Marketing in travel tourism
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10081 Downloads I Published: 30 Dec ,2016
Marketing is considered as one of the integral parts of the business that assist in making promotion of goods and services in an effective manner. The term marketing can be referred as the activities that are attached with buying as well as selling of the products and services. It involves advertising, selling as well as delivering of products to the customers. In the present report, marketing has been discussed in context of travel and tourism. The study entails to understand the concept and principles of marketing in travel and tourism sector. Further, it includes the role of marketing management tool in travel and tourism.
Marketing is considered as the element that is related with operations of business, irrespective of the industry where company is carrying out its operations. It has a greater role in establishing the interaction with stakeholders and determining as well as in gaining insight to the needs of target market. This results in increasing the image of brand and loyalty of customers. There are several concepts related with marketing which are referred as marketing orientation (Middleton, Fyall, Morgan and Ranchhod, 2009). There are five concepts of marketing that are being used by Thomson holidays. This includes product, production and selling, marketing as well as societal concept. The production concept is one of the oldest concepts of marketing and promotions. It focuses on manufacturing of the product on large scale and in huge quantity. It has been stated under product concept that the quality of product is of greater importance. With superior quality, better outcomes would be achieved by the organization. Further, the business that incorporates selling concept believes in attracting the customers in order to enhance the sales as well as to assist in sustaining within market (Gretzel and Yoo, 2008). The marketing concept has greater role in making analysis of needs and wants of target market along with the ways in which it can be satisfied. In contrast to this, societal concept gives huge importance to the welfare and development of organization where it is operating.
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The management of Thomson Holiday can make an effective use of marketing as well as societal concept. This would assist the business in sustaining within market for a long term. Under this, the firm can pay attention in determining the needs and wants of target customers. Further, through societal concept, Thomson Holiday can pay attention towards society by complying with its corporate social responsibility. Firm is going to organize tourist package of six days in which people will visit cities like Denmark, Amsterdam, Lisbon and Porto. In order to make cultural package successful firm will advertise its tourism package. In this it will use advertising appeal concept. Under which on the basis of specialty of historical monuments it will project its package. It will position its product on the basis of aesthetic nature of Denmark, Amsterdam, Lisbon and Porto. Along with this it can also use festivals in order to position its tourist package. In this way marketing concepts can be used for marketing of tourist package of the firm.
The activity related with marketing is highly influenced by several factors and forces. The marketing environment is categorized into macro and micro factors. The micro factors include suppliers, customers, competitors whereas the macro environment includes the factors such as political, social, technological as well as economical. These have been enumerated in the manner below:
Suppliers: For Thomson Holiday, the role of supplier is very crucial. This is because they link the business across the globe from the customers (Goeldner and Ritchie, 2006). The suppliers of the company include agents, accommodation providers who affects the travel and tourism business to greater extend. It is important that they offer quality services in an effective manner.
Customers: They are most important element that has huge impact on the products as well as services of the business in a significant manner. It is important to gain better knowledge regarding the needs and wants of the customers in order to satisfy them. Change in customers’ needs affects the overall travel and tourism business.
Competitors: Increase in competitors of Thomson holidays has huge impact on the individual travel business as this reduces the sales as well as profitability of company by minimizing the base of customers to a greater extent (Marsh, 2013).
Political: In the present era, political environment within UK is stable. It has the positive impact on business as it allows firm to operate in an effective manner. The transportation as well as infrastructure system is effective in communicating with the tourists in the nation.
Social: The trends in UK are changing faster. In the present era, there is high demand of the customers to gain offers. Further, they demand at gaining unique aspect of travel and tourism that brings suitable experience to individuals. People of UK like to visit place that are culturally reached. The cities that are covered in the package are well known for their rich culture heritage. Hence, tourist package of the firm will certainly get popularity among UK people.
Technological: UK travel and tourism has changed over time. There is existence of several technological trends within industry. One of this is related with online booking. The tourist has need to book travel arrangements as well as tickets through internet from distinct location (Xiang and Gretzel, 2010).
