2. 19
Tourism Marketing

3. Learning Objectives
Appreciate the Internet’s impact on tourism marketing.
Become familiar with the marketing mix and be able to formulate the best mix for a particular travel product.
Appreciate the importance of the relationship between the marketing concept and product planning and development.
Understand the vital relationship between pricing and marketing.
Be able to do market segmentation to plan a marketing program for the business you are most interested in.
Demonstrate the linkage between tourism policy and tourism marketing.

4. Marketing Mix
The marketing mix is composed of every factor that influences the marketing effort
Image
Advertising
Selling
Public relations
Service quality
Research
Timing
Brands
Packaging
Pricing
Channels of distribution
Product

5. What is Marketing
The American Marketing Association defines Marketing as:
“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.”

6. Product Life Cycle Introduction Growth Maturity Saturation Decline
Sales Volume
Dollars
Profit Margins
Introduction
Growth
Maturity
Saturation
Decline

7. Factors that Influence Price Policies
Product quality
Product distinctiveness
Extent of the competition
Method of distribution
Character of the market
Cost of the product and service
Cost of distribution
Margin of profit desired
Seasonality
Special promotional prices
Psychological considerations

8. Price Skimming
Skimming is appropriate when the product or service has the following characteristics:
Price inelasticity
No close substitutes
High promotion elasticity
Distinct market segments based on price

9. Penetration Pricing
Penetration pricing is appropriate when the following factors are present:
High price elasticity
Economies of scales
An easy fit of the product into consumer purchasing patterns

10. Selection of Channels of Distribution
Channels of distribution are selected by
Analyzing the product
Determining the nature and extent of the market
Analyzing the channels by sales
Determining the cooperation you can expect from the channel
Determining the assistance you will have to give to the channel
Determining the number of outlets to be used

11. Promotion In order to sell the product it is necessary to:
Attract attention
Create interest
Create a desire
Get action

12. Typical Bases for Market Segmentation
Geographic
Demographic
Socio-economic
Psychographic
Behavior patterns
Consumption patterns
Consumer predispositions

13. Typical Bases for Market Segmentation
Typical bases for market segmentation. Source: W. Zikmund and M. D’Amico, Marketing, 3rd ed., copyright ©1984, New York: John Wiley & Sons, Inc.; adapted by permission of Prentice-Hall, Englewood Cliffs, N.J., from Philip Kotler, Principles of Marketing, copyright ©1980, p. 297.