Marketing in Travel and Tourism

Marketing in Travel and
Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Core concepts of marketing in travel and tourism sector......................................................1
1.2 Impact of marketing environment on individual travel and tourism business......................2
1.3 Factors affecting consumers motivation and demand in travel and tourism sector..............3
1.4 Principles of market segmentation and its uses in marketing planning................................4
TASK 2............................................................................................................................................5
2.1 Importance of strategic marketing planning.........................................................................5
2.2 Importance of marketing research and market information to managers..............................6
2.3 Influences of marketing on society.......................................................................................7
TASK 3............................................................................................................................................8
3.1 Issues in product, price, place elements of marketing mix...................................................8
3.2 Importance of service sector mix elements to travel sector..................................................8
3.3 Application of concept of total tourism product...................................................................9
TASK 4..........................................................................................................................................10
4.1 Integrated nature and role of promotional mix...................................................................10
4.2 Integrated promotional campaign for travel and tourism ...................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Concept of marketing is identifying the want and need of the targeted and segmented
group. It is very important for the company in order to achieve maximum amount of capital by
satisfying client’s requirement. Along with them, tourism means to render effective services to
those visitors who are take leave for the short duration from where they really live (Travel &
Tourism Marketing, 2018). Thus, travel and tourism is one of the growing and most competitive
sector spread all over the world (Crouch, 2012). This industry is mainly dependent on execution
of marketing principles in an effective and systematic manner. In present assignment, given
organisation is First Choice which is a multinational tourism industry headquartered in Germany.
They own travel agencies, cruise ships, airlines, hotels, retail stores and many other. There are
mainly two destinations such as Spain and Turkey, these are beautiful and attractive places for
the visitors to travel. This report determined about principles and concepts of marketing and its
role as a management technique. Use of promotional mix and duty of marketing mix in the
tourism industry also discussed in this assignment.
TASK 1
1.1 Core concepts of marketing in travel and tourism sector
Marketing is about identifying the basic requirement and wants of the customers towards
business products and services. It is an effective process which assists an enterprise to recognise
and anticipate the needs of its segmented and targeted audience. The core concept of marketing
is to fulfil demands and needs of clients by providing quality products and services. As an
assistant marketing manager of TUI group, there are mainly two destinations such as Spain and
Turkey which are offered to visitors for visiting there. It is not possible without identifying
preferences and wants of customers (Dasgupta, 2011). After this, business develops various
strategies and policies as a better plan of marketing that supports the workforces to exist with the
core components of marketing mix such as place, promotion, product and price. There are some
core concepts of marketing which are determined as below:
Customer needs: First Choice set the first priorities in order to make any kind of
package. Generally, two types of groups; for family trip and for business purpose are there. With
the help of effective strategy marketing is done; it assists in rendering new offers to large
numbers of clients which fulfil customers’ needs at large.
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Service or products: It is the main and essential concept of marketing which is followed
by each and every company to maximise their sales and revenues. As duty of marketing manager
is to keep entire things or strategies in mind while proper planning. Company offered various
reliable services to the visitors such as travelling by cruise or bus, facility of luxury rooms,
reasonable prices to seize the attention of large number of customers etc.
Exchange process: It is identified as an effective process in between TUI and its clients
where the customers are paying money for rendering the services or products by business as well
as satisfying his requirement by them.
1.2 Impact of marketing environment on individual travel and tourism business
Marketing environment is an effective combination of internal and external factors that
effect on business operations (Garín-Muñozand and Pérez-Amaral, 2011). With the help of these
elements, an enterprise easily understands about their micro and macro elements. Both factors
highly influence the working and functioning of travel agencies. These include some points
which are determined as below:
Internal environment: These factors are controlled by the company in an effective and
systematic manner. Different chances and variation which occur within an organisation are
known as internal factors. In First Choice holiday package, this environment considers
consumers, intermediaries, competitors, suppliers etc. some of these are determined below:
Competitors: These are the part of external environment but they highly affect inside the
business. If challengers offer such sensible tour offers to the clients, TUI may lose its target and
well-built customers so, as a marketing manager, responsibility is to have understanding
regarding the market and modifying their offers according to new trend.
