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Strategic Marketing For Tourism & Hospitality - 799416
Strategic Marketing For Tourism & Hospitality - 799416
Hanoi Open University Faculty of Tourism
Lecturer: Tran Nu Ngoc Anh
Strategic Marketing for Tourism & Hospitality
Course Objectives
Understand strategic marketing concepts and strategic marketing
tools in the tourism industry
Ability to establish a strategic marketing plan for tourism organizations
Ability to make presentation and to communicate the strategic
marketing terms in English
Content
Chapter 1: Introduction to Marketing and Tourism Marketing
Chapter 2: Introduction to strategic marketing
Chapter 3: Macro marketing environment analysis
Chapter 4: Micro marketing environment analysis
Chapter 5: Market analysis
Chapter 6: Pricing
Chapter 7: Positioning the Product
Chapter 8: Advertising and Publicity
Chapter 9: Effective sales of travel products and services
Chapter 10: Implementing the marketing plan
Strategic Marketing for Tourism & Hospitality
If students do not do the course project,
he/she will be not allowed to take the final exam.
Strategic Marketing for Tourism & Hospitality
Course Project
Establish a strategic marketing plan for a tourism organization that you
know well, including following compulsory requirements:
1. Introduction to the organization
2. Macro environment analysis for the selected organization
3. The analysis of the organization
4. The competitor analysis (Analyze with at least 2 main competitors)
5. The market analysis and questionnaire designed
6. Mission statement, Goals and Objectives
7. Marketing strategies (9Ps)
8. Marketing tactics positioning statement
the cover of print ad (A4 size)
9. Marketing tactics letter persuading customers to buy services, sales promotions …
10. Implementing the marketing plan
Pre s entation & Powe r Po int - Slide s
Chapte r 1
Introduc tion to Marketing & Touris m Marketing
Marketing Research
Marketing mix - 4P
4P of Marketing
+Product
+Place
+Promotion
+Price
Chapter 1: Introduction to Marketing and Tourism Marketing
+ Product
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Chapter 1: Introduction to Marketing and Tourism Marketing
Doanh sè
Thêi gian
H×nh thµnh T¨ng trëng (PT) Trëng thµnh Suy tho¸i
vµ b∙o hßa
Chapter 1: Introduction to Marketing and Tourism Marketing
+ Place
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gian
Th«ng tin
Chapter 1: Introduction to Marketing and Tourism Marketing
+ Place
Kªnh trùc tuyÕn (MC)
Kªnh ng¾n (MRC)
Nhµ s¶n Ngêi tiªu
xuÊt ng Kªnh dµi (MWRC) dïng ng
Ngêi
êi lµm êi mua
Ngêi
marketing Kªnh dµi ®Çy ®ñ b¸n lÎ
b¸n (C)
(M) (MJWRC) bu«n (R)
M«i
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(J)
Chapter 1: Introduction to Marketing and Tourism
Marketing
Tourism Services Research
Intangibility
Inseparability
Variability
Perish ability
No ownership
"4S" Model in USA (SEA, SUN, SHOP, SEX or SAND)
3H Model in USA (HERITAGE, HOSPITALITY,
HONESTY)
Chapter 1: Introduction to Marketing & Tourism Marketing
What is SERVICE ?
Service Marketing
=
Product Marketing Products - Customers
= Services
Products - Consumers
Touris m Marketing
=
Products - Touris ts
Servic es
touris ts ’ expec tations
bus ines s obje ctives
Chapter 1: Introduction to Marketing and Tourism Marketing
+People
+Product
+Place +Packaging
+Promotion +Positioning
+Price +Programming
+Partnership
Chapter 1: Introduction to Marketing and Tourism Marketing
Introduction to organization
(presentation 1)
Main content
1. Strategic Marketing Planning
2. The Mission Statement
3. Objectives, strategies, tactics
4. SWOT matrix in Tourism Industry
5. Discussions and Practices
Chapter 2: Introduction to Strategic Marketing
Strategic Planning
S trate g ic planning is the manag e rial pro c e s s o f de ve lo ping and ke e ping an o ptimal fit
be twe e n the de plo yme nt o f an o rg anizatio n’s re s o urc e s and the o ppo rtunitie s in its
c hang ing e nviro nme nt in o rde r to e s tablis h its o bje c tive s , fo rmulate its s trate g ie s and
tac tic s (to g uide its marke ting e ffo rts ).
Chapter 2: Introduction to Strategic Marketing
•Promotion
• Introduction •High quality programs
•Product design
& Sales •Pricing to services •Good relationship
•Advertisement •Internal & external •Excellent amenities with customers
•Publicity Sales and facilities
•Training
Chapter 2: Introduction to Strategic Marketing
S te p 1 S te p 2
Situational Analys is Targe t marke t
S te p 6 S te p 3
Controlling & Evaluating Pro duc t Po s itio ning
S te p 5 S te p 4
Implementing Obje c tive s ,
s trategie s & tac tic s
Strategic Marketing for Tourism & Hospitality
Answer 3 questions
1. what do we do ?
2. ho w do we do it?
3. fo r who m we do it ?
Chapter 2: Introduction to Strategic Marketing
How
Strategies do you want to do it ?
Tactics
Which tool(s) will you use ?
Chapter 2: Introduction to Strategic Marketing
Macro Environment Micro Environment
Strategic Marketing Plan for Tourism Organizations
Chapter 2: Introduction to Strategic Marketing
Features S W O T
1. Low staff turn – over
2. 30% average occupancy
3. Government reduced work sheet to 5 days per week
4. ASEAN conference planned
5. Staff can speak Vietnamese, French or Russian
6. Owners take 70% profit
7. Hotel near Ho Chi Minh Museum
Chapter 2: Introduction to Strategic Marketing
Features S W O T
1. Internationally known city
2. A World Heritage Site
3. High quality environment
4. Lack of visitor management strategy
5. World Heritage Site anniversary of Halong Bay
6. Lake Water Park’s (in Hanoi) attraction
7. Aggressive marketing of other areas
Chapter 2: Introduction to Strategic Marketing
To be continued
Exercies & homework
Features S W O T
8. Lack of local products in souvenir shops
9. Professional tour guides encourage visitors stay
longer and see more
10. Signs poorly understood by the public
11. Various kinds of public transportation with low fees
12. Poor entertainment facilities
13. Romantic atmosphere
14. High additional income from tourists
15. Many beautiful islands and islets
Chapter 2: Introduction to Strategic Marketing
Part 1: General ideas MainPart 2: Analyzing the Macro Business
content
Environment
1. Concept of Marketing 1. Elements of Macro Environment
Environment 2. Macro Environment Analysis
2. Marketing Environment 2.1. Environmental Opportunities
Elements + Attractiveness
3. Impacts of Marketing + Success Probability
Environment to business
2.2. Environmental Threats
strategies of Tourism and
Hospitality Organizations Seriousness
Probability of Occurrence
3. How to determine Market Share
Chapter 3: Analyzing the Macro Marketing Environment
Marketing
Suppliers Customers
Intermediaries
Competitors
Publics
Mic ro Env iro nm e nt
Macro environment
analysis
Opportunities Opportunities)
Threats
Attractiveness. Seriousness.
Success Probability Probability of Occurrence.
Chapter 3: Analyzing the Macro Marketing Environment
Attractiveness
Success Probability
Macro environment analysis for the selected organization
(presentation 2)
Describe the Micro Environment that affects Tourism and Hospitality
Organizations’ ability to serve their customers.
Apply SWOT Matrix to determine both strengths and weaknesses to
the Operation of Tourism and Hospitality Organizations
Be familiar with Benchmarking Concept
Practise to analyse a Tourism or Hospitality Organization and its
competitors
Criteria to determine the company’s competitive position
Analyse current situation of a tourism company to discuss
appropriated strategies.
Chapte r 4
Analyzing the Mic ro Bus ine s s Enviro nme nt
Main content
1. Describe elements of the Micro Environment
2. Apply SWOT Matrix to analyse the Micro Environment
(Product, Competitive & markets)
3. Introduction to Benchmarking
4. Strategic competitive Positions
5. Practice: Analyzing Macro and Micro Marketing
Environment of a Tourism or Hospitality Organization
Chapter 4: Analyzing the Micro Business Environment
Company
Marketing
Suppliers Customers
Intermediaries
Competitors
Publics
Majo r ac to rs
in the c o m p any ’s m ic ro e nv iro nm e nt
Chapter 4: Analyzing the Micro Business Environment
Weaknesses
A process of
analyzing Competitors’ strengths and weaknesses
+Time & duration to analize
+Selection of competitors Company location
Business area(s)
Products & service provided
Price
Target market
+Competitors’ information gathering
Business objectives, strategies & tactics.
Strengths +weaknesses
Customer behaviour
Chapter 4: Analyzing the Micro Business Environment
benchmarkeing
Be nc hmarking Pro c e s s
(PDCA - Plan, Do, Co ntro l, Adjus t)
Planning
Adjustment Do
Controlling
Chapter 4: Analyzing the Micro Business Environment
Price + Quality
Ex: Sofitel Ex: Hanoi Ex: mini hotels Ex:
Metropole Daewoo Hotel in Hanoi Gouman hotel
Hanoi Hotel Hanoi Toserco
Chapter 4: Analyzing the Micro Business Environment
Be aware of market segmentation concept for Tourism and
Hospitality organizations.
Criteria to divide the market of a Tourism and Hospitality
organization into market segments and determine target market(s).
Apply market research to operate Tourism and Hospitality
organizations effectively and efficiently.
Practise to build up an effective questionnaire for Tourism and
Hospitality organizations.
Ability to select market segments in the Tourism Industry
Chapte r 5
Analyzing Marke ts
Main content
1. Market segmentation Concept
2. Steps in segmentation, targeting, and positioning
3. Criteria of market segmentation in the Tourism Industry.
4. Evaluating Market Segments
5. Selecting market segments
6. Marketing Research
7. Practice to establish Questionnaire for Tourism and Hospitality organizatio
8. Group discussion: Determine market segments of a 5 star hotel in
Hanoi or a famous tourist area in Vietnam and choose its target
markets. Give reasons why your group made your decision.
9. Practice: Design a questionnaire for a Tourism and Hospitality Organizatio
that you know.
Chapter 5: Analyzing Markets
Market: a set of all actual and potential buyers of a product
Market segmentation: dividing a market into distinct groups of buyers who
might require separate products and/or marketing mixes
A market segment: a distinct group of buyers who might require separate
products and/or marketing mixes
A target market: a market segment that a company concentrates its
marketing efforts to draw.
Market targeting: evaluating each segment’s attractiveness and selecting
one or more of the market segments
Market positioning: developing a competitive positioning for the product
and an appropriate marketing mix
Chapter 5: Analyzing Markets
Market segmentation
1. Identify bases for segmenting the market
2. Develop profiles of resulting segments
Market targeting
3. Develop measures of segment attractiveness
4. Select the target segment(s)
Market positioning
5. Develop positioning for each target segment
6. Develop marketing mix for each target segment
Chapter 5: Analyzing Markets
Channel of Distribution Direct marketing, indirect marketing or both
Chapter 5: Analyzing Markets
Fair share
Company supply ability ⇔ Market supply ability
Market Share
Company demand ability ⇔ Market demand ability
Chapter 5: Analyzing Markets
Undifferentiated Marketing Strategy
The company’s marketing mix Market
Differentiated Marketing Strategy
The company’s marketing mix No1 Target market No1
The company’s marketing mix No2 Target market No2
The company’s marketing mix No3 Target market No3
Concentrated Marketing Strategy
Target market No1
The company’s marketing mix Target market No2
Target market No3
Chapter 5: Analyzing Markets
Questionaire
Part 1: Introduction
Headline, reasons, answering guideline
Part 2: Questions
Geographic questions
Subject questions
Part 3: Conclusions
Thank & wishes
The market analysis and questionnaire designed
presentation 5
Be aware of factors that have influences upon pricing
Ability to use basic pricing methods flexibly in the Tourism
Business.
