MarketinginTravel&TourismYaweiWang,Ph.D.MontclairStateUniversityCourseOutlineThemeaningofmarketingintravelandtourismThemarketingmixfortourismservicesMarketsegmentationfortourismmarketProduct–whatdowemarket?Place–accessibilityorconveniencePromotion–communicationPrice–costtotheconsumerPeople-ConsumerbuyingbehaviorintourismPlanning–tourismplanningandresearchCasestudiesWhatisMarketing?Theperformanceofindividualandorganizationalactivitiesthatfacilitatetheflowofgoods&servicesfromproducertoconsumerTravelSalesDistributionSystemDemandvs.SupplyInternationalInboundtourismOutboundtourismDomestictourismMeasurement?MainsectorsoftheT&TindustryAccommodationAttractionTransportationTravelorganizerDestinationorganizationTheMainDeterminantsofDemandEconomicfactorsandcomparativepricesDemographic,includingeducationGeographicSocio-culturalattitudestotourismMobilityGovernment/regulatoryMediacommunicationsInformationandcommunicationstechnologyTheInfluenceoftheMainDeterminantsPropensityDefinetheextentofparticipationintravelactivityinagivenpopulationHoliday/vacationpropensityAmeasureoftheproportionofapopulationthattakesholidaysinayearTheEvolutionoftheMarketingConcept“ThreePillarsoftheMarketingConcept〞1.ConsumerSatisfactionBusinessesmustconstantlyscanormonitortheenvironmentforchangesinconsumers’needs&wants.Components

ofStrategicMarketingFIGURE1.1MarketingEnvironmentThreePillars2.Long-runProfitOrientationAwillingnesstotakeshort-termlossesforlong-termbenefits.Signalsacommitmenttocustomers.ThreePillars3.SystemApproachWhatisasystem?Asetofinterrelatedpartsworkingtogethertoproduceameaningfulwhole.PlaceorganizationalneedsaheadofdepartmentalorpersonalneedsMarketingMixVariablesProductPricingDistributionPromotionGoods,services,orideasthatsatisfycustomerneedsDecisionsandactionsthatestablishpricingobjectivesandpoliciesandsetproductpricesTheready,convenient,andtimelyavailabilityofproductsActivitiesthatinformcustomersabouttheorganizationanditsproductsFourCsCustomervalueCosttotheconsumerCommunicationConvenienceServiceMarketingMarketingMixProduct

PricePlace

Participants

Promotion

Process

PhysicalEvidencePersonnelCustomersEnvironmentPoliciesProceduresCustomerinvolvementFlowofcustomers(Booms&Bitner,1981)MarketingDealswithProducts,Price,Distribution,andPromotionTheMarketingMixFourmarketingactivities—product,pricing,distribution,andpromotion—thatafirmcancontroltomeettheneedsofcustomerswithinitstargetmarketProductPricingDistributionPromotionTarget

MarketCreativityMARKETMARKETSHAREADVERTISINGSPPRSCMPRICESKIMMINGDISTRIBUTIONConvergentThinkingDivergentThinkingThink-out-of-the-boxExerciseAim:BindthemtogetherbydrawingastraightlineRequirement:Youarenottoliftyoupenfromthepaperandyoumaynotchangedirectionmorethanthreetimes.BrainstormingBrainstorming

