensified
accommodation (hotels, inns, apartelles, bed and marketing during the lean season
breakfast), food and beverage (restaurants, catering, will help increase demand for
bars), attractions (amusement parks, museum, zoos, the product.
marine sanctuaries, etc), amenities, and souvenir shops, SUBSTITUTABLE Competition in the tourism
among others. industry is intensifying. With
new destinations emerging and
What is tourism actually selling then? competing in the global
Tourism is not a single product. It is a combination of marketplace, one destination can
products and services which results in a holistic easily be substituted for another
experience for the traveler. destination.

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Tourism and Hospitality Marketing
Tourism as a High Involvement Product
Decision making in the purchase of tourism products is
considered to be of high involvement.
• High Involvement
- There is a greater degree of thought prior to the
purchase. Expensive, complex, and unrepeatable are
characteristics of high involvement products.
• Expensive Products
- A long and detailed process of canvassing and
comparing of brands, suppliers, and product features.
• Complex Products
- The difficulty may arise from the need to understand
the features or details of the product.. Travel pcakages
can be considered as complex mainly due to the variety
of products and services available.
• Unrepeatable Nature
- "Once -in-a-lifetime" purchase. With the novelty-
seekin behavior of most tourists and the high cost of
travel, travel purchases may not be repeated or may be
infrequent.
HIGH INVOLVEMENT LOW INVOLVEMENT
• Expensive • Inexpensive
• Complex • Simple
• Unrepeatable • Familiar
TOURISM MARKETING
Definitions
• Social Process (Philip Kotler)
- Individuals and groups obtain what they need and want
through creating and exchanging products and value
with others
• Finding, retaining, and growing profitable
customers (Kotler, Bowens and Makens)
- Customer-centered marketing. Finding, retaining and
growing profitable customers need strategic planning to
ensure customer satisfaction and building of customer
loyalty.
• American Marketing Association approved a new
definition:
- Marketing is the activity, set of institutions and process
for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners
and society at large.
MARKETING AS A MANAGEMENT PROCESS
1. Marketing Information System
- Enables the organization to compile an updated
set of information about its customers, competitors, and
the organization's capability and effectiveness.
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Patricia Costales
2. Marketing Planning
- This involves an analysis of the marketing
environment in relation to the potentials of one's
business. It also involves the setting up of objectives and
an evaluation of the milestones that the company has
reached.
3. Planning Tactical Campaigns
- This step ensures that practical an realistic
campaigns are conducted in support of the
comprehensive marketing strategy.
4. Marketing Operations
- This process involves the challenging part of
implementing the planned strategic and tactical
campaigns by coordination with all stakeholders, fine
tuning the marketing mix as they unfold, and ensuring
that activities are conducted as planned.
5. 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 (if any) and
coordination with what the staff has to say about the
marketing campaigns.
CORE MARKETIING 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 the business
• 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
THE MARKETING MIX
Marketing facilitates the exchange process and the
development of relationship by carefully examining the
needs and wants of consumers, developing a product or
service that satisfies these
needs, offering it a certain
price, making it available
through a particularly place or
channel of distribution, and
developing a program of
promotion to create awareness
and interest.
• Product or Service - what the company is offering to
satisfy a consumer's want or need
• Promotion the strategic - plan by which customers
are informed about the product or service and its value.
Tourism and Hospitality Marketing Patricia Costales
2. Incentive-based compensation
• Price - value that the seller puts on the product or 3. Consolidation of the retail industry
service 4. Database marketing
• Place - the means by which the product or service
reaches the customers  TO REACH TARGET MARKET
 TO ACHIEVE COMPANY OBJECTIVES
INTEGRATED MARKETING  WITHIN THE AVAILABLE BUDGET
COMMUNICATIONS APPROACH
1. Growth of Technology
CHAPTER II
THE TOURIST MARKET AND SEGMENTATION VARIABLES FOR SEGMENTATION
• Geographic - Nation
DEFINITION OF A MARKET States
A market is a set of actual and potential buyers of a Regions
product. These buyers share a particular need or want Countries
that can be satisfied through exchange relationships. Neighborhoods
Barangays
THREE STEPS TO TARGET MARKETING Towns
• Market Segmentation • Demographic - Age
the process of dividing a market of potential customers Life Cycle
into groups, or segments, based on different Gender Income
characteristics. Occupation
• Market Targeting Education
process of selecting the target market from the entire Religion
market. Race
• Market Positioning • Psychographic - Social Class
the ability to influence consumer perception Lifestyle
Personality
MARKET SEGMENTATION • Behavioral - Special Occasions
Benefits sought
Market segmentation is dividing the market into Usage Rate
distinct group who might require separate products User Status
and/or marketing mixes. Loyalty Status
Buyer Readiness
A market segment is a subgroup of the total consumer • Technographic - Prevalence of the Internet, there is an
market who share similar characteristics and needs increasing division between the users
relevant to the purchase of a product, service or and nonusers of technology in
experience. searching for travel information.
