REVIEW

UNIT 2 Marketing and Promotion

MARKETING

TARGET MARKET MARKETING MIX SWOT ANALYSIS DESTINATION LIFE CYCLE MARKET RESEARCH

motivation, product/service, strengths, exploration, involvement,

demographic, place, price, weaknesses, development, primary secondary presentation
geographic, promotion, opportunities, consolidation, stagnation, data data of data
psychographic people threats decline/rejuvenation

surveys, customer
questionnaires, records, line graph,
interviews, sales records, bar chart, pie
focus groups statistics chart, table

B2B PROMOTION B2C

ADVERTISING SPONSORSHIP FAIRS and EXHIBITIONS SALES PROMOTIONS POINT-OF-SALE MATERIAL

vouchers,
sport trade, press, coupons, brochures,
print broadcast outdoor digital events general
teams loyalty leaflets
public incentives

newspapers, billboards,
TV, radio, street furniture,
magazines, cinema
trade press public
transport

banner ads, SEO, SEA,

remarketing, websites,
pop-up ads, direct
content apps, social
pay-per- marketing
marketing media
click

SUMMARY: MARKETING and PROMOTION

Marketing helps a company to identify and analyse its customers and needs, create relevant products or
services and then promote them.
Let’s start with the target market, that is the potential people who could buy a product or service.
A target market can be classified into subgroups: the motivation for travel; the demographic group
they belong to, such as age, education, gender; the geographic location and, finally, the psychographic
elements like lifestyle and interests.
The principal elements of the marketing mix are the four Ps – product, price, place and promotion. To
these we can add an extra P – people – as they have a vital role in customer satisfaction in the tourism
industry.

A SWOT analysis is a tool used to analyse a company’s position with a view to future changes of
strategy. Strengths and weaknesses are internal factors and therefore can be controlled or changed by
the company. Opportunities and threats are external factors which are beyond its control.

A life cycle model of a tourist destination helps analyse what stage of development it is at in order
to then devise strategies to increase its popularity and appeal. There are six stages – exploration,
involvement, development, consolidation, stagnation and decline or rejuvenation – although not all
destinations will follow this model exactly.

Market research is the collection of data from two different sources. Primary data is collected
first hand from customers or potential customers for a specific objective through things like surveys,
questionnaires, interviews and focus groups. For this reason it provides extremely relevant data, but it
is expensive and time consuming. Secondary data uses existing information such as customer and sales
records within a company, or statistics from external sources like governments and trade organisations.
It is cheaper and quicker than primary data, but care must be taken to ensure it is up-to-date, accurate
and relevant to the needs of the company.
Data and statistics are often presented visually to make it easy and quick to understand and compare
results. The most common forms include line graphs, bar charts, pie charts and tables.

Promotion, the final P of the marketing mix, can be divided into B2C – business to consumer – when it
is aimed at the general public, and B2B – business to business – when it is directed at other businesses.
Let’s look at the five main components of promotion.

Firstly, advertising, perhaps the most common form. The choice of media available includes print, with
newspapers, magazines and trade press; broadcast which is TV, radio and cinema. Outdoor advertising
is billboards, posters and street furniture in places like main streets, stations, airports and on public
transport. Digital advertising includes banner ads, pop-up ads and search engine advertising on the
Internet. It also comprises the company’s own website, social media accounts, apps and activities like
search engine optimisation, content marketing and direct marketing used to increase the position and
visibility of the company and brand.

Sponsorship is when a company, usually a global brand, sponsors sports teams or major events like the
World Cup or the Olympics, although it can be done on a smaller and local level too.

Fairs and exhibitions give a company the chance to promote the business and services to other
companies in the trade, the press and to the general public, to make new contracts and learn about new
trends or developments.

Sales promotions are commonly used in the travel and tourism industry with vouchers, coupons, loyalty
incentives like air miles schemes for customers, and bonuses and free trips for travel agents.

Lastly, point-of-sale material is the brochures and leaflets that are available to potential customers at
travel agencies, tourist information centres and online.