Script MSTM 512
Script MSTM 512
Script MSTM 512
INTRODUCTION
IMPORTANCE
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I. INTRODUCTION OF TOURISM MARKETING AND PROMOTION
Definition of Marketing
It is the process by which companies create value for customers and build strong
relationships to capture value from the customers in return. It is defined as a social
process where individuals and groups obtain what they need and want through creating
and exchanging products and value with others.
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Definition of Tourism and Marketing
Tourism marketing is a term that can be defined as a management process
where destinations, products, and services are designed, promoted, and distributed to
meet the needs and wants of prospective tourists. The main goal is to increase their
interest in visiting the location and generate revenue for the local economy.
Tourism marketing involves a wide range of strategies and tactics, including
advertising, public relations, events, and promotions. These strategies are designed to
reach specific target markets, such as leisure travelers, business travelers, and
adventure travelers, and to communicate the unique features and benefits of the
offerings. Tourism marketing also involves research and analysis to understand the
needs, preferences, and behaviors of target markets. This information is used to
develop marketing plans that resonate with customers and effectively communicate the
value proposition of the offerings.
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Unique Characteristics of The Tourism Industry
Intangibility- Tourism products cannot be touched, smelled, tasted, felt, or heard
before purchase. They cannot be subjected to prior scrutiny. For example, a
destination that promises fresh air from its beaches or scenic views of the
mountains cannot send a sample.
Inseparability- The tourism product cannot be separated from the consumer.
When tourists avail products and services, they must go to where the locations
are. Since what is being sold is experiences, the product and the consumer
cannot be in two different places. For example, a tourist who avails of airline
tickets needs to be physically present inside the airplane to have the product.
Variability- Services are people-based products and are inseparable from the
person who offers them. They are produced and offered by individuals. Due to
this, quality of service differs from person to person, and from time to time with
the same individual. Therefore, services cannot be standardized. Another reason
for the variability of services is the involvement of the guest or customer in the
process of service production, delivery, and consumption system. 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. For example, one may have gone to the same restaurant several
times and have a different dining experience each time.
Perishability- The tourism product is one of the most highly perishable of
products. Services cannot be stored. For example, hotel rooms not occupied for
one particular day are lost for that day. Products become perishable when they
can no longer be consumed today even when no one consumed them the day
before, unlike consumer products such as pens. If the pens were not sold today,
they can still be stored in a warehouse to be available tomorrow. Another
example, airline and restaurant seats, hotel rooms, and function rooms are
perishable products. A seat or a room that is not sold today cannot be sold some
other day.
Seasonality- Seasonality does not only refer to the seasons of the year or the
weather conditions. It also refers to the behavioral patterns of the travel market.
Seasonality generally indicates the phenomenon of fluctuations of demand or
supply in the tourism industry due to factors such. For example, weather
conditions and public and school holidays.
Substitutable- Competition in the tourism industry is intensifying. With new
destinations emerging and competing in the global marketplace, one destination
can easily be substituted for another destination.
Marketing plays a vital role in the purchase of tourism products. Because of the
characteristics mentioned above, a marketing strategy needs to be developed to make
the product competitive in a highly commercialized marketplace.
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Key Players in the Tourism and Hospitality Industry
1. Private and Non-profit Sector- This consists of travel agencies or tour operator
associations, financial and banking institutions, financial and banking institutions,
educational institutions, and insurance
2. Public Sector- This sector is composed of the provincial tourism organizations
that work together to create more attractive tourism products. In the Philippines,
the Tourism Promotions Board (TPB) is the government corporation dedicated to
the promotion of the Philippines as a meeting and convention destination
3. Transportation- Good transportation is important and beneficial for the tourism
industry Developing countries such as the Philippines invest heavily to make
improvements in the transportation system.
a) Roads- Although the Philippines has much to offer in terms of tourism
products, it has been hampered because of poor infrastructure.
b) Airlines- Airlines now are experiencing demand both locally and
internationally. Airports now around the world have been on constant
improvement of facilities.
c) Cruise- More and more, the cruise sector is becoming a popular and
successful component of the tourism industry. In the past, cruise travel
was just for the rich passengers who wanted to travel in luxury without any
constraints on time and money.
d) Railways- Some countries in the Philippines have invested large amounts
of money in their trains to solve the transportation problems.
4. Accommodations- It consists of hotels, bed and breakfasts, tourist residences,
holiday dwellings, timeshare apartments, and campsites. In big cities hotels and
chains of hotels are very common.
