Intro to Tourism & HospitalityChapter 8

Copyright

Introduction to Tourism and Hospitality in BC by Morgan Westcott, Editor, (c) Capilano University is used under a CC-BY 4.0 International license.

This chapter is by Ray Freeman and Kelley Glazer and is used under a CC-BY 4.0 International license.

Learning Outcomes

Explain the meaning of services marketing

Describe the differences between marketing services and marketing products

Describe the characteristics of a marketing orientation and its benefits

Define key services marketing terminology

(Freeman & Glazer, n.d.)

Learning Outcomes

Explain the PRICE concept of marketing

Provide examples of the 8 Ps of services marketing

Gain knowledge of key service marketing issues and trends

(Freeman & Glazer, n.d.)

Marketing

Figure 8.1 A vintage ad marketing the cost-effectiveness of Econo-Travel hotels from the July 1978 National Geographic

Marketing

Marketing is a continuous, sequential process through which management plans, researches, implements, controls, and evaluates activities designed to satisfy the customers’ needs and wants, and meet the organization’s objectives.

(Freeman & Glazer, n.d.)

Services Marketing

Morrison (2010) indicates, services marketing “is a concept based on a recognition of the uniqueness of all services; it is a branch of marketing that specifically applies to the service industries”(p. 767).

Marketing

Marketing Tourism and Hospitality We must understand the difference between

marketing goods and marketing services

(Freeman & Glazer, n.d.)

Evolution of MarketingTable 8.1: Evolution of marketing in the 20th century

Timeframe Marketing Era

1920-1930 Production orientation

1930-1950 Sales orientation

1950-1960 Marketing department (marketing orientation, internal agency)

1960-1970 Marketing company (marketing orientation, external agency)

1970-Present Societal marketing

1995-Present Online marketing

Data source: Morrison, 2010

Services Marketing

Four key differences between goods and services. Services are:

1. Intangible

2. Heterogeneous

3. Inseparable (simultaneously produced and consumed)

4. Perishable

(Regan; Rathmell; Shostack; Zeithaml et al. in Wolak, Kalafatis, & Harris, 1998)

Services Marketing

PRICE Concept:

P: plan (where are we now?)

R: research (where would we like to be?)

I: implement (how do we get there?)

C: control (how do we make sure we get there?)

E: evaluate (how do we know if we got there?)

(Morrison, 2010)

Services Marketing

Figure 8.5 Services marketing triangle (adapted from Morrison, 2010)

Services Marketing

8 Ps:

1. Product

2. Place

3. Promotion

4. Pricing

(Morrison, 2010)

Figure 8.3 Selling a moment like this one, captured over the holidays in Victoria’s harbour, is different from selling a tube of toothpaste.

Services Marketing

8 Ps Continued:

5. People

6. Programming

7. Partnership

8. Physical evidence

(Morrison, 2010)Figure 8.2 A 1970s Peter Max-designed ad for the American

Cancer Society urging people to not smoke

IMC

Integrated Marketing Communications (IMC):

Involves planning and coordinating all of the promotional mix elements (including online and social media)

Superior to using each element separately and independently

(Eliason, 2014)

Consumer Behaviour

1. Personal factors - reflect needs, wants, motivations, previous experience, and a person’s lifestyle

2. Interpersonal factors - culture, social class, family, and opinion leaders

Perception is Reality

Perceptual Biases

Selective Retention

Closure

(Morrison, 2010)

Figure 8.7 All people view things through their own perceptual filters.

Consumer Decision Making

5 step pattern for consumer decision making:

1. Need recognition

2. Information search

3. Pre-purchase evaluation

4. Purchase

5. Post-purchase evaluation.

(Kollat, D., Blackwell, R., & Engel, J., 1972)

Reaching the Consumer

Traditional Channels

1. Mass Media

2. Out-of-home (OOH)

3. Print Media

4. Online Channels

(Freeman & Glazer, n.d.)

Social Media

Social Media and Reputation Management

1. Social Media

2. Word of Mouth in the Age of Social Media

3. Advertising and Trust

4. Online Reviews = Business Success

Bringing it all together

The role of Destination BC

Marget Segmentation

CTC’s Explorer Quotient

BC’s Key Markets

1. Nearby Markets – BC, Alberta and Washington State

2. Priority Markets - Ontario, California, Germany, Japan, United Kingdom, South Korea and Australia

3. Emerging Markets – China, India and Mexico

(BC Ministry of Jobs, Tourism and Innovation, 2011)

Trends and Issues

Demographic shifts (aging population, the rise of millennials), and socioeconomics (cultural changes, economic decline/growth)

Political, economic, and geographic changes (emerging or declining economies)

Trip purpose (growth of multipurpose trips)

Psychographic changes (special interests, healthy lifestyles, sustainability)

Behavioural adaptations (free independent travel, decreasing brand loyalty)

Product-related trends (emerging niches)

Distribution channels (online travel agencies, virtual travel)

(Freeman & Glazer, n.d.)

ReferencesBritish Columbia Ministry of Jobs, Tourism and Innovation. (2011). Gaining the edge: A five year strategy for tourism in British Columbia. Retrieved from: www.jtst.gov.bc.ca/tourismstrategy/documents/mjti_tourismstrategyreport_fnl.pdf

Canadian Tourism Commission. (2008). The explorer quotient: A deeper understanding of the modern traveller. Retrieved from: www.ttracanada.ca/sites/default/files/uploads/ctc._the_explorer_quotient_-_a_deeper_understanding_of_the_m.pdf

Eliason, K. (2014, December 23). The importance of integrated marketing communications. Retrieved from www.portent.com/blog/internet-marketing/raining-marketing-importance-integrated-marketing-communications.htm

Freeman & Glazer, (n.d.) Services Marketing. In Westcott, M. Editor, Introduction to Tourism and Hospitality in BC (pp. 124-147). Retrieved from http://opentextbc.ca/introtourism/chapter/chapter-8-service-marketing/

Kollat, D., Blackwell, R., & Engel, J. (1972). The current status of consumer behavior research: Developments during the 1968-1972 period. Proceedings of the Third Annual Conference of the Association for Consumer Research. Chicago, IL : Association for Consumer Research, pp. 576-585.

Morrison, A. M. (2010). Hospitality & travel marketing (4th ed., international ed.). Clifton Park, NY: Delmar Cengage Learning.

Wolak, R., Kalafatis, S., & Harris, P. (1998). An investigation into four characteristics of services. Journal of Empirical Generalisations in Marketing Science, 3, 22-43. Retrieved from http://members.byronsharp.com/empgens/emp1.pdf

Attributions

Figure 8.1 Vintage Ad #1,203: This Cheap Hotel Does Not Compute by Jamie is used under a CC BY 2.0 license.

Figure 8.2 1970s Advertising – Poster – Peter Max Don’t Smoke Cigarettes (USA) by Daniel Anyes Arroyo is used under a CC BY-NC 2.0 license.

Figure 8.3 British Columbia Parliament Christmas Lights by James Wheeler is used under a CC BY-NC-SA 2.0 license.

Figure 8.5 Services Marketing Triangle by LinkBC is used under a CC BY-NC-SA 2.0 license.

Figure 8.7 Army Photography Contest – 2007 – FMWRC – Arts and Crafts – Eye of the Holder by US Army is used under a CC BY 2.0 license.