Marketing Essentials

This assignment explores unique aspects related to the market and activities that company undertake for introducing its offering and that process is known as marketing. A comparison is done between strategies which are adopt by TUI for surviving and sustaining in marketplace and becoming huge threat for its competitor. At the end, a marketing plan is formulated for TUI in order to meet its strategic objectives and being very effective.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Application of marketing mix plan and its comparison with other organisation or
competitor...............................................................................................................................1
M3 Examining tactics used by company for attaining business objectives...........................5
TASK 3............................................................................................................................................6
P4/M4 Development of basic marketing plan for TUI...........................................................6
D1 Tactical application of 7P's in TUI...................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Market is a place or a ground where two or more individuals meet for making sales or
purchase or business transaction with the motive of earning profits. A marketplace is a ground
full of opportunities and of different sizes depending upon the area and the economy. This
assignment is exploring unique aspects related to the market and activities that company
undertake for introducing its offering and that process is known as marketing. There are various
departments which are available in an organisation, performing tasks for achieving the ultimate
goal of company. The duties of marketing and other functional units are interrelated which
interlinks them with one another. For this report, TUI is selected which is a multinational travel
and tourism company founded in 1923 and headquartered in Berlin and Hannover. The company
deals in hospitality industry, and is one of the biggest travel and tourism company owning five
European airlines and known as one of the largest holiday fleet. Moreover, in this report, a
comparison is done between strategies which are adopt by TUI for surviving and sustaining in
marketplace and becoming huge threat for its competitor. At the end, a marketing plan is
formulated for TUI in order to meet its strategic objectives and being very effective.
TASK 1
Covered in PPT
TASK 2
P3 Application of marketing mix plan and its comparison with other organisation or competitor
A company make use of tactics to promote its brand name and goods in particular
market. It is an essential technique that strengthen the image of product and service in front of
customers and help the firm to sell out the same in an unique way. Companies always try to
come up with distinct game plan which keeps them in competition and also they seek different
marketing approach (Pappas, 2017). Traditionally, there were four 'P's' product, price, promotion
and place but in modern time people, physical evidence and process are also added. Marketing
mix strategies differs from company to company, every organization use their own promotional
designs to sustain its position and for survival in the market.
This could be understood by following table:-
BASIS DESCRIPTION TUI BRITISH AIRWAYS
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PRODUCT Product refers to the
tangible thing which has to
be sold to ultimate
customer. It is an item
which satisfy the wants and
needs of buyer at
marketplace. Service is
intangible in nature and it
has to be consumed on the
spot.
TUI trade its services in
five vast divisions and
each of them provides
diversified product lines.
It sell out various different
kinds of products, which
enables customers to
choose according to their
preferences. It offers
peculiar features which
differs its services from its
rivals. The company has
number of hotels and
resorts, owns 17 cruises,
offer package holidays,
these are some products in
which TUI deals.
Company provides its
services and target
superior segment of
population as high
level of customised
products are
developed which leads
the firm towards
competitive advantage.
Also, the airline is
associated with high
digitization (Boniface,
2017). It is an airline
organisation rendering
all travel related
services.
PRICE This element of marketing
mix explains that how
much the buyers are
willing to pay for product
or service. Price refers to a
value for an item.
The pricing strategy used
by TUI is Competitive
based pricing because the
information regarding
other rivals are easily
available due to huge
existence. Presently, the
organization adopted
product bundle pricing
strategy (Aung, 2019).
This strategy reflects the
bundle of products that
sold out at low price than
the sum of single items. It
It uses deferential
pricing strategy
because it aims at
acquiring different
class of customers
belonging to various
segments of society.
The value of tickets
may differ according to
destinations, it also
offer discounts on
festival periods.
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also make use of optional
product strategy where it
set a value for base
product and charge
independent prices for
accessories.
PLACE This element describes that
how the product is being
distributed to final
consumer. Company has to
make sure to provide the
product at the right place,
in right quantity, on right
time (Tripon and Cosma,
2018).
TUI make use of two
promotional tools (direct
or indirect) for making
sales. Direct marketing
channel use when the firm
directly sells its products
to ultimate customer via
online portal. Second,
When company make use
of intermediaries like
wholesalers to sell its
items to retailers then final
customer is called indirect
marketing. It make use of
intensive strategy where
it tries to create a chain of
more retailers to ensure
that products are available
at ease to its buyers.
Airways provides its
services in more than
400 destinations. It also
has a tie up with
different airport
authorities so that
operations could be
conduct smoothly. It
follows online and
offline channel to sell
out its tickets.
