Unit 5 Marketing in Travel and Tourism Assignment Solution

Introduction

Tourism means to provide service to those people who are moving out for the short period from where they actually live.  Marketing Travel Tourism Assignment Solution used by the Agent/.Agency is known as travel and tourism. Facilities of accommodation, travelling are all included packages provided by the agents. Marketing plays an essential role in enhancing the business of the company in this Industry. So marketing strategy means that research done by the marketing manager of the company to evaluate the customer market so that he get aware about all the needs and plan according to it to satisfy customer needs and make more profits. Through marketing, it is possible for the companies to do interaction with their consumers and understand their wants that helps them in coming with new products those can satisfy their wants. This study helps in understanding the basics and the principles of the travel and tourism industry.

Task 1

1.1 Discuss the core concepts of Marketing for the travel and tourism sector.

The core concept of the marketing is the to satisfy customer needs and planning should be done after keeping all the demands of the consumers so that customer satisfaction is the only way which increase the sales of the company. As I am an assistant marketing manager of Thomson so I asked to present a report on any tours package for Denmark, Amsterdam, Porto etc.  This is only possible after getting aware about the customer’s preferences. After this, company makes different policies and strategies as an effective plan of marketing that helps the employees to come up with the basic elements of marketing mix such as price, product, promotion and place. It is known as 4P’s. (Cohe ,2005).  The below are the details that helps in clearing the concept related with this study.

• Customer Needs: Thompson set the priorities first to make any package. Two types of customers- for business trip and for family trip. Marketing done to help in strategy and it helps in providing new offers to customers which satisfy customer needs.
• Products/ services: Product offered by travels and tours are latest follows all new trends of the market. As a marketing manager it’s my duty to keep such small things in mind while planning. Services offered should be reliable and best like facility of luxury rooms, travelling by bus/ cruise, reasonable prices attract customers.
• Exchange process: It is the process in between buyer (consumer) and seller (Thomson) where customer is paying money for providing the product or service by Thomson or satisfying his needs by them
• Place: strategy is according to satisfy the customer needs in all over the market whether national, or international. The size and the location of the market vary within different companies. To establish the foot in the market Thomson has to accept the new strategies at every interval of time and make a certain changes in their offers which satisfy the requirements of the customers.

1.2 Assess the impact of the marketing environment on individual travel and tourism businesses and tourist destinations.

Marketing environment is divided into two segments- internal environment and external environment. Internal environments means factors those occurred within the Thomson and external means factors those occurred outside the company and leaves a great impact on the company’s business.

  

(Source: montiera.com)

Both external and internal factors affect the working of the companies. Internal factors are under the control of the companies and external are beyond them or not easily handle by them. Opportunities and threats occurred outside the organisation known as external factors e.g. Fear of change in the demand, competition, etc. and any changes occurs within the company called Internal factors.. All such factors also affect the business of the Thomson Holidays. I analysed these effects and will conclude the strengths and the weakness of my companies.

Internal Environment (Micro)

In Thomson holidays this environment includes suppliers, competitors, intermediaries, consumers etc and few of these mentioned below.

• Intermediaries: These are the facilities provided by the Thomson to their consumers. Transport, Hotel facility- Various types of Rooms, clubbing, dinning and reasonable prices act as intermediaries in between seller and buyer that attract the consumers.
• Competitors: Though competitors are from the external environment but leave the great impact inside the organisation (Sewell, 2009). If a competitor offers such reasonable packages to the customers, Thomson may lose his well build client’s so marketing manager’s duty to get aware about the market and change their offers as per the new trend. Price of packages offers by them to the consumers effects directly the company.

External Environment (Macro)

All sudden changes in the working of the Thomson is due to certain factors like change in technology, Locations, fashion/ taste, Politics, society etc.

• Demographic: Demographic factors include changes in the locations and trends. Customers are generally affected by these reasons which affect the organization strategy. Thomson offers the different packages of Europe at different locations. First, research should be done that changes done in packages are acceptable or not in a particular location if they are as per the customer’s need then only offered to that place.
• Technology: Due to the advancements of the new technology, the business gets affected. All updated information on online is not easily access by the public. Most of the people are still does not know to operate the technology (Wheatley, 2010).
• Details of Tourism are always available on the company’s website so this reason affects the business. It helps in promoting the business and expands the chain of the consumers.

