iCRT LEARNING MODULE

Course Code THM07

Course Title Tourism and Hospitality Marketing
Units 3
Module Title Tourism Promotion I

College for Research & Technology of Cabanatuan

Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 7 : Date Revised: Issued by:
Tourism Promotion I Developed by: Page 1
Jennifer J. Miranda CRT
HOW TO USE THIS DIGITIZED LEARNING MODULE
Welcome to the module in Tourism Promotion I. This module contains training
materials and activities for you to complete this module. This module covers what a
tourism product is and its component, the stages of the product life cycle and the
destination life cycle and also the product development process.

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 Marketing. 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.
 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.
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 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.

MODULE CONTENT
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MODULE TITLE: Tourism Promotion I.

NUMBER OF HOURS: 3 hours (1 week)

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

1. Explain the role of promotions in tourism marketing.

2. Identify the uses, advantages, and disadvantages of advertising, direct
marketing, and personal selling.

Contents:

2. What Is Promotions
3. Advertising
4. Direct Marketing
5. Personal Selling

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.

MODULE 7

Date Developed:
Document No. 001-2020
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 Tourism Promotions I
Learning Objective: After reading this MODULE, you should be able to:

1. Explain the role of promotions in tourism marketing.

2. Identify the uses, advantages, and disadvantages of advertising,
direct marketing, and personal selling.

INTRODUCTION
Advertising, direct marketing, personal selling, sales promotion,
public relations, and Internet marketing are known as the promotional mix.
Putting the elements together based on the available resources to meet a
company's objectives is the tourism marketer's task. Just because the
company can afford to advertise on national television does not mean it
should. Hence, the tourism marketer should be mindful of the costs and
benefits as well as advantages and disadvantages of specific elements of
the promotional mix to come up with the most effective and cost-efficient
combination of the promotional tools available

In the next two modules, we shall discuss the different promotional

tools available to the tourism marketer. These include advertising, direct
marketing, personal selling, sales promotion, public relations, and Internet
marketing We shall also discuss the various media channels available to the
tourism marketer such as television, radio, print, and the Internet.

WHAT IS PROMOTIONS?
Promotions have been defined as the coordination of all seller-
initiated efforts to set up channels of information and persuasion to sell
goods and services or promote an idea (Belch & Belch 2008). All marketing
communications techniques seek to inform create awareness, attempt to
persuade, and reinforce buying behavior of customers (Shoemaker et al.
2007). Various strategies are thought of and implemented by the seller to
ensure that the tourism product or service is made known to its possible
target market. These strategies seek not just to inform people but more
importantly to persuade people to buy the product. The end goal of any
promotional activity is to close the sale.

ADVERTISING

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 Adverting is defined as any paid form of non-personal communication
about an organization, product, service, or idea by an identified sponsor
(Belch & Belch 2008). It is mass communication that is paid for
(Shoemaker et al. 2007) it can reach the largest number of prospects very
quickly. Advertising covers the various messages consumers receive from
television, radio, newspaper, magazines, billboards, transit displays, and
even online. Online options include banner advertising, skyscraper ads, pay
per click, etc.

In the hospitality industry, advertising is viewed as a way to create

and maintain awareness of the company property, or destination
(Shoemaker et al. 2007) However, not all tourism products and services
would benefit from advertising A careful assessment of one's resource and
objectives needs to be done before deciding on using advertising as a tool
for promotions Big properties such as hotels, fast food chains, and country
destinations may benefit from a carefully planned advertising strategy.

Objectives of Advertising

An advertising objective is a specific communication task to be

accomplished with a specific target audience during a specific period of
time (Kotler et al. 2010). Advertising can be classified based on its
objectives (1) to inform, (2) to persuade, and (3) to remind.

Informative advertising is used when introducing a new product

or to build up primary demand for the product. Companies employ
aggressive tools to ensure that a new product creates excitement and
demand within its target market.

Persuasive advertising is used when competition is stiff.

Companies rely on persuasive advertising to be able to keep its market
share.

Reminder advertising is very important for products that have

reached the maturity stage. Products attempt to maintain market position
even if they are already top of mind.

According to Shoemaker et al. (2007), the ideal hospitality

advertisement should accomplish five things:

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 1. Tangibilize the service element so the reader can mentally grasp
what is offered:
2. promise a benefit that can be delivered and/or provide solutions to
problems,

3. differentiate the property from that of the competition,

4. have positive effects on employees who must execute the promises;

and

5. capitalize on word of mouth.

