Chapter 10 - Tourism Marketing

hello students welcome to our 10th

lesson today we are going to discuss

about tourism marketing

are you ready let's begin

at the end of this lesson you should be

able to define marketing

clarify the uniqueness of theresa

marketing

explain the importance of marketing

orientation

market segmentation and product life

cycle to visa marketing

and discuss at the elements of the

strategic marketing process

so first let us define marketing

marketing consists of all those

activities necessary to bring a product

or service

from the manufacturer to the end user

these activities include 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 therefore marketing

does not only include about advertising

and promotion but it includes

first the conceptualization of what kind

of product you're going to offer to the

market

and this will include researching and

you're going to develop these products

identify

um your target market um it's pricing

what type of

product you're going to to deliver and

then after that

you sell you advertise and then of

course you need to evaluate so

marketing is a whole process okay

so in tourism marketing is the

systematic process by which organization

tries to maximize

tourist demand satisfaction through

research

forecasting and the selection of the

reason products and services to meet

that demand another definition is it is

a management philosophy

which in the light of tourist demand

makes it possible through research

forecasting and selection to place

tourism products on the market

in line with the organization's purpose

for the greatest benefit

so in tourism uh tourism demand is very

important

and we need to know what kind of supply

or what kind of tourism products and

services

we need to match to the demand of our

market

for them to offer us to have a 100

percent

satisfaction okay

so now let us identify the uniqueness of

tourism and marketing because

as we all know tourism is kind of

different in terms of marketing compared

to other

industries so first tourism is a service

most of the things that we provide in

tourism is more on in a form of service

though we have products but large part

of marketing in tourism is in a form of

service and

um it it these are more on intangible

things

okay so unlike marketing other products

in manufacturing industry for example a

ball pen

a pen a pen is a manufactured product

if it is not being sold in a day you can

store a pen

and then you're gonna sold it in the

other day right

still it still it belongs to your

inventory

but in tourism our product is more on

perishable

because if we're gonna not gonna sold it

in a day we cannot store it

and then it will be considered a loss

forever

example uh a lost sale in ahuta for

example your hotel

has a 200 rooms available

but there are only 150 bookings in one

night

so the other 50 available rooms will be

considered as a loss

and it cannot be stored for the next

sale because it will be considered

lost forever okay

next is the service provided is usually

composed of several components

in tourism since most of our products is

in a form of intangible

things or services this

is composed of different components what

are these components

these are transportation accommodation

food and beverage

and other things like souvenirs

attractions and the like

right so in tourism

one uh one performance

of one of the components may affect the

other components

like what happened during our tour

uh like two years ago we had experienced

because usually in a tour it is in the

form of package right

and we have experience upon going to the

destination

the bus stop because it it encountered a

technical problem

and that bad experience

have affected the full satisfaction of

the tourists

because um even though it's just the

starting point of the poor

they were able to experience thing

so it affected the other flow of the

door okay they will say oh i had a very

experienced when we had a tour in blah

blah blah blah

because um it will affect the whole

experience of the tourists another

example

when the tourists come here in the

philippines

of course that tourists will be

encountering tour guides right

if the tour guide has a uh has a bad

performance when encountering with the

tourists

the tourists may say oh i had a very

bad experience in the philippines

because the tour guide was very bad

right so it's just a portion of the tour

not the whole thing despite of

all the good experiences that tourists

had

while he went here in the philippines it

will affect

his overall experience so that's kind of

unique in the tourism industry

next is travel intermediaries or a

necessity

so since most of

the suppliers in tourism industry

are far from their customers travel

intermediaries are a necessity and since

we

are composed of different components

like when we are going to offer tour

package

then we need to acquire the services of

travel agents and tour operators to put

them

into one package

and lastly is tourism demand is highly

elastic

seasonal in character and subject to

change

in taste and fashion so tourism is a

dynamic industry we are changing

depending on the current trends our

customer behavior is changing

it is seasonal because we have high

season lean season

it means that there are times that we

have a lot of tourists and there are

also times that

uh we don't have any tourists at all so

we need to adapt

to those factors

so for us to properly apply what type of

marketing strategy that we're going to

use we are going to use

e-marketing orientation so first is

product orientation so a product

orientation emphasizes the products or

