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Sim - Thc6 Tourism & Hosp Marketing
Sim - Thc6 Tourism & Hosp Marketing
Sim - Thc6 Tourism & Hosp Marketing
UNIVERSITY OF MINDANAO
College of Hospitality Education
BS Tourism Program
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College of Hospitality Education
2nd Floor, HRM Building
Matina Campus, Davao City
Telefax: (082)297-7024
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College of Hospitality Education
2nd Floor, HRM Building
Matina Campus, Davao City
Telefax: (082)297-7024
platforms.
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CC’s Voice: Hello future tourism professionals! Welcome to this course THC 6-
Tourism and Hospitality Marketing. By now, I am confident that you have visualized
yourself already as marketing professionals.
CO To be in tourism marketing, you have to deal with one of the major jobs which
includes market segmentation, consumer behavior, and the communication process.
After which, you will create marketing plan using traditional and digital methods such
as brochures and internet platforms. Moreover, you have to submit yourself for
competency assessment NC2 certification in Tourism Promotions and Services to
complete this course.
Let us begin!
Big Picture
Big Picture in Focus: ULOa. Explain tourism marketing key concepts which
include market segmentation, consumer behavior, and the communication
process.
Metalanguage
In this section, the most essential terms relevant to the study of the controlling
function and to demonstrate ULOa will be operationally defined to establish a
common frame of reference as to how the texts work in your chosen field or career.
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You will encounter these terms as we go through the study of the controlling
function. Please refer to these definitions in case you will encounter difficulty in the in
understanding of tourism marketing.
Tourism products- A tourism product is the sum of the physical and psychological
experience got by tourist during their traveling to the destination. It incorporates
combination of different services like tourist attraction, transport, accommodation and
of entertainment which provide tourist satisfaction. For example food,
drinks, travel tickets, hotel rooms, souvenirs, postcards. Tourism product is the total
experience of the visitors. It includes everything and every person they come into
contact with during their stay.
Destination marketing-
Destination marketing is the process of communicating with potential visitors to
influence their destination preference, intention to travel and ultimately their
final destination and product choices.
B2C- is a marketing approach that sell products from the business itself to the
customers directly thus called business-to-customer. This marketing approach are
what is normally seen as business for example the airline itsel sells its seats directly
to the customer, hotels sell rooms directly to the guest, etc.
B2B- is marketing approach that sell products or services to another business
expectedly wholesalers thus called business-to-business. In tourism, for example a
travel service provider such as an airline is selling its seats to travel agencies. This is
also true to hotels selling its rooms through a travel agency and etc.
Variability- means the quality of experience of the service depends who, when and where it
is provided. For example, spa is dependent on the therapist, a coffee experience depends on
its ambiance, etc.
Seasonality- refers to the peak and low season of the tourism demand which is usually
affected by weather, political issues and diseases.
Please proceed immediately to the “Essential Knowledge” part since the first lesson
is also definition of essential terms.
Essential Knowledge
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To perform the aforesaid big picture (unit learning outcomes) for the first three
(3) weeks of the course, you need to fully understand the following essential
knowledge that will be laid down in the succeeding pages. Please note that you are
not limited to exclusively refer to these resources. Thus, you are expected to utilize
other books, research articles and other resources that are available in the online
university’s library.
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marketing operations of the establishment. In this, the resources of the company are
placed in order to eliminate confusion to ensure attainment of marketing objectives. It
can be noticed from the marketing definitions above, that the common factor among
all the marketing definition is meeting customer needs and wants and customer
retention.
Tourism marketing has a process, one of it is to look for its market, and these
are the tourist. Philippines is undeniably rich in terms of natural destinations. It is in
itself, a product. However, finding the right tourist is a challenge to most marketers in
order to produce desired profit for the tour operators and eventually higher tax for the
government. Below is a diagram that shows market segmentation.
http://marketingde-blog-iosports.blogspot.com/2018/03/market-segmentation-of-nascar.html
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travelers. The knowledge of various tourism product per se, is very important in
tourism marketing because it is not for all according to Badilla (2015). Market
segmentation involves identification of the prospective market into identifiable
groups. In this way, tour package and other tourism related products can be sold
more effectively if efforts are concentrated towards those groups who are most
potential. According to Middleton (2018), market segmentation is the process
whereby the knowledge of customer groups will be use to select for particular needs
and wants. The market strategy will determine the exact target and its attempt to
reach only those markets. The target market is the segment of a total potential
market to which the tourist attraction would be most salable. Target market are
categorized geographically, demographically, and on and so forth. Every attraction
can appeal to a multitude of market segments, for example a destination for
backpackers may also appeal to retirees because they might have the same strength
and stamina because of advance wellness and medication nowadays, in this, and
the market segment can overlap with a great deal. The challenge is catering the
overlapping market needs and ensure satisfaction. In tourism, the tour manager
must look at market segments and determines which one offer the promising
potential for his/her service.