Intermediaries: These are identified as facilities which are provided by the travel and tourism
industry to their customers (Goeldner and Ritchie, 2012). They render transport, hotel services
like different kind of room, dinning, sensible prices, clubbing etc. All these act as intermediaries
in between First Choice and its clients that attract the visitors.
External environment: These factors are not easy to be controlled by company because
these are present outside the organisation that effect on business operations. Threats and
opportunities occurred outside the business are called as external factors. All sudden variation in
the functioning and activities of the company is due to some aspects like changes in technology,
society, destinations, taste, fashion and many other.
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Technology: In the scenario of technology advancement, the company gets influenced.
Entire change information or data on online is not ingress by the public easily. Large number of
person still does not understand about how to operate technology. Thus, it highly affects business
functions and operations.
Demographic: It is a part of factor that includes variation in the trends and destinations.
By these reasons, customers are highly influenced which result is affected on organisation
strategy or policy. First Choice provides various packages of Spain and Turkey. Therefore, it
should be done that variation is automatically complete in tour packages are reasonable or not in
a specific place if they are according to the client's requirement them only profited to that
destinations.
1.3 Factors affecting consumers motivation and demand in travel and tourism sector
By evaluating the update of motivation factor in the travel and tourism industry, the
desires and needs of the clients are predicted. These assist in developing effective tour packages
of the visitors and arranging for their marketing. There are some factors that effects on
motivation such as personal, social and emotional (Hahm and Wang, 2011). Some other aspects
such as government policy like fiscal and monetary that highly influence on business operations
and functions of First Choice. Any changes in the currency of country also impacts on the
profitability and sales of the tourism sector. From the same, any modification in such factors
effects on tourism demand which are determined as below:
Model of consumer behaviour: This framework includes some points such as loyalty,
psychology and sociology. These are described as below:
Loyalty: Under this, some customers are loyal towards the organisation and stick on the
single products or services. Clients who are satisfied or contented by the tourism products which
are offer by First Choice. So, trust of the customers on this business is good and prefers such
packages.
Psychology: It is identified as a study of human mind and its functions that highly effects
on its behaviour. In this, mind-set of the customers about business services, products, place and
process highly effects on its motivation (Hall, 2013). So, to fulfil the consumer requirement and
to finish them for taking to other company, First Choice provides new offers at reasonable prices.
Sociology: It is another part of consumer behaviour model that is identifying the buying
trends of customers. In dynamic marketplace, different challengers exist with the innovative
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product or services and trying to persuade that they are providing the best. Thus, customers are
highly influenced and they try to prefer another brand.
Identification of consumer motivation: There are some points which are briefly determined that
highly effects on consumer behaviours. These are described as follows:
Effects on consumers decision making process: There are some reasons which are
highly satisfy and motivate customers on their specific decision about buying the products such
as flexibility, quality and quantity of goods or services and many others from the same brand
next time (Hall and et. al., 2012).
Effects on consumer conflict and misunderstanding resolution: After fulfilling the
requirements of customers, major motivation remain is to encourage consumers to get out from
the situation of conflict with themselves of purchase the product. Suppliers face situation of
confusion and they supply identical products.
1.4 Principles of market segmentation and its uses in marketing planning
Market segmentation is identified as an effective process of classifying a marketplace of
potential clients into segments or groups which is based on various characteristics (4 types of
Market segmentation and how to segment with them?, 2018). This classifications developed are
composed of customers who will react similarly to strategies of marketing and who share traits
like locations, needs or interests. Market segmentation is classified into four parts which are
determined as below:
Geographic segmentation: This part assists the business entity in order to classify market
as per the geographic criteria and attract clients accordingly (Hays and et.al., 2013). It is highly
used by TUI Group for example: First Choice renders its new tour package to Spain and Turkey
chiefly to United States based individual.
