Marketing Mix Analysis & Issues

This marketing analysis report examines the effectiveness of a company's marketing mix across various components like product, price, distribution, and promotion. It delves into the importance of device selection in marketing plans and sheds light on key issues affecting service and promotional strategies. The report aims to provide insights into successful marketing approaches and identify areas for improvement.

Marketing in Travel and Tourism

` Table of Contents
INTRODUCTION ...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1 Core concepts of marketing in travel and Tourism industry..............................................................3
1.3 Factors which affect customer motivation and demand in tourism industry.....................................5
1.4 Principles of market segmentation ...................................................................................................6
TASK 2..........................................................................................................................................................7
2.1 Analyzing the significance of selected market planning for TUI Company.........................................7
2.2 Relevance of market research and information to managers in travel and tourism industry............9
2.3 Assessing the influence of marketing on society...............................................................................9
TASK 3........................................................................................................................................................10
3.1 Identifying the issues in elements of marketing mix........................................................................10
3.2 Significance of Service mix element in tourism sector.....................................................................11
3.3 Application of concept of total tourism product to an individual tourism business........................12
TASK 4........................................................................................................................................................12
4.1 Assessing the integrated nature as well as role of promotional mix................................................12
4.2 Promotional campaign for TUI group...............................................................................................13
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
Tourism industry is considered to be as rapid growing sector in UK. Increase in demand
of tourism products and change in priorities of people has supported industry in achieving
success and fostering development. Tourism industry is contributing a lot towards economic
development of United Kingdom. Travel and tourism countries has played significant role in
generation of employment in the nation. Effective marketing strategies as well as plans have
supported an organisation in achieving business objectives. Marketing activities plays significant
role in promoting goods, services and brand. It is the technique using with firm can interact with
customers and inform them about organisational goals. Marketing helps business entity in
increasing sales as well as profitability. Market research assists an organisation in identifying the
needs or demands of customers. It also enables business venture to provide high level of
satisfaction to client by delivering goods or services as per their requirement.
The purpose of the project is to develop the understanding about the concepts as well as
principle of marketing in travel and tourism industry. It also has focus on analysing the effect of
marketing environment on tourism business in context of TUI Company.
TASK 1
1.1 Core concepts of marketing in travel and Tourism industry
Marketing activities are mainly concerned with identifying the needs of customers and
fulfilling the requirement or demand of target group. Objectives of marketing activities are to
promote products, services, brand and provide high level of satisfaction to customers. The
important concepts as well as principles of marketing in travel and tourism sector are simple to
understand, relevant, definite and acceptable. The core concepts of marketing are:
Wants-According to this marketing concept, travel companies should provide services as well as
design product considering the desire of customers. Wants is internal desire which influence
consumer to buy particular product or services. It is required by marketing team in TUI
Company to introduce attractive tour packages and launch new offers, seasonal discounts etc. As
this activity will help business entity in attracting more number of customers.

Need- There is things, services or facilities such as food, safety, accommodation etc. are needed
by the traveller during the journey. TUI prioritizes the needs of customers and has focus on
catering requirement by tourists. Market research is conducted by the marketing in TUI
organization at regular interval of time which assists business entity in recognising the need of
customers and support marketing manager in development of strategy for fulfilling the demand
of traveller.
Demand-it is generated when customer customers have needs as well as desire and potential to
buy goods or services. In context of travel and tourism industry, there are several demands of
travellers such as adventurous activities at destination, demand for regional foods, safety etc.
Products-As per this marketing concept, products should have the potential to cater the needs,
demands of user. TUI provides services as well as design product according to the prevailing
trend in travel and tourism industry. Business entity also offers tour packages which involves
special food, adventurous activities, accommodations and transportation services (Kerin,
Hartleyand Rudelius, 2006)
1.2 Assessing the effect of marketing environment on travel and tourism business and tourist
destination
Marketing environment include both macro as well as micro factors which has direct and
significant impact on the business activities. Changes in marketing environment also have great
influence on the marketing strategies, plans or decision taken by marketing manager related to
selection of marketing techniques for promoting goods, services or brand.
Micro environmental factors
Suppliers-These are the important stakeholders, those who enabled firm to deliver quality
products or services to customers. Suppliers have direct as well as major effect on the business
operations. As interruption in supply of raw material can lead to delay in services to customers
which may lead to high level of customer dissatisfaction. As the TUi has strong relationship with
suppliers, it has allowed business entity to gain customers loyalty and provide high level of
satisfaction to clients. Suppliers have supported firm in increasing sales and profitability. The