PROMOTI
ON
This element describe that
how the group of buyers is
going find out regarding
the product or service
(Pappas, 2017). It is an
It follows multimedia
channels to communicate
with target customers
regarding its products.
First, way of promotion is
Firm promotes its
brand through TV
advertisement,
newspaper and
hoardings. It use
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activity through which an
organization communicate
with its target market.
advertising through radio
and TV because of its
broad capacity to influence
the huge number of
audience. Secondly, it
make use of social media
advertising because of its
cheap nature. It make use
of trade events once in a
year and go through with
personal selling.
practical and classy
messages in its
promotional activities.
Also, the firm has a
sponsorship with
rooftop film club, silent
picture house and
official partner with
Olympic and
Paralympic games.
PEOPLE This element refers to the
employees who attend and
communicate with the
customers regarding an
issue or query.
The firm operates its
function with its sales
team. These employees
are trained with
impressive techniques
which helps them to
honour its business
customers along with their
demands. Company recruit
people who work in
customer service
department which handle
the complaints regarding
product issue.
Organization has
approx 40000
employees. There are
two teams one is
operational team
managing all flight
related operations and
other is customer
service team, who
handle all customers
queries and
communicate with
them.
PROCESS This component states the
procedure while delivering
a product to customer. How
the service or product
deliver to customer plays a
Firm follows online
delivery procedure,
where orders are received
online and the product is
shipped to delivery service
For the availability of
tickets for buyers with
ease and comforts, the
firm make use of
online e- Ticketing
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crucial role because again
this is what buyer is paying
for.
provider. It do research
constantly regarding
market opportunity to
understand the need and
demands of buyers
(Othman and et. al., 2019).
facility so that
customer can book
tickets easily without
facing any troubles and
delays.
PHYSICAL
EVIDENCE
This element refers to the
things which customer
experience while
interacting with the
business. It involve the
environment (market),
layout(design), packaging
and branding.
Firm provides its products
in different colour, size
and design which are
easily recognizable by
customers. It provides
user friendly online
platform that allows
buyers to view images at
high quality.
In case of British
Airlines, the experience
that is being offered by
company is intangible.
It is based on
popularity of brand
name and how the
firm is offering its
services like design of
lounge, behaviour of
attendants, interior and
all (Kumar and Nayak,
2019).
M3 Examining tactics used by company for attaining business objectives
The marketing mix tool or 7P's analysis is bunch of strategies which are used by TUI
covering various aspects and areas in which entity needs to apply tactical knowledge in order to
be most effective in the marketplace. The marketing mix strategies assist TUI in attaining best
results and be most productive. They also helps in acquiring competitive advantage over others
in marketplace and stand one position ahead of others. For instance, in order to conduct
promotional action company use advertisements and social media and make effective use of
digitalisation. They make attractive advertisements using digital tools and techniques, by which
gains attention of mass public. Also, company offers unique innovative products for maintaining
their competitive position in marketplace.
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TASK 3
P4/M4 Development of basic marketing plan for TUI
Marketing planning is a process of anticipating future data and formulation of strategies
in accordance to them for achieving organisational objectives. It involves number of activities
such as analysing current scenario, gathering information, forecasting and making plans
according to the selected target audience (Eletxigerra, Barrutia and Echebarria, 2018). Marketing
plans sets the structure and act as guidelines for the organisation therefore, it is necessary for
company to develop their marketing plans. Also, marketing actions involves huge amount of
money and investment which makes it important for organisations to have a thorough studied
plan.
The marketing plans are linked with the company's strategy and objectives in order to
attain better results. There are three strategies which company can adopt that is cost leadership,
differentiation and niche. According to the strategy which is chosen by entity the objectives are
set and the marketing plans are developed in accordance with the objectives.
Marketing plan
Company overview
TUI is a multinational tour and travel company which was established 97 years ago. The
company is UK's largest travel and tour operator, owns around 1600 travel agencies, five
airlines, nearly 380 hotels and 17 cruises. The company serves in all major markets and holiday
locations around the globe. The TUI airways stands at the third position in the world having 62
aircraft's and covering almost 88 destinations in different countries. Company has huge customer
base and good reputation in marketplace (Suhartanto, 2018).
SMART Objectives:
 To increase the profits by 10% in next 6 months.
 To enhance its market share by 15% in coming one year To increase the sales by 25% in next one year.
Vision
The company's aim is to acquire the largest marketplace and be the best tours and travel
operator. The company's vision is to be effective and efficient enough so that whenever people
consider of travelling, they think of TUI (Zhang, Cheung and Law, 2018). The organisation aims
at creating and serving best services to customers and giving them best experience.
