UK College Unit 4 Marketing in Travel and Tourism

This is solution of marketing in Travel and Tourism assignment, it will expand an indication of travel and tourism, and distinguish the way diverse constituents of the travel and tourism sector bond mutually

Task 1

1.1 discuss the core concepts of marketing for the travel and tourism sector

For the package of 6 days to be offered by the Thomson management, the primary need is to understand the concept and orientation process of marketing function. It is a basic thought of marketing that travel and tourism business exists and can flourish by fulfilling the wants of the travellers. The marketing concept can be defined as matching a business’ potential with the needs of the customers. This all has to be undertaken in what is known as a marketing  principles environment.

Industries do not take on marketing conduct single-handedly. They face risks from competitors, and variances in the political, financial, communal and technical environment. Each and every one of these features has to be considered since a company attempts to contest its potentials with the requirements and desires of its target clients (Sheldon, 1997). If Thomson Holidays espouses the marketing concept, then it might be able to recognize the requirements of probable travellers as the foundation for its procedures. Accomplishment of the goals is reliant on gratifying customer wishes.

1.2 assess the impact of the marketing environment on individual travel and tourism businesses and tourist destinations

The business marketing environment has been divided into Micro and Macro environment for travel and tourism industry. The micro environment comprises of internal factors that add to the value chain of the Thomson Holidays with a specific extent of the value for making the most of costs and finally it shows profit margins.

The micro factors would be:

  1. a) Competitors- The management of Thomson Holidays has to make sure that the customers are presented with premium services that are there for the charges that a client is shelling out. Consequently the client is satisfied and the competitors are unable to capture the market, with Thomson Holidays retaining its existing customers (Smith, 1994).
  2. b) Customers- The second type is to convene the explicit requirements and demands of the clients according to their flavours and likings, as the service business leans to be extremely delicate, custom-made preparations have to be prepared to meet up the client requirements.
  3. c) Suppliers- The suppliers also influence the business as the quality of services and timeliness is directly dependant on the suppliers of the business.
  4. d) Trained and well-organized staff: Every client anticipates to be taken care of in the most welcoming and most excellent approach achievable, thus Thomson Holidays have to be sure that the workforce is compliant and competent when it is regarding tackling the customers.
  5. e) Marketing and Brand construction: Thomson Holidays looks for prospective consumers to advertise the services it presents in addition to accomplish this they do publicity, pricing etc. furthermore put up a trustworthy representation in the marketplace, which is furthermore a vital issue to Customer contentment.
  6. f) Specialisation: To please the particular client demands, the Holiday services has to remember that fulfilling those demands is central and not easy all together, thus specialisation in accomplishing the client requirements is an indispensable supporting aspect.
  7. g) Marketing Research: With proper logical instruments and a superior perceptive of the market, the undertaking of marketing turns out to be a great deal easier for Thomson Holidays, leaving an enduring thought in the client’s mentality.
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Macro Environment

The term macro-environment indicates every one of powers and organizations outside to the business itself.

Source: Own study

  1. a) Demography: The demography of Thomson Holidays affects the business, as more and more people are able to access the services. It includes [population, birth-rate, geographic shifts etc.
  2. b) Economy: The economic aspects are mostly outer to the rule of the business; however their outcomes on individual endeavours can be intense.
  3. c) Society and culture: There is a vast diversity in the social and cultural norms, so the market analysts have to be aware of all the cultural aspects of business.
  4. d) Technology: Thomson Holidays has to use updated technology to sustain the cutthroat competition.
  5. e) Politics: The political changes have high effect on the tourism sector due to the policies, rules and regulations been implemented by the existing government.
  6. f) Tourism systems and destinations: The Holidays services will flourish if it is setup in a place within a range of and surrounded by many nearby tourist destinations, so that more and more people visit that place.

1.3 discuss the factors affecting consumer motivation and demand in the travel and tourism sector

When it appears to creation of alternatives regarding someplace and way to travel, numerous issues control travel and tourism customer behaviour (Pearce, 1989). There are two types of aspects that persuade the traveller in procuring a holiday package:

  1. a) Motivational aspects that motivate travellers to wish for purchasing a package holiday, and
  2. b) Determining aspects that decide whether the traveller is capable of paying for the most wanted produce (Michael, 2008).