Any change in Macro environment impacts on the sales of the business such as recession in which consumers wants to spend less mainly on the necessities rather than luxurious products, political factors like taxes affects the choice of the customers regarding destinations. All these affect the business of the Thomson Holidays as they play an important role in the business of the company.

1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism sector.

By analysing the change of motivation in the Thomson, the desires of the customers are predicted those help in making the packages of the tours and the planning for their marketing. Factors can be emotional, social and personal. Another factor is the policy of the government like monetary and fiscal that leaves the great impact on the business of the tourism. Any variation in the currency effects on the profit of the industry. In similar way, any increase / decrease in such factors results in the demand of the tourism sector in a same way.
Below are the Factors are:
Models of consumer behaviour: It includes loyalty, sociology and psychology.

• Loyalty: Some consumers are stick on the one product they are loyal towards the company. Customers who are satisfied by the product offered by Thomson are stick on this company only at the time of taking any package.
• Sociology: Buying trend of the consumer changes frequently as many competitors are available with the new product and trying to convince that they offering best. In this factor consumer might be affected by another brands.
• Psychology: It’s a human psychology of wanting to buy something different every time as comparatively to the previous. So to satisfy the consumer needs and to stop them for shifting to other brand Thomson brings the new offers. Thomson holidays should make new and different strategies to adapt the new changes in satisfying the needs of the consumers. Also, follows the new policies in the future as per the strategies and analysis.

Determinants of consumer motivation:
The main determinants are:
Influence on consumer decision making: Flexibility, satisfy needs, good service/ products are main reasons that gives the customer satisfaction directly and motivates them to stick on their particular decision of buying the product from the same company next time.
Influence on consumer conflict resolution: After getting the needs of the consumer satisfied the main motivation reason is to influence or motivate consumer to get out of the conflict with himself of buying the product. Confusion arise in front of many suppliers supplies an identical products (Mok, and Iverson, 2000).

1.4 Analyse the principles of market segmentation and its uses in marketing planning.

Market segmentation means to reach to meet all the target consumers so that the organization satisfies the consumer desires. It is useful for the marketing planning where market is divided into various groups based on the factors known as target consumers too. Target consumers are defining the consumer in terms of demographic, geographic and behavioural characteristics (Maringe, 2005). The consumer market are divided into different segments by keeping the customers lifestyle, needs, social class, personality etc. In a huge competitive market where many competitors are available with the different types of products those offered the same product to the consumers. It plays an important role in the sector of tourism where tourists are divided into various segments of the market and having different or same needs of every person. Many travellers have different packages as a competitor of Thomson but to attract customers company should come up with new changes or innovative ideas. In the market segmentation of the Thompson, it recognizes the needs of consumers and divides them in different sections as per the needs. Market segmentation helps the company in providing the best packages of the tours as per the needs so that the consumers satisfy at the best. The common factors on which market of tourism divided are age, family, nationality, Gender etc or on the stage of the consumers like teenage, youth etc. The main purpose is to satisfy the needs of the consumers.

   

(Source: Dreamstime.com) 

Task 2

2.1. Analyse the importance of Strategic Marketing planning for a selected travel and tourism business or tourist destination.

A successful strategy is that which satisfies the consumer needs and earn profits in the business. Strategy is necessary and gives the benefits to the organisation (Perreault. Wand McCarthy, 2005). The Strategy Planning recognises and analyse the strengths and the weaknesses of the company business operations or external affairs. As a marketing manager of Thomson, my purpose is to make strategy is to bring different packages for tourists that satisfy the targets of the business after keeping certain facts in its mind. Marketing plan of Thomson Holidays based on the below analysis.