Price Segmentation. The market may also be divided according to price ranges
such as those who want to take a low priced vacation, those who may take a
moderately priced vacation and etc. However, price range has the ability to
communicate to the tourists the quality expectation of a product along with the
producer's image for example a hotel with very cheap price may appear having a
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The table below will highlight the characteristics of the source of markets that might
be tapped for tourism. Looking at the categories, you can choose the right market
that suites the tourism product- could it be a resort, souvenirs, food, accommodation,
etc. For example: Senior citizens are the booming market because of early
retirement program of the government, ask yourself “what might these seniors want
in their leisure time: a spa, hiking or sightseeing’”, by then the research process will
start.
https://www.slideshare.net/guest28c6d/brand-strategy-for-cox-kings-1-3023375
INDIA World’s 2nd most populous country Ranked 5th in the number of Until today, most of the
64% of its population in the billionaires of 122. It is expected to Indian market relies on
working group reach 225 billionaires by 2022. traditional media, that is,
Urban population is forecasted to Outbound travel growth is print.
increase by 2030 increasing by 6.7% between 2011 – Since cash is more
Ambitious & restless preferred, bookings are
Exctiement & entertainment made via travel agencies
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Hongkong Very sensitive, skeptical, react fast High volume of flights to and from They still haven’t
and willing to pay as long as they Phil. forgotten the hostage-
are given a good reason to spend. They are focusing on new activities taking incident.
such as sports (marathon,
basketball, cycling, hiking diving
and cruising).
They also uplift Phil by developing
TV programs promoting Phil.
Indonesia Largest economy in the ASEAN. English is widely spoken. Prefer travel agents to
Backpacking is gaining popularity Prefer short-haul trips (2-4 nights) book trips.
among the young. with majority of spending is on Relatively low volumes of
Prefer to holiday in places with a shopping. direct flights between
natural setting and to experience Rapidly growing middle & upper Indonesia & Phil.
the local culture. class
No travel tax upon exit
The country is a melting pot of
cultures that also boast of stunning
natural wonders.
Lots of affordable commodities and
accommodation for backpackers.
Internet & social media methods of
promoting.
Russia Need to feel important. Average length of stay is 11 nights. Difficulty in speaking
Give trust to partners and don’t Big spenders. English.
accept mistakes. Prefers to use cash than credit No direct flights.
cards. In the Phil, there is little
Charter flights are being or none Russian
implemented. speaking staff.
Some of the emerging markets in the Phil. includes the family market, the senior
market, the youth market the MICE market and business market.
Family market characteristics: joint decision making between husband and wife,
Filipino markets make use of the widest range of information sources; therefore,
promotional materials should be made available early. Husband dominant families
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spend the largest amount of money on vacations while wife dominant families spend
less. The challenge is how to satisfy both in terms of the activities when they travel
together?
Senior market characteristics: this market is also called the silver market. A
tourism campaign called SKI encourages the elderly to go on vacation to Spend Kids
Inheritance, thus called the SKI. This is a trip for personal health reason &
retirement. The senior market nowadays are healthier, wealthier and more active
compared in the previous generations. In this case, facilities and services that appeal
to the senior market may be developed for establishments. This is a trip for personal
health reason & retirement. Come to think of your activity to suit them,
Youth Market: Backpacking is the in thing. This travel idea was influenced by
western habit. Be prepared to their expectations of adventure.
Now, that you have in mind the type of market and their characteristics, let us
proceed on how to communicate with them. This topic will discuss how your market
will process your promotions and advertisements.
Communication Models.
Communications is a process which includes the sender, message, and receiver.
The sender refers to the communicator that generates the message and conveys it
to the receiver. Sender is the source and the one who starts the communication. In
this course, the sender are the tourism establishments while the receiver are the
tourists. The message refers to the idea, information including the view, fact, feeling,
etc. that is released by the sender and is then intended to be received further, for
example, the description and photos of a relaxing destination. The illustration below
will tell how the communication process works and the medium used.
Source: https://www.thoughtco.com/what-is-communication-process-
1689767
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Source:https://www.thoughtco.com/what-is-communication-1689877
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Self-Help: You can also refer to the sources below to help you
further understand the lesson:
Let’s Check.
Now that you know the basic concepts of marketing, tet us try to check your
understanding by answering the following discussion questions:
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Let’s Analyze
Activity 1: Research from the trip advisor at least 6 blogs indicating vacation
feedbacks about Davao City, positive or negative. Observe proper sourcing.
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
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____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
Activity 2. Consider that you are on tour or if not, recall the past travel experience
that you have local or international. Itemize your observation such as activity, food
preference, accommodation choices of the following market segments: Family
travelers, couple travelers, youth travelers and senior markets. Complete the matrix
to present your observations.
Preference
Type of tourist Food Accomodation Activities
Family
Couple
Youth
Seniors
1. _________________________________________________________.
_______________________________________________.
2. ________________________________________________________
_______________________________________________.
3. _________________________________________________________.
_______________________________________________.
4. ________________________________________________________
_______________________________________________.
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5. ________________________________________________________
_______________________________________________.
In a Nutshell.
Your Turn:
1.______________________________________________________________________
2.______________________________________________________________________
3. ______________________________________________________________________
4.______________________________________________________________________
5.______________________________________________________________________
Q & A List
Do you have any questions for clarification about the topic? Write it here.
Ex: What kind of promotion would be most effective?
Your Turn:
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Q1: ___________________________________________________
Q2:___________________________________________________
Q3: __________________________________________________
KEYWORDS:
Big Picture
Metalanguage
In this section, the most essential terms relevant to the study of the controlling
function and to demonstrate P’s of marketing will be operationally defined to
establish a common frame of reference as to how the texts work in your chosen field
or career. You will encounter these terms as we go through the study of the
controlling function. Please refer to these definitions in case you will encounter
difficulty in the in understanding of tourism marketing.