Classify rate concept and remember pricing terminologies in the
tourism industry
Practise to calculate room rates in different methods
Ability to use discounts effectively.
Chapte r 6
Pric ing S trate g ie s
Main content
1. Pricing decisions in the Tourism Industry
2. Basic pricing methods in the Tourism Industry
3. Room rate and tour package rate calculation
4. Room Rate Terminologies
5. Sales techniques, using pricing policies
6. Rate Reduction Situations Discounts
7. Practice: Calculate room rates and package rate, using learnt
pricing methods
8. Group Discussion: Give at least 02 problems related to rates
to deal with.
Chapter 6: Pricing Strategies
Principles OF PRICING
1. Consumer perception
2. Overall Marketing Policies & Objectives
3. Product life cycles
4. Demand & Supply and price elasticity of demand
5. The structure of the market & the company’s position in
the marketplace
6. Costs of the products
7. Inputs & outputs
8. The economy & government involvement in the market
Chapter 6: Pricing Strategies
1. Cost based pricing
Product Cost Price Selling Price Value Customers
2. Competitor based pricing
3. Market driven pricing
Customers Value Selling Price Cost Price Product
4. Competitive tendering
The suppliers or contractors sealed tenders from a number
of companies
Chapter 6: Pricing Strategies
1. Skimming pricing
High prices to maximize profits
2. Market penetration
Low prices to gain market entry and share
Pricing strategies for new products Price Promotion Cost
Skimming Fast High High
Slow High Low
Penetration Fast Low High
Slow Low Low
Chapter 6: Pricing Strategies
estimated hotel incomes – other incomes
Room rate =
estimated occupied rooms
Notes:
Estimated hotel incomes = Operating expenses + taxes & insurance +
depreciation (standard rates) + reasonable return on present fair value..
Other incomes = total income from sources other than room rentals
Estimated occupied rooms = Number of available rooms x occupancy rate x time
2. The Building Cost Method of Estimating Rate = rule of thumb
1USD room rate equivalent to 1.000 USD building costs.
Mission statement, Goals and Objectives
presentation 6
1. Number of tourists
2. Itinerary of the tour: Days? Nights
3. Activities included?
4. Service items:
Transportations
Lodging
F & B
Sightseeing fees
Insurance
Guide wages
Administration fees
Others (if included)
Chapter 6: Pricing Strategies
1. Up - Selling Technique
The escalating method
The middle choice method
The step down method
2. Yield Management
High Demand maximizing product prices
Low Demand maximizing the number of tourists
Chapter 6: Pricing Strategies
Be aware of Product Positioning Concept in the Tourism
Industry
The principles of product positioning
Positioning Strategies in the Tourism Industry
Practise to design positioning statements for Tourism
Organizations.
Chapte r 7
Po s itio ning the Pro duc t
Main content
1. Positioning Concept in the Tourism Industry
2. Principles to Product positioning
3. Steps to design positioning statements
4. Considerations before designing positioning statements
(using USP Unique Selling Points)
5. Positioning Strategies
6. Examples of positioning statements in the Tourism Industry.
7. Practice: Design positioning statements for Tourism
organizations in Vietnam.
Chapter 7:Positioning the Product
Concept
A product’s position is the way the product is defined by
consumers on important attributes - the place the
product occupies in consumers' minds relative to
competing products.
Principles to Pro duc t po s itio ning
1. The position of a single product in relation to competing
products (its similarities & differences).
2. Gather strengths & weaknesses of the competitors.
3. Prospective customers’ perceptions of that product’s
position
4. Confirm mission statement of the company
Chapter 7:Positioning the Product
Documenting
Deciding
Target markets’ perceptions
Delivery Designing
Attractiveness and differences
Keep your promises
Chapter 7:Positioning the Product
Simplicity
Consistent viewpoint shared by all employees of the company
Reliability
Emotional appeals
Positioning Strategies
Be aware of promotion concepts, promotional tools and criteria to
choose promotional tools in the Tourism Industry.
