Marketing (Principles of Tourism II)

1. MARKETING
DTC Principles Tourism II
by: ellen castillo

2. Unit Objectives:
• Explain the basic concepts of marketing
• Identify the special dimensions of marketing
different forms of tourism.
• Differentiate between marketing and
selling/promotion.
• Discuss the basic marketing techniques.

3. Unit Topics:
• What is Marketing?
• The Evolution of Marketing
• Different Definitions and Concepts of
Marketing
• The Concept of Value within Tourism
• The Difference between Marketing and
Selling
• Different Business Philosophies
• Marketing Orientation
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• Tourism as a Service Product
• The Characteristics of the Service
Product
• Other Aspects of Tourism as a Service
Product
• Tourism Products and Risks
• The Adoption of a Marketing
Operation
• Criticism of the Marketing Concept
• A Societal Marketing Approach

4. 11/14/12
Industry
(a collection of
sellers)
Market
(a collection of
buyers)
Communication
Goods/Services
Money
Information
Simple
Marketing
System

5. Marketing
• Process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods,
services to create exchanges that satisfy individual
and organizational goals.
• “Involves the interactions and interrelationships
among consumers and producers of goods and
services, through which ideas, products, services and
values are created and exchanged for the mutual
benefit of both groups.”
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6. The history of marketing and modern business practice
have developed in three distinct stages.
1. The production era, based on the notion that if products were
priced cheaply, they would sell regardless of consumer
preferences. this was deemed an inward, product-oriented
focus with little concern for consumers.
2. The sales era, where selling was the prime focus regardless of
the market’s willingness to accept the product.
3. The marketing era, replacing the preceding approaches;
businesses now produced products they could sell which were
tailored to consumer needs to satisfy the purchaser, effectively
making the organization more outward looking.
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7. The important factors that have ushered in marketing during the fast
half-century are as follows:
• The increases in demand were at a lower rate than the rises in
productivity.
• The consumer becoming more affluent and therefore it was
possible to develop products that could be using a range of non-
price attributes.
• The distance between the tourism product provider and tourist has
been continually increasing.
• New tourism and hospitality product were being launched which
required more emphasis on marketing.
• As society developed, the mass market splintered into a number of
sub-markets, while at the same time the mass market became
increasingly difficult to reach.
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8. Different definitions and concepts of marketing
The concept of value within tourism
• Companies have to find ways to ensure they
optimize the delivery of value.
• The value of tourism incorporates a number of
different aspects which include the perception
of price, quality and image as well as the
economic and social aspects of the consumer.
•
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9. A system for delivering value
Approaches Uncovering value needs Developing value Delivering value
Gathering/analytical Data/feedback of company Operations/customer Logistics/product
representatives, surveys, etc. interfaces and touch points quality service
Organisational Interpretation of customer Training/motivation of staff Improved attitudes
Requirements and resultant and working with suppliers and behavior of
Expected organizational who also acid quality employee interfaces
competencies
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10. Product perceived value is based upon:
• Actual price asked and the relativity to prices for the same or
similar product offered elsewhere.
• Perceived quality, service and image associated with the brand
product.
• Convenience of purchasing method or channel, and its
congruence to the needs of the customer.
• Consumer difficulty in ability to assess the benefits/relative
price of the product.
• Experience associated with the purchase or consumption
process.
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11. The Differences between Marketing and Selling
“Selling and marketing are antithetical rather than
synonymous or even complementary. There will
always, one can assume, be a need for some
selling, but the aim of marketing is to make
selling superfluous.”
Ducker (1973:64)
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12. The sales and marketing concepts compared
The sales concepts focuses on products and uses
selling and promotion to achieve profits
through sales volume
The marketing concept focuses on customer
needs and utilizes integrated marketing to
achieve profits through customer satisfaction.
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13. The sales and marketing concepts compared
Focus Means End
Sales → Selling/products → Promotion →Profits through sales volume
concept
Marketing → Customer needs → Integrated →Profits through customer
Concept marketing to specific satisfaction
segments
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14. Four possible business philosophies:
1. Product-orientated company
2. System/technology-oriented company
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Product creation
SalesPromotion
Technology Product
Creation
Product
Formulation
Promotion Sales

15. Four possible business philosophies:
3. Market-orientated company
4. Integrated company
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Marketing
Research
Product
Creation
Product
Formulation
Promotion Sales
Marketing
Research
Promotion SalesProduct
Creation
Product formulation and company-wide marketing principles incorporated

16. Marketing Orientation
• It is a management orientation or philosophy.
• It encourages exchange to take place.
• It involves long- and short-term planning.
• It requires efficient, cost effective methods.
• It requires the development of an integrated
company environment.
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17. Transaction Marketing Relationship Marketing
Short-term orientation: sale as end result Long term orientation, the sale is only the beginning
‘Me’ orientated ‘We’ orientated
Focus on achieving a sale Focus on retention and repeat sales
Emphasis on persuasion to buy Stress on creating positive relationships
Need to win, manipulation Providing trust and service
Stress of conflict of achieving a transaction Partnership and cooperation to minimize defection and provide
longer-term relationships (with customers or strategic alliances, joint
ventures, vendor partnering, etc.
Anonymous customer won by conquest in a carefully planned event Individual profile of customer known so that a continuing process can
arrange
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The difference between transaction and relationship marketing

18. Tourism as a Service Product
Products
Service Good
Intangibility More Tangible
Perishability Often Storable
Inseparability Standardisable
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19. The Characteristics of the Service Product
Intangibility: it cannot be easily evaluated or
demonstrated in advance of its purchase.
Perishability: service products such as tourism, unlike
goods, cannot be stored for a sale on a future
occasion.
Inseparability: both service provider and costumer are
present when the service function occurs.
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20. Other Aspects of Tourism as a Service Product
1.Shorter aspects of tourism as a service delivery.
2.More personal.
3.Growing use of self-service.
4.Greater significance on managing evidence.
5.Complementarity is greater.
6.Easier copying of services.
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21. Tourism Product and Risk
• Economic Risk
• Physical Risk
• Performance Risk
• Psychological Risk
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22. The Adoption of a Marketing Operation
Tourism marketing involves a number of special characteristics:
• Marketing is a philosophy with the overriding value that the
decision-making process of any organization has to be led by
the consumer’s needs, the marketplace and the company’s
assets and resources.
• Successful marketing requires a special organization structure
that believes in integrating the principles of consumer
orientation throughout the organizations.
• Marketing requires innovative methods of thinking and
planning so that new ideas are generated to take advantage of
opportunities or to improve existing methods of marketing.
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23. Criticisms of the Marketing Concept
• Environmental marketing impact
• Overemphasis on profitable products
• Invasion of privacy
• Waste of resources on tourism market
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24. A Societal Marketing Approach
• It is important to recognize that consumers are now better
educated and are competent to select products that are not
creating undue problems to society.
• If organizations or their products create problems, there are
articulate pressure groups and government legislation available
for consumer and environmental protection.
Three basic issues to consider:
• Consumerism
• Corporate social responsibility
• Ethics
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25. Some Points Relevant to Societal Marketing Approach
• Good business managers should be socially responsible to all
stakeholders related to the company and tourism offer so as to
minimize social costs.
• Managers should be honest in claims and promotions, not be
deceptive or agree to misleading advertising.
• The products offered should not cause harm or unacceptable
tourism impact and managers should communicate any risks
which are known to be associated with any product.
• Marketers should undertake not to adopt sales techniques
under the guise of its being research.
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26. Thank you for listening!
GOD bless
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