Roles and Responsibilities of Marketing in Travel and Tourism
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This report discusses the key roles and responsibilities of the marketing function within a selected travel and tourism organisation. It also analyzes the interrelationships between marketing and other functional units within the organization.
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Marketing Essentials for Travel and Tourism
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Explain the key roles and responsibilities of the marketing function within a selected travel and tourism organisation..............................................................................................1 M1. Analyse the roles and responsibilities of marketing in the context of the marketing environment............................................................................................................................2 P2. Discuss how roles and responsibilities of marketing relate to the wider organisational context....................................................................................................................................3 M2. Analyse the significance of interrelationships between marketing and other functional units within a selected travel and tourism organisation..........................................................4 D1.Critically analyse the key elements of the marketing function and how they interrelate with other functional units within a selected travel and tourism organisation.......................4 TASK 2............................................................................................................................................5 P3. Compare the ways in which different travel and tourism organisations apply the marketing mix to the marketing planning process to achieve business objectives..................................5 M3. Evaluate different tactics applied by travel and tourism organisations to demonstrate how business objectives are achieved............................................................................................7 TASK 3............................................................................................................................................7 P4, M4. Produce a basic marketing plan for a travel and tourism organisation to meet marketing objectives organisation..........................................................................................7 D2. Design a strategic marketing plan that tactically applies the use of the 7Ps and includes measures for monitoring and evaluation to achieve overall marketing objectives..............10 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13
INTRODUCTION Marketing refers to a business process in which relationships between customers are created and developed for the purpose of providing them satisfaction by producing quality goods and services (Avila-Robinson and Wakabayashi, 2018). This report is based upon Travelodge which is a UK based travel and tourism organisation that provides hotel and hospitality services throughout UK. It is the second largest hospitality sector that deals in United Kingdom (Travelodge's,2019). This report covers significant responsibilities and roles of the functions of marketingwithinTravelodgeandincontextofitsbusinessenvironment.Italsocovers interrelation of marketing with other departmental function and how they together achieve organisational objectives. Further it covers comparison between various ways in which travel and tourism sector uses marketing mix elements in its business process for attaining business goals. At the end of this report, a marketing plan is developed for this organisation for formulating certain strategies to meet business objectives. TASK 1 P1. Explain the key roles and responsibilities of the marketing function within a selected travel and tourism organisation Marketing refers to actions and business processes that helps in selling and promoting goods and services in the target market. Marketing concept focuses upon attaining business objectives by developing a company which is more effective than its competitors. It is developed in four concepts such as production, product, selling and customer concept(Anche, Hozouri and Mehdizadeh, 2014). In production concept, customers purchase those products which are inexpensive. In product concept, they prefer products that has innovative features and is of better quality. In selling concept, customers do not buy products by which an enterprise puts a lot of efforts in achieving competitive edge in market. In customer concept, company focus upon customers and provides goods and services as per their demand. Marketing function plays a major role in formulating various business strategies and in achieving various objectives of an organisation(Dileep and Mathew, 2017).In each sector, marketing is important as it helps in making customers aware about current products and services provided by the company. In travel and tourism sector, marketing has a wide role in promoting and advertising certain services to its customers and in formulating an effective market plan and 1