(Cooper, 2006)
CHARACTERISTICS OF A MARKET SEGMENT
MARKET TARGETING
• Identifiable - The people who comprise the segment
can be located and identified such that targeting them 3 Factors To Consider
would be easy.
• Cohesive - The consumers should be part of a whole • Segment Size - Refers t the current sales volume,
whose specific qualities are common to all. growth rate, and high profit margin.
• Measurable - The marketer should be able to estimate • Attractiveness - Refers to the potential impact of the
the size and potential spending of the members of the segment to the company.
market segment. • Company Objectives and Availability of Resources
• Accessible - The members of the segment should be - Refer to the main reason for its decision making and
accessed by marketing efforts and promotional activities the available resources they will use.
to be conducted.
• Substantial - Segments should be large in order to be MARKET COVERAGE STRATEGIES
substantial. If the segment is small, it should have a high
spending capability to make a significant impact on the • UNDIFFERENTIATED MARKETING -a company
business' bottom line. ignores market segmentation and goes after the entire
• Actionable - The company has enough resources and market with only one market offer
commitment to enable effective penetration of the
identified segment to ensure effective positioning.
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Tourism and Hospitality Marketing Patricia Costales
• DIFFERENTIATED MARKETING -approaches the
market by targeting several market segments using MARKET POSITIONING
separate offers per segment
• CONCENTRATED MARKETING -practiced by Market Positioning is developing competitive
companies with limited resources. It pursues getting a positioning for the product and an appropriate marketing
big share of a small market rather than a small share of a mix.
large market.
THREE POSITIONING CONCEPTS WILL HELP
FACTORS TO BE CONSIDERED IN CHOOSING REINFORCE THE IDEA OF MARKET
A MARKET COVERAGE STRATEGY: POSITION:
• Unique Selling Proposition
• COMPANY RESOURCES. a term used to identify what makes the product or
This refers to how much money and resources the service different from others.
company has which can be allocated to marketing. • Competitive Advantage
• DEGREE OF PRODUCT HOMOGENEITY. the product's advantage over competitors, which is
If products are standardized and identical, it is more gained by offering greater value either by offering lower
advisable to go for undifferentiated or concentrated prices or providing more benefits to justify higher
marketing. prices.
• Top of Mind
the highest level of recall that a brand receives. It means
that the brand occupies the top spot in a consumer's
mind.
• MARKET HOMOGENEITY.
If there is a diverse market, differentiated marketing is NEW AND EMERGING MARKETS
advisable. • Family Market
• COMPETITOR'S STRATEGY. • Senior Market
It is important to assess the strategy competitors are • Youth Market
using so that the correct strategy can be implemented to • Mice Market
counter their marketing efforts.

CHAPTER III
TOURISM AND CONSUMER BEHAVIOR

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Tourism and Hospitality Marketing Patricia Costales
FACTORS THAT INFLUENCE CONSUMER
BEHAVIOR
3. AGE AND GENDER

4. SOCIAL CLASS
5. LIFESTYLE
6. LIFE CYCLE
7. REFERENCE GROUPS
8. PERSONALITY AND SELF-CONCEPT

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Tourism and Hospitality Marketing
THE BUYER-DECISION MAKING PROCESS
Consumer Decision Making Process
1. Need Recognition
2. Search for Information
3. Evaluation of Alternatives
4. Purchase Decision
5. Post-Purchase Evaluation
1. NEED RECOGNITION
Successful business owners are those that have
thought to satisfy a need even before consumers have
articulated such a need. The buyer decision process
starts with the recognition of a need. In other words, the
buyer recognizes a problem or a need. The need can be
triggered by internal stimuli as well as external stimuli.
2. INFORMATION SEARCH
• Internal information search - nothing more than
retrieving decision-relevant information stored in
an individual's long-term memory.
• External information search - focuses on
acquiring information form outside or external
sources
Marketers need to know how their clients came to know
about their products and services so that they can
prepare a more effective means of communicating with
their target market.
3. EVALUATION OF ALTERNATIVES
This stage allows prospective customers to make
detailed comparisons of different product or service
providers since they already have sufficient information.
