1. MARKETING 1 Welcome to Unit 2

2. Review of unit reading material from textbook: Travel Career Development 8 th ed. Authors: Gagnon,P. & Houser, S.

3. How do you define marketing? 3 Marketing: The process of planning and executing the conception, pricing, promotion and distribution if ideas, goods, and services to create exchanges that satisfy the individual and organizational goals.

4. 4 When looking at marketing you must look at the marketing mix. What specific points must we look at for this *marketing mix* ?

5. The marketing mix comprises the 4 P’s of marketing: 5 Product Promotion Place Price (Gagnon and Houser, 2005, p. 235)

6. Resources 6 Companies need to know their customer’s wants, needs, and demands and work on ways to satisfy these. Gathering of information is done through market research.

7. The 4 C’s 7 Marketing experts look at the 4 C’s basically from the customer’s point of view. Product Customer value or solution Promotion Communication Place Convenience Price Cost to the customer ( Gagnon and Houser, 2005, p. 235)

8. Types of Research 8 Primary data: research that is direct from the customer. QuestionnairesSurveys Personal interviews Personal one-on-one correspondence

9. 9 Primary research can be a traveler filling out a comment card or a preference card to determine how the customer enjoyed the product; whether it be a trip, hotel room, excursion, or meal.

10. 10 Secondary Research: *Reliable* sources or publications from other’s previous work. Reference books Published survey analysis

11. 11 When you look up information in a reference book or on the Internet, that is known as a secondary source. It is another’s data used to document your findings.

12. 12 Market research can tell us a great deal about our type of customers or our market segment.

13. Market segments 13 Demographic Psychographic Geographic Usage Price (Gagnon and Houser, 2005, p. 233)

14. Demographic 14 Age Race Gender Culture Income Educational level (Gagnon and Houser, 2005, p. 233)

15. Psychographic 15 Beliefs (religious) Interests (art, history) Activities (surfing, gambling) Attitudes (protests, memorials) (Gagnon and Houser, 2005, p. 233 )

16. Geographic 16 Cities States Countries Neighborhoods Including language, climate, and lifestyles. (Gagnon and Houser, 2005, p. 233)

17. Usage 17 Similar to psychographic Business Personal leisure Professional meetings Visiting friends or relative. (Gagnon and Houser, 2005, p. 233)

18. Price 18 What is the customer willing to pay? Top of the line or budget? (Gagnon and Houser, 2005, p. 233)

19. Laws 19 How can research of laws affect marketing a product? Laws vary from state to state and country to country Example: Gambling is legal in some states or cities but not all.

20. Politics 20 Political unrest and wars certainly can curb travel or business within a country.

21. Economics 21 People travel or spend money when they have discretionary income. A country’s monetary worth can influence where a person might travel.

22. Technology 22 Technology has opened new doors for advertising, communicating, and means of transportation resulting in new ways and opportunities to travel.

23. 23 Data collected on customers or prospective customers can be used to promote service to a selected target market.

24. CRM 24 CRM or Customer Relationship Marketing is a specific venue collecting data on it’s customers so that they can provide the best service for the customers return. Ritz Carlton collects data on a customer’s preferences so that when that customer is in another one of their hotels that customer will get exactly what they want. It is in the database! (Gagnon and Houser, 2005, p. 234)

25. Let’s take a look at the 4P’s of marketing 25 Product Promotion Place Price

26. Product 26 Goods, service, or idea that is marketed to fill customer needs and wants. Air travel Destinations Hotels Amusements Restaurants Meeting and events Levels of service and price range varies.

27. 27 Now that we have a product, we have to find of way of getting this product information to the consumer. Promotion

28. 28 Personal Selling Sales Promotion Public Relations/Sponsorship Direct Mail Trade Fairs/Exhibitions Advertising (Gagnon and Houser, 2005, p. 239-245)

29. Personal Selling 29 Salespeople who sell face to face to an individual. Each of us can also do personal selling as we represent our place of business and talk about the company. Manning a booth and talking to visitors at a show or expo is also personal selling.

30. Sales Promotion 30 Buy One Get One Free Coupons Money-off promotions Competitions Free accessories Introductory offers What other ways are sales promotion used in the travel and hospitality business?

31. Public Relations 31 The PR people are right on their game to control any negative publicity or to promote the company. Example: What can happen when there is a hotel fire or an airplane crash? How about an outbreak of food poisoning?

32. 32 Also sponsoring or hosting events is a part of public relations… it is establishing recognition and respect with the public or community.

33. Direct Mail 33 Direct mail is often used to target consumers from a database. Flyers Brochures Newsletters Questionnaires

34. Trade Fairs and Exhibitions 34 Purpose is to increase awareness and to encourage trial. State tourism departments will often set up at a trade show to promote their state.

35. Advertising 35 Advertising is a 'paid for' communication Newspapers (local, national, free, trade) Magazines and journals Television (local, national) Cinema Outdoor advertising (such as posters, bus sides) Yellow pages

36. How Effective is Advertising? 36 Newspapers get thrown way or used for bird cages so are most often used for short term ads. TV is very expensive and radio can be as well depending on the time advertised. Drive time (going and coming from work) is the most expensive because there are more listeners.

37. Internet 37 The Internet can offer a great amount of information to the customer but it has to be current and monitored and updated regularly. It has to look good and be easily navigated. Links to other sources is also a feature that the hospitality industry and other industries use.

38. Which is best? 38 Effective promotion of a business uses multiple media for advertising, as well as other forms of promotion. (Gagnon and Houser, 2005, p.244)

39. Place 39 The mechanism through which goods and/or services are moved through a channel or distributed. A travel agency Directly from the specific company, (hotel, airline, cruise line) Internet Dual distribution: Using several ways How will the customer hear about the product or service?

40. Price 40 There are several levels of price for this industry. What is the customer willing to spend?

41. 41 Travel agencies are differentiating themselves from competitors and using pricing strategies to so that the price and service meets the needs of the customer or target market.

42. Next week 42 Making a Sale

43. References 43 Gagnon, P. & Houser, S. (2005) Travel career development (8 th ed.). Canada: The Travel Institute