strategies as required. In Travelodge, there are various roles and responsibilities played by marketing function in its various business process. Roles and responsibilities of marketing function 1.Promotion-It refers to the procedure of making targeted customers aware about the existence of a specific product or service. The basic role and responsibility which is played by marketing in an organisation is to promote and advertise company's products and services among its customers. This function helps the customers in knowing about the availability of a particular product or service (Anche, Hozouri and Mehdizadeh, 2014). Travelodge uses both online and offline promotional measures in promoting its services among customers. It has a mobile friendly application that makes consumers aware about deals and offers offered by this company. 2.Product development-It refers to introducing and launching a brand new product in a target market. Although product is developed in two ways, either by introducing a new product or by making changes to the existing product by adding certain features to it. Marketing plays an important role in developing a product by indulging itself in market research.Byconductingmarketresearch,Travelodgecandevelopitsproductsin accordanceasperthechangingdemandandpreferencesofitstargetaudience (Aswathappa, 2013). 3.Marketing strategies-Marketing function is also responsible in formulating various marketing strategies by analysing marketing environment. These strategies refers to long term fundamental approach of market planning that helps the business in achieving its competitive advantage(Othman and et. al., 2019).An organisation can choose from variousstrategiessuchasmarketpenetration,diversification,productandmarket development.Travelodgekeepsonupdatingitsservicesbyadoptingproduct development strategy by appropriately analysing current market conditions. M1. Analyse the roles and responsibilities of marketing in the context of the marketing environment The role and responsibility of marketing is not limited to the organisational context but it is more than this. Marketingplays a majorrole in analysingbusinessenvironmentand identifying customer's tastes and preferences thereby. On that basis, it formulate various business 2
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strategies and provide products in accordance(Aswathappa, 2013). In Travelodge, the role of marketing in environmental context is elaborated as follows- Market research-It refers to the activities and actions for the purpose of gathering informationabouttastesandpreferencesofcustomers.Marketingplaysa majorrolein conducting market research and in identifying customers preferences. Monitoringmarketingenvironment-Marketingplaysamajorroleinmonitoring marketing environment by interpreting and assessing important data and information which is collected by environmental scanning (Chang, Yu and Lu, 2015). Marketing helps in monitoring marketing environment and analyse customers tastes and preferences and then produce products and services in accordance. P2. Discuss how roles and responsibilities of marketing relate to the wider organisational context All the organisational functions are interlinked with each other for the purpose of achievingbusinessgoalsandobjectives.InTravelodge,allthedepartmentsareclosely interlinkedwitheachotherandhealthyrelationisformedamongthem.Interrelationof marketing with other departments are elaborated as follows- Marketing and Finance department-These departments are closely interlinked with each other for the purpose of achieving overall objectives of a business. In travel and tourism organisation such as Travelodge, marketing function plays an important role in identifying tastes and preferences of customers. It also helps in developing needs among consumers in regards to specific services by using certain technology of promotion. Also, finance function ensures that the company in appropriately utilise financial resources in order to carry on its activities of promotion (Gengler and Mulvey, 2017). In short, marketing department helps in creating demand in market and financial department provides monetary resources for the purpose of fulfillingthesedemandsbydevelopingsuitableservices.Itprovidesfundstomarketing department for carrying out its activities in proper manner. Marketing and R&D department-In Travelodge, both research and development and marketing department plays various functions and conducts business processes together in achieving various goals of business(Chang, Yu and Lu, 2015). Marketing helps in generating needs for certain services among the consumers and R&D department helps the company for developing technology and innovation. If R&D will not able to generate different packages to its customers than marketing will become ineffective. Similarly, if marketing will not convert these 3