Dis ting uis h ad v e rtis ing c o nc e p t and p ub lic ity c o nc e p t
Und e rs tand the im p o rtanc e o f Ad v e rtis ing in the To uris m
Ind us try and s tud y ad v e rtis ing to o ls that are e ffe c tiv e to
the To uris m Ind us try
Prac tis e to d e s ig n p rint ad v e rtis ing fo r the To uris m
Ind us try
Und e rs tand the ro le s o f PR and Pub lic ity in the To uris m
Ind us try
Chapte r 8
Adve rtis ing and Public ity
Main content
1. Promotion concept and classification
2. Direct information
3. Public Relations – PR in the Tourism Industry
4. Advertising in the Tourism Industry
5. Group discussion
+ Advertising tools are appropriated with the Vietnam Tourism.
+ Give at least 2 situations that hotels or Tourism Organizations
have to enforce advertising and PR. Then, choose appropriated
tools for each situation.
Chapter 8: Advertising and Publicity
Promotion in Tourism
Direct Public Relations
Direct
Advertising Sales
information
information
(PR)
4. Action: Le ad to action
accessible, comfortable, convenience, ...
Chapter 8: Advertising and Publicity
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Chapter 8: Advertising and Publicity
Direct information
Tourism centers Tourism offices (abroad), hotels,
transportation companies,
entertainment & recreation areas
Fairs, displays , etc.
Word of mouth Public telephone, internet, etc.
Service quality ⇒ tourist expectations
Print advertising Mails …
Leaflets, brochures, tend cards, etc.
Chapter 8: Advertising and Publicity
Public Relations - PR
Internal Relations External Relations
Press,
Employees Customers authorities, Customers Local people
intermediarie
s
PR activities: famtrips (familiarizations trips), show room, trade fair, …
Chapter 8: Advertising and Publicity
Advertising objectives
Establishing Objectives Budgeting
Evaluating & Selecting content &
Adjusting Advertsing Tools
Chapter 8: Advertising and Publicity
Inform Ad + Create primary demand
+ Product guideline
+ Service descriptions
+ Introduction to product application
+ announce changes.
Persuasive Ad Create selective demand
Comparative Ad Make customers change their mind
Remind Ad Make customers remember services even
they are not using these regularly
Chapter 8: Advertising and Publicity
1. Positioning statement
USPs of your company, benefits?
Which USPs would your target market like? Why?
Which USPs would be not used by your competitors?
Write a new one.
4. Broadcast Advertising
Tivi, radio
Announcer: Hi, Tom Bodet for Motel 6 with some relief for the business traveller or anyone
on the road trying like the dickens to make a buck. Well, money doesn’t grow on trees and
I’m probably not the first person who’s told you that but maybe I can help anyway.
Why not stay at Motel 6 and save some of that money? Cause for around 22 bucks, the
lowest price of any national chain; you will get a clean, comfortable room, free T.V, movies,
local calls, and long distance ones without a motel service charge.
No, we don’t have a swinging disco or a mood lounge with maroon leather chairs and an
aquarium where you can entertain your clients, but that’s O.K. I got a better idea. Take the
money you save and meet that client in town. Beside, they probably know all the best
places to go anyway. Let them tell you what they know best and you do what’s best for
business.
Call 505 891 6161 for reservation at Motel 6. I’m Tom Bodet for Motel 6 ... and we’ll
leave the light on for you.
Chapter 8: Advertising and Publicity
Le arning Objectives
Be aware of Sales Concepts in the Tourism Industry.
Distinguish the differences between Sales of Tourism
Products and Sales of other Products
Study effective sales steps in the Tourism Industry
Ability to overcome difficulties to sign the contract in
the Tourism Industry
Chapte r 9
Effe c tive S ale s o f Trave l Pro duc t & S e rvic e
Main content
Notes :
3W:+What
+When
+Which way
2Q: +Quantity
+Quality
Sales in the Tourism industry: ins ide s ale s & o uts ide s ale s
Chapter 9: Effective Sales of Travel Product & Service
Inside sales
- Understand products and services’benefits and features.
- Update tatics of the company
- Keys to success verbal and non - verbal communication
Verbal Communication
Use simple and precise words
Use polite words. Ex: Please, thank you, sir, madam, excuse me
Try to use an appropriate tone of voice
Use an appropriate volume
Use an appropriate speed
Pronounce words clearly
Remember and use guests’names
Use positive statements. Ex: “Let me see what I can do”
If you do not speak the same language as the guest, try to find a
staff member who does.
Chapter 9: Effective Sales of Travel Product & Service
Inside sales
Non - Ve rbal Com m unication
Be aware of body posture
Make eye contact
Smile as often as possible
Be aware of negative habits. Ex: tapping fingers, scratching,
etc.
Use gestures or draw to clarify
Be aware of the distance between guests and employees.
- Sales techniques
+Up - Selling Technique
+Yield - Management
+Overbooking - Sales
Chapter 9: Effective Sales of Travel Product & Service
Inside sales
Te n c o mmandme nts o f Human Re latio ns
1. Speak to People (There is nothing as nice as a cheerful word of greeting)
2. Smile at People (It takes 45 muscles to frown, only 15 to smile)
3. Call people by name (The sweet music to anyone’s ears is the sound of his own name)
4. friendly and Helpful (It will develop harmony)
5. cordial (Speak and act as i everything you do were a genuine pleasure)
6. Genuinely interested in people (Do it with warmth and sincerity)
7. generous with praise, cautious with criticism (to avoid negative impact)
8. considerate with the feeling of others (It will be much appreciated)
9. thoughful to the opinion of others (There are 3 sides to a controversy: yours the other
fellow’s and the right one)
10. alert to give service (What counts most in life is what we do for others).
Chapter 9: Effective Sales of Travel Product & Service
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Chapter 9: Effective Sales of Travel Product & Service
Listing
Selecting
Writing
Contacting
Infor.
Collecting
Chapter 9: Effective Sales of Travel Product & Service
Appointment making
Telephone (indirect) Direct
Chapter 9: Effective Sales of Travel Product & Service
Product presentation
Product presentation
Product presentation
Grooming
Do not let customers suspect who you are
Do no t applaus e lo o s e nly
Do no t applaus e s tro ng ly
Do no t whis pe r
Do no t s pe ak lo undly
Chapter 9: Effective Sales of Travel Product & Service
Solutions
+Acknowledging demands
+Emphasis benefits
+Confirm demands and consult on services.
+Up - Selling Techniques.
+Additonal sales
Chapter 9: Effective Sales of Travel Product & Service
Listen to customers
Sympathize with customers
Clarify the problem
Explain, suggest and consult
Close the transaction
Chapter 9: Effective Sales of Travel Product & Service
Appropriate place
List solutions
Study the content of Marketing Plan Implementation.
Ability to set an effective marketing budget
Learn controling and evaluating methods of the
Implementation Process in the Tourism Industry.
Ability to design a Marketing Plan for Tourism
Organizations in different scales
Chapte r 10
Imple me nting the Marke ting Plan
Main content
Budget setting
Charac te rs o f a g o o d Marke ting budg e t
+ Show how much money to spend to implement the total
makreting plan and how the total should be
+ create revenues that exceed the amount invested in marketing
+ Have a c o nting e nc y fund (10 – 15% of the marketing budget,
reserved for unanticipated increase in marketing expenses)
Budg e t - s e tting me tho ds
1. The Arbitrary - and - Affordable Method
2. The Percentage - of - Sales Method
3. Competitive - Parity Method
4. The Objective - and Task Method
Chapter 10: Implementing the Marketing Plan
Measurement Methods
1. Total Sales Figure
2. Sales/ Objectives Variance
3. Market - Share Variance
4. Marketing Cost and Profitability
5. Efficiency Ratios: CPI, CPR, ROI
Lecturer: Tran Nu Ngoc Anh, Mba.