Free Sample: Marketing strategy in the tourism industry paper example for writing essay

Marketing strategy in the tourism industry - Essay Example

All companies in the conditions of the rigid competition, quickly changing situation have o not only concentrate attention on internal state of affairs in the company, but also develop strategy of a long-term survival which would allow them to be in time behind the changes happening in their environment. Strategy represents the detailed comprehensive comprehensive plan, intended to provide implementation of mission of the organization and achievement it is more whole. Formation of strategy is one of management functions which represents process of a choice of the purposes of the organization and ways of their achievement.

Marketing strategy is a strategy of the enterprises focused on market values. Marketing strategy has two main reference points – the market and a product. The subject of a term paper is actual since for many enterprises marketing strategy is the major strategy as it provides validity of a market orientation of the enterprise. The purpose of a term paper consists in a choice of such marketing strategy for the studied organization as a result of which the company will achieve the objects, and will be in time behind the changes happening in its environment.

Practice of business showed that there is no strategy, uniform for all companies, as well as there is no uniform universal strategic management. Each firm is unique in own way, and process of elaboration of strategy for each firm is unique as it depends on a firm position in the market, dynamics of its development, its potential, behavior of competitors, characteristics of goods made by it or services rendered by it, state of the economy, the cultural environment and still many other.

Certainly, always it is necessary to remember that strategic management -? it first of all a product of creativity of the top management, but at the same time it is possible to tell and about a certain theory of the strategic management which knowledge allows to exercise intro of the organization more effectively. 1 . Kinds of marketing strategy and process of their choice. 1. 1 . Definition of strategy and their version. Company strategy, as a rule, consists of the thought-over purposeful actions and reaction to unforeseen succession of events.

The firm defines the long-term actions in relation to the markets, the commodity range, pricing, merchandising and goods advance on the market, develops marketing strategy according to various conditions of demand, forms the global directions of the development. Firms have a big degree of a freedom of choice of strategy. They can diversify the activity in connected or not the connected grew by means of creation of Joint ventures, strategic alliances, acquisition of other companies or opening of new activities.

Some companies follow strategy of leadership in expenses, others focus attention on various combinations of numerous properties of goods more attractive to clients, and the third choose discussion of special inquiries of a narrow circle of buyers. Further the main marketing strategy which are more often used for organization development will be given. Marketing strategy -? process of planning and realization of various marketing actions, which are subordinated to achievement put before the company (firm, the organization, business structure) is more whole.

All variety of strategy which commercial and non-profit organizations show in real life, are various modifications of several basic strategy. Each of these strategy is effective in the certain situation determined by factors of internal environment therefore it is important to consider the reasons of a choice of a certain option. The organization is faced by four main strategic alternatives: 1 . Limited growth. The majority of the organizations adheres to his alternative, for it establishment of the objectives from achieved, inflation- adjusted is characteristic.

It is the easiest, convenient and least risky way of action. Apply in the mature stable industries having stable profit in the past. At strategy of limited growth of the purpose of development are established “from reached” and are corrected at situation change. If the management, is generally satisfied with position of firm, it is obvious that in the long term it will adhere to the same strategy as it is the most simple and least risky way of actions. 2 . Growth. This strategy is cost often applied in dynamically developing branches with quickly changing technology.

The strategic alternative of growth is carried out by annual substantial increase of level of short-term and long-term goals over level of indicators of previous year. This strategy is the chosen alternative second most often. It is applied in dynamically developing branches with quickly changing technologies. Growth can be internal or external. Internal growth can happen by expansion of the range of goods. External growth can be in allied industries in the form of the vertical or horizontal Roth by a way of acquisition of other firm, their association or merge. 3 . Reduction – strategy of a last resort.

Options of realization of strategic alternative of reduction: elimination, cutting off superfluous, reduction, reorientation. This strategy gets out the organization most less often. For it establishment of the objectives below the level achieved in the past is characteristic. To strategy of reduction resort when indicators of activity of the organization get a steady tendency to deterioration, and no measures can change this situation. 4 . Combination – strategy of a combination f all alternatives which the major companies which are actively operating in several branches adhere.

This strategy represents a combination of the considered alternatives – the limited growth, growth and reduction. The large organizations which actively function in several branches adhere to this strategy, as a rule. For example, the firm can sell or liquidate one of the productions and in exchange get one or several others. Marketing strategy (F. Kettle). According to F. Kettle, the firm in competitive fight can play one of 4 roles. The marketing strategy is defined by position of the company in he market, whether is she the leader, the applicant, the follower or occupies a certain niche: 1 .

