TOURISM MARKETING REVIEWER
While the first time at the restaurant
Lesson 1: Introduction to Tourism and Hospitality
Marketing
Unique Characteristics of the Tourism Industry:
Intangibility
• Tourism products cannot be touched,
smelled, tasted, felt, nor heard prior to
purchase. They cannot be subjected
to prior scrutiny. One cannot examine
nor test them before purchase, unlike
consumer products. A destination that
promises fresh air from its beaches or a
scenic view of the mountains cannot
send a sample. Consumers rely on
photographs of the place, comments
or reviews from those who have visited
the place or availed of the services,
and promises from the company itself.
The beauty of this scene can only be
appreciated when one is actually at
the destination. Looking at the
photograph will never equate to the
experience of having one's hair blown
by the wind, feeling the sun's
penetrating heat while basking in it,
and hearing the roar of a motorboat.
Therefore, word of mouth is a highly
effective means of promoting tourist
destinations.
Inseparability
• The tourism product cannot be
separated from the consumer. When
tourists avail of products and services,
they must personally go to where the
products are. Since what is being sold
is the experience, the product and the
consumer cannot be in two different
places; they must be in the same
place. A tourist who avails of airline
tickets needs to be physically present
inside the airplane to avail of the
product. Products cannot be delivered
to where the consumer is. It is the
consumer who goes to where the
product is to avail of the product.
Heterogeneity/Variability
• The tourism experience is likely to be
different depending on when the
product is availed, who one is with,
and how the service providers deliver
the service at the time of consumption.
One may have gone to the same
restaurant several times and have a
different dining experience each time.
may have been quiet, the second
time, one finds it to be noisy. There may
have been few customers during the
first time and a rowdy group of
teenagers during the second time,
hence, the variability of the tourism
product.
• This is the primary reason why
standardization of is crucial in the
tourism industry. Chain and franchise
establishments make it a point to
standardize the way they provide
products and services to address the
variability component of the industry.
Perishable
• The tourism product is one of the most
highly perishable of products.
Perishability as used in this context,
refers to not being able to forward
inventory to the next day. It does not
refer to food being spoiled and thrown
away. Products become perishable
when they can no longer be
consumed today even when no one
consumed them the day before, unlike
consumer products such as a pen. If
the pen was not sold today, it can still
be stored in a warehouse to be
available for sale the next day.
Seasonal
• Seasonality does not only refer to the
seasons of the year or the weather
conditions. It also refers to behavioral
patterns of the travel market. The
seasonality of the tourism product
hinders it from maximizing its profits all
year round. Hence, intensified
marketing during the lean season will
help increase demand for the product
This is also the reason most tourism
products, such as airlines and resorts,
have different rates throughout the
year. Such differences in rates help
manage capacity and yield to
maximize profitability.
Substitutable
• Competition in the tourism industry is
intensifying. With new destinations
emerging and competing in the global
marketplace, one destination can
easily be substituted for another
destination. When a new restaurant
 opens, the old favorites are relegated
as second choices. It is quite a
challenge to establish loyalty among
clients since there is a wide range of
product offerings to choose from. With
the many choices available, the
tourism product is highly substitutable.
However, identifying one's competitive
advantage and a unique selling
proposition may help make a tourism
product less substitutable.
Lack Of Ownership
• You can not own a service and you
can not store a service like you can
store a product. Services are used or
hired for a period of time.
• For example when you buy an
aeroplane ticket to fly to the USA, you
are buying a service which will start at
the beginning of the flight and finish at
the end of the flight. You can not take
the aeroplane flight home with you.
TOURISM AS A HIGH INVOLVEMENT PRODUCT:
• EXPENISVE PRODUCTS
• COMPLEX PRODUCTS(TRAVEL
PACKAGE)
• UNREPEATABLE NATURE( ONCE IN A LIFE
TIME)
Marketing plays an important role in the
purchase of tourism products. Because of the
aforementioned characteristics of the tourism
product, a marketing strategy needs to be
developed to make the product competitive in
a highly commercialized marketplace.
LESSON 2: TOURISM MARKETING
TOURISM MARKETING DEFINED:
❖ Philip Kotler et al. (2017) define
marketing as "the process by which
companies create value for customers
and build strong relationships in order
to capture value from the customers in
return.“
❖ Kotler, Bowens, and Makens (2010)
define marketing as the art and
science of “finding, retaining, and
growing profitable customers." This
definition paves the such as customer-
centered marketing and relationship
marketing, which have become
emerging trends in the study of
