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Table of Contents TASK 1: Understanding the concepts and principles of marketing in the travel and tourism sector............2 1.1 Discussing the core concepts of marketing for the travel and tourism sector.....................................2 1.2 Assessing the impact of the marketing environment on individual travel and tourism businesses and tourist destination....................................................................................................................................3 1.3 Discussing the factors affecting consumer motivation and demand in the travel and tourism sector. 3 1.4 Analysing the principles of market segmentation and its uses in marketing planning........................4 TASK 2: Understand the role of marketing as a management tool in travel and tourism.............................6 2.1 Analyse the importance of strategic marketing planning for a selected travel and tourism business or tourist destination................................................................................................................................6 2.2 Discuss the relevance of marketing research and market information to managers in the travel and tourism sector..........................................................................................................................................7 2.3 Assess the influence of marketing on society.....................................................................................7 Task 3: Understanding the role of the marketing mix in the travel and tourism sector................................9 3.1 Discuss issues in the product, price and place elements of the marketing mix...................................9 3.2 Assess the importance of service sector mix elements to the travel sector.......................................10 3.3 Apply the concept of the total tourism product to an individual tourism business – London Gatwick airport....................................................................................................................................................11 TASK 4: being able to use the promotional mix in travel and tourism......................................................13 4.1 Assess the integrated nature and role of the promotional mix..........................................................13 4.2 Plan and justify an integrated promotional campaign for the Sheraton hotel...................................14 Bibliography..............................................................................................................................................16

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TASK 1: Understanding the concepts and principles of marketing in the travel and tourism sector 1.1 Discussing the core concepts of marketing for the travel and tourism sector Marketing concept and orientation: Marketing in the travel and tourism sector is an important aspect.

The travel and tourism sector has emerged as a total market product which caters to diverse demands of the consumers regarding various products related to travel. Travel and tourism is growing fast and emerging as one of the largest industry of the world. Numerous private and public sector enterprises are involved to make the travel and tourism an integrated marketing product.

Customer

needs,

wants

and

demands,

products (and services) and market Demand of travel and tourism: The demand is regulated by the inbound and the outbound tourism. Tourists are also residents of the host country visiting destinations of their own country.

The ability of leisure time, paid leaves and the increase in paying capacity has led to the increase in demand of the travel and tourism sector. The need of the travel and tourism arises from the source of origin of the tourists that is the place where they reside and is fulfilled in the area they choose to visit. (Middleton & Clarke, 2001) The entire package congloimerate of different products and services includes the part of total tourism products which may include travel, transpoort, food , lodging, sight seeing etc. I n the case study the tourism product is the Thomson Management’s cultural package of 6 days to visit Denmark, Amsterdam, Lisbon and Porto. (Northwest Territories Industry,Tourism and Investment, 2014)

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Being a service industry, customer satisfaction is an integral part of this industry. The marketing product has to be designed keeping the preferences and mind-sets of the customers such as you cannot offer an adventure trip to a customer who is having a critical health condition.

1.2 Assessing the impact of the marketing environment on individual travel and tourism businesses and tourist destination Individual travel and tourism business has been greatly benefited by the marketing environment.

Travel sector is growing and tour operators being an important part of the growth and development of the travel sector. The marketing environment has brought increase in economic income and more employment opportunities for the travel and tourism business and the destinations but on the other hand it has led to exhaustion of resources, environmental pollution due to excessive human invading, destruction in the local cultural heritage, drug trafficking and prostitution.

Individual tourism businesses serve as intermediaries between the tourists and the service providers they are the ones responsible for influencing the customer’s choice and preferences of destinations and tourism. They play an important and fundamental role in to foster the development of sustainable tourism. Customers are in direct interface to these tour operators so their initiative to sustain and ethical practice in travel and tourism can prove to be very useful initiative. Marketing environment may have both positive and negative impact on the tourist destinations. (Tour Operators Initiative, 2003) 1.3 Discussing the factors affecting consumer motivation and demand in the travel and tourism sector Consumer in the travel and tourism sector are influenced by the two phases the generic phase where the consumer decides do they need a holiday or not once they decide on having a holiday on the next stage they decide where they should be going. Various factors serves as inputs deciding where the consumers should go that includes personal characteristics, attitudes and reason for travelling.

