Marketing in Travel and Tourism

TASK 1

1.1 Core concepts of marketing for the travel and tourism sector

Marketing is not only selling and advertising of goods and services but satisfying consumer needs also (Harrison, 2006). There are various core concepts which are needs to follow by Thomson Holidays for developing effective cultural package of 6 days visits. Marketing core concept is as follows:

• Human needs are very important for Thomson holidays in developing effective cultural package of 6 days visit. In includes the basis physical, social and individual needs of different types of tourists. Physical needs comprise food, cloths, kindness, safety and security of individuals and their languages, etc. Social needs of tourists are belongingness and affectation. Individual needs of different tourist generally focused on knowledge about different tourist places (Aaker, 2011).
• As per the above discussed human needs different tourists have distinct wants for satisfying their needs, such as for American tourists need of food can be satisfied with the burger, French fries and soft drinks, etc. But other tourists have another wants. Therefore, Thomson must consider the tourist wants which satisfies their physical, human and social needs at the time of marketing planning.
• Demand of the consumer focuses on that types of products and services which provide up to the most satisfaction of their wants (Craig and Campbell, 2012).
• Thomson holidays must offer that products and services which satisfies the wants and needs of the different tourists. It focuses on the experience, properties, places, information and ideas of marketing management of tour operator.
• Core concepts of marketing also include customer value that can measure by benefits which are gained by customers from their visits in exchange of payment for obtaining the services of Thomson holidays (Rust and Verhoef, 2005).
• Quality of the Thomson tour operator service play an important role in satisfaction of different tourists.
• Exchange and transition is also an important concept of marketing. Thomson offers the 6 days visits to tourists in exchange of some specific exchange of money. This exchange is known as transaction between tour operator and tourists.
• For effective response for their 6 days visits Thomson organization needs to develop long term relationship with their tourists, distributer, dealers and suppliers, transporters, etc (Laesser and Finsterwalder, 2013).
• Market is also a core concept of marketing in travel and tourism sector. Number of tourist for cultural visits is known as market of Thomson holidays. Along with this it can be raised by satisfying needs and wants of tourists through exchange of products and services and effective relationship.

1.2 Impact of the marketing environment on individual travel and tourism businesses

Marketing environment can be divided in two major parts, such as: micro and macro environment (Nwokah and Ahiauzu, 2009). Micro environment includes Thomson holidays, competitors, suppliers, intermediaries and tourists and macro environment comprises demography, economy, society, technology, politics, culture, tourism system and destination, etc. Different elements of the marketing elements have some positive and negative impacts on Thomson holidays and its cultural visits.

Thomson holidays and its cultural visit package influences by competitors and their strategies as well as suppliers which provide inputs for the different services for the organization will affect the operation management of the Thomson holidays (Mitic and Kapoulas, 2012). Including this intermediary such as dealers of different region which deals with the tourists regarding the visit will affect the demand of the customers and sales of the Thomson. Major customers of the Thomson holidays are tourists and that affect the product and pricing policy of the organization as well as marketing planning and tour planning of the company (Melewar and et.al., 2008).

Macro environment factors also affect the Thomson organization and its visit. Demographic characteristics such as age, life style and income status influences the marketing strategy for the whole tour because different age people have distinct needs and wants so company must focus on the demographics of all tourists (Henley, Raffin and Caemmerer, 2011). Along with this technology affects the transportation and communication strategy of the company. As per the latest technology Thomson should arrange latest technological transportation as well as effective network and internet services at different destinations for effectual communication services for tourist. Economical environment affects the price of whole visit and budget of Thomson holidays. Society influences the corporate social responsibility of the Thomson during this cultural visit. In addition tourism system and destination affects the whole tour strategy, marketing themes and marketing planning of the company (Richards and Padilla, 2009).

1.3 Factors affecting consumer motivation and demand in the travel and tourism sector

Consumer motivation and demand has a close relationship with each other, but there are various factors which affect motivation of tourist and demand of Thomson organization, such as determinants of tourists’ motivations, models and types of consumer behaviour, decision making process of tourists, value chain, customer value and satisfaction (Andersson and Servais, 2010).
Customer value and satisfaction is the major factor which motivate a person to take a part in the cultural visit of Thomson holidays. If Thomson provides appropriate return of customer’s money in terms of successful and enjoy full visits then customers motivates towards the cultural visit. Major motivation factors for tourists are tour facility, hotels and restaurant facilities during the whole tour, etc. Along with this buyer behaviour and model also influences the overall demand of the cultural visit of Thomson holidays (Cao, Yong, and Thomas, 2005). As per the buyer behaviour model tourists includes needs and requirements of personal, group and organization. Therefore, at the time of tour planning Thomson needs to consider different needs and requirements of distinct customers, this consideration will increase the total demand and consumer motivation of travel and tourism organization. Including this consumer decision making process includes different decisions which are influenced by the awareness of the different tour, alternatives and choice of customer (Layton, 2011). Thus, tourist decision making process is also affected by the different competitors and their cultural tour for tourists. Value chain includes the supply chain and demand chain of Thomson holidays. Both influence the customer motivation and demand of the company for their cultural tour. It includes marketing, sales and service activity of Thomson holidays which increases the overall customer of the organization. Customer value and satisfaction is the major factor which change the demand and motivation of the different tourists (Avlonitis and Indounas, 2006).

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1.4 Principles of market segmentation and its uses in marketing planning

Market segmentation for Thomson holidays can define as breaking the entire target market into various groups and this division is based on the similar needs and requirements of tourists for this cultural tours. Along with this market segmentation for Thomson holidays can also be done by the geographic, demographic, psychographic, behavioural and demographic characteristics of tourists. Major principles of the market segmentation are as follows (Tsiotsou and Ratten, 2010):

• Market segmentation of tourist must be clearly identified and measureable for Thomson holidays.
• Segment of the tourist should be reasonably constant over the whole cultural visit of Thomson holidays.
• Market segmentation must be on the basis of the real business environment of the company (Michman, 2006).
• It should be easy to reach for Thomson holidays as well as responsive also.

All these principles help in marketing planning of the Thomson holidays for their six days cultural visit, such as it includes different targeting and positioning strategy which affect the overall marketing planning of the organization (Lilien, Rangaswamy and Bruyn, 2013). In the geographical marketing segmentation Thomson needs top focus various elements at the time of marketing planning such as company needs to ensure about the customer demands and requirements as per their region, size, population density and climate. Marketing planning in the demographical segmentation Thomson holidays needs to consider age, income, purchasing power, occupation, gender, nationality, religion and nationality of different tourists and their requirements (Charles, 2007). In the marketing planning of psychographic segmentation the Thomson holidays needs to consider interest, opinions, attitudes and values of tourists towards this cultural visit. Thus, market segmentation is used by the Thomson holidays in effective marketing planning of organization.

TASK 2

2.1 Importance of strategic marketing planning for travel and tourism organization

Strategic marketing planning can be defined as identification of marketing strategies for effective decision making and allocation of resources as per the goals and objectives of Thomson holidays organization for their cultural visits (Galliers and Leidner, 2013). Marketing strategic planning is a systematic process of developing goals, mission and objectives, examining internal and external issues of company, SWOT analysis and developing marketing strategies for their cultural visit. This marketing planning is very important for Thomson organization. Marketing strategic planning includes various marketing models, such as SWOT analysis, Product life cycle, Tourist area life cycle (TALC), Boston Matrix, Ansoff’s matrix, etc for developing effective strategic and tactical objectives and competitive advantages of organization.

SWOT analysis is important for Thomson holidays for identifying their strength, weakness, opportunities and threats of the organization and it helps in developing strategies for overcoming their weaknesses through their strengths as well as it facilitates different marketing strategies for attaining their market opportunities (Machlouzarides, 2010).

