MARKETING AND

PROMOTION
 OBJECTIVES:

To understand the reasons why travel and tourism providers carry out marketing and promotion
 MARKETING

• 1976, Chartered Institute of Marketing

“the management process responsible for identifying, anticipating
and satisfying customer requirements profitably”
• 2007, Chartered Institute of Marketing Research and Information
“Marketing is the strategic business function that creates value by
stimulating, facilitating and fulfilling customer demand”
 HOW TO ACHIEVE:

• Building brands
• Creating Innovation
• Developing relationship
• Creating good customers
• Communication
 CUSTOMER CENTRIC - BRINGS:

• Positive returns on investments

• Satisfy shareholders
• Contribute to positive behavioural change and sustainable business future
• “Marketing should come from the thinking point of customer rather than being totally
product-centered
• Should make package according to customers interest and create demand for it
• Marketing can also be used to influence customers behaviour by suggesting ways that
customer can obtain the product they desire
 PROMOTION

“Any form of communication or activity carried out specifically to call attention to the products
and services of a particular organization”
OBJECTIVE:

To understand the techniques and tools used in marketing and promotion in the T & T industry

KEYWORDS:
Customer Satisfaction
Market Research
Competition
WHY MARKETING AND PROMOTION IMPORTANT
IN TRAVEL AND TOURISM INDUSTRY

• Increased sales
• Competitive advantage
• Positive organizational and product image
• Customer satisfaction
 MARKETING AND PROMOTION
TECHNIQUES:
• Marketing allows business to identify their position in the market from which travel and tourism
providers are able to set targets for future improvement and identify who their competitors are.
• The customer focus of the industry and its dynamic nature, is important that travel and tourism
organization understand the specific groups of customers at whom their products and services are
being targeted
• Different tool helps the travel and tourism providers in their decision making processes.
 MARKET RESEARCH

• To achieve customer satisfaction, organization must meet

the needs and wants of their customer
• So it is not easy to find out the needs and want especially for
intangible products and services
• So market research is done:
Who the customer are
What's their needs and wants
• Market Research enables an organizations to know exactly
what these demands are likely to be and can result in travel
and tourism providers putting together holiday products
and services that exactly match these demands
• According What’s your opi
to Market Research Society, the Market
Research is “ the planned process of collecting, recording,
analyzing and evaluating data about customers and the
market itself”
• Ask students to speak in pairs a short
explanation of their opinion about the topic
you are starting to study.
 THE FIVE STAGE MARKET RESEARCH
PROCESS

Set the Design the Data Analyze Report the

objectives research collection the data results
 1.SET THE OBJECTIVE

• ‘Identifying the problem’.

• set the purpose for conducting the research & is often as

statement
• Eg:Maldives appeal only to the honeymoon & diving
segments.
 2.DESIGN THE RESEARCH

• Detailed plan of action is drawn up

• Timescale & resources
• Research methods
3: DATA
COLLECTION
• This is the stage when the main research
activities are carried out.
4. ANALYSE THE DATA

• collated & interpreted .

• Depending on the type of data collected, it may

be possible to carry out statistical analysis.
5.REPORT THE
RESULTS

• Overall findings from the

research will be presented ,
drawing conclusions against
the original objectives.
 YOUR RESEARCH TIME
Decide a topic and write the stages of your research process in detail
 OBJECTIVE

• To understand about Market Research Techniques

KEYWORDS:
Primary Market Research Technique
Secondary Market Research Technique
 MARKET RESEARCH TECHNIQUES:

• Primary Marketing Research Techniques

• Secondary Marketing Research Techniques
 PRIMARY MARKET RESEARCH

• Involving collecting information from source directly

by conducting questionnaires and surveys
• It is also known as field research
• Find out :customers’ experiences & expectations.
• Eg: A survey at the airport or within the reception
area of a number of hotels.
 SOURCES OF PRIMARY MARKET RESEARCH
•Self-completion Questionnaires
•Which are a series Of open-ended, Closed or multiple Choice questions
• which is given directly to the customer or Potential customer to fill in.

•Telephone surveys & Internet surveys

•In which existing or potential customers are contacted either by telephone or by email or
are randomly targeted

Face-to-face interview
• Asking direct questions
•Exit Surveys
•carried out as a visitor leaves an attraction in which opinions
about the overall visitor experience
•Postal surveys
•very poor response rate.
•Focus groups
•a number of customers are led by a member of staff to discuss
their views of a certain product or service.
•costly & time consuming.
 SECONDARY MARKET RESEARCH

• Involves collecting information from sources where the primary

research has already been conducted. (Articles, Statistic Report,
etc)

• This is also known as desk research

• Eg: Data from the government organization - produced data or

trade reports – most of can be accessed through membership
accounts via the internet.
 QUALITATIVE & QUANTITATIVE DATA

Qualitative data
• Refers to the information collected about customers’ opinions
& attitudes towards products & services.
• It is more difficult to represent graphically

Quantitative data
• It tends to be numeric or statistical by nature – frequency of visits, cost
& number of users etc.
• It allows patterns & trends in the market to be displayed visually in
chart or graph forms.
 OBJECTIVE

• To understand about the SWOT & PEST Analysis

Keywords:
SWOT
PEST
 SWOT AND PEST ANALYSIS
• Situation analysis
• Assessment of business enviornment
• Recognize internal influences & external influences.
• A situation analysis –It consists of two components
• SWOT analysis
• PEST analysis
SWOT analysis is a marketing
tool used in many business
contexts.
SWOT is an acronym , which
stands for:
• Strenghts
• Weaknesses
• Opportunities
• Threats
SWOT

Internal factors : External factors:

• Strenghts • Opportunities
• Weakness • Threats
 SWOT
• Applied to a product, project or business to assess its position in the competitive
market.

