AND

MARKETING IMPORTANCE OF MARKETING

• Is a process that seeks to inform, COMMUNICATION
persuade and bring consumers into
action. Information and persuasion
are mainly achieved through
communication.

COMMUNICATION
• Is simply the act of transferring
information from one place, person
or group to another.
MARKETING COMMUNICATION PROCESS
MARKETING COMMUNICATION
• Are those techniques that the
company or a business individual
uses to convey promotional
messages about their products and
services. Experts of marketing
communication design different
types of persuasive communication The diagram explains various components
and send it to the target audience. − first two components are ‘sender’ and
‘receiver’. Second two components are
‘message’ and ‘media.’ The other features
of this model are ‘encoding,’ ‘decoding,’
MARKETING COMMUNICATION TOOLS ‘response,’ and ‘feedback.’ And, the last
• Pamphlets feature is ‘noise.’ Noise is random and other
competing messages that more often
• Brochures
interfere with the communication. This
• Emails
model emphasizes on the major key factors
• Advertisements
that play an important role in effective
• Websites
communication. It is imperative to know the
• Sales Promotions and Campaign market response and your target audience
• Exhibitions before you send any message.
• Personal Selling
• Press Release
 AND

TYPES OF COMMUNICATION MODEL

COMMUNICATION THEORY
ROLE OF MARKETING COMMUNICATIONS
 AND

COMMUNICATION PROBLEMS TOURISM PRODUCT TYPES

• Language Barriers • Convenience Tourism Product
• Varied connotation of words, signals • Shopping Tourism Product
and symbols • Unsought Tourism Product
• Cultural differences • Industrial Tourism Product
• Faulty word choices • Capital Item
• Mistranslations

PRODUCT LEVELS
TOURISM AND HOSPITALITY PRODUCTS
• A group of selected components or
elements brought together in a
‘bundle’ to satisfy needs and wants

KEY PLAYERS IN THE TOURISM INDUSTRY

PRODUCT LIFE CYCLE

COMPONENTS OF TOURISM PRODUCTS

• ATTRACTION
• ACCESSIBILITY
• ACCOMODATION
• IMAGE
• PRICE
TO PREVENT DECLINE
• Market Modification
• Product Modification
• Marketing Mix Modification
 AND

DESTINATION LIFE CYCLE (BUTLER 1980) STEPS IN TOURISM PRODUCT DEVELOPMENT

1. Research the Market
2. Match the Product with Market
3. Assess the Destination
4. Understand the Stakeholder Role
5. Product Building
6. Marketing and Promotion
7. Providing Human and Technical
Resource

PRICE
• Is the amount of money charged for
a good or service? The only
Marketing mix element that
produces revenue. Changing too
PRODUCT DEVELOPMENT much chases away potential
customers, charging too little cuts
• Product development should be an revenue.
ongoing process to ensure
profitability and sustain interest on
the product line.
FACTORS TO CONSIDER WHEN SETTING
PRICE
NEW PRODUCT DEVELOPMENT PROCESS

CREATION OF TOURISM PRODUCT

 AND

GENERAL PRICING APPROACH MARKET RECOVERY

• Price can represent a significant
• Cost-based Pricing
incentive to encourage visitors to
• Break-even Analysis and Target
offset their fears and to return. It can
Profit Pricing
also be done through price changes.
• Buyer-based Pricing (Value-based)
• Competition-based Pricing

PRICE CHANGES
NEW PRODUCT PRICING STRATEGIES • Initiating price cuts
• Initiating price increases
• Prestige Pricing
• Buyer reactions to price changes
• Market-skimming pricing
• Competitor reactions to price
• Marketing-penetration pricing
changes
• Product-bundle Pricing
• Responding to price changes