technologies into an appropriate product than research and development department will become useless. Marketing and HR department-In context of Travelodge, both the human resource as well as marketing function plays a major role in achieving various aims and goals of a business. Marketing department helps the HR department in advertising the job vacancies that are available within an organisation through internal and external advertisement. (Glanz, Bader, and Iyer, 2012). It also helps the organisation in positioning its brand image in the mind of consumers.Onthecontrary,HRdepartmentprovidescertaintraininganddevelopment programmes to marketing team which improves their performance. It is very important for this enterprise to develop a balance between these two functions in order to achieve business goals. M2. Analyse the significance of interrelationships between marketing and other functional units within a selected travel and tourism organisation It is very important for an organisation to have interrelation among its departments in order to achieve overall business objectives in a more appropriate manner. In Travelodge, marketing function helps in creating a demand in market and finance function helps in providing financial resources to convert that demand into a product or service(Gengler and Mulvey, 2017). Similarly, marketing helps the HR department in promoting certain vacant position available within an organisation by indulging in advertisement. R&D department helps marketing in providing certain innovation and technology that helps it to develop a suitable service that meet overall customer's demands. So, it is very important for Travelodge to form balance between all its department in order to achieve its overall business objectives (Gummesson, Kuusela, and Närvänen, 2014). D1.Critically analyse the key elements of the marketing function and how they interrelate with other functional units within a selected travel and tourism organisation Marketing is one of the most important function of an organisation and it do not only responsible to the functioning of its own department but it also plays major role in other departmental functioning. It helps the HR department in its recruitment procedure by promoting vacant job positions among candidates. R&D department helps marketing by providing latest technologies which it can use in order to develop a service that will meet customer's demands (Glanz,Bader and Iyer, 2012). Finance department helps marketing function by providing 4
monetary and financial resources. In short, all these departments are closely dependent upon each other and a dis functioning of one department will make other ineffective. TASK 2 P3. Compare the ways in which different travel and tourism organisations apply the marketing mix to the marketing planning process to achieve business objectives Marketing mix is described as mixture of factors which are controllable by the company for influencing its customers to buy its products or services. Different organisations uses marketing mix in a different manner which is dependent upon what objectives a company want to achieve (Henriksen, 2012). Here, marketing mix of Travelodge is compared with marketing mix of another travel and tourism organisation named Cosmos Holidays, that is a UK based travelling company (What is the Marketing Mix and How Can You Use It?,2019). Comparison of marketing mix Marketing MixTravelodgeCosmos Holidays ProductThisorganisationprovides hospitality and hotel services alloverUKandother countries. The major services offered by this company are modernised rooms, king size beds, full licensed bars, cafes, free Wi-Fi, and so on(Yusop, Zin and Kurniawan, 2016). Itofferscertainholiday packagestoitscustomers which includes travelling, food and accommodation services. PriceTravelodgeusesmoderate pricing strategy in its services. It offers budget friendly hotel roomsthatanypersoncan afford. Ituseslowpricingstrategy which includes budget friendly travelling packages which can be easily affordable by middle class person (Jobber and Ellis- Chadwick, 2012). PlaceIt has around 560 hotels acrossIt provides its services in many 5
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UKandIreland.Italso providesitsservicesinUS, Canada,Spain,Asia, Australia,andNewZealand (Gummesson,Kuuselaand Närvänen, 2014). countries along with UK such asItaly,Spain,Britainand Central Europe. PromotionItbasicallyusesonline promotionalmeasuresfor promoting its services in the targetmarketsuchassocial media,itsofficialwebsite, YouTube, and so on. Thisorganisationutilises digitalpromotionalmeasures to advertise its services such as Television,YouTubeand social media. It also provides information about its services in its official website. PeopleTravelodge has around 11,000 employees that work together forlookingoutforits customers.Theyprovides customerssatisfactionby solvingtheirqueriesand developing services that meet customer'sexpectations (Möller and Parvinen, 2015). Its people includes its digital marketingteamthatkeeps updatingitstravelling packages and certain deals in its official website. Also, the touristguidemakesagood impression in customer's mind whichresultsinenhancing company's goodwill. ProcessIt has a simple procedure for delivering its services among customers.Consumerscan easilybookhotelsfromits officialwebsiteormobile applicationasitprovides online payment method. Its process is simple and easy to understand. Customers get informationaboutvarious deals and packages offered by this company from its website or other areas. Than, they can simply book packages as per theirpreferenceandpay 6
online. Physical EvidenceItsofficialwebsiteisits physicalevidence. Moreover, itsbeautifulandattractive ambience of its hotel rooms, bars,andcafescanalsobe consideredasitsphysical evidence. Itsonlinewebsiteand headquartercanactasa physicalevidenceforthis company (Nagle and Muller, 2017). M3. Evaluate different tactics applied by travel and tourism organisations to demonstrate how business objectives are achieved The elements of marketing mix are under the control of an organisation and its very importanttousetheminanappropriatewaytoachievebusinessgoalsandobjectives. Travelodge uses marketing mix properly for developing suitable services that meet customer expectations. It uses services as per consumer's demand, offers them by using moderate pricing strategy, distribute its services in many countries and promote them by using both online and offline measures(Linden and Linden, 2017). It has many employees that works together for achieving its overall objectives. Customers can easily enjoy its services as it offers online booking and payment facility. Moreover, its attractive ambience and website helps in building its physical evidence. TASK 3 P4, M4. Produce a basic marketing plan for a travel and tourism organisation to meet marketing objectives organisation Market plan is a component of overall business plan which is formulated to achieve business objectives in an effective manner. A basic market plan includes mission, vision, objectivesand budget (Tanner and Raymond, 2015). For achieving overall objectivesof marketing plan, tools like STP model and SWOT analysis is prepared. It is a written document that helps in determining certain activities if business which is involved in executing particular marketing objectives within a specified period of time. Marketing plan 7
Overview Travelodge is a British based travel and tourism organisation that provides hotel and hospitality services to its customers at multinational level. It has more than 560 hotels all across UK, Spain and Ireland. It offers certain services such as hotels, bar, cafes, restaurants, and so on. Recently this organisation is planning to launch self check-in and self check-out service in order to attract its customers (Anche, Hozouri and Mehdizadeh, 2014). For this purpose an effective market plan is developed in order to formulate this service in effective manner. Mission The mission of Travelodge for launching this self check-in and check-out service is,“To becomepeople'sfavouritehotelforvaluethatprovideshighsatisfactionleveltoits customers.” Vision The long term vision of Travelodge is,“ To become the number one travel and tourism industry in the world and be ahead of its competitors.” Objectives The objectives of Travelodge towards launching self check-in and check-out service are- To increase its market share up to 10% in up coming one year. To increase the sales and profitability of this company up to 15% in up coming year. STP Model It is determined as a wide market framework that helps in segmenting market into various categories, target customers and market, and position company's products and services in customer's mind (Aswathappa, 2013). For the purpose of formulating marketing plan for Travelodge, this model is used as follows- Segmentation:It includes breaking down market into various categories which is done in various forms such as demographic, psycho graphic, geographic, etc. Travelodge is launching self check-in and check-out service in which it has segmented its market geographic segment and is providing it in its major areas such as UK, US and Canada. Targeting:It is the most crucial part of STP model and it helps the company in aiming at customers and market that will most profitable for its business venture. In this approach, company targets its customers and market to whom it is developing certain products or services. In context of Travelodge, it is targeting this service of self check-in and check-out to those 8
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customers who has a very busy life and do not have much time to indulge themselves in check in and check out proceedings. Positioning:Itreferstocreatinganimageofcompany'sproductsorservicesin customer's mind. It is the process that includes what a marketer do to the minds of its targeted audience. Travelodge has positioned its self check-in and check-out service as a service which will help the customers in saving their time. SWOT Analysis This analysis refers to all internal factors such as company's strengths and weaknesses and all external factors such as threats and opportunities which will have large impact upon an organisation (Travelodge's SWOT analysis,2019). In order to formulate this marketing plan in an effective manner, this company can use SWOT analysis and it will also help Travelodge in identifying its competitive advantage. SWOT analysation of this company is done as follows- StrengthsWeaknesses Travelodge offers a variety of services to its customerssuchasonlinebooking,double room, family rooms, etc. which are budget friendly.ItsTravelodgegreenprogramme helpsinreducingcarbonfootprintinits services. Althoughitoffersmanyservicestoits customers but it do not offer certain services which are room, porter and concierge services. This enterprise has very limited presence in international markets and it pays attention only into UK and Ireland markets (Chang, Yu and Lu, 2015). OpportunitiesThreats Itcanrenovateitsinteriorbyusinglatest technology and innovation. Moreover, it can also expand its services in more global markets to earn profits. Itsbasicthreatsareitscompetitorsthat providessimilarservicestoitscustomers. Moreover, there are increasing number of new entrantsthatareenteringintomarketwith updated services. Budget MARKETING BUDGET (ÂŁ) 9