BusinessPlanServiceMarketingWheredoAmericanswork?ServiceAgricultureMfrToday19801940190078%2.0%20%69%3.5%27%47%21%33%25%41%33%Whyhastheservicegrown?1.Exportofmanufacturingjobs2.Farm&mfg.efficiencies3.Lifestylechanges--workingwomen4.DualIncomefamiliesService(def.)Anytaskorworkperformedforanotherand/ortheprovisionofanyfacility,product,oractivityforanother’suseandnoownershipwhicharisesfromanexchangetransaction.Threeemphasis:TootherpeopleProvisionoffacility,product,oractivityNoownershiptransferCharacteristicsofServices1.Intangibility“TangibleCapabilities〞(def.)Evidencethattheserviceproviderwillbeabletosatisfyyourneeds.Examples:1.People/credentialsofpersonnel2.Equipment3.Facilities4.Examplesofwork/referencesCharacteristicsofServices2.Perishability(def.)Unusedcapacityinonetimeperiodcannotbestockpiledorinventoriedforfuturetimeperiods.Importanttomatchsupplyanddemandcarefully.Waystoincreaseservicecapacity1.Temporaryhelp2.Extendedhours3.Improveflow-throughrateFlow-throughrate(def.)Thenumberofcustomersyoucanprocess/serveperhour.Waystoadjustdemand1.Off-peakpricing2.Promoteoff-peak3.ScheduleappointmentsCharacteristicsofServices3.HeterogeneityPeopleperformservicesandpeopledonotalwaysperformconsistentlyTrainingisthekeytoreducingheterogeneityCharacteristicsofServices4.InseparabilityofProduction&ConsumptionPrimarilyaproblemfor“highcontact〞services>Customermustparticipateintheproduction>OthercustomersmayaffecttheserviceoutcomeTrainingthekeytohandlinginseparabilityissueDimensionsofServiceQuality1.AppearanceofTangibles2.Reliability>serviceperformedconsistentlyanddependably3.Responsiveness>willingnessorreadinessofemployeestoprovideservice4.Assurance>Knowledge/competencetodothetaskandinspiretrust/confidence5.EmpathyCharacteristicsofT&TServicesSeasonalityandothervariationsinthepatternofdemandThehighfixedcostsofoperations,alliedtofixedcapacityatanypointintimeTheinterdependenceoftourismproductsConsumerBuyingBehaviorWhatarethepossibleinfluencesoncustomers’buyingdecision?Canmarketershaveanyinfluenceonthebuyingdecisionprocess?ConsumerBuyingDecisionProcessandPossibleInfluencesontheProcessFIGURE8.1ConsumerBuyingDecisionProcessAteachstageintheprocessmarketerscanintervenetoincreasethelikelihoodofapurchase.1.ProblemRecognitionDifferencebetween“Ideal〞stateandwhereyouarenow.Createsdisequilibrium.Problemrecognitioncanbetriggeredbyaneedorasituation/event.Whatdomarketersdointhisstageofthebuyingprocess?Createdissatisfactionand/orawakenalatentneedviapromotionaleffortsWhatisalatentneed?Aneedthatyouhave,butofwhichyouarenotconsciouslyaware.2.InformationSearchInternalSearchMemoriesExternalSearchFriends,Ads,ConsumerReports,Shopping,etc.Consideration/EvokedSet(def.)–Thebrands/storesthatcometomindforaparticularproductcategory.ImplicationsforMarketers/RetailersPositionyourbrand/productcarefully.Treatshoppersandbuyersequally.(Today’sshoppermaybetomorrow’sbuyer)Provideproductinformationviadisplays,website,salespeople,etc.Whatfactorsdeterminehowmuchtimepeoplewillspendinthesearchprocess?1.Expenseofitem2.Familiaritywiththeitem3.Howcriticalistheneed4.Egoinvolvement3.EvaluationofAlternativesEvaluatetheproductsintheConsideration/EvokedSet.Individualidentifiescriteriathathe/shewillusetojudgetheproductsintheConsideration/EvokedSet.Whatdomarketersdointhisstageofbuyingprocess?Framing(def.)Highlightaparticularattributeofaproduct,educateconsumersaboutitsimportanceandassociateitwithyourcompany.4.PurchaseDecisionWhatandWhere?Peopledon’tbuyuntilthebenefitsofpurchasingoutweightherisks.Divisibility(def.)HoweasyisitforapersontotryanitembeforepurchaseDivisibilityDivisibilitycontributestotheperceptionofrisk.HighDivisibilitymeansanitemiseasytotrybeforepurchase.Ex.Cars,ShoesLowDivisibilitymeansanitemishardtotrybeforepurchase. Ex.WashingMachine,hotelroomWhatthingscanamarketer/retailerdotoreduceconsumers’perceptionofrisk?1.Samples2.LiberalReturnPolicy3.TrialPolicy4.GenerousWarranties5.CarryWellKnownBrands6.VirtualtoursTransactionInterferenceAsituationoreventthatblocksorhindersapurchase.Exs.longlines,out-of-stock,poorhelp,etc.5.Post-PurchaseDissonanceCognitiveDissonance(def.)Doubtsinthebuyer’smindaboutwhethertherightdecisionwasmadeinpurchasingtheproduct.Whatcanamarketerdohere?Exs.Callbacks,thankyouletters,newsletter,adDowefollowallthesestepsforeverypurchasedecision?Dependsonsituation.1.ExtendedProblemSolvingEx.Purchasingunfamiliar,expensiveorinfrequentlyboughtitem.Followallsteps.2.LimitedProblemSolvingEx.Encounterdifficultybuyingapreviouslypurchasedproduct.Don’tfollowallsteps.3.RoutinizedResponseBehaviorEx.Buyingfrequentlypurchased,low-costitems.Don’tfollowallsteps.SocialInfluencesonBuyingDecisionProcessReferenceGroupsAnygroupthatpositivelyornegativelyaffectsaperson’svalues,attitudes,orbehavior.AgroupwhichanindividualusesasabehavioralmodelExs.Jobassociates,neighbors,family,clubs,etc.Opinion-LeaderAreferencegroupmemberwhoprovidesinformationaboutaspecificspherethatinterestsreferencegroupparticipants.Anindividualwhootherslookupto.Setnormsandinfluencegroupmembers.OtherSocialInfluencesRoles–workstatusFamilyinfluencesSocialclassesCultureandsubculturesPsychologicalInfluencesonBuyingDecisionProcess1.PerceptionPerceptualField(def.)Theaccumulationofallourexperiencesandperceptionsoftheenvironment Empathyisessentialforamarketer.Mustseethingsfromtheconsumer’sP.O.V.SelectiveExposure/PerceptualSelectivity(def.)Peopleonlyattendorlistentothosethingsthathavemeaningtothem.Ex.“CocktailParty〞PhenomenonPsychologicalInfluencesonBuyingDecisionProcess2.MotivesAninternalenergizingforcethatdirectsaperson’sbehaviortowardssatisfyingneedsorachievinggoals.Maslow’sHierarchyofNeedsWhydowebuyclothes?