marketing. Finding, retaining, and
growing profitable customers involve
strategic planning to ensure customer
satisfaction and building of customer
loyalty.
MARKETING AS A MANAGEMENT PROCESS:
• MARKETING AS A MANAGEMENT
PROCESS- With the advent of
technology, the provision for a
marketing information system enables
the organization to compile an
updated set of information about its
customers, competitors, and the
organization's capability and
effectiveness.
• Marketing Planning- This involves an
analysis of the marketing environment
in relation to the potentials of one's
business. It also involves the setting up
of objectives and an evaluation of the
milestones that the company has
reached. The creation of marketing
strategies will help increase business by
obtaining the best fit between the
company's resources and its target
market position.
• Planning Tactical Campaigns- This step
ensures that practical and realistic
tactical campaigns are conducted in
support of the comprehensive
marketing strategy.
• Marketing Operations-This process
involves the challenging part of
implementing the planned strategic
and tactical campaigns by
coordinating with all stakeholders,
finetuning the marketing mix as they
unfold, and ensuring that activities are
conducted as planned.
• Monitoring and Control.- This involves
the ongoing process of evaluating
sales data and financial performance
versus marketing activities conducted.
It also includes the handling of
customer feedback and complaints (if
any) and coordination with what the
staff has to say about the marketing
campaigns. Finally, it includes being
aware of what the competitors are
doing.
CORE MARKETING FUNCTIONS:
• Marketing Information Management-
entails gathering information about
customers to better serve their needs
and improve decision-making.
• Financing - involves planning to ensure
that resources are available to
maintain and improve the business.
• Pricing- ensures that the value and
cost of goods and services offered to
customers will be at the level that
customers are willing to pay.
• Promotion- prepares the various
promotional strategies that will enable
the products to be introduced and
sold to the customers.
• Product/Service Management -
involves designing, developing,
maintaining, improving, and acquiring
products and services to meet the
needs of the customers.
• Distribution - involves bringing the
products and services to the customers
in the best way possible.
• Selling - is the ultimate measure of
marketing success. Strategies on
following up the sale, closing the sale,
and making a repeat sale are crucial
tasks of marketing.
THE MARKETING MIX:
• Kotler (2010) says that marketing
facilitates the exchange process and
the development of relationships by
carefully examining the needs and
wants of consumers, developing a
product or service that satisfies these
needs, offering it at a certain price,
making it available through a
particular place or channel of
distribution, and developing a program
of promotion to create awareness and
interest.
• The product or service is what the
company is offering to satisfy a
consumer's want or need. The price is
the value that the seller puts on the
product or service.
• This includes the cost of the product
and the profit the seller wishes to
make.
• The price is also the amount a
customer has to pay in exchange for
the product or service. The place is the
means by which the product or service
reaches the consumer.
• Promotion is the strategic plan by
which customers are informed about
the product or service and its value.
Promotions also encourage customers
to purchase the product or service. A
well-planned and executed marketing
mix will enable marketers to move their
products or services successfully to the
consumers. In Morrison (2019), there
are several other Ps to represent
relevant functions of tourism marketing
such as People, Packaging, and
Programming.
LESSON 3: THE TOURIST MARKET AND
SEGMENTATION
Definition of a Market:
• A market is a set of actual and
potential buyers of a product. These
buyers share a particular need or what
that can be satisfied through
exchange relationship.
• The tourism product is not for all. The
tourism industry aims to target a
specific set of individuals. It is for a
particular set of buyers.
Different Market Levels:
• Total Market – is the sum of the actual
and potential customers of product.
• Potential Market – consists of those
consumers that profess some interest in
a defined product.
• Available Market – consists of those
consumers who have the interest and
the necessary income to visit a
destination, along with no constraints.
• Served Market – is part of the available
market. The destination management
can decide to pursue only well-
defined segments or limited target.
• Penetrated Market – consists of the set
of consumers who actually purchased
the tourist products. It must be clear
that this is only a fraction of the total
population.
Target Marketing
There are three steps to target marketing:
• Market Segmentation
• Market Targeting
• Market Positioning
MARKETING SEGMENTATION:
• A market is comprised of varied profiles
and characteristics that can be further
segregated.
 • Market segmentation is dividing the
market into distinct groups who might
require separate products and/ or
marketing mixes.
• A market segment is a subgroup of the
total consumer market who share
