This marketing in travel and tourism sector assignment fulfills the aim is to give a stimulating learning environment with emphasis on innovation and social responsibility that connects students in tourism industry.
P1.1 Assess the impact of the marketing environment on individual travel and tourism businesses and tourist destinations
Marketing environment has been categorized into Micro Marketing Environment & Macro Marketing Environment
Micro Environment & Its Impact on Tours and Travel Business and Tourist destinations
Micro environment factors are factors that have a direct impact on business operations and its success. While deciding corporate business strategy, businesses should carry out a full analysis of their micro environment. The factors that directly impact are well defined through a diagram.
A diagram defining the factors impacting a Company at a Micro Level.
- Customers - As all businesses need customers, the company should be Orientated around customers. The marketing plan should aim to attract and retain customers through products that meets their "wants and needs" with excellent customer service.
- Employees - Staff with relevant skillset and experience is essential. This begins at recruitment stage and the process continues throughout an employee's employment via ongoing training and promotion opportunities.
- Suppliers - A supplier's behaviour will directly impact the business it supplies. For e.g. if a supplier provides a poor service this could increase timescales or product quality. This could indirectly impact the organization’s marketing mix.
- Media - Companies need to manage the media so that the media help promote the positive things about the organization and reduce the negative impact. Few organizations even employ public relations consultants to help them manage particular incident.
- Competitors – Competitors analysis and their monitoring is crucial if an organization want to sustain in a challenging world. They need to have a unique selling point. If a business is unaware of its competitor's activities they will find it very difficult to “beat” their competitors.
Micro Environment impacts Tours and Travel Business as these are direct factors that impacts Tourism business and tourist feedback is really important.
Macro Environment & Its Impact on Tours and Travel Business and Tourist destinations
By Macro Environment it refers to all the factors which are not affecting the business directly but to some extent it does control and affect the business. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces.
Specific examples of macro environment influences include competitors, changes in interest rates, and changes in cultural tastes, disastrous weather or government regulations.
- Economic Factors: The economic aspects are mainly external to the guideline of the industry; alternatively their consequences on particular undertakings can be commanding.
- Demography: The demography of Thomson Holidays has an outcome on the industry, since numerous persons are competent of exercising the services. These aspects may perhaps encompass of the populace, climate, geographic regions etc.
- Legal, political and social conditions: The tourism industry distinguishes loads of cultures, various communities and their customs. As a result, it is quite difficult for the industry to think about all the societies and their different structures.
- Disastrous weather: If there are natural calamities like flood, earthquake etc. it does influences the tourist destinations and it embodies a great significance in the mind set, behaviour of a tourist.
- Technological changes: Technology plays a significant role to take up rationalized competence and instruments to carry on insistent contest.
- Government regulations: Government regulations have a chief impact on the sightseeing segment on account of the strategies, regulations, rules and directives were performed by the existing government.
P1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism sector.
Consumer motivation and demand influenced by a variety of factors that affect travel and tourism sector. It involves the theory of why we travel and the way it impacts consumer behaviour.
Travel is often seen as a luxury, and when people are earning less or worried about earning less, they may eliminate travel from their budgets. As the world economy struggled in 2009 and into 2010, the travel industry suffered along with other businesses.
According to the World Travel and Tourism Council, global travel and tourism was down nearly 5 percent in 2009, specifically due to a struggling economy. Still, as the economy bounces back, the tourism industry will as well. The World Travel and Tourism Council predicted a 3.2 percent growth in the travel and tourism industry in 2011.
The package is often chosen by 2 major issues:
- a) Motivational characteristics that motivate travellers to aspire for attaining a package holiday, and
- b) Deciding about the attributes that create a judgment, if or not the voyager is experienced to compensation behalf of the mainly wanted service or merchandise.
Consumers have instant access to reviews and opinions about travel spots and accommodations around the world, as well as airlines, car rental agencies and other related travel companies.
The Digital Letter points out those travellers can learn everything they want to know about a tourist destination in a matter of minutes on sites such as Facebook, Twitter and Google. Business's website can also play a factor in consumer choice; if independent online reviews are not consistent with what company's claims, travellers are usually make a different selection. There are some points in the explorer proficiency like anticipation phase, Expenses and Memory that will be captured. In short we can summarize it with the help of:
P1.4 Analyse the principles of market segmentation and its uses in marketing planning.
Thomson Holidays can take up the steps as below:
1) Thomson Holidays has to opt for the intended segment identified as “The customer market”.
2) Inspect the elements of contentment that Thomson Holidays is determined to offer to this marketplace (Warner, 1997),
3) Selectattributes with which to fragment the market. These can be taken as Demographic, Psychographic, plus Geographic, besides theBehaviourist
4) As indicated by the preferred traits, Thomson Holidays should recognize the segments in the tour and sightseeing division.
Demographic – family revenue further than $80,000, equally parents are in employment, 2kids or added in household, lodginglocation in in-between to immensetownship
Geographic – every geographic quarter of the U.K. has peopleapposite to the arrangement.
Psychographic – ‘jam-packed with faction or hectic’ continuation as elucidated by occupants in segment
Behaviourist – family members differentiates practice is ‘tremendously quick, terribly hard, tremendously tiny control example together’.
5) Appraise whether the piece in which Thomson Holidays is running in, matches the 4significant elements for proficient segmentation
- well-suited – The job of the management is useful for helping out this sector as an outcome, there is much compatibility of the division with the Thomson Holidays’ business and other creations/services
- Substantive – If there is a handful convincing customers in this division, Thomson Holidays can widen in that area in upcoming era.
- Accessible – we can without problems be well-known through and converse with individuals in review (Ding, and Epigram, 1995).
- Experimental – we were talented to assess this section and make out by taking upplainly the survey information existing.
6) Fabricate an outline of the purchaser renowned with operating presentation approximations.
7) Attach the segmentation examination with accompanying studies conveyed to the commodities and sightseeing sector.
Positioning and with intent marking entity market segments encloses two aspects, namely the common sense and a qualification in on hand competitive opposition. A market segmentation structure needs a major accountability by means of the business. A trade has to use any of the ways i.e. group-market method or market segmentation traditions. There is not anything in the middle. Within anaimed market, we can classify the marketing approach in the structure of 4P’s. (See other solution of Unit 4 Marketing in travel and tourism)
P2.1 Analyse the importance of strategic marketing planning for a selected travel and tourism business or tourist destination
The strategic marketing planning is useful in the sense it does not allow business to for any hurried judgements and also safeguards from any kind of dilemma. This is a well-thought way in which the business owner collects the information and analyses the same in a fruitful manner and w.r.t the business goals. Similarly, Thomson’s Holidays has also laid down the strategic plans since its incorporation and has to continue to implement the same. The planning also needs regular updating with changes in the internal and external environments. There has to be flexibility so that any changes can be taken care of easily (Jarrod and Fall, 1998).
Strength-what the tradeis capable of doing,
Weakness- what it is unable to do,
Opportunity- all the accommodatingconditions and
Threats- characterized as the unnecessaryconditions that might be able todamage the industry.
The most important submission of Butler’s 1980 Tourism Area Life Cycle (TALC) interpretation is that a destination inaugurates as a realistically unidentified and tourists primarily travels on the way to it in slight amounts watched by wish for of innovation, services, and local details, which is taken as growth and development in the illustration underneath.Butler model of travel and tourism life cycle
To represent the developmentsystem of Thomson Holidays, An off matrix has been engaged with for the replicationaccessible and out lookedsouks and holidaymakers by the ways to build up by 4 unifications of services with promotion as in the table:
The BCG consulting matrix functional for the Thomson Holidays inspects the business services/product streaks. The reserves allocation is as given in the figure as below:
It is a cautious collection of Thomson Holidays to add some further investment in the areas of France as the travel and tourism division is on a rise. Switzerland has smaller quantity of rivals; as a result it may well be known as a cash cow. The logistics (DOGS) of Thomson Holidays’ is not very well designed, so the business can also sublet that region, while considering the other areas well.
P2.2 Discuss the relevance of marketing research and market information to managers in the travel and tourism sector
The effects so the right in of information available at the right time is also a job of management. There is a need for the marketing research methodologies to be applied so that the business can attain the updated information. A market research is of exhaustive allusion since it facilitates the institutions in assembling, forming, applying, and conveying the information, and in the specialized progress by offering the estimations and decision making. The market information and doing research offers the viewpoint to correspond and grants like a proposal for brand new liberates traits. Interdisciplinary research ventures will be confirmed with tourism learning, research in details and industrial information experience. For instance, there are up to now a mass of drawbacks to be undertaken in an endeavour to be capable in bearing put into practiceechoscope and endoscopic stopping over the attractions details inside a marketing information scheme. These divisioning choices necessitate a steady consistency of information possessions above and beyond nearly all up to date method on the road to the practical evolution of statistics achieved as of a fusion of studies (Robert and Alastair, 2006).