EmotionalMotives(def.)Thereasonforbuyingisbasedprimarilyonapsychologicalneed.RationalMotives(def.)Thereasonforbuyingisprimarilybasedonphysicalwell-beingand/ortheoutcomeofalong-termcostbenefitanalysis.TheMainMotivesforT&TBusiness/work-relatedPhysical/physiologicalCultural/psychological/personaleducationSocial/interpersonalandethnicEntertainment/amusement/pleasure/pastimeReligiousOtherPsychologicalInfluencesLearningChangesinanindividual’sthoughtprocessesandbehaviorcausedbyinformationandexperienceAttitudesAnindividual’senduringevaluationof,feelingsabout,andbehavioraltendenciestowardanobjectorideaPersonalityandself-conceptAsetofinternaltraitsanddistinctbehavioraltendenciesthatresultinconsistentpatternsofbehaviorLifestylesAnindividual’spatternoflivingexpressedthroughactivities,interests,andopinionsChapterOutline5stages-ConsumerBuyingDecisionProcess3LevelsofConsumerProblem-SolvingProcesses3typesofinfluence

TargetMarketsWhatisamarket?Market(def.)Agroupofpeoplewithaneedforaproductorservice.Inaddition,theypossess…theabilitytobuythewillingnesstobuy&theauthoritytobuyTypesofMarkets1.ConsumerMarket(def.)Composedofindividualspurchasingforpersonalorhouseholdneeds/wants.2.OrganizationalorB2BMarket(def.)Composedofindividualsororganizationspurchasingforoneofthreereasons:A.ResaleB.UseinproductionC.UseindailyoperationsTypesofMarkets1.ConsumerMarketindividualspurchasingforpersonalorhouseholdneeds/wants.2.OrganizationalorB2BMarketindividualsororganizationspurchasingforoneofthreereasons:A.ResaleB.UseinproductionC.UseindailyoperationsTypesofMarketObservations:ThereasonforthepurchaseiswhatdistinguishesconsumerandB2Bmarkets.Somebusinessesselltobothmarkets.MarketSegmentationMarketSegmentation(def.)Theprocessofsubdividingamarketintogroupsofpotentialcustomerswhohavesimilarneedsandwants.Whysegmentamarket?Marketmaybeheterogeneous—i.e.,peoplemayhavedifferentneeds&wantswithintheproductcategory.Maximizesconsumersatisfaction.Guidesdesignofmarketingmix.

contentofmessage wheretopromoteproduct–waste wheretosellproduct howtopackageproduct etc.

Tourism–MassConsumption?Themarketingoflarge-scale,widelydistributed,quality-controlledproducts≠ThemassproductionofundifferentiatedproductsformassmarketsTargetMarketSelectionProcessFIGURE7.1Step1:TargetingStrategies1.Concentrated2.Differentiated3.UndifferentiatedTargetingStrategies1.ConcentratedStrategyTargetasinglemarketsegmentusingonemarketingmix.+Developexpertise,credibility+Minimizemarketingcosts+Minimizeproductioncosts-Puttingalleggsinonebasket-MaylackcredibilitywhenenteringothersegmentsConcentratedstrategyisusefulfornewbusinesses.TargetingStrategies2.DifferentiatedStrategyTargettwoormoresegmentsbydevelopingamarketingmixforeach+Greatergrowthopportunities