UNIT 1 - Module in THC6 Tourism and Hospitality Marketing
UNIT 1 - Module in THC6 Tourism and Hospitality Marketing
UNIT 1 - Module in THC6 Tourism and Hospitality Marketing
Course Description: This course will equip students with the necessary skills to develop
actual marketing campaigns for a business within the tourism and
hospitality industry. Emphasis is on the analysis of the market, its
competition and its product; preparation of a financial budget and
the development of short-term and long-range strategies to achieve
desired profit through effective advertising, sales and an effective
public relations plan.
Lesson Framework: Lesson Outline: This presents the lessons included in each chapter.
Scoring Rubric: This serves as a guide for the students on how their
performance assessment output is rated.
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Table of Contents
UNIT 1: INTRODUCTION TO TOURISM AND HOSPTALITY MARKETING
Lesson 1: The Marketing Concept for the Service Industry
I. Eras in the History of Marketing
II. Core Concepts of Marketing
III. Marketing Management Philosophies
Lesson 2: Marketing Considerations
I. The Four P’s of Marketing
II. Product Considerations
III. Pricing Considerations
IV. Place Considerations
V. Promotion Considerations
Lesson 3: The Extended Marketing Mix
Lesson 4: The Marketing Process
CHAPTER 2 DEALING WITH THE MARKET
Lesson 1: Market Segmentation
I. Market Measurement
II. Consumer Behavior
III. Market Segmentation
IV. Market Targeting
V. Market Positioning
VI. Product Life Cycle
Lesson 2: Competition Analysis and Product Evaluation
I. Competitive Analysis
II. Product Evaluation
III. Product Planning and Development
Lesson 3: Environmental Influences on Tourism and Hospitality
I. Type of Appeal to Use in the Message
II. Communication Channels
UNIT 3 MARKETING COMMUNICATION AND PLANNING
Lesson 1: The Marketing Communication
I. Traditional media
II. Digital marketing
III. Public relations
IV. Sales promotion
V. Personal selling
Lesson 2 Ethics and Legalities in Tourism and Hospitality Marketing
I. Ethical considerations
II. Legal framework
Lesson 3: Developing a Marketing Plan Blueprint
I. SWOT analysis
II. Target market identification
III. Positioning
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IV. Marketing plan components
V. Campaign development
VI. Budgeting and scheduling
VII. Evaluation and control
REFERENCES
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Preface
“A good company offers excellent products and services. A great company also offers
excellent products and services but also strives to make the world a better place.” ― Philip
Kotler
This course, THC6 – Tourism and Hospitality Marketing, is designed to equip Hospitality
Management students with the essential skills to develop and execute successful marketing
campaigns for the tourism and hospitality industry. By focusing on market analysis,
competitive assessment, financial planning, and strategic development, students will gain
practical experience in advertising, sales, and public relations.
This course aims to cultivate students' ability to create effective and socially responsible
marketing strategies. Throughout the semester, we will explore topics such as marketing
exploration, consumer behavior, branding, advertising, public relations, and digital
marketing.
The learning materials and assessments have been carefully selected to align with industry
standards and prepare students for their future careers in the dynamic tourism and hospitality
sector. I am confident that this course will provide valuable insights and practical skills to
help you excel in your chosen field.
The Author
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UNIT 1:
INTRODUCTION TO TOURISM AND
HOSPTALITY MARKETING
UNIT 1: INTRODUCTION TO TOURISM AND HOSPTALITY MARKETING
Lesson 1: The Marketing Concept for the Service Industry
I. Eras in the History of Marketing
II. Core Concepts of Marketing
III. Marketing Management Philosophies
Lesson 2: Marketing Considerations
I. The Four P’s of Marketing
II. Product Considerations
III. Pricing Considerations
IV. Place Considerations
V. Promotion Considerations
Lesson 3: The Extended Marketing Mix
Lesson 4: The Marketing Process
The tourism and hospitality industry thrives on exceptional customer experiences. Effective
marketing in this sector involves:
• Crafting Unique Experiences - Developing products and services that cater to specific
traveler segments and create lasting memories.
• Building Strong Brands - Establishing a distinctive brand identity that resonates with
the target audience and positions the business as a preferred choice.
• Strategic Communication - Leveraging various channels to effectively promote
destinations, accommodations, and attractions.
• Delivering Exceptional Service - Going beyond guest expectations to foster loyalty
and positive word-of-mouth.
• Nurturing Customer Relationships - Building long-term connections through
personalized experiences and loyalty programs.
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In essence, tourism and hospitality marketing revolves around creating unforgettable guest
experiences while driving business growth.
The exchange process is the essence of marketing in which two parties give something of value
to each other to satisfy perceived needs.
1. Need
- A state of felt deprivation
- Include physical, social & individual needs
2. Want
- The form taken by a human need as shaped by culture and individual personality
3. Demand
- Human wants that are backed up by buying power
4. Product
- Anything that can be offered to a market for attention, acquisition, use or consumption
that might satisfy a want or need.
- Includes physical objects, services, persons, places, organization and idea.
5. Service
- Any activity at benefit that one party can offer to another that is essentially intangible
& does not result in the ownership of anything.
6. Value
- The difference between the values the customer gains from owning and using a
product and the costs of obtaining the product.
7. Exchange
- The act of obtaining a desired object from someone by offering something in return.
8. Transaction
- A trade between two parties that involves at least two things of value agreed-upon
conditions, and a place of agreement.
9. Market
- The set of all actual and potential buyers of a product or service.
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10. Customer Satisfaction
- This depends on a product’s perceived performance in delivering value relative to a
buyer’s expectation. If performance exceeds expectations, the buyer is delighted
(Certainly a worthy goal of the marketing company).
Marketing concepts (or marketing management philosophies) are the philosophies used by
the businesses to guide their marketing efforts. Marketing concepts relate to the philosophy a
business use to identify and fulfill the needs of its customers, benefiting both the customer
and the company.
1. Production Concept
- Focuses on maximizing production and distribution. Assumes
customers prioritize low prices and availability. Ignores product
quality and customer needs. Effective only when demand exceeds
supply.
2. Product Concept
Emphasizes product quality over price and availability.
Assumes customers prefer superior products. Can lead to
high prices and neglect of customer needs.
3. Selling Concept
- Prioritizes sales over customer satisfaction. Uses
aggressive sales tactics to push products, regardless of
customer needs. Builds short-term relationships and often
neglects long-term customer loyalty.
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4. Marketing Concept
- Focuses on understanding and meeting customer needs
and wants. Conducts market research to develop products
and services that deliver value. Builds strong customer
relationships and long-term loyalty.
1. Product Decision – These covers decisions about the products and services to be sold
to the guests.
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2. Price Decisions – this covers the decisions about the price to be charged for a product
or service.
Product
- Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or a need.
- A tangible object, a service or an idea that is offered by one party in exchange for
something; money, patronage, moral support, votes and the like.
- It may also refer to a place or an activity.
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The Three Levels of Products
Product Attributes
Developing a product involves defining the benefits that it will offer. These are benefits
communicated and delivered by product attributes such as quality, features and design.
1. Product Quality – This is the ability of a product to perform its functions. This includes
the product’s overall durability, reliability, precision, ease of operation and repair, and
other valued attributes. Product quality looks at how good or how bad a product is.
2. Product Features – These are competitive tools for differentiating the company’s
product from competitors’ products.
3. Product Design – This is another way to add customer value. This is more than skin
deep – going to the very heart of a product. This is one of the most potent tools for
differentiating and positioning a company’s products and services against its
competitors.
Quality
• Safe and reliable rides
• Exceptional customer service
• Immaculate cleanliness
Design
• Distinct and immersive theming
• Iconic character design
• Interactive queue experiences
Features
• Variety of rides for all ages
• Live shows, parades, and character interactions
• Diverse dining options
• Unique merchandise and souvenirs
• Accessibility features
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Creating a Brand
Creating a brand is very significant, especially when developing a new product. The brand
can add significant value when it is well recognized and has positive associations in the mind
of the consumer.
A brand refers to the name, term, design, symbol or any other features that identifies one
seller’s good or service as distinct from another.
Branding is creating a unique identity, while marketing promotes and sells that identity
Branding
• Identity - Philippine Airlines positions itself as the flag carrier of the Philippines,
emphasizing Filipino hospitality and service.
• Image - The airline strives to convey a sense of national pride and world-class service.
Marketing
• Promotion - PAL often uses promotions, such as seat sales and bundled packages, to
attract customers.
• Distribution - The airline has a wide distribution network, including online booking,
travel agents, and airport counters.
• Communication - PAL utilizes various channels like social media, advertising, and
public relations to connect with its target market.
Benefits of Branding
Brand Strategies
1. Line Extensions – These are additional items in given product category under the
same brand name, such as new flavors, forms, colors, ingredients or package sizes.
2. Brand Extensions – This involves the use of a successful brand name when launching
new or modified products in a new category.
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3. Multi-branding – This is a strategy under which a seller develops two or more brands
in the same product category, which allows a company to lock up more reseller “shelf
space”. This is done when company wants to protect its major brand by setting up
flanker or fighter brands.
4. New Brands – This strategy is applied when a company enters a new product category
for which none of the company’s current brand names are appropriate. Other reason
for utilizing this technique is when the company believes that the power of its existing
brand names is waning and a new brand is needed. This is true when a lot of brands
of the same product are out in the market.
Packaging is important to attract buyers. This is also similar to labelling as this provides
information to the consumers.
The activity of designing and producing the container or wrapper for a product is called
packaging. The container or wrapper is called the package.
Label – may be a simple tag attached to the product or a complex graphic that is part of
the package. It may carry only the brand name or a great deal of information.
Pricing Considerations
Price – It is the amount a customer pays for a tourism or hospitality product or service. It's
influenced by factors like demand, competition, and perceived value.
Pricing – It is the process of setting a price for a tourism or hospitality product or service. It
involves balancing supply and demand to maximize revenue.