EXISTING-PRODUCT PRICING STRATEGIES PROMOTION

- Price-adjustment strategies
• Has been defined as the
• Volume Discounts coordination of all seller-initiated
• Discounts based on time of efforts to set up channels of
purchase information and persuasion to sell
• Discriminatory Pricing goods and services or promote an
• Revenue Management idea (Belch 2008)
• Psychological Pricing
• Promotional Pricing
• Value Pricing
PROMOTION MIX
• It is a company’s total marketing
communications program and it
REVENUE MANAGEMENT consists of a specific blend of:
o Advertising
• It is concerned with optimising o Direct Marketing
financial results and is especially o Personal selling
popular in industries like hospitality, o Sales promotion
which must contend with high fixed o Public relations
costs and a perishable inventory. It
is a systematic approach to
matching demand for services with
an appropriate supply in order to
maximize revenues (Shoemaker et
al 2007)
 AND

ADVERTISING DIRECT MARKETING

• OBJECTIVES • NATURE
o To inform o Nonpublic
o To persuade o Immediate
o To remind o Customized
• NATURE o Interactive
o Reach many buyers • ADVANTAGES
o Repeat message many times o Precision targeting
o Impersonal o Personalized messages
o Expensive o Privacy
o Faster sales
o Variety of packaging options
o Less competition from other
GOALS OF HOSPITALITY media content
• Tangibilize the service element so o Immediate results
the reader mentally grasp what is o Measurability
offered
• Promise a benefit that can be
delivered and/or provide solutions to PERSONAL SELLING
problems
• Differentiate the property from that of • NATURE
the competition o Personal interaction
• Have positive effects on employees o Relationship building
who must execute the promises o Most expensive promo tool
• Capitalize on word of mouth

TASK OF A SALESPERSON
TYPES OF ADVERTISING EXECUTION • Prospecting
• Slice of Life • Targeting
• Lifestyle • Communicating
• Fantasy • Selling
• Mood or Image • Servicing
• Musical • Information Gathering
• Personality • Allocating
• Technical expertise
• Scientific evidence
• Testimonials evidence SALES PROCESS
 AND

SALES PROMOTION SALES PROMOTION PROCESS

• OBJECTIVES
o Increased short-term sales
o Help build long term market
share
o Entice consumers to try a
new product
o Lure consumers away from
competitors
o Hold and reward loyal PUBLIC RELATIONS
customers
o Building stronger customer • NATURE
relations o Very Believable
o Obtaining new accounts o Dramatize a company or
• NATURE product
o Wide assortment of Tools o Underutilized
o Rewards quick response • OBJECTIVE
o Efforts short-lived o Building Product awareness
• TARGET o Creating interest
o Consumer o Providing information
o Trade intermediaries o Stimulating demand
o Sales force o Reinforcing the brand
• MAJOR ACTIVITIES
o Press Relations
o Product Publicity
FACTORS TO CONSIDER IN SETTING UP A o Corporate Communications
SALES PROMOTIONAL PLAN o Lobbying
o Counseling
• Objectives of the campaign
• Type of market to be tapped
• Competition CONTRIBUTION OF PR TO MARKETING
• Cost and effectiveness of each tool
• Assist in the launch of new product
• Assist in repositioning a mature
product
COMMON SALES PROMOTION TOOLS • Build up interest in a product
a) Samples category
b) Coupons • Influence specific target groups
c) Packages • Defend products that have
d) Premiums encountered public problems
e) Patronage rewards
f) Point of purchase
g) Contests and games
 AND

PUBLIC RELATIONS PROCESS DISTRIBUTION CHANNEL AND ITS FUNCTIONS

MAJOR TOOLS IN MARKETING PR

• Publications
• Events
• News
• Speeches
• Public service activities
• Identity media

DISTRIBUTION CHANNEL
• A set of independent organizations
involved in the process of making a
product or service available to the
consumer or business user. It moves
goods from producers to consumers,
it overcomes the major time, place
and possession gaps that separate
goods and services from those who
would use them.

TOURISM DISTRIBUTION CHANNEL

• It is an operating structure, system,
or linkage of various combinations of
organizations through which a
producer of travel products
describes, sells, or confirms travel
arrangements to the buyer.
 AND

SELECTING CHANNEL MEMBERS

1) Knowing the needs of your customer
2) Attracting channel members
3) Studying economic feasibility
4) Maintaining control

BUSINESS LOCATION

FRANCHISING
• Is a method of doing business by
which a franchisee is granted the
right to engage in offering, selling or
distributing goods and services
under a marketing format which is
designed by the franchisor (Kotler
2008)