Unit 5 Marketing in Travel and Tourism

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Introduction


Aim

This unit enables learners to understand the concepts, principles and role of marketing and the marketing mix, and gain skills to use the promotional mix in travel and tourism.

Unit abstract

The aim of this unit is to develop learners’ understanding of the key concepts and principles of marketing as they apply to the travel and tourism sector. The unit aims to equip learners with the knowledge and understanding of the key factors affecting marketing environments and the role of marketing in different industries within the travel and tourism sector. The focus of this unit is initially on marketing at a strategic level before moving on to the functional and operational aspects of marketing as the unit progresses. Learners will investigate the implications for marketing in today’s competitive and service-based sector and will have the opportunity to develop practical skills of marketing.

Learning outcomes


1 Understand the concepts and principles of marketing in the travel and tourism sector

Core concepts: concepts eg marketing concept and orientation, customer needs, wants and demands, products (and services) and markets, value, customer satisfaction and the exchange process, changing emphasis of travel and tourism marketing
Marketing environment: micro environment eg the tourism organisation, suppliers, intermediaries, customers, competitors; macro environment eg demography, economy, society, technology, politics, culture, tourism systems and destinations
Consumer markets: factors eg tourist motivations and determinants, models of consumer behaviour, consumer decision process, types of buyer behaviour, value-chain, customer value and satisfaction
Market segmentation: principles eg segmentation, targeting and positioning, segmentation bases, geographic, psychographic, demographic, behavioural, life-cycle stage, income, gender, geo-demographic, integrated methods, simple multivariate, advance multivariate, multistage, tourist typologies

2 Understand the role of marketing as a management tool in travel and tourism

Strategic planning: role eg strategic plans, Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, the concept of the product life cycle (PLC)/tourist area life cycle (TALC), Boston Matrix, strategic and tactical objectives, Ansoff’s matrix, competitive advantage
Marketing research and market information:importance for eg travel and tourism managers, market information systems, defining the market, measuring current demand and tourism trends, the marketing research process, forecasting and demand measurement
Marketing and society: influence on eg society, social responsibility and ethics, regulations and public policy, the impact of marketing on society, consumerism, environmentalism, legal considerations, sustainability

3 Understand the role of the marketing mix in the travel and tourism sector

Role: key issues; importance of service sector
Marketing mix: product; price; place
Product: elements eg product features, advantages and benefits, tangible, intangible and service elements, product classification, product mix and portfolio analysis, product life cycle, product development and formulation, individual tourism business product, total tourism product (TTP), product differentiation and branding
Pricing: elements eg role of price in the marketing mix, price setting considerations, cost classification, factors affecting pricing decisions, approaches to pricing, cost-plus pricing, break-even pricing, value-based pricing, pricing strategies
Place: elements eg distribution channels, location and access, principals and intermediaries, channel behaviour and the organisation, vertical marketing, channel objectives and strategy, physical distribution and logistics
Service sector mix elements: elements eg the nature and characteristics of services, internal marketing, interactive marketing, service quality, people, partnerships, programming, packaging

4 Be able to use the promotional mix in travel and tourism

Promotional mix: nature and role eg public relations, selling, advertising and sales promotion, direct marketing, internet and online promotion, integrated communications, communication channels, promotional mix decisions, budgetary considerations, monitoring and evaluating promotions
Advertising and public relations: principles eg objectives, methods, reach, frequency, impact, creating copy, costs and budgeting, media planning, public relations activities and tools, limitations, evaluation, role of agencies
Sales promotion and personal selling: skills eg aims and objectives, reasons for growth of sales promotion and merchandising, points of sale, methods of sales promotion used in travel and tourism, importance of travel and tourism brochures, personal selling functions

Resources


Essential requirements

For many learners this unit will provide their first contact with the main aspects of marketing theory applied to the travel and tourism sector. As such the unit may be delivered as a standalone package, but the recommendation is that centres attempt to integrate this unit into the programme as a whole.As marketing underpins business operations, this should be achievable without difficulty. Current trends, issues and innovations must be used to identify the application of marketing principles and techniques.

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