Internet is also a crucial influence for people opting for travel and tourism once people has decided that they need a vacation, surfing on the internet give them a host of choices to select the 3

destination of their choice all relevant information about destinations, travel package and products and services are available on internets. These lucrative packages can easily attract customer’s interest and enable them to select the package of their choice. Thomson holidays should also devise an attractive promotional strategy to allure customers and be the tour operator of their choice.

The demand and supply of the travel and tourism product is also seasonal and increases on certain holiday seasons when people opt for travel and tourism such as Christmas vacations. The ageing population demands of hotels and services of full facility so that they could have the convenience and safety in their tour. The demand also depends on personal budgets such as if Thomson Holidays price the package at premium levels people having budget constraints will not be able to afford it.

Personal safety and security is also an important factor affecting decisions and behaviour of the consumers of the travel and tourism sector. (Gossling, Scott, Hall, Ceron, & Dubois, 2012) 1.4 Analysing the principles of market segmentation and its uses in marketing planning Every tourist in the travel and tourism sector is different and has different needs so it is made up of many heterogeneous groups. Applying marketing segmentation in the different units of this sector including hotels or travel agencies can enable to better understand and cater efficiently to the needs of the customers of this sector. This would enable in reducing competition from the global markets and get the industry specialise to serve the needs of each individual sectors.

Improvement of the products and services instead of generalising them for everybody such as a family would not opt for extensive night life in their tour and travel generally.

Applying the principle of marketing segmentation The Thomson Group can devise specialised packages to cater the needs of specific groups in its 6 days to visit Denmark, Amsterdam, Lisbon and Porto. It can devise different packages for different segments such as family, honey moon couples, customers opting for historical and educational travel and so on.

These segments could be further divided in to categories such as;

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

Geographic Segments: That is dividing according to geographic parameters including nations, regions, countries languages etc. As visitors from different geographic origins



have specific preferences Demographic Segments: This segmentation divides consumer market on the basis of age, gender, income and origin. This can be important for the travel and sector to devise



personalised travel plans for people of different ages, gender and income Behavioural Segments: Dividing consumers based on differences in their knowledge, attitude or life style (Dolnicar, 2008)

TASK 2: Understand the role of marketing as a management tool in travel and tourism 2.1 Analyse the importance of strategic marketing planning for a selected travel and tourism business or tourist destination Marketing planning for Thomson Holidays will enable them to identify new business opportunities. Planning help Thomson Holidays to divide their tour into the 6 days visit effectively and efficiently planning the course of action for each day. The places and activities they plan every day for the visit of Denmark, Amsterdam,

Lisbon

and

Porto. Choosing the destinations they will cover and how they will cover.

Planning will also ensure that Thomson Holidays plans for budget effectively leaving margin for a decent profit.

Planning brings strategic advantage to the travel and tourism business. It leads to increased participation and awareness of the communities to indulge in the process. Planning will ensure that Thomson holidays update its web site timely and continuously to inform potential customers about the new 5

package they have introduced. It will enable them to analyse the need for more appealing promotional strategies such as seasonal and experimental photographs of the Tulip Gardens.

(Brantford Tourism, 2011)    

Planning will ensure that Thomson Holidays derive returns on their investments.

It will also enable them to identify high potential markets and focus on them Identify and grab emerging opportunities It will help Thomson Holidays to establish marketing alignment with other marketing intermediaries such as travel agents that will recommend the tour operator to customers and increase customers(Travel Alberta, 2013)

Strategic planning can also benefit to promote the tourist destinations selected in the package tour that is Brisbane, Lisbon, Porto and Amsterdam. This planning can increase the promotion of the city. With the abundant growth in travel and tourism different cities are in fierce competition with each other to attract tourists and investors around the globe. City marketing is a new concept which defines the city as a marketing product. Marketing planning is a potential tool used by cities to reinforce their image and promote them as a tourist destination of choice.