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Product- is anything that can be offered to the market for consumption to satisfy a
want or a need. Operationally, this term is use to refer to destinations and tourism
related activities.
Core Product- what the buyer is really buying.
Price is the amount of money charged or exchanged for a service or goods.
Penetration Pricing- charging a low price initially to reach the mass market.
Status Quo pricing- a pricing that often occurs base on competitors’ price.
Advertising- it is one of the means used to motivate people to patronize certain
products.
Sales promotion- a short term inducement of value offered to arouse interest in
buying a goods or service.
Public relations- a form of promotions designed to favorably influence attitudes
toward an organization, its products and policies. Its purpose is to maintain a
favorable image.
Promotion- refers to the set up channels of information and persuasion to sell
goods and services .
Sales Promotion- is a direct inducement that offers extra value or incentive when
buying the product, for example a Mabuhay Miles for frequent flyers.
Tourism product is anything that attracts such as site and sights, nature
destinations, events and activities, sports, accommodation, transportation, dining
and entertainment.
Essential Knowledge
The P’s of marketing is also known as the 4P’s or ‘marketing mix’. The 4ps
are so called marketing mix because it is a combination of marketing tools such as
product, price, promotion and place that the firm uses to pursue its marketing
objectives in the target market".
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The PRODUCT
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The PRICE
Price is the money exchanged for the products and services rendered. Price may
take in many terms like the fare for riding taxi, professional fee for lawyers,
commissions for sales and many more. The pricing of goods and services may
depend on the following:
objectives of imposing a price
target return of investments or;
pricing to maximize the profit. Pricing a tourism products such as a package
tour will depend also on the following: cost, buyer and competition, these
are called cost-based approach, buyer-based approach & competition-based
approach.
Cost-based pricing is a pricing method in which a fixed sum or a percentage of
the total cost is added (as income or profit) to the cost of the product to arrive at its
selling price. This type of pricing is dependent on how high or how low are the
individual cost of tourism products for example hotel and airline rates, i.e., the lower
the hotel rate, the lower is the package tour, etc.Buyer-based approach are
prices charged base on the buyers/ or the tourist willingness to pay. For example:
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Product: Coffee
Self-service food outlet P50 pesos
Pricing the product is one of the key factors in the success of any business
ventures. Elements of the price competitiveness include being consistent and
accurate. These are the factors that ensure distributors to consistently value your
products. Therefore, understanding the components of your products will create an
impact. For example, in package tours, it is ideal to understand your tour suppliers
pricing because it will affect your pricing as well. Key pricing factors. In determining
the rate for your product, you need to consider your operating costs, profit margin
and distribution network. Operating costs include both fixed and variable costs.
Fixed costs. This cost remains the same regardless of the level of sales, for
example, building rent; machinery; and insurances. Variable costs- includes for
example wages, gas, electricity, cleaning, maintenance, repairs; materials used in
production, stationery, linen, food, petrol, marketing including research,
advertisements, promotions, brochures, consumer or trade events, familiarizations
for industry or media and travel costs. Fam tours, media exposures and trade events
are an example of public relations that entails expenses. It is imperative to calculate
the profit margin to ensure you obtain a profit while conducting your promotions.
Checking what your competitors are offering and determine which of your products
can sustain a higher profit margin and which are not. Most of the time, using a
distribution network to sell a product can improve sales and profitability than sell their
product directly to consumers. Pricing factors. Competition is also to be considered
in pricing the product; it needs to be studied to find out what your competitors are
charging. Usually, this will serve as the maximum rate at which your product can be
sold. Pricing is also affected by demand. The higher the demand, the higher is the
price; thus, hotel rates, for example, are expensive on peak season because of the
demand. Market demands vs rate. Consider what can be added to your product to
improve sales without sacrificing profit, for example, offering fruits in the season
rather than imported ones. Target markets. Determine which markets you intend to
deal – local, domestic, international. Research your target market in relation to
product needs, price sensitivity, length of stay and disposable income. Seasonality.
High and low seasons affect your rates. In most businesses, there are two different
rates: the nett rate and the retail rate in which the latter is also referred to as the
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gross rate, rack rate or door rate. Clearly mark your rate when issuing your rates to
distribution partners with applicable validity dates, which means, for example, the
domestic airline ticket of P500 pesos is up to the end of the month only. Nett
Rate=operating costs + your profit margin. This type of rate is calculated by adding
together all the fixed and variable costs of operating your business and the profit
margin that you wish to make per sale. In this situation, the nett rate is the absolute
minimum you could sell your product for and still make a profit; it means further that
any amount lower than that means its losing, for example, the price of the package
tour is 2,000 per pax nett rate, it cannot be sold to 1,900 or lower, however,
increasing the profit margin means you have provided an allowance for huggling
(Filipino style) or lowering the price base on the market competition. Retail rate
means nett rate plus distribution (commission) costs. The retail rate can be achieved
after establishing the nett rate first. Then you can factor in the costs of using
distributors to sell your product. When dealing directly with customers (that is, the
general public), use the retail rate. The retail rate is the amount the customer pays
and should be consistent across the entire distribution network. For example, when
an airline company publish the rate as P500 pesos until the end of the month, the
distributor cannot go beyond it. However, the channel (travel agency) may earn from
the commissions paid by the airline. Industry standards for commissions paid from
the retail rate for the traditional distributor is 10% -30% for agents who sell directly to
customers. Commission levels for online travel sites vary, depending on how the site
is operated, so make sure you do your research, before establishing a distribution
deal with online partners. Costing a tour package. The items to be considered in tour
costing, although some of it is optional will be based on the itinerary like destinations,
air travel, local transportation, lodging, sightseeing expenses and some others
miscellaneous depending on the demand and trend. The above-mentioned items will
become the components of your tour cost.
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Source: http://www.travelonline.ph
The PROMOTION
Now that you already have a product and it already has a price, you are ready
to promote it. Promotion is the coordination of all seller-initiated efforts to set up
channels of information and persuasion to sell goods and services. It is the
marketing communication techniques to inform, create awareness, attempt to
persuade and reinforce the buying behavior of customers. Developing Promotional
plan. In developing a promotional plan, the analysis of the market will tell what the
market wants, for example, British vacationers it may be sunshine and beaches;
Germans it may be friendly, local people, etc. After taking the important factors and
comparing the product to the competition, a campaign theme can be developed, for
example, comparing package tour A & B both going to Camiguin but of different rate.
The theme of the package should consist of factors and should be a better job than
the competition; this is referred to as the unique selling proposition (USP) or, more
simply, the unique selling point. The skills in combining promotional mix comes in;
these are called promotional mix. Promotional mix. This is the methods that can be
used to get our message across however each tool varies in cost, the selectivity of
use, and ability to convey the message; for example, the newspaper is cheaper, but
it is not widely used by the Millenials being your target market. Moreover, the internet
is efficient; however, it is not accessible to further areas with no internet access. The
use of promotional mix must be well presented in the marketing plan because this
would entail a big budget. The promotional mix is a term that refers to the
combination of advertisement, public relations, sales promotions and personal
selling. These elements are often combined in selling tour package or a tourist
destination, for instance. Travel videos. Videos, viewed in the comfort of one's
home, can be an effective sales tool; however, not all areas can see the video
because of laptop or gadget issues. In videos, promotional pieces can be repeated,
and the noise level is low compared to TV ads. The color and sound was proven to
captivate one's attention while the initial cost is high it makes for an effective sales
technique. Brochures. Brochures, pamphlets, maps, and directories. They can be
promotional, informational, and directional. Brochures should contain the following
information: logo; description, accessibility to the area; a map; address with phone
number and contact person for more information; nearby attractions and items of
interest to the visitor; transportation information. The most important part of the
brochure is the cover. It's the part that most people read. To attract attention improve
the cover, color and format to get the reader into your message. The cover should
contain: the name/title of the product itself, location; the selling message and
consumer benefit. After that is to put the cover photo, captions are the best-read part
of the brochure. Make sure that captions convince well of the product personality and
the unique features. Brochures has photographs like pictures of guests enjoying the
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co-op, advertising for example airlines will promote their next destinations major
attractions.
Source: https://courses.lumenlearning.com/wmopen-introbusiness/chapter/promotion-integrated-marketing-communication-imc/
The PLACE
business to business sales. This requires a booth to display the products, such as
travel brochures. The investment involve are space rental of the booth, electricity,
booth amenities, presentation allowance of the sales representatives, and the cost of
brochures, catalog and handouts. Below is the photo in a travel expo. This is an
example of a place where the various destinations are sold either direct to the
travelers themselves or to a distribution channel.
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Source: https://www.ttrweekly.com/site/2020/03/natas-cancels-travel-fair-in-may/
Self-Help: You can also refer to the sources below to help you further
understand the lesson:
3.Market Segmentation
http://marketingde-blog-iosports.blogspot.com/2018/03/market-segmentation-of-nascar.html
4.More, G.
Segmentation of tourist
https://www.slideshare.net/guest28c6d/brand-strategy-for-cox-kings-1-3023375b9
Let’s Check
Now that you know the basic concepts of marketing, let us try to check your
understanding by answering the following questions:
Activity 1: Identification
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________1. is anything that can be offered to the market for consumption to satisfy
a want or a need. Operationally, this term is use to refer to destinations and tourism
related activities.
________2. This refers to what the buyer is really buying.
________3. It is the amount of money charged or exchanged for a service or goods.
________4. It is the strategy of charging a low price initially to reach the mass
market.
________5. a pricing that often occurs base on competitors’ price.
________6. It is used to motivate people to patronize certain products.
________7. It is a short term inducement of value offered to arouse interest in
buying a goods or service.
________8. It refer to the form of promotions designed to favorably influence
attitudes toward an organization, its products and policies. Its purpose is to maintain
a favorable image.
________9. It refers to the set up channels of information and persuasion to sell
goods and services .
________10. It refers to the direct inducement that offers extra value or incentive
Let’s Analyze:
when buying the product, for example a Mabuhay Miles for frequent flyers.
Activity 1: Research 5 activities offered to couple with kids on vacation.
Get the guest feedback to such activity.
Your Turn:
Activity:_____________________ Guest feedback: __________________
Activity:_____________________ Guest feedback: __________________
Activity:_____________________ Guest feedback: __________________
Activity:_____________________ Guest feedback: __________________
Activity:_____________________ Guest feedback: __________________
Your Turn:
Name & location of establishment _____________Guest feedback: ___________
Name & location of establishment _____________Guest feedback: ___________
Name & location of establishment _____________Guest feedback: ___________
Activity 3:
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Research a 3 Honeymoon Package and list its inclusions. Compare and contrast
the inclusions and so with the price. Write the lessons your learn from the
comparison. Get the website of your source.
