Tourism Marketing Strategies and Segmentation

This assignment delves into the realm of tourism marketing, emphasizing the crucial role of market segmentation in shaping effective strategies. Students will analyze various market segmentation techniques and delve into relevant case studies to understand their practical applications within the tourism industry. The assignment also encourages exploration of current trends and developments influencing tourism marketing.

MARKETING IN TRAVEL
AND TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Core concepts of marketing for travel and tourism...............................................................1
1.2 Impact of marketing environment on people, tourist destinations and businesses...............2
1.3 Factors affecting customers motivation and their demand ..................................................3
1.4 Principles of market segmentation and its uses in planning of marketing............................4
TASK 2 ...........................................................................................................................................5
2.1 Importance of strategic marketing planning for Thomas Cook Group................................5
2.2 Relevance of marketing research and market information to managers...............................6
2.3 Influence of marketing on society.........................................................................................7
TASK 3 ...........................................................................................................................................8
Covered in PPT...........................................................................................................................8
TASK 4............................................................................................................................................8
4.1 Integrated nature and role of the promotional mix...............................................................8
4.2 Plan and justify an integrated promotional campaign..........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Travel and tourism is a very fastest growing company. Travelling industries should be
understand the needs and demand of customers. Thomas Cook Group is a big scale travel and
tourism industry. People are very fascinated and interested in see the new places or tourism
destination (Buhalis and Foerste, 2015). The management of this business firm always take care
of its customers and always serve better services to their customers. Before serving the products
and services, it is necessary to conduct research on customers or their tastes. In this report
mentioned about the core concepts of marketing and the impact of marketing environment on
people in travel and tourism sector. There are also mentioned about the importance of strategic
marketing planning. This business firm conduct market research for getting some information
about the marketing policies and strategies. In this present report also mentioned about the issues
in price, place, product and promotion and the importance of service sector mix elements.
Promotion mix is very important factor in for promoting new things and there are some
integrated nature and the role of marketing mix.
TASK 1
1.1 Core concepts of marketing for travel and tourism
The Thomas Cook Holidays is mainly operate in travel and tourism sector. This business
firm provides various good and attractive packages on a reasonable price. The main and basic
reason behind study or know about the core concept of marketing that it helps in understanding
the tastes and preferences of people and by providing good quality of products and services of its
customers. There are some core concepts of marketing:
Needs, wants and demands of consumers- It is the first and foremost priority of is to
know and understand about the needs and demands of customers. The tastes and preferences of
users change day by day, so before making or designing products it is necessary to conduct
research on customers demands and their wants (Cox and Wray, 2011). The main and important
needs of customers are basic needs, safety, social, self esteem and last self- actualisation needs.
In basic needs of customers includes room availability for living, food facilities etc. Safety is
very important and it is the responsibility of business enterprise is to provide safety standard to
its customers and the safety is related to health, job related security to employees etc. Thomas
Cook Group also provide security to its customers as well as to their customers. This business
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also works for the welfare of society along with earning profit. With the help of this, company
creates good perception in the mind of customers.
To provide satisfactory quality- The main objective or motive of this business firm is
to provide the good quality products and services to its consumers by identifying and
understanding their needs and wants (Dasgupta, 2011). To make improvement in quality,
Thomas Cook Group adopts and uses new and advanced technology or machineries.
Exchanged transactions and relationship- It means that goods which are more required
then in this case buyers is need to pay cost which is charged by this business enterprise. It is
necessary for customers to exchange some offers instead of money. This organisation charge less
price at the time of offering any new services or the package related to travelling.
1.2 Impact of marketing environment on people, tourist destinations and businesses
The main plan of Thomas Cook Group is to offer attractive packages to its tourists, so
that they can visit without any issue of money. It is necessary to know and study about many
factors like for instance micro and macro factors which can affect on functions of business
enterprise. There are some micro key elements which can impact on business of cited business
enterprise that are given as below:
Customers- They plays important role in the business of an organisation. They use
services which is given by company. So to before produce products and rendering services it is
necessary to know about the customers need and then make products according to them. The
business process should be ethical and should not harm people (Evans, Stonehouse and
Campbell, 2012). This factor impacts on lot on incensing the productivity and growth of
business.
Competitors- They are the rivalries of company. To know about the marketing and the
competitors strategy, this business firm conduct research to know about their plans and policies.
To make image in the competitive market, it is necessary to Thomas Cook Group is to make new
and unique products which are not existing before in market.
There are some macro factors which can also impact:
Technology- It means that the entailment of new and advanced technology, development
and the research on Thomas Cook Group. To attract customers this business firm uses new and
upgraded technology and machinery. With the help of latest technology, company can make
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improvement in its business process and the quality of production. If it will not accept new
technology, then in this case it can affect on abusiveness operations and its process.