In the learning of motivational factors ought to be considering a number of basic features of tourist creation, which differentiates it as of other products and services available:-

  • tourism product is multifaceted, enclosing both tangible ingredients, in addition to intangible ingredients;
  • tourists purchase an understanding more willingly than a undoubtedly distinct creation;
  • there are some stages in the traveller know-how: expectation stage, expenditure stage and recollection stage;
  • tourist is element of the manufacture process in sightseeing, which denotes that outlooks, feelings, anticipations have an effect on tourist understanding assessment;-

The customer value is attained by tourist motivation, which can be further categorized as:

  1. a) Motivations that guide a human being to decide to take a trip and
  2. b) Motivations that show the way to a human being to decide a specific holiday, in a particular destination, at a particular phase in time.

The second classification type is further difficult and is established and utilized by a lot of experts. In line with it, the motivations are:-

  • Emotional (recreation, sunburn, work out and wellbeing)
  • Psychological (homesickness, romance, escapade, run away, daydream, religious desires)
  • Private (stopovers to family and friends, fresh friends)
  • Individual development (increasing the altitude of awareness, knowledge of a latest proficiency)
  • Position (method, individuality, receiving a superior put forward)
  • Culture (tourism, knowledge of other cultures).

1.4 analyse the principles of market segmentation and its uses in marketing planning

Positioning and purposely targeting distinctive market segments is together realism and a requirement in current competitive marketplace. A market segmentation scheme needs a chief obligation by the business. A company has to take up whichever a mass-market approach or market segmentation approaches. There is none in the middle.

Marketing strategy’ is defined as “a marketing mix intended for a particular target market.”

                        4 P’s

A Marketing    Product or service

Mix                              Price                            AIMED AT a  ?    Target Market

Distribution (Place)

Promotion

7 steps to be used for marketing planning by Thomson holidays are:

Step One: make out the kind of market with which Thomson Holidays will be dealing- “The customer market”.

Step Two: examine the areas of contentment Thomson Holidays is trying to offer to this market, i.e., for e.g.: “We seek to augment family life for parents and kids comparable by providing best holiday packages”.

Step Three: Select aspects with which to segment the market. These are Demographic, Psychographic, Geographic, and Behaviourist

Step Four: On the basis of the chosen aspects, recognize the segments in the travel and tourism sector

Demographic – family proceeds over $80,000, in any case one close relative is university learned, both parents are in employment, two kids or more in family, housing location in intermediate to huge city

Geographic – each geographic area of the U.K. has families who fit our outline.

Psychographic – ‘full of activity or hectic’ existence as explained by inhabitants in segment

Behaviourist – relatives recognizes existence is ‘excessively quick, excessively complex, excessively small superiority instance together’.

Step Five: assess whether the segment in which Thomson Holidays is concerned fulfils the four decisive factors for efficient segmentation

Measurable – we were competent to review this segment and recognize by utilizing merely the opinion poll information available.

Accessible – we can effortlessly recognize and converse with individuals in profile.

Compatible – our organizational task is aimed at helping this section, consequently yes, the division is well-suited with Thomson Holidays’ association and other products/services

Substantive – If there are some probable customers in this segment, Thomson Holidays can expand in that area in coming time period.

Step Six: generate an outline of the client recognized with buying behaviour forecasts.

Step Seven: unite the segmentation study with additional studies relayed to the product and tourism market.

Task 2

2.1 Analyse the importance of strategic marketing planning for a selected travel and tourism business or tourist destination

Strategic marketing planning puts off business possessors from creation of unplanned and hasty business marketing choices. The procedure engages assembling marketing information in an orderly approach and after that integrating that information into a comprehensive scrutiny that assists task enduring marketing aims (Wober, 1997). Thomson Holiday’s strategic marketing plan ought to encompass as extended a time span as the company is contented with; on the other hand, it is moreover a truth that a lot of things will alter with point in time, as a result there is a need for an ingredient of flexibility in the preparation too.