Your Turn
Honeymoon Package A
Honeymoon Package B
Honeymoon Package C
As I compare the 3
packages, it came to my
attention that:
a.
b.
c.
Activity 4: Compare and contrast the marketing tools below and decide which of
those you will use in the Spring Resort located in Davao de Oro (Comval).
TELEVISION 1 1
2 2
Magazines 1 1
2 2
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Activity 5: Download the “Its More Fun in the Phil video. Write down 10 names of
the destinations and its location (city/region) included there.
1. _______________________________________
2. _______________________________________
3. _______________________________________
4. _______________________________________
5. _______________________________________
6. _______________________________________
7. _______________________________________
8. _______________________________________
9. _______________________________________
10. _______________________________________
Indicate the website address of your source: _______
Nutshell
This unit highlights the following:
Ex: 1. To be effective, marketing should combine the 4ps to reach the target
market.
Your Turn:
1.______________________________________________________________________
2.______________________________________________________________________
3. ______________________________________________________________________
4.______________________________________________________________________
5.______________________________________________________________________
Q & A List
Do you have any questions for clarification about the topic? Write it here.
Ex: In what way tourism products differs from one country to another?
Your Turn:
Q1: ___________________________________________________
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Q2:___________________________________________________
Q3: __________________________________________________
KEYWORDS
Product Advertising
Core Product Sales promotion
Price Public relations
Penetration Pricing Promotion
Status Quo pricing Sales Promotion
Big Picture:
Metalanguage
Brand- is a mixture of attributes, tangible or intangible that creates value and
influence, just like commodities, a destination has a brand.
Identity- refers to all of the unique attributes that define a destination such as the
name, logo, tagline, dress code, etc.
Brand Image- refers to how the brand is perceived by the target audience. Tourist
ideas and feelings about the destination.
Social media networking- is the process by which people network with those they
know and those they are meeting for the first time on social media sites.
Perception- everything people associate with a brand.
Tagline or Slogan- the condensed slogan that typically accompanies the
company/product/destination that captures the essence of a brand.
Blogging/Blogs- is a contraction of the word ‘weblog’. It is writing or sharing content
on the website on a regular basis. It is comprised of words, videos, images and its
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combination. It is done with the intention of attracting and providing current issues to
the target viewers.
Real-time- is an actual time during which a process or event occurs.
Engagement rate- is how much time people interact with the content for example in
the internet.
Social listening- is about recognizing or being alerted to certain key events as they
happen – such as a customer patronage, likes and complaint. It’s establishing a
baseline and monitoring for when things deviate from it, using social listening to
understand why. It is a detailed analysis of your audience, what they care about, and
where they discuss such things. It’s about uncovering and aggregating all the
information you’re missing if you only count likes and mentions, Surico (2020).
Accordingly, it is important because it will alert the marketer before an issue takes
place. It will assist in offering a quick fix to satisfy a single customer, you can solve
the problem at the root and eliminate it going forward. But it’s not just about solving
problems. Social listening offers information you can apply to any aspect of brand
operations.
Essential Knowledge
Digital Marketing
The widespread internet adoption and use of electronic media help facilitate
e-commerce worldwide as cited by Badilla (2016). It is one channel that cannot be
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Social Media is considered the tool. Today, this is considered to have a great
influence to the crowd by listening to what they say online then improving what one
offers. From this point, one can measure the market pulse and has a great tendency
to influence them, this is called social listening. Badilla (2016) emphasize that in
marketing tourism products and services, social media is an important tool. It makes
the tourism products accessible and more tangible. Filipinos love social media.
These includes facebook, youtube, twitter, blogspot, LinkedIn, Wordpress,
Instagram, Tumblr, Pinterest and Flickr. Since everyone has the right to create and
maintain a blog site regardless of motivation. Blogging creates a free exchange of
ideas learning what others think. In this digital world, photos along with personal
experience conveys real-time updates. In tourism marketing, photos are very useful
in showing places to be visited and getting people’s experience. Videos becomes
more effective than photos where movement and audio become richer. However,
internet has limitations which includes:
1. Digital Divide- where access is limited only to those who have access to it
through mobile phones and laptops.
2. Information overload- finding the right information becomes difficult
because the page becomes ‘noisy’, meaning it has a lot of ads and
irrelevant infos making sorting difficult.
3. Security issue- although nowadays, this has been eased up, web generally
is unsecured and providing personal information might be used wrongly.
This will lead to lessen the trustworthiness of the transaction online like
online payments and banking.
4. Credibility of information- since everyone can upload information,
distinguishing what are facts, genuine and real becomes extremely hard.
5. Intellectual property rights issue because of high tendency of copy pasting
the thoughts and ideas of others.
There are several advantages using the internet as the medium in promoting
the tourism products. To mention, it can reach global market, it can be accessed
round-the clock in the customers convenience, it can minimize costly printing of
brochures because photos and videos are already in full-color. It is interactive
because the customer can point and click reservations, informations, and many
more. Abernethy (2012) identified the big seven in social media. These are:
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facebook, twitter, LinkedIn, YouTube and Online Video, Blogs, Ning and Google+.