TUI company also has strong supply chain network in Turkey and Spain which has allowed the
firm to provide services to the customers at particular destinations.
Employees-These are also important stakeholders, who support business entity in delivering
products or services to customers in the market. Workers support marketing manager in
formulation of an effective plans for promoting goods or services. Employees in TUI Company
have supported organization in accomplishment of marketing objectives. Management in TUI
organisation has appointed new managers for operating as well as handling its outlets in Spain
and Turkey.
Customers-Change in demands as well as need of the customers has direct and major impact on
customer policies and marketing plan or strategies of an enterprise. The stakeholders have high
potential to encourage firm for adopting new promotional techniques. TUI organisation due to
effective marketing plan and strategies has able to gain the loyalty of customers in the marker of
Spain and Turkey.
Availability of resources- These are required for executing marketing activities. Lack of
resources can create hurdles in achievement of marketing objectives (Tsaur, Chiu. and Huang,
2002)There are the sufficient amount of resources are available at destination in Turkey and
Spain which has allowerd travel companies to provide additional facilities to visitors or tourist.
Macro environmental factors
Political factors: These variables include political situation in the country, regulation formed by
government has significant effect on the marketing strategy as well as activity of TUI Company.
The regulation created by the government in Turkey and Spain has supported organisation in
expansion of business.
Economic factors: These constituents include inflation in prices of products, increase in tax rates,
fluctuation in exchange rate has direct effect on the sales as well as profitability of organisation.
Technological factors: Technology has provided a big online platform for tour and travel
companies which they can use for promoting goods and services. These variables have provided
TUI an opportunity to reach wide number of customers. But the major drawback of advancement

in technology is that, it has given rise to stiff as well as intense competition in the industry
(Maringe, 2005).
1.3 Factors which affect customer motivation and demand in tourism industry
There are some variables which can have direct as well as significant impact on the
customer motivation as well as demand. These factors are:
Psychological factors-These variables involve perception, beliefs, attitude of customers towards
company operating in Travel and tourism sectors. Customers form perception about an
organisation by getting information about company from other people in the society.
Social factors-These Variables Plays important role in motivating or positively influencing
consumer to make purchase of specific good or service. Some of the social variables include
friends, trends, status etc.
Cultural factors- These are also important variables which inspire people to travel and purchase
the services offered by tour and travel companies. Cultural factors motivate an individual to
explore the tradition as well as analyses the values, beliefs of people in other countries.
Personal factors-Economic situation, need, desire is some personal variables which motivate
people tom travel (Anuar, Jusoh, and Hussain, 2012)
1.4 Principles of market segmentation
Market segmentation is considered to be as important activity which divides market into small
portion which includes customer with same demand of product or services. Customers market is
categorized into small segments by considering the taste, preference, lifestyle, personality, social
status etc. Market segments plays significant role in tourism industry where large of travellers
are categorised into different market segment on the basis of their needs (Kotler,2001. ) There
are mainly four bases on which market can be segmented these are:
Behavioural market segment-This segmentation strategy is based on buying behaviour of
customers and decision-making procedure of client.
Demographic market segment-This of segmentation is done by considering the family service,
age, gender etc.

Psycho graphic market segment-This form of market segmentation is done on the basis of
customer interest and life style.
Geographic segmentation: This form of market segmentation is done according to the region.
As travel and tourism is very big and consists of intense competition, competitors in the industry
can motivate people to buy their products by their goods or services by offering good tour
packages. It is required by TUI Company to find innovative ideas and develop effective strategy
to attract more number of customers. Marketing strategy assist business entity in delivering the
quality services and providing the best packages to clients. It also supports firm in delivering
high level of satisfaction to customers (Morrison, 2013) marketing team in TUI can plan to offers
summer holidays packages which might covers historical or religious destinations places in
Turkey. Adult or middle age group of customers’ demands adventurous activities at destination.
Management team in TUI can plans such activities. It is required by management team in an
organisation to integrate marketing segmentation strategy with market plan. Tourist typologies
assist the travel and tourism company in developing the effective plans. According to the Cohen
model there are mainly two variables which motivate an individual to travel these are push and
pull factor. Push constituent includes relaxing, interacting socially, relaxing etc. Pull motives
involves attraction towards destination etc.(Raj and Griffin, eds., 2015)
TASK 2
2.1 Analysing the significance of selected market planning for TUI Company
Strategic Market planning is recognised as the combination of market objectives as well as plans
or strategies utilized or adopted to achieve targets. SOSTACT model is considered to be as an
effective tool which can be used when making a marketing plans. Market plans defines the target
which are to be achieved during specific time. It outlines the ways several activities will be
executed in order to achieve desired outcome. Process involved in market planning is:
Situation analysis-Pestle and SWOT analysis is the technique or model which can be used by
marketing team in TUI company for analysing internal as well as market situation. In Turkey and
Spain. These analytical tools will help business entity in knowing their position in market of
turkey and spain and will also help business entity in identifying the area for improvement.