similar characteristics and needs
relevant to the purchase of a product,
service, or experience.
Characteristics of a Market Segment
Six characteristics of a segment (Lumsdon)
(1997):
• Identifiable-. The people who comprise the
segment can be located and identified such
that targeting them would be easy
• Cohesive- The consumers should be part of a
whole whose specific qualities are common to
all.
• Measurable-The marketer should be able to
estimate the size and potential spending of the
members of the market segment.
• Accessible- The members of the segment
should be accessible by the marketing efforts
and promotional activities to be conducted. If
they are difficult to reach, efforts to reach out
to the specific segment might be futile.
• Substantial- Segments should be large in order
to be substantial. If the segment is small, it
should have a high spending capability to
make a significant impact on the business's
bottom line.
• Actionable- The company has enough
resources and commitment to enable effective
penetration of the identified segment to ensure
effective positioning
Variables for Market Segmentation:
1. Geographic Segmentation is to group
potential tourism customers based on
their location. It is considered as the
oldest and simplest basis for market
segmentation.
– Nations
– States
– Regions
– Countries
– Cities
– Neighborhood
– Barangay
– Towns
2. Demographic Segmentation is to group
the consumers according to variables
that define them in an objective, easily
measurably way.
– Age
– Life Cycle
– Gender
– Income
– Occupation
– Education
– Religion
– Race
3. Psychographic Segmentation –
involves grouping people on how they
live, their priorities, their opinions, their
attitudes and their interests. Personal
lifestyle and personality. With similar
hobbies, sports and musical interests.
– Social Class
– Lifestyle
– Personality
4. Behavioral Segmentation – also known
as Product-related Segmentation is
multifaceted and aims to group
consumers according to their
relationship to the product.
– Special Occasions
– Benefits Sought
– Usage Rate
– User Status
– Loyalty Status
– Buyer Readiness
5. Techno-graphic Segmentation – with the use
of Internet and World Wide Web.
– Between users and non-users of
technology in searching
information for technology
MARKET TARGETING:
• Market Targeting is evaluating each
segment’s attractiveness and selecting
one or more of these market segments
in which to operate one’s business.
Factors to consider in Targeting:
• Segment Size – refers to the current
sales volume, growth rate, and high
profit margin.
• Attractiveness – refers to the potential
impact of the segment to the
company. One that is not saturated
and has few aggressive would be
structurally attractive.
• Company objectives and availability
of resources – refers to the main for its
decision making and the available
resources the company will use to
make its objectives a reality.
Three Market Coverage Strategies:
• Undifferentiated Marketing
• Differentiated Marketing
• Concentrated Marketing
Factors to consider in choosing market
coverage strategy:
• Company’s Resources – This refers to
how much money and resources the
company has which can be allocated
to marketing. It the company has
limited resources, it is logical to use
concentrated marketing.
• Degree of Product Homogeneity – If
products are standardized and
identical, it is more advisable to go for
undifferentiated or concentrated
marketing.
• Market Homogeneity – If there is a
diverse market, differentiated
marketing is advisable. If the market
has a lot of similarities, undifferentiated
marketing may be used.
• Competitor’s Strategy – It is important
to assess the strategy competitors are
using so that the correct strategy can
be implemented to counter their
marketing efforts. If competition is
doing undifferentiated marketing, it
would be advantageous to do
differentiated or concentrated
marketing. If competitors are doing
segmentation, concentrated
marketing is a must.
MARKET POSITIONING:
The three positioning concepts will help
reinforce the idea of market position:
• Unique Selling Proposition (USP) is a
term used to identify what makes the
product or service different from
others.
• A USP may occur due to the product’s
physical attributes, added services,
personnel, location or image.
• Competitive advantage is the
product’s advantage over competitors
which is gained by offering greater
value either by offering lower prices or
providing more benefits to justify higher
prices.
• Top of mind is the highest level of recall
that a brand receives. It means, the
brand occupies the top spot in a
consumer’s mind. The ultimate top of
mind level a brand can reach is when
it becomes synonymous to the generic.
New and Emerging Markets:
On the demand side, growth of new markets is
fueled by:
• Economic growth in major source
markets
• An increase in disposable leisure time
and a longer life expectancy with
sufficient health to travel
• Changes in living conditions especially
city dwellers becoming more inclined
to engage in tourism
• Rising educational levels and
increased access to information,
stimulating curiosity.
• Increasing international integration of
life.
New and Emerging Markets:
On the supply side, growth of new markets are
fueled by:
• The development of and investment in
infrastructure
• Continuous tourism product
development
