CRT LEARNING MODULE

Course Code THM03

Course Title Micro Perspective of Tourism and
Hospitality
Units 3
Module Title Tourism Marketing

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 College for Research & Technology of Cabanatuan

HOW TO USE THIS DIGITIZED LEARNING MODULE

Welcome to the module in Tourism Marketing. This module contains training
materials and activities for you to complete this module..

You are required to go through a series of learning activities in order to complete

each learning outcome of the module. Each of the learning outcomes is provided with
Modules. Follow these activities on your own and answer the self-check at the end of
each learning outcome. You may remove a blank answer sheet at the end of each
module (or get the answer sheets from the online facilitator) to write the answers for
each self-check. If you have questions, don’t hesitate to ask your facilitator for
assistance.

This module was prepared to help you gain fundamentals and basic knowledge
about Tourism and Hospitality. This will be the source of Information for you to acquire
knowledge and skill in this particular trade independently and at your own pace, with
minimum supervision of help from your instructor.

 Talk to your online facilitator and agree on how you will both organize the
Training of this unit. Read each through the module carefully. It is divided into
sections, which cover all the skills and knowledge you need to successfully
complete this module.
 Work through all the information and complete the activities in each section.
Read Modules and complete self-check. Suggested references are included to
supplement the materials provided in this module.
 Most probably your facilitator will be your supervisor or manager. Your online
facilitator will support and correct you.
 Your online facilitator will tell you about the important things you need consider
when you are completing activities and it is important that you listen and take
notes.
 You will be given plenty of opportunity to ask questions and practice on the job.
Make sure you practice new skills during regular work shifts. This way you will
improve both your speed and memory and also your confidence.
 Talk to more experienced workmates and ask for their guidance.
 Kindly the self-check questions at the LMS (EDMODO) to test your own progress.
 When you are ready, ask your online facilitator to watch you online via Zoom or
Google Meet to perform the activities outlined in this module.

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 Ask your online facilitator work through the activities: ask for written feedback
on your progress. Your online facilitator keeps feedback/pre-assessment reports
for this reason. When you have successfully completed each element, ask the
facilitator to mark on the reports that you are ready for assessment.
 When you have completed this module, and feel confident that you have
sufficient practice, your online facilitator will arrange an appointment with
registered assessor’s to assess you. The results of your assessment will be
recorded in your competency Achievement Record.

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 MODULE CONTENT

MODULE TITLE: Tourism Marketing

NUMBER OF HOURS: 3 hours (1 week)

LEARNING OUTCOMES:

At the end of the module, you MUST be able to:

1. Define marketing
2. Clarify the uniqueness of tourism marketing.
3. Explain the importance of marketing orientation, market
segmentation, and product life cycle to tourism marketing; and
4. Discuss the elements of the strategic marketing process.

Contents:

1. Definition of Marketing
2. Uniqueness of Tourism Marketing
3. Market Orientation
4. Marketing Segmentation
5. Strategic Marketing Process
6. Marketing Mix

Conditions:

The students must be provided with the following:

1. Hard copy or soft copy of the course syllabus
2. MS Word
3. Pen
4. Paper

Assessment Method:

1. Submission of Research paper.

2. Written examination.
3. Quizzes using Google forms.

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 MODULE 9
Tourism Marketing

Learning Objective: After reading this MODULE, you should be able to:

1. Define marketing
2. Clarify the uniqueness of tourism marketing.
3. Explain the importance of marketing orientation, market
segmentation, and product life cycle to tourism marketing; and
4. Discuss the elements of the strategic marketing process.

Definition of Marketing
Marketing consists of all those activities necessary to bring a product
or service from the manufacturer to the end user. These activities
include:

1. The product or service itself,

2. The methods of distribution;
3. The methods of pricing,
4. The methods of promotion,
5. The form of selling; and
6. The form of advertising.