4. PURCHASE DECISION
This is the stage most awaited by tourism
marketers. This is when consumers actually make the
purchase decision. At this stage, marketers should
facilitate the speed and convenience by which the
products or services reach the consumers
5. POST-PURCHASE EVALUATION
It is extremely important for product and service
providers to ensure that customers have a good
experience with the product. This will facilitate positive
word of mouth. Customer satisfaction can have different
degrees, as follows: extremely satisfied, satisfied,
neutral, dissatisfied and extremely dissatisfied.
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Patricia Costales
• Satisfaction - a person's feelings of pleasure or
disappointment resulting from comparing a
product's perceived performance in relation to his
expectations.
CUSTOMER SATISFACTION THROUGH
SERVICE QUALITY
Marketers can be creative in reducing consumer post-
purchase dissatisfaction by keeping in touch even after
the sale has been made and knowing how to address
customer complaints.
SERVICE QUALITY an assessment of how well a
delivered service conforms to the client's expectations.
BENEFITS OF SERVICE QUALITY
• Customer Retention - Service quality helps build
loyalty among customers and makes these customers
speak positively about the service provider.
• Avoidance of Price Competition - Providing high
quality service helps in maximizing potential revenue
and veers the company away from a price war.
• Retention of Good Employees - When an operation is
well run and produces high quality products,
recruitment, training, and retention of employees are
easy.
• Reduction of Costs - Costs are minimized if there are
repeat customers, absence of a price war, and low
turnover rate of employees.
ORGANIZATIONAL BUYER BEHAVIOR
THE PURCHASE DECISION PROCESS IN
ORGANIZATIONS IS MORE COMPLEX THAN
THAT OF INDIVIDUAL PURCHASES.
• Problem Recognition
• General Need Specification
• Product Specification
• Supplier Search
• Proposal Solicitation
• Supplier Selection
• Order Routine Specification
• Performance Reviews
TYPOLOGY OF TOURISTS
PLOG'S TOURIST MOTIVATION MODEL
classifies travelers as allocentrics or psychocentrics.
Plog adds "energy as a determinant of (high or low)
level so factivity.
• Allocentric - prefer what is new, unstructured, exotic
or unusual in terms of trips or destination choice
• Psychocentrics - are those who prefer the structured
and familiar
COHEN'S MODEL
Tourism and Hospitality Marketing
It proposed four classifications of tourists: the organized
mass tourist, the individual mass tourist, the explorer
and the drifter.
• Organized mass tourist - the type of tourist who buys
all inclusive tour packages and ensures that everything
goes as planned.
• Individual mass tourist - more autonomous than the
organized mass tourist preferring to travel
independently, but still chooses popular destinations and
activities.
• Explorer - seeks new areas but would sometimes opt
for the comfort of familiar accommodations • Drifter -
the free spirit who avoids any kind of traditional tourist
establishments
STEWART'S MODEL OF HOLIDAYTAKING
the model was built on the concept that as people
become more affluent, they tend to travel more and the
travel experience is cumulative. They also tend to be
CHAPTER IV
TOURISM MARKETING AND THE
COMMUNICATION PROCESS
COMMUNICATION
It is defined as transmitting, giving, or exchanging
information using oral or written means. Hence,
marketing and communication go hand in hand.
COMMUNICATION THEORIES
It 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.
MODELS OF COMMUNICATION
• Harold Lasswell's SMCRE Model
The communication process begins when the source
selects words, symbols, pictures and the like to represent
the message that will be delivered to the receiver.
Encoding is the process by which thoughts are
expressed in the form of words, symbols, pictures, and
gestures.
Decoding is the process of transforming the
sender's message into the receiver's thought. How the
message is received and understood.
• Shannon and Weaver's Mathematical Model
It describe communication as a linear process. The
process begins with the information source, which
produces a message or a set of messages to be
transmitted.
• Berlo's SMCR Communication Model
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Patricia Costales
more adventurous and confident as their level of
affluence and travel experience increases.
• Bubble travelers - have low affluence, low travel
experience, and observe foreign culture from a bubble.
• Idealized-experience seekers - have more affluence
and a base of overseas travel experience.
• Wide-horizon travelers - have more affluence, greater
confidence and more travel experience.
• Total immersers - do not seek to merely observe but
to be exposed fully to another culture's language, food,
heritage and lifestyle.
THE NON-USERS
Non-users can be classified as
1. Ex-users who stopped using the products/services for
various reasons,
2. customers who are aware of the product or service but
need to be persuaded to purchase, and
3. those who are not aware of the product or service's
existence.