Types of Advertising Execution

For advertising to achieve its objectives of differentiation,
tangibilizing the product, and having positive effects on employees and
customers, Kotler et al. (2010) present different execution styles, as
follows:

1. Slice of Life - shows how people use the product in a normal

setting.

2. Lifestyle - shows how product fits with one's way of life.

3. Fantasy - creates a "wonder" world around the product or its use.

4. Mood or image - builds positive images or moods around the

product such as beauty, love, fun, and serenity.

5. Musical - uses simple but catchy music effectively through product

jingles or songs.

6. Personality- creates a character that represents the product such

as Jollibee, the friendly Bee.

7. Technical expertise – reveals the company's expertise with the

product or service.

8. Scientific evidence – presents research or scientific evidence that

the brand is better than competing brands.

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 9. Testimonial evidence – features a highly credible person such as a
celebrity endorsing the product.

The Use of Celebrity Endorsers

Celebrity endorsement plays an important role in helping products

become more tangible and create differentiation (Rodriguez 2008). The use
of celebrity endorsers becomes a preferred strategy for promoting a
product or service because the celebrity lends his credibility to the product,
helps attract attention, provides a persuasive message, and targets the
audience based on the celebrity's demographic profile. Roll (2010)
elucidates the following three main aspects to consider in choosing a
celebrity endorser:

1. Attractiveness of the celebrity to create a positive impact on the

product.

2. Credibility of the celebrity expressed through expertise and

trustworthiness.

3. Meaning transfer between brand and celebrity which refers to the

compatibility of brand and celebrity in terms of identity, personality,
market positioning, and lifestyle.

DIRECT MARKETING

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 With the moving away of marketing from advertising to the
integrated marketing communications approach, direct marketing (DM) has
gained prominence and acceptance. In the field of tourism marketing,
which focuses on niche markets, the direct marketing approach is widely
used.
Direct marketing is an interactive system of marketing that uses
one or more advertising media to affect a measurable response. It seeks to
establish continuing relationships between a company and its regular
customers. Offers are sent to a customer database of people who are most
able, willing, and ready to buy the product (Kotler et al. 2010).

History of Direct Marketing

The direct marketing approach began in the 1800s as a way of

bringing products from the manufacturer to its end users the consumers.
DM climates retailers and middle men such that it goes directly to the
consumers through mailing of catalogues and product information. The
manufacturer then waits for the response of the targeted customers in the
form of purchase. Payments are made through postal money orders. After
which, the manufacturer delivers the product to the customer Imagine how
long this process takes since this began i the 1800s At present, DM has
evolved into various forms and means with the presence of faster means of
communication, technology, and transportation.

It has currently evolved to direct response and direct relationship

marketing. Airlines hotels, and resorts bald strong customer relationships
through awards programs and are using their customers database to match
their offers more carefully with individual customer. Technological
advancements have enabled companies and organizations to gather and
maintain information that will be helpful in categorizing and segmenting
the market based on specific characteristics. This way, products and
services can be tailored to specific segments of the market. Loyalty
rewards programs enable tourism-related establishments to keep a
database of regular customers and monitor their consumption and
spending patterns. These programs also help companies establish
relationships with their customers to ensure continued patronage and
repeat purchase.

Advantages of Direct Marketing

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 Direct marketing is an ideal promotional tool for products and
services that want to capture a niche market. Here are some advantages of
direct marketing.

1. Precision Targeting. Having a good database can help pinpoint

prospects based on prospect's lifestyles, demographics, purchasing
patterns, etc. The direct mail campaign can be very precise in
specifying its target market.

2. Personalized Messages. A person's name is the sweetest word in

the world. Prospective customers will definitely read through material
when their name is on it. Addressing specific customers personally
will capture their attention than generic and random messages.

3. Privacy. The company's offer is not visible to competitors since it is

personalized. The competition will not be able to monitor what the
offer is. Hence, they will not be able to match it.

4. Faster Sales. Direct marketing can yield to faster sales since it is

targeted to actual users of the product.

5. Variety of Packaging Options. A variety of packaging options are

available for direct mail campaigns limited only by the marketer's
creativity and budget.

6. Less Competition (from other media content). A letter or

package that is opened by the prospect will have less competition
from other media content compared to billboards, TV commercials,
and the like. The receiver would take more time read ing through
your content because it is personalized and unique.