The Strategic planning can employ SWOT analysis which is a basic tool that easily serves as a foundation to the progress of marketing arrangements. It achieves this by evaluating Thomson Holidays strengths (what it can accomplish) and weaknesses (what it can’t carry out), opportunities (probable positive circumstances) and threats (likely adverse circumstances) (Ferrell et al., 1998).

The fundamental proposal of Butler’s 1980 Tourism Area Life Cycle (TALC) representation is that a tourist destinations starts as a comparatively unidentified and tourists originally approach in little amounts controlled by need of admission, amenities, and local information, which is tagged as Exploration in Figure 1 (Miller and Gallucci, 2004).

Figure 1 Hypothetical Evolution of a Tourist Area (Adapted from Miller and Gallucci, 2004)

Ansoff Matrix

To represent the growth strategy of Thomson Holidays, Ansoff matrix has been used with aim of reflecting current and perspective markets and visitors by the methods to expand by 4 combinations of product and market as below:

Boston Matrix

The BCG consulting matrix has to be used for Thomson Holidays so as to analyse the business units/product lines. The resource allocation is as below:

It is a wise choice of Thomson Holidays to add further resources in France as it is growing rapidly in tourism sector. Switzerland has fewer competitors, so it can be a cash cow. The Thomson Holidays is not too good at logistics (DOGS) so if it is outsourced then also business can flourish by excelling in other fields.

2.2 Discuss the relevance of marketing research and market information to managers in the travel and tourism sector

A market research is of meticulous significance as it aids associations in gathering, accumulating, practicing, and broadcasting information, and in the managerial progression by offering estimates and decision forms (Little 1979). The market information and research offers the prospect to correspond and supplies as a podium for new delivery conduits. Interdisciplinary research ventures will be tested with tourism study, research in information and business-related information expertise.  For illustration there are yet some difficulties to be worked out so as to be competent to in cooperation exercise ecoscopic and demoscopic sightseeing information inside a marketing information system.  These grouping alternatives need a steady consistency of information sources in addition to latest way in the direction of the procedural development of data achieved as of an assortment of studies (Froeschl 1997).

2.3 Assess the influence of marketing on society

Marketing affects the society in 4 major ways:

  1. a) Informing the buyers:

The customers are educated and made aware of the products and services through the marketing. The customer is made aware how the product would satisfy his needs. Thomson Holidays can use marketing strategy to make travellers aware of its services and raise the levels of sales.

  1. b) Managing the expectations of customers:

The marketing function sets the customer expectations. The business can gain brand loyalty and customers can compare the expected level of services being offered by similar set of service providers.

  1. c) Economic gain:

The marketing function will boost the sales, promote services and products and hence will drive the consumer economy. It targets the potential buyers thus creating jobs for people, generating tax revenue, use of resources etc. leading to growth of the economy.

  1. d) Modelling behaviour:

The marketers attempt to understand the consumer behaviour and try to produce the entire things that can have influence on the potential buyers. The awareness is created for economic and behavioural forecasts.

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Task 3

3.1 discuss issues in the product, price and place elements of the marketing mix

As a new marketing executive of London Gatwick Airport, I would suggest that the overall charges of utilising the services of airport are not always the main factor behind the choice of customers. Though price has a vital role in the airport marketing, it is the mere constituent of the marketing mix that adds to the income, as other 3, namely the product, promotion and distribution comprise of costs. So, prices can influence the accomplishment and economic feasibility of an airport. The pricing decision of an airport is usually formed on the basis to cover the costs and raising the funds for investing, at airports wherein the cost based rationale is employed to control/fix the aeronautical costs.

The perceived value is important for the service firm like airports due to the intangible form of the services being offered. So, the customers find it difficult to compare the prices against services being offered or against other competitive airport service providers. In this case the price is the right element of marketing mix that can be altered swiftly, as other 3 cannot change so quickly to promote the sales of the services being offered. The prices also differ to show the value and wants of various kinds of services offered to various segments.