Behavioural segmentation: It is another classification of market which is mainly based
on the basis of customer’s attitude, behaviour, loyalty status and knowledge towards services or
products which are offered by company. For example: First Choice can target its potential and
brand loyal audience first to take innovative and effective package.
Psychographic segmentation: Under this, market is classified as per the psychology,
interest and lifestyle of client that are highly effects on them to make buy. For example: First
Choice provides high end services or new products through Psychographic segmentation which
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assist them in reaching those clients who are ready to purchase luxurious or comfortable
services.
Demographic segmentation: Under this, market is classified as per the gender, age,
education and income level of customers (Xiang Magnini and Fesenmaier, 2015). Thus, business
can reach various customers regarding the same. For example: First Choice can provide
adventure tour package for youth of age 19 to 25 and a moving journey to historical destinations
for older above 41 to 61.
TASK 2
2.1 Importance of strategic marketing planning
A successful and accurate strategy helps the business entity in order to satisfy needs and
wants of customers as well as earn maximum amount of profit in given time period. It is
necessary and beneficial because it provides various advantages or benefits to the enterprise.
Further, strategy planning identifies and evaluates weakness and strength of company in its
external affairs or business operations. As a marketing manager of First Choice, motive is to
create effective scheme to carry out various packages for visitors (Huang and et.al., 2011). It
fulfils the targets and objectives of an enterprise after keeping some things in its mind. Marketing
plan of First Choice holiday is chiefly based on different aspects which are determined as below:
SWOT: It is one of the main and planned analysis which is apply by each and every
organisation. With the use of this model, business entity evaluates its strengths weakness, threats
and opportunities. All these are highly essential for the business in order to make effective
strategy. In this, First Choice can acquire from its experience regarding their negative and
positive of the company and plan for the innovative trends which are adopted in the enterprise.
Tourist area life cycle: TALC (Tourist Area life cycle) determines regarding the specific
place that always develops the confusion for the client. In this, business entity never bring out
entire details regarding the particular area which in the locations, city and many other
destinations. These are identified as an effective process which is more essential to bring it to the
audiences (Huang and et. al., 2013). Tourist Area life cycle is a small academic framework
which defines entire details about the site seeing destination, hotels, destination and an
investigation by the marketing manager is to be completed.
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Boston Matrix: It is another tool to evaluate the product or services analysing the
priorities for developing investment and changes of growth. While creating an innovative
strategy, the organisation prefers the instant scenario. First Choice applies such matrix to
determine various tour packages.
Ansoff's Matrix: It is also important and the best tool for the organisation to identify the
previous destination and products; this has more power to achieve the growth and tries to seizure
the new markets for achieving development.
Product life cycle: It is another important part of the Travel and tourism industry that
identifies the product life cycle (Leeand and Law, 2012). It supports the travel and tourism
industry in attaining the maximum advantages over its clients by rendering them the various
modifications in the places and products (Product Life Cycle, 2018).
(Source: Product Life Cycle, 2018)
2.2 Importance of marketing research and market information to managers
Marketing information is refers as an main information which are beneficial and useful
for the development and progress of company. It is applicable with the assistance of market
research which is completed by the marketing manager and professional team. Research is
mainly based on customer’s needs, product, services, production and sales and the latest trends
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Illustration 1: Product Life Cycle

of market and customers (Li and et. al., 2011). Marketing research is very important for First
Choice and its manager to conduct them and analysis basic needs and wants of clients about tour
packages at Spain and Turkey. Along with them, large numbers of the challengers are available
in marketplace who renders similar services and products to the customers. It is understandable
with the help of market research so that referred firm should try to improve their service and
product’s quality and at the same to provide it at reasonable price.
First Choice recognises that market the information and research about market is more
essential for retaining the services and product quality. Research is beneficial and important for
the organisation which assists in getting entire relevant data regarding the marketplace. In this,
business entity applies different ways such as occupancy and visitors survey. For example: First
Choice uses market survey in order to identify trends of markets and needs of customers
regarding services and products (Medlik, 2012). Therefore, company understands about this and
they increase their product quality which results in higher profitability.
