Marketing Strategies for Travel Firms

The provided report demonstrates the significance of marketing in the organization, particularly in the travel and tourism sector. By implementing effective marketing strategies, travel firms can promote their products and services globally, establishing strong relationships with consumers. The assignment highlights the importance of designing travel packages according to customer requirements, which contributes to sustaining a competitive edge in the market.

MARKETING IN TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Core concepts of marketing in travel and tourism destination..............................................1
B) Marketing environment of Scotland and its impact...............................................................3
C) Factors that affect consumer motivation and demand for Scotland as tourist destination.....4
D) Principles of marketing segmentation....................................................................................5
TASK 2............................................................................................................................................5
A) Importance of strategic marketing planning .........................................................................5
B) Relevance of marketing research...........................................................................................6
C) Positive and negative influence of marketing on society.......................................................7
TASK 3............................................................................................................................................8
A) Elements of marketing mix....................................................................................................8
B) Importance of service sector mix elements............................................................................8
C) Concept of total tourism product............................................................................................9
D) Role and integrated nature of promotional mix.....................................................................9
E) Justification of an integrated promotional campaign.............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing has become the essential part of business function, it assists in developing
strong relationship with public and supports in spreading brand image of the company across the
world (Buhalis and Foerste, 2015). It is the tool through which entity can exchange information
with consumers and can attract them towards the firm significantly. Present study is based on
promotion of Scotland as tourist destination. Current assignment will discuss core concepts of
marketing and will analyses marketing environment of Scotland (Hudson and Thal, 2013).
Furthermore, it will explain principles of marketing segmentation in order to make effective
planning for marketing of the tourist destination. Positive and negative influence of marketing on
society will be illustrated in this report. In addition, significance of service sector mix elements
will be discussed in this study.
TASK 1
A) Core concepts of marketing in travel and tourism destination
Marketing is considered as process of promoting products and services of the
organization. It is the great tool which helps in spreading brand images to mass audience and
attracting them towards the brand. Aim of marketing is to provide satisfactory products to
consumers as per their requirements and increase profitability of the business (Huang and et.al,
2013). Core concepts of marketing apply by Thomas Cook in travel and tourism destination are
as following:
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Illustration 1: Core concept of marketing
Source: (Concept of Needs, Wants, Demand in Marketing, 2017) Needs of consumers: It is considered as most important concept in which companies try
to analyse expectation of individuals. It is essential for the cited firm that to understand
needs and requirements of travellers in order to promote Scotland as tourist destination.
Fore example some people come to the place for research purpose and others come for
holiday reasons (Becker, 2016). So, Thomas Cook is required to provide products and
services as per their needs. It will help in meeting with their expectation and they will
plan to come this place frequently. Product concept: Goods and services of company ca attract mass audience towards the
place. It is the only tool through which entity can gain competitive advantage. Thomas
cook needs to offer attractive holiday packages to the visitors those who are planning to
come Scotland, it will help in gaining attention of them (Standing, Tang-Taye and Boyer,
2014). By offering transportation facilities, accommodation benefits cited firm can
promote Thomas cook as travel destination. In addition, company may provide them
hotel facilities, sea transportation booking so that more people can take interest to visit
this destination (Leung, Au and Law, 2015).
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 Exchange of needs: Thomas cook is required to collect data from customers regarding
their needs and purpose of visiting the place. Accordingly, it has to prepare its
promotional plan to encourage viewers so that they get motivated and make plan to come
to this destination (Prebežac, Schott and Sheldon, 2016).
 Develop relationship: It is most important core concept of marketing; Thomas Cook is
required to develop strong relationship with its consumers. It will support in analyzing
their needs and providing them satisfactory products and services. This is the only way
through which it will be able to attract consumers towards Scotland and it will be
promoted as tourist destination (Fernández-Morales and et.al, 2016).
B) Marketing environment of Scotland and its impact
Marketing environment consists of two major elements: Macro and Micro. Internal
environment is the factor which is related with internal working of Thomas Cook whereas
external environment is related with the outside factors those which impact on the business. Both
these factors impact on working of Thomas Cook to great extent
Macro environmental factors
 Political factor: Government of Scotland has made tough regulations for visa and foreign
customer arrival (Dickinson and et.al, 2014). It impacts on the business of Thomas Cook
because in presence of such tough policies people do not take much interest in coming to
such destinations. Furthermore, security policy also impacts on the business, government
of the place provides proper security to the visitors so that they can feel safe. It motivates
the travellers to visits this destination.
