Unit 5: Marketing and promotion Flashcards
Why is Marketing & Promotion important to T&T Providers ?
- Increased sales/profitability/market share - more sales, more profit. TTPs need to widen customer base by attracting new customers.
- Competitive advantage - TTPs should attract more customers than its competitors to survive the competitiveness of the market.
- Customer satisfaction - If customer needs are met by the product or service, they may return for repeat purchase/leisure/business purposes OR spread the positive word amongst family & friends. This creates more sales and increases usage/market share/profit/brand loyalty.
Primary Market Research
It requires organisations to go out into the market & find out about customer needs & wants.
Types of Primary Research
- Self-completion questionnaires - series of open-ended closed or multiple choice questions given directly to the customer to fill in.
- Telephone & Internet surveys - customers are randomly contacted by phone/email or when visiting a website.
- Exit surveys - carried out as a visitor leaves an attraction in which opinions about the overall experience whilst at a particular facility is sought.
- Focus Groups - a number of customers are led by a member of staff to discuss their views on a certain product/service. It is costly & time-consuming.
Secondary Market Research
Using existing information that has been collected by a third party for a different purpose or using data from the organisation’s own records.
It can be time-consuming as there is a lot of information to research through and find specific information related to the organisation.
Types of Secondary Research
Internal Source - data from organisation’s old sales record or a customer database detailing how often a customer uses a particular facility.
External Source - Government produced data or trade reports accessed through membership accounts via the Internet.
Academic research findings within journals.
SR is usually unreliable and the research was originally carried with a different objective in mind. Thus, making it irrelevant or outdated.
Qualitative & Quantitative Data
Information collected about customer’s opinions & attitudes towards products & services.
Information is usually numerical or statistical by nature. It allows trends/patterns in the market to be displayed visually in chart or graph forms.
Analysis
Situation Analysis - TTPs must be able to carry out an accurate assessment of the business environment they operate in.
It helps TTPs identify +&- influences on its business activities.
Internal Influences - allows organisations to recognise influences within its own control.
External Influences - influences beyond the organisation’s control.
SWOT Analysis
Strengths - internal
Weaknesses - internal
Opportunities - external
Threats - external
It allows to recognise an organisation/product/destination position in the market.
If there are more Ws & Ts, then the TTPs will less likely expand.
If there are more Ss & Os, then TTPs will more likely to expand & develop.
PEST Analysis
Political - terrorism/politics
Economic - exchange rates
Social - diseases/cancel holidays
Technological - infrastructure dev
It allows to recognise the influences beyond the organisation’s control on the market.
Marget Segments
Geographic - by area of residence or country of origin.
Demographic - age, gender, ethnicity, level of income.
Lifestyle - level of education, profession, interests.
In order to build customer profile and target customers according to characteristic.
Products created to cater needs of customers in different segments
Package Holidays(Family/Group) - transport & accommodation OR car rental & excursions are sold together. - Product Bundling.
Transport(Group/Business)- luxury cruises, hot air ballon ride, business class tickets.
Accommodation & Catering(Group/Family/Business) - luxury over-water bungalows to tents.
Tourist Attractions(Group & Family) - theme parks, museums, historic infrastructures. Different offers for different customers.
Types of Customers
Different age/gender - Grey Market to Youth Market.
Specific needs - disabilities, religious laws, dietary needs.
Specific interests - eco-tourists, medical tourists, sports tourists, cultural tourists.
Product Characteristics
Tangible - you can see & physically hold the product e.g. meals.
Homogeneous - having the same kind of product e.g. hotel rooms.
Separable - you can tell the difference between 2 products due to features of each product.
Storable - products will last and is not perishable.
Service Characteristics
Intangible - cannot be seen or physically held.
Heterogeneous - services are different, every experience is individual.
Inseparable - not possible to separate service from experience.
Incapable of being stored - services cannot stay forever and cannot be transferred for used for a later date.
Product Life Cycle
Introduction - limited volumes of sale, high cost of production and no competition.
Growth - demand/sales volume/levels of profitability increases. This stage is critical to the success of the product.
Maturity - competition is strong, sales curve peaks, profit made continues.
Decline - sales fall, organisation decides whether or not to discard the product or re-launch it.