1. SWOT: It is a planned analysis that measures the strength, weakness, opportunities and threats of the organization. I would like to go in detail regarding these before making the strategy for the company. Thomson Holidays as into the business of tourism it can learn from its experiences about both their negative and positivity of the business and plan for the new trends adopted in the business in the future.
2. TALC (Tourist area life cycle): It describes about the destination that always creates the confusion for the customer. Tourism never disclose all the details about the destination. Which is the city, area, location and all? The destination is the process which is very important to state it to the consumers. It is like a small academic model which describes all the details of the destination, hotels, site seeing locations and a research by the marketing planner is to be done. The whole research work is mentioned in the report (Lehmann, Winer. D, Russell .S, 2002).Thomson tourism plans regarding marketing its products at the various stages of the TALC, analyse it and then maximise the extent of these stages for the development of the destinations of tourist during different situations. Boston Matrix: It is the tool to analyse the product finding out the priorities for making investments and the growth opportunities. While making the new strategy the company chooses the present scenario and the trend of the destinations. Thomson uses the Boston Matrix to analyse the different packages of the tour and its destinations then plan as per the analysis. Ansoff’s Matrix: It helps the tourism company to recognise the previous products and destinations those have the ability to attain the growth or tries to capture the new potential markets for attaining growth. It helps the Thomson in achieving the benefits over its consumers by providing them the huge variation in the products and the destinations.

    

2.2. Discuss the relevance of marketing research and market information to managers in the travel and tourism sector.

Marketing information defines all the details that are relevant to the company Thomson and useful for the further progress. It is all possible by the marker research which is done by the professional team that is marketing managers etc. Research done in the market is all about the product, customer requirements and the latest trend or the production and sales. Market Research helps the company in understanding about the market in which it tries to step in for the success of the company. Many competitors are available in the market those are providing the same product at reasonable price that means package included all offers but very reasonable. Some of them have come up with totally different one. So, it’s all depends on the strategy that how the organization will attract their customers and don’t let go their existing customers out. Thomson identifies that the market research / information is very much beneficial for maintaining the quality of goods / products and the services. Research is the key helps in getting all appropriate information about the market, it can be possible easily though the Internet in the short span of time. There are other ways too like surveys, Research on tourism industry, Occupancy survey and visitor’s survey.

2.3 Assess the influence of marketing on society.

Marketing has both the strong negative and the positive influence on the society. The process helps the company in identifying the powerful consumers in the market and makes them their new target for increasing the sales. The positive impact of the marketing on the society helps the operations of the business in meeting the needs of the consumers. The impact that the marketing mix bears on the society get detected itself from there. There are various groups those keeps on checking on the various industries and their impact on the society. They carry on rallies if they find any requirement. It helps them in matching the supply of the products with its demand only through increasing the awareness in the society.  There are negative impacts too as it leads to the wastage of money. In the sector of tourism, society gets the help from the market by offering different types of packages or more variety of destinations. It leaves the great impact on the society and the people follow it as they become familiar through advertisements. It is the accountability of the people to make ensure that it would not leave any negative impact on the society by conveying any wrong message. Generally, marketing makes the prices high as the cost of the marketing is added on to the product. It also leads to the consumerism as it encourages the consumer to purchase without much thinking (Kotler,2001).

Task 3

3.1 Discuss issues in the product, price and place elements of the marketing mix.

 

(Source: Dreamstime.com)

Marketing mix is the tools of the business. It is a research which is done by the marketers to determine the product and its brand. Also, consider offers offered by the organization. It is associated with four P’s – price, promotion, place and product but the tourism industry has three elements such as Price, Product and the Place. The second largest airport of the UK is the London Gat wick. It gives the variety of restaurants that satisfies the hunger of the travellers. It also gives the benefits to the kids for playing by providing then the sufficient area at the airport. As the executive in the marketing, i would analyse the concerned problems related with the elements of the marketing mix and suggest there for the recommendations that helps in increasing the profits of the company.