P2.3 Assess the influence of marketing on society
There are 4 main techniques in which the marketing have an effect on a society:
a) Advising the consumers:
The customers are educated and made clear of the foundations and services through the marketing. The procurer is progressiv eregarding the system his requests will be contentvia the exercise of the merchandise. Thomson Holidays’ can make use of the marketing strategies to inform the customers and prospectivebuyer’svis-à-vis its services as a result raising the sales level and the revenues it generates (Timothy, 1998).
b) Supervision of the hopes of customers:
The marketing undertakingstresses on the expectations of the buyers. The business can employ the brand recognition and the users are capable of evaluating the received services as in comparison to their past experiences or the perceptions of the product.
c) Financial gain:
The marketing responsibility is useful for the raise in the sales and hike in the revenues. The job of the marketing personnel is to capture the markets by encouraging people to buy the product and making them aware of the same. There is a need of defining the customers and potential customers for the brands.
d) Modelling behaviour:
The vendors have an intention to now the behaviour of the purchasers and also to attain the products that are able to influence the perspective purchasers.
P3.1 Discuss issues in the product, price and place elements of the marketing mix
As a novel marketing executive of London Gatwick Airport, I suggest that the usually costs of utilizing the services of the airport are not perpetually the foremost characteristic at the rear of the choice of customers. Cost (Price) has an exceptionally significant work in the airport promotion, since it is the meagre component of the marketing mix that elevates the incomes. The remaining 3 are promotion, place and product. These allon top embrace of charge in appearance of someprice tags relayed to them. And so, we are able to articulate that the prices organize the tradeaccomplishments and economic feasibility of the airports. In general, a pricing judgment of the airports is furnishedas indicated by the endeavour of recovery of the expenditures and attaining the funds for the further investment purposes that might be useful for expenditure on the services at the airports.
Airport is not a manufacturing unit with real production, but is a part of the service sector. For this, the value can be estimated w.r.t the perceptions and attainment of the services. The services are intangible in nature so the buyers find it difficult to assess the services as offered by the competitors at little lower, higher or similar price levels. Therefore, the prices of the services or products are a constituent of the marketing mix that is capable of being altered effortlessly and awfully speedily, since there is any requirement. Despite the fact that, rest 3 can’t be altered so effortlessly to manipulate individuals, encourage them and to persuade them to purchase the services. A minor slash in prices might be able to influence the preference of the explorers.
P3.2 Assess the importance of service sector mix elements to the travel sector
Marketing industry and non-sales services comprises the associated decisive modules like marketing controls. It is vital for Gatwick Airports to represent and examine the markets, perceivable segments and the target markets. After that there is a need for the Gatwick Airports to make a marketing mix as per the service sector point of view, wherein:
- Product would be the services being offered
- Price would be the comprehensive costs
- Place would entail the planning of the delivery and
- Promotion is benefit of large space which might have all the facilities, stores and various outlets wherein a person can relax and shop while waiting for the flights.
In production sector while the manufacturing takes place, the customers are not there available to look at the ways of production;however on the contrary while services are generated the manufacturing (Development) and delivery are at the same time. So the client is fully aware and can compare the similar service providers’. The realism is that the consumers suppose imperative services in the sightseeing and travel section as well. The brand image of the services is also a key to make the clients as the repeated ones.
P3.3 Apply the concept of the total tourism product to an individual tourism business – London Gatwick airport
“Total tourism product” , had been laid down by Middleton in the year 1989 which signifies that –“as maintained by a possible client in light of any composition of explorer hang about, the arrangement is capable of being represented as a collection or envelope of tangible and intangible constituents, recognized on blow on a goal. The small package is perceptible by the adventurer or holiday-maker as an insightful, existing at a cost” (McCarthy, 1994). This building of the holidaymakers is capable of being segregated in 2 grades:
- a) As similar to constituent’s model, the full arena that depicts the responsiveness of the voyager from the incidence human being goes or sets off on a voyage until he’s back from the tour,
- b) The other arena is exact phase that is the one element formation accessible by a remark able industry.
The service sector like London Gatwick Airport presents intangible services of airstrip. Although, if we relate to the tangible services it is able to throw in the provisions of the substantial amenities, hygiene, stairways, pulleys, etc. that is capable of being seen in conjunction with the intangible services (Kotler and Keller, 2006). The intangible donations of the airfield are the courtesy of the customer service branch, perceptive and information available with the front-desk personnel and the behaviour in which they tender client contentment.
P4.1 Assess the integrated nature and role of the promotional mix
The promotional mix is a compartment of the marketing mix which is capable of being depicted as below:
The promotional mix of Sheraton Hotel is a fundamental instrument that explains the business about the different options available with the business as the marketing mix and also boosts the revenue of the business on the long-term basis. The promotion mix is useful for a specific intention of marketing the services of the hotel. The promotion is regarding the creation of awareness among the society, raising the demand of the services, segmentation of the market and evaluation of the product as per the competitors with the attainment of steady level of sales. The general aim of the promotion is additional than all other goals. It is a process of communicating the hotel’s services and offerings to the potential users of the services and increase in the control over carrying out of services.
As in the figure above, the promotional mix uses various promotional techniques like advertising, PR, direct selling or advertising etc. through modification in the promotion mix and stress on the concept of integrated marketing, a vendor can easily maintain and control all segments from London. The hotel has food for the miniature variety in addition to elevated crowd segment. The rooms in the hotel are moreover splitas per the prices like deluxe, super-deluxe, luxury etc. If a client wants a luxury space with a balcony in rear, in that case the pries are moderately high, rather than choice of the nominal rooms with limited basic amenities available.
The salesperson has to lay stress on all sections in a different way utilizing special promotional actions used for each one. There can be amendments in the kind of hand-outs at an agreed cost. The major thought is to facilitate the client motivation to purchase the services (Davidson and Kirk 2002). Consequently, in integrated hand-outs it is vital to lay stress on the requirements of the buyer in an attempt to encompass a competitive edge in excess of contenders and earningextraincome. The promotional mix ought to be such, with the intention that the buyers feel excited to travel around the recommendations.
P4.2 Plan and justify an integrated promotional campaign for the Sheraton hotel.
As marketing human resource of Sheraton Hotel, I would accentuate on:
- Advertising is marketing declaration with accessible and potential customers and purchaser, accomplished by remunerated group media marketing services. The forms of marketing planning for communication are Internet, TV, broadcasting etc.
- PR (Public Relationship) is marketing report on the way to society on the other hand is turned more to reputation and symbol of the firm, than to its conceptions. The PR achievement’s instance is a journalists conference, TV consultation via business speaker, web based publicity, press editorial columns regards to bequest of the company to aid organization or on the subject of fresh environmental arrangement. Personal Sales is a technique of funding movement wherein the sales representative is explicitly contacting the customer. This person-to-person contact raises the sales as there is no deviation.
- Sales Promotion is promotion by rewards system like offering of 1+1 food item, 1 night stay along with the 2 night’s package at the hotel etc.
The industry marketing technique to promotional mix may possibly be assorted, due to the marketing principles and system. The push scheme is relocating the rescue weight downstream by the sales channels. The pull scheme signifies affecting the buyers very openly.
The Promotional Mix that produces the customer's desires causes the hike in the demand for the production i.e. the supply upstream.So, these two marketing systems of these 2 approaches are intertwined. In the foundationparts of the product life cycle, the pull marketing scheme is morecustomary. Soon after, as the market is saturated with personal and rival's service, the push marketing idea is foremost.
In conjunction with these traditions to promotional mix, there are quite a few other aspects that have an effect on the same.
In the direction of differentiation its services, Sheraton requires to put in efforts to be the merely one of its kind and not doing what other hotels/competitors do; the promotion mix should be distinctive that motivates the exercise of hotel services.
The promotional mix ought to be indirect so that it imitates the strength, limitations importance and opportunities of Sheraton Hotel.
Appealing marketing includes the individuality (positioning) of the services that the holidaymakers get(Product) at a charge that is diverse or similar to competitor’s (Price), at the place measurable (Place) and dispersed the same by a variety of marketing strategy and positioning of the merchandise or services in the souk. The awareness is created about the brand among the users (Promotion) (Shabbir & Thwaites, 2007).
Marketing task is all about the raise in the sales of a business as compared to existing markets. There is a mix of all-promotion, advertising, pricing, branding, segmentation etc. The travel and tourism sector needs to assess the need of the travellers and then place the products/services being offered so as to maximize the revenues.