5. Food and Beverages- These are companies involved in the process, packaging,
and distribution of fresh and prepared foods, in addition to prepackaged foods.
Both alcoholic and non-alcoholic beverages are part of this sector.
6. Attractions- It is classified into natural and man-made. A lot of tourists are
fascinated with those that provide entertainment.
7. Events and Conferences- Events are vital because of their tourist, social, and
cultural functions as well as to the local and national development. Events
provide a primary opportunity to know the local culture and experience the
importance of the place.
8. Intermediaries- Tour operators and wholesalers, travel agents, travel specialists,
and online traveling agencies are important players in the tourism industry.
9. The Tourists- It is the people who bring revenues to the tourism industry as a
whole.
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The Marketing Mix
A marketing mix is an essential tool for any brand or organization that consists of a set
of tools and plans of action by which the brand promotes its product and holds an
indomitable place It helps the brand make a differentiable and reputed name for them in
the long run. The company needs to analyze its target consumers, the market share of
its products, and its competitors to develop strong marketing mixes. Element of the
Marketing Mix
Product- refers to the service a company wishes to sell. This could be
flights in the case of an airline or rooms in the case of a hotel
Place- refers to the location where the customers buy the collection of
services. It is how the product will be made available to consumers in the
market, selection of distribution channels, and partners.
Promotion- It is the specific combination of marketing techniques such as
advertising, personal sales, public relations, and other related activities.
The promotion gives details of the product and the price.
Pricing- It is part of a comprehensive revenue management and pricing
plan. This price has to match the product., but good marketing makes the
price seem more attractive. the same or give a discount for the same
features.
People- Since the products are a collection of services, the people who
provide the services are key to the success of the transaction. The people
who would include those who interact with guests include managers,
receptionists, concierge staff, cleaners, spa staff, waiters, and other staff.
Operators must have top-level service to initially complete the sale and to
encourage repeat customers.
Process- refers to the procedures, mechanisms, and flow of activities that
occur when the customer and the business interact with each other. The
key processes for example in a luxury hotel include the things that happen
when a guest books a room, checks in, stays in the hotel, and checks out.
Each of these will have a unique and formal process associated with them
designed to delight the customer.
Physical evidence- These are ways in which businesses can demonstrate
their marketing claims and customers can document their experiences
such as stories, reviews, blog posts, or in-location signage and
components
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Marketing as a Management Process
1. Marketing Information System- With the advent of technology, the provision of
a marketing information system enables an organization to compile an updated
set of information about its customers, competitors, and the organization’s
capability and effectiveness.
2. Marketing Planning- This involves an analysis of the marketing environment
about the potential of one’s business. It also involves setting up objectives and
an evaluation of the milestones that the company has reached.
3. Planning Tactical Campaigns- This step ensures practical and realistic tactical
campaigns are conducted in support of the comprehensive marketing strategy.
4. Marketing Operations- This process involves the challenging part of
implementing the planned strategic and tactical campaigns by coordinating with
all stakeholders, finetuning the marketing mix as they unfold, and ensuring the
activities are conducted as planned.
5. Monitoring and Control- This involves the ongoing process of evaluating sales
data and financial performance versus marketing activities conducted. It also
includes the handling of customer feedback and complaints and coordination with
what the staff has to say about the marketing campaigns. Lastly, it also includes
being aware of what competitors are doing.
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Marketing Management and Philosophies
Marketing Concepts or Marketing Management Philosophies are the
philosophies used by businesses to guide their marketing efforts. Production Concept-
works an assumption that consumers prefer a product that is inexpensive and widely
available. Hence, the companies using this concept focus on producing more of the
product and making sure that it is available to the customer everywhere easily. A low
price may attract new customers, but the focus is just on production and not on product
quality.
1. Product Concept- assumes that consumers will favor products that have quality,
performance, and innovative features. Hence under this concept, the focus of
marketing is to create continuous product improvements.
2. Selling Concept- concentrates on making every possible sale of the product,
regardless of the quality of the product or the need of the customer. The main
focus is to make money. This philosophy does not include building relations with
customers.
3. Marketing Concept- works on an assumption that consumers buy products that
fulfill their needs. Hence, companies have to produce a product that satisfies the
needs of their customers. Businesses following the marketing concept conduct
research to learn about the customers’ needs and wants and come out with
products to satisfy the same better than the competitors.
4. Societal Marketing Concept- it focuses on society’s well-being as well. The
business focuses on how to fulfill the needs of the customer without affecting the
environment, and natural resources and focusing on society’s well-being.
