Tourism and marketing

Review  What are the five sectors of tourism?  What does each sector include?

The Tourism Industry's Five Sectors:  Accommodation- Inns,Hotels/Motels,Resorts & Spas, Campgrounds, Time Share,Youth Hostels, Bed & Breakfast, Summer Camps  Food and beverage services- Restaurants,Coffee Shops,Fast Food Outlets, Pubs & Lounges, Club FacilitiesBanquet/Civic Centers, Organizations, College/Food Services

The Tourism Industry's Five Sectors:  Transportation- Air Carriers, Motor Coaches, Railways, Cruise Lines, Car Rentals, Recreation Vehicles, Taxis, Gas Stations  Recreation and entertainment- Ski Resorts, Sport Fishing, Golf & Tennis, Game Hunting, Cycling, Guide & Outfitting, Water Sports, Whale and Bird Watching Museums, Galleries, Parks/Gardens, Native Tourism, Industrial, Tourism, Interpretive Centres, Fairs & Attractions, Cultural Tourism, Theme Parks, Festivals, Trade Shows  Travel services- Travel Agencies, Tour Wholesalers, Tour Operators, Tour Guide  CAA/AAA, Research Centres, Information Centres, Retail Operations, Tourism Suppliers, Advertising Agencies, Reservation Services

Creating bulletin board  Divide into groups  You will prepare a bulletin board on one of the five tourism sectors in the Campbellton /Restigouche region.  Bulletin board should include:  Sector title  Names and pictures or logos of business from that region that fit into that category.  Organized in a manner that promotes this sector in the community and provides a quick reference for a tourist.

What do you know about your area?  Scavenger hunt

What is marketing?  At its basic level, marketing is about determining the value of your product or service and communicating that information to customers.

8 Core Marketing Concepts Needs, wants, and demands Products Value, satisfaction, and quality Exchange, transactions, and relationships Markets

9 The Four Ps Marketing Mix Product Price Promotion Place (Distribution)

 Product : What are you going to sell?  Price : How much can you charge for your product?  Place : Where will people buy your product?  Promotion : How will people find out about your product?

11 Product A product is anything that can be offered to satisfy a need or a want.

12 Markets A market is a set of actual and potential buyers who might transact with a seller. A market is a set of actual and potential buyers who might transact with a seller.

Who is your customer?  Age, usually given in a range (20-35 years)  Sex  Marital status  Location of household  Family size and description  Income, especially disposable income (money available to spend)  Education level, usually to last level completed  Occupation  Interests, purchasing profile  Cultural and ethnic background

14 Need, Wants, Demands  Need. A human need is a state of felt deprivation. Examples include the need for food, clothing, warmth and safety.  Wants. Wants are how people communicate their needs. A hungry person may want a hamburger, noodles, or cheese and bread.  Demands. When backed by buying power, wants become demands.

What would you suggest for these travelers? Restigouche region  Travel profiles:  1. Family vacation for three days. Members: Mother, father, son 11, daughter 5, large dog. Family income - $80,00  2. Group of friends, 20-25, who are interested in an outdoor vacation. They have no outdoor equipment. They are college students. Weekend  3. Single person from a larger city Income: $40,000 interested in a getaway vacation. 5 day vacation  4. Couple, 40-50, no children, large dog, interested in local products, eco-friendly, income- $100,00. 4 day vacation  5.Young couple – budget $300 for a week-end. They are interested in a vacation that includes heritage and cultural activities.

16 Value, Satisfaction, and Quality  Customer value is the difference between the benefits that the customer gains from owning and/or using a product and the costs of obtaining the product.  Customer satisfaction depends on a product’s perceived performance in delivering value relative to a buyer’s expectations.  Quality begins with customer needs and ends with customer satisfaction.

17 Why Managers Should Be Concerned About Customer Loyalty  Customer loyalty leads to increased profit  Customer loyalty leads to increased partnership  Lower marketing and sales costs Do you think this is really important in tourism?

Pricing factors  Operating a business involves expenses. Your costs may include:  Raw materials or supplies  Salaries  Equipment and property

Pricing factors  There are two types of costs:  Fixed costs: These overhead costs like rent, utilities, and insurance are generally the same every period, regardless of how much product is made or sold.  Variable costs: These costs change in proportion to your business activity. If you are producing more, you will need more raw materials.  Variable costs (sometimes called unit-level costs) easily break down to cost per unit.

5 sectors of tourism and pricing factors (expenses)  Refer to the 5 sectors of tourism and list expenses that business may have in each sector.

21 The Promotional Mix n Advertising n Sales promotion n Packaging n Personal selling n Public relations

Marketing of our province and community  Advertisement search:  Where do the advertisements appear? Which paper or magazine?  Which section are they located in?  Where are they located on the page?  What are advertisements are they located around?  What type of target group do you think they are aiming their advertisement at?