services

that are available so in product

orientation

you need to develop your supply okay

you need to develop your product and

then the best

product will be chosen by the market it

is applicable

when there is a surplus of demand over

supply

so most of the resorts will

develop their products market then they

they are going to focus on

on the quality of products that they are

going to offer to the market

regardless of the customer's needs and

wants

while in customer orientation or

consumer orientation

it places the tourists needs and wants

foremost in the mind of the marketer

who seeks to provide a product or

service that will satisfy those needs

and wants

hence in consumer orientation

it is usually applied when there is

high supply than demand so

in here you are looking at the needs and

ones of your consumer and then

you need to provide them by providing

them your products and services so

um in product orientation you are very

focused on what type of product you're

going to offer

and in customer orientation you are very

focused on what are the needs and wants

of your

customers and lastly we have societal

marketing approach or societal

orientation

so it focuses on the satisfaction of

tourists needs and wants

while respecting the long-term interests

of the community so it does not only

focus on the products on the the

consumer

but it focuses in the community as a

whole

so for us also to meet the demands of

our tourists

then we need to divide them right so we

called it

as market segmentation so market

segmentation is the process of grouping

together

our market uh depending on these

criteria so we have four criteria

in informing our market segmentation

first is social economic

demographic segmentation so it is in a

form

of grouping them by age by sex

education income so it is the most

common uh market segmentation that we

use because it is easier to collect data

using the

social economic and demographic data

next is product related segmentation so

product related segmentation

is that you're gonna group your market

on the type of product

that you're going to offer okay so the

advantage of this is that

you know what kind of product uh you

know what kind of market

based on the product you're going to

target

all right so example of product related

segmentation we

have a transportation mode accommodation

style and types of attraction okay

that our customers are veiled off the

third one is psychographic segmentation

so in psychographic segmentation we are

looking into the uh psychographic

characteristics of our market

on uh their behavior on how they are

going to avail the products

on on example is their lifestyle

or their length of stay in the

destination

um what what are their behaviors in

buying the products like that

and lastly is geographic segmentation it

is the most important

um criteria in the tourism industry

because

um most likely destinations are grouping

their market depending on their

geographic location because

we need to identify if we are going to

target local tourists domestic tourists

or international tourists

so we have different segmentation

assumptions first

the market for a product or service such

as vacation comprises particular

segments

whose members have particular needs and

preferences

related to the product or service being

marketed

second these potential tourists can be

grouped into segments

whose members have similar

characteristics and third

single product offering such as a trip

to baguio will appeal to some market

segments more than the others so

um if one product for example going to

the beach will appear to some tourists

it may not be appealing to other types

of tourists

some firms and organizations can improve

their marketing efforts by developing

specific product offerings to reach

specific market segments

so after identifying the market segments

it is necessary to select

which segments the destination would

like to attract and serve

and the segments chosen will become the

target market

the process of selection and the

corresponding decisions to develop a

marketing program

suitable to meet the needs of these

segments is known as

positioning so positioning is the

process of identifying

uh what type of of market you're going

to target and what will be your actions

for you to meet uh the demands of your

market

so now let us discuss about the product

life cycle

so life cycle product life cycle

it undergoes different stages so the

first stage is introduction so in this

phase usually companies experience lots

of failures because

um it is uh in in this stage that we're

going to

introduce a new product after that

is the growth stage so at this stage we

are starting to have

a higher sales our sale is increasing

and after that is maturity this means

that we have already acquired a higher

sales

and we have uh penetrated the

marketplace

and next to that is saturation so during

this stage our sales is in

its highest peak and lastly is decline

so if we are not going to develop or

innovate our product it may experience

a decline in the market so to avoid

decline stage

um you will know this when you start to

lower your sales okay if you observe

that

your sales are decreasing then you need

to innovate

new things you need to to research

again uh what are the current trends

what will be new marketing strategies

that you need to

comply now uh let's talk about the

strategic marketing process

so we have six steps in determining a

marketing strategy first is we need to

identify the market segment we need to

group

our market then determine the

preferences of the market segment

okay what do they like what kind of