Accordingly, facebook is recently used far and wide on every age, gender,
socioeconomic background and ethnicity. Interestingly millions can access it though
their mobile devices. Entrepreneurs, small business owners, independent
professionals use the facebook site with high level of sophistication. For the
marketer, a fan page may help them grow client list, connecting old colleagues and
new friends all while marketing the business. On the other hand, Twitter is another
popular place to show one’s expertise. LinkedIn is known to have a white-collar
audience; some are members of Fortune 500 companies. It also has 101 million
users. This platform is a bit more serious than the other sites and a must in order to
network with another business executives. Youtube and online video, is becoming a
must for businesses. Nowadays, youtube has at leat 2 billion viewers while Blogs is
maintained by an individual who makes regular post and commentary, description of
events. This is another way of sharing one’s expertise and communicating wiht the
readers and followers. Some say that the effect/ benefits of blogging is tremendous.
Google Web (2006), a promotional vehicles called Google Adwords is
available. This is where the AdWrods are displayed along the search results in
Google together with its search and content sites. It has a cost per click.
Social media is already changing the face of business marketing, personal
branding and communication. Social media marketers should have a clear sense
who their clients are. In social media marketing traditional rules apply such as be
interested in others. In social media, be social instead of constantly selling. Make a
follow-up, be helpful, give information and bring a great energy to conversation, get
involve and do not ‘appear-and-disappear’. Sometimes your social media contact if
not you client, they might be connected to someone that needs your product and
services, for example “I’m not planning to Singapore trip this month, but I know
someone who is looking for a tour package such as you are offering, here is the
number”.
Another strategy in internet marketing is build a community of followers.
This equation goes like: prospects equals customers; referrals, referrals has partners
and so on. Build an email list, cellphone numbers, invite people to your social media,
invite them to subscribe your blog, youtube channels and so on.
Just like in any other business, business reputation always matters. It is
about the truthfulness in everything a marketer claimed to be. In the legal segment,
this is called social media liability or ‘truth in advertising’.
Destination Branding
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The diagram below shows the top 10 international tourist arrivals that shows
France is on the top for 2 years in this table (2016 &2017). Just like bags and
clothing, destinations have brands. In marketing, the brand of the destination can
play an important role in tourist choice of destination. The louder the brand, the
higher is the price, for sure the quality comes with it.
The brand is connected to the image perceived by the prospective tourist
about the destination. Just like commodities, destinations must have a symbol, logo,
slogan, unique features and values. In the case study conducted by Koob(2010) the
brand identity of Paris/France is especially known as the city of light because of
the popularity it gained as a centre of education and ideas during the age of
enlightenment and it was one of the earliest cities that adopted street lighting.
Accordingly, Paris as the capital of shopping, romance and hospitality. The
unique selling point of Paris is the trademark it has gained over the years as the City
of Love; this may be connected to the stereotypic impression that pops up in the
mind when Paris is mentioned.
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Destination image is defined as the sum of belief, ideas and impression that a
person has of the destination, example the movie Lord of the Rings that was shot in
New Zealand contributes to the country’s tourism income $580 million because
tourist has a strong desire to be in the actual place where movie and tv scenes were
shoot.
Placing a destination in a film is the ultimate tourism product placement. Film is
considered to be the most effective imaging medium as cited by Badilla (2012). This
refers to the visitation of sites where movies and television programs have been
filmed.
Image Marketing.
the destination choice process, this is why destination image is important in tourism
marketing.
These titles will create the image of what these countries has to offer to the
tourist.
Self-Help: You can also refer to the sources below to help you
further understand the lesson:
Let’s Check
_________1. It is a mixture of attributes, tangible or intangible that creates value and
influence to a destination.
_________2. It refers to all of the unique attributes that define a destination such as
the name, logo, tagline, dress code, etc.
_________3. It refers to how the brand is perceived by the target audience.
_________4. It is the process by which people network with those they know and
those they are meeting for the first time on social media sites.
_________5. It represents everything people associate with a brand.
_________6. It is writing or sharing content on the website on a regular basis. It is
comprised of words, videos, images and its combination.
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Let’s Analyze
Activity 1: Destination’s brand. Write down what comes to your mind on the
following destinations:
a. Batanes
b. Siquijor
c. Dumaguete
d. Zamboanga
Activity 2.
Design a brand of your product. This consist of image/picture, taglines, colors, fonts.
Choose the color that represent your marketing perception. Explain it.
Ex:
Logo explained:
The logo is patterned after “banig” a local sleeping mat the filipinos were
using
before and now.
Font explained:
The new custom-made font, called Barabara, is inspired by lettering seen on
jeepneys. The DOT also explained that the new design is "rooted in traditional motifs
and colors."
Slogan/Tagline explained:
“It's more fun in the Philippines,” because of the idea that Filipinos would
make fun on everything to create relaxing atmosphere. This was launched by former
Tourism secretary Ramon Jimenez in 2012.
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Activity 3: E-brochure
Create a facebook Ad (advertisement) for your product in the form of e-brochure. It
must have the promotional cover, product description, tagline, price, contact details.
Acitivity 4: Research Internet Output. Research for a place that serve as the host
of movie and TV programs. Briefly describe its effect.
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Activity 5: The Open University of Hongkong, (2016) wrote this question in the article
Developing Promotional Plan. The question is: How does the perception of the
market regarding a destination compared to the actual situation influence the
destination? In local translation,its “reality” vs expectation”.
Instruction: From TripAdvisor website, search for blogs that has the same experience
as stated above (reality vs expectation) scenario. I will provide an example for you
and you do the same.
YOUR TURN:
1.
2.
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3.
4.
In a Nutshell
In this unit let us write the following highlights gained from the discussion above.
Ex: 1. Social Media is a great way to listen to the market and adjusting one’s offer
to match what the market needs.
Your Turn:
1.______________________________________________________________________
2.______________________________________________________________________
3. ______________________________________________________________________
4.______________________________________________________________________
5.______________________________________________________________________
Q & A List
Do you have any questions for clarification about the topic? Write it here.
Ex: In the advent of internet, do we consider to put aside traditional
marketing?
Your Turn:
Q1: ___________________________________________________
Q2:___________________________________________________
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Q3: __________________________________________________
Keywords
Brand
Product Identity
Brand Image
Social media networking
Perception
Tagline or Slogan
Blogging/Blogs
Real-time
Engagement rate
Social listening
Big Picture:
Week 8-9: At the end of the unit, you are expected to:
Metalanguage
In this section, the most essential terms relevant to the study of marketing plan will
be operationally defined to establish a common frame of references to how it work in
your chosen field or career. You will encounter these terms as we go through the
study of creating a marketing plan.
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Essential Knowledge
Purpose of marketing plan. Marketing plan serves as a road map for all
marketing activities. It must be aligned with the corporate strategic plan. A marketing
plan should be workable, realistic and flexible measurable and achievable. There are
3 key elements to a successful marketing plan. It should be workable, realistic &
flexible, measurable & achievable, in other words, it is simple and easy to execute.
Below is the outline of a marketing plan outline, Schmitz, A (2012):
I-Executive Summary
II- Introduction
III-The Market
IV- The Strategy
V- Budget
VI-Conclusion.
I-Executive Summary
A marketing plan starts with an executive summary. Although this is the first part,
however, this is so far the last thing you will construct or compose because this
would carry the ‘whole’ of your marketing plan in brief. An executive summary is the
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first to be read by the company executive, thus called executive summary. This
should provide all the information your company needs to make a decision without
reading the rest of the plan in the first glance. The summary should include a brief
description of the market, the product to be offered, the strategy behind the plan, and
the budget. Other important information to be included are: how your competitors
and channel distribution partners will respond to the actions your firm take because
most executives will be reading the plan to make budgeting decisions, the budgeting
information you include in the summary is very important. If the company’s
executives want more detail, they can refer to the “budget” section, which appears
later in the plan. The executive summary should be less than one page long and will
be written last, even though it appears first in the plan. A summary is hard to write
when you don’t know the whole plan, so waiting until the plan is complete makes
writing the executive summary easier. Example:
II- Introduction
The introduction will describe the offering/product and goals of the plan. It
provides a brief rationale for why the company should invest in it, for example a
package tour to Bohol, Boracay and others. In other words, why is the product
offered? How does it fit in with what the company is already doing and further its
overall business goals? In addition, the company’s mission statement should be
referenced. How does the offering and marketing plan further the company’s
mission?
Remember that a marketing plan is intended to be a persuasive document.
You are trying to influence executives (decision maker of the company or the travel
agency for example) to invest in your idea. You are also trying to tell a compelling
story that will make people outside your organization—for example, the director of
the advertising agency you work with, or a potential supplier or channel partner—
invest money, time, and effort into making your plan a success. Therefore, as you
write the plan you should constantly be answering the question, “Why should invest
in this plan?” Put your answers in the business challenge section of the plan.
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Source: https://www.slideshare.net/raihan01676724901/destination-development-plan
III-The Market
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Source: https://marketinginsidergroup.com/strategy/5-best-criteria-segment-traffic-personalize-customer-journey/
In this section, you have to consider the buyer/tourist you have in mind whom
you are planning to buy the product. Some guide questions are:
a. Customer: Who are they, what do they need?
b. Collaborators: Your collaborators would include suppliers/ distributors and
retailers. They will help you distribute your products for optimum sales such as
partner travel agency, airlines, hotels.
c. Competitors: Who are they? What are they doing in terms of marketing their
products?
d. SWOT. Here, describe the strength of your company/ product (positive),
weakness of your company/product (negative), opportunities and threats. Strength
and weaknesses are internal in the company or the product itself: you have the
control and you can change, for example location, staff.
Opportunities and threats are external, they are created by environmental forces
such as government regulations, ordinances and economy, social, cultural and
technological forces for example smoking ban, liquor ban, competitors standing,
prices of other tourism elements, travel trends etc.
Moreover, as the center of your marketing plan, the market section of the plan
should describe your customers and competitors with which you will collaborate, and
the state of the market. It is suggested to always start the section by describing the
customers who will purchase the product. After that, discuss your competitors, the
climate, and your company in the order you believe readers will find most persuasive
and convincing.
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After reading the section, a person should have a good grasp how the needs of each
tourist will be satisfied by your product.
Competitors
Your marketing plan is likely to spark retaliation from one or more competitors in the
same market. Anticipates how the competition will react, one step is to identify your
competitors financial resources (if they have the capability to invest in the same
product that you have), their market and their strategies for example prices, similar
destination, similar services to drive up the value of their products, advertising, or a
combination of these tactics. Remember they might be using your plan to create their
own plans.
Political climate
Economic climate
Social and cultural environment
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Technological environment
Political climate- new government regulations as well as legislation and gas prices.
Social and cultural environment- for example if cash or credit card users, positive
word of mouth defenders or refer-a-friend.