These techniques have been used by TUI group for analysing the economic condition of market
in order to make suitable investment decision.
Setting of targets or goals: management team in TUI Company has established market objectives
by analysing the overall business goals. Marketing objective of TuI organisation is to earn higher
revenue and increase profits. Another marketing objectives of TUi Company is to increase its
market share and gain customer loyalty in Turkey and spain.
Formulation of strategies-It is required by management team in TUI group to create an effective
strategy. Marketing team in TUI is required to focus on formulation of plans and development of
innovative ideas for attracting more number of customers. Product development is one of the
strategy which can be used by TUI for influence people to avail services or buy products in the
market of turkey and spain.
Determination of Plan of action-It is required by marketing team in TUI Company to conduct
market survey at regular interval of time. As this activity will help business entity in identifying
the needs of customers.
Implementation –This is the stage when plan should be implemented in systematic manner.
Control-This activity assist management team in ensuring that customers are provided with good
quality and timely services.
SWOT analysis is considered to be as an effective tool which is used by an organisation for
conducting internal assessment. This technique helps management team in identifying the
internal strength, weakness, opportunities and threat of firm. Swot analysis also support
management team in developing new strategy or plan.
Tourist area life cycle assists the travel company in identifying the destinations which always
generate confusion among travellers. Tourist area life cycle uses this tool for marketing its
products or services at each stage of tourist area life cycle.
Boston consultancy group matrix is adopted by TUI for identifying the best investment and
growth opportunities (Tung and Ritchie, 2011. )
Significance of Marketing planning

Marketing planning helps in identifying the barriers which might occur in conducting the
promotional activities.
It also assists employees in identifying their roles as well as responsibilities in driving firm
towards achievement of marketing objectives.
Market plans helps management team in ensuring the effective as well as efficient utilization of
resources
It also supports management team in formulation of suitable strategies for generating desired
outcome.
2.2 Relevance of market research and information to managers in travel and tourism
industry
Market research is procedures which are conducted by the marketing team in an organisation
with the purpose of analysing the situation and for identifying the needs as well as demands of
customers in the market. It also supports business entity in identifying their position in the
market and recognizing the area of improvement. Market research or information provide by
employees related to market supports manager in making suitable decisions. Market research
also helps manager in making effective plans or strategies for achieving the specific targets. It
also assists manager in developing the understanding about the market trend. Market
information’s is important to be gather before launching of the new product in the market. As
lack of market knowledge and customers’ needs can lead to failure of product and may lead to
the loss for firm. Market research also allows manger to gain vital information about the
strategies adopted by their competitors for attracting more numbers of customers. It also helps
management team in identify the new techniques which can be used by an organisation for
promoting goods, services or brand. Marketing team in TUi Company has realized the
importance of market research that it has helped firm in maintaining brand image, reputation and
business performance in the market. Market research also assists management team in analysing
the perception of customers about the products or services offered by an enterprise. It also
enables business entity in identifying the expectation of customers and recognizing the way or
method through which client expectation can be fulfilled. Market information also assists
manager in exploring as well as capturing several business opportunities.