PARTICULARSIst YearIInd YearIIIrd YearIVth YearVth Year Initial money40007200133001536018770 Investment940010300138303173013450 TOTAL1340017500271304709032220 MARKETING OUTLAY Promotion57462659589328752211 Sales publicity1465900265213921150 Direct selling2235190049519004434 TOTAL944654591229651677705 Monitoring and Controlling It refers to keeping an eye to all the activities of marketing in order to ensure that business is able to achieve its overall objectives as per the market plan. As Travelodge is launching self check-in and check-out services than it is the responsibility of this organisation that all the activities are evaluated in an appropriate manner and marketing plan is executed within a given budget. It must ensure that adequate promotional measures are utilised in order to make customers aware about the existence of this new service. D2. Design a strategic marketing plan that tactically applies the use of the 7Ps and includes measures for monitoring and evaluation to achieve overall marketing objectives Strategic marketing plan refers to a procedure by which a company developed certain plans and strategies for achieving business goals and objectives (Gengler and Mulvey, 2017). For Travelodge, strategic marketing plan is developed as follows that uses marketing mix in order to achieve business objectives. 10
CONCLUSION From the above report, it has been concluded that marketing plays an important role within an organisation as well as in marketing environmental context. It helps in making customers aware about the existence of products by promoting them in the target market. It also help in identifying tastes and preferences of customers by indulging in market research. It serves its functions in organisational departments. It helps HR department in advertising if any kind of job vacancy is available within an organisation. Further, it concludes that company must utilise all the elements of marketing mix in an appropriate manner to achieve business objectives. At the end, market plan is essential for formulating marketing strategies in a proper way. 11
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REFERENCES Books and Journals Anche, F., Hozouri, S. and Mehdizadeh, A., 2014. An exploration investigation on important factors influencing e-marketing: Evidence from banking industry.Uncertain Supply Chain Management. 2(1). pp.49-54. Aswathappa, K. E. M. A. L., 2013.Human resource management: Text and cases. Tata McGraw-Hill Education. Chang, Y. T., Yu, H. and Lu, H. P., 2015. Persuasive messages, popularity cohesion, and message diffusion in socialmedia marketing.Journal of BusinessResearch.68(4). pp.777-782. Gengler, C. E. and Mulvey, M. S., 2017. Planning pre-launch positioning: Segmentation via willingness-to-pay and means-end brand differentiators.Journal of Brand Management. 24(3). pp.230-249. Glanz, K., Bader, M. D. and Iyer, S., 2012. Retail grocery store marketing strategies and obesity: an integrative review.American journal of preventive medicine. 42(5). pp.503-512. Gummesson, E., Kuusela, H. and Närvänen, E., 2014. Reinventing marketing strategy by recasting supplier/customer roles.Journal of Service Management.25(2). pp.228-2 Henriksen, L., 2012. Comprehensive tobacco marketing restrictions: promotion, packaging, price and place.Tobacco control. 21(2). pp.147-153. Jobber, D. and Ellis-Chadwick, F., 2012.Principles and practice of marketing(No. 7th). McGraw-Hill Higher Education. Möller, K. and Parvinen, P., 2015. An impact-oriented implementation approach in business marketing research: Introduction to the Special Issue on “Implementing Strategies and Theories of B2B Marketing and Sales Management”.Industrial Marketing Management. 45. pp.3-11. Nagle, T. T. and Muller, G., 2017.The strategy and tactics of pricing: A guide to growing more profitably. Routledge. Tanner, J. and Raymond, M., 2015.Principles of marketing. University of Minnesota Libraries Publishing. Viswanathan, M., and et. al., 2012. Marketing interactions in subsistence marketplaces: A bottom-up approach to designing public policy.Journal of Public Policy & Marketing. 31(2). pp.159-177. Avila-Robinson, A. and Wakabayashi, N., 2018. Changes in the structures and directions of destination management and marketing research: A bibliometric mapping study, 2005– 2016.Journal of Destination Marketing & Management.10. pp.101-111. 12
Dileep, M.R. and Mathew, V., 2017. Marketing of Tourism Industry: Enhancing Services through Marketing Mix Elements. InStrategic Marketing Management and Tactics in the Service Industry(pp. 304-329). IGI Global. Othman, B., and et. al., 2019. The influences of service marketing mix on customer loyalty towards Umrah travel agents: Evidence from Malaysia.Management Science Letters. 9(6). pp.865-876. Yusop, N.D.B.M., Zin, M.A.A.B.M. and Kurniawan, I., 2016. The behavior analysis generation Y in using search engine for travel purposes.THE Journal: Tourism and Hospitality Essentials Journal.5(2). pp.911-920. Linden, H. and Linden, S., 2017. Fans and Tourism. InFans and Fan Cultures(pp. 105-129). Palgrave Macmillan, London. Online Travelodge'sSWOTanalysis.2019.[Online].AvailableThrough: <https://toughnickel.com/industries/Travelodge-Comprehensive-Business-Analysis-and- International-Expansion-Plan>. Travelodge's.2019. [Online]. Available Through:<https://www.travelodge.co.uk/about/our- company/>. What is the Marketing Mix and How Can You Use It?.2019. [Online]. Available Through: https://blog.globalwebindex.com/marketing/marketing-mix/. 13