1. Marketing Management in A Tourism Destination Pertemuan 17-18
Matakuliah : G1174/Tourism Management and Planning
Tahun : 2007
Marketing Management in A Tourism Destination Pertemuan 17-18

2. Topics Marketing concept in tourism destination Marketing Mix
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3. Objectives To identify the marketing concept in tourism destination
To explain the marketing mix in tourism
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4. Destination Marketing
Destination rely on tourism as a major tool in the creation of development and suport for the indigenous population.
The understanding of destination image is important for any destination marketing and it is closely interrelated component of:
The perception which refers to individual’s own knowledge
Affective appeals which refers to individual’s feeling toward a destination
Key areas in destination marketing:
The image of destination
Stakeholders and their support for destination
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5. Definition of Tourism Marketing
Marketing is a management philosophy which, in light of demand, makes it possible through research, forecasting and selection to place products on the market most in line with the organization's purpose for the greatest benefit
Marketing as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchange products and value with others
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6. Characteristics of Tourism Marketing
Customer: first priority/ prime focus
Research: constantly asking
Review: review organization's strengths and weaknesses
Plan: long/short strategic marketing plan
Perception: image
Co-orporate/ co-ordinate: throughout organization to reach common goal
Change: dynamic
Broadly conceive/understand
Evaluation: how successful is the promotion
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7. The Importance of Marketing In Destination Management
Stakeholder satisfaction
Customer satisfaction
Higher quality products & services
Higher quality environment
Employee satisfaction
Continuous
improvement
Breakthrough
innovation
Growth
Profit
Marketing
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8. Marketing vs. Selling Marketing Selling Customer Satisfaction
Focus on customer needs
Marketing plan is crucial
Long terms
Utilized integrated market
To achieve profit through customer satisfaction
Selling
Product Sales volume
Focus on product, factory
Selling approach is important
Short terms
Use selling and promotion
To achieve profit
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9. Marketing Principles for Tourism Destination
Tangibilizing the service product:
Promotional materials
Employee appearance: trade dress, uniform & costume
Physical surrounding
‘Green Marketing’
Managing employee through internal marketing
Managing perceived risk: minimizing service gaps
Managing consistency
A point to encounter
Moment of truth
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10. Marketing Mix in Tourism
Marketing mix is the set of controllable tactical marketing tools that the company blends to produce the response it wants in the target markets
Marketing tools:
Product: combination of service, brand, quality, benefit, value
Pricing: stimulate sales, achieve financial goals
Promotion: advertising, sales promotion, merchandising, PR
Place: manner to sell the product, distribution
People: skill & knowledge
Physical evidence: environment, image, facilities, added value
Process: efficiency, performance, speed
Consumer: expectation
Convenience: related to distribution
Cost: related to price
Communication: related to promotion
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11. The level of products What is a tourist product?
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want and need
Include: physical objects, services, places, organization and ideas
Level of products:
core products
facilitating products
supporting products
augmented products
Facilitating
Core
Accessibility
Participation
Interaction
Physical evidence
Augmented
Supporting
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12. Physical evidence through branding
A successful brand is an identifiable products or services or persons or places augmented in such a way that buyer or user perceives relevant, unique added values to match their needs most closely
What is a brand? Why a company or a product use brand?
Brand is a name, term, sign, symbol which makes people remember the products or services. It
It used to identify the services or goods and differentiate them from competitors
Condition that support branding:
1. Easy to identify
2. Perceive as the best value
3. Maintain quality
4. Expand from small to larger market
5. Economic of scale
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13. Price and cost The amount of money charged for a good or service
Pricing Objectives:
Financial: profit, cash flow
Competitive: leader, follower, innovator, survivor
Volume: sales, market share
Image: positioning
Factors to considering when setting the price
Internal Factors:
Marketing Objectives
Marketing Mix
Strategies
Cost
Organization of Pricing
External Factors:
Nature of the market
Competition
Other environment Factors
Price
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14. Distribution channels and convenience
A set of independent organization involved in the process of making a product or service available to customers
Why the tourism and hotel industry need marketing intermediaries?
Efficiency in making service available to target markets
Distribution channel functions:
1. Information
2. Promotion
3. Contact
4. Matching
5. Negotiation
6. Physical distribution
7. Financing
8. Risk taking
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15. Communication vs. Promotion
A company’s total marketing communications program, called its Promotion Mix, which consists of advertising, sales promotion, public relation, personal selling.
Element in the communication process
Media
Sender
Encoding
Message
Decoding
Receiver
Feedback
Noise
Response
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16. Promotion Mix Factors in setting promotion mix Promotion mix
Type of product or service and market
Strategy: push vs. pull
Buyer readiness stage
Product lifecycle stage
Promotion mix
Advertising: long term, impersonal, one way communication
Personal selling: relationship, personal interaction, needs tools – promotional kits
Sales promotion: assortment of tools, quick sales, two way communication
Public relation: create positive image through publication, events, news, speeches, etc.
Direct marketing: telemarketing, relationship marketing, direct mail
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17. Process in service delivery - the gap analysis model
Tourist
Word-of mouth Personal needs Past experience
Expected services
Gap 5
Perceived service
Marketer
Gap 4
Service delivery (incl. Pre & Post-contact)
External communication
Gap 1
Gap 3
Translation of perceptions
Gap 2
Management perceptions of tourist expectation
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18. People as internal marketing
Tourism is unique in that people - employees are part of the products, thus, they should be excited about the company they work for.
Internal marketing uses a marketing perspective to manage the company’s staffs.
It is aimed internally at the firm’s employees
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19. Marketing Concept in Indonesian Tourism
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20. Conclusion
Marketing in a destination management is a way to created and maintained profitable customers, stakeholders’ satisfaction and high quality employee performance.
Customer satisfaction leading to profit is the central goals of tourism planning and marketing.
The uniqueness of tourist product makes marketing in the tourism became a strategic matter which can be manage.
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