2.3 Influences of marketing on society
Marketing is very essential and important process which effects on business operations in
negative and positive manner. It assists the organisation in recognising the powerful and loyal
customers in the marketplace and creates them their their other target for maximising the amount
of capital. Positive effect of marketing on society supports the business operations in meeting the
basic needs and wants of customers (Xiangand and et. al., 2015). There are different professional
team those retains on inspecting on the different sector and their effects on the community. It
assists in identifying the relationships between demand and supply of products only through
maximising the knowingness in the community.
On the other hand, marketing has negative effects on the society in certain ways such as it
leads to the money wastages. In travel and tourism industry, society gets the support from the
marketplace by rendering various kinds of tour packages and destination such as Spain and
Turkey. It highly effects on the society and its large number of person who live in such
destination through advertisements (Mok and et.al., 2013). It is role and responsibility of the
person to recognise that it would affect the community in negative way by transferring different
kind of wrong message. Mainly, marketing makes the high price of products that highly
influence business operations and functions negatively.
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TASK 3
3.1 Issues in product, price, place elements of marketing mix
Issues in product, price and place
Name: XYZ
Date: 12th April 2018
Marketing mix is one of the main and essential techniques of the company. It is a type of
research which is completed by the business managers or marketers in order to identify the
product and their reputation in marketplace. There are different issues in place, price or
products which are identified as below:
Product: It is one of the main element of marketing mix which is provided by the company to
their customers at reasonable price. With the help of this aspect, business entity easily satisfies
needs and wants of clients. Thus, First Choice renders intangible facilities to its potentials
audience. Since, an enterprise is producing the innovative journey package, summer 2019 to
Spain and Turkey. The innovative package 2019 is in preceding stage which bring that
organisation can charge maximum prices in first and earn large amount of profit. However,
same kind of goods and services can be provided by challengers at low price and effect the
services demand of enterprise.
Price: It is identified as amount of product which is set by the company as per the demands and
needs of customers. From the same, business can change its prices according to product life-
cycle. Further, First Choice can apply market skimming pricing strategy which enable firm to
charge more amount of money during initial organise of services. One of the main issues which
can be faced by company is that different clients may not buy the maximum priced package.
Further, business entity renders low cost services in Spain and Turkey that can affect the
business functions.
Place: It is defined as a place where different services are provided by the organisation. Further,
First Choice can create its central areas like airport, railway and many other to ensure suitability
to clients thereafter, Spain and Turkey are facing invariable threat of radical attacks etc.
3.2 Importance of service sector mix elements to travel sector
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Importance of service sector mix elements
Name: XYZ
Date: 12th April 2018
All components of service sector mix are essential for firm in tourism sector. Besides 4
elements of marketing mix, that is, product, price, place and promotion, there are 3 other P's
that involves in service marketing mix. These are:
Process: It refers to the means through which service is delivered to consumers. In case of TUI,
it is necessary to build hassle free services. This is also crucial that delivery should be effective
without compromising in quality. For this, administrators can take assistance of service
blueprint which facilitates in setting priorities of offered service.
People: It includes individuals who interact with customers and offer them quality
services during sales process. The manner in which manpower behave with consumers assists in
defining and developing loyalty of customers towards company. People are very essential
aspect in service sector.
Physical evidence: Services that are offered by tourism company are of intangible
nature. To build and develop loyal consumer base, addition of tangible elements in service is
very essential for company. In travel and tourism sector, physical features can be hotel where
visitors stay, different service tokens, type of offered food to them etc. This component can be
utilised as a factor of differentiation by TUI.
3.3 Application of concept of total tourism product
Application of total tourism product
Name: XYZ
Date: 12th April 2018
Total tourism products can be identified as an effective activity in which various companies
who are working in travel and tourism sector can complete both secondary and primary
requirement for customers. Needs of visitors are fulfilled when all trips of tourism involve in
order to visit various destinations external the residence. There are some needs of visitors which
are determined as follows:
Primary: In this, they highly require motivation for making an interesting journey with the
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motive to satisfy them.
