Introduction to tourism marketing Chapter 1 Introduction to tourism marketing

Tourism in the experience economy From service economy to experience economy Tourism experience – core value of service delivery in tourism Tourism system: demand, travel, destination, marketing Destination mix: FAITH

Concepts related to customer experience Customer expectation Customer perception Customer satisfaction Customer value

The evolution of marketing concepts Production orientation Sales orientation Marketing orientation Personal marketing orientation

Production orientation Dominated business operation approaches until mid 1950s Concerned with product supply issues Supply shortage comparing to mass demand Common belief: supply creates its own demand

Sales orientation Mid 1950s to early 1970s More business efforts on sales promotion strategies and advertisements Still lack of attention to customers’ needs

Marketing orientation Starting from early 1970s Competitive business environment Unprecedented attention to consumer needs and wants Customer centred and market-driven business practices

Personal marketing orientation Propelled by technology Tailor marketing programs to the individual Mass customisation Customer relationship management (CRM) Database marketing

What is marketing? Definitions of marketing Marketing mix

Definitions of marketing (1) Philip Kotler (2003): a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others

Definitions of marketing (2) American Marketing Association (AMA) (1995): the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational goals.

Definitions of marketing (3) AMA (2004): an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing mix Four Ps: Product, price, place, and promotion Four Cs: customer solution, customer cost, convenience, and communication Seven Ps: Product, price, place, promotion, people, process, and physical evidence

Characteristics of tourism services Characteristics of services Special features of travel and tourism

Characteristics of services Intangibility Inseparability Variability Perishability

Special features of travel and tourism Seasonality Unclear ownership Interdependence Sensitivity to crises Fixed capacity Shorter exposure to services More emotional buying appeals

Special features of travel and tourism Greater emphasis on stature and imagery More variety and types of distribution channels Easier copying of services Difficulty of differentiating tourism, travel and hospitality services

The importance of tourism marketing World economic development Consumer movement patterns Limited destination information before trip Multiple service segments in tourism Marketing – everybody’s responsibility

Destination marketing organisations National tourism organisations (NTOs)/ national tourism administrations NTAs) International tourism organisations Inter- and intra-organisational collaboration

NTOs/NTAs Responsible for many aspects of a nation’s tourism development Destination marketing as a major or sole function Branch offices in major source markets

International tourism organisations World Tourism Organisation (UNWTO) World Travel and Tourism Council (WTTC) Pacific Asia Travel Association (PATA)

Inter- and intra-organisational collaboration International marketing collaboration: E.g., UNWTO Silk Road Project Inter-organisational collaborations within a destination Departmental collaboration and cooperation within a tourism company

Summary Nature of tourism in the experience economy Customer experience related concepts Evolution of marketing concepts Definitions of marketing Characteristics of tourism services Importance of tourism marketing Destination marketing organisations