Legals and Political factors- The policies, strategies, rules and crenulations are generally
made by government and parliaments of United Kingdom and that can be impact on functions of
company at market place (Goeldner and Ritchie, 2010). To make its abusiveness successfully,
then company has to work according to policies of government. It is the responsibility of
company is to pay tax on proper time and follow the law and regulations.
1.3 Factors affecting customers motivation and their demand
For an organisation, the role of customer behaviour is very important and necessary in
needs and wants of customers or decision making process of customers. From understanding the
behaviour of users business organisation can stimulate for using or buying the products and
services. There are many factors which can impact helps ion motivating the employees but
sometimes its can impact on their purchasing power:
Group behaviour- It means the affect of different groups like for instance friends,
colleagues and family on their buying decision. This factor is very important and it can impact
on decisions which are related with the groups, families etc.
Economic conditions- This factor affect on purchasing decision making on customers in
travel and tourism sector. In year 2014-2015, the income level of people of United Kingdom was
increased, so they travel more in different countries and cities. The income level of people also
impact on travel and tourism sector or its productivity.
Personal preferences- It means the personal likes and dislikes of visitors ans also their
values that are important and necessary in purchasing the services of hotel (Goodall and
Ashworth, 2013). The tasted and preferences of visitors or customers change day by day or in
short period of time, then in this case business should be prepare services according to them.
Buying power of customers- It is related with the ability and capabilities of consumers to
buy goods and services which are given or rendered by this business firm. The quality of services
should be good and according to the capacity of consumer. Thomas Cook Group segment its
customers in to sub parts so it can take care the demand of customers and also fulfil it. This
business enterprise provides every type of budget such as luxurious, low cost etc. or on the basis
of income level of customers.
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1.4 Principles of market segmentation and its uses in planning of marketing
Market segmentation means to divide or segment an entire or full market in to sub parts
so that company can easily provide services in an effective and efficient way. Before
segmentation, company has to prepare good and effective policies and strategies. With the helps
of segmentation, this business firm can extent its business in to new sectors or in new areas and
can make good and effective image in front of customers. Planning is a very important factor are
the time of divide the market (Hahm and Wang, 2011). With the helps of this company can
identify it users and also formulating plans and policies that helps in reaching to the consumers
for satisfying the needs and wants of customers. There are four types of segmentation:
Geographic Segmentation- Under this, the business or market is segmented according to
geographic and in it includes countries, regions, states, climate etc. With the help of this Thomas
Cook Group used this kind of aspect. It business firm can give or render its travelling services in
Morocco and Egypt which is based on United Kingdom.
Psychographic segmentation- The market or business is divided according to interest,
lifestyle, perception and the perceptions of consumers which can impact on the power of
customer decision making process (Hall, Timothy and Duval, 2012). It is related to elements
which are impacted people to increase its activities. Sometimes, this organisations wants to reach
to those users who can easily take luxurious services of travelling. With the help of this type of
segmentation, Thomas Cook Group provides high quality of services of its visitors or tourists.
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Illustration 1: Market segmentation
(Source: Market segmentation types, 2017)

Behavioural segmentation- The market or business is segmented according to attitude,
loyalty, behaviour etc. of purchasers towards the goods and services which are produced by this
travel and tourism industry. Thomas Cook Group targets only those customers who are loyal
towards the brand or services of this company.
Demographic segmentation- Under this, the market is segmented on the basis of gender,
age, income level, occupation, family size and the criteria of customers (Hudson and Thal,
2013). Mainly this business firm divide its products and services on the basis of income level of
customers.
TASK 2
2.1 Importance of strategic marketing planning for Thomas Cook Group
The strategic management planning means a set of priorities, resources, process and
operations or stakeholders of this business firm which are already work for achieving the goals
and objectives of a business firm. It is a long term process which is formulated by the Top
management accomplish the target of company by making some effective and efficient strategies
and policies. The Thomas Cook Group make some effective and proper strategies related to
marketing for improving business operations and to increase its business in to new markets,
policies etc. It will helps in making the strategic planning of marketing and it can direct impact
on existing consumers to buy new travelling packages at reasonable price (Hussein, Ennew and
Kortam, 2012). The Thomas Cook Group formulate effective strategies which can helps in
making the business good and flexible for future purpose. Under this, there are two main travel
cities which people more liked and those are Morocco and Egypt for holidays purpose and
people like the most these two beautiful cities. Thomas Cook Groups provides the better
travelling packages to those people which want to go Morocco and Egypt for enjoying their
holidays.
