Unit 1

Marketing Perspectives

(updated June 2015)

Unit topics

• Definition of Marketing

• Core concepts in marketing

• Economic importance of marketing

• Constraints in marketing

• Categories of marketing

• The nature of tourism services

• Issues in travel and tourism marketing

MARKETING DEFINEDmarketing noun: 1.the action or business of promoting and selling products or services, including market research and advertising.

verb gerund or present participle: marketing 1.advertise or promote (something). "the product was marketed under the name “aspirin.”“ 2. offer for sale. "sheep farmers are still unable to market their lambs" 3. buy or sell provisions in a market. "some people liked to do their marketing very early in the morning"

Source: Meriam Webster Dictionary

MARKETING DEFINEDThe activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure. The four 'Ps' of marketing are product, place, price and promotion.Source: : http://www.investopedia.com/terms/m/marketing.asp#ixzz3cXbtfWEG

Source: http://marketinglessons.in/2011/09/26/core-concepts-of-marketing-philip-kotler-summary/

Introducing Marketing

In terms of users or buyers, marketing is concerned with understanding:

✓ The needs and desires of existing and prospective users and any interaction they may seek with suppliers

✓ Which products or services they choose to use or buy

✓ How they get information about products and other offers

✓ Where they obtain or buy products from

✓ How they feel after their purchase and consumption of products and services

✓ What level of after sales or in use services in needed

Introducing Marketing

In terms of producers organizations, marketing focuses on:

✓ Which products or services to provide and why; especially new products.

✓ How many product and other offers to produce(volume of supply).

✓ At what price or cost if price is not involved.

✓ How to communicate their offers and communicate with buyers, by which media.

✓ When, where and how to make them available/deliverable to users or buyers

✓ What level of pre/in use/and after sales or usage services has to be offered.

Introducing Marketing

Economic Importance of Marketing

1. National economic growth

2. Development of standards

3. Learned discipline

4. Enhanced resource use

5. Trade

Categories of Marketing

1. Traditional

2. Modern

Source: http://www.designandpromote.com/the-many-types-of-marketing/ http://homebusiness.about.com/od/marketingadvertising/a/Types-Of-Marketing-Traditional-And-Internet.htm

Constraints to Marketing

1. Consumer Act of the Philippines (Republic Act

No. 7394)

2. Electronic Commerce Act of 2000

Marketing Orientation

• Recognition that the conduct of business operations must revolve around the long-run interests and satisfaction of customer or users rather than a focus an one-off exchanges.

• Understanding that the achievement of profits and other organizational goals results from customer satisfaction and customer retention.

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Marketing Orientation

• A positive, outward looking, innovate and competitive attitude towards the conduct of exchange transactions.

• An outward looking, responsive attitude to events and conditions in the external business environment within which an organization operates.

• An understanding of the strategic or long-run sustainability balance to be achieved (between profits and social and environmental concerns)

Introducing Travel and Tourism

Three categories of visitor:

1. International visitors: inbound tourism

2. International visitors: outbound tourism

3. Residents: domestic tourism

Introducing Travel and TourismPrincipal terms adopted and used today:

• Visitors to describe all travelers who fall within agreed definitions of tourism.

• Tourist or staying visitors to describe visitors who stay overnight at a destination.

• Same-day visitors, or excursionist, to describe visitors who arrive and depart on the same day.

Introducing Travel and TourismA working definition of travel and tourism

• ‘Tourism’ VS ‘Travel and Tourism’

• ‘Visitor’ VS ‘Tourist’

In normal usage tourism and travel and tourism are terms that relate to exactly the same market and they are used interchangeably. Similarly, the words visitor and tourist tend to be used interchangeably in common usage.

Service and their characteristicsInseparability Perishability Intangibility

Particular characteristics of travel and tourism services

✓ Seasonality and other major variations in the pattern of demand.

✓ The high fixed costs of operations, allied to fixed capacity at any point in time.

Travel organizers Destination organizations

Transportation Air

Road Sea Rail

Visitors tourists same day visitors International, domestic

Travel organizers (in areas of origin) Product supply

(at destinations)

Transportation infrastructure and physical access to

destinationsFigure 1.2 The Systematic links between demand and supply: the influence of marketing

Powerful trends that distinguish markets in the 21st century from those in previous era.

✓ Branding

✓ The massive number of small or micro-enterprises that dominate the different sectors

✓ The revolutionary development of ICT

✓ Excessive supply are more than the markets can absorb naturally

✓ Growing numbers of consumers in develop countries

✓ Sustainable development requirements constraining business decision.

The more demanding consumer of travel and tourism

Over the last two decades consumers have become:

• More affluent, measured in disposable income per capita and ownership of property, household facilities

• Better educated

• More healthy overall with many interested in more active pursuits

• Older

The more demanding consumer of travel and tourism

• More travelled

• More exposed to the media and information generally

• More computer literate with access to the internet still growing

• More heterogeneous and individualistic in their demands and expectations

• More culturally diverse

The main determinants of demand

1.Economic factor and comparative income

2.Demographic characteristics of tourism generating nations

3.Geographic factors

4.Socio-cultural attitudes to tourism

5.Access to personal transport

The main determinants of demand6.Government/regulatory ‘ infrastructure’

surrounding travel and tourism

7.Media communication 8.Information and communications technology

(ICT) 9.Environmental concerns and demand for more

sustainable forms of tourism 10.International political developments and

terrorist actions.

REFERENCES

1. DUSIT THANI GUIDED LESSON PLAN FOR TOURISM MARKETING

2. Meriam Webster Dictionary 3. http://www.investopedia.com/terms/m/

marketing.asp#ixzz3cXbtfWEG

4. Source: http://marketinglessons.in/2011/09/26/core-concepts-of-marketing-philip-kotler-summary