• The elimination of legal limitations on
and practical obstacles to travel.
Types of Market:
Some of the Philippines’ emerging markets;
Family
Three types based on decision maker:
• Joint-decision making families
• Husband making the decision and
• Wife making the decision.
Seniors
• Baby Boomers VS Silent Generation
• With retirement benefits and children-
dependent
Youth
Growth of travel participants among the youth
market that is fuelled by several
factors:
• Increased participation in higher
education
• Increased travel budgets (parental
contribution, savings and work)
• Work and travel combinations
• The rise of low-cost / budget airlines
• Shorter employment contracts leading
to significant gaps in employment
• The global rise of the internet culture
• Growth of independent travel
guidebooks
MICE
• Characterized by high per capita
expenditure
LESSON 4: TOURISM AND CONSUMER BEHAVIOR
CONSUMER BEHAVIOR
❖ Is the process and activities people
engage in when searching for,
selecting, purchasing, using,
evaluating, and disposing products
and services to satisfy their needs and
desires.
FACTORS THAT INFLUENCE CONSUMER
BEHAVIOR:
1.Motivations
❖ Motivations are inner drives that make
people take a specific plan of action
to satisfy their needs.
❖ Hudson (2008) defines needs as the
gap between what customers have
and what they would like to have
seen as the force that arouses
motivation.
❖ occupation, family prestige and value
❖ Push & Pull Factors- The push factors
are those that make you want to travel
while the pull factors are those that
affect where you would want to go.
❖ Crompton (1979) identifies nine motives
which are divided into push and pull
factors. The push factors are the socio-
psychological factors while the pull
factors are classified as cultural
motives.
❖
2.Culture
❖ Defines culture as the collective
mental programming of the human
mind which distinguishes one group of
people from another.
❖ Dimensions of Culture:
Power Distance
Individualism/ collectivism
Masculinity and Femininity
Uncertainty avoidance
Long-term and short-term orientation
Indulgence and restraint
3.Age and Gender
❖ Likes and preferences of consumers
are normally dependent on their ages.
Travel packages are normally tailor-fit
depending on the generation of the
target market.
❖ Gender also influences consumer
behavior.
4. Social Class
❖ Social class is one’s position within
society and is determined by factors
such as income, wealth, education,
of home/ neighborhood.
❖ Social class has commonly been
referred to into the Philippines through
letters – A, B, C, D, E market.
5.Lifestyle
❖ A lifestyle is a person’s pattern of living
as expressed in one’s activities,
interests and opinions.
❖ Lifestyles are by no means universal
since it also interacts with culture,
economic situation and personality.
6. Life Cycle
❖ The family life cycle model (Pearce,
1993) suggests that the travel patterns
and destinations differ as people move
on through the life cycle.
❖ Life cycle refers to the stages an
individual goes through in their
lifetime.
7. Reference Groups
❖ Reference groups are known to be a
set of people who have a direct or
indirect influence on other people’s
attitudes or behavior.
❖ Reference groups are extremely
important in selling tourism products,
because the product is intangible,
word of mouth plays an important
trigger for purchase decision.
8. Personality and Self Concept
❖ Personality refers to distinguishing
psychological characteristics that
lead to relatively consistent and
enduring responses to the
environment. This has great influence
over one’s buying behavior.
❖ A consumer’s self-concept refers to
their personal mental picture.
THE BUYER DECISION-MAKING PROCESS:
CUSTOMER SATISFACTION THROUGH SERVICE
QUALITY:
Benefits of Service Quality:
❖ Customer Retention
❖ Avoidance of Price Competition
❖ Retention of Good Employees
❖ Reduction of Costs
Service Quality:
Relationship of Service Quality, Customer
Satisfaction and Word of Mouth
ORGANIZATIONAL BEHAVIOR:
The purchase decision process in organizations
is more complex than that of individual
purchases.
➢ problem recognition
➢ General need specification
➢ Product specification
➢ Supplier Search
➢ Proposal Solicitation
➢ Supplier Selection
➢ Order Routine Specification
➢ Performance Review
TYPOLOGY OF TOURISTS:
1.Plogs’s Tourist Motivation Model
❖ Psychocentric – derived from “psyche”
or self-centered” where an individual
centre thoughts or concerns on the
small problems, areas of life.
❖ Travelers tend to be conservative in
their travel patterns, preferring “safe
and familiar” destinations and often
taking many return trips.
❖ Type of tourists as “repeaters”
❖ Allocentric – where the derivation of
the root “allo” means “varied in form”.
❖ Adventurous, and motivated to travel
or discover new destinations. Rarely
return to the same place.
❖ Type of tourists as “wanderers”.
2. Cohen’s Four Classification of Tourists
❖ Organized Mass Tourist
 ❖ Individual Mass Tourist
❖ Explorer
❖ Drifter
3.Stewart’s Model of Holiday taking
❖ Bubble travelers
❖ Idealized-experience seekers
❖ Wide-horizon travelers
❖ Total Immersers
❖ A good communicator identifies who
they are talking to before crafting the
message and deciding on the best
way to transmit it.
❖ Decoding is the process of transforming
the sender’s message into the
receiver’s thought.
Shannon and Weaver’s Mathematical Model:

The Non-user:

1. ex-users who stopped using products/

services for various reasons,

2. Customers who are aware of the

product/ service but need to be
persuaded to purchase.
❖ Describe communication as linear
3. Those who are not aware of the
process
product/ service’s existence.
David Berlo’s SMCR Model of Communication:

LESSON 5: TOURISM MARKETING AND THE

COMMUNICATION PROCESS

MARKETING AND COMMUNICATION:

❖ The marketing process seeks to inform,

persuade and bring consumers into
action. Information and persuasion are
mainly achieved through
communication.
❖ Communication is defined as
transmitting, giving or exchanging of
information using oral or written means.
❖ Hence, marketing and communication
go hand in hand.
Harold Lasswell’s SMCRE Basic Model of
Communication:
❖ The communication process begins
when the source select words, symbols,
pictures and the like to represent the
message that will be delivered to the
receiver(s).
❖ The message van be verbal or non-
verbal, oral or written, or in symbolic
form.
❖ Encoding is the process by which
thoughts are expressed in the form of
words, symbols, pictures and gestures.
❖
ROLE OF OPINION LEADERS:
The Two-Step Flow Model
❖ According to Katz and Lazarsfeld, “the
flow of media messages from radio
and print to opinion leaders and then
the leaders lead the messages to
lesser active users in the population.
❖ Opinion leaders are selective as they
pass the messages to the group.
Opinion leaders are usually added to
the information; shaping the context
by which information is received.
ROLE OF MARKETING COMMUNICATION:
❖ Communication and its relationship to
tourist satisfaction
❖ Communication is influence.
❖ Marketing is all about communicating
the best products, services, and ideas
have to offer. A lot of marketing
situations necessitate a cohesive and
effective communication plan.
 ❖ Word of mouth is communication at its
finest level.

Communication Problems-The failure in

communication may be due to several
factors such as:

❖ Language Barriers
❖ Varied connotation of words, signs and
symbols
❖ Cultural Differences
❖ Faulty Word Choices.
❖ Mistranslations.

GOAL OF MARKETING COMMUNICATION:

❖ Is to achieve common ground

between the sender and the receiver.