SWOT (Strengths, Weaknesses, Opportunities and Threats)- With the help of these,
Thomas Cook Group can analyse itself from inside as well as from outside. This abusiveness
firm make strategic planning for making the marketing planning good. The SWOT analysis helps
in identify and understanding the internal elements of company which can helps in evaluated its
long term survival at market place. It is important and necessary to see the strengths and
weaknesses of firm, so from this it can work on overcome from its weaknesses and can catch
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new opportunities. The main strength and capability of this company is its brand name, it has a
high and big name in market or in travel and tourism industry. This organisation renders good
quality and services to its customers which can satisfy the needs and wants of customers.
life cycle of products- From analysing the product life cycle, the strategic planning of this
industry can easily identifies various types of goods and services which are easily available in
existing marketplace (Kayar and Kozak, 2010). In this, there are four stages are included in it:
 Introduction stage
 Growth stage
 Maturity
 Decline
Ansoff matrix- It is a kind of strategic planning that gives a structure to helps employees,
executives, managers for their future development. Under this, there are four main strategies are
involved and that are:
Market penetration- In this, company develop its current products in to existing market.
With the help of this, organisation can maximise its sales and market share.
Market development- Under this, Thomas Cook Group wants to expand its existing or
present goods in to new market. This company wants to expand its products in new sector.
Product development- According to this, there is a development of new and attractive
goods in to existing market. Company introduce new products in an effective way.
Market development- In this, organisation expand its products or services in to new
market. With the help of this, it can target new customers and can retain its existing consumer.
2.2 Relevance of marketing research and market information to managers
From conducting the market research,Thomas Cook Group know and understand the
tastes and preferences of its visitors or buyers and identifies that how an organisation meet with
the necessity and wants of consumers (Law, Qi and Buhalis, 2010). With the help of research
company can collect data and information about market and also the competitors. From this,
company can make effective strategies to sustain in travel and tourism sector. Marketing research
helps in knowing about marketing strategies, policies etc. It also helps in retain business for long
term purpose. In the process of marketing research, there are five main stages are included:
Defining problem- It is a first stage and in this stage, there is a need of determine the
issue and problem behind research programme and note down problem in a concise manner.
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Formulating business plan- After identification of problem, it is necessary to make and
prepare a plan and this plan helps the research to analysis the information and data. The business
plan should be workable and effective and in it includes online test, interviews, questionnaire and
surveys.
Data analysis and findings- In this step, there is a need and requirement of
determination of data and some findings. Data should be proper and in a systematic manner.
Taking some actions- In this last step, is is necessary to take some actions in the process
of marketing research.
Before going to travel in the Morocco and Egypt , it is necessary to know about the
research and see the beautiful destination places of these two cities. So, that tourists can easily
travel to these cities and enjoy in better manner.
2.3 Influence of marketing on society
Society impacts a lot ion business and its operations. To travelling purpose, the Thomas
Cook Group only target the young people because young person are more like to travel in all
over the world (Molina, Gómez and Martín-Consuegra, 2010). The profit and success of
business or company is totally depend upon the society and its behaviour towards of a business
firm. There are some negative and positive impacts which are related with society or its people:
POSITIVE IMPACTS
Corporate social responsibility- It is a responsibility of business firm is to contribute
some amount of money front its profit in the welfare of society. It will helps in create good
impact on society people and from this, the sale of company will be increased.
Creating job- From good marketing strategies and policies, company will attract new and
existing customers towards its services and from this there will be an increment in hospitality
related services like for instance hospitals, hotels, airlines etc. To provide the good customers
service to them, then in this case it is necessary to recruit and select only those
people who have some knowledge about hospitably and to improve their skills and knowledge,
HR manager give training and development.
Negative Impacts
High cost- If this business firm increase the price of hospitality and the services, then in
this case it can impact bad on sales of customers and the productivity of business (Morgan,
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Lugosi and Ritchie, 2012). The problem can be created and developed for other people who they
use the services of Thomas Cook Company.
Pollution- From travel and tourism industry, the more and maximise pollution created
and it can impact on health of visitor and they will get disappointed. From this, the sales of this
business firm will be decreased.
TASK 3
Covered in PPT
TASK 4
4.1 Integrated nature and role of the promotional mix
The promotion mix is a very effective tool and technique that Thomas Cook Group use to
aware people about the new goods and services of company (Moutinho, 2011). There are some
components of promotion mix:
Advertisement- This business enterprise use paid form of advertisement and promotion.
This company gives advertisement with the help of banners, online, social media sites, television
etc. the management of this business firm develop advertisements of a specific travelling
packages and then promote it.
Sales promotion- It is for short term and in this, seller sells its goods and services to its
customers and under this includes discounts, vouchers or any other offers.