 Economic factor: It is another most important aspect which influence marketing
environment of Scotland (Martin, Rosenbaum and Ham, 2015). If economic condition of
the nation is not good then Thomas cook will not be able to conduct its operations well.
In the situation of high interest rates, tax rates demand will get minimized and people will
not take interest to come to such place. On other hand if it is low then more people will
take interest to visits Scotland. Technological factor: It is another most important external element which impact on
overall business of the Thomas Cook. Cited firm has developed its own website in which
it has given all detail about Scotland and its attractive places. People those who use
digital technologies can get attracted by this element (Hall, 2014).
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Micro environmental factors
 Suppliers: These are such people those who arrange raw material for the organization.
Suppliers provide facilities such as transportation, food, accommodation so that Thomas
Cook can meet with the expectation of consumers. By providing satisfactory services to
consumers those who are visiting Scotland, cited firm can gain their trust and can make
them loyal towards the brand (Dickinson and et.al, 2014).
 Customers: These are essential factor which can influence overall working of the firm. If
entity fail to meet with the needs of consumers then overall business of Thomas Cook
will be affected (Buhalis and Foerste, 2015).
C) Factors that affect consumer motivation and demand for Scotland as tourist destination
There are many components which impact on consumer’s motivation. These are
described as below: Cultural factor: It is considered as essential aspect which motivates the person to visit to
Scotland. People like to know about other cultures, their values and preferences. For
example, people like to visit to view its worship traditions (Standing, Tang-Taye and
Boyer, 2014). Social factor: It is another element which motivates travellers to visit Scotland. It
involves family, friends, status etc. For example, if friends have visited Scotland and they
liked this place then they will motivate the consumer to go to such place. By this way
individual will get encouraged and will plan to come to this tourist destination.
Description explains by family members and friends about the place influence the mind
of consumers and individual makes mind to visit such destination (Fernández-Morales
and et.al, 2016). Personal factor: it includes travelling for business purposes, educational purpose etc. For
example, if travellers want to get information about attractive points of Scotland then
individual will plan family holiday (Dickinson and et.al, 2014).
 Psychological factor: It is another essential component which influence motivation level
of customers. If the person perceive that Scotland is beautiful destination then individual
may get attracted and motivated to visit such place (Martin, Rosenbaum and Ham, 2015).
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D) Principles of marketing segmentation
Market segmentation can be explained as division of market into small segments. It
supports the firm in increasing market share and maximize profitability. By this way they can
target to the right person and can provide them satisfactory travel packages and services.
Demographic, behavioural, psycho graphic and geographical are four major market
segmentations. Thomas Cook uses demographic and psycho graphic segmentation in order to
promote Scotland as tourist destination (Dickinson and et.al, 2014).
Thomas cook targets the people on the bases of their age, income, purpose to travel etc. It
supports in understanding their needs and fulfilling their requirements as well. For example, if
person wants to go on family holiday then cited firm will offer them all accommodation
facilities, transportation, hotel arrangements, etc. It makes the journey for the person more
comfortable. Market segmentation helps Thomas cook in marketing planning and its expansion
to great extent. It supports in minimizing risk of business as well. It helps in identifying specific
needs of particular segment consumers so entity offers then same facilities so that future
uncertainties can be avoided (Fernández-Morales and et.al, 2016).
TASK 2
A) Importance of strategic marketing planning
Strategic marketing planning plays significant role in attracting travellers towards the
destination. It is the systematic process in which managerial level persons make effective
marketing strategies so that needs of consumers can be fulfilled. Through strategic marketing
planning Thomas Cook collects information about the needs of travellers and such travel
packages which can meet with expectation of visitors (Leung, Au and Law, 2015). It helps in
removing unproductive initiatives so that overall goal of organization can be accomplished.
SOSTAC model needs to be implement by Thomas Cook in order to promote Scotland as
tourist destination.
 Situation analyses: Thomas Cook needs to analyses situation first by conducting SWOT
and PESTLE analyses. By this way it will be able to identify areas to work on. According
to market and economic condition cited firm will be able to make strategies of marketing
of Scotland.
 Objective setting: It is the next phase in which Thomas Cook is required to set objectives
which it wants to achieve (Huang and et.al, 2013). The main goal of cited firm is to
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maximize profit and make Scotland as tourist destination. According to its objectives
entity needs to make strategies.
 Strategy development: It is the next phase in which company has to develop strategies so
that it can bring innovation in the business and can meet with its objectives. It has to
make such strategies through which it can influence mind of consumers and can make
them ready to visits Scotland (Hall, 2014).