The leader (a share in the market about 40%) feels surely. The leader of the market possesses the greatest share of the market of a certain product. To strengthen a dominant position, the leader needs to seek for market expansion as a whole, attracting new consumers, finding new ways of consumption and use of production. For protection of the share of the market the leader uses strategy of position, flank and mobile defense, preemptive strikes and reflection of the attack, the compelled reduction. The majority of leaders of the market seek to deprive of competitors of the possibility of transition to approach. . The applicant for leadership (a share in the market about 30%). Such company aggressively attacks the leader and other competitors. Within special strategy the applicant can use the following options of attacks: “frontal attack” – is conducted in many directions (to new goods and the prices, advertising and sale), this attack demands considerable resources. “environment” – attempt to attack all or the considerable market territory of the market. “round” – transition to production of essentially new goods, velveteen of the new markets. Attack of a gorilla” – small gusty attacks not absolutely correct methods. 3 . The follower – (a share of 20%) the company which to seek to keep the share of the market and to bypass all banks. However even followers have to adhere to the strategy directed on maintenance and increases in a share of the market. The follower can play roles of an imitator or the double 4 . Dug round in a market niche – (a share of 10%) serves a small segment of the market to which there is no business to major companies. Traditionally this role I played small business, today strategy of niches use also the large companies.

Key to niches – specialization. The companies focusing in niches, choose one or several areas of specialization: on end users, down, depending on the sizes of clients, on special clients, by the geographical principle, on a product, on individual service of buyers, on a certain ratio of quality/price, on service, on distribution channels. Some niches are more preferable than one. Main competitive strategy (M. Porter). Malt liquor allocates five main competitive strategy: 1 . Strategy of leadership in the expenses, providing decrease in full costs of reduction of goods or services. . The strategy of broad differentiation directed on giving to goods of peculiar features, distinguishing them from goods of rival firms that promotes attraction of a large number of buyers 3 . The strategy of optimum expenses which is giving the chance to buyers to receive for the money a great value at the expense of a combination of low expenses and broad differentiation of production. The task consists in providing optimum expenses and the prices concerning producers of production with similar lines and quality. 4 .

The focused treated, or the strategy of a market niche based on low expenses, is focused on a narrow segment of buyers where the firm advances the competitors at the expense of lower costs of production 5 . The focused strategy, or the strategy of a market niche based on differentiation of production, sets the purpose providing representatives of the chosen segment with goods or the services most fully answering to their tastes and requirements. The analysis of a competitive situation and definition of position of the organization in it assume determination of complexity and dynamism of the competitive environment.

Universal methods of such analysis are the model of five forces of M. Porter and the analysis of expenses of competitors. The model of five forces assumes carrying out the structural analysis on the basis of determination of intensity of the competition and research of threat of penetration on the market of potential competitors, the authorities of buyers, the authorities of suppliers, threats from goods or service substitutes. The analysis of expenses of competitors is consolidated to clarification of the strategic factors operating expenses, actually the analysis of expenses and modeling of expenses of mediators.

For obtaining competitive advantage the firm can use three the general competitive to strategy: 1. Leadership in expenses (a task -? to achieve leadership in expenses in the concrete sphere at the expense of a set of measures for control of them), 2. Individualizing (achievement of difference of a product or organization service from products or services of competitors in this sphere is supposed), 3. Focusing (a task -? concentration on concrete group, a segment of the market or the geographical region). Types of strategy of behavior of firms according to A. A. Thompson and A. Adz. Strickland.

They allocate the following strategy: offensive, defensive and strategy of vertical integration. 1 . Offensive strategy for preservation of competitive advantage. Competitive advantage is usually reached due to use of creative offensive strategy it isn’t so simple to them to resist to competitors. Six main types of offensive strategy are allocated: the actions directed on resisting to strengths of the competitor or to surpass them; the actions directed on, use of weaknesses of the competitor; at the same time approach on several fronts; capture of unoccupied spaces; aerial war; pre-emotive strikes. . Defensive strategy for protection of competitive advantage aim to hold the market position, to reduce risk to be attacked, to transfer attack of the competitor with smaller losses, to put pressure on throwing down a challenge to reorient them on fight against other competitors. 3 . Strategy of vertical integration. The essence of this strategy is that firms can expand the activities for the direction to suppliers (back) or in the direction to the consumer (forward).

The firm building the new enterprise for production of entrance monuments which were bought earlier from suppliers, undoubtedly, remains in the same branch, as earlier. Similarly, if the producer chooses integration “forward”, opening a network of the retail shops to sell production to directly end user, he remains in business on production of this production, even on condition of expansion of its field of activity in a branch chain of values. Strategy of vertical integration can pursue the aim of full integration in grew or partial integration (creating positions at the most important stages of a branch chain of values).

The company can carry out retrial integration, beginning own actions in other links of a branch chain or getting the firms which are already working in this sphere that they were closer to the company. 1. 2 Specifics of marketing in tourism. Tourism according to the main characteristics has no fundamental differences from other forms of economic activity. Therefore all essential provisions of modern marketing can be fully applied and in tourism. At the same time in tourism there are the specifics distinguishing it not only from trade in goods, but also from other forms of trade in services.