• Product: Gatwick Airport is one of the biggest commercial airport where a wide range of property is provided to the organizations / companies those are related with the airport. The main priority is to satisfy the needs of the consumers in the term of providing restaurants, branded outlets for shopping to them. There are various lounges where travellers can spend their leisure time during waiting for their flights. It is the heart of the marketing mix (Kim, Wei, and Ruys, 2003). It suggests that consumers should fill up the questionnaire that is given by the Airport periodically to get their feedbacks on the services of the Airport. It helps in understanding the needs of the travellers and improves the mistakes as per it.
• Place: Strategy in marketing regarding the place describes the distribution location or else where the service provided or product offered. Gatwick Airport is the advantageous place for the brands to offers the different types of products to the travellers for sale but not all the brands are available there as it has the limited stock so, it does not satisfy the consumers. As the marketing executive, I would plan my strategy of pricing in such a way that all the products start offering at the Airport.
• Price: It is the value where product is given in the exchange of it. It helps in giving the possession of the product to the other person by charging the fair price against that product. Strategies made with the motive to increase the sales. Different type of people visit the Airport and everybody cannot afford all such expensive things available there so, it is essential to maintain the decent prices of the services and the products. As a marketing executive at the London Gatwick Airport, I would make such strategy.

3.2 Assess the importance of the service sector mix elements to the travel sector.

Extended Marketing mix is an alternate name of the service sector mix represents an internal part of the companies/ firms. It has three additional elements along with the 4 P’s of marketing mix as previously discussed. The additional elements are Process, People and Physical evidence. These are need for giving the supreme delivery of the service.

1. People: It is the main elements of the service marketing mix. Here all those organizations with the aim of achieving profit are very particular about the buying- selling and recruit people who have a good experience in satisfying consumers. Apart from providing the services and the products, the company concentrates on the interaction with the consumers by the staff members. As a Marketing executive of the London Gatwick Airport, I focus on the staff interaction with the consumers. The company also pays the concentration on the interaction and providing the desired services and the products to them.
2. Process: It helps in understanding the ways of giving the services to the consumers. The process by which the company who offers services delivers its products those are important for the consumers. Before starting rendering services, a company tries to find out the strategic plan that how the services should provide to the end consumers. As a marketing executive, I would try to find out that how the feeding, playing areas for the kids should handle. It is the complete accountability of the staff member available on duty at that time about dealing with the consumers.
3. Physical Evidence: It is use as a differentiator in service marketing. As a marketing executive, I have to make sure that all the outlets available at the Airport should maintain the great ambience along with giving the superior quality of service and products to the consumers. All products should display in an attractive manner by every shop there.

3.3. Apply the concept of the total tourism product to an individual tourism business- London Gatwick airport.

London Gatwick airport has an ambition to achieve the excellence in providing the best customer service in the tourism industry. Huge competition seems on the airport. Strategy is to be made to offer the products at their best prices to attract the customers in the market. Marketing mix and service marketing mix both plays the major role. In order to attract more and more consumers, companies in the tourism industry follows the concept of the total tourism product. A tourism product is the package that involves all the offers related with the trip such as beverages and food, accommodation, entertainment and sightseeing. It is accountability of the company to interact with the travellers regarding on all above before travelling so that all consumers stay happy and enjoy the journey. The Airport tries to meet the consumer demands under the one roof related with either the services or products. The needs and the demands of all groups of all ages are taken care of by the company at the Airport. Every employee of the Airport aim is to satisfy the consumer needs and treat him like a King.

Task 4.

4.1 Assess the integrated nature and role of the promotional mix.

An organization uses the various methods of promotion for interaction such as advertising, direct marketing, Sale promotion and personal selling. Promotional mix consists of all the activities that support the advertising of the product. It helps in persuading the end consumers about the services and products offer by any of the organization. It emphasis on new buyers as well as retain an existing consumers also. All the components of the promotional mix are structured in such a way that helps in generating the awareness about the products among the buyers (Kerin, Hartley, Berkowitz, Rudelius, 2006). It is important for an organization to build its image / reputation in front of consumers for increasing the sales and earning more profits. As a marketing trainee in the Sheraton Hotel in Piccadilly, I will evaluate the nature of the promotional mix and uses it in making the strategy that helps in earning more profits for the organization.