Focusing on the local distinctive tourism features of each of the four places can be a potential tool. (Metaxas, Bati, Filippopoulos, Drakos, & Tzellou, 2011) 2.2 Discuss the relevance of marketing research and market information to managers in the travel and tourism sector Managers in the travel and tourism sector require performing a detailed marketing research before devising a new plan. Destination marketing research is also important. This helps the manger to analyse and understand the nature of interaction among the customers and the tourism providers at different destinations. Market research helps the managers of the travel and tourism business to understand the demand and the supply of the tourism products. Research enable s managers to identify the techniques of efficient and proper utilization of resources at the tourist’s destinations and better serve the changing needs of the visitors. Market research and information helps the managers of the tourism sectors to understand market dynamics of a tour destination and thereby create a better total experience for the customers. Marketing research enables the managers to collect relevant information from a large amount of information gathered. Research and information can be gathered about the visitor, the behavioural aspects of the tourists visiting 6

the destinations offered by the tour operator, collecting marketing and development information to develop the product in the tourism industry as a comprehensive product, gathering information regarding the legal regulatory travel and tourism framework affecting the areas covered by the tour provider that is Brisbane, Porto, Lisbon and Amsterdam in the case study provided. (Wang & Pizam, 2011) 2.3 Assess the influence of marketing on society Marketing is the process of communication of the businesses with its potential customers. With the establishment of travel and tourism as a separate robust industry marketing has become an important characteristic of it. Marketing is devised for the society so it influences the society greatly. ďƒ˜ Marketing is a source of customer

information-

Marketing is all about identifying the needs of the customers and finding ways

and

means

to

satisfy them. Thomson Holidays

in

the

case

study has identified the growing trend and need of

holidays

created considering

and

a

has

package the

time,

budget and the tourism needs of its potential customers ďƒ˜ Marketing is a tool to manage the expectations of the customers – Marketing actions influence the society greatly and make them even set expectations that the marketing Actions portray. Suppose an advertisement very attractively showing the action of a

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detergent powder in making clothes clean and ultra-white compels people in buying the product thinking that they would get that aspect.  Marketing actions benefits the economy – Marketing is very influencing in targeting the customers to buy a product. Successful marketing of a tourist destination helps bringing extra revenue to the state. The benefits include more creation of jobs, higher revenue collection for the government and overall growth of the economy. This can be clearly understood taking the example of travel and tourism which was not so consolidated and taken as a total marketing product before invasion of the marketing activities.  Modelling Consumer Behaviour – Marketing actions are based on analysis of consumer behaviour in devising tools and techniques to appeal the consumer greatly. The analysis of marketing data helps the tourism business to understand what the factors are that influences marketing decisions(Hartman, 2014)  Marketing influences the society to readily accept changes and a new marketing idea  Marketing actions determines the rate of success of the firm as the influence of the marketing action is such that the sale of a product endorsed by a celebrity instantly increases.

It is important that the travel and tourism business make strategic decisions and planning keeping in mind their target customers to influence them more and gain profitability.

Task 3: Understanding the role of the marketing mix in the travel and tourism sector 3.1 Discuss issues in the product, price and place elements of the marketing mix Talking about tourism product the marketing mix helps to analyse what is the promise that they are offered in the product and what is the actual product that they receive.

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Product- In the tourism industry as the product is a combination of tangible and intangible products and services so the decision of purchase by the consumer is based on the promise of the product as they can’t see the actual product and set a perception on the basis of the things they visualize in the promotional campaign of the tourism product that is London Gatwick Airport in the case here.

Promotion – It involves the activity of informing the potential customers about the product.