Secondary: In this, needs of the clients is mainly related with products, places, services and
many other.
First Choice plans an effective tour package, since 2019 in Spain and turkey. In this, role and
responsibility of manager is to provide quality products and services to the customers at
reasonable price. Product mix have different characteristics which are determined as below:
Mix of tangible and intangible goods: First Choice plan tour package at Spain and Turkey for
the visitors to visit there. Company provides tangible and intangible goods such as cars, flights,
room facility, food and many others.
Product development: It is one of the main and important factor that assists the business entity
in order to make product quality as per the needs of customers.
Core product: First Choice plans to offers tour package at two destination such as Turkey and
Spain.
TASK 4
4.1 Integrated nature and role of promotional mix
Promotional mix: It involves disseminating information and data regarding a product
line, company, brand or product (Molz, 2012). It is one of the main and essential tool for the
company in order to introduce their products and services in marketplace and to the customers.
Further, it assists in the achievement of higher growth and success which results is maximisation
of sales. It is essential for First Choice to build its goodwill in the mind of customer's for
maximising the profit. As a marketing manager of company in Piccadilly, different kinds of
promotional mix is evaluated, it is used for making effective strategy that assists in earning
maximum advantages or profits for the enterprise.
Advertising: It is an essential process of advertising services, goods or ideas of the
organisation through the mass medium (Morrison, 2013). In order to provide different
information about Spain and Turkey destination to the visitors, company applies print
advertisement and many other on TV., Radio, Catalogues, direct mails, brochures, banners and
web page.
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Sales promotions: It is another essential tool which helps business to increase their sales
and earn maximum amount of money. This supports the enterprise in getting the outcome from
its wholesalers and retailers. It maximises the accessibility of the effective products and services.
First Choice uses this tool for offering their tour packages in the end of the period.
Direct marketing: It is another important tool which assists the travel and tourism
industry in reaching customers through advertising. First Choice uses different channels such as
street advertising, catalogue distributions, promotional letter etc. Company sends letters and
emails for inviting their targets and loyal clients to inform regarding new offers.
Public Relations: First Choice having better image and goodwill in marketplace. It is
also used by the organisation in order to promote their new offers, products and services to the
customers (Moutinho, 2011). In this, they use different medium such as radio shows, newspapers
and many other.
4.2 Integrated promotional campaign for travel and tourism
Integrated promotional campaign: This is the best medium in which various activities are
included such as digital promotion, direct marketing, emails in store advertisement and different
level of promotional activities. With the help of this tool, business entity provides all necessary
information to the customers in an effective and efficient manner.
First Choice has announced different marketing campaign to maximise their sales and
profits by providing quality products and services to the customers at reasonable price (Truong
and Hall, 2013). In order to emphasize the betterment of the organisation and the administration
wanted to transmit this to different people. Business entity had selected the logo which is called
First Choice and which is innovated with the purpose to promote maximum visitors to come up
and travel the particular destinations such as Spain and Turkey. The organisation was concerned
with providing quality goods and services to the customers at affordable prices. However, the
main purpose of this campaign is innovating an effective or new trend, it is called “Bleisure”
which consolidated both types of activities such as leisure and business (Xiang and Pan, 2011). It
is mainly emphasised on new kind of social or physical phenomenon and transferring the group
together at particular level. The communication information was emphasised on blurring the
relation between leisure and business for adopting better solutions which have emphasis on
rendering the clients a never before occurrence.
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CONCLUSION
From the above mentioned report, it can be concluded that marketing is one of the main
and essential part of each and every business’ success. In order to encourage large number of
visitors for visiting at specific destination such as Turkey and Spain, First Choice uses different
tools and techniques in an appropriate way. They use marketing principles, management tool,
7P's of marketing mix and different promotional mix. All these highly attract customers to visit
at specific locations happily. Further, it turns in the success and development of company.
Advertisement, direct selling, public relation and many other are essential tools which are used
by the organisation with an aim to provide relevant information regarding tour packages to the
customers in an appropriate manner.
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