This marketing plan outlines the strategies and tactics to promote TUI Fly, the airline service of TUI. It includes digital marketing approaches, use of virtual reality for enhancing customer experience, and improving physical evidence. The plan aims to achieve marketing objectives and gain a competitive advantage.
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MARKETING ESSENTIALS FOR TRAVEL AND TOURISM
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1. Explain the key roles and responsibilities of the marketing function within a selected Tourism Organisation..................................................................................................................3 M1. analyse the roles and responsibilities of marketing in the context of the marketing environment.................................................................................................................................4 P2. Discuss the roles and responsibilities of marketing relate to the wider organisational context........................................................................................................................................5 M2. Analyse the significance of intelligent should between marketing and other functional units within a selected Tourism Organisation.............................................................................5 TASK 2............................................................................................................................................6 P3. Compare the ways in which different tourism organisations apply the marketing mix to the marketing planning process to achieve business objectives..................................................6 M3. Evaluate different tactics applied by travel and tourism organisation to demonstrate how business objectives are achieved.................................................................................................9 TASK 3............................................................................................................................................9 P4. produce a basic marketing plan for a travel and tourism organisation to meet marketing objectives of the organisation. /M4. Produce a detailed, coherent, evidence-based marketing plan that applies the marketing mix to meet marketing objectives for a travel and tourism organisation................................................................................................................................9 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Marketing refers to the process and all those activities which are adopted by businesses in order to appropriatelyestablish their presence in the market and customers familiar with their products and services(Bai, Hung and Lai, 2017). Basically marketingis a process that interrelates with the brand similarity and popularity within the given marketplace along with the offerings of the organisation which respective brand belongs. Marketing is considered as one of the most essential function within the businesses irrespective of their industries and marketplace. Insimilarcontextmarketingreferstosignificantoperationwithinatravelandtourism organisation belonging to the hospitality industry. The present report below is based on TUI AG, highly recognised travel and Tourism Organisation in London, United Kingdom. In the report below a detailed explanation of marketing role within the entity and their interrelationship with other function is provided. Father mod the report covers comparison between different elements of marketing mix of TUI and its competitors. Lastly a basic marketing plan is developed for meeting the business objectives of TUI. TASK 1 P1. Explain the key roles and responsibilities of the marketing function within a selected Tourism Organisation. Marketing is a function which includes a process which ensure that every potential customer within the market is familiar and attracted towards the offerings of speak respective company. marketing function helps and entity in increasing their communication with niche and potential market places in regards to the products and services provided as well as received benefits for the customers associated with the brand. The marketing function of organisations and for this report TUI has a number of roles and responsibilities to perform which brings efficiency and effectiveness towards the entity and establish a strong brand name in the market. ROLES OF MARKETING FUNCTION: ď‚·Market research-The first and the most basic rule which is performed by marketing function of TUI within the travel and tourism sector is of conducting marketing research. the respective rural health company in engaging and gaining the most significant and relevant information from the market as the research is undertaken on different spectrum and areas. 3
ď‚·Information provider-The second most relevant role of the marketing function Hindi travel and tourism sector and which it performs for the respective organisation that is TUI is of providing information to all different functions to which the respective knowledge is relevant. For instance while researching the market different trends are identified by the marketing team and these trans are communicated to the production department for developing the best and most attractive offers and travel packages for targeted customers (Hooper and Lennon, 2016). RESPONSIBILITIES OF MARKETING FUNCTION: ď‚·Brand Management-One of the major responsibility of marketing function within TUI is that it helps the company in managing its brand and undertake competitive analysis which enables the organisation to determine prospects that are useful in attaining brand equity. ď‚·Product Development-This is the responsibility of marketing function within TUI of developingeffectiveandstrongofferingsforthecustomers.Thismeansthatthe department is responsible for producing affordable and most attractive service with received quality for the customers. M1. analyse the rolesand responsibilitiesof marketingin the contextof the marketing environment. Inrespecttotheorganisationalcontextmarketinghaveanumberofrolesand responsibilitiesbutitalsohavedifferentrolestoperformwithintheoverallmarketing environment of the firm. Some of these roles and responsibilities are as follows: ď‚·Information system-The responsibility of marketing function in regards to information system is related to providing the most appropriate data and information to organisations such as the TUI within the travel and tourism sector. The provided information can be delivered for any different aspect that will be useful for the company(Pappas, 2017). ď‚·Monitoring-The marketing function role and responsibility in regards to monetary is crucial where it keeps track on external and internal environment of TUI and helps to make any changes and modifications in the dynamic as well as regularly evolving environment. 4
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P2. Discuss the roles and responsibilities of marketing relate to the wider organisational context. Marketing department is a unique unit of the organisation which also holds an active part in leading it towards success and growth. One of the unique feature of Marketing department which it holds in every organisation irrespective of their industries and sectors is off integration and inter relationship with different functional units present in the organisation. In the similar context, TUI is the leading organisation belonging to travel and tourism industry holding number of different functional units such as Human Resource Department, Research and development Department, Sales Department and Finance Department (Rahmiati andet. al., 2020). Marketing Department is interrelated with these different functional units of TUI which is done by integrating its rules and responsibility which the separate departments. Therefore, this interrelationship and interdependency of marketing function on other units like Finance, Sales and Human Resource is elaborated below in the next section. INTERRELATIONSHIPS OFMARKETING FUNCTION WITH OTHER FUNCTIONAL UNITS OF TUI: Human resource and Marketing Department-The role and responsibility of Human Resource Department of TUI is to fulfil the company’s needs of having a strong and potential workforce. The role of marketing and Human Resource Department interrelates when the company is in need to recruit new members for filling the vacant position. The marketingunithelpsHumanResourceDepartmenttoadvertiseandpromotethe information about the breaking job position and in search in the best professional for the brand (Plantinga, 2017). Finance and Marketing Department-The role and responsibility of finance department in TUI is to take care of all the funds available with the brand and allocate them in the most effective manner to offer the best returns to the company. The correlation exist between marketing and Finance Department of TUI when budgets are allocated to Marketing department for their respective promotional activities with regards to enhance companies popularity and brand awareness in the market. M2. Analyse the significance of intelligent should between marketing and other functional units within a selected Tourism Organisation. Every functional unit within TUI operates differently and work with the unique characteristics to achieve particular set of objectives and targets that are provided by the 5
management of the organisation. But marketing function integrates and amalgamate with all these different working units in the organisation for providing the most effective overall functioning of the organisation and ensuring productivity. Therefore, relationship developed by marketing with other functional unit is very necessary for accomplishing different goals in the most appropriate manner and as per the given standards. TASK 2 P3. Compare the ways in which different tourism organisations apply the marketing mix to the marketing planning process to achieve business objectives. Marketing mix refers to the tool for the framework which is used to integrate all the variables within the marketing function and set up a appropriate directive approach for the organisation to accomplish all several marketing objectives. The framework provides