Exam 2

Question 1

• Sustainable tourism development and its principles.

Answer 1

o	Dependent on area’s natural resources
o	Principles
	Improve quality of life (residents)
	High quality experience (visitors)
	Maintain environmental quality (residents and visitors)

Question 2

• Potential tourism development impacts.

Answer 2

o Architecture pollution
o Ribbon or strip development and sprawl
o Infrastructure overload
o Traffic congestion

Question 3

Private sector

Answer 3

 Entrepreneurial
 Risk takers (remember they are after a profit)
 Operations management

Question 4

nonprofit

Answer 4

	CVBs
	Chambers of  commerce
	Travel associations (e.g., Texas Travel Industry Association)
	Museums
	Cultural/historical associations

Question 5

o Government

Answer 5

 Catalyst
 Regulator
 Financial incentives (Figure 6.3, p. 148)
• Fiscal – income or other tax allowances (e.g., tax deferrals, eliminate or reduce tariffs, lower taxes)
• Direct and indirect – help financing projects (e.g., donate land, grants, loans, purchase shares in project)

Question 6

• Tourism development analysis methods

Answer 6

o Pre-feasibility study
o Economic feasibility study
o Cost/benefit analysis
o Environmental impact analysis

Question 7

o Pre-feasibility study

Answer 7

 Justify economic feasibility study
 Assess potential social, cultural, environmental impacts
 Is project viable (e.g., does it fit with the community image?)

Question 8

o Economic feasibility study

Answer 8

 BIG QUESTION:

• Will project provide acceptable rate of return?

Question 9

o Cost/benefit analysis

Answer 9

 Assessing noncommercial projects

 Society’s economic benefits

Question 10

o Environmental impact analysis

Answer 10

	Why?
•	Assess risks
•	Minimize impacts
•	Determine carrying capacity
	How?
•	Research
•	Identify appropriate management strategy(s)
•	Solicit public comment/participation

Question 11

• Identify the reasons tourism marketing is different than marketing other products.

Answer 11

o Intangible and perishable
o Various services/facilities/attractions/events
o No or little control of product (DMOs rarely operate tourism businesses)
o Staff
o Intermediaries and distribution
o Elasticity and seasonality

Question 12

• Understand what market segmentation is,

Answer 12

o What
 Needs, wants, characteristics of visitors
 Group potential visitors and then select target markets
 Forward/ a priori segmentation
 Backward segmentation

Question 13

market segmentation characteristics

Answer 13

	Measurable
	Accessible
	Substantial
	Defensible
	Durable
	Competitive
	Homogenous
	Compatible

Question 14

the product life cycle (PLC)

Answer 14

 Introduction
 Growth
 Maturity
 Decline

Question 15

o Objective positioning:

Answer 15

tailor services and/or product to develop image for target markets’ needs and wants

Question 16

o Subjective positioning:

Answer 16

develop, change, or reinforce without changing products and/or services

Question 17

• Four P’s of marketing

Answer 17

o Product
o Price
o Promotion
o Place (distribution)

Question 18

• Additional 4 P’s

Answer 18

o	Packaging
	Tourists use a variety of products and services
o	Programming
	Activities, events, other programs
	Wrap them into packages
o	People
	Proper training for all employees/hosts and hostesses
	Local residents
	Hospitable attitudes leads to satisfied guests leads to repeat visits and/or positive word of mouth advertising
o	Partnership
o	Cooperative/collaborative marketing
o	Strategic alliances (e.g., airlines)
	Frequent travel programs/awards
o	Two or more organizations or businesses pooling resources:
	Packaging – hotel and local attraction
	Joint marketing program(s)

Question 19

• Understand what tourism promotion is and why it is done.

Answer 19

o Goal is to change behavior:
 visitors book trips to your destination
 Repeat visitors come back and perhaps buy the same or a different package, visit a different attraction, use a different service, etc.

Question 20

• Identify types of promotions and how they are used at different stages of the product life cycle, as well as stages of the buying process.

Answer 20

o Informs – early stages (attention, comprehension)
o Persuades – intermediate stages (attitudes, intention)
o Reminds – repeat visitation, among reminding those already reached at earlier stages (purchase, adopt)

Question 21

• Identify the process for implementing a promotional program.

Answer 21

o Select target market
o Objectives
o Budget
o Message idea and format

Question 22

the types of activities that make up the promotional mix

Answer 22

	Internet
	Advertising
	Personal selling
	Sales promotion
	Merchandising
	Public relations/publicity

Question 23

o Message Idea

Answer 23

	Analogy, association, symbolism
	Comparisons
	Fear
	Honest-twist
	Slice of life
	Testimonials
	Trickery and exaggeration

Question 24

• Identify and explain ways to measure and evaluate tourism promotions.

Answer 24

o	Tracking studies
o	Cost-comparison
o	Concept or image testing
o	Conversion studies
o	Inquiry tracking
o	Pre-testing promotions
o	Post-testing promotions
o	Show audits (consumer, trade, etc)

Question 25

• Understand why the distribution mix of tourism is unique.

Answer 25

o Supply and demand; tourism destinations and visitors
o Intangible
o Perishable

Question 26

• Understand the relationships between distribution and the marketing mix.

Answer 26

o Distribution is part of the marketing mix
o Direct: Supplier, DMO, etc sells to visitor
o Indirect: Sale through a travel trade intermediary

Question 27

o Vertical integration

Answer 27

 Distribution channels entirely or partly owned by one organization (e.g., own hotels, restaurants attractions, etc)
 Direct control of information

Question 28

o Horizontal integration

Answer 28

 Organization owns like businesses in the distribution channel

Question 29

o Classification

Answer 29

 Consensus – several businesses
 Collaboration, partnerships, etc
 Vertically integrated – single organization in control of the channels
 Vertically coordinated – power or control is contractual (e.g., franchise – restaurants, hotels, etc)

Question 30

• Understand the different strategies for distribution.

Answer 30

o How you make service/product available
o Intensive – use all or many intermediaries and selling options
o Exclusive – have travel agents only sell a carrier, supplier, etc. services
o Selective – in the middle of intensive and exclusive
o Market coverage
o Costs
o Position/image
o Travel trade intermediaries
o Destination characteristics
o Economic concentration