Effective Communication and Roles in Partnership Working

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MARKETING IN TRAVEL
AND TOURISM
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TABLE OF CONTENTS
Introduction..........................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Discuss the core concept of marketing for travel and tourism sector........................................3
1.2 Impact of marketing environment on functioning of Thomas Cook and tourist destinations.. .4
1.3 Factors affecting consumer motivation and demand in travel and tourism sector.....................5
1.4 Principles of market segmentation and it uses in marketing planning .....................................5
TASK 2.................................................................................................................................................6
2.1 Importance of strategic marketing planning for Thomas Cook.................................................6
2.2 Discussing the relevance of marketing research and marketing information to manager.........6
2.3 Influence of marketing on society.............................................................................................7
TASK 3.................................................................................................................................................7
3.1 Discussing the issues in product, price and place elements of marketing mix..........................7
3.2 Importance of service sector mix elements in travel and tourism sector...................................8
3.3 Applying the concept of total tourism product to individual tourism business.........................8
TASK 4.................................................................................................................................................9
4.1 Integrated nature and role of promotion mix.............................................................................9
4.2 Plan and justify the integrated promotional campaign for Thomas Cook.................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
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INTRODUCTION
Marketing is considered as one of most critical aspects that can lead every business towards the
impressive level of success. In other aspect, it can be said that it is a technique that provides effective
development and creation of various factors which are beneficial for the organizational success. It
mainly focuses on maintaining brand image, organizational culture, effectiveness of place and product
quality. It includes various innovative plans and ways that can be used by travel and tourism sector for
the effective development of tourist destinations (Smith, 2011). Marketing of tourist destination
determines new tactics and procedures for the promotion of specification of a tourist destination in all
over the world.
In the present report, learning will focus on various aspects of marketing that are beneficial for
the effective improvement in work culture of travel and tourism sector. It will have spot light on the
concepts and principles of marketing in travel and tourism sector. It will also provide better
understanding regarding the roles of marketing as a management tool in travel and tourism sector.
Learning will also provide information in the context of participating marketing mix in the operational
activities. Furthermore, it will also focus on use of various promotional mixes in travel and tourism
sector.
TASK 1
1.1 Discuss the core concept of marketing for travel and tourism sector
As per the structured study, it can be said that the marketing plays a key role in effective
development of travel and tourism sector. It facilitates in effective understanding of key needs or
expectations so that tour plans or services can be offered as per the customer’s needs. Classification of
key core concepts can be as:
Needs identification and Marketing offer: It is considered as one of most critical aspects for
every business and customer’s needs can be vary due to different perception of customers. In order to
have competitive development of travel and tourism sector, it is necessary for marketers to identify
market and customer’s needs so that products can be designed in most suitable manner (Malviya,
2005). Hierarchical needs can also facilitate business firm to understand the key needs of customers
and lead business to the impressive success. It is also essential for management of travel and tourism
firm to design product’s quality and features as per the customer’s needs and requirements.
Customer value and satisfaction: In order to make sure about the value and customer
satisfaction, it is also necessary for management of travel and tourism firm to provide services or
products as per the consideration of customer perception (Huertas, 2010). It means that Thomas Cook
must have proper determination of customer needs for enhancing the level of values and satisfaction.
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Exchange transactions and relationship: Exchange rate and direct relationship play key role in
travel and tourism sector (Alegre, 2009). In this support, it can be said that exchange rate is one of
important aspects when consumer acquires travel and tourism services at the international level. It has
been spotted that Thomas Cook charges high in respect of its services and custom based tour packages.
Marketer prospective: It is also essential for business firm to ensure that marketer prospective
should be positive in the context of product and services. It will provide strength to marketing activities
and facilitate Thomas cook to have effective development of travel and tourism activities
(Sustainability report, 2015).
1.2 Impact of marketing environment on functioning of Thomas Cook and tourist destinations
With an assistance of micro and macro environment factors, business organization can develop
tourism activities in an effective manner. Moreover, changes in micro and macro elements also have
great impact on the operational activities of Thomas Cook.
Political: It has been spotted that Edinburgh is a significant part of Scotland. It means that UK
governance and EU policies are needed to be followed by Thomas Cook while operating its business in
Edinburgh (Bharwani, 2012). For example, government of UK has increased the tax rates on service
industry or travelling activities then it will impact business of Thomas Cook in a negative manner and
may decrease organizational profit margin ratio.
Economical: UK economy and Scotland economic system is now stable that clearly indicates
that the Thomas Cook can have better opportunities in Edinburgh. Moreover, changes in UK or
Scotland economic system can impact the operations of Thomas Cook in diverse aspects (Hall, 2012).
