Marketing Tourism

1. Marketing Tourism Hillary Jenkins, Otago Polytechnic

2. Marketing Concept ‘Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.’ (Chartered Institute of Marketing, UK)

3. The Traditional Marketing Mix • Set of controllable variables blended by organisations for selected market segments • The Price • Place (distribution) • Product • Promotion Queenstown

4. 4P’s of Marketing • Product • Design • Quality • Range • Brand name • Features • Price • List price • Discounts • Commissions • Surcharges • Extras The Marketing Mix • Place • Distribution channels • Methods of distribution • Coverage • Location • Promotion • Advertising • Sales promotion • Salesmanship • Publicity

5. Product Tourism products and services are designed for and continuously adapted to match changing needs, expectations and budget of the target market

6. Place Not only the location of the tourist attraction or facility but the location of points of sale that provide customers with access to tourist products eg. I-site, accommodation, cafe

7. Price • Used to achieve predetermined sales volume and revenue objectives • Price gives a product or service a perceived value in the eyes of the consumer • How would you use price to counteract demand exceeding supply?

8. Promotion • The most visible of the 4p’s • Promotional techniques aim to increase awareness and demand for products • http://nz.youtube.com/watch?v=gwTpijLCfrc&feature=related

9. Marketing Services • Tourism is a service. • Services differ from physical products, • This needs to be taken into account when marketing them

10. Characteristics of Services • Intangibility • Heterogeneity • Temporary ownership • Perishability • Inseparability

11. Intangibility • Not the physical portion (tangible) of the product • Performance or experience rendered by the service provider to the service consumer • Most tourism products are a mixture of tangible and intangible

12. Inseparability • Services are usually produced and consumed at the same time • Think of a restaurant meal • This can make it difficult to separate the provider of the service from the service itself.

13. Perishability • Services cannot be saved or stored as they expire during the simultaneous production and consumption process • Aircraft seat • Restaurant meal • Amusement park ride

14. Heterogeneity • Standardisation • Difficult to achieve in a people based service industry • Quality control plays an important part • What forms of standardization can you think of?

15. Ownership • Service customers usually only have access to or use a facility where a service is performed • Use of a hotel room for a holiday – you occupy the space only and have temporary use of the facilities

16. How Tourism Differs • Tourism is more supply-led than other services All ready have the product then research which market might be interested in purchasing it. • Dunedin the destination is already here who wants to visit. • Tourism product might involve the co-operation of several suppliers. e.g. Package holiday

17. How Tourism Differs • Tourism is a complex, extended product experience with no predictable critical evaluation point. Pre trip anticipation and post trip reflection While trips to the same destination may be the same different variables can make the trip different – and hard to evaluate against

18. How Tourism Differs • Tourism is a high-involvement, high-risk product to its consumers • Involves committing large sums of money to something reasonably unknown • Tourism is a product partly constituted by the dreams and fantasies of its customers. • Unlike banking and car repair, tourism is not consumed for rational, functional purposes.

19. How Tourism Differs • Tourism is a fragile industry susceptible to external forces beyond the control of its suppliers • Tourism organisations sometimes have to make rapid responses to crises in the form of product redesign, price reductions or promotional damage limitation.

20. 7 P’s of Tourism Marketing • Price • Place • Product • Promotion • People • Process • Physical Evidence

21. People • Know who your target market is • traveller or • tourist? • what do they expect? http://flickr.com/photos/wolfgangstaudt/2242014640

22. People - Employees • A tourism organisations most valuable resource • Physical appearance, behaviour, knowledge and attitude has a powerful impact on customers perception of the tourism product • Ensure uniform, grooming etc. conform to branding and target market

23. People - Employees • Ensure staff are trained to ensure the product is delivered in accordance with the marketing strategic plan. • Employees physically embody the product and are walking billboards from a promotional point of view – Zeithaml & Bitner (1996)

24. Process • Process is inseparable product • If any part of the process is found to be unsuitable by the consumer, it could result in a negative evaluation of the whole product.

25. Physical Evidence • Defined as the built environment owned and controlled by a tourism organisation • The tangible aspect of the tourism product • May be used to facilitate the service delivery process e.g. layout and signage • Communicates messages about quality, positioning and differentiation

26. Physical Evidence http://flickr.com/photos/jamespaullong/940934988/ Think about the layout, colours , furnishings, sound systems at an airport

27. Marketing Tourism • Product and service • Tangible and intangible • People led and operated • Market orientated