In relation to tourism, marketing is the systematic process by which

an organization tries to maximize the satisfaction of tourist demand
through research, forecasting, and the selection of tourism products and
services to meet that demand Another definition is it is a management
philosophy which, in the light of tourist demand, makes it possible
through research, forecasting, and selection to place tourism products
on the market in line with the organization's purpose for the greatest
benefit. This definition suggests three things first, it shows that
marketing balances the needs of the tourist with the needs of the
organization or destination. This can be explained by an examination of
the development of an appropriate orientation. Second, it emphasizes
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tourism research which leads to the selection of tourism demand The
concept of market segmentation is useful at this point. Third, the
concepts of the product life cycle and positioning are useful to stress the
proper placement of tourism products on the market and to suggest the
suitable marketing policy and strategies which result from that decision

Uniqueness of Tourism Marketing

Although the theories and methods of marketing tourism are the
same as those of other products, there are some unique qualities
Tourism is a service An intangible experience is being sold, not a
physical good that can be inspected before it is bought. For example, a
consumer does not buy a bed or a beach, but buys a night's lodging in a
hotel at the seashore Because it is a service, production and
consumption take place at the same time In manufacturing, goods are
produced, stored, sold, shipped, and delivered. The inventory for
tourism is a seat on a plane, a hotel room, a nice beach, or a beautiful
or an excellent place for scuba diving. Unlike manufactured goods, if the
inventory is not sold, it is not sold forever Manufactured goods can be
stored, and while sometimes perishable, they generally are not lost if
not sold on a given day. Tourism supply cannot be stored. Unlike a can
of food which, if not sold one day, can be sold the next day Airline
seats, hotel rooms, or restaurant seats not sold today lose that
particular sale forever. This means that market forecasting and research
are extremely important. Producers should effectively plan the proper
amount of facilities and after developing them, use them as completely
as possible.

A second significant characteristic of tourism is that the service

provided is usually composed of several components such as
transportation, lodging food and beverage, attractions, activities, and
the like The degree of success of any one component influences the
success of the other components. Travelers who have a poor experience
on an airline to a particular destination may choose a different airline
next time or suggest to friends and relatives that the trip was not
worthwhile or the destination is not worth visiting.

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 The third characteristic of the tourism product is that travel
intermediaries are a necessity Because most tourist services are located
far from their potential customers, specialized Intermediaries or
organizations are necessary to bridge the gap between the producer
and the tourist While in most industries the producers exert much
control over every stage in the development and delivery of the product,
in tourism, travel intermediaries exercise much influence over the
services offered, dictating to whom, when, and at what price they are
sold.

The fourth characteristic of tourism is that the demand is highly

elastic, seasonal in character, and subject to changes in taste and
fashion. There are a number of options available to consumers to satisfy
a wide variety of tastes Sun, sea, and sand, for example, can be found
in many places around the world. They offer many choices to the
prospective traveler.

Marketing Orientation
Before embarking on a program to market tourism in general or a
specific tourism product or service in particular, it is necessary to
develop a philosophy or orientation. to guide one's marketing efforts.
Some destination areas have marketing efforts that are guided by
product orientation. A product orientation emphasizes the products or
services that are available it may be successful if there is a surplus of
demand over supply. Thus, the destination which offers the best
product will get the tourist. The old adage that reflects this is "build a
better mousetrap, and the world will beat a path to your door".

When there is more supply than demand, the consumer orientation is

used Consumer orientation places the needs and wants of the tourist
foremost in the mind of the marketer who seeks to provide a product or
service that will satisfy those needs and wants. It involves serving
breakfast when the tourist wants it rather than when it is convenient for
management, as well as providing an experience tourists need and want
rather than what the marketer feels they should need or want.

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 Another orientation is the societal-marketing approach or societal
orientation which focuses on the satisfaction of tourist needs and wants
while respecting the long-term interests of the community.

All marketing activities will be guided by the philosophy of those

responsible for the marketing campaign. It is essential that any
marketing effort has an agreed-upon philosophy to guide the further
development and marketing efforts of any destination

Marketing Segmentation
The second aspect of the definition of tourism marketing is the
selection of tourism demand. Market segmentation is a universally
accepted way of analyzing demand. It is the grouping together of
people with similar needs and wants for the purpose of serving the
market better.

Segmentation is based on four assumptions. First, the market for a

product or service, such as a vacation, is made up of particular
segments whose members have particular needs and preferences
related to the product or service being marketed. Second, these
potential tourists can be grouped into segments whose members have
similar characteristics. Third, a single product offering such as a trip to
Baguio will appeal to some segments of the market more than others.
Fourth, some firms and organizations can improve their marketing
efforts by developing specific product offerings to reach specific
segments of the market. A cruise package will be suitable to one part of
the market but a historical tour may be more suitable to another.