1. Advertising: Advertising is the process of promoting the ideas, goods or services of the company through the mass medium. It uses the print advertisements, advertisements on Radio, T.V., Catalogues, Emails, direct mails, banners, web pages and Brochures. Sheraton Hotel uses all such methods of advertisements to inform the customers about the products and the services offer by them. It increases the guests in the Hotel and hence, the profit of the organization. Sales promotion: Promotion done by the company with the purpose to increase it’s sales and earn more profits. It helps the company in getting the response from its retailers and wholesalers. It increases the availability of the products. Sheraton Hotel use this technique for launch the packages in the end of the season. These packages involve tariffs offers at discount, complimentary stays and other exciting offers to attract its guests. Discount offers also plays the major role in promoting sales( J, 2009).
2. Direct Marketing: It helps the organizations in reaching towards their consumers through advertising. The channels of advertising are street advertising, promotional letters, catalogue distribution, etc. Sheraton hotels sent emails, letters for inviting their premium customers to inform about their new offers. This makes the consumers feel special.
3. Public Relations: An organization having sound image/ goodwill adopts the technique of Public relations. Here, the company does not bother about advertising or media interactions those are paid. It is, on its promoted by other mediums such as newspapers, radio shows etc. The main reason is the positive image of the company. Sheraton Hotel has the good reputation in the mind of the people promoted through various platforms.

4.2 Plan and justify an integrated promotional campaign for the Sheraton Hotel.

As marketing trainee in the Sheraton Hotel Piccadilly, I would use the analysis about the promotional mix for initiating the plan acts as the best suitable plan for my Hotel to promote it as it is going to launch after the promotional sales in the summers. The Sheraton Hotel will offer attractive offers in the form of hotel packages to its consumers. Here, I would like to suggest something for the Hotel to promote its sales. The marketing should take the help of the Media like Radio and newspapers to advertise their products and inform public about particular information. A personal invitation can be send to the premium customers of the Hotel. Employees of the Hotel should tell their guests at the Hotel’s reception about the promotional sales and the duration of the sale. It would compel some of the guests to come back again to avail such promotional offers. The marketing done about such promotional offers are through distribution of catalogues by the team members of the Hotel. The same should be updated on the website of the Hotel (Tsaur. C, Huang. C, 2002). I recommend that the components of the promotional mix should be used accurately to the people. These techniques help the Hotel in achieving its targets by satisfying the needs of the consumers and maximize the profits.

Conclusion:

The above all describes about the marketing strategy of the business. Whatever the company whether the travel or hospitality it concludes that a proper strategy requires from the marketing team to enhance the sales. Customer satisfaction is the top most priority for every organization. Companies can achieve their goal by satisfying all demands of selling or marketing mix requirements. The main aim of such companies is profit maximization and customer attraction.   

References

Cohen, William .A,  2005. “The Marketing Plan”. Fourth Edition. John Wiley & Sons, Inc.
Dan Sewell, 2009. “P&G May Make Changes as it Faces Challenges”. The Associated Press, June 9.
John Gapper,2010. “Why Brands Now Rise in the East”.  Financial Times, April 23
Jonathan Wheatley, 2010. “Business of Beauty Is Turning Heads in Brazil” . Financial Times. January 20.
Kerin, Hartley, Berkowitz, Rudelius, 2006. “Marketing”. Eighth Edition. McGraw-Hill Irwin.
Kim. J, Wei. S and Ruys. H , 2003. “Segmenting the Market of Western Australia Senior Tourists using Artificial Neural Networks”. Tourism Management 24:25–34
Kotler. P,2001. “Marketing Management”. Englewood Cliffs: Prentice-Hall
Lehmann, Donald .R & Winer, Russell. S, 2002. “ Analysis for Marketing Planning”. Fifth Edition.  McGraw-Hill Irwin.
Mok. C and  Iverson. T, 2000. “Expenditure Based Segmentation: Taiwanese Tourists to Guam”. Tourism Management 21:299–305.
Maringe. F, 2005. “University marketing: Perceptions, practices and prospects in the less .developed world”, Journal of Marketing for Higher Education.  15(2).  129-153.
Perreault. W and McCarthy.  EJ,  2005. “Essentials of Marketing”. New York: McGraw Hill. Product marketing mix extracted from Montiera.com, accessed on 21^st Oct’2014.
Tsaur. SH,  Chiu. YC  and  Huang. CH, 2002. “Determinants of Guest Loyalty to International Tourist Hotels––A Neural Network Approach”. Tourism Management 23:397–405.
Yu. CC, 2001. “Modern Marketing Management”. Taipei City. Wunan.