2.3 Assessing the influence of marketing on society
Marketing have both negative as well as positive effect on the society. Marketing is considered
to be an important activity in business and significant part of business. As without the
promotional activities, company will not be able to communicate with customers and provide
consumer information about product or usage. Marketing is conducted by an organisation for
variety of purpose such as for identifying the needs of customer in the market, recognizing the
way for catering to the needs of clients etc. This is the activity which supports business entity in
maintaining balance between demand and supply. Marketing allows an enterprise to influence
people to buy particular product or services. But some people believes that marketing have
negative effect on the society. Promotional activities conducted by an organisation make society
more materialistic. There are many people in the society who thinks that advertisement and other
marketing activities have adverse influence on the behaviour of their child. These strategies
adopted by companies for promoting their products divert the attention of child from education
which has negative effect on their personal as well as professional growth. Some people in the
society also thinks that promotional activities executed by an organisation leads to wastage of
resources. The positive impact of marketing is that its helps people in identifying the sources for
fulfilling their needs. It also allows customers to get information about business activities and
also get updates themselves about the new launches of products or services in the market (Volo,
2010).
TASK 3
3.1 Identifying the issues in elements of marketing mix
Marketing mix is the important element or part of marketing plan without which an organisation
cannot achieve marketing objectives. But there are certain issues in marketing mix these are:
Product: This factor is considered to be the important element of marketing plan. Business entity
earns profit and generates higher revenue by selling the good quality of products. When goods
are sold to customers in return company get money which is utilized by manager for further
development of business. It is required by the marketing team in TUI group to consider several
issues before launching new product in the market these are target customer group, market,
customers, competitive edge ,culture , trends , prevailing in market of turkey and Spain etc. As
this will help marketing manager in determining the appropriate market for positioning their

products. Marketing manager in an organisation need to focus on the above mention issues.
Moreover, it will assist marketing team in planning the appropriate strategies or tactics for the
future.
Price: This is considered to be the significant aspect in business. As price is the factors which
supports firm in attracting more numbers of customers. Multiple pricing strategy is adopted by
firm. As this strategy helps business entity in reducing the negative effect of changes in price of
product on profitability of an enterprise. There are many factors such as changes in economic
factor, bargaining power of buyer, pricing strategy adopted by competitor’s force firm to reduce
the prices of goods. Due to these factor company also faces difficulty in recovering the basic cost
of producing the product. It is required by marketing team in TUI to consider the competitor
pricing strategy and should charge price according to the value as well as quality of product. As
this pricing strategy will assist business entity in attracting more number of buyer. Price should
be determined as pert the pricing strategies adopt by the competitors , Economic condition of
turkey and Spain, financial condition of people in these nations etc.
Place: It is also considered to be as another important element of marketing mix. Place includes
the area or location where the product is manufactured or sold. It is required by marketing team
in TUI to choose the place of creating or selling goods at such a place from where the products
can be delivered easily to customers. As late delivery of products can lead to high level of
customer dissatisfaction which might have negative on the reputation of company. It is required
by the owner to place their outlets at the central are of Spain and Turkey. As this will help
business entity in providing customer an ease to gain services or purchase products offered by an
organisation.
Promotion: This is the factor which helps firm in influencing people to buy products or services.
It also allows an enterprise to communicate information about products or services to customers.
Promotional activities also enable business entity to generate brand awareness. Several issues
which might occur in conducting the promotional activities in systematic as well as an effective
manner these are lack of resources, limited budget, legal issues, etc. The promotional strategy
adopted by the firm considering the norms for made by the legal authority in Turkey and Spain.

3.2 Significance of Service mix element in tourism sector
As TUI is operating in travel and tourism industry, marketing manager in an organisation
need to concentrate on important element of service mix these are people. Physical evidence,
procedures and people.
People-These are the important element in service marketing mix. Customers help an enterprise
in increase profit and generating revenue. It is required by management team in an enterprise to
hire or recruit talented and skilled workers force. As this strategy will support firm in delivery
high level of satisfaction to customers in terms of increasing sustainability in highly competitive
market. Marketing team in TUI Company should focus on providing quality services to client.
Process-This are the important part of marketing mix, as it allows business entity to deliver
quality services to client.
Physical evidence-This element is differentiation in service marketing. TUI has implanted some
of the technology within an enterprise which has allowed company to provide additional
facilities or services to their client (Carver and Byrd, 2008)
3.3 Application of concept of total tourism product to an individual tourism business
All the products in travel and tourism involve all the aspects such as from traveling plan
to destination. It is required by management team in a TUI enterprise when developing the plan,
manager should consider several factors such as the buying capacity of customers, consumer
demand or their need, client preference related to the availability of product at particular
destination. It also involves providing transportation services to client in order to enable them to
visit from one place to another. Marketing of TUI Company is to gain popularity and provide
quality service to client. But the company might face difficulty in achieving some objectives due
to intense competition in the market. It is required by marketing team in an enterprise to
develop attractiveness customