Tourism Marketing Session One 2011

8/3/2019 Tourism Marketing Session One 2011

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Information Technology in Travel & Tourism

DDTEHM 02

Tourism MarketingIntroduction

By

Buddhika Hewawasam

Diploma in Travel & Tourism Economics & Hotel ManagementUniversity of Colombo


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Tourism

Largest industry in world exceeding

900 million arrivals in 2010 Exceeding the mark of USD 1.5 trillion

Constantly increasing despite of Economic recessions , crises etc.

But tourism dynamics changedcustomers act differently .

Experience Sri Lanka as Tourist destination..

what are our issues related to tourism ???


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What is Marketing

Isnt it a business function?

Isnt it sales?

Isnt it promotions and advertising ?How important is it ???

Is it really important for Tourism professionals ??


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Understanding Marketing

Meeting customer needs profitably Function vs. Philosophy

Marketing is whole business !

Purpose of business as creating and maintain satisfied , profitablecustomers

Todays profit or customer for ever

Customer focus in every aspect

marketing mix concept


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Completing the definition

Create and maintain satisfied and profitable customers

Complete Definition

Social and managerial process by which individuals and groups obtain whatthey need and want through creating and exchanging products and valueswith others

Kotler,Bowen & Makens (2008)


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Understanding core marketing concepts

Need : State of felt deprivation what you are lack of

physical : hunger, warmth, shelter

psychological : belongingness, entertainment etc

Social and self esteem

refer : Maslows hierarchy of needs

Want : need shaped by culture and personality

how people communicate their needs

same need but different wants

Needs cant create but wants can .. .

Demands : Purchasing power of a want

unlimited wants but need to fulfill with limited resources


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Product : Anything that can offer to satisfy a need or want

can be physical or non

Customer value : benefit cost of the product

cost can be non monetary or non monetary

value adding as a challenge

Customer satisfaction:

customer expectation product performance

expectation created by market info, past experience or opinions.

delivering more than the expectation .


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Exchange process : obtaining something desired from someone by offeringsomething in return

Transaction : Unit of measurement in exchange process

Market : where transaction take place

actual or potential buyers whom transact with sellers

can be physical or non physical

Marketing : satisfying human needs and wants through exchange process

Marketing Management

Analysis , planning , implementation and control of programs designed to

create , build and maintain beneficial exchange with target buyers for thepurpose of achieving organizational objectives

Kotler et al ,2008.


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Development of Marketing philosophy

Production /Manufacturing concept: availability and affordability of productis the most important consideration, no customer focus but higher focus on

production process

Product concept: Make the available product excellent. Product focuswithout customer orientation

Sales concept:Getting every possible sale. Promotions and discount for

product etc .Over capacity normally demand for higher salesShort term gain but long term loss

Marketing concept:Addressing needs and wants of the customers andserved the customers profitability by providing same. Perspective ofcustomer against producer

Societal Marketing; customer + social well beingConcept of sustainability : short run fulfillment of

customer needs vs. long run social needs

What fits for your organization ???


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Marketing vs. Sales

Sales oriented in production and attempt to dump the product by heavypromotion and direct sales. Profit achieve through volume

Market oriented in customer, produce things value to customer, long termcustomer relationship against short term acquire.

BOGOF campaigns in tourism .


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Marketing in Tourism

Tourism = Travel + Hospitality

Travel : surface , air , sea Hospitality : accommodation , activities , entertainment ,

Marketing in Nutshell

Know your customer : Market research /customer behaviorKnow what he wants : Segmentation , positioning & targetingKnow your solution : Product strategyKnow how to price and promote : price and promo strategyKnow how to retain customers : Branding & Marketing planning


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Review points

Marketing is all about fulfilling needs of your customers profitablyCreating value for customer is a holistic process going beyond themarketing department

Beyond the product focus is need of the day yet to understood bymany hospitality industry partners

Short-term profit orientation has to eliminate for long termsustainability


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End of Session One

Next Session : Service marketing

Thank You !

Tourism Marketing Session One 2011

Documents

Transcript of Tourism Marketing Session One 2011