Table 6 shows the four criteria that have been developed by which a
market segment can be constructed. These are:

1. Socioeconomic;
2. Product-related;
3. Psychographic; and
4. Geographic.

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 Socioeconomic or Demographic Segmentation
Socioeconomic criteria are the most commonly used at present due
to the ease of collecting data, the comparability of such information
through census, as well as media data, and the fact that such data is
easy to understand and apply. Age and income are very successful
predictors of recreation participation. However, the changing nature of
society makes it impossible to rely only on demographic data as a
means of devising marketing strategy.

Product-Related Segmentation
A major advantage of product-related criteria is that the information
gained is directly related to the particular product in question. A major
defect in some studies is that the information is acquired from the
potential tourist that deals with general benefits obtained or, in the case
of psychographic segmentation, from general attitudes about types of
products and services rather than specific products and services.

Psychographic Segmentation
This segmentation technique, although expensive and difficult, is
useful in describing segments. It can best be used in highly-specialized
and extensively developed markets to supplement the information
gained from simpler analysis. Demographic data may be likened to the
bones of a skeleton while psychographic data is to the flesh. The bones
form the basis of the structure but it is only by covering the form with
flesh that the features become recognizable. Information about an
individual's attitudes, interests, and opinions give a much closer picture
of the segment being described.

Geographic Segmentation
Geographic considerations are very important in tourism. At present,
destinations use geographically-based studies to identify primary,
secondary, and in some cases, tertiary markets. State and national
tourist offices use geographic segmentation to determine the extent of
their promotional efforts.

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 After identifying the market segments, it is necessary to select which
segments the destination would like to attract and serve This decision
can be made only after analyzing which market segments will bring the
greatest benefit to the destination. The segments chosen become the
target market. The process of selection and the corresponding decisions
to develop a marketing program suitable to meet the needs of these
segments is known as positioning.

Product Life Cycle

The concept of the product life cycle is useful to the markets as an
additional guide on what strategies should be used in choosing,
attracting, and serving target markets. It suggests that a product,
service, or destination moves through distinct stages Specific marketing
strategies on price, product, promotion, and distribution are developed
within the context of a market planning approach.

These are:

1. Introduction
2. Growth
3. Maturity
4. Saturation
5. Decline

Because of the rapid change of consumer lifestyle and technological

changes, the life cycle for products and services become shorter, but
the product life cycle remains as a useful concept for strategic planning.
Each stage of the product life cycle has certain marketing requirements.

1. Introduction

The introductory phase of the product life cycle requires high

promotional expenses and visibility. The most opportune time to
advertise a product or service is when it is new. Operation in this period
is characterized by high cost, low sales volume, and an advertising
program which aims to encourage primary demand. At this stage of the
life cycle, there will be a high incidence of failures.

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2. Growth

In the growth period, the product or service is accepted by

consumers. Market acceptance means that both sales and profits
increase rapidly, making the market attractive to competitors. Promotion
emphasizes selective buying motives by trade names rather than the
number of outlets handling the product or service increase. More
competitors enter the market place.

3. Maturity

At this stage, the mature product is well-established in the market

place. Sales increase but at a slower rate. Many outlets are selling the
product or service. They are very competitive especially with regard to
price. Companies try to find out ways to hold on to their share of the
market.

4. Saturation

At this stage, sales volume reaches its peak. The product or service
has penetrated the market place to its highest degree. Mass production
lowered the prices to make it available to everyone.

5. Decline

In the decline stage, advertising expenses are lower. There are few
competitors.

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 Strategic Marketing Process
A strategic marketing process can be divided into three elements:

1. Market planning;
2. Target market selection; and
3. The marketing mix selection.

Market Planning Process

In market planning, the objectives are stated and the methods of
attaining them are identified. There are seven steps in the market
planning process. These are:

1. Collection of data. Data can be collected in two ways-from

secondary sources and from primary sources. The second method is
expensive and time-consuming. Since many organizations are not
skilled to do market research planning, they usually ask the help of
other organizations or people who are experts in it.
2. Analysis of data - Data is usually organized and interpreted. This
requires a great amount of skill and understanding. At present,
computers shorten the process of organizing and interpreting data.