Economical: Economy of countries in which Denmark, Amsterdam, Lisbon and Porto are situated is not good. Due to this reasn there is a high inflation rate in the relevant nations. Hence, cost of tourist package that is covering cities like Denmark, Amsterdam, Lisbon and Porto will be high. Due to this reason less people may prefer to travel through company tourist package.
Customer motivation and demand are the two major aspects that need to be paid with attention by the travel and tourism business such as Thomson Holiday in an effective manner. This is due to the reason that it affects the overall performance of firm and affects its survival in the market. It is essential for the management of business to understand the motivation level as well as demand of customers in order to formulate the ways in which it can be achieved. With the assistance of such, the tourism business can develop ways through which they can offer maximum satisfaction to the customers (Hudson and Ritchie, 2006). This can affect their loyalty in a significant manner. Through this, company would be able to enhance its survival in the market for a long term. There are several models as well as approaches that can assist the travel and tourism business in making evaluation of customer demand and motivation. One of this is related with economic model customer possesses limited power to buy and they prefer purchasing the product that is needed greatly. In Denmark, Amsterdam, Lisbon and Porto there are many places to visit and these cities are known for the architecture, culture and historical places. This will act as motivating factor for those who love to visit places that have special identity across the globe. Hence, architecture, culture and historical places are the three factors that will motivate people to visit through company tourist package on the mentioned cities.
It is an important fact that marketing is one of the essential business operations that has impact on the overall performance of organization. Segmentation is an important part of marketing. It is referred to as the process under which the management makes division of target market into various segment (Ferrell, 2012). This assists Thomson Holiday in concentrating the marketing efforts in a particular direction. With the assistance of such, the promotion can be done in an effective manner. Marketing segmentation is all about determining the portions of market that varies from one another. With this, the organization can promote different products in varied markets. This would assist in satisfying the specific needs of customers. The segmentation of market needs to be evaluated on the basis of criteria such as identifiable, accessible, substantial, unique needs as well as durable (Berman, 2011). It is important that the attributes related with segment are measurable in order to ensure their identification. Further, the segment must be such that it can be reached with the assistance of various channels of communication. It is essential that the segment needs to be larger so that organization can get the need to justify their resources effectually. The segment needs to possess the ability to reply significantly to various segments that are present in the market. Market segmentation has huge role in market planning as with this, the promotional strategies for target market are being determined. Market segmentation is done on various factors and firm is segmenting market on the basis of cultural factors. Due to this reason firm select Denmark, Amsterdam, Lisbon and Porto for its cultural package. This is correct decision because country to country culture get changed. Hence, this acts a lucrative factor for the people to visit other nations. After doing market segmentation a marketing plan is prepared in which marketing mix is designed in such a way that helps firm in attracting customers at the market place.
Strategic marketing planning is referred to as procedure that is required to be undertaken by operational as well as managerial staff members. This is in order to develop suitable strategies for marketing. With the assistance of such Thomson Holiday can attain its objectives with effectiveness. Strategic marketing planning is an important part of entire functions, tasks that are performed by management in a particular course of time (Crooks and et.al., 2011). This is in relation to when the management of Thomson Holiday is required to promote their products and services in an effective manner. Further it is important to ensure that the marketing decision is taken appropriately. It is important that thorough analysis of target market is effective in retaining and attracting large number of customers for time duration.
There is huge importance of strategic marketing planning for tourism business. These are as such. The role of strategic marketing planning is important as it assist the business in providing direction that can result in its long term survival (Park and Yoon, 2009). Further, it helps the business in removing unproductive ventures as well as initiatives. It also supports business to focus on the activities that are important one. Further, it assists the business in providing maximum satisfaction to the customers.