Here trade, both services, and goods (by estimates of experts, he share of services in tourism makes 75%, goods – 25%), and also special nature of consumption of tourist services and goods in a place of their production, moreover, in a certain situation takes place. In the traditional production having concrete result of work (goods in a material and material form), the concept of marketing has more concrete contents. In tourism the result of activity is reduced to a tourist product. In fact, the tourist product is the any service which is satisfying these or those needs of tourists and subject to payment of the hardware of their party.

Tourist services treat tool, transport, excursion, translation, household, municipal, intermediary, etc. The main tourist product is complex service, I. E. The standard set of services sold to tourists in one “package”, abroad they are called often package-tour. Tourist marketing – concept difficult and capacious in view of what it yet didn’t receive the accurate and final wording. There is a set of definitions, including: – methods and the receptions directed on identification and satisfaction of needs of people, caused with motives of rest – informative aspect, rest, entertainment, treatment, etc. And the organization of tourist bureaus or the associations, capable it is rational to satisfy these requirements; – the state and private activity of the tourist enterprises which is carried out on the international, national and regional plans for the purpose of satisfaction of requirements of certain groups of tourists; – the system of a trade production activity aiming at satisfaction of individual needs of each consumer on the basis of identification and studying of a consumer demand for receiving the maximum profit; – the market focused management, directed is achievement of the objectives enterprises more whole than the enterprise by more effective, than at competitors, satisfaction of needs of tourists; marketing can be used as at the level of separate travel company, and separately tourist concerns, holdings, including at the international level.

The world tourist organization allocates three main functions of marketing in tourism: 1) establishment of contacts with clients sets as the purpose to convince them that the offered vacation spot and services of service existing there, sights and expected benefits completely correspond to that clients wish to receive; 2) velveteen assumes design of innovations which will be able to provide new opportunities for the sale, in turn similar innovations have to correspond to requirements and preferences of potential clients; 3) control provides the analysis of results of activity on advance of services in the market and check of, as far as these results reflect really full and successful use available in the sphere of tourism of opportunities.

The tourist product has to be good acquisition. In this regard marketing represents the consecutive actions of the tourist enterprises directed on achievement of such purpose. Therefore and reasonable the following definition of marketing is rather logical. Marketing in tourism is a system of continuous coordination of offered services with services which are in demand in the market and which the tourist enterprise is capable to offer with profit for itself and is more effective, than it is done by competitors. In relation to tourism allocate some components of a complex of marketing: – personnel, its qualification and training; – process of providing service; – environment.

Tourist business is unique in the sense that the personnel of the enterprises is a part f a tourist product. Hospitality, goodwill – the main condition for all comers, and not just specialists in direct service of consumers. Marketing has to be an integral part of philosophy of all organization, and functions of marketing to be carried out by all employees. Key factor of competitiveness of the tourist enterprise are a measure (action) for manipulation of creative activity of collective. Important factor of high- quality service of the client is the environment – appearance of the building, office registration, furniture, the equipment, office equipment, etc. He atmosphere of the offer of a product (the physical environment) is perceived by means of sense organs (sight, hearing, sense of smell, touch) and has impact on consumer behavior in four ways: 1) can serve as a data carrier for potential consumers; 2) can serve as means of drawing attention of clients; 3) can be the carrier of a certain effect (colors, sounds and properties of surfaces of subjects surrounding the client influence his consciousness and induce to purchase); 4) can create a certain mood. [19, page 58] Ensuring management efficiency with marketing requires development of its auxiliary yester: marketing information; marketing organizations; marketing control.

The system of marketing information provides, systemization, an assessment and use of the data characterizing a condition of environment and the internal environment of the tourist enterprise. Without objective, actual, rather full marketing information adoption of operational and strategic decisions is impossible. The system of the organization of marketing is directed on creation of the relevant organizational structure of the tourist enterprise providing realization of marketing actions. For mutinous tracking performance of marketing strategy and programs the system of marketing control is created. In practice the technology of implementation of the concept of marketing is very elastic.

It can change both the structure, and a place of separate stages depending on features of the enterprise, degree of familiarity of the market, goals, tasks and market conditions. However all these elements are closely interconnected. It is impossible any of them to exclude from system, without having broken its integrity. 2. Marketing strategy in the tourism and hospitality industry. 2. Strategic marketing at the tourist enterprises. 1 . Corporate marketing strategy in tourism. Hierarchy of marketing strategic decisions. The most important purposes of any company are: receiving profit, ensuring continuous growth of a turn and occupation of the best competitive position in the market. In marketing is the growth of sales, increase in a share of the market, increase of loyalty of consumers.