Example the Web site of the London Gatwick Airport is an information source for the customers that tell them about the product. Communication by means of different promotional techniques such as advertising, PR, campaigns and events are a source of informing the customers about the product.

Place - This element of the marketing mix determines that the businesses are providing the product at a convenient place that can be easily accessible by the consumers.

Gatwick Airport is 2.7 miles north of the centre of Crawley, West Sussex, and 29.5 miles south of Central London. This preferable destination making it preferred stop-over for tourist round the globe. In tourism industry unlike other industries the product does not come to the customers but the tourists travel to get the product.

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Price – Price is determined by the monetary value charged by the customers in availing services and products of the travel and tourism industry. At the London Gatwick Airport price includes the entire attribute including the food services at the Airport, the parking facilities at the Airport etc. All these generate revenue for the maintenance and development of the tourism industry.

(Free Nomads - Lets Talk Tourism, 2014) 3.2 Assess the importance of service sector mix elements to the travel sector The travel sector being service oriented involves the extended P’s of the service sector which includes people, processes and physical evidence.

People - Tourism being a service oriented industry places the role of people involved at an important and significant level. All people involved in the tourism industry are an added value to it, so all the intermediaries in the travel and tourism should have the marketing approach. In the London Gatwick Airport the staff should be trained to provide services of superior quality.

Processes- in the tourism industry should be devised to meet the expectations of the people.

Example for booking a flight choosing London Gatwick as stop-over customers will log in the web site of Airlines, the processes and formalities at the Airport and the ambience and facilities inspires the customer to continue association with the airport in future. Some of the processes that appeals to the customers at the London Gatwick Airport are special assistance to people carrying with children. Gatwick has special flying in and flying out facilities like getting through the passport control quickly, Gatwick first meet and greet etc. (Airport, 2014) Physical Evidence – This enables the customers to determine how they perceive the product to be? As the product of the Travel and tourism is tangible the ambience in case of the London Gatwick Airport or the pictures displayed in the web sites etc. is crucial in influencing and forming the buying decisions. The physical evidence that is distinctive to the London Gatwick Airport is comfortable lounges, Prayer room and Chapel rooms, shopping and food facilities etc.

(Marketing91, 2014)

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3.3 Apply the concept of the total tourism product to an individual tourism business – London Gatwick airport Tourism has the characteristics of attracting buyers so it is regarded as a product. Buyers of the total tourism product are the tourist who visit a destination and enjoy their stay. This buying activity of the tourists generates revenue for the tour operators and ultimately to the government in the country the tourism product is developed. (Komppula, n.d) Tourism has developed to form a total product as with growth and development tourism experience is designed in such a manner that it is acombination of all the elements and products and services required by a tourists in the course of the trip. All the specific componenets of the tourism industry is combined by the tour operators to form one total product such as travel, stay, tourist attraction, food and all other facilities that are needed during the course of the trip.Touyrism is an amalgamation of several tangible and intangible factors all of which are aggregated in a package deal to be offered to the customers. (Koutoulas, 2004) Talking abou thte London Gatwick Airport we can say that it satisfies all the needs of the customers; Primary Needs – The primary needs of people coming to an Airport would be reaching a specified destination either by flying in or flying out.

Secondary Needs - These are the other needs that the London Gatwick Airport fulfills and includes;

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The above pictures are of the lounge and the parking facilities at London Gatwick Airport  Shopping and Eating – Gatwick premises has a number of shopping outlets and eating options for the people, it has policy of refund and allowance for shopping bags  Parking facilities – It has a nice facility to park conviniently. It has separate parking facility for both the south and the north terminal adding to the convinience of the guests  Facilities such as comfortable lounge makes the London Gatwick an airport of choice  It also provides facilities for car hire and booking restaurents. (Airport, 2014) So the above analysis shows how the London Gatwick Airport by providing all the necesssary facilities to the visotors, that they percieve or need during their stay at an Airport serves as a provider of the total tourism product.