Firm is using a strategic planning in order to attract customers. This is used to differentiate company products from the competitors’ tourist package. Under this firm prepare a package and under this it select specific cities that are known across the globe for the beauty or aesthetic nature. These cities were Amsterdam, Denmark, Porto and Lisbon. Under strategic plan it keeps low cost of its package. This acts as lucrative factor for people because with passage of time cost of tourist package also increases. It advertises its package on the basis of culture factor. In this way it differentiates and positions its tourist package among people. Thus, it can be said that firm perform well in competitive environment.
For the purpose of developing an effective marketing plan, it is essential for company to carry out thorough analysis of the target market. This would offer them a wide range of information as well data that assist them in the development process of marketing strategies. There is a huge importance of marketing research as well as market information to the manager of Thomson Holiday. With the assistance of market information, the organization can effectively can insight to the market it is required to serve. This would assist the business in developing plan in an effective manner so that activities of business can be carried out in an appropriate manner (Liu and Tsai, 2009). The information related with market is effective in gaining knowledge regarding current demand as well as tourism trends. Thus, this assists Thomson Holidays in developing the plan accordingly. The analysis of market can be done with the assistance of market research. Through this, company can effectively gain knowledge regarding the needs as well as requirement of customers. Thus it can develop marketing efforts in accordance with it. In addition to this market research has effective role in knowing the trends that prevailing in the travel and tourism sector. Firm conduct a marketing research and under this it collects a lots of information about the people preference on foreign cities and factors that motivates them to visit those cities at least once. On the basis of market research it select cities Lisbon, Amsterdam, Porto and Denmark for its tourist package. Its tourist package also gets a huge success. Hence, it can be said that marketing research has a great significance for managers.
Marketing is referred to as an activity that not just affects the organization or the competitors of the business but it majorly influence the society where the company is carrying out its operations. The impact of marketing on society can be viewed in terms of ethical standards as well as concepts. The marketing strategies which Thomson Holiday uses in tourism sector have huge impact on the life of the individuals living in society (Mehmetoglu and Norman, 2013). This has been assisted by the fact that such tactics results in affecting the ethical standards as well as moral principles that are being complied with by the people that are belonging to a particular region. In situation, when the strategies related with marketing are negative in nature then this results in affecting the thinking of people of society in an adverse manner. There are greater responsibilities attached with the marketing strategies that are being adopted by the organization (Dent, 2011). It has been determined that marketing tactics has a huge impact on the society in terms that it assist the business in gaining knowledge regarding needs, wants as well as expectations of customers. Thus, they can bring new products in the market. Marketing put a huge influence on society because it is firms that bring changes in the consumer behavior of the people and change their preferences. In UK most the people likes to visit in their home land but Thomson Holiday try to bring change in this trend and it cover locations in its tourist package that are situated abroad. Its package also gets a huge success. So, it can be said that marketing to large extent influence society.
There are four major components of marketing mix. This includes product, price, place and promotion. These elements are involved in the marketing strategies. Further, they have a critical role in the process of marketing the products as well as services. There is the existence of several issues that are in relation with product, place as well as price. The major issue with respect to product is in case when they are intangible in nature. This implies that customers of London Gatwick Airport might not gain insight to the superiority in services that are being delivered to the customers. Differentiation in products is another major issue that compels the organization to pay huge attention towards market research (Melewar and Saunders, 2000). The pricing that needs to be determined by the firm is also a major issue. This is because it determines the extent to which customers would be attracted towards services that are being offered by the business. In case if company keeps low prices then this would have impact on the performance of business to a greater extent. There is a great issue that is related with the place. It includes the problems that are associated with location and access to the products. Thus, London Gatwick airport requires constructing the airport at the more convenient place. In the present era, convenience plays an important role in the customer decision making. In addition to this, London Gatwick airport also difficulty in making effective or different promotional campaign which develops the positive image in front of the existing and potential customers.