Exactly at the top level company management the foundation of the correct marketing policy as each concrete marketing decision has to be considered as specification of strategic decisions of the company directed on achievement of the all-corporate purposes are laid: definition of development of the main strategic zones of managing. Choice of the directions of further growth formation of competitive advantages. These and other marketing decisions made by the top management of the company, define development of concrete products and the markets, all system of marketing actions, their expense and efficiency at the subsequent stages. Strategic marketing decisions represent a way of action on achievement of the marketing purposes which, in turn, follow from the purposes all-corporate.

Distinguish the marketing sections made by the enterprise at three levels: the corporate; the functional; the tool. Corporate marketing decisions define interaction strategy with the market and coordination of capacity of the enterprise with its requirements. Marketing decisions at corporate level define ways as it is better to use enterprise resources for satisfaction of needs of the market. It is possible to allocate three groups of strategic marketing decisions at corporate level. Portfolio strategy -? allow to resolve rather effectively issues of management of various fields of activity of the enterprise from he point of view of their place and a role in satisfaction of needs of the market and implementation of capital investments in each of spheres.

Growth strategy -? give the chance to answer questions: in what direction to develop to the enterprise better to conform to market requirements? Whether enough own resources for this purpose or is required to go for external acquisitions of the activity? Competitive strategy -? define how it is possible to provide to the enterprise competitive advantages in the market from the point of view of bigger involvement of potential consumers and what lick to choose in relation to competitors. 2 . Marketing strategy on tourist industry development. Marketing practice considers “portfolio” in the form of set, as a rule, not economic divisions dependent from each other, strategic units of one company. The portfolio analysis” allows to present in a matrix look results of research of activities of the enterprise for the purpose of determination of their subsequent growth and increase in profitability of strategic units which were its part. Thus increase in production is defined by development of demand and sales that leads to decrease in expenses of sources on a unit of production. “Portfolio strategy” -? ways of distribution of limited resources between economic divisions of the enterprise with use of criteria of appeal of market segments and potential opportunities of each economic unit. Enterprise resource management on the basis of a choice of the economic directions of market activity is carried out with use of a matrix of BEG and a matrix Mac-Kind. 3 .

The marketing strategy focused on growth of the tourist company. Enterprise growth -? manifestation of types of its business activity which can be based on three opportunities of growth: organic growth, intensive development at the expense of own resources acquisition of other enterprises or the integrated development; diversification -? leaving in other fields of activity. Strategy of growth represent business management models by a choice of types of its business activity taking into account internal and external opportunities. Control of growth is exercised with the help: Nations matrixes matrixes of external acquisitions; new matrix of BEG. Nations matrix.

This matrix represents the tool for classification of production and the markets pending on degree of uncertainty of prospects of sale of production or opportunities of penetration of this production on this market. It is known that garbanzo it is more difficult to sell absolutely new production, than production known, also to sell the existing range of goods to categories of the consumers close to what already got them, it is easier, than to master the new markets. Each strategic quadrant defines the directions of marketing efforts of the enterprise: 1 . Penetration strategy on the market: stimulation of purchases by traditional buyers (product replacement, use frequency); increase in a share of the market; involvement of buyers from competitors; involvement of new consumers; search of new opportunities of using. 2 .

Strategy of development of the market: exit to new consumer segments; entry into the new territorial markets; exit to new marketing networks. 3 . Strategy of development of a product: innovations; new brand; modification by the range 4 . The marketing strategy focused on ensuring competitive advantages of travel agency. Competitiveness of goods and firm. The competition -? rivalry of the enterprises in the market, directed on a gain attention of potential consumers. The competitive analysis represents the analysis of a competitive situation and an assessment of degree of competitive advantages, both the enterprise, and his rivals in the market.

Competitive advantage – those characteristics of market activity of the enterprise which create a certain superiority over competitors. Competitive strategy at corporate level pursue the aim to provide competitive advantage of the enterprise in the market concerning rival firms. For management of competitive position of the enterprise are used: general competitive matrix; del of competitive forces; matrix of competitive advantages; model of reaction of competitors. General competitive matrix. According to Porter’s general competitive matrix competitive advantage of the enterprise in the market can be provided with three main ways. Grocery leadership is based on policy of differentiation of goods (value for buyers is created).

The main attention is paid to improvement of goods, giving of bigger consumer usefulness to them, development of branded production, design, service and guarantee maintenance, formation of attractive image. The combination of high usefulness and he high price forms “the market force” goods. It protects the enterprise from competitors, provides stability of position in the market. Price leadership is provided on the basis of possibility of the enterprise to reduce costs of production (value for the producer is created). The special attention is paid to stability of the investments, the standardized goods, strict management of expenses, control of expenses. Decrease in expenses is based on use of “an experience curve”.