Technological environment- (computer) technology. Understanding the technological
environment can provide you with a greater understanding of the travel business
operation such as digital marketing.
a. Promotion strategies you use and why. In this portion pls recall the topic about
promotion mix in the previous unit.
b. Describe your pricing options and why?
c. Communication plan. How will you launched this marketing plan. Who will sell,
who will service?
The Offering. The offering referred here are your Product and Price, thus
your offering. Here, you will provide the details on the features and benefits of your
product. For example, “activity area for children in the destination will be conducive
for family travelers”; or, “therapist for tourist with special needs may avail discounted
rates”, etc.
Similar statements may be constructed depending on the market segments expected
to respond to the promotion.
The guide question would be how will you launch you product. For example,
participating in travel trade shows and special events like golf tournaments that will
be used to promote the product or media appearances. This is to gather customer
feedback. All these must be put into details.
Distribution
First to be identified is how will you sell your product like package tours, resorts or
events. Products may be available through travel intermediaries. This includes travel
agents, hotel representatives, government agencies such as Dept of Tourism,
tourism associations and concierge. However, you may not use all of them. For
always look for reputable entities and document your agreement with a
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memorandum, remember, your will be giving them a commission or any other means
of remuneration being your distributor.
V- Budget?
In this portion, provide details about the budget to be invested needed to
launch and maintain this marketing plan. A complete budget section will spell out all
the resources, such as new personnel (if needed), new equipment, new locations,
and so on and so forth, of course, these resources have costs associated with them
for the expenses in advertising and promotional materials. Additionally, costs of
training salespeople and service personnel and potentially hiring new staff members
like for example holding Kadayawan as events. The projections should also include
timelines.
Example:
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OVERALL TOTAL P
VI-Conclusion.
In conclusion, it is safe to say that the results show how the airline direct
flight to Davao City will motivate Russian tourist. This can be increased
with the help of increasing the budget of creating awareness about the
city. Highlights are….
To sum it up, “we have to direct our attention to the factors behind the
rising online travel agency. We can capture once again our target market
by increasing our internet visibility by creating our own website, etc….”
Base from the facts presented, to sustain in this highly competitive travel
business, we can beat competitors by revising the pricing policies,
management strategies and new product promotion….etc.
Self-Help: You can also refer to the sources below to help you
further understand the lesson:
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Let’s Check
______1. refers to a name or symbol which identifies a product or service.
______2. it is a document that outlines the company’s strategies to achieve
business objectives on acquiring customer.
______3.in tourism, it represents the total satisfaction of tourist in terms of the
goods and services bought during travel.
______4. it refers to the collection of products and services of a certain
company.
______5. is a form marketing communication usually in the trimedia.
______6. refers to the group of individuals interested in the product. In this
course, it refers to tourist.
______7. it refers to a phrase use in marketing which is usually striking and
memorable to create a message to the target market.
______8. it is a business game plan to capture a customer and sell their
products.
______9. It is the first part of the maketing plan that carry the whole ideas and
strategies including the budget.
______10. It is a part of the marketing plan that shows the marketing mix.
Let’s analyze
Steps:
1. Select your tour product. Choose 1 (one) either ;
a. Davao City Tour (Day Tour)
b. Samal Island Hopping Tour (Day tour)
c. Philippine Eagle Tour Countryside Tour
d. (any Davao destination you wish of promoting
If you are in online class, you can browse websites for samples.
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3. Out from the details above, and the samples that you have browsed from the
internet, make a marketing plan. Remember the following;
I-Executive Summary
II- Introduction
III-The Market
IV- The Strategy
V- Budget
VI-Conclusion.
3.1 - ½ page on Executive summary. This is the last item that you will write.
3.2 - 1 page on Introduction. Answer the following statement because this will
serve as a guide to compose your introduction.
a. What is your product all about?
b. Create an objectives in promoting it, (profit; service;
community)
c. What are your unique features, activities & experience?
3.3 1-2 pages on the Market. Answer this guide questions in order to
compose this part of the plan:
a. Who are your target customer/ or tourist?
b. Describe who they are in terms of age, location and
interest.
c. Who will be your provider of bus, boat, catering for
food, etc
d. Who are your competitors?
e. (only short statement about the swot).
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•3.6- Lastly, create a video of yourself, presuming to sell the product to your
teacher.
(1-2 min only, business attire, must be audible).
In a Nutshell
In this unit let us write the following highlights gained from the discussion above.
Ex: 1. Marketing Plan represents the total blue print of promoting a product.
Your Turn:
1.___________________________________________________________
2.___________________________________________________________
3. ___________________________________________________________
4.___________________________________________________________
5.___________________________________________________________
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Q & A List
Do you have any questions for clarification about the topic? Write it here.
Your Turn:
Q1: ___________________________________________________
Q2:___________________________________________________
Q3: __________________________________________________
Keywords
Brand Advertising
Marketing plan Market
Product Slogan
Product portfolio Marketing strategy
COURSE SCHEDULES
This section calendars all the activities and exercises, including readings and lectures, as
well as time for making assignments and doing other requirements, in a programmed
schedule by days and weeks, to help the students in SDL pacing, regardless of mode of
delivery (OBD or DED).
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BB-LMS
Place:
Activity 7: Download the “Its More Fun in June 24
the Phil video. Write down the names of the
destinations and its location
(city/region)included there.
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AMOR B. JANGAO
Course Facilitator
TM- OIC
Approved by:
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