It introduces factors that may affect the process of
communication from the source, message, channel and
receiver. The source and the receiver of the message
have different levels of communication skills, attitudes,
knowledge of the topic being discussed, and social
system which covers various aspects of society and
culture.
• Osgood and Schramm's Model of Communication
This is dynamic in nature. It veers away from the
linear models of previous communication scholars. It
looks into communication as circular in nature. The
encoder (sender) is able to send a message to a decoder
(receiver) who interprets the message and sends
feedback to the original message sender.
ROLE OF CULTURE IN TOURISM MARKETING
Hofstede's Cultural Framework
The cultural variables that Hofstede's framework
discusses include power distance, individualism,
masculinity, uncertainty avoidance, pragmatism, and
indulgence.
ROLE OF OPINION LEADERS
The Two-Step Flow Model
The two-step flow of communication model
hypothesizes that ideas flow from mass media to opinion
leaders, and from them to a wider population.
ROLE OF INNOVATION MARKETING
Diffusion of Innovation Model
Tourism and Hospitality Marketing
a theory that seeks to explain how, why, and at
what rate new ideas and technology spread.
ROLE OF MARKETING COMMUNICATION
Communication and its Relationship to Tourist
Satisfaction - The greater ease in communication leads
to higher satisfaction levels.
Communication is Influence - The way we
communicate with people determines the level of
influence we have on others.
CHAPTER V
THE TOURISM PRODUCT
KEY PLAYERS IN THE TOURISM INDUSTRY
PRIVATE AND NON-PROFIT SECTORS
include industry associations which have been
established to protect special interest groups, such as
travel agency associations (PTAA, PHILTOA), financial
services (Credit cards, academe, media and insurance
companies.
PUBLIC SECTOR SERVICES
cover either national, regional or provincial toursm
organizations. They come up with marketing to promote
their destinations to both intermediaries and individual
tourists.
SUPPLIERS
• Transportation Industry
• Accommodation Sector
• Food and Beverage Sector
• Attractions
• Events and Conferences
TRAVEL INTERMEDIARIES
help bring the tourism product to the customer.
These are also known as channels of distribution. Travel
intermediaries include travel agents, tour operators,
webbased distributors, etc.
TOURISTS
the center of the tourism industry. being the main
consumers of tourism products, they choose where they
want to go, what they want to eat, and what they want to
do. The tourist's satisfaction is the utmost goal of all
other key players in this industry.
THE TOURISM PRODUCT DEFINED
• Destination Attractions - a collection of attractions,
which is the element of the tourism product that pulls
people to a destination.
• Destination Facilities - a wide range of tourist
facailities within the destination will help the tourist
enjoy the destination attractions.
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Patricia Costales
Communication Problems - Several factors are:
Language barriers, varied connotations of words, signs
and symbols, cultural differences, faulty word choices
and mistranslations.
GOAL OF MARKETING COMMUNICATION
The goal of marketing communication is to achieve
common ground between the sender and receiver. The
bigger the union of the two circles, the easier it is to
encourage and influence the other person.
• Accessibility - for a tourism product to be highly
successful, infrastructure services and transportation
systems should be put in place.
• Image - central to the product is its image. Destination
image helps the visitors form expectations of what they
will experience. It also motivated them to make a
deicision to visit the said destination.
• Price - it is an important component of the tourism
product. It allows consumers to determine th elevel of
services they may receive in the destination.
PRODUCT TYPES
• Core Product
- CONSUMER IS REALLY BUYING
• Facilitating Product
- GOODS OR PRODUCTS THAT MUST BE
PRESENT FOR THE GUEST TO ENJOY AND
USE THE CORE PRODUCT
• Supporting Products
- ADD VALUE TO THE CORE PRODUCT
• Augmented Products
- FACTORS THAT HELP THE CONSUMER
CONSIDER THE PRODUCT OVER OTHER
PRODUCTS BECAUSE THESE INCLUDE
PRODUCT ACCESSIBILITY, OPERATING
HOURS, ATMOSPHERE, CUSTOMER
SATISFACTION, ETC.
PRODUCT CONSIDERING
The product characteristics that marketing
practitioners must consider when designing and
developing a new product or managing an existing
product.
• accessibility
• atmosphere
• customer interactions with the service system
• customers interact with other customers
• co-production of the product or service
Tourism and Hospitality Marketing Patricia Costales
PRODUCT LIFE CYCLE
DESTINATION LIFE CYCLE

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