3.2 Assess the importance of service sector mix elements to the travel sector

Marketing company and non-business services comprises the similar essential constituents as marketing possessions.  Gatwick Airports have to primary described and analyse its markets, make out segments and choose targets. After that the group must turn its consideration to devising a synchronized service sector marketing mix –

  1. a) The commodities or the service provisions,
  2. b) The price arrangement;
  3. c) The delivery arrangement and
  4. d) Promotional activities in the region of a gap benefit that will produce the arrangement it wishes for.

Given that services are generally created and consumed at the same time, clients are mostly there while production can interact with service producers and are usually the part of production procedure (Cohen, 1978). So the consumers do not think about intangibility, they just need the services also to be tangible so that they can compare it. The fact is that the customers look forward to valuable services in the travel sector as well. A satisfied customer is not the key, but the contented and overwhelmed customer can turn out to be a repeated customer.

3.3 apply the concept of the total tourism product to an individual tourism business – London Gatwick airport

Middleton (1989) has launched the “word total tourist product” which means that “from the point of view of a prospective client bearing in mind any structure of tourist visit, the creation might be described as a collection or package of tangible and intangible constituents, found on action at a target. The parcel is apparent by the traveller as an understanding, accessible at a cost”. This travellers creation is capable of being segregated in two ranks: the total stage demoting to the whole know-how of the traveller as of the instance one departs from home to the instance one comes back, i.e. identical with the constituents model. The second stage is the particular stage, which is that of a separate creation presented by a sole company. (Middleton 1989)

The service sector like London Gatwick Airport has services to offer that are intangible in nature so in terms of tangible services, it can offer cleanliness of staff, cleanliness of airport, the area, facilities along with the intangible services that cannot be seen, rather felt and compared like the understanding, politeness and knowledge of the airport service providers in terms of customer satisfaction.

Task 4

4.1 Assess the integrated nature and role of the promotional mix

The promotional mix can be shown in the diagram below:

marketing mix in travel and tourism

The promotional mix of Sheraton Hotel is – product, price, place and promotions. The idea behind promotional mix is that you can modify the provision of services to a client on the basis of the own segment, here it is Hotel industry.

As per the integrated marketing, all the variables of promotion mix are self-motivated in character. If we transform the product with the price, place as well as promotions will transform. Therefore, if one changes single variable, the other 3 will modify involuntarily. In this case, if the food and prices are changed, then the promotion plan and place will also have to change. The offerings are not merely on the basis of the price and product. It is incorporated in a way that affects all the marketing behaviours.

Integrated marketing actions might engross a group of individual decisions which modify the promotional offering. These verdicts might contain rising the sales force and focused additional on push than pull, growing the promotion financial plan in that way pertaining a pull strength to the products, altering the supply chain to carry out improved cost efficiency and in that way provide enhanced pricing to the product or lastly to break through the market with small pricing and achieve a soaring market allocate (Swarbook, 1999).

These offerings can be altered as per the customer segment. The main crux is identification of the client’s needs and then fulfilling the same. Thus final step is making an integrated offering that offers the customers what they need.

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4.2 Plan and justify an integrated promotional campaign for the Sheraton hotel.

As marketing personnel, I would focus on

Attraction Marketing

  • Attraction marketing comprises the exceptionality (positioning) of what tourists approach to witness (the product), the comparative price of one location as evaluated to a dissimilar (the price), the ‘distribution’ (or convenience of the position) to prospective target marketplaces and the diversity of process utilised to notify and draw tourists (the promotional mix). •Tasting spaces are traveller attractions.
  • traveller antagonism engages figure-building. Efficient place or desirability imaging needs a similarity among promotion and place.

Get at the forefront of the Competition

  • Differentiation–do not replicate other hotels, make Sheraton only one of its kind; guarantees that hotel’s exercise of the complete promotion mix converses the exclusive arrangement in the market
  • Cost benefit–being cost-competent can facilitate privileged earnings fringes though keeping costs reasonable; it is sensible to struggle on worth for funds
  • Focus –if hotel cannot be the final hotel target, focus on that which the hotel does most excellent & centre on incredibly particular market segments

Starting efficient aims

  • Marketing aims are regarding products & markets merely, & consequently, will be regarding one of the following:

–subsisting produces in subsisting markets

–latest creations in subsisting markets

–subsisting creations in fresh markets

 –fresh creations in fresh markets

  • An aim is further influential if it centres on a sole assignment (Albert, 1967).