3. Identification of alternative strategies for reaching the

desired goal - In most cases, there are several ways to arrive at a
desired goal. For example, an airline company wanting to increase its
percentage of occupied seats may adopt several alternatives First, it
can create a special fare with certain restrictions such as the seven-
day advance buying. Second, it can create a special fare based on
age such as discounted fare for those below 21 years of age. Third,
special contracts for surplus seats may be arranged with groups.

4. Cost-benefit analysis-The cost benefit analysis of several methods

for reaching the goals would indicate which of the alternatives or
combination of them would be best from a financial standpoint. Some
elements are not quantifiable such as the goodwill and improved
attitude toward the company that a program can generate Frequent
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 flyer programs which airlines offer are quantifiable since discounts for
mileage flown can be computed.

5. Selecting alternatives and plan formation - After the variables

and cost benefit for each are identified, it is then decided which one
should be carried out by the other organizations. A plan of action,
including the responsibilities of the members of the organization, can
then be established.

6. Control procedures - These are methods which analyze the

progress made in achieving the goals of the project.

7. Plan information - Putting into effect the plan of action and

supervising it.

Target Markets
Tourism USA suggested four steps in identifying target markets.
These are

1. Estimate the approval of an area's attractions. This includes the

degree of interest of the tourist on the area and the length of
time the tourist will spend visiting it. For example, a three-day
festival would be more important than a one-day festival. A
Disney-type theme park would create more interest than a
crocodile farm;
2. Estimate the distance in both travel time and travel costs. The
greater the attraction, the longer the distance potential tourists
will travel;
3. Identify the potential target markets geographically by locating
the population clusters within the maximum distance
determined from the estimated travel time and lure of the
attraction, and
4. Identify the actual and potential competition in the target
market.

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 Behavioral Characteristics of Target Markets
The behavioral characteristics of potential travelers is very important
in identifying target markets. People travel for different reasons. Some
people are interested in historical or cultural activities such as museums
and monuments, others prefer sports events or entertainment, while still
others prefer the sun, sea, and sand. Once the target markets have
been defined, the segments must be studied to know why these people
travel to a specific location Research can determine the behavioral
target markets that would be best suited for the particular product and
match the attractions with those who are most likely to enjoy them and
let the tourists know their existence through promotion.

Selecting a Marketing Strategy

There are six steps in determining a marketing strategy. These are

1. Identifying the market segment,

2. Determining the preferences of the market segment;
3. Determining what influences the segment most-price, product,
image, sales persuasion, customer service, product availability,
among others;

4. Realizing the importance of two clients-the traveler and the travel

intermediary such as the travel agent or tour operator;

5. Determining the marketing mix that will influence the segment

identified; and

6. Establishing a price policy that will maximize profits by balancing the

number of tourists with the capacity of the attraction.

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 Marketing Mix
The marketing mix is the combination of elements-product, price,
promotion, and distribution that interact and complement each other to
attain the objectives of the plan.

1. Product

A vacation consists of several parts or products such as

transportation, accommodation, food and beverage, sightseeing,
entertainment, and souvenirs. Several providers will offer one or more
of these products or services. Thus, each provider is interdependent
upon the others to offer an attractive and satisfying vacation
experience. The philosophy of a consumer marketing orientation
suggests that products should satisfy the needs and wants of the
customer It is necessary to select a target market and then provide
products or services that will satisfy its needs.

There are several criteria that should be met in deciding to provide a

product or service. First, there should be a heavy demand for the
product or service from at least one important segment with the
possibility of additional business from other segments of the market.
Second, new products and services should suit the general image of the
destination area and complement existing ones. Third, new products
and services should be offered in accordance with available supply of
manpower, money, and natural resources Fourth, any added product or
service should contribute to the profit and/or growth of the entire
destination.

2. Price

Price is the result of supply and demand. When supply exceeds

demand, price tends to decrease. When demand exceeds supply, price
tends to increase For example, higher prices are charged during the
peak seasons. While lower prices are changed during off-seasons, prices
are usually lower for destinations that are open the whole year while
destinations that are not open the whole year have higher price rates

Price is influenced by competition. If products and services of an

agency are similar to those of its competitors, its price will be similar to
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theirs However, if its products and services are unique, it can charge
more than its competitors.

Price is also related to the needs of the market segment that is

served.

If a destination is perceived by the members of the market segment

as serving their needs and wants, they will be willing to pay a higher
price.

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REFERENCE

MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

AUTHOR: ZENAIDA LANSANGAN-CRUZ, PHD

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