THE TOURISM MARKETING ENVIRONMENT 1 THE TOURISM MARKETING ENVIRONMENT Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph 1-1 Copyright © 2009 by Nelson Education Ltd.

1 Topics Influence of marketing on tourism Services marketing models The Tourism Marketing Environment Topics Influence of marketing on tourism Services marketing models Tourism in Canada Key players in Canada’s tourism industry Micro and macro-environments 1-2 Copyright © 2009 by Nelson Education Ltd.

1 The Tourism Marketing Environment Tourism the activities of persons travelling to and staying in places outside their usual environment for not more than one year for leisure, business, or other purposes not related to the exercise of an activity remunerated from within the place visited Copyright © 2009 by Nelson Education Ltd.

1 Visitor Tourism market The Tourism Marketing Environment Visitor any person travelling to a place other than that of his or her usual environment for fewer than 12 months and whose main purpose for the trip is other than exercise of an activity remunerated from within the place visited Tourism market a market that reflects the demands of consumers for a wide range of travel and hospitality products and services Copyright © 2009 by Nelson Education Ltd.

1 Overnight Travel between Canada and Other Countries The Tourism Marketing Environment Overnight Travel between Canada and Other Countries Table 1.1 Copyright © 2009 by Nelson Education Ltd.

1 International Tourist Arrivals and Receipts The Tourism Marketing Environment International Tourist Arrivals and Receipts Copyright © 2009 by Nelson Education Ltd.

1 Annual Growth in International Tourist Arrivals The Tourism Marketing Environment Annual Growth in International Tourist Arrivals Copyright © 2009 by Nelson Education Ltd.

1 Tourism Arrivals to Canada The Tourism Marketing Environment Copyright © 2009 by Nelson Education Ltd.

Influence of Marketing on Tourism 1 The Tourism Marketing Environment Influence of Marketing on Tourism International Marketing business activities designed to plan, price, promote, and direct the flow of a organization’s goods and services to consumers in more than one country for profit Figure 1.4 illustrates the environment of an international marketer Copyright © 2009 by Nelson Education Ltd.

1 The International Marketing Task The Tourism Marketing Environment Copyright © 2009 by Nelson Education Ltd.

Self-Reference Criteria (SRC) 1 The Tourism Marketing Environment Self-Reference Criteria (SRC) unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions Ethnocentrism closely related to SRC notion that one’s own culture knows best how to do things Both limit the international marketer’s ability to understand and adapt to differences prevalent in foreign markets Copyright © 2009 by Nelson Education Ltd.

Four Unique Characteristics of Services 1 The Tourism Marketing Environment Four Unique Characteristics of Services Intangibility Heterogeneity Perishability Inseparability Copyright © 2009 by Nelson Education Ltd.

1 The Tourism Marketing Environment Table 1.4 Copyright © 2009 by Nelson Education Ltd.

Four Unique Characteristics of Services 1 The Tourism Marketing Environment Four Unique Characteristics of Services Table 1.4 Copyright © 2009 by Nelson Education Ltd.

Service Marketing Models The Tourism Marketing Environment Service Marketing Models Services Marketing Triangle 3 key players Expanded Marketing Mix for Services Copyright © 2009 by Nelson Education Ltd.

The Services Marketing Triangle 1 The Tourism Marketing Environment The Services Marketing Triangle Copyright © 2009 by Nelson Education Ltd.

Expanded Mix for Services: The Seven Ps 1 The Tourism Marketing Environment Expanded Mix for Services: The Seven Ps Product Price Place Promotion People Process Physical Evidence Copyright © 2009 by Nelson Education Ltd.

1 Key Players in the Tourism Industry The Tourism Marketing Environment Key Players in the Tourism Industry Copyright © 2009 by Nelson Education Ltd.

Major Components in a Company’s Microenvironment 1 The Tourism Marketing Environment Major Components in a Company’s Microenvironment Copyright © 2009 by Nelson Education Ltd.

Major Components in a Company’s Macroenvironment 1 The Tourism Marketing Environment Major Components in a Company’s Macroenvironment Copyright © 2009 by Nelson Education Ltd.

Demographic and Economic Forces 1 The Tourism Marketing Environment Demographic and Economic Forces Demographics statistics that describe the observable characteristics of individuals most notable demographic trend in Canada is the aging population Economic forces affect consumer purchasing power and spending patterns Copyright © 2009 by Nelson Education Ltd.

Environmental, Natural, and Technological Forces 1 The Tourism Marketing Environment Environmental, Natural, and Technological Forces Environmental and Natural Forces see Banff Snapshot, pp. 31-2 Technological forces most dramatic force that has forces tourist organization to adapt Copyright © 2009 by Nelson Education Ltd.

Political, Cultural and Social Forces 1 The Tourism Marketing Environment Political, Cultural and Social Forces Political forces see Myanmar Case Study at end of chapter Cultural and social forces institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviours Copyright © 2009 by Nelson Education Ltd.

1 Legal Forces Legal forces The Tourism Marketing Environment Legal Forces Legal forces increased legislation and regulation that affects business, enacted to protect companies and consumers from unfair business practices smoking restrictions in hotels and restaurants Copyright © 2009 by Nelson Education Ltd.

1 Cultural Trends The Tourism Marketing Environment increased responsibility for those who drink & those who sell and serve alcoholic beverages desire to develop individuality in order to be seen and treated as different from others (egonomics) tendency to act and feel younger than one’s age (down-aging) urge to change one’s life to a slower but more rewarding pace (cashing out) refusal to tolerate shoddy products and poor service (the vigilant consumer) acceptance of the gay and lesbian community concerns for the environment increasing desire for smoke-free restaurants and hotels desire to regularly eat out Copyright © 2009 by Nelson Education Ltd.