Kotler (2000) proposed a generic pricing model that recommends eight stages in setting prices:
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1. Define Pricing Objectives - Determine what you want to achieve (e.g., maximize profit,
fill rooms, attract a specific clientele).
2. Understand the Market - Analyze your target market's willingness to pay and
competitor pricing.
3. Calculate Costs - Determine the expenses associated with your product or service (e.g.,
room maintenance, food costs).
4. Set Pricing Strategy - Choose a pricing approach (e.g., competitive, value-based, or
cost-plus).
5. Establish Prices - Determine specific prices for rooms, packages, food, and beverages.
Factors that influence price decisions can be sorted in to two major categories
(Kotler, 2000):
1. External environmental factors, over which companies have little (if any) control.
Pricing Strategies
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• Seasonal discount – This price reduction to buyers who buy merchandise or
services out of season.
4. Segmented pricing – companies will often adjust their basic prices to allow for
differences in customers, products and locations.
• Customer segment pricing – different customers pay different prices for the
same product or services.
• Location pricing – different locations are priced differently, even though
the cost of offering each location is the same.
• Time pricing – prices may vary by the season, the month, the day and even
the hour.
5. Cost-based pricing – This is a pricing strategy wherein firms stake into account the
cost of production and distribution, and then decide on a markup which they would
like for profit to come to their final pricing decisions.
6. Penetration pricing – A strategy that is used an organization to set a low price to
increase sales and market share.
7. Skimming pricing – Marketers in this strategy sets an initial high price and then slowly
lowers the price to make the product available to a wider market.
8. Competition pricing – Marketers sets a price in comparison with competitors.
Place in tourism and hospitality refers to how and where customers access products or
services. This includes the location of businesses, distribution channels (like travel agencies or
online platforms), and the overall customer journey.
Forms of Distribution
1. Direct Distribution - Selling directly to customers (e.g., hotel website, restaurant
reservations).
2. Indirect Distribution - Using intermediaries (e.g., travel agents, online booking
platforms).
Distribution Channels
- Distribution Channel is the path a product or service takes from the producer to the
consumer. It involves the organizations and processes that get tourism and hospitality
offerings to customers. For example, a hotel might use its website (direct channel) to
sell rooms, or partner with online travel agencies like Booking.com (indirect channel).
Distribution channels are the pathways through which tourism and hospitality products or
services reach customers. They can be direct or indirect.
• Direct channels involve selling directly to customers (e.g., booking a hotel room on
the hotel's website).
• Indirect channels involve intermediaries who facilitate the sale (e.g., booking a flight
through a travel agent).
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Key Intermediaries in Tourism and Hospitality
1. Agents - Represent the seller and facilitate transactions (e.g., travel agents, online
booking platforms).
2. Wholesalers - Purchase products in bulk and resell to retailers (less common in tourism
but can include tour wholesalers).
3. Retailers - Sell directly to consumers (e.g., travel agencies, tour operators, destination
management companies).
Types of Appeal
1. Rational Appeals – message appeal that relates to the audience’s self-interest and show
that the product will produce the claimed benefits.
2. Emotional Appeals – message appeals that attempt to stir up negative or positive
emotions that will motivate purchase.
3. Moral Appeals – Advertising messages directed to the audience’s sense of what is “right”
or “proper”.
• Message Structure – The communicator also must decide how to handle three
message-structure issues.
1. Whether to draw a conclusion or leave it to the audience.
2. Whether to present a one-sided argument or two-sided argument.
3. Whether to present the strongest arguments first or last.
• Message Format – A strong format of the message is very important to appeal to the
targeted market.
Step 4: Choose a media
• Personal Communication Channels
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- These are channels through which two or more people communicate directly with
each other, including face to face, person to audience, over the telephone or
through the mail.
• Non-personal Communication Channels
- These are media that carry messages without personal contact or feedback,
including major media, atmospheres and events.
Step 5: Select the message source
When the media has been chosen, the next step is to know who will convey the message. This
is because the impact of the message on the audience is also affected by how the audience
views the sender. This only means that messages delivered by highly credible sources are
more persuasive.
Sources that Make the Source Credible:
• Expertise
• Trustworthiness
• Likeability
Promotional tools are methods used to communicate the value of a tourism or hospitality
product or service to potential customers. These include:
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LESSON 3: THE EXTENDED MARKETING MIX
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Lesson 4: The Marketing Process
✓ Understanding the Target Market - Identify and profile potential visitors based on
demographics, psychographics, and behavior.
✓ Competitive Analysis - Evaluate competitors' offerings, strengths, weaknesses, and
market positioning.
✓ Destination Analysis - Assess the destination's attractions, infrastructure, and unique
selling points.
✓ Setting Clear Goals - Define specific, measurable, achievable, relevant, and time-
bound (SMART) objectives.
✓ Alignment with Business Goals - Ensure marketing objectives support the overall
business strategy.
This process provides a structured framework for developing and implementing successful
marketing campaigns in the tourism and hospitality industry.
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