For example: recession can force management to decrease the cost of products and services.
Social: Social perception is also one of the significant aspects and it can also influence
operational activities. For example, social group is now more attracted towards adventure and eco-
friendly tourism so that management must focus on the development of services as per the needs of
customers otherwise business may face issues (Matzler, 2003).
Technological: Thomas Cook focuses on various technological tools in order to have effective
accomplishment of operational activities. Firm is now focusing on social media tools and mobile
applications for communicating effectively with the customers.
Customer’s: It is significant for management to understand the key belief of customer so that
product and services can be designed in appropriate manner. They play a crucial role in the success of
organization as they consume services offered by company and generate revenue. It means
management need to consider it in appropriate manner.
Competitors: It is essential to understand the activities that are being performed by competitors. If
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company is not having appropriate understanding of work process then better competitive strategies
can not be designed by the management. It means the marketing actions and pricing policy of
competitors need to be analysed effectively.
Other than this, it is also necessary for management of Thomas Cook to focus on macro factors
such as industrial needs and competitors activities as it provides better understanding about various
factors that can lead business to the impressive level of success (Pesonen, 2013). Activities of
competitors can also influence the business operations of Thomas Cook in a diverse manner.
Organization must have effective consideration on competitive aspects present within UK and Scotland
in order to protect business from the functioning of various local tourism companies.
1.3 Factors affecting consumer motivation and demand in travel and tourism sector
There are number of factors that can impact the motivation level of customers in context of
Edinburgh. Classification of factors can be as Tourist places, connectivity, supportive services
availability and other factors.
Tourist destination: Edinburgh is one of most significant places in Scotland and number of
tourists or travellers are attracted towards destination to experience optimistic environment. There are
number of destinations present in Edinburgh such as Holyrood Palace, Calton Hill, Edinburgh Castle,
Scottish national Gallery, etc. (Swarbrooke, 2012). These kinds of attractive places motivate travellers
to visit Edinburgh and explore the culture and heritage of Scotland.
Connectivity: Effective transportation and better services in the context of connectivity also
motivate travellers to visit Edinburgh. Travellers from diverse geographical areas in world can easily
visit to Edinburgh by accessing airline services (Wong, 2012). These kinds of factors provide better
convenience and attract different kinds of visitors.
Supportive services availability: Hotel, food, accommodation, shopping, etc are also key
factors that motivate travellers to visit Edinburgh. It has been spotted that Edinburgh covers various
luxuries hotels and accommodation services that provide convenience and attract more and more
customers towards destination (Keillor, 2007). Easy access for shopping and other services also attract
more and more customers towards destination.
Other factors: Environmental conditions and behavioural aspects of local citizens also motivate
travellers to visit Edinburgh. Local community is very friendly and humble that enhances the level of
motivation and attracts travellers to visit destination.
Customer perception: It is necessary for management to consider purchase power and
perception of customer’s in appropriate manner. Considering this aspect, Thomas Cook divide the
customers on the basis of purchasing capacity to gain fruitful outcomes. For example, the customer
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buying power has decreased then it will impact the demand of premium hospitality services in negative
manner. It is because it will affect perception of customer in diverse manner.
Personal preference: It has been noticed that the individual preference can also impact the
demand of hospitality services. It may be in context to dislikes and values etc. For example, the guest
is more focused towards visit to India. In such aspect, he will attain services that are offered in respect
to India which will enhance demand of hospitality services in Indian market.
Economic conditions: If economic conditions are not appropriate in UK then it will impact the
development of hospitality sector. It will also decrease the trust level among people in respect to UK
hospitality services which will have direct negative impact on the demand of services.
1.4 Principles of market segmentation and it uses in marketing planning
Marketing planning and market segmentation principles play key role in the success of every
organization. It facilitates management of Thomas Cook to divide market in various sections as per the
consideration of demographic features and lifestyle of people. In order to have effective segmentation,
it is necessary for management to focus on various aspects that can impact the growth aspects
(Robinson, 2009). Segmentation process helps in marketing in order to estimate demand as well as
interest of consumer who belongs form different social back ground. Segmentation refers to division
of entire market into small divisions as per their needs, preference and interest and therefore framing
and employing strategies to target prospective customers.