product they are going to avail

then we need to determine

what influences the segment most uh

would it be price

product image sales persuasion customer

service

product availability and the like

and we need also to realize the

importance of two clients

we have the traveler and the travel

intermediaries such as the travel agent

or tour operator so take note that in

tourism we have two types of

uh consumers or clients okay the

traveler itself and the travel

intermediaries next we need to determine

the marketing needs that will influence

the segment identify

and lastly is we need to establish a

price policy that will maximize profits

by balancing the number of tourists

with the capacity of the attraction do

not forget guys that when you are going

to market a tourist destination

you must always consider the carrying

capacity of the destination okay

so we have here three elements of

strategic marketing first is market

planning

next is target market selection and

lastly is the marketing mix selection

for the market planning process it will

start with a collection of data

so in the collection of data it will

involve researching

conducting surveys it could be through

in a form of interview

or in a form of survey questionnaire so

we have two types

of collection of data it could be in a

form of primary

source wherein we need to

to really conduct a survey personally

and the other one is secondary sources

it could be

we can get information online uh data

from the department of tourism so like

that

so the the first one the primary sources

it's more

expensive and it's more on a detailed or

thorough process

because we need to personally get the

data from the respondents themselves

next is we need to analyze those data

okay after

we gather or we collect all the data we

need to analyze and interpret them

and then after that we need to identify

different alternative strategies for

reaching the desired goal so we can have

a lot

of um strategies alternative strategies

so we need to identify what are those

like for example if you're gonna sail an

airline um

an airline could use different

strategies it could offer

um seat selections it could also offer

promotions like now they have a lot of

promotions for them to increase their

sales

so after that you need to analyze the

cost

and the benefit okay um you need to

to individually analyze what will be the

costs

how much will be the cost what will be

the benefit of each of the

alternative strategies that you have um

instead then after that um

those strategies that has

the least cost and most benefit should

be selected

okay and then after that you need to

plan

then after planning you need to create

control procedures and how you're going

to conduct

your marketing program

and then lastly is you need to implement

your plan okay so in this stage

it is more on um how you're going to

to present your marketing program like

that all the information

including your marketing plan

next is target market selection so there

are four steps in identifying target

markets adjusted by the tourism usa so

first is estimate the approval of an

area's attractions

estimate the distance in both travel

time and travel costs

identify the potential target markets

geographic geographically

by locating the population clusters

within the maximum distance determined

from the estimated travel time and the

lure of the attraction and lastly is

identify the actual and potential

competition in the target market

so the behavioral characteristics of

potential travelers are very important

in identifying

target markets and people travel for

different reasons take note of that

some are interested in historical or

cultural activities while others

prefer sports events or entertainment

that's why we have a lot

of types of tourists because we have

different

preferences and interests so research

can determine

the behavioral target markets that would

be best suited for the particular

products

and match the attractions with those who

are most likely to enjoy them

and let the tourists know their

existence through promotion so we need

to

have a supply and demand matching

now let's discuss about marketing mix so

in this for the purpose of this

discussion we will only be discussing

the first two part

the product and price because promotion

and distribution

will be discussed in different chapters

okay so first is prada

so several criteria should be met in

deciding to provide a product or

service so 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

new products and services should suit

the general image of the destination

area and complement existing ones

new products and services should be

offered in accordance with the available

supply of

workforce money and natural resources

and

any other products or service should

contribute to the profit

and our growth of the entire destination

so product is the most important

consideration that we have when forming

our marketing mix because it is the main

thing that we're gonna offer to our

market

next is price so price is the result of

supply and demand so

it is influenced by competition and

related to the needs of the market

segment that is served

so we need to consider a lot when

forming the prices of our specific

products it will demand

it will depend on what kind of product

that you're going to offer

who will be your target market what is

the current

competition in your marketplace

and what are the costs in your product

so you need to consider all

those things before formulating your

price

all right so that's the end of our

lesson if you have questions you may ask

them during our virtual class meeting

see you