different tactics and tools to the entity for emphasising upon their strategies in order to gain higher competitive advantage and sustain the longer period of time within the industry (Walker and Lee, 2019). The marketing application of TUI and one of its competitor that is booking.com is explained below in the table. Elements of Marketing MicTUIBooking.com ProductThecompanyuses diversification as its product strategy. The product offered by the firm array of multiple range of services including a ofdistinctofferings.Also differentiationisanother strategywhichallowsthe form in gaining competitive edge. IncomparisontoTUI booking.comimplements customer based services as its productstrategy. Booking.com only introduce thoseportfoliosthatare desiredbythecustomers rather than focusing on larger and wider portfolio. PriceTUIadoptscompetitive pricingstrategyinorderto growwithinitspotential market. Booking.comadopts differentiationpricing strategyinordertosetup pricesforitsproductsand 6
services offered. PlaceThecompanysellsits offerings in two distinct ways 1isitsoutletsthatare physicalstoreswhere customerscanvisitand acquire their desired services. The second is its website for customers through which they can make purchases. Booking.comisuniqueand onlydealsthroughvirtual platformsandinternet.The company has established its website as well as an mobile application for interacting and keeping in touch with all the customers as well as potential buyers (Sotiriadis, 2018). PromotionPromotionalstrategiesand tools used by TUI are more of traditionalmediasuchas television,radioand newspaperadvertisement. The company also uses social media to make it services and brandawarenessbut800 mainfocusiskepton traditionalmeansof promotions. Ontheotherhand booking.comusesmore moderntechniquesand approaches to to promote its offerings such as its holiday packages and distinct features offered are huge attraction for customers.Alongwiththat company make efficient use of digital media to promote and advertise it offerings in the market. PeopleTherearenumberof employeespresentinin differentdepartmentsand functional units of TUI. The companymakessurethat effective on the job and off thejobtrainingthatare essential for the workforce is provided to them in respect of Booking.commakeuseof numberofappraisal programs,trainingsessions and other rewards for keeping themoralandmotivation standards of employees high. Along with it another motive of doing so is to keep them focusedtowardstheirroles 7
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ensuringgrowthand development of the company. and responsibility and render the best performances to the company in regards to their respective field and expertise. ProcessNumber of processes adopted by TUI along with techniques andmethodstoimplement them.onlinethatisvirtual andphysicalbothtypesof processes are used within the entityforrunningthe operationssmoothlyand effectively.Forinstance companyusesocialmedia anddigitaltoolstocollect feedbackfromtheir customersandalsotogain knowledgeabouttheir preferences (Khare,Dixit and Sarkar, 2020). Booking.comisfocused highlyuponsimplifyingits processes within the company forbothpeopleandfor customers.Theentityis engaged and associated with more than 30 million hotels andotherrental accommodationservice providers around the world. Still the organisations offers a single platform for bookings andenjoyotherrelated services with the brand. Physical EvidenceThe most relevant and value adding physical evidence of TUI is its distinct packing of its products within the retail shops, the company's website andthephysicaloutlets throughwhichitconducts sales activities. Customisationisheavily implemented in the processes ofbooking.comthatenable userstochoosethere accommodation,holiday packagesandotherrelated servicesaspertheirneeds and desires. These aspects in shores authenticity and offers aphysicalevidenceforits services by associating it to 8
certified accommodation and dining service providers. M3. Evaluate different tactics applied by travel and tourism organisation to demonstrate how business objectives are achieved. in the above section the marketing mix elements and their application used by Vini and its competitor is separate and indirectly different. But from the evaluation conducted above it is identified that application of marketing mix within TUI is it somewhat weaker than that of booking.com. the four for making improvement and gaining competitive advantage the company needs to adopt different tactics which are as follows: ď‚·In order to promote its services TUI need to indulge in digital marketing by adopting different approaches like search engine optimisation, social media and push notification. ď‚·In order to improve its physical evidence, TUI needs to start using different technologies like virtual reality for offering real time experiences to customers and develop a positive perception in their mind-sets for the entity (Rasulovich and et. al., 2019). TASK 3 P4. produce a basic marketing plan for a travel and tourism organisation to meet marketing objectives of the organisation. Marketing plan is a detailed