Marketing Tourism
Hillary Jenkins, Otago Polytechnic
Marketing Concept
‘Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably.’
(Chartered Institute of Marketing, UK)
The Traditional Marketing Mix
• Set of controllable variables blended by organisations for selected market segments
• The Price
• Place (distribution)
• Product
• Promotion
Queenstown
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
Product
Tourism products and services are designed for and
continuously adapted to match changing needs,
expectations and budget of the target market
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
eg. I-site, accommodation, cafe
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
– How would you use price to counteract demand
exceeding supply?
Promotion
• The most visible of the 4p’s
• Promotional techniques aim to increase awareness and demand for products
• http://nz.youtube.com/watch?v=gwTpijLCfrc&feature=related
Marketing Services
• Tourism is a service.
• Services differ from physical products,
– This needs to be taken into account when marketing them
Characteristics of Services
• Intangibility
• Heterogeneity
• Temporary ownership
• Perishability
• Inseparability
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
Inseparability
• Services are usually produced and consumed at
the same time
– Think of a restaurant meal
• This can make it difficult to separate the provider of
the service from the service itself.
Perishability
• Services cannot be saved or stored as they expire
during the simultaneous production and
consumption process
– Aircraft seat
– Restaurant meal
– Amusement park ride
Heterogeneity
• Standardisation
– Difficult to achieve in a people based service industry
• Quality control plays an important part
– What forms of standardization can you think of?
Ownership
• Service customers usually only have access to or
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
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
How Tourism Differs
• Tourism is a complex, extended product experience with no predictable critical evaluation point.
Pre trip anticipation and post trip reflection
While trips to the same destination may be the same different variables can make the trip different – and hard to evaluate against
How Tourism Differs
• Tourism is a high-involvement, high-risk product to its consumers
– Involves committing large sums of money to something reasonably unknown
• 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.
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.
7 P’s of Tourism Marketing
• Price
• Place
• Product
• Promotion
• People
• Process
• Physical Evidence
People
• Know who your target market is
– traveller or
– tourist?
– what do they expect?
http://flickr.com/photos/wolfgangstaudt/2242014640
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
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)
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.
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
Think about the layout, colours , furnishings, sound systems at an airport
http://flickr.com/photos/jamespaullong/940934988/
Physical Evidence
Marketing Tourism
• Product and service• Tangible and intangible• People led and operated• Market orientated
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