Personal selling- In this, seller promote or sell its products from face to face interaction
(Soteriades, 2012). This organisation can develop good and harmonious relationship with its
consumers and then tell them about quality of product and convenience them to buy.
4.2 Plan and justify an integrated promotional campaign
Advertisement
It is a medium to promoting goods and services which are prevailed by company. The
advertisement related with products and services is an efficient and proper way to attract new
customers and to retain its existing people. Thomas Cook Group use various methods for
advertisement such as online, through television, public speaking, radio,worth of mouth etc.
Public relation
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It is related with maintaining goods and harmonious relationship with people. This
industry always try to maintain and to develop good relations which its visitors. Thomas Cook
Group has strong brand name at market places and it promote its services by cooperate with
accommodations like hotel rooms, villas and any other living facilities (Sotiriadis and Van Zyl,
2013). The main motive of Human Resource manager is to attract more and more customers
towards the services of company.
CONCLUSION
It is concluded from the above report that travel and tourism is a big industry and Thomas
Cook Group provides all services and products to its customers at reasonable and attractive
package. In this report studied about the concepts of marketing in travel and tourism. There are
some significance of marketing environment on individual travelling and some visitors attraction
places. In this present report studied about the principles related to market segmentation as its
uses in marketing planning.
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REFERENCES
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Cox, C. and Wray, M., 2011. Best practice marketing for regional tourism destinations.Journal
of travel & tourism marketing.28(5). pp.524-540.
Dasgupta, D., 2011. Tourism marketing.India: Dorling Kindersley.
Evans, N., Stonehouse, G. and Campbell, D., 2012.Strategic management for travel and tourism.
Taylor & Francis.
Goeldner, C.R. and Ritchie, J.B., 2012.Tourism: principles, practices, philosophies(No. Ed. 12).
John Wiley and Sons, Inc.
Goodall, B. and Ashworth, G. eds., 2013.Marketing in the Tourism Industry (RLE Tourism): The
Promotion of Destination Regions. Routledge.
Hahm, J. and Wang, Y., 2011. Film-induced tourism as a vehicle for destination marketing: is it
worth the efforts?.Journal of Travel & Tourism Marketing.28(2). pp.165-179.
Hall, C.M., Timothy, D.J. and Duval, D.T., 2012.Safety and security in tourism: relationships,
management, and marketing. Routledge.
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.
Hussein, R., Ennew, C. and Kortam, W., 2012. The adoption of web-based marketing in the
travel and tourism industry: an empirical investigation in Egypt.Journal of Innovation
Management in Small & Medium Enterprises.2012. p.1.
Kayar, Ç.H. and Kozak, N., 2010. Measuring destination competitiveness: an application of the
travel and tourism competitiveness index (2007). Journal of Hospitality Marketing &
Management.19(3). pp.203-216.
Law, R., Qi, S. and Buhalis, D., 2010. Progress in tourism management: A review of website
evaluation in tourism research.Tourism management.31(3). pp.297-313.
Molina, A., Gómez, M. and Martín-Consuegra, D., 2010. Tourism marketing information and
destination image management.African Journal of Business Management.4(5). p.722.
Morgan, M., Lugosi, P. and Ritchie, J.B. eds., 2010.The tourism and leisure experience:
Consumer and managerial perspectives(Vol. 44). Channel View Publications.
Moutinho, L. ed., 2011.Strategic management in tourism. Cabi.
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Pike, S., Bianchi, C., Kerr, G. and Patti, C., 2010. Consumer-based brand equity for Australia as
a long-haul tourism destination in an emerging market.International marketing
review.27(4). pp.434-449.
Soteriades, M., 2012. Tourism destination marketing: approaches improving effectiveness and
efficiency.Journal of Hospitality and Tourism Technology.3(2). pp.107-120.
Sotiriadis, M.D. and Van Zyl, C., 2013. Electronic word-of-mouth and online reviews in tourism
services: the use of twitter by tourists.Electronic Commerce Research.13(1). pp.103-
124.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet.Journal
of Retailing and Consumer Services.22 pp.244-249.
Zamani‐Farahani, H. and Henderson, J.C., 2010. Islamic tourism and managing tourism
development in Islamic societies: the cases of Iran and Saudi Arabia.International
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Online
Market segmentation types, 2017. [Online]. Available through:
<https://www.dreamstime.com/royalty-free-stock-images-market-segmentation-types-
image28845369>. [Accessed on 2nd August, 2017].
Travel & Tourism Marketing, 2016.[Online]. Available through: <http://www.ttmworld.co.uk/>.
[Accessed on 2nd August, 2017].
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