Marketing

Dedicated to supporting students studying Travel and Tourism

The marketing section includes

1. Marketing and promotion

2. Market segmentation

3. Marketing mix for travel and tourism

See Resources - BTEC for teaching and learning resources

See Resources page for a comprehensive range of websites and YouTube clips.

The role of marketing activities in influencing customer decisions and meeting customer needs

Interrelationships between marketing and customer service in travel and tourism organisations

What is marketing?

Market research:
. can help to determine if a business is viable
. identify gaps in the market
. assess the behaviour, characteristics + motivations of the target market
. identify customer needs + wants
. identify competitor activities

Importance of marketing

. Target market
. Research objectives
. Research methods
. Where - is research to be done
. When - is research carried out
. Who - will do the research

Principles of marketing

Surveys + questionnaires: flexible - email, in person, online etc
Observations: watching people, use cameras
Focus groups: in-depth discussion
Trials: test products + services
Interviews: formal (set questions) + informal (fluid)

Marketing segmentation

Internal sources:
Information the organisation already has: sales data, customer details etc
External sources:
Information available from other sources outside of your own organisation. Type of information: Market trends, competitor information, customer spending habits

Visit England: market segmentation

Benchmark against competitors
Compare your business with the competition, check websites and social media; prices; delivery; range of products etc

Producing a SWOT and PESTLE
A business can review its position in the market
Assess trends to plan for the future

Marketing activities

Online websites + media
Trade journals
Published reports
Government statistics
Newspapers
Social media

Customer feedback

Statistics
Examples:
Sales figures
Website traffic
Survey results – Office for National Statistics + Mintel & Keynote

Customer service and marketing

Views + opinions
Examples:
Interviews
Focus groups
Surveys

Inter-relationships

Collecting market research data enables an organisation to take action:
Competitors’ strengths + weaknesses
Assess the quality of the competition
Determine close + distant competitors
Reaction of competitors

Research data

Research data used to identify new products + services
Identify target markets
Identify product features
Promotion
Marketing mix

Influencing customer decisions and meeting needs

Types of customer

Understanding customer needs
Individuals
Families
Groups
Business
Leisure
Education

Market segmentation

Demographic
Socio-economic
Psychological
Geography

The buyer decision making process

Stage 1: Need or want
Stage 2: Search for information
Stage 3: Assess options
Stage 4: Make a choice
Stage 5: Evaluate the purchase

Factors influencing customer decisions

Marketing mix: 4Ps
Quality of service: perceived or real
Value for money: whatever the price
Desire or need: what the customer wants
Confident: trust the organisation
Customer service: levels of service
Communications: via range of platforms
Reputation: how it is seen

Customer needs

Stated
Unstated
Maslow's needs
Cultural needs
Language needs
Special needs

Profits and customer satifaction

Meet customer expectations
Sustainable profits
Customer loyalty
Improving the experience
Customer feedback

The marketing mix used by travel and tourism organisations

Marketing plan

Marketing plan includes:
. Market segment to be targeted
. Benefits of targeting that segment(s)
. Aims + objectives of the marketing strategy
. Strategies for the marketing mix:
Product . Price. Place. Promotion

Importance of marketing and promotion

Increase sales / usage / profitability
Competitive advantage
Positive brand image
Customer satisfaction

Products + services

Tangible: physically hold the product
Homogeneous: things like or similar to each other - standardised
Separable: products consumed after they are bought Storable: product will last a long time (not perishable)

Intangible: cannot be taken away - not physically held
Heterogeneous: try to standardise - but individualised
Inseparable: service delivered at the time
Not storable: services perishable, not used later

Product Life Cycle

Introduction: New product or service is launched. Marketing to promote as this is new. ‘Innovators’ most likely try new products/services
Growth: Sales and profits grow. Competitors will copy and add their own versions - so getting a good brand reputation and loyalty is important – differentiation is promoted to stay ahead.
Maturity: Lots of competition – prices often lower. Longest stage for a product/service as they become more popular in the mass market. Sales are high.
Decline: Sales and profits decline. Some companies not able to compete. Changes need to be made to survive - new markets, innovate etc.
Extension: The life cycle of the product/service extended – perhaps less competitors.
Innovate to change the product/service to attract new repeat customers.

Price

Pricing strategy
Any product or service is made at a cost, if the price is greater then a profit is made
Things to consider:
. The costs of the product/service – break-even point
. What will customers pay (may differ in different countries)?
. Where is the product lifecycle is the product/service?
. What are competitors charging?
. Is the product/service unique?

Pricing strategies

Cost plus
Economy
Penetration
Skimming
Premium
Competitor based
Dynamic
Seasonal
Promotional
Discounting

Place

Distribution channel
Supply chain
Marketing channel

Principals:: Accommodation Transport Ancillary
Wholesalers: . B2B tour operators . Global Distribution Systems
Retailers: High Street travel agents . Online travel agents
Consumers: Leisure travellers . Business travellers . VFR
. Specialist travellers

Promotion

Brand + product awareness

Increased sales + profits

Support advertising + marketing

Competition

Benefits of promotion

Market research to identify new travel and tourism products or services

Teaching + Learning resources

Market research

Market research:
. can help to determine if a business is viable
. identify gaps in the market
. assess the behaviour, characteristics + motivations of the target market
. identify customer needs + wants
. identify competitor activities

Planning market research

. Target market
. Research objectives
. Research methods
. Where - is research to be done
. When - is research carried out
. Who - will do the research

Primary research

Surveys + questionnaires: flexible - email, in person, online etc
Observations: watching people, use cameras
Focus groups: in-depth discussion
Trials: test products + services
Interviews: formal (set questions) + informal (fluid)

Secondary research

Internal sources:
Information the organisation already has: sales data, customer details etc
External sources:
Information available from other sources outside of your own organisation. Type of information: Market trends, competitor information, customer spending habits

Secondary research

Benchmark against competitors
Compare your business with the competition, check websites and social media; prices; delivery; range of products etc

Producing a SWOT and PESTLE
A business can review its position in the market
Assess trends to plan for the future

Secondary research: examples

Online websites + media
Trade journals
Published reports
Government statistics
Newspapers
Social media

Quantitative data

Statistics
Examples:
Sales figures
Website traffic
Survey results – Office for National Statistics + Mintel & Keynote

Qualitative data

Views + opinions
Examples:
Interviews
Focus groups
Surveys

Competitor analysis

Collecting market research data enables an organisation to take action:
Competitors’ strengths + weaknesses
Assess the quality of the competition
Determine close + distant competitors
Reaction of competitors

Identify new product or service

Research data used to identify new products + services
Identify target markets
Identify product features
Promotion
Marketing mix

Promotional campaigns

Teaching + Learning resources

Promotional campaigns objectives

Increase profits
Increase market share
Promote the brand
Respond to competition
Develop new products + services

Promotional campaign

Brand values
Target market
Campaign content
Timescale
Budget
Key Performance Indicators

Promotional materials + activities

Brochures
Blogs - Vlogs
Direct mail
Call to action
Door hangers
Endorsements

Promotional materials + activities

Landing page
Leaflets - Flyers
External sources:
Presentations
Posters
Trade fairs/exhibitions
Traditional media

Competitor analysis

Collecting market research data enables an organisation to take action:
Competitors’ strengths + weaknesses
Assess the quality of the competition
Determine close + distant competitors
Reaction of competitors

Identify new product or service

Research data used to identify new products + services
Identify target markets
Identify product features
Promotion
Marketing mix

Impact of marketing on the success of travel + tourism organisations

The role of marketing in different travel + tourism organisations

Business aims

Increase profits
Increase market share
Launch new products
Develop new markets
Develop brand image

Marketing process

Market research
Marketing plan
Customer relationship
Evaluation
Analysis

Private business aims

Profitability
Increase market share
Sustainability
Respond to competition

Public organisation aims

Profitability
Customer service
Sustainability
Government criteria
Cost control
Education

SMART objectives

Specific
Measurable
Achievable
Relevant
Time-bound

What is a brand?

Logo
Image
Identity
Values
Reputation
Perception

Benefits of branding

Customer recognition
Customer loyalty
Confidence
Add value
Brand extension
Credibility
Attracts talent

Functional areas

Sales
Marketing
Human Resources
Finance
Operations
Information technology
Research + development
Administration

Mass markets

Large companies
High volumes – lower profits
Large marketing budget

Niche markets

Smaller specialist companies
Low volumes – higher profits
Small marketing budget

How marketing contributes to the success of travel + tourism organisations

Ansoff matrix

Market penetration
Market development
Product development
Diversification

Planning marketing

Push - Pull factors
Customer relationship management
B2B + B2C marketing

Impact of marketing

Attract customers
Customer spend
Customer retention
Customer loyalty
Organisational objectives
Brand development
Revenue + profits

Influences on marketing activity

External factors: PESTLE

Political
Economic
Social
Technological
Legal + ethical
Environment

PESTLE Political

Examples:
Civil unrest
International political situation
Terrorism

PESTLE Economic

Examples:
Recession
Cost of living crisis
Exchange rates
Interest rates
Tax

PESTLE Social

Examples:
Demographics
Social trends:
New experiences
Staycations
Health + wellbeing
Responsible travel - eco + sustainable

PESTLE Technology

Examples:
Social media
Websites
Apps
Transport

PESTLE Legal + ethical

Examples of laws:
Consumer protection
Consumer Rights
Sales of Goods
Health + Safety
Data Protection
Equal opportunities

Advertising standards
Codes of practice

PESTLE Environment

Examples:
Extreme weather
Natural disasters
Sustainability

Internal factors

Size of the organisation
Culture of the organisation
Resources
Budget

Size of the organisation

Larger T+T organisations are able to offer more products and services and market them with a large dedicated marketing team, who will specialise in different aspects.

Smaller organisations will compete with a more personalised customer service, offering niche products and services. They are likely to utilise social media as a cheaper platform.

Culture of the organisation

Vision
Values
Working practices
Ethos
Team

Budget

The financial position of company will larger determine the marketing budget and therefore its ability to promote its products and services.

Marketing department will review its cost effectiveness – measuring performance against targets set.

Size of budget will determine the marketing activities that they are able to do.

Resources

A marketing department will need resources in the form of technology and people.

Up to date websites and apps are a minimum for any T+T business.

Specialist marketing staff are increasingly important with such a wide array of advertising
Available – traditional, social media etc

Globalisation

Globalisation is the result of:
Reducing trade barriers between countries – free trade
Rising income in developed countries
A global outlook on life; holidays; education and work
Improved communication and transport

Globalisation

Changes in the business environment
All organisations need to be aware of their competition – domestic and international
. Monitor their websites and apps
. Review their promotional activities
. Keep up-to-date through industry trade shows and exhibitions

Globalisation

Benefits
. Increased market share + diversification
. Increased competition
. Business growth + increase in profits -
. New markets -
. Cater to customer needs in different countries

Globalisation

Things to be considered
Understand the politics, laws and culture in different countries
Exchange rates affect costs + prices
Maintaining consistent high standards around the world
Increased competition – review prices strategies + promotional mix
Creating the same experiences in different countries