Tourism: Principles, Practices, Philosophies Part One: Tourism Overview

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Part Five Essentials of Tourism Research and
Marketing
Learning Objectives

• 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.
• Know about distribution systems and how this
  marketing principle can best be applied to a
  variety of travel products.
• Be able to do market segmentation to plan a
  marketing program for the business you are most
  interested in.
• Understand the principles of branding and examine
  their applicability to destination branding.

Chapter 19 Tourism Marketing
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Part Five Essentials of Tourism Research and
Marketing
Marketing Mix
The marketing mix is composed of every factor
that influences the marketing effort.
1. Timing 2. Brands 3. Packaging 4.
Pricing 5. Channels of distribution
6. Product 7. Image 8. Advertising 9. Selling
10. Public relations
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Part Five Essentials of Tourism Research and
Marketing
Product Life Cycle
Sales Volume
Dollars
Profit Margins
Decline
Growth
Saturation
Introduction
Maturity
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Part Five Essentials of Tourism Research and
Marketing
Factors that InfluencePrice Policies

• 1. Product quality
• 2. Product distinctiveness
• 3. Extent of the competition
• 4. Method of distribution
• Character of the market
• Cost of the product and service

7. Cost of distribution 8. Margin of profit
desired 9. Seasonality 10. Special promotional
prices 11. Psychological considerations
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Part Five Essentials of Tourism Research and
Marketing
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

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Part Five Essentials of Tourism Research and
Marketing
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

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Part Five Essentials of Tourism Research and
Marketing
Selection of Channels of Distribution
Channels of distribution are selected
by 1. Analyzing the product 2. Determining the
nature and extent of the market 3. Analyzing the
channels by sales 4. Determining the cooperation
you can expect from the channel 5. Determining
the assistance you will have to give to the
channel 6. Determining the number outlets outlets
to be used
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Part Five Essentials of Tourism Research and
Marketing
Promotion
In order to sell the product it isnecessary
to 1. Attract attention 2. Create interest 3.
Create a desire 4. Get action
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Part Five Essentials of Tourism Research and
Marketing
Typical Bases for Market Segmentation

• Geographic
• Demographic
• Socio-economic
• Psychographic
• Behavior patterns
• Consumption patterns
• Consumer predispositions

Chapter 19 Tourism Marketing