Market Segmentation Techniques in Travel and Tourism

The provided assignment is a comprehensive compilation of research articles and resources related to market segmentation in the context of travel and tourism. It includes journal papers, books, and online sources that explore various segmentation techniques such as product life cycle, demographic, geographic, and psychographic segmentation. The assignment also provides information on how to segment markets using these techniques and their applications in the tourism industry.

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............................3
TASK 2............................................................................................................................................4
2.1 Importance of strategic marketing planning.....................................................................4
2.2 Importance of marketing research and market information to managers.........................5
2.3 Influences of marketing on society...................................................................................6
TASK 3............................................................................................................................................7
3.1 Issues in product, price, place elements of marketing mix...............................................7
3.2 Importance of service sector mix elements to travel sector.............................................7
3.3 Application of concept of total tourism product...............................................................8
TASK 4............................................................................................................................................9
4.1 Integrated nature and role of promotional mix.................................................................9
4.2 Integrated promotional campaign for travel and tourism.................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Tourism is refers as the travelling of people for their pleasure or business purposes. The
scope of tourism industry is wide which includes diversified businesses. It is the duty of the
government of country is to make tourism activities sustainable as they have huge contribution in
the development of economy and society. There are large number of challenges are faced by
tourism industry which impacts their ability is to accomplish their targets regarding welfare of
human beings and attainment of sustainability in their operations. The different aspects which are
need to oversee to attain the goal of sustainability includes focus on economic opportunity,
enhancing quality of life and protection of the culture and national heritage of country. This
report is based on First Choice which is a part of TUI. This assignment is divided into different
parts which includes core concepts of marketing , impacts of marketing environment and
principles of market segmentation. Significance of strategic marketing planning and issue in the
marketing mix, it is also determined in this report. Role of promotional mix and Integrated
promotional campaign which is also shown in this projects.
TASK 1
1.1 Core concepts of marketing in travel and tourism sector
Marketing in a company is related with promotional activities, identifying trends of
marketplace, determining needs of customers, raising funds from various sources and more.
Along with this, they perform various functions in order to fulfil all these requirements in a
proper manner. In context with TUI Group, this tourist company offers special packages for two
destinations i.e. Spain and Turkey. As an assistant manager of this tourist company, it is
responsibility of such persons to use effective techniques for attracting minds of customers
towards these destinations. They need to make marketing plan which aid employees to work in a
proper manner. Along with they should use marketing mix techniques also which includes 4P’s
as place, promotion, product and price. These phases help in determining the following:
Customer needs: For any organisation, identifying demands of customers has taken as first
priority. Therefore, tourist companies used to determine what visitors are wanted to visit and
offer special kind of packages accordingly. Usually, such kind of companies divide customers in
two areas as visitors for family trip and second one who comes for business purpose. After this,
they make packages accordingly.
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Services: It is the essential part of marketing in which enterprises used to provide effective
services to customers for maximising sales and revenues. Therefore, in travel companies,
managers should provide reliable services to visitors in a proper way. It includes
accommodations like luxurious hotel, transport facilities and more along with affordable price
rates.
Exchange process: This is the most important technique in which TUI and its clients make
an agreement for making trip more better. In this process, visitors pay more than other clients to
get special services and satisfying needs.
1.2 Impact of marketing environment on individual travel and tourism business
Environment of marketing constitutes various internal and external factors that create a great
impact on business operations. Therefore, managers are needed to analyse these micro and macro
factors which affect working system also. in context with TUI, impact of these can be analysed
as:-
Internal environment: Factors under internal environment can be controlled by managers
and employers of firm. In tourist sector, it includes consumers, competitors, intermediaries and
more. Some of these elements can be described as- Competitors: Since these are exist at external environment but create impact on business
internally. Competitors used to make effective and better services in order to attract
minds of and snatch clients from each other. Therefore, managers of TUI need to make
unique strategies and offer packages in impressive style to its clients. Intermediaries: This factor has taken as facilities and accommodations provided by
tourism sector for providing better satisfaction to customers. It includes transport facility,
luxury rooms, games and more.