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Mission
The small term objectives are refers as mission of company, TUI's main goal is to
provide the best quality services to its customers. Also, another motive of company is to serve
innovative and creative services to all potential buyers
Strategy
TUI has huge customers share and operates on higher level, giving great competition to
others in marketplace. In recent years, company is facing problems in managing their competitor
and to be better and attaining competitive advantage, TUI is bringing a new package for collage
students. The company's strategy is differentiation as before and for that they developed a
package for students. In which they give them a service of hostel and allows them to live in a
hotel room availing all services in particular price (Kolb, 2017).
STP Segmentation- This is a process of dividing the market in small groups according to their
features and characteristics. The segmentation is done according to the gender, beliefs,
values and other social features. TUI is using demographic segmentation technique. Targeting- This phenomena is performed once market is segmented, in which company
targets one group according to their suitability and offerings. The targets here are the
college students who are coming from different countries for their studies. Positioning- It states the methods by which company will position itself in front of the
targeted audience. TUI is adopting and making full use of social media for promoting
their service and reaching to maximum number of students.
Marketing mix
 Product- The product is the new service package which is introduced by company for the
students and more specifically college students.
 Price- The pricing strategy earlier used by company is competitive, but now as this is a
new service which is created for college students, TUI is adopting low pricing strategy.
This is because it is entirely a new package which is introduced for college students
which is why company is keeping prices low in order to make progress and slowly move
towards success.
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 Place- At initial stage, TUI is approaching and introducing this package in UK market
only, but as soon this project proves to be a success, the company will introduce it in
other potential markets.
 Promotion- Digitalisation is increasing day by day and due to which the use of internet
and social media is also enhancing. Therefore, TUI is using different social media for
promoting new package and reaching to wider customers and potential buyer.
 People- Few new employees will be by TUI for handling this service but they all are
experts in their job, as this project is introduced at a very lower level. Also, existing staff
is given orientation about new package by giving brief information (Gowreesunkar,
Séraphin and Morrison, 2018).
 Process- The process of company is same as before online and offline. All the
information of the package is available online on official website of the company also,
students can buy their preferred packages through internet.
 Physical evidence- The promotional tools and advertisements which company is using
for spreading word about the package, the same actions will work as physical evidence.
Moreover, online presence of company and information about the new service is another
physical evidence.
Monitoring and Control measures
Monitoring measures refers to the supervision and knowledge seeking about the existing
and new products and services which company is offering for knowing their effectiveness.
Control measures are taken afterwards for improving their operations and removing any mistakes
from it. For monitoring and controlling, TUI will use various methods in order to learn about the
success of the package and take respective control measures (Nedelea, Ali and Alamgir, 2017) . Sales analysis- TUI's finance department will compare the current and past accounts of
company for knowing the increase or decrease took place in sales digits. Revenue units
will automatically help company to analyse and know the % change in their sales
numbers and know if the project is profitable after comparing it with all the expenses.
 Market share analysis- Another tool for gathering information about the success of the
service is seeking the information about increase in customer base, this is known as
market analysis.
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D1 Tactical application of 7P's in TUI
The 7P's strategy of company which are described above can be modified and better
suggestions are presented here: Product- The service is mainly for college students who are coming form different
countries for studies, TUI can made this package available to other public such as to
business professionals who are visiting for longer duration (Gardiner and Scott, 2018) . Price- Lower pricing strategy is adopted by TUI, but this can also turn into negative
promotion as people can think of it as less productive service. Place- The service is only introduced in UK market and company can enhance it and
introduced it in new markets also, which are potential. Promotion- Social media is used as main promotional tool, but TUI can use other
methods such as approaching different college and guiding students about their service. People- More staff will be employed for making this service more efficient and a success. Process- Online process is used for making sales and more emphasis is put on online
bookings.
 Physical evidence- For making effective physical presence TUI make use of
advertisements using digitalisation and making them attractive.
CONCLUSION
The market plays a vital role in success and growth of an organisation and development
of their marketing plans. The report is based on some essential tools, techniques and concepts of
marketing. It is an effective and essential process of promoting company's goods and services
into different marketplaces. The marketing teams, tasks are necessary for the organisation and
helps other departmental units for conducting their actions. Therefore, the roles and
responsibilities of marketing functions are interlinked with other functional units and assist them
for attaining their sole objectives along with contributing to company's ultimate goals. One
marketing plan of company involves various strategies which are affecting in several sectors and
the tool which is used for developing those is marketing mix. It has seven elements covering
broad sections and helping company to be effective in each area. Furthermore, a marketing plan
is create for the entity by which strategic objectives are achieved and monitoring actions are
taken to see if the suggested plan is appropriate enough for the organisation.
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REFERENCES
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