 Tactical development: It is essential to conduct market survey in order to gather in-depth
information about needs and priorities of travellers.
 Action: In this phase Thomas Cook is required to implement the action plan. It has make
connection with airlines and other transportation mediums so that it can fulfil needs of
consumers (Dickinson and et.al, 2014).
 Control: Thomas Cook has to make control over strategic marketing plan, it has to ensure
that travellers get quality services and they do not face nay trouble. It can help in
promoting Scotland as tourist destination.
Strategic marketing planning is very important because by this way cited firm can
accomplish its objectives. It supports in effective utilization of resources and accomplishing
needs of visitors (Fernández-Morales and et.al, 2016).
B) Relevance of marketing research
Marketing research is the process of collecting information about market conditions,
trends, consumer’s needs and preferences. DODCAR model is the best model for marketing
research:
 Define the research problem: Thomas Cook is required to identify the main issue so that
it can formulate strategy accordingly (Huang and et.al, 2013).
 Objective setting: In this phase cited firm has to set objective.
 Designing research plan: It has to design particular marketing plan through which it can
meet with its objectives.
 Collection of data: It has to gather information in order to make effective plan. Data can
be collected through observation, feedback, interview, questionnaire etc.
 Analyses of data: After gathering all details researcher has to analyses information by
using various tools (Buhalis and Foerste, 2015).
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 Report findings: After that results will come out so Thomas Cook would be able to create
effective strategies through which it can attract mass audience towards Scotland and can
promote this destination as tourist destination.
By conducting market research Thomas Cook can gather in-depth details about choice,
preferences, demand of consumers. It is analysed that most of the travellers want quality services
at affordable prices. So, it would be able to design such travel packages which can meet with
their requirements. Marketing research can support cited firm in making marketing campaign
successful and minimizing wastage of resources (Huang and et.al, 2013). It is the great element
which assist in reducing uncertainties and risk of the business. Because company gets to know
about things which can demotivate travellers. So, Thomas Cook will not involve such things into
its marketing plan and will design the planning in such manner which can motivate the
consumers to visits Scotland. With the assistance of marketing research company can collect
relevant information which supports the firm in meeting with needs of visitors.
C) Positive and negative influence of marketing on society
In order to market products and services, Thomas Cook can take support of social media,
TV, print media etc. But these marketing strategies can impact on society. With the help of
marketing travellers can get relevant information about the destination, culture, tradition, it
impacts positive on society because it spreads cultural aspect of particular place across the world.
Through marketing cited firm can make people aware with innovative products and services of
Thomas Cook. It enhances awareness in the society (Hall, 2014). Furthermore, it positively
influences living standard of the consumers. They can know about new place and their living
style.
On other hand it also impacts negatively on society because sometimes it increases
misunderstanding in between two different culture people. Use of wrong words, images can
make people negative towards the destination. Marketing develops unrealistic expectations of the
consumers because they think that they will get luxurious facilities but when it does not fulfil
then they become negative towards the brand and destination as well (Leung, Au and Law,
2015).
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TASK 3
A) Elements of marketing mix
Marketing mix is considered as essential tool that supports in attracting more consumers
towards the brands. Elements of marketing mix are as following:
Product
Scotland is most attractive place and many travellers come to this place frequently to
enjoy its attractive points (Standing, Tang-Taye and Boyer, 2014). Thomas cook needs to
provide services such as parking, accommodation, transportation, hiring of cars etc. so that most
visitors take interest in its travel packages
Price
It is most important part of marketing, it can influence consumers to great extent. Thomas
Cook is required to adopt skimming pricing policy, it will help in planning the travel within
budget. This can support in increasing sales volume of organization (Hall, 2014).
Place
It is another element of marketing mix, Thomas Cook need to arrange travel for
consumers at various places (Martin, Rosenbaum and Ham, 2015).
Promotions
Cited firm need to use social media marketing tactics in order to promote the Scotland as
travel destination. By this way it will be able to attract more people towards the location and will
be able to develop relationship with them.
B) Importance of service sector mix elements
Service sector marketing mix can also be known as extended marketing mix. It is
important for marketing of travel and tourist sector. It pays more attention on people because
consumers are life blood of business. If company offers quality services to its consumers then it
will support in attracting them towards the brand (Dickinson and et.al, 2014). Process is most
important part of service mix element, Thomas cook pays attention on consumer's complains and
resolve them immediately. If company does not resolve complains on time then it may fail
consequences in market. Physical evidence of Thomas cook plays significant role. Culture of
cited firm is good that is why employees are satisfied and they perform their duties well. It
supports the cited firm in providing quality products to consumers as per their requirements. It
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also supports in developing strong relationship with them and attractive them towards the
particular destination (Prebežac, Schott and Sheldon, 2016).
C) Concept of total tourism product
Total tourism product involves activities from planning of travel to final arrangements.
Company has to plan travel for consumers by looking at their interest and budget both. Thomas
cook needs to provide accommodation facilities to the consumers so that they can easily travel
from one place to other (Dickinson and et.al, 2014). Total tourism products can be explained as
process through which tour companies can gather necessary information about tourist and their
requirements. By analysing their needs company can provide them travel packages as per their
requirements.
D) Role and integrated nature of promotional mix
Travel business need to understand need of consumers and accordingly they have to
promote their products and services. Promotion of Scotland can help in increasing number of
travellers in the destination and can support in increasing foreign currency of particular nation.
Promotional mix supports in attracting new travellers and retaining existing visitors.
Advertisement is one of the main promotional mix strategy. Through advertisement Thomas
Cook can promote the products of company. By using print media, email marketing cited firm
can make people aware with the attractive points of Scotland and can influence their mind as
well. Sales promotion is another strategy in which media and non media both platform can be
used by Thomas Cook (Buhalis and Foerste, 2015). Through this process entity can circulate
message to mass audience and can enhance sales volume of the firm. Direct marketing is another
promotional mix strategy that can help the cited firm in promotion of Scotland through
catalogue, letter, social networking sites. It develops relationship with consumers and make them
positive towards the brand.
E) Justification of an integrated promotional campaign
In the modern era travel organizations have to face huge competition in such environment
it is essential to make effective promotional campaign so that entity can meet with its objective.
Use of digital technology for promotion of Scotland can be beneficial for the Thomas Cook,
through this medium entity will be able to spread its message to mass audience. It will help in
developing relationship with them and making them positive towards the place and brand. Use of
search engine optimization is best campaign. It is the method which indicates probable visitors
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those who have searched the travel packages. Both these can help in promoting the location
effectively and spreading its attractiveness across the world (Hall, 2014).
Integrated social media campaign can help the Thomas cook in identifying need of
travellers and providing them products as per their requirements. Company can take feedback of
them. It supports in developing relationship with consumers (Becker, 2016).
CONCLUSION
From the above report it can be concluded that marketing plays significant role in the
organization. Through effective marketing strategies travel firms can promote their products and
services across the world and can develop strong relationship with consumers. In order to sustain
in the competitive environment it is essential for business units to make effective promotional
mix strategies and reach to the mass audience. Company needs to design travel packages as per
the requirements so consumers. It will support in sustaining into market for longer duration and
gaining competitive advantage.
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REFERENCES
Books and Journals
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and
Schuster.
Buhalis, D. and Foerste, M., 2015. SoCoMo marketing for travel and tourism: Empowering co-
creation of value. Journal of destination marketing & management. 4(3). pp.151-161.
Dickinson, J. E. and et.al., 2014. Tourism and the smartphone app: Capabilities, emerging
practice and scope in the travel domain. Current Issues in Tourism. 17(1). pp.84-101.
Fernández-Morales, A. and et.al., 2016. Seasonal concentration of tourism demand:
Decomposition analysis and marketing implications. Tourism Management. 56. pp.172-
190.
Hall, C. M., 2014. Tourism and social marketing. Routledge.
Huang, Y. C. and et.al., 2013. Exploring user acceptance of 3D virtual worlds in travel and
tourism marketing. Tourism Management. 36. pp.490-501.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Leung, R., Au, N. and Law, R., 2015. The recent Asian wave in tourism research: The case of the
Journal of Travel & Tourism Marketing. Asia Pacific Journal of Tourism Research. 20(1).
pp.1-28.
Martin, D., Rosenbaum, M. and Ham, S., 2015. Marketing tourism and hospitality products
worldwide: Introduction to the special issue.
Prebežac, D., Schott, C. and Sheldon, P., 2016. The tourism education futures initiative:
Activating change in tourism education. Routledge.
Standing, C., Tang-Taye, J. P. and Boyer, M., 2014. The impact of the Internet in travel and
tourism: A research review 2001–2010. Journal of Travel & Tourism Marketing. 31(1).
pp.82-113.
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Online
Concept of Needs, Wants, Demand in Marketing, 2017. [Online]. Available through
<http://mostbeautifulplacesandcultures.blogspot.in/2010/02/concept-of-needs-wants-
demand-in.html>
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