The elements of services mix involve people, process as well as physical evidence. These elements are of vital importance to the travel and tourism business. It is important for London Gatwick Airport to provide suitable training to their employees so that they can offer quality services to the customers. Further, this would result in satisfying their needs in a significant manner. It is important that process of guiding the tour needs to be developed in an effective manner so that it can offer the best travelling experience to the visitors. The role physical evidence is also very crucial. Under this the company offers gifts as well as replicas of the renowned buildings in particular region to the customers (Passemard and Kleiner, 2000). Physical evidence includes interior and exterior of the airport. It also plays an important role in attracting the large number of the customers towards the London Gatwick airport. Bty makuing special seating arrangement London Gatwick can evolve satisfaction among their customers and thereby build loyalty among them. The social media can be an efficient way in which the knowledge can be offered regarding services that are offered by London Gatwick Airport. This would assist the firm in attracting large number of customers to a significant level. The elements of marketing mix are of greater importance as they assist in defining the right offer and price, create awareness as well as assist in getting the desired sales response. In travel and tourism sector, there is a greater importance of service marketing mix as it assist the business in attracting large number of customers towards the offerings.
There are wide range of places that are can be visited by the customers when they would avail the services that are being offered by London Gatwick Airport. Tourism industry is single one but is consisted of several industries that include hotel, airlines, travel agency, etc. Each of the industry is engaged in offering single product. In order to provide appropriate travel experience all these are combined together. With this all these industries are able to attain their goals with effectiveness. Total tourism product is referred to as bundle of facilities that are being offered by London Gatwick Airport in order to satisfy the needs of the customers (Alexander, 2007). In the present case scenario the total product of London Gatwick Airport includes the accommodation facilities, travelling packages etc. These can be used in order to enhance the experience of the visitors in an effective manner. These are individual products of airline sector under travel and tourism industry. In addition to this, Airport also offers quality food as well as other products and services and there by raises the standard of living of the people. Through this, airport offers bundle of product to their customers.
While carrying out the marketing process, an essential role is being played by promotional mix. This is used by the travel and tourism sector with an aim to create awareness about the product in market. It is important for the authorities of Sheraton Hotel to pay attention in order to make sure that right and best promotional mix is used by the organization with effectiveness. This is because such has an important role in determining the success of firm in a significant manner (Bitner and Booms, 2002). It is important in order to attract large number of customers towards the product. It is recommended to the management to make use of integrated communication technique under which different channels as well as methods of communication will be used. Further, it is essential to ensure that they are not linked with one another. Along with this, several promotional tools are also required to be used. There is greater role of promotional mix in increasing attractiveness of the customers towards the products. This results in increasing the sales as well as profitability of the Sheraton hotel in an effective manner. In order to push up the sales Sheraton requires making advertisement on the social networking sites. Now, large number of the people spends more time on the social networking sites. Through this, Sheraton can maximize their sales as well as profit by taking into consideration the integrated promotional campaign.
In order to promote the services of Sheraton hotel it is being suggested to the management of the firm to make use of promotional tools. This is because it has effective role in increasing the awareness among the customers in the market. The promotional tools include sales promotion, mass marketing as well as direct mail marketing (Craig and Campbell, 2012). In order to use of the strategy that is related with sales promotion it is essential for the organization to offer different types of discounts as well as schemes to the visitors. This is an effective approach that would the business in attracting large number of customers in an appropriate manner. Likewise direct mail marketing as well as mass marketing is promotional technique that would assist Sheraton hotel in reaching large number of audiences within specified duration of time. Further it also offers them opportunity to have interaction with them. In order to carry out such the methods such as social media marketing, mail letters as well as e-mails can be used. Social networking sites are the best way through which Sheraton can develop the awareness among the customers about the product and services offered by them. Through this, it can increase the market share of an organization and there by brand image.
It can be concluded from the study that marketing plays an important role in determining the success of business. This is because; through this, promotion of goods and services can be done in an effective manner. There is a greater impact of marketing activities on the performance of firm that are operating in travel and tourism sector. It has been inferred that strategic marketing planning is of greater importance as it assists the business in putting efforts in a particular direction. Marketing mix elements possess a huge role in determining the success of company to a significant level.
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