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This section of the Unit 5 Marketing in Travel and Tourism Assignment Thomas Cook will be looking into the topic of various the concepts and principles of marketing in the travel and tourism sector. The report will be made on the basis of the renowned company in this sector, which is Thomas Cook. The report will be written from the point of view of an Assistant Marketing Manager for the company in the business of tour operating. The basis of the report will be the management’s plan for creation of a summer 2016 holidays for visiting Morocco and Egypt. The topics which will be covered through this section of the report will include the core concepts of travel and tourism marketing with respect to Thomas Cook, the impact of the marketing environment on Thomas Cook as a part of the travel and tourism business, the factors affecting consumer motivation and demand with respect to Thomas Cook in the travel and tourism sector and the principles of market segmentation and its uses in marketing planning for Thomas Cook.
Marketing as the business process can be defined as the procedure through which the various existing as well potential customers of the business entity are informed regarding the various tangible products or intangible service which are being offered by the company. Apart from the advertising and promotion of the products or service the other phases of the process of marketing includes tasks of selling the product or service as well as carrying out the market research (Kotler, 2011). One of the most important part of the basic marketing principle includes needs, wants and demands which are faced by the consumers and the differentiation in the product or service marketing by the business entity is done basis the whether the same attempts to satisfy needs, wants or demands of a customer.
Needs can be defined as the basic requirements of the human beings which are usually satisfied through the products which generally do not require any marketing push from the companies. The wants are one level more evolved than the needs, but are usually generated from the same requirements. Demands are the wants for specific products which are usually backed by the purchasing power of the consumers and requires significant effort to be impressed by the brand. The travel and tourism sector falls in this third category and hence the importance of marketing is immense for this type of services. In view of the specific nature of this industry the marketing needs to be highly customized as well as experiential in nature the importance of the same enhances. For the purpose of this current case study, it can be said that the demands which will be faced by the consumers for the tourism to Morocco and Egypt backed by their respective purchasing powers will be the driving force for the marketing by the company.
The factors which are often searched by the consumers in the brands and their marketing, which is also inclusive of travel and tourism sector is the value in the offering by the companies and if the same is being able to satisfy the consumers to the highest possible level or not. Purchase decision by the consumers for the travel industry are made on the basis of these two factor, i.e. value as well as cost satisfaction delivered by the service providers so that these services can fulfil their wants and demands. It is important that the tour package to Morocco and Egypt are considered to be of good value for the consumers in terms of the duration of the stay or the various logistical arrangements for the tour. In view of the fact it is expected the tour will be priced at a premium range, the value satisfaction is utmost importance for the package in terms of the destinations and aforementioned factors.
The other important factor for marketing process includes the process of exchange or transaction of the goods and services by the company. If one or more entities, usually the consumers and the service providers with respect to the travel and tourism industry, agree that the deal is appropriate for each of them, then this exchange of service takes place. In case of the scenario under discussion the same will take place in Morocco and Egypt which are destinations of the tourism package.
The impact of the marketing environment will be analysed through a micro environmental as well as a macro environmental analysis. The micro environmental analysis will be done on the basis of a SWOT analysis and the macro environmental analysis will be done on the basis of a PESTEL analysis. Both the analysis will be done for travel and tourism businesses of Thomas Cook Group and the tourist destination of Morocco and Egypt. We will start with the SWOT analysis:
Strength – It is very well known and reputed brand in the travel and truism sector, Morocco and Egypt are also globally well-known destinations. Thomas Cook has a base of loyal and satisfied customers, the company is present in several nations with a wide customer base
Weakness - A lack of strong online presence in view of the fact the company is yet to fully utilize the social media and internet as the mode of information sharing. Thomas Cook suffers from problems of managing the huge scale of business due to its latest expansions through which it has achieved vertical integration.
Opportunity – Usage of internet and social media in place of the traditional modes of information sharing, rising trend of the global demands can also be benefiting for the company, the company is also developing economies for their consumers which are unexplored by other companies yet (Weber, 2005)
Threats – Customised holidays from other companies primarily based on internet, Economic vagueness in the Eurozone can also hamper the attractiveness of Morocco and Egypt as the destinations
The landscape of the overall marketing environment has changed significantly over the last couple of decades and the same is applicable for the marketing of the travel and tourism sector as well. To understand the same, the PESTEL analysis is important which is as following:
Due to these various factors the marketing environment for the tourism industry has changed and the same has led to significant change for the industry. This will also impact the marketing strategy of Thomas Cook for the summer tourist destinations of Egypt. The company needs to adopt the online platforms more frequently for the entire strategic plan. It will be necessary that it can connect with and charm the virtual audiences through the online marketing activities.
Amongst the various important factors which has a lot of influence on the consumer motivation and demand in the travel and tourism sector includes the sonic cultural, technological and tourist motivation factors. As far as the social cultural factors are concerned, the shifting dependency of the consumers towards the responsible tourism which are also low cost has been a major trend which can affect the traditional bigger players in the industry. Also due to the still moderate to high level of unemployment the social acceptance of high cost tourism has decreased significantly.
For the technological factors the development of the online booking modules by various online based travel portal and the data exchange through social media has changed the way the new age customers are getting motivated in the industry. Hence reference from the various other people who have already experienced the destination or the service of the tourism company which the customers are opting for. The motivation for tourism has become more pull than push these days due to the advent of the websites like Tripadvisor, Tripoto etc. the consumers are searching for opinions and looking for options on these websites and the reviews made there by the other consumers previously and hence the same are also affecting consumer motivation and demand and Thomas Cook has to be cognizant of the same.
