Marketing

 a buzzword in the world of business;

Tourism

 Tourism is one of the leading industries of the future. Next to information technology and telecommunications,
tourism contributes largely to the generation of jobs and the strengthening of economies. Much attention has
been given to how tourism can continually grow. Just like any other business, marketing plays an integral role in
its continuing growth.
 Has become one of the world's largest and fastest-growing industries.

Many new destinations are emerging apart from traditional favorites

 Europe and;
 N. America

“The year 2021 will be about local tourism” - Bernadette Romulo Puyat, Former DOT Secretary rooting for domestic
tourism as a way to recover while across borders travel restrictions are still being implemented.

Marketing for tourism

• Marketing for tourism covers several levels, from the tourism destination as the product itself, down to the specific
tourism products and services that a tourist should avail of to complete the tourist experience.

• These products include transportation (airline, cruise ship, bus, etc.), accommodation, amenities, and souvenir shops,
among others.

• Tourism is not a single product. It is a combination of products and services which results in holistic experience for the
traveler.

UNIQUE CHARACTERISTICS OF THE TOURISM INDUSTRY

INTANGIBLE

 Tourism products cannot be touched, smelled, tasted, felt, nor heard prior to purchase Consumers rely on
photographs of the place, comments or reviews from those who have visited the place or availed of the services,
and promises from the company itself. Therefore, word of mouth is a highly effective means of promoting
tourist destinations.

INSEPERABLE

 The tourism product cannot be separated from the consumer. Products cannot be delivered to where the
consumer is. It is the consumer who goes to where the product is to avail of the product.

VARIABLE

 The tourism experience is likely to be different depending on when the product is availed, who one is with, and
how the service providers deliver the service at the time of consumption. This is the primary reason why
standardization of operations is crucial in the tourism industry. Chain and franchise establishments make it a
point to standardize the way they provide products and services to address the variability component of the
industry.
PERISHABLE

 The tourism product is one of the most highly perishable of products. Perishability, as used in this context, refers
to not being able to forward inventory to the next day. It does not refer to food being spoiled and thrown away.
Airline and restaurant seats, hotel rooms, and function rooms are perishable products, once a day passed and
there’s room or seats left, it it not recoverable nor can be sold again. Revenue management addresses the
perishability factor of the tourism product.

SEASONAL

 The seasonality of the tourism product hinders it from maximizing its profits all year round. Hence, intensified
marketing during the lean season will help increase demand for the product. This is also the reason most
tourism products, such as airlines and resorts, have different rates throughout the year.

SUBSTITUTABLE

 Competition in the tourism industry is intensifying. However, identifying one's competitive advantage and a
unique selling proposition may help make a tourism product less substitutable. Because of the aforementioned
characteristics of the tourism product, a marketing strategy needs to be developed to make the product
competitive in a highly commercialized marketplace.

TOURISM AS A HIGH-INVOLVEMENT PRODUCT

 Purchasing expensive goods usually involves a thorough and time-consuming process of researching and
contrasting brands, suppliers and product attributes. This attribute applies to travel accessories, home
furnishings, and real estate.
 Complexity of products may arise from the need to understand the features or details of the product.

HIGH INVOLVEMENT

 Expensive, Complex and Unrepeatable

LOW INVOLVEMENT

 Inexpensive, Simple, and Familiar

Marketing plays a vital role in the purchase of high involvement products. It leads consumers to think about the
product and its features as well as to assure them of its quality. It helps clarify doubts and lessen risks involved in the
purchase of the products. Since tourism products and services are high involvement products, customers also demand a
high level of satisfaction.

TOURISM MARKETING DEFINED

PHILIP KOTLER - “The process by which companies create value for customers and build strong relationships in order to
capture value from the customers in return.” 2017

“Social process where individuals and groups obtain what they need and want through creating and exchanging
products and value with others.” 2002

KOTLER, BOWENS, AND MAKENS - "finding. retaining and growing profitable customers"

The American Marketing Association (2013) approved a new definition: marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.
MARKETING AS A MANAGEMENT PROCESS

 Marketing information system

CORE MARKETING FUNCTIONS

 Marketing's key functions include marketing information management, financing, pricing, promotion,
product/service management, distribution, and selling.

THE MARKETING MIX

 Kotler (2010) says that marketing facilitates the exchange process and the development of relationships by
carefully examining the needs and wants of consumers, developing a product or service that satisfies these
needs, offering it at a certain price, making it available through a particular place or channel of distribution, and
developing a program of promotion to create awareness and interest.
INTEGRATED MARKETING COMMUNICATION APPROACH

 The Integrated Marketing Communications (IMC) approach was born from the need of businesses to enhance
the promotion of their products.

FACTORS THAT CONTRIBUTED TO THE GROWTH OF IMC

With the growth of technology, consumers have become less responsive to traditional advertising. People
have also shifted to using the computer and the Internet more often than traditional mass media channels. The
Internet has also allowed businesses to communicate in more creative ways to reach their target customers. As such,
businesses have shifted the compensation of advertising agencies from fixed compensation to incentive-based
compensation.

1. GROWTH OF TECHNOLOGY

With the growth of technology, consumers have become less responsive to traditional advertising. The remote control
allows viewers to change channels while commercials are going on. TV and radio have become more fragmented. People
have shifted to using the computer and the Internet more often than traditional mass media channels. The Internet has
also allowed businesses to communicate in more creative ways to their target customers. Interaction is enhanced with
the use of smartphones and wi-fi networks, where information is now available literally at our fingertips.

2. INCENTIVE-BASED COMPENSATION

There is a great challenge for advertising agencies to maximize resources and budget for better efficiency and
effectiveness. Businesses have shifted the compensation of advertising agencies from fixed compensation to incentive-
based compensation. The more effective their marketing strategy is, the higher their pay will be. This poses a challenge
for advertising agencies to come up with an integrated approach in mixing the different promotional tools to yield
maximum results.

3. CONSOLIDATION OF THE RETAIL INDUSTRY

The rise of big retailers has affected the way products are marketed and promoted. Big retailers can dictate the brands
that will make it to their shelves. Manufacturers are at the many of these big retailers, who can dictate discounts and
merchandising support they need from manufacturers.

4. DATABASE MARKETING

The rise of big retailers has affected the way products are marketed and promoted. Big retailers can dictate the brands
that will make it to their shelves. Manufacturers are at the many of these big retailers, who can dictate discounts and
merchandising support they need from manufacturers.