5. Holistic Marketing Concept- it considers business and all its parts as one single
entity and gives a shared purpose to every activity and person related to that
business. A business is like the human body, has different parts, but it’s only able
to function properly when all those parts work together towards the same
objective.
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II. MANAGING CUSTOMER INFORMATION TO GAIN CUSTOMER INSIGHTS
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I. Personal Characteristics Affecting Consumer Behavior- Cultural, social,
personal, and psychological traits have a big impact on what consumers buy.
These elements consist of the following:
A. Cultural factors- They have the biggest and most lasting impact on how
consumers behave. We look at the influence of the buyer's social class,
society, and subculture.
1) Culture The travel and hospitality industries are fundamentally
influenced by culture. It dictates where we stay, how we travel, what
we eat, and when we travel. Culture is dynamic and changes with the
times. Marketers are always looking for signs of cultural change to
develop new goods and services that could be well-received by
consumers.
2) Subculture- a collection of people who, because of their shared
experiences and circumstances, have similar value systems.
Subcultures encompass racial groups, nationalities, faiths, and
geographical areas. Marketers typically create products and
marketing campaigns that are specifically suited to the needs of the
numerous subcultures that comprise significant market segments.
African American Consumers- Compared to other segments, they
exhibit greater consciousness and are highly motivated by choices
and quality.
B. Social Factors- These comprise the social roles, families, groups, and
status of the customers.
1) Group and Social Networks- One's behavior is influenced by
numerous organizations. Membership groups are organizations to
which an individual belongs and have a direct effect.
2) Word-of-mouth influence and Buzz Marketing- It may significantly
affect how customers behave when making purchases. Personal
recommendations and statements from reliable friends, colleagues,
and customers are typically more reliable than those from
commercial sources, like salespeople or commercials.
3) Online Social Networks- People interact and exchange ideas in
online social networks, which can be found on blogs, social
networking sites, webpages, or even virtual worlds.
4) Family- Family members have a big impact on what buyers do.
5) Roles and Status- One is a member of numerous groups, including
clubs, organizations, and families.
C. Personal Factors- These include things like stage of life, line of work,
financial status, way of life, disposition, and self-perception.
1) Age and Life-Cycle Stage- Age-related preferences are common in
leisure pursuits, travel locations, cuisine, and entertainment.
2) Occupation- Occupational groups with above-average interest in
their products are targeted by marketers.
3) Economic Situation- The choice of products and whether or not to
buy a given product are significantly influenced by an individual's
financial circumstances.
4) Lifestyle- A person's pattern of living as shown by their interests,
hobbies, and viewpoints is referred to as their lifestyle. It shows how
the "whole person" engages with the world around them.
5) Personality and Self-Concept- The purchasing behavior of each
individual is influenced by their personality. When we talk about
personality, we're talking about unique psychological traits that result
in comparatively stable and long-lasting reactions to one's
surroundings.
D. Psychological Factors- Additionally, four main psychological factors—
motivation, perception, learning, and attitudes—have an impact on an
individual's purchasing decisions.
1) Motivation- A person is always in need of various things. Some are
biological, resulting from discomfort, hunger, and thirst. It is a need
that is strong enough to drive someone to look for ways to satisfy it.
2) Perception- A driven individual is prepared to take action.
3) Learning- It is the behavioral alterations brought about by
experiences. Human conduct is mostly learned. According to learning
theorists, drives, stimuli, cues, responses, and reinforcement interact
to produce learning.
4) Beliefs and attitudes- People learn and act their way into beliefs
and attitudes that affect their purchasing decisions. A person's belief
is a descriptive idea they have about something.
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II. Buyer Decision Process
A. Need Recognition- The Buyer acknowledges a need or issue.
B. Information Search- A consumer who has been aroused could or might
not look for further details. A consumer's propensity to search will vary
depending on factors like drive, amount of initial information
C. Evaluation of Alternatives- The brand image is the collection of opinions
people have about a specific brand. Fourth, it is considered that each
property has a utility function for the consumer. Fifth, the consumer uses
some sort of evaluation process to determine their sentiments toward the
various brands.
D. Purchase Decision- The consumer creates purchase intents and ranks
brands in the choice set during the evaluation stage.
E. Post-purchase behavior- After making a purchase, the customer will
either be happy or unhappy and take post-buy behaviors that the market is
very interested in seeing.
I. Attraction Strategies:
1. Targeted Marketing:
Strategy: Understand your target audience and tailor your marketing
messages to resonate with their needs and preferences.
Implementation: Conduct market research, analyze customer
demographics, and create personalized marketing campaigns.
2. Online Presence and Digital Marketing:
Strategy: Establish a strong online presence through a user-friendly
website and leverage digital marketing channels.
Implementation: Utilize search engine optimization (SEO), social media
marketing, email campaigns, and online advertising to reach a wider
audience.
3. Special Promotions and Discounts:
Strategy: Offer limited-time promotions, discounts, or exclusive deals to
attract new customers.
Implementation: Advertise special offers through various channels and
create a sense of urgency to encourage immediate action.
4. Quality Content and Education:
Strategy: Provide valuable content that educates and engages your target
audience.
Implementation: Share informative blog posts, videos, or webinars
related to your products or services, establishing your brand as an
authority in the industry.
5. Referral Programs:
Strategy: Encourage existing customers to refer friends and family by
offering incentives.
Implementation: Create a referral program with rewards for both the
existing customer and the new customer, fostering a sense of loyalty.
Retention Strategies:
1. Exceptional Customer Service:
Strategy: Provide outstanding customer service to create a positive and
memorable experience.
Implementation: Train staff, implement efficient customer support
channels, and actively seek feedback for continuous improvement.
2. Loyalty Programs:
Strategy: Implement a loyalty program to reward repeat customers.
Implementation: Offer points, discounts, or exclusive perks for every
purchase, encouraging customers to continue choosing your business.
3. Personalization:
Strategy: Customize your interactions and offerings based on customer
preferences and purchase history.
Implementation: Utilize customer data to tailor product
recommendations, personalized emails, and targeted marketing
messages.
4. Regular Communication:
Strategy: Stay in touch with customers to keep your brand top-of-mind.
Implementation: Send regular newsletters, updates, or promotional offers
to maintain ongoing engagement and demonstrate appreciation.
5. Community Engagement:
Strategy: Build a sense of community around your brand.
Implementation: Host events, engage in social media conversations, and
actively participate in community initiatives to connect with customers on a
personal level.
6. Quality Products and Services:
Strategy: Consistently deliver high-quality products or services.
Implementation: Regularly evaluate and improve your offerings based on
customer feedback and changing market trends.
7. Surprise and Delight:
Strategy: Exceed customer expectations through unexpected gestures.
Implementation: Surprise customers with small gifts, exclusive previews,
or personalized thank-you notes to create a positive emotional connection.
By implementing a combination of these strategies, businesses can create a holistic
approach to attract new customers and build lasting relationships with existing ones.
The key is to understand your customers, adapt to their evolving needs, and
consistently provide value throughout their journey with your brand.
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PROMOTIONAL TOOLS
Promotion includes advertising, direct mailing, promotion, merchandising,
salesforce activities, brochure production, Internet communications, and public relations
activities (Middleton, Fyal, and Morgan 2010, cited in Babadilla, 2021).
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Trends in Tourism and Hospitality
1. Experiential Travel- Tourists travel in search of more authentic experiences.
2. Sustainable Travel- Tourists are becoming more concerned about the
environment and sustainability.
3. Growth of Digital Technology- It has given a new wave of tourists and tourism
development and marketing.
4. Augmented Reality/Virtual Reality- Sometimes known as 360-degree video.
Tourism companies are using this method to show would-be visitors a tourist site,
hotel room, or cabin of a cruise ship to provide information on what can be seen
on site or of the services offered.
5. Solo Travel- Solo travelers seek freedom, personal growth, and introspection.
They travel to maximize “me-time”.
6. Wellness Travel- Travelers who travel for the primary purpose of achieving,
promoting, and maintaining personal balance- physically, mentally, and
spiritually.
7. Adventure Travel- Adrenaline-pimping activities to push one’s limits, especially
for the millennial and denial generations on the rise.
8. Global Growth of Tourist Destinations- Countries and destinations have
started to invest in new tourism sites and enhance existing tourism facilities.
9. DIY Tours- DIY tours will continue to rise. Tourists are in search of personalized
experiences they can create and manage themselves.
10. Health and Safety Protocols- In light of the global pandemic caused by COVID-
19, tourists will most likely look into the health and safety protocols of
destinations
11. Slow Travel- The interest in slow food and slow travel is growing. This kind of
travel is focused more on immersion than sightseeing. In contrast to the fast pace
of seeing so many attractions during one weekend and mainly eating fast food,
slow travel is all about taking in the local cuisine and interacting with the
community to appreciate the local culture and reconnect with self and family.