Definition of market segmentation can be given as a process for marketing of the company in which a large base of customers of the market is split into multiple smaller groups of the them. For the purpose of this division of the market few basic variables are used which are chosen with respect to the specific service that is being marketed. Some of these factors for market segmentation are as following (Kotler, 2011):
Segmentation can be very important for the marketing planning at Thomas Cook Group since this helps the marketers to target the service more efficiently for a group of consumers who are more likely to opt for the service. This will also help the company in its strategic marketing planning for Egypt as a summer tourism destination. Post the segmentation activity the marketing mix as well as the marketing communication can be developed for this specific set of consumers. This will also be helpful in developing the overall strategy of marketing by Thomas Cook in view of the fact that the group which is identified through segmentation tends to be consistent in its basic traits and this leads to an identification of the profitable customers for the companies (Kotler, 2008).
This section of the report will continue to look into the topic of marketing and will attempt to comprehend the role of marketing as a management tool in travel and tourism industry with the intention of identifying the importance of strategic marketing planning with respect to the travel industry. This report that will be basis the summer 2016 holidays to Morocco and Egypt managed by the company and will also discuss applicability of market information as well as marketing research for the travel and tourism industry. The other objective of this section will be to look into the influence of marketing on society.
The process of strategic marketing planning has the following activities:
The strategic marketing plan process typically has three stages:
The relevance of marketing research, as well as market information for the managers in the travel and tourism sector as well as Thomas Cook Group, is quite significant. Both of these are similarly necessary for the tourism industry as well. Some of the following are the factors due to which the relevance of marketing research as well as market information relevant is high for the marketing managers of Thomas Cook with respect to the travel and tourism sector:
For the purchase decision making of the consumers, one of the most important influencing factor is marketing and hence it can be said this is a fairly influential factor on the society. The objective of the marketing is to inform and influence the people from the society through the marketing strategy and communication. Hence the influence of marketing on the society is present and high. As far as the marketing of Egypt by Thomas Cook is concerned, this will not only influence the target market and its society but also will influence the society of the destination and the society of the destination. The impact of the same on the destination, i.e. Egypt can be only positive influence as a tourist destination. In view of the fact that the destination marketing does not have any element of negativity there can only be positive influences of the marketing with respect to Egypt as a tourist destination. This will also lead to driving of the consumer economy in which the company will be able to promote the tourism packages to a more refined set of target consumers most. Successful marketing will lead to creation and expansion of jobs, higher tax revenue for governments and, eventually, overall economic growth. The other ore benefits which can be delivered by marketing to the society include the following:
Marketing mix is one of the most important factor to be identified and managed for the overall marketing activities by the companies in the various industries. The travel and tourism sector is also no exception and it is important for Thomas Cook to address these topics at the time of developing any marketing plan. In this section, which will aim to identify the roles of marketing mix for the industry of tourism and travel, the topics which will be discussed will include product, price and place elements of the marketing mix for the company. Also the significance of service sector mix elements for this specific industry will be looked into apart from applying the concept of the total tourism product to the tourism business of Thomas Cook.
For the marketing mix, especially for the companies in the travel and tourism industry, the important elements include the product, price and placement of same. Following are the details of the same with respect to the Egypt package that is being designed by Thomas Cook:
The elements of service sector mix are very pertinent and relevant as well as important for the companies in the travel and tourism industry. Apart from the 4 P’s of the product marketing mix which are product, pricing, promotions and placement, the other factors which are included in the service marketing mix are 3 other P’s which are inclusive of process, people, and physical evidence. These factors are highly essential for best possible delivery of service.
Service marketing is a concept in which B2C as well as B2B marketing is done for letting the potential as well as existing customers know regarding the intangible service offering of the company. Some of the core concepts of tourism marketing which is needed to be kept in mind by the marketers at the time of developing the marketing plan for the companies in this sector are as following:
The total tourism product can be defined as the process in which the tourism business can cater to the primary as well as secondary tourist needs for the consumers. As has been confirmed by Jovicic (1988), tourist needs are the needs those are satisfied when tourism movement happens including the sojourn and travel outside the place of residence. For this reason, a need can be confirmed as a tourist need only if it necessitates a departure from one’s place of residence. Following are the categories of these needs (Paul, 1977)
The total tourism product is the one which takes care of all of these needs to for the consumers. In terms of the specific tourism package of Thomas Cook for Egypt and Morocco, the total tourism product will be the one in which the company delivers different types of varied as well as exhaustive services for the consumers of the company. This will include the travel to and from Egypt and Morocco for the consumers, the hotel stay arrangement at the destinations, the options of having food at different tourist destination through the hotels, the end to arrangement of sightseeing including arrangement of cars, guides etc. This proposition or the product will have various characteristics as following:
Burkart, A.J. and Slavoj Medlik (1981), Tourism: Past, Present and Future, 2nd ed., Butterworth-Heinemann, Oxford
Coltman, Michael M. (1989), Tourism Marketing, Van Nostrand Reinhold, New York
Jovicic, Zivodin (1988), A Plea for Tourismological Theory and Methodology, Revue de Tourisme , No. 3, pp. 2-5
Kotler, P. (2008). Marketing Management. Princeton
Kotler, P. (2011). Marketing Management. Princeton
Mrnjavac, Zeljko (1992), ÒDefining Tourist Product, Acta Turistica , Vol. 4, No. 2, pp. 114-124
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