and sequential blueprint of an organisational marketing processes that is used by the entity to communicate and promote its offerings in front of customers. In context with TUI apart from its effective bookkeeping services and tour packages the organisation offers several different services such as TUII Airways pitch reflects over its brand. Abhishek marketing plan describes the steps and processes about how best the company can make itself and its offerings familiar with the targeted audiences and potential buyers. The present marketing plan is developed for promoting the application of TUI richest known as TUI Fly. The application will offer is ease and comfort to customers as we can indulge in spontaneous booking and check-ins through it. Along with it the application will also provide other benefit to the customer such as appropriate in flight engagement and several personalised entertainment and streaming services. 9
STRATEGIC OBJECTIVES ď‚·The firm is planning to enhance its customer base by 10% after 10 months from the launch of there application. ď‚·To achieve a rise of 8% in profitability at the end of six months after executing the application in the marketplace. ď‚·To increase customer retention ratio by 15% at the end of the year once the application has introduced and started flourishing. OFFERINGS The organisation TUI offer several and different range of tour packages to different types all categories of customers through its booking website and several booking outlets the company has established in different areas where it operates. However, the application TUI Fly which is being introduced would help customers and all potential buyers to directly book the packages by using digital media and gain a personalized service experience preferences and purchasing history if any. Along with it the application is also helpful in in enabling customers to self check in and bookings through which the notion of long queues at the airport and other service areas can be e eradicated easily offering comfort and flexibility to people (Xesfingi and et. al., 2018). TARGET MARKET For establishing and understanding about the target market of the organisation belonging to any industry and for this plan TUI the STP that is segmentation, targeting and positioning model is used. ď‚·Segmentationis a process through which market is divided into several groups and parts based on certain characteristics. TUIhave divided its market through geographical and demographic segmentation strategies. Under geographical segmentation the company divided the market on the basis of locations. Under demographic segmentation the company divided its market on the basis of demographical characteristics such as gender, age and income of the individual. ď‚·Targetingis the second stage which is supported by segmentation process as from the specified segments in the above stage the form would be targeting general customers of urban areas of the United Kingdom initially have income level of more than ÂŁ1000. ď‚·Positioningis the process of placing the product in the market by using appropriate tools and techniques. TUI Fly will be placed in the market buy online platforms as a mobile 10
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application and will be featured on the website as well as social media platforms of of the organisation for customers to get all the appropriate information and be familiar with application and how to acquire services through it. SWOT ď‚·Strengths-The company and its air travel services cover more than 150 destinations around the world offering it accessibility to larger customer base. Another strength of the entity is effective diversity in its product and services that are preferred by customers. ď‚·Weaknesses-The biggest weakness of aTUI is its in appropriate organisational structure which limits its expansion in context of product segmentation. Another weakness is company has a very ineffective and weak demand forecasting system. ď‚·Opportunities-The present opportunity in front of TUI is the rise taking place in digitalization amongst millennials and enhancement of travel and tourism industry on a very rapid pace (Almeida, 2017). ď‚·Threats-The first and foremost thread which is being faced by TUI is increasing competition within the industry and uncertainties caused by the unstable and an ethical political environment of United Kingdom. M4. Produce a detailed, coherent, evidence-based marketing plan that applies the marketing mix to meet marketing objectives for a travel and tourism organisation. MARKETING MIX ď‚·Productis the new application which is being developed that is known as TUI fly there as the strategy behind the product is of innovation. Digital technologies and tools are used to assess the needs of customers and also to provide them a solution through it. ď‚·Priceof the product that is the services which will be provided to customer through the application on their mobile phones will be accessible at premium rates due to features of High quality services and personalized experiences. ď‚·Placereflects upon the distribution channel which will be used by TUI to make its product accessible to customers. The company would be using PlayStore and istore to ensure that each potential customer gets the access to the mobile application of the brand. ď‚·Promotionis advertisement of the new offering and TUI have its major focus on the form for promoting the application through social media and digital marketing platforms like Instagram, YouTube and Facebook. 11