External environment: Factors which are out of control under industries are external factors
which create a great impact on business and profitability. Along with these elements provide
opportunities as well as threats to companies also. It includes technological changes, lifestyle and
taste of tourists, destination and more. Technology: Advancement of technology provides various opportunities to tourists and
travel industries. It helps in determining needs of customers as well as making good
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connection with them through social sites. Thus, it is necessary for TUI Group to use
latest technology and offer its services in a highly effective manner. Demographic: This part includes variation in trends and destinations due to which minds
of customers are much influenced. It affects on strategies and policies of a travel
company as it demand to make modification in them. As per present scenario, TUI Group
offers packages of Spain and Turkey destination, therefore, managers should provide
them on reasonable rates.
1.3 Factors affecting consumers motivation and demand in travel and tourism sector
Some factors which affect customers and their demand in tourism sectors are:-
Model of consumer behaviour: This type of framework includes some major points which
define the motivation level of customers such as psychology, sociology and loyalty as stated
below:-
Loyalty: In order to gain profitability, every organisation wants to get loyal customers who
retain with services for longer period of time. Therefore, TUI Group used to offer special
discounts for its loyal customers.
Psychology: It shows behaviour of human and their perceptions for particular services.
Generally, mind of customers are set for visiting a destinations, therefore, managers of tourists
companies are required to determine needs of them and provide services accordingly.
Sociology: This part also reveals the behaviour of visitors but in context with purchasing
power. They always seek to get packages of tour on reasonable rates.
1.4 Principles of market segmentation and its uses in marketing planning
Market segmentation is a special technique in which marketers of a company used to divide
customers in context with similar characteristics like status, demand and purchasing power. This
would help in determining needs of particular group as well as complete the same in proper time.
It includes four segments that are:-
Geographic segmentation: This part includes those tourists who used to travel for business
purpose in a specific area. Therefore, TUI Group used this in rendering services like new tour
package for Spain and Turkey in a high manner.
Behavioural segmentation: In this part customers are divided on the basis of behaviour,
taste and attitude. Thus, managers of TUI Group used to target its loyal customers to get services
on special discount.
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Psychographic segmentation: This section classifies people on the basis of mental or
psychological level and interest of customers who always seek to go on trip on regular basis for
personal satisfaction.
Demographic segmentation: Under this part, people are classified according to age, gender
and income level. This would help in designing packages accordingly.
TASK 2
2.1 Importance of strategic marketing planning
An effective and precise methodology help the business substance with a specific end goal
to fulfill needs and needs of clients and in addition acquire most extreme measure of benefit in
given day and age. It is fundamental and useful in light of the fact that it gives different favorable
circumstances or advantages to the undertaking. Further, technique planing recognize and assess
shortcoming and quality of organization in its outside undertakings or business tasks. As a
promoting supervisor of TUI Group, thought process is to make powerful plan is to complete
different bundles for guests. It satisfy the objectives and destinations of an endeavor in the wake
of keeping a few things in its psyche. Promoting plan of TUI Group occasion in primarily in light
of various viewpoints which are resolved as underneath:
SWOT: It is one of the fundamental and arranged investigation which is partner by every
single association. With the utilization of this model business substance assess its qualities
shortcoming, dangers and openings. All these are very basic for the business so as to making
powerful methodology. In this TUI Group can procure from its experience with respect to their
negative and positive of the organization and plan enemy the imaginative patterns which is
receive in the endeavor.
Traveler region life cycle: TALC decides with respect to the particular place that dependably
builds up the disarray for the customer. Around here substance failing to bring out whole insights
with respect to the specific territory which in the areas, city and numerous different goals. These
are distinguish as a powerful procedure which is more basic to convey it to the gatherings of
people. Powder is a little scholastic structure which characterizes whole insights about the site
seeing goal, inns, goal and an examination by the advertising director is to be finished.
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Boston Matrix: It is an another device to assess the item or administrations breaking down
the needs to develop venture and changes of development. While making a creative system the
association lean toward the moment situation. TUI Group apply such lattice to decide different
visit bundles.
Ansoff's Matrix: It is additionally essential and best device for the association to distinguish
the past goal and items this have more energy to accomplish the development and tries to seizure
the new markets for accomplishing advancement.