Demographic and Psycho-graphic segmentation are the most beneficial sections that can boost
business of Thomas Cook in Edinburgh. Destination is mainly considered as a part of one of the
developed economic systems so number of business firms is looking forward to expand business in
Scotland (Swarbrooke, 2012). It has been noticed that while focusing on demographic segmentation
the company can have market divination on the basis of age, gender, income, education etc. In this,
company can reach different age groups, income level customers effectively. It means that
management can focus on conducting merger with various international business groups so that their
holiday and corporate needs can be accomplished in an effective manner. Moreover, products and
services of Thomas Cook are related to high price so that they can also focus on people who are
looking for premium services. In psycho-graphic segmentation, on the basis of life style, interest and
psychology etc the business firm can segment its customers. Lifestyle can be considered as an essential
factor as number of travellers visit destination as per the consideration of their lifestyle (Culver, 2006).
Principles of Market segmentation play an important role in strategic marketing planning in order to
have effective promotion of Edinburgh as a unique destination. Tourism and travel based organizations
can use lifestyle and demographic factors for the better development and present destination as a new
emerging market for leisure travellers.
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TASK 2
2.1 Importance of strategic marketing planning for Thomas Cook
It has been spotted that strategic marketing planning is one of most significant factors for every
business organization as it leads business to the impressive level of success. In support of this, it can be
said that it provides ability to develop tourism activities that can provide long term sustainability and
create effective image within the market (Culver, 2006). With an improved level of focus on the
strategic marketing planning, business organization can attract more and more visitors towards
destination which is beneficial for the effective development of travel and tourism sector in Edinburgh.
It also assists in effective determination of various internal factors that can help in overcoming various
issues and obstacles (Swarbrooke, 2012). It provides effective understanding about strengths and
opportunities that are beneficial to defeat threats and overcome weaknesses. By having an effective
consideration of strategic marketing planning the business firm can have potential to attract more and
more customers towards business. New tour package can also be designed in appropriate manner so
that goals and objectives can be accomplished effectively. Effective identification of internal
competencies can also be accomplished by having improved focus on strategic marketing.
As per the consideration of SWOT analysis, it can be said that Thomas Cook is one of the well-
established tourism firms that provides a wide range of services. Company is having effective presence
in global tourism market that helps management to reduce the impact of competitor’s activities.
Increased level of global customer base is also one of the most advantageous factors that help in
reducing the impact of competitor’s market share (Robinson, 2009). In order to have effective
development of tourism activities in Edinburgh, management can use online booking mediums as it
will increase market share and provide convenience factor. Company can also use its global customer
base to improve tourism conditions within Edinburgh.
2.2 Discussing the relevance of marketing research and marketing information to manager
In this respect, it can be stated that marketing research and marketing information are the most
significant aspects for business organization or its managers as it facilitates in effective development of
strategies that can provide long lasting advantages. It has been spotted that market research and
information gathering are the integrated activities that provide detailed examination of consumer needs
and demand with an enhanced analysis of market trends (Keillor, 2007). In addition to this, the
management must understand the market need and customer preference in respect to Edinburgh. It will
lead business to impressive level of success. The marketing research also help in determining the
loopholes of company. With an assistance of collected information, management of Thomas Cook can
have effective development of strategies that can boost business opportunities in Edinburgh market.
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Number of primary and secondary sources can be used to access information and take various
advantages.
In other aspect, it can be said that managers of Thomas Cook can easily identify current trends
of sector and needs of customers in an easy manner so that Edinburgh tourism opportunities can be
enhanced. Moreover, with an assistance of market information, manager can have effective evaluation
of diverse international visitors and quality of services in order to have effective development of
destination (Wong, 2012). Better future can also be designed by the management through
understanding the market needs of Edinburgh. Collected information also helps manager in creating
better image or awareness about destination among international market. Current level of competition
within Edinburgh also can be evaluated by focusing on market research. These kinds of factors also
have some influences on the customer selection process and decision making procedure.
2.3 Influence of marketing on society
It has been spotted that marketing activities bring number of positive as well as negative aspects
for business so it is necessary for management to understand these factors in an appropriate manner.
Positive
With an assistance of marketing activities, management of Thomas Cook can improve its
market share in Edinburgh as it provides increase in the number of visitors towards destination. It also
has direct positive impact on the GDP and economic system of Scotland which is beneficial for the
improvement in living standard of citizens (Swarbrooke, 2012). It will also create awareness among
business corporates in the context of resources available in the city so that they can expand their
business in Edinburgh. These kinds of factors are beneficial for the improvements in job opportunities
within society. It creates unique image within market that attracts more international travellers and
provide effective exposure to culture (Pesonen, 2013). '
Negative
On the other side, negative impact can be that increase in number of international visitors to
destination may influence the perception of local citizens that can impact the culture and beliefs. In
other words, it can create some negative influence on tradition and domestic cultural aspects. One of
key disadvantage can be customer preferences may influence in rapid manner which might not be
beneficial for economic conditions. It will also impact the income level and other social aspects.
TASK 3
3.1 Discussing the issues in product, price and place elements of marketing mix
Marketing mix is one of critical aspects for every business organization while designing
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products and services. It is consisted of four key factors that are essential sections of every business
such as product, price, place and promotion (Matzler, 2003).
Product: In this respect, it can be said that management of Thomas Cook must focus on
designing of its products and services as per the needs and expectations of customers or market needs.
If company will not have development of product as per the needs then management can face product
failure issues which may impact business negatively (Hall, 2012). By identifying trends and needs,
new holiday package can be developed in an appropriate manner.
Price: Business organization also needs to determine the price of products or services so it is
necessary for managers to ensure that selected price is appropriate for the targeted group as per their
needs otherwise, product acceptance issues can be faced by company. Competitive pricing policy is
beneficial for organization in order to boost business opportunities (Bharwani, 2012).
Place: In support of this, it can be said that company also faces various issues in the context of
offering convenience. It means that it is necessary for management of Thomas Cook to ensure about
location of store or branch office so that travellers can have easy access to the products and services.
Promotion: It is one of most significant aspects of marketing mix and management of Thomas
Cook must use various promotional tools that can lead business to the impressive success. In this
respect, number of communication and advertising tools can be used to create awareness regarding the
product and services (Bharwani, 2012).
3.2 Importance of service sector mix elements in travel and tourism sector
It is essential for service sector to have improved level of focus on various elements that can
boost the effectiveness of operational activities. With an improved focus on marketing mix elements,
management of Thomas Cook can have effective design of interactive strategies which can boost
organizational opportunities (Smith, 2011). Number of changes can also be taken into account as per
the examination of service sector mix. It also facilitates in ensuring that marketing campaign is
effective and it will increase sale definitely.
In the context of tourism sector, it can be said that service industry mainly focuses on key
elements such as people, package, programming and partnership. Management of Thomas Cook also
needs to focus on extended marketing mix that is classified as physical evidence, people and process.
With regard to physical evidence, organization must have effective design of brochure so that
customers can feel motivated to accomplish the services. Physical presence of tour plan must be
standardized to attract more customers. In respect of packaging, it can be said that Thomas Cook can
include all the essential services and may ensure pre planning of conveyance, food and
accommodation. It will also help in attracting more people towards firm (Hall, 2012). Customer service
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must be provided in an appropriate manner to meet the standards of provision mix. Number of
industrial standards need to be considered for effective accomplishment of goals and objectives. Call
centres must be established so that skilled workforce can provide assistance to customer service during
tour. In this respect, it is necessary for the management to focus on training and development activities
so that skilled workforce can be acquired for the attainment of organizational goals (Malviya, 2005).
Other than this, processes mean the operational activities that Thomas Cook perform while providing
services to the customers. It is essential for the management to ensure that whether processes are well
designed or not so that better services can be provided according to the client’s needs and expectations.
Company also requires partnership with various service industry organizations in order to provide
effective services such as transportation, hotels, etc. (Huertas, 2010).
3.3 Applying the concept of total tourism product to individual tourism business
As per the structured study, it can be said that tourism sector is considered as one of most
significant sectors that plays a key role in economic development. It includes number of diversified
services that boost industrial opportunities such as accommodation, transportation, local connectivity,
etc. In the respect of total tourism, product means a tour package or combination of activities that cover
all the operational activities of travel and tourism sector (Alegre, 2009). It is necessary for Thomas
Cook to develop total tour product for the effective development of opportunities in Scotland. It will
also facilitate in reflecting the enhanced level of brand image within market. Management can design
total product as per the customer’s needs or consideration of segmentation.
Total product for Edinburgh includes various factors such as:
 Air ticket in economy class.
 4 nights stay in Edinburgh.
 Continental Breakfast and food.
 Stay in three star hotel.
 Visit to local attractions (Bharwani, 2012).
 Beach activities and other tourism activities.
 Return air ticket in economy class.
TASK 4
4.1 Integrated nature and role of promotion mix
There are number of roles that hold by promotional mix as it is considered as a collective
activity that facilitates in meeting organizational goals. Classification of key elements that are needed
to be considered by management is as follows:
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Advertising: In this respect, it can be said that with an assistance of advertising activities,
business firm can create better brand recognition in the market. It will boost the sales of organization
and market share (Sustainability report. 2015). Company can advertise its products and services at
various platforms such as television, radio, newspapers, etc.
Public Relation and Personal Selling: Improved level of relationship with customers and other
supportive factors will also create better brand image and provide various advantages to the business. It
is also beneficial for the improvement in market share. It also allows sales professional to communicate
with target customers in order to build better relationship (Smith, 2011).
Sales promotion: Company can provide various offers and discounts to increase the sales of
product. Organization can provide discount on its premium products if sales ratio is low as per the
expectations.
4.2 Plan and justify the integrated promotional campaign for Thomas Cook
In order to create better awareness regarding tour package of Thomas Cook, management can
focus on integrated promotional mix. In this respect, company can use brochures distribution channel
at branch offices within UK and Scotland. Company can also focus on various online marketing
channels to promote its products and services in an effective manner. Thomas Cook can advertise its
tour package with an assistance of internet marketing and social media tools. It will create better
awareness among citizens and improve the sales of organization (Malviya, 2005). Company can also
design e-brochures so that customers can access to significant information by using their online web
portal. These kinds of activities are beneficial for the improvement in sales as well as in market share: Promotion objectives: To increase the market shares in UK and Scotland. Promotion budget: 10000 Pound Message: “Explore the best destination” Media: Online marketing channels, social media tools, e-brochures Implementation and review: Branch offices will be used to promote services and changes in
sales ratio will facilitate in evaluating the success factors. Improvement in profit margin ratio
will assist in review of promotion plan.
Activity Budget
E-brochures 2000 pound
Social media tools (facebook, twitter) 4000 pound
Online marketing tools (Email, blogs) 4000 pound
With an improved focus on integrated promotional campaign, Thomas Cook can easily improve
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its market share. This is because; online media and social media tools provides an effective reach to a
wide range of customers. It will also affect positively on profit margin ratio as social media tools and
acquisition requires less investment that will cut down the overall operational cost.
CONCLUSION
As per above study, it can be said that marketing activities plays a key role in effective
development of travel and tourism activities. Number of business organizations is using marketing
techniques in order to boost the operational effectiveness and creating better awareness among people.
In the support of this, it can be said that marketing activities and strategic actions provide ability to
develop tourism activities that can provide long term sustainability and create effective image within
the market. It has also been spotted that marketing mix also facilitates management to develop
sustainable product in order to boost opportunities.
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REFERENCES
Books and Journals
Alegre, J., 2009. Analysing the effect of satisfaction and previous visits on tourist intentions to return.
European Journal of Marketing. 43(5/6). pp.670 – 685.
Bharwani, S., 2012. Challenges for the global hospitality industry: an HR perspective. Worldwide
Hospitality and Tourism Themes. 4 (2). pp.150 – 162.
Culver, M., 2006. Using tactical intelligence to help inform strategy. Strategy & Leadership. 34 (6).
pp.17 – 23.
Hall, C. M., 2012. Safety and Security in Tourism: Relationships, Management, and Marketing.
Routledge.
Henry, C., 2006. Periscopic media tour. Strategy & Leadership. 4(34). pp. 56-60.
Huertas, M. A. M., 2010. Analysis of the opinion about economic and social impacts of golf courses in
a tourist destination. Journal of Entrepreneurship, Management and Sustainable Development.
6(1/2). pp.103 – 117.
Keillor, B., 2007. Marketing in the 21st Century: Integrated marketing communication. Greenwood
Publishing Group.
Malviya, S., 2005. Tourism: Tourism: policies, planning and governance. Gyan Publishing House.
Matzler, K., 2003. Linking travel motivations with perceptions of destinations: The case of youth
travelers in Alpine summer and winter tourism. Tourism Review. 58(4). pp.6 – 11.
Pesonen, A. J., 2013. Information and communications technology and market segmentation in
tourism: a review. Tourism Review. 68(2). pp.14 – 30.
Robinson, P., 2009. Operations Management in the Travel Industry. CABI.
Smith, T., 2011. Pricing Strategy: Setting Price Levels, Managing Price Discounts and Establishing
Price Structures. Cengage Learning.
Swarbrooke, J., 2012. Business Travel and Tourism. Routledge.
Swarbrooke, J., 2012. Leisure Marketing. Routledge.
Wong, K., 2012. Tourism Forecasting and Marketing. Routledge.
Online
Marketing Mix – The 4 p’s of marketing. 2014. Available through:
<http://www.marketing91.com/marketing-mix-4-ps-marketing/>. [Accessed on 16th January
2016].
Sustainability report. 2015. [Online]. Available through:
<http://www.thomascookgroup.com/sustainability/sustainability-report-2014/>. [Accessed on
16th January 2016].
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Thomas Cook Group plc. 2014. Available through:
<http://markets.ft.com/research/Markets/Tearsheets/Business-profile?s=tcg:lse>. [Accessed on
16th January 2016].
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