MARKETING FOR TOURISM 3

CHAPTER 4
THE TOURIST MARKET
 Introduction
Market defined group of consumers for a particular product or range of products.
By group we mean any group of people identified by a variable that distinguish one
group from another.

Requirements to define a Market

Measurable: To define the overall number of the market.
Reachable: Marketers must be able to communicate with the market through
magazines
Viable: The market size is sufficient-there is sufficient number of them to make it
worthwhile for an organisation to adopt a strategy of niche marketing directed at
them.
 Understanding Needs and Wants
Difference between needs and wants
Needs
Physiological: basic for survival , eat, drink, sleep, warm and reproduce
Psychological: for human well-being, receiving affection, status, respect
Maslow’s Hierarchy of Needs: categorised needs
(Physiological, Safety, Social, Ego and Self-Actualisation)
Wants
Needs are translated into wants for a certain product that satisfies the need
Attitudes and beliefs
Segmenting Markets by Needs and Wants
Variables can distinguish one market from another.
Market segmentation process of dividing markets by their variables by
Market segmentation:
 Geographical
 Demographical
 Psychographic
 Behavioural
 Understanding Needs and Wants
(continued)
1. Geographic
Divining market where they live
Divide by regions, district or towns.
Cultural differences in geographical areas
2. Demographic
Age, race, gender, family composition and size, life-cycle, income, occupation
,education, and ethnic background.
Marketers must track changes taking place
Computer mapping: marketers can develop databases selecting those elements of
the population mostly likely to favour the company’s products and to target these
by marketing outlays.
Sub-cultures with their different racial or religious characteristics
3. Psychographic
Motivation of individuals within the demographic groups
 Understanding Needs and Wants
(continued)
Nationality: countries develop their own unique cultures, values which is learned
Sub-cultural: regional patterns of behaviour within a country
Social Class: stratify society according to occupation
Peer Groups
Group with which an individual is mostly closely associated
Keeping up with the Jones’
Reference Groups
Group admired to emulate their lifestyle
Trickle-down effect
Social class
4. Behavioural
Consumers act and react as individuals
Three Stages of Behaviour:
 Initial extensive problem-solving stage
 Stage of more limited problem solving
 Routinised behaviour.
 Organisational Marketing (continued)
Key Issues in Organisational Marketing:
 Buyer is seldom the consumer
 Buying tends to be in large quantities
 Prices are negotiable
 Buyers make huge demands on quality consistency,supply, reliability and
personal service.
 Seldom intermediaries in the buying process.
 Markets are far less diffused than are mass consumer markets.
 Branding is relatively unimportant in the purchasing decision.

Emotional Factors play a role:

Prestige of dealing with an established firm with international reputation
Cultivate personal contacts.
Networking is important.
 Relationship Marketing
Relationship Marketing creating, maintaining and enhancing strong relationships
with customers and other stakeholders

Establish close ongoing links with individuals and businesses that company is
heavily involved with.
Stakeholder management (shareholders, government)
Better relations with employees through communication-internal marketing

Customer Relationship Marketing (CRM) technique or set of techniques designed

to help build up close and favourable contacts with an organisation’s key
customers whether consumers or business over a long time period.

CRM frequent flyer programs, SAA Voyager

ICT offers tools to aid in CRM
Databases-website marketing, call centres and interactive digital television
Applying the Theory in Marketing Tourism
Very few cases that product of organisation is attractive to all consumers
Short-gun approach: make sense to target products to consumers that want
product or see value
Rifle-approach: targeting all customers, any customers, ‘is there a customer out
there’
Market segmentation determine the market(s) it will serve and develop products to
serve the needs of those markets
 Segmentation in Travel and Tourism
Marketing
Markets can be segmented in several ways:

Demographic

Personality
Psychocentric: packaged structured tour
Allocentric: outgoing, adventerous,new things

Benefits
Benefits offered to customer
E.g. space travel, low cost, best quality, unique location
 Marketing Mix
Marketing Mix/ 4p’s:Core of marketing planning (4p’s)
Marketing Mix/4p’s: Product, Place, Promotion and Price
Marketing Mix/ 4p’s: are tools
Marketing Mix ‘’set of controllable tactical marketing tools that the firm blends to
produce the response it wants in the target market’’.
Product:
It is what will be consumed with both tangible (physical) and intangible (service)
elements
Price:
Amount of money or the cost of the product
Price is the figure at which the product is made available to customers
Place:
Place is the point-of-sale
Where the product can be purchased from
Promotion:
Techniques to publicise the product, prices to customers.
Promotion includes Advertising, Public Relations, Sales Promotion, Personal
Selling (direct selling)
People, Process, Physical Evidence, Productivity and Quality