ď‚·Peoplerefers to employees of Vine where the company have established new are in the team to research areas of effectiveness within the application and also have engaged in several training sessions for stimulating the efficiencies and competencies of existing people(Proctor, 2020). ď‚·Processinvolved in building the application effectively by using technologies like artificial intelligence and automation. Moreover, repetitive testing is also adopted by the form for ensuring the best results and effective application development as per the required standards. ď‚·Physical Evidencein regards to the application will be reflected by its characteristics and its user friendliness because it features as through the application each step towards the acquisition of services would be guided in order to enhance effectiveness experiences of the user and the new offering(Campos,Pinto andScott, 2019). MARKETING BUDGET PARTICULARSIIIIIIIVV Start-Up Capital540011000124501303017140 Investment43007800550044658636 TOTAL970018800179501749525776 MARKETING OUTLAY Marketing6500780069001270013660 Publicity88001210099001050012200 TOTAL1530019900168002320025860 MONITORING There are a number of measures and techniques available for measuring and monitoring the marketing plan and its results. The chosen and one of the most effective method for TUI is KPI that is key performance indicators. These are the factors which indicate as to whether the plan and the determined steps are working according to the state standards or not. There are several number of specific indicators such as occupancy rate of the airlines, number of customers 12
acquiring the services, traffic on the application, profitability of the company and others (Liasidou, 2018). CONCLUSION From the above report it is summarised that marketing is an essential function of entities. The discussion conducted above includes analysis of different concepts related to marketing such as roles and responsibilities of the function which helps the business in assessing their respective tasks in regards to the marketing environment where the company is running its operations. Moreover, a comparison is conducted between the marketing mix elements of the organisation in order to understand the tactical approaches adopted by the business for dealing competitively in the marketing environment. Furthermore a strategic marketing plan is developed which helps in constructing a pathway for marketing team to construct the most significant brand image of the offerings of the entity in the respective marketplace. 13
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REFERENCES Books and Journals Almeida, A. C. A. D., 2017.Rural tourism: what is the influence of SPA as a decision factor in the accommodation choice?(Doctoral dissertation). Bai, X., Hung, K. and Lai, D. W., 2017. The role of travel in enhancing life satisfaction among Chinese older adults in Hong Kong.Ageing & Society,37(9), pp.1824-1848. Campos, A. C., Pinto, P. and Scott, N., 2019. Bottom-up factors of attention during the tourist experience: an empirical study.Current Issues in Tourism, pp.1-23. Hooper, G. and Lennon, J. J. eds., 2016.Dark tourism: Practice and interpretation. Routledge. Khare, A., Dixit, S. and Sarkar, S., 2020. Antecedents to Online Travel Purchase: Role of NetworkBenefits,PilgrimagePackages,Interactivity,TrustandCustomer Reviews.Journal of Quality Assurance in Hospitality & Tourism, pp.1-26. Kubanska, S., 2017.An Investigation Into The Motivations Of Visitors When Choosing A City Shopping Break Destination: A Case Study Of Cardiff(Doctoral dissertation, Cardiff Metropolitan University). Liasidou,S.,2018.Unveilingthepotentialsofwinetourism:thewayaheadfor Limassol.Journal of Place Management and Development. Pappas, N., 2017. Brexit Referendum Influence on Londoners’ Overseas Travelling. Plantinga,F.,2017.ThePerceivedImageofHelsinkiasaTouristDestinationinThe Netherlands. Proctor, T., 2020.Absolute Essentials of Strategic Marketing: A Research Overview. Routledge. Rahmiati, F. and et. al., 2020. Examining the trip experience on competitive advantage creation in tourism. Rasulovich,Z.N.andet.al.,2019,November.InformationSecurityIssuesForTravel Companies.In2019InternationalConferenceonInformationScienceand Communications Technologies (ICISCT)(pp. 1-4). IEEE. Sotiriadis, M., 2018. Entrepreneurship and Entrepreneurs in Tourism'.The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality. Emerald Publishing Limited, pp.3-17. Walker, T. B. and Lee, T. J., 2019. Contributions to sustainable tourism in small islands: an analysis of the Città slow movement.Tourism Geographies, pp.1-21. Xesfingi, S. and et. al., 2018. Visitors’ satisfaction in Dubai and pre-trip destination image. 14