Service Marketing OP 09
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Transcript of Service Marketing OP 09
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Marketing Tourism
Hillary Jenkins, Otago Polytechnic
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Marketing Concept
‘Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably.’
(Chartered Institute of Marketing, UK)
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The Traditional Marketing Mix
• Set of controllable variables blended by organisations for selected market segments
• The Price
• Place (distribution)
• Product
• Promotion
Queenstown
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4P’s of Marketing
Product•Design•Quality•Range•Brand name•Features
Price•List price•Discounts•Commissions•Surcharges•Extras
Place• Distribution channels•Methods of distribution•Coverage•Location
Promotion•Advertising•Sales promotion•Salesmanship•Publicity
The Marketing Mix
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Product
Tourism products and services are designed for and
continuously adapted to match changing needs,
expectations and budget of the target market
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Place
Not only the location of the tourist attraction or
facility but the location of points of sale that provide
customers with access to tourist products
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Price
• Used to achieve predetermined sales volume and
revenue objectives
• Price gives a product or service a perceived value
in the eyes of the consumer
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Promotion
• The most visible of the 4p’s
• Promotional techniques aim to increase awareness and demand for products
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Marketing Services
• Tourism is a service.
• Services differ from physical products,
– This needs to be taken into account when marketing them
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Characteristics of Services
• Intangibility
• Heterogeneity
• Temporary ownership
• Perishability
• Inseparability
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Intangibility
• Not the physical portion (tangible) of the product
– Performance or experience rendered by the
service provider to the service consumer
• Most tourism products are a mixture of tangible
and intangible
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Inseparability
• Services are usually produced and consumed at
the same time
– Think of a restaurant meal
• This can make it difficult to separate the provide of
the service from the service itself.
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Perishability
• Services cannot be saved or stores as they expire
during the simultaneous production and
consumption process
– Aircraft seat
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Heterogeneity
• Standardisation
– Difficult to achieve in a people based service industry
• Quality control plays an important part
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Ownership
• Service customers usually only have access to our
use a facility where a service is performed
– Use of a hotel room for a holiday – you occupy
the space only and have temporary use of the
facilities
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How Tourism Differs
• Tourism is more supply-led than other services
All ready have the product then research which market might be interested in purchasing it.
– Dunedin the destination is already here who wants to visit.
• Tourism product might involve the co-operation of several suppliers.
e.g. Package holiday
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How Tourism Differs
• Tourism is a complex, extended product experience with no predictable critical evaluation point.
Pre trip anticipation and post trip reflection
Every trip is different therefore may not be anything to evaluate it against.
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How Tourism Differs
• Tourism is a high-involvement, high-risk product to its consumers
– Involves committing large sums of money to something that cannot be seen or evaluated before purchase.
• Tourism is a product partly constituted by the dreams and fantasies of its customers.
– Unlike banking and car repair, tourism is not consumed for rational, functional purposes.
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How Tourism Differs
• Tourism is a fragile industry susceptible to
external forces beyond the control of its
suppliers.
– Tourism organisations sometimes have to make
rapid responses to crises in the form of product
redesign, price reductions or promotional
damage limitation.
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7 P’s of Tourism Marketing
• Price
• Place
• Product
• Promotion
• People
• Process
• Physical Evidence
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People
• Know who your target market is
– traveller or
– tourist?
http://flickr.com/photos/wolfgangstaudt/2242014640
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People - Employees
• A tourism organisations most valuable resource
– Physical appearance, behaviour, knowledge and
attitude has a powerful impact on customers
perception of the tourism product
– Ensure uniform, grooming etc. conform to
branding and target market
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People - Employees
• Ensure staff are trained to ensure the product is
delivered in accordance with the marketing
strategic plan.
• Employees physically embody the product and
are walking billboards from a promotional point
of view – Zeithaml & Bitner (1996)
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Process
• Process is inseparable product
– If any part of the process is found to be
unsuitable by the consumer, it could result in a
negative evaluation of the whole product.
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Physical Evidence
• Defined as the built environment owned and controlled by
a tourism organisation
• The tangible aspect of the tourism product
• May be used to facilitate the service delivery process e.g.
layout and signage
• Communicates messages about quality, positioning and
differentiation
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Think about the layout, colours , furnishings, sound systems at an airport.
http://flickr.com/photos/jamespaullong/940934988/
Physical Evidence