Guidelines for Ensuring Objectives

  • Ten standards that will help out in extending purposes that are valuable to a company & its individuals:
  1. Appropriateness
  2. Measurability
  3. Probability
  4. Tolerability
  5. Elasticity
  6. Fascinating
  7. Understandability
  8. Obligation
  9. Involvement
  10. Association

The Marketing Mix (The P’s)

  1. Product–the creation, service or magnetism that the hotel offers to clients
  • The hotel, attractions, sightseeing and overall travel experience
  1. Price–the exchange price for each item clients are ready to reimburse for staying in the hotel
  • All pricing decisions have to add in the standard of providing worth to the hotel tourism know-how
  1. Place (or allocation) –the method in which hotel gets its service to clients or consumers to the service
  • The room and services are the appeal; as are touring courses or sight seeing
  1. Promotions–promotion performance or infrastructure that generates consciousness
  • publicity, media & public associations, sales endorsements, undeviating trades, incident marketing, advertising, & tittle-tattle
  1. Packaging–a grouping of journey creations for example shipping, accommodation, foods, desirability, amusement & channel services in a single-price product
  • employment with the purpose & erstwhile services to expand & advertise hotel services parcels straining the whole practice
  1. Partnerships–assistance of experts in equally community & private segments with the intention of best convene the requirements and desires of consumers
  • operational with other hotels, travel services, & services is necessary for Sheraton hotel’s tourism
  • The leadership & coordination of an effective destination marketing organization is essential
7.Programming –enlightening consumers concerning the occurrence of stay in Sheraton hotel. A hotel has to exist by means of promotion throughout the year by means of sightseeing, analysis, amusement & special occasions. Positioning–produces a distinguished representation of the hotel in the psyches of those customers in Sheraton’s target market (Hruschka, and Mazanec, 1990)
  • The way Sheraton Hotel and its know-how are diverse as per those presented by competitors.
  • When positioning the hotel, we have to be sure that following points have been considered:

a).The potencies of Sheraton Hotel against the competitor.

b). the weakness of Sheraton Hotel against the competitors.

c). Areas in which the Sheraton Hotel bear a resemblance to its competitors’.

  1. d) Importance of the uniqueness of the Sheraton hotel and of services being offered by it.
  • Positioning strategies may include:
  1. a) Main features/advantages
  2. b) Pricing
  3. c) Worth, eminence and quality
  4. d) Competition and aggressiveness
  5. e) Linkages
  6. f) Users and applicability
  • aspects to regard as while writing a long-standing positioning approach:

 –The dynamics of Sheraton Hotel and its services.

 –The requirements & desires of the target markets

 –The opposition Sheraton Hotel is in front of in the target market

  1. People–the service contributors in hotel business
  • concentration to service worth will give back in sales & trustworthiness.

Conclusion

Types of Marketing Opportunities

Market infiltration is attempting to boost sales of a company’s current creations in its current markets—

It is almost certainly via an extra violent promotion blend.

It adds to sales to subsisting customers, or amplifies the travel and tourism business’s share of their hotel & tourism expenses;

The Loyalty programs can be engaged for raising the level of sales.

Market expansion is attempting to boost sales by trading current creations in fresh markets

–develop fresh clients, for the unchanged creations; worldwide travellers can be the target for existing hotel markets.

References

  • Albert, H. (1967) Marktsoziologie und Entscheidungslogik. Neuwied am Rhein: Berlin.
  • Cohen, E. (1978) ‘Rethinking the sociology of tourism,’ Annals of Tourism Research, 6. pp. 18-35.
  • Ferrell, O., Hartline, M., Lucas, G., Luck, D. (1998) Marketing Strategy. Orlando, FL: Dryden Press.
  • Froeschl, K.A. (1997) Metadata Management in Statistical Information Processing. Springer: Wien-New York.
  • Hruschka, H. and Mazanec, J.A. (1990) Computer-assisted travel counselling. Annals of Tourism Research, 7(2): 208-227.

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