TASK 4: being able to use the promotional mix in travel and tourism 4.1 Assess the integrated nature and role of the promotional mix Promotional mix aims to create an effective communication message to reach out to your customers. The promotional mix has a huge impact on the organisation as it determines how you connect with your customers. A message that has impact and lasts in the memory of the customers drives out the sales volume. Example would be the campaign of Adidas “Impossible is nothing” which gained much popularity and cause increase in sales volume due to its integrated nature.

There are various ways that an organisation could use to communicate to its customers and the target audience. Integrated promotional strategy is developed when the marketer analysis which channels and tools of communication should be used by him or her to reach out to the target customers efficiently.

This choice depends on the following factors;  Availability of resources and the cost of individual channels of promotion  The size and the concentration of the market targeted  What sort of message or information about the product is needed by the customers

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 What is the nature of the product or service offered B2B selling requires more personal one to one selling and B2C goods require more of advertising campaign The components of the integrated promotional mix are;  Advertising – Used to reach large number of audience effectively, inducing memory and reinforcement in the audience by repeating the message again and again.  Selling Personally – The targeted customers can interact and get their doubts about their product cleared. It helps in building personal business relationships.  Direct Marketing- Targeting individual customers directly through communication in a personal manner  Internet promotion – Tool to reach out to global customers by the World Wide Web Social media has emerged as a potential tool in promotion. Almost all the companies maintain their official pages at the social media sites where customers can post a review and the company can build promotional strategy according to the analysis of the needs and demands of the customers.  Sales promotion – This is a promotional tool used to boost up sales by the use of incentives. It can have short term effects  Publicity – This is a highly popular method. Endorsing a brand by a celebrity or a third party makes the product instantly popular  Sponsorship – Used to build the brand image and publicize the product. It is used as a tool to show good will. Sponsorship has gained much popularity recently. (Pride & Ferrell, 2014) 4.2 Plan and justify an integrated promotional campaign for the Sheraton hotel For the launch of its first summer promotional sales, the Sheraton Hotel needs to devise an integrated promotional campaign. As the marketing trainee the suggestions on promotional mix that I would like to plan are as follows; Social media has become an influential tool for promotion for the hospitality industry. By the use of social media Sheraton can devise promotional strategies to stay tuned of the current marketing trends and align itself to gain competitive advantage by efficiently promoting the new summer sales. Monitoring accounts on Face book, Twitter and Pinterest would be a smart move.

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Adding the new promotional sales as a part of Sheraton’s “Rediscover Campaign� would also be strategy to integrate the new promotional plan with the existing one causing cost effectiveness. [ CITATION Sta14 \l 1033 ] Steps to plan an integrated promotional campaign for Sheraton Hotel Step 1: First Sheraton needs to identify and understand who their target customers are and what are their attitudes based on the demography and their lifestyle .So for the summer offer basically customers would be tourists and travellers who come to stay at Sheraton during summer holidays.

Step 2: Sheraton needs to analyse which channel of promotion they should use to appeal more and more customers, Web site of tour operators, social media or promotion through events and campaigns.

Step 3: The promotional captain for the summer discount deal should be consistent in nature.

Consistency in the promotional campaign makes it more appealing to the customers as it causes the campaign to have a recall value and the potential customers could relate to it more effectively. It helps the customers to recognise the brand. Sheraton must use clear communication with the customers and the terms and condition of the offers should not be vague and confusing, Step 4: Ensuring that the promotional message is integrated will drive more guests to avail the summer discount offer from Sheraton.

Step 5: Sheraton promotional team including many members must be working together on different projects for the integrated promotional campaign should be involved in team meetings and discussion to ensure that they are working in sync.

Step 6: Tracking the campaign is another essential step to make an integrated marketing plan.

This is making analysis and projections to understand the success of the promotional measures.

Sheraton should do this to understand how much success is the campaign achieving by the number of guests opting for the promotional plan. (Schiff, 2014) Bibliography 14

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