Marketing in Travel and Tourism Assignment
The process via which the business organizations try to reach and interact with its existing and potential customers in order to comprehend their needs, desires and wants and then decide on as what and how to sell in the market is known as Marketing. Marketing occupies a significant place in the industry of marketing and hospitality. (E notes MBA, 2012) This marketing in travel and tourism assignment throws light on the principles and various concepts of marketing in the tour and travel industry. The organization that has been taken into consideration for the purpose of understanding these concepts is the tour operators Thomas Cook.
LO 1. Understand the concepts and principles of marketing in the travel and tourism sector
Introduction: Tour and travel industry is a largely growing business industry these days that caters to the wants and needs of millions of travellers. Since this industry is based on the satisfaction level of the customers, it is essential that prudent marketing strategies and plans must be framed by the organizations operation in this industry. I am Assistant Marketing Manager at Tour Operator Thomas cook and I have to prepare a report over summer 2016 holidays to visit Morocco and Egypt.
P 1.1 Discuss the core concepts of marketing for the travel and tourism sector
The core concept of marketing actually deals with analysing the market for the needs and wants of the customers and then producing the products to suit the needs and desires of the customers. If the products suit the customers it gives them satisfaction and helps in building a good relationship and customer base between the company and the customers. Tour Operator Thomas cook, reaches out to the customers and identify their needs through research and development programmes, survey methods and historical data. The company then provides a customized variety of tour and travel packages according to their budget, needs and preferences. Being an assistant marketing manager in Thomas Cook, I try to identify the requirements and preferences of the customers in the market and try to draft the marketing strategies that would attract the customers and enhance the revenue for the company. Since my organization operates globally, I try to reach the customers of all parts of the world by our effective promotion programmes. Social media and internet extend a great help in this regard. Our effective marketing promotion keeps the customers aware of our existing, new and upcoming products and offers. (Srivastava, 2011)
P 1.2 Assess the impact of the marketing environment on individual travel and tourism businesses within Thomas Cook Group and tourist destinations with reference to Morocco and Egypt
Marketing environment comprises of all factors that influence the operations of an organization at a specific time. The factors that can be controlled by the organization are termed as the Micro environment factors and the factors that can’t be controlled are macro environmental factors. Tour Operator Thomas Cook like all other business organizations, is influenced by these factors.
- Micro environmental factors: The factors that exist internal to the company such as the suppliers, competitors, customers, intermediaries, employees etc. are the microenvironmental factors influencing the operations of the company. As an assistant marketing manager, i keep all these factors in mind before drafting the marketing strategies. For instance, the preferences and wants of the customers, the prices and quality offered by the customers, the services and products offered by the suppliers, the needs and work environment of the employees etc. are taken into consideration while drafting the marketing strategies.
- Macro environmental factors: The factors working outside the control of the organization are the Macro environmental factors. While making the holiday packages for destinations such as Egypt and Morocco, we find that the system of tourism in these destinations, the economic conditions of these destinations, the political conditions of these destinations, the transportation and infrastructure at these places and the technology in use are the major environmental factors that influence the operations of Thomas Cook. For example the political instability in places like Egypt and Morocco that take place from time to time and affected economy plays a vital role in operations of the company at these places. The packages have also to be customised according to the culture of these destinations. (Oxford College of Marketing, 2015)
P 1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism sector
Industry of tourism industry is dynamic. For survival Thomas Cook understands the changes taking place in the market and the preferences of the customers. It is necessary for the company to understand the factors that motivate the customers to take the holiday packages. Following factors have been identified that influence the motivation and demand of customers in the tourism industry.
- Desire for a break from the busy schedule: The lifestyle of all individuals has become very tight and busy these days. The busy schedule and constant working of the individuals motivates them to have and spend a quality time with their loved ones. This encourages them to go on holidays with their loved ones.
- Developed technology: The technology is ever advancing these days. With the advancement in the technology, it is also getting cheap. The technology also helps the company in making the promotions of their products more effectively and increase the customer base. The customers also become more aware of the products and the offers given by the company. It has also become more convenient for the customers make choices amongst the existing products of various companies with the help of advanced technology. All this helps in motivating the customers and creating the demand for the holiday packages in the tourism industry.
- Effective Promotion Programmes: Effective promotion programmes help in reaching to the targeted audience and creating awareness for the product. This helps in motivating the customers and creating demand for the product.
- Increasing spending capacity of customers: The spending capacity of the customers has also increased with increasing salaries. This gives them the opportunity to spend on availing quality time with their family and friends. (Xaxx, 2016)
P 1.4 Analyse the principles of market segmentation and its uses in marketing planning at Thomas Cook Group.
Segmentation of market is an important strategy of marketing whereby the market is divided on the basis of certain common features. The requirements and preferences of these distinct groups are the same. Market segmentation strategy of marketing divides the customers into groups based on common factors.