• Strengths and weaknesses are internal.

An example of a product’s strengths might be its brand equity. Not enough
distribution channels would be a weakness.
• Opportunities and threats are the external factors
An untapped market for a product represents an opportunity; manufacture of a
similar product by a competitor might pose a threat.
SWOT ANALYSIS OF LAKE WANAKA
 PEST
• This marketing tools used to assess the external influences on the
business environment & is also known by its acronym:

Political Economic

Social Technological
• To understand the climate of a new market, marketers assesses the
political, economic, social and technological climate

• It analysis an organisation to identify any influences on the market, which

are beyond its control.

• By understanding what these forces may be, a tourism provider is better

placed to assess how great a risk these external factors pose to the market,
& consequently to the business itself.
 POLITICAL

• Organisation within the travel & tourism industry are regulated by govt., through legislation &
or/ controlled by other regulatory bodies, in order to protect the customers, suppliers & the
environment

• Civil unrest , acts of international terrorism also exert political influence within this industry.
 ECONOMICAL

• Foreign exchange rates, periods of recession & the global economy all play important roles in
exerting positive or negative influences on tourism.
• In recent years, the global economic downturn has led to less disposable income & thus fewer
travelers, having a heavy impact on the profitability of airline companies & tour operators, for
example.
 SOCIAL

• The global threat of pandemic diseases such a Covid,H5N1Avian Influenza, SARS & H1N1 Swine
Flue impacts on the industry as well, causing some travelers to cancel holiday plans.
• The rates of crime in certain destinations & local attitudes to tourists might also impact on the
popularity of specific destinations with tourists.
 TECHNOLOGICAL

• Infrastructure development, including the construction of airports with high carrying capacities
& hotels with high numbers of bed spaces all contribute to positive technological influences on
tourism provision.
• The Internet has transformed the way in which travel & tourism products & services are
marketed.
• Those destinations with under-developed infrastructure will lose competitive
advantage with those destinations which are more technologically advanced.
• Give reason why it is important for tourism authorities such as Ministry of Tourism in any
country to use SWOT analysis?
• To assess market position (1) so that they can make strategic changes to improve this position (1)
• • To identify areas for improvement (1), to overcome weaknesses such as poor infrastructure to
better support tourism activities (1)
• • To evaluate competition (1) by analysing the external environment, they can see which
destinations pose the greatest threat (1)
• • To aid strategic planning and decision making processes (1), to increase tourism value and volume
(1)
• • To provide evidence for change (1) by assessing the full situation, they can take necessary steps
for future development (1)
Discuss the advantages and disadvantages to tourist authorities of carrying
out market research
 Advantages:
 It can be relatively quick and easy to carry out
 It need not cost too much
 It can provide very useful information
 It can help better understand the market/needs/wants/expectations
 Allows marketing decisions to be made
 Customer satisfaction

Disadvantages:
 Traditional methods are expensive and labour intensive
 Data may be biased, inaccurate or misleading
 Response rates are not always representative of the market
SEGMENTATION
• Marketing segmentation is the process through which a
target market is selected for the products & services being
offered.
• Customers are grouped or classified according to a number of pre-
set characteristics & the market is divided into a series of
‘segments’ based on these characteristics.
MARKET SEGMENTATION AND TARGETING
 IDENTIFY THE DIFFERENT MARKET SEGMENTS
TARGETED BY TRAVEL AND TOURISM
PROVIDERS
• This process allows an organisation to identify one or more specific
target markets upon which to focus its marketing efforts
• This means that a tourism providers can target only those customers
who likely to be interested in the product thus saving time and money
 Market segmentation

Psychographic segment /
Demographic segment
Geographic segment Lifestyle segment

By locality, area, By age, gender, By socio-economic

region, etc. This ethnicity, levels of factors such as level
includes domestic disposable income etc. of education or
versus overseas profession as well as
visitors. interests & attitudes.
 PASTPAPER QUESTION – 2021 /22/JUNE

• Explain three benefits of using geographic segmentation to target potential customers

• It is simple to carry out (1) geographic segmentation is based on facts about places or individuals
(1)
• Allows marketing strategy to be more focused based on geographical preferences (1) people in
different countries and with different cultures have different tastes, needs and wants (1)
• It is cost effective (1) only target those people living in the targeted location (1)
• Can target customers in their own language (1) using objective facts about where customers live
means marketing decisions are relatively simple (1)
• Does not require complex prior research (1) arrival statistics will identify geographical gaps in
the market (1) Target customers from MEDCs/LEDCs (1) different pricing policies depending on
purchasing power (1)