Item life cycle: It is another imperative piece of the Travel and tourism industry that
recognize the item life cycle. It bolster the movement and tourism industry in accomplishing the
greatest points of interest over its customers by rendering them the different adjustments in the
spots and items.
2.2 Importance of marketing research and market information to managers
Advertising data is distinguishes the whole points of interest that are advantageous and
valuable for the advancement and advance of organization. It is appropriate with the help of
statistical surveying which is finished by the advertising supervisor and expert group. Research is
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for the most part in light of clients needs, item, administrations, creation and deals and most
recent patterns of market and clients . Advertising research is critical for the TUI Group and its
administrator is to lead them and investigation essential needs and needs of customers about visit
bundles at Spain and Turkey. Alongside them, expansive number of the challengers are
accessible in commercial center who render comparable administrations and items to the clients.
It is justifiable with the assistance of statistical surveying so alluded firm should tries to enhance
their administration and items quality and at the same to give it at sensible cost.
TUI Group perceives that market the data and research about market is more fundamental
for holding the administrations and item quality. Research is useful and essential for the
association which help with getting whole important information in regards to the commercial
center. Around here element apply diverse routes, for example, inhabitance and guests review.
For instance: TUI Group utilize advertise review with a specific end goal to recognizing patterns
of business sectors and requirements of clients in regards to administrations and items. In this
manner, organization comprehend about this and they increment their item quality which result is
higher benefit. This thus will enable the organization to achieve the goals and points in better and
compelling way alongside increasing upper hand.
2.3 Influences of marketing on society
Marketing is an essential activity of a company in which marketers used various techniques
to promote brands for a company. Activities used by them sometimes create positive impact
while can affect in negative manner also depends on the same are performed. Therefore, it is
necessary for association to conduct proper method, tools and techniques for promoting services
of a company. If through promotion, number of customers are increased then it will shows
positive impact. On the other hand, if it fails in doing so and consumes much time and cost then
this will show negative impact for business of an enterprise.
In context with travel and tourism industry, marketers are needed to make a proper plan for
determining how to attract customers towards tour packages of Spain and Turkey. Along with
this, they should concern on effectiveness of cost also.
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TASK 3
3.1 Issues in product, price, place elements of marketing mix
Product, price, place of product and services
Name: ABC
Date: 24th May 2018
Marketing mix is the tool which helps to achieve goals and objectives of business. It is
important to consider market factors so they can perform activities ion better and effective. Due
to change market policies, it is essential for First Choice and then they can perform activities in
better way. Marketing factors has to be consider with following elements- Product- First choice is the brand which deals in providing tour and travel; services.
There are many customers having different factors. It is effective for achieving business
policies. There are many customers having different demands, so manager must know
what is demand of customer and then provide services. First choice has many
competitors, so they have to analyse market and then frame travelling packages. There
are many travels which are effective for industry. Price- There is much competition in tour and travel business, so it is effective for
company to achieve targets in better and effective manner. There is different prices for
launch of various travelling plans. First Choice must use policies through which they
can make their cos less and then it helps to create good image in industry. Company can
give customised services through which they can get profits.
 Place- This company is one of the best an d specific. It is essential for them to approach
correct resources through which they can apply resources in better and effective way.
There are many places which are included in list of travel destination. It is important to
perform activities in better and effective way. Due to change in policies of company,
they can achieve targets in better and appropriate manner.
3.2 Importance of service sector mix elements to travel sector
Importance of service sector mix elements
Name: XYZ
Date: 24th May 2018
All element of service sector mix which are essential for the travel and tourism sector in order
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to attract large number of customer. It includes 4p's namely product, promotion price and
place. All these are important for the hospitality industry to innovate their tour package to the
tourists.
Process: It is important part which is used by the company in order to deliver their products and
services to the clients. In case of First Choice, it is more necessary and beneficial to develop
hassle free services. Thus it is crucial for the company because it define that delivery should be
impressive without yielding in quality. For this, managers can take help of service pattern
which assist in setting precedence of content service.
People: It consider individuals who act with buyers and offer them better service quality
during the sales process. It is main role of the tour operator to provide effective products and
services to the visitors who are interested in visiting the different destination in an effective
manner.
Physical evidence: It is another important part of the hospitality industry to maximise
their profitability and effectiveness in an effective and efficient manner. In this business
manager is try to provide healthy atmospheres to their visitors and customers which help them
to attract wide number of customers in the organisation.
3.3 Application of concept of total tourism product
Application of total tourism product
Name: XYZ
Date: 24th May 2018
Total tourism products that can be determine as a important activity and process in which
different business who are working and functioning in hospitality sector can absolute both
secondary as well as primary demand for customers. There are various needs and wants of the
customers which are determined as below:
Primary: In this first requirement of the employees is mainly motivation because with the help
of this they easily do their all work and activities easily.
Secondary: In this needs and requirement of the visitors is mainly based on marketing mix such
as product, price, place, promotions and many other.
TUI Group plan and design an effective package for the tourist, since 2019 in Spain and turkey.
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Thus it is the role and responsibility of tour manager in order to provide better service and
products to the tourists at affordable price. Product mix have various aspects which are
explained as below:
Product development: It is identify as main and essential factor which support assist the First
Choice in order to create and develop products and services as per the requirement of visitors.
Core product: First Choice plans and design tour package at two main and attractive places
such as Turkey and Spain.
TASK 4
4.1 Integrated nature and role of promotional mix
Promotional mix: This technique gives most important process for promoting new services
at marketplace in a high qualitative way. It includes proper information and data including
product line, brand and more. It helps TUI Group in building its great image in mind of tourists
which further aid in gaining high profitability.
Advertising: This method is also essential for adverting offers, products or services among
travellers in vast manner. It includes sources like T.V., Radio, e-mails, brochures and web page.
Sales promotions: This tool is also useful in increasing sales of a company which aid in
earning more and more profit. In this process, TUI Group used to make good interaction with
travel agency who provides large number of customers for this company.
4.2 Integrated promotional campaign for travel and tourism
Integrated promotional campaign: It is a best method of promoting services and offers of
a companys. It includes various activities like digital promotion and marketing, emails and SMS
etc. These activities help in providing proper information to customers in an effective way. In
context with TUI Group, its marketing manager has organised campaign for increasing sales and
profitability in a desired way. They have made a unique logo of this company in order to make
differentiation in services like for travelling particular destinations such as Spain and Turkey.
Along with this, the main purpose behind campaigning is to make innovation in services which is
called “Bleisure” in tourism sector. It includes providing tour facilities by consolidated with
leisure and business.
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CONCLUSION
From the above mentioned report, it can be concluded that travel and tourism industry is
one of the growing sector across the world. There are different tools and techniques are used by
the company in order to promote their holiday package in Spain and turkey. In this an
organisation use marketing mix promotional mix and many other essential concepts. All these
are highly essential and beneficial for the enterprise to maximise their strong image in
marketplace. Hospitality industry also used marketing principles which help business entity to
attract large number of customers and increase their profitability ratio. As a promotion to tour
package, travel and tourism sector apply different kind of promotional channels such as
advertisement, public relation, personal selling and many other. All these are fundamentally
support business to increase customer response.
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REFERENCES
Books and journals
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Dasgupta, D., 2011. Tourism marketing. Pearson.
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tourism marketing. Tourism Management. 36. pp.490-501.
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Li, X. R. and et. al., 2011. When east meets west: An exploratory study on Chinese outbound
tourists’ travel expectations. Tourism management. 32(4). pp.741-749.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Molz, J. G., 2012. Travel connections: Tourism, technology, and togetherness in a mobile world.
Routledge.
Morrison, A. M., 2013. Marketing and managing tourism destinations. Routledge.
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Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Truong, V. D. and Hall, C. M., 2013. Social marketing and tourism: What is the evidence?.
Social Marketing Quarterly. 19(2). pp.110-135.
Xiang, Z. and Pan, B., 2011. Travel queries on cities in the United States: Implications for search
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ONLINE
Travel & Tourism Marketing. 2018. [Online]. Available through. <http://www.ttmworld.co.uk/>.
4 types of Market segmentation and how to segment with them?. 2018. [Online]. Available
through. <https://www.marketing91.com/4-types-market-segmentation-segment/>.
Product Life Cycle. 2018. [Online]. Available through.
<http://www.assignmentpoint.com/business/marketing-business/product-life-
cycle.html>.
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