7. Immediate Results. A response form or action is normally solicited

from the prospective customer, hence, results can be immediate

8. Measurability. The company knows the number of direct mailers

issued, hence, it will be easy to determine response rates

Elements of a Direct Marketing Campaign

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 There are three important elements that should be taken into
consideration when planning a direct marketing campaign. These are (1)
the list, (2) the message, and (3) the offer.

The list contains all the names and contact information of your
target market. This list should be accurate, updated, and narrowed down
based on the characteristics of the market who you think would most likely
be interested in your product offering This list may also be referred to as
your database. A good list which contains your prime prospects can
contribute greatly to the success of your DM campaign. A bad list will only
be a waste of your time and money

The message is important to be customized and personalized.

Marketers estimate that prospective customers have very limited attention
spans and it will only take a few seconds for them to make a judgment on
whether to continue reading your message or for them to proceed to doing
other things. Copywriters exert a lot of effort to ensure that they are able
to capture the prospective customers' attention enough for them to read
through the details of the product's offer. It takes a lot of skill to make the
message simple and interesting so as to make it easy for the prospect to
learn more about the product and the offer.

The offer should be interesting and worthy for the prospective

customer to consider making a purchase. It should move the prospective
client into action. Making the offer not available to other clients and
available for a limited time only, will help make the offer more appealing

Measures of Success

One of the advantages of direct marketing as a promotional tool is its

measurability. A properly executed direct marketing campaign can be
measured in several ways, namely

1. number of inquiries generated,

2. the ratio of conversions or purchases realized from inquiries

generated, and

3. its communication impact.

PERSONAL SELLING

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 Sales representatives are the company's link to customers. The
salesperson represents the business to its customers. Whatever impression
and image the salesperson has is the image that the clients form in their
minds about the company he represents Personal selling can be defined as
the person to person communication between a salesperson and a
prospective customer in which the needs are met in exchange for money or
resources

Since sales professionals are regular employees of the establishment,

with salaries and benefits, technical support, entertainment and
representation allowances, cost of travel etc, they are the most expensive
contact and communication tool used by a company (Kotler et al. 2010).
But since face-to-face communication allows the building of relationships
and feedback, personal selling is often the most effective tool available to
the tourism industry.

Sales representatives are an integral part of the success of the

tourism and hospitality industry. Kotler et al. (2010) outline the primary
tasks sales professionals perform for their companies as follows:

1. Prospecting. The sales professional is tasked to look into

potential customers or "prospects." A good and active database
should be maintained as well as networking skills to ensure that
there is a steady flow of new customers coming into the business.
Some sales personnel are pirated from competitors mainly
because they already have a relationship with customers availing
of services from competition.

2. Targeting. Sales professionals need to determine how to

prioritize limited time and resources to tap customers from their
list of prospects

3. Communicating. A constant stream of communication should

flow from customer to client and vice versa. Sales personnel need
to find ways and means to keep in touch with clients. This can be
done through giving information about new products and services
or generating new business from clients

4. Selling. Sales personnel are trained to do product presentations,

negotiations, overcoming objections, and closing the sale. This is
the core of what the salesperson does for the company

5. Servicing. Salespersons should not remain as order takers.

Instead, they should shift to becoming customer consultants-
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 helping clients solve problems and reordering technical/expert
assistance.

6. Information Gathering. Sales representatives assist the

company in gathering intelligence information such as what
competition is doing or what the company's needs are. They also
suggest innovations based on market demands.

7. Allocating. When there are product shortages or over-bookings,

sales people assist in deciding which clients to prioritize based on
past and future business engagements.

Selecting Sales Strategies

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1. Prevent erosion of key accounts. Key accounts are your clients
that sustain your company. These accounts should be managed
well, given the proper attention and further cultivated for more
frequent consumption and up selling Salespersons should be
trained how these key accounts can be kept and prevented from
switching to competitors.

2. Grow key accounts. Growing key accounts means adding more

companies into this key segment of the market. Cultivate
secondary or marginal accounts witi high potential to become key
accounts.

3. Grow selected marginal accounts. Marginal accounts can

provide the company with the much needed extra sales and
revenue when demand from key accounts is low Choose marginal
accounts that can be cultivated to provide additional consumption.

4. Eliminate selected marginal accounts. Some marginal

accounts may not be yielding any revenue for the company even
after several attempts to make it grow Know when to drop
accounts so that time and resources allotted for said accounts can
be channeled to other accounts

5. Retain selected marginal accounts with lower-cost sales

support. Maintain marginal accounts that take less time and
resources to service. That way, these accounts can produce
marginal sales without much effort and budget provided.

6. Obtain new business from selected prospects. Business

development should always be prioritized. New business from
existing accounts as well as promising prospects can be beneficial
to the growth of the company

Steps of the Sales Process

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 1. Prospecting and Qualifying Prospects

The sales process begins with identifying prospective customers

using a variety of sources. Prospects start out as leads; these may come
from people who have been referred by your current clients, clients of your
competitors, new users, data bases, and inquiries. These leads are then
qualified to determine whether investing time and resources in acquiring
the customer will be profitable.

Cold calling and sales blitzes are also effective ways of

prospecting and qualifying prospects. Cold calls are done by doing sales
calls or visits to different business categories in the hope of generating
business. The term cold call means the salesperson does not have any
prior business dealing with the company and does not know anyone from
the company. Cold calling is an essential part of the sales process. Every
salesperson should know how to make cold calls correctly in order to
acquire a steady flow of new customers. A sales blitz is carried out by a
group of sales people who conduct a large number of company visits over
a short period of time to target a specific business category, geographical
area or organizational type (Hsu et al 2008).

2. Pre-approach

The pre approach phase is the stage wherein the salesperson seeks
to understand the business opportunities that the prospects can provide
the company It is the stage where the salesperson makes himself familiar
with the business of the company and what the company's needs are in
order to ensure that there is a fit between what the company needs and
what the salesperson is selling.

A good salesperson will be able to identify how his product or service

can provide solutions to the prospects business challenges In order to
stand our amidst the crowd of account managers and sales executives from
other tourism properties, a good salesperson does not just offer products
and services. Instead he offers valuable solutions and mutually beneficial
partnerships

3. Approach

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 The approach is when the salesperson starts to communicate with
the prospect. Professionalism and strong social skills are very important in
establishing tap port especially for the initial meeting The salesperson
should also observe proper etiquette, protocols, and cultural sensitivity all
throughout the engagement.

4. Presentation and Demonstration

Knowing the prospect's needs and how to address his problems, and
having been given valuable official time to listen to the product offer, now
is the time to deliver an impressive product presentation. The product
presentation should be customized to the prospect and should include
features, benefits, and advantages of availing the products and services.
Prospective clients would want to hear bow the product offered can match
their needs more than what the competition offers Listening to what the
client does and does not say is an important skill salespersons need to
have as they make the presentation. This will help them understand the
needs of the client more and how to address questions they may have
during the negotiation phase.

5. Negotiation and Overcoming Objections

Negotiation and overcoming objections is a very challenging phase in

the sales process. This involves arriving at a mutually beneficial exchange
of value (Hsu et al. 2008) between the seller and the buyer. Negotiation is
the process of resolving differences between what the buyer wants and
what the seller wants to give in exchange for what the buyer can pay for.

The salesperson should be able to assess the likelihood of closing the

sale based on:

a. how the buyer interacts with the salesperson through his verbal
and non verbal cues,

b. how competition figures in the negotiation; and

c. Limitation set forth by management as to the maximum and

minimum levels of price and resources.

Objections come in different forms; it may be because of the price or

rat of your product, the actual product or service, or simply a lack of
interest in the product (Abbey 2008). There are different ways to respond
to objections. You may choose to deal with it directly or compensate for
the objection by offering other benefits that would be important to the
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client too. In order to help identify these objections, the salesperson may
subtly ask the client, "What can we offer that will make you buy from us?"
And if the salesperson is equipped to provide what the client asks, then a
sale is made.

6. Closing the Sale

Officially closing the sale is done through a signed contract.

Unfortunately, a lot of salespersons are too afraid to ask for the sales;
hence, they go back to their offices uncertain if they have closed the sale.
Closing the sale is asking the client directly or discretely any of the
following questions:

a. May I draft the contract and send it for your review?

b. Shall I call your office tomorrow and get details of the booking

C. Can I take your reservation now so you can avail of an extra %

from the purchase price?

7. Follow-up/Maintenance

Once the sale has been made and the service has been delivered, the
salesperson keeps the relationship going by doing follow-up activities such
as a phone call or personal visit to ensure that product and service quality
was provided. Customer satisfaction often results in repeat business and
positive word of mouth. In case of customer dissatisfaction, the follow-up
call will enable feedback and may be an avenue to address and respond to
concerns and complaints. Properly addressing customer complaints is the
key to managing an irate customer.

REFERENCE:
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TOURISM MARKETING BOOK
(2015 EDITION)
(MARICEL GATHALIAN-BADILLA)

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