Free Sample: Marketing in the Travel and Tourism Industry paper example for writing essay

Marketing in the Travel and Tourism Industry - Essay Example

The Chartered Institute of Marketing’s’ (JIM) definition of marketing goes as follows Marketing Is the management process for Identifying and satisfying customer needs profitably. ‘Marketing Is the activity, set of Institutions, and processes for creating. Communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large’ this is an approved definition by the American Marketing Association Board of Directors. Marketing Mix; This usually refers to E.

Jerome McCarthy 4 P classifications for developing an effective marketing strategy which Includes product, price, placement (distribution) and promotion. 1) Identification, selection and development of a product. (2) Determination of Its price. (3) Selection of a distribution channel to reach the customer’s place. (4) Development and Implementation of a promotional strategy. There must be a balance between the 4 As of the marketing mix on order to achieve their marketing objectives for example a new company that Is Just setting out is likely to spend more time and money on promotion In order to advertise their business to the public.

Price The price of a product is the amount in which you have to pay to use, buy or rent a ravel and tourism; prices change constantly and based on many factors such as costs, seasonality, and competitor activity, state of the economy and the objectives of the organization. There are different types of pricing, Skimming is when a high price is charged initially for a new product that is unique and attracts customers who are willing to pay the high price for the product.

Cost-plus pricing this is known as known sometimes as ‘Accountant’s pricing, this is the simple approach that totals all fixed costs for example buildings and equipment and variable costs for example ages, energy costs and telephone this adds a small profit margin to arrive at the price charge. Penetration pricing is used by organizations wanting to get into a new market where there are existing suppliers of the same product or service. The price will be set sufficiently low to persuade customers to switch their allegiance, this is sometimes know as a ‘loss leader’.

Competitive pricing is referred to as the going rate’; competitive pricing assumes that where products or services are similar, the organization will charge the going rate, which means they will match the price of their competitors. Variable pricing is when different prices are charged according to the season, time of day, types (groups, young people, senior citizens, single parent so on so forth. Product A product is an article or substance that is manufactured or refined for sale.

Products in travel and tourism are very different to those of different industries, as in travel and tourism it is a service industry offering a variety of holiday experiences and travel services. A few examples of products that are in the travel and tourism industry; car hire, package holidays, travel insurance, hotel accommodation and rises. There are different types of products, Intangible is when you cannot see or touch it for example a short break to London or Pizza. Perishable, This means that travel and tourism services cannot be stored.

A seat on a flight is either sold or not. So firms have to manage what they offer to customers and the level of demand from customers, or they will disappoint customers (if demand is too high) or lose revenue (if capacity is unsold, such as seats on a flight). And then there is service-related, when on holiday the staffs working at the business or company in which you are a customer in, provide a service and they are crucial to make sure that the customers get the service they deserve and give them a pleasant holiday experience.

Place or the location of the business is very important for success. As if a company is in a rural country area that is hard to locate then you’re not going to get as many customers as if you were to set the business in the high street or city. The business needs to be accessible in order for customer to come to you. Promotion, A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. Promotion is any activity to raise awareness of a product or to encourage customers to purchase a product.

Advertising is a form of promotion but not all promotions are advertisements. The Marketing mix of ‘Apple’ Product Promotion Portable Computers e. G. Imax Servers e. G. Emblem Accessories e. G. Keyboard, Led Cinema Display Wi-If Based Stations e. G. Airport Express, Time Capsule pod, phone tunes e. G. Movies, audio books Peripheral Products e. G. Printers, storage devices. Apple Stores are located in Asia/Pacific, Africa, the Middle East, Europe and Latin America. Apple has over 200 retail stores worldwide including the US, UK, Canada and Shanghai China.

The online Apple store offers free shipping for orders over $50 Apple stores offer tunes gift cards Apple provides a $100 rebate when you purchase a Mac or specific printers from the online store Apple has packaged back-to-school offers, including some aimed at college students. Special discounts on refurbished Macintosh computers, pod Nanas and the BOB pod touch. In each case 1 year warranty is included on all products. Authorized Training centers are located throughout the U. S. Each provides instructions in Mac systems, Mac SO X and Apples professional applications.

A wide range of certification exams and courses offer innovative learning opportunities for IT and creative professionals, educators etc exclusively delivered by Apple Certified Trainers. The apple Consultants Network website provides a search tool allowing visitors to locate nearby. The Market Segmentation Some European tourist destinations can be classified as either winter or summer destinations or they are destinations that are visited for a special activity or event. This is called market segmentation & each destination attracts a particular customer hype.

The market segmentation is defined as ‘The way in which travel companies or destinations split the potential market in order to focus on meeting of a particular type of customer’. There are two different types of segmentation which are customer and destination segmentation. Customer Segmentation – Market segmentation by the specific customer type who visits the destination Destination Segmentation – Market segmentation by the destination itself There are also different types of customers in the market segmentation as different types of customers prefer different types of resorts.

Therefore it’s important to ask customer questions when booking holiday to clearly establish their holiday needs & requirements. Here are some examples of different types of customers; Senior Citizens Couples Single Travelers Families Educational / School Groups Stag / Hen Parties For example the different types of needs of families, couples and singles. Families; Wide range of types of holidays, depending on family unit & age of children & budget, Kids clubs, Water parks, Shops, Bars & restaurants, Sports, cinemas, etc.

Couples; Any age group, Young couples may look for cheaper places, Older couples, empty nesters, normally have more money to spend. Singles; Want to meet people, often chose activity holidays, Walking tours, Cultural holidays, Travel with specialist tour operator. Types of Marketing Communication Methods Marketing communications are the tools a company uses to deliver a range of promotional messages to its target markets. Businesses use a range of marketing communications to promote their companies, their products and services.

Examples of marketing communication tools include; Brochures Mail shots Websites Advertisements Sales promotions Exhibitions Personal Selling Press publicity campaign E-Marketing Very simply put, E-Marketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms E-Marketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous.

E-Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers. By such a definition, E-Marketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity.