Lesson 10 Edited

Chapter 10
TOURISM MARKETING
LESSON OBJECTIVES:
1. Define marketing
2. Clarify the uniqueness of tourism marketing
3. Explain the importance of marketing orientation, market
segmentation, and product life cycle to tourism marketing
4. Discuss the elements of the strategic marketing process
DISCUSSION QUESTIONS:
1. Define tourism marketing.
2. Differentiate tourism marketing from the marketing of manufactured
goods.
3. Explain the importance of market orientation, market segmentation, and
product life cycle.
4. Discuss the five stages of the product life cycle.
5. Describe the four categories of market segmentation.
6. Explain the different steps in the market planning process.
7. Discuss the elements of marketing mix.
DEFINITION OF MARKETING
Marketing consists of all those activities necessary to bring a
product or service from the manufacturer to the end user.
1. The product or service itself

2. The methods of distribution
3. The methods of pricing
4. The methods of promotion
5. The form of selling
6. The form of advertising
UNIQUENESS OF TOURISM MARKETING
• Tourism is a service; an intangible experience is being sold, not a physical
good that can be inspected before it is bought.
• Because it is a service, production and consumption take place at the
same time. In manufacturing, goods are produced, stored, sold, shipped,
and delivered.
• The inventory for tourism is a seat on a plane, a hotel room, a nice beach,
or a beautiful, or an excellent place for scuba diving. Unlike manufactured
goods, if the inventory is not sold, it is not sold forever.
• Manufactured goods can be stored, and while sometimes perishable, they
generally are not lost if not sold on a given day.
• Tourism supply cannot be stored. Unlike a can of food which, if not sold
one day, can be sold the next day. Airline seats, hotel rooms, or restaurant
seats not sold today lose that particular sale forever.
MARKETING ORIENTATION
• Destination areas have marketing efforts that are
guided by a product orientation which emphasizes
the products or services that are available.
• Consumer orientation places the needs and wants of the
tourist foremost in the mind of the marketer who seeks to
provide a product or service that will satisfy those needs and
wants.
• Societal-marketing approach or societal orientation
focuses on the satisfaction of tourist needs and wants while
respecting the long-term interests of the community.
MARKETING SEGMENTATION
• Market segmentation is a universally accepted way of
analyzing demand. It is the grouping together of people with
similar needs and wants for the purpose of serving the market
better.
Criteria by which a market segment can be constructed:
1. Socioeconomic
2. Product-related
3. Psychographic
4. Geographic
• SOCIOECONOMIC CRITERIA are the most commonly used way
of collecting data. The comparability of such information
through census, as well as media data, and the fact that such
data is easy to understand and apply.
• PRODUCT-RELATED CRITERIA is that the information gained is
directly related to the particular product in question.
• PSYCHOGRAPHIC SEGMENTATION CRITERIA is useful in
describing segments. It can best be used in highly-specialized
and extensively developed markets to supplement the
information gained from simpler analysis.
• GEOGRAPHIC CONSIDERATIONS are useful in geographically-
based studies to identify primary, secondary, and in some
cases, tertiary markets. State and national tourist offices use
geographic segmentation to determine the extent of their
promotional efforts.
PRODUCT LIFE CYCLE
• The concept of the product life cycle is useful to the markets
as an additional guide on what strategies should be used in
choosing, attracting, and serving target markets.
• It suggests that a product, service, or destination moves
through distinct stages.
• Specific marketing strategies on price, product, promotion,
and distribution are developed within the context of a market
planning approach.
• Because of the rapid change of consumer lifestyle and
technological changes, the life cycle for products and services
become shorter, but the product life cycle remains as a useful
concept for strategic planning.
Introduction
The introductory phase of the product life cycle requires high promotional
expenses and visibility. The most opportune time to advertise a product or
service is when it is new. Operation in this period is characterized by high
cost, low sales volume, and an advertising program which aims to encourage
primary demand. At this stage of the life cycle, there will be a high incidence
of failures.
Growth
In the growth period, the product or service is accepted by consumers.
Market acceptance means that both sales and profits increase rapidly,
making the market attractive to competitors. Promotion emphasizes
selective buying motives by trade names rather than the number of outlets
handling the product or service increase. More competitors enter the
market place.
Maturity
At this stage, the mature product is well-established in the market
place. Sales increase but at a slower rate. Many outlets are selling the
product or service. They are very competitive especially with regard to
price. Companies try to find out ways to hold on to their share of the
market.
Saturation
At this stage, sales volume reaches its peak. The product or service has
penetrated the market place to its highest degree. Mass production
lowered the prices to make it available to everyone.
Decline
In the decline stage, advertising expenses are lower. There are few
competitors.
STRATEGIC MARKETING PROCESS
1. Collection of data – Data can be collected in two ways: secondary
sources and from primary sources.
2. Analysis of data – Data is usually organized and interpreted
3. Identification of alternative strategies for reaching the desired goal
4. Cost-benefit analysis – Data analysis of several methods for reaching the
goals indicate which of the alternatives is best from a financial
standpoint.
5. Selecting alternatives and plan formation – A plan of action, including
the responsibilities of the members of the organization, can then be
established.
6. Control procedures – which analyze the progress made in achieving the
goals of the project.
7. Plan information – Putting into effect the plan of action and supervising
it.
MARKETING MIX
Product
• A vacation consists of several parts or products such as transportation,
accommodation, food and beverage, sightseeing, entertainment, and
souvenirs. Consumer marketing orientation suggests that products should
satisfy the needs and wants of the customer.
Price
• Price is the result of supply and demand. When supply exceeds demand,
price tends to decrease. When demand exceeds supply, price tends to
increase. While lower prices are changed during off-seasons, prices are
lower for destinations that are open the whole year while destinations
that are not open the whole year have higher price rates.
• If a destination is perceived by the members of the market segment as
serving their needs and wants, they will be willing to pay a higher price.
LESSON SUMMARY:
• Tourism marketing is a process when organizations maximize the
satisfaction of tourist demand through research, forecasting, and the
selection of tourism products and services to meet that demand.
• Tourism marketing is different from marketing manufactured goods
because of its unique qualities. The three kinds of marketing orientation
are product orientation, consumer orientation, and societal orientation.
• Market segmentation is a process by which people with similar needs and
wants are grouped together in order to serve the market better. The four
categories include the socioeconomic or demographic, psychographic,
product-related, and geographic segmentation.
• The concept of the product life cycle is used by the marketer as an
additional guide to suitable strategies to adopt in choosing, attracting, and
serving target markets.
• Marketing mix is the combination of elements such as product, pricing,
promotion, and distribution that complement each other to achieve the
objectives of the market plan.
APPLICATION AND ASSESSMENT
1. Research on the marketing implications of each stage in
the product life cycle.
2. Create a vacation package that might be marketed in
your area. How would you market it? To whom?
3. If you are a restaurant manager in a popular resort area,
how do you decide on the price levels of your meals?
CHAPTER QUIZ. Identify the following.
_______________ 1. The combination of elements that interact and complement
each other
_______________ 2. Activities that bring a product or service from the manufacturer
to the end user
_______________ 3. The process of grouping together people with similar needs and
wants in order to serve the market better
_______________ 4. A type of orientation that satisfies the needs of the community
______________ 5. The stage of the product life cycle in which the volume of sales
reaches its peak
_______________ 6. A type of orientation that satisfies the needs of the buyer
_______________ 7. A segmentation technique used in highly-specialized markets
_______________ 8. A marketing process in which objectives are stated and the
methods of attaining them are identified
_______________ 9. The grouping together of people with similar needs and wants
_______________ 10. Organizations that bridge the gap between the producer and
the tourist
CHAPTER QUIZ. Enumerate the following.
11–16. Steps in determining a market strategy
17–20. Categories of market segmentation

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Chapter 10

1. The product or service itself

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