Tourist area life cycle helps in changing marketing strategies as per the different stages of the life cycle as well as tourist destinations. Thus, strategic planning through TALC enhances the capability of managers of the Thomson holidays to manage entire tour, tourists and destinations of culture visit.

Marketing strategic planning tool Boston Matrix helps in developing strategic as per the market share and growth of the Thomson holidays. These strategies help in attaining competitive advantages of the tourist organization (Aspelund, Madsen and Moen, 2007). Another strategic tool such as Ansoff’s matrix helps managers of Thomson holidays in analysing potential growth strategies of company for expanding their existing or new business of the Thomson holidays through the market development, penetration and diversification strategies.

2.2 Relevance of marketing research and market information to managers

Marketing research can define as a process of developing association between tourists and Thomson organization through the various marketing information (Layton, 2011). Therefore, marketing research helps managers of the Thomson holidays in gathering marketing information which are essential for the developing marketing strategy of organization. Marketing research provides information regarding the ethical consideration at the time of marketing strategic development. Market research also provide some information regarding the market competitors, structure, regulations, economic trends, technologies and various other factors of the organization which affect the marketing planning of the Thomson organization (Machlouzarides, 2010).

Various marketing information which are obtained by the Thomson holidays by effective market research is very helpful for manager of organization. Marketing information helps in formulating strategies as per the tourist needs and requirements and trends of environments. Along with this it helps in forecasting demand of the consumers. Therefore, marketing research and information is very essential tool for managers which help in effective marketing management of whole tour of Thomson holidays (Business tourism, 2014).

2.3 Assess the influence of marketing on society

At the time of marketing Thomson holidays needs to consider different issues regarding marketing strategies which have positive and negative impact on the organization. Such as marketing of the cultural visit of Thomson holidays enhances the awareness about this tour in customer’s mind which is helpful for those tourists which are required to join this type of tour. Marketing of the cultural tour provide assistance in giving appropriate information regarding location of whole tour, favourite brands, package prices and types of payment all these elements helps in satisfying the tourists needs for their cultural visits. Along with this, marketing helps to the tourists of society in getting better product at lower costs (Ferrell and et.al., 2012). In addition due to the effective marketing the whole society can obtain the information regarding the corporate social responsibility, sustainable development, ethical consideration of the organization and these information helps in society development as well as organization success of the Thomson holidays.

TASK 3

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

Marketing mix of the London Gatwick Airport includes products, price, place and promotion of the airport (Service Marketing Mix, 2014). It is facing various issues regarding its marketing mix, such as:

• It is offering the product and services if internet ant Wi-Fi connection for their passenger at whole airport but airport is facing the problem of Wi-Fi connectivity in different places of Airport. Along with this airport provides the parking facility for passengers but recently airport is facing the problem regarding the parking area.
• Price is also an important element of the marketing mix and recently airport is facing the problem of rapid changes technology and it requires huge amount of investment which leads high price of different products and services. These high prices affect the overall demand of the passengers of airport (Individual Tourism, 2014.).
• Lack of place and area is also a big problem for lending of more than three flights at the same time.
• Ineffective promotional strategies are also a huge issue of the London Gatwick Airport.

3.2 Importance of service sector mix elements to the travel sector

Marketing mix of the organization includes only four P’s but service mix comprises 7 P’s marketing strategies. It is very important for travel and tourism sector organizations because these companies generally offer different services to their tourists (Service Marketing Mix, 2014).

Major elements of the service sector mix are people, process of services, and physical evidence of services. People generally who defines the services of the London Gatwick airport are employees and pilots, etc. All are very important for providing different services to passengers of airport. Quality of the services also associated with skills and knowledge of the people of service sector of airport. On other hand service process is also significant element for the travel sector of the London Gatwick airport (Galliers and Leidner, 2013). Service process influences the quality and quickness of services as well as it also affects the customer satisfaction of the organization of travel sector. Thus, effective service process is very essential for travel sector. Services are intangible in nature but some important elements such as cleanliness of airport, appropriate staff, such as well dressed pilot and airhostess increases the value of services of London Gatwick airport. Therefore, element of service sector mix is an important for travel sector organization.