- Segmentation Criteria: Segmentation of the market is done on the basis of geographic factors that include the customers within particular geographic boundaries, demographic factors that include the sex, education, age, cultural background, social background, economic status, psychographic factors that include the perceptions, lifestyle etc and behavioural factors such as the frequency of availing the service or buying the product, attitude etc. Working with Tour Operator Thomas cook while making the holiday package for Egypt and Morocco I shall try to segment the market by identifying the potential customers and then targeting them in various groups according to their preferences and offering them the products accordingly. Segmentation of market will help the managers like me to identify the requirements of particular segments and provide them with the best possible holiday packages to them. (Hub Pages, 2013)
- Conclusion: I being a assistant marketing manager of Thomas Cook, shall keep the above considerations in mind before drafting the holiday packages to Egypt and Morocco.
LO 3. To understand the role of the marketing mix in the travel and tourism sector
P 3.1 Discuss issues in the product, price and place elements of the marketing mix.
All business organizations irrespective of their size and the industry they are operating in, have to resort to the marketing strategies in order to be successful and achieve the marketing targets. The marketing mix has three kinds of elements, i.e. product, price and place. Thomas Cook caters to the needs of the travellers efficiently. I as an assistant manager associated with Thomas Cook will analyse the marketing mix of the company and if any issues are identified, I shall make the recommendations for enhancing the levels of profits for the organization.
- Product element of marketing: Product plays a significant role in the marketing mix. It is responsible for making the customers aware of the features present in the product and the needs of the customers it can cater to. Thomas cook customizes the holiday packages according to the needs of the customers. It caters to the travelling needs, accommodation needs, food and lodging needs and the recreational needs of the customers. It offers the packages that comprise of health tourism, shopping tourism, family tourism, teenage tourism, religion tourism etc. Being an assistant marketing manager in Thomas Cook, I suggest that the organization must make an effective research and development in the market to understand the changes taking place in the consumer taste patterns and technology on the global basis. The organization must design its marketing strategies and products according to the information obtained from the market after the research has been made. The questionnaire can also be floated in the market to know about the preferences of the consumers.
- Price element of marketing: Another vital element of the marketing mix is Price. It refers to the amount of money that the consumer has to part with in order to avail the service or product offered by the organization. The consumers of Thomas Cook belong to various geographical areas and have varied economic status. The paying capacities of different segments in the market are different. Therefore it is not advisable for a company to design uniform holiday packages, I would therefore suggest that the packages should be customized according to the budge of the traveller and the pricing strategies must be prudently designed so that the services can be availed by the maximum number of travellers.
- Place element of marketing: The element Place is also an important element in the marketing mix. It refers to the place where the services or products of the company are available. It is important because this element connects the customers and the services or products provided by the organization. Thomas cook has many offices all over the world and its operators are operating at global level through the advanced modes of technology. (Boundless, 2015)
P 3.2-Assess the importance of service sector mix elements to the travel sector
There are extended elements of marketing mix in the industry of travel and tourism that are integral to the operations of the industry. These elements are the service sector mix elements. Elements of service mix have additional three elements to the usual 4Ps of the marketing mix.
The elements of service sector mix:
- People element of service sector mix: The people associated with the organization define the service or the product offered by the organization. The organizations have to pay a good deal of attention on the customer relationships and the employees. The employees are specifically trained to provide optimum level of satisfaction to the customers. Satisfied customers help in building a reputed image of the company in the market. As an assistant marketing manager I must ensure that the employees of the company have interpersonal skills and they react and respond to the customers in a polite and effective manner.
- Process element of service sector mix: The mode or medium via which the product or service is delivered to the customer at the end deals with the element of process. Before the beginning of rendering the products or services to the customers, the organizations strategically decide on the issues of delivering the services/products to the end customers. Strategic decisions are taken on the process of delivery. I shall ensure that the products and services of Thomas Cook are delivered to the end consumers on time and in a qualitative manner. This will increase the base of satisfied customers.
- Physical evidence element of service sector mix: A substantially important element of the service marketing mix is the physical evidence. It plays a differentiating role in the marketing of services. Services are intangible in nature but the tangible aspects are also associated with the services in the tourism industry that gives a pleasant experience to the travellers. Therefore it becomes necessary for me to ensure that the quality of products along with the services meet the qualitative standards of the industry. For instance I must ensure that the hotels where the accommodation is provided to the travellers offer quality food and pleasant ambience along with good services. This will increase the repeated visits of the travellers. (Smith, 2016)
P 3.3 Apply the concept of the total tourism product to an individual tourism business.
Total tourism concept largely is used by the tourism industry these days. The term total tourism means complete holiday pack that comprises of products and services from one end to another. It includes all aspects that are essential for making the travelling experience of the travellers exciting and memorable for lifetime. It includes accommodation, food and beverages, and recreational activities, convenient facilities of travelling and local sightseeing. Being associated with Thomas Cook tour operators, I shall ensure that the individuals opting for total tourism receive the best possible package of all essential aspect of travelling and experience a life time amd memorable experience. (Koutoulas, 2013)
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After the completion of this assignment, I have a vivid idea about the principles of marketing, mixes of marketing, extended mixes of marketing and various elements of promotion of products and services. All these aspects are very important for marketing managers of the organizations. Understanding these concepts help the manager in targeting the potential customers and achieving the marketing targets and generating revenue.
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