3.3 The concept of the total tourism product to an individual tourism business- London Gatwick airport

The concept of total tourism products includes a combination of all elements, products and services which are required to satisfy the needs and requirements of tourist during their whole trip. London Gatwick airport is an individual tourism business which needs to consider this concept in their business to gratify their passenger’s needs. At the time of travel form airlines passenger’s needs includes security and safety, food, effective communication about each destination etc. London Gatwick airport needs to make arrangements about safety and security of passengers, food items, drinking water, comfortable seating chairs and effective environment, etc. Thus, London Gatwick airport needs to arrange all service which is requires for their passenger during the time of travel (Ferrell and et al.,2012).

TASK 4

4.1 Assess the integrated nature and role of the promotional mix

To promote the services and products to consumers, individual business organization takes some marketing strategies which are known as promotional mix (Service Marketing Mix, 2014). Major elements of promotional mix are as follows:

Nature of promotional mix:

• Different elements of promotional mix focuses on defined segment of the hotel.
• Advertisement is a paid form of communication and it targets the mass audience.
• Personal selling is an exchange of goods and services through personal communication with oral presentation.
• Sales promotion includes coupons, free gifts, contests, luck winners etc which increases the overall consumer demands (Service Marketing Mix, 2014).
• Public relation can be maintained by the favourable presentation about products and services of hotel.

Role of Promotional mix:

• For targeting an appropriate market for different services of Sheraton hotel.
• In increasing the awareness of the product in customer’s mind.
• Effective communication between different stakeholders and management of hotel.
• For maintaining effective customer relations (Aspelund, Madsen and Moen, 2007).

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

For promoting the all services of the Sheraton hotel, marketing managers decides an appropriate goal and objectives such as high awareness about the services of hotel in customer’s mind. Suitable promotional tool for the promotion of Sheraton hotel are advertisement, public relation and sales promotion (Chung, 2007). Television and internet advertisement, poster of the hotel on different airports are appropriate for promotion of hotel. Along with this for maintain effective public relation organization can use favourable presentation in famous new paper as well as hotel can offers a unique gifts for first five customers in their hotel. It will increase the customer rate of the hotel. After implementation hotel should monitor the performance of the promotional tools and makes sure about the effective implementation of all tools (Business tourism, 2014).

CONCLUSION

The present research report concludes that core concepts of the marketing for Thomson holidays are customer’s needs, wants and demands, product and services, value, customer satisfaction and quality, exchange, transactions and relationships and markets. It also concludes that effective strategic planning, marketing research and information are very important in planning for the culture visit of Thomson tour operator. Marketing mix and service sector mix play an important role in resolving various issues of London Gatwick airport regarding their product, price, place, promotion, people, process and physical evidence, etc. In addition research has been described that promotional mix is very significant for Sheraton hotel for increasing the awareness of their services in consumer’s mind.

REFERENCES

• Andersson, S. and Servais, P., 2010. Combining industrial buyer and seller strategies for international supply and marketing management. European Business Review.
• Aspelund, A., Madsen, T. K. and Moen, O., 2007. A review of the foundation, international marketing strategies, and performance of international new ventures. European Journal of Marketing.
• Avlonitis, G. and Indounas, K., 2006. Pricing practices of service organizations. Journal of Services Marketing.
• Cao, Yong, and Thomas, S., 2005. Reducing adverse selection through customer relationship management. Journal of Marketing.
• Chung, H. F. L., 2007. International marketing standardisation strategies analysis: A cross-national investigation. Asia Pacific Journal of Marketing and Logistics.
• Harrison, D., 2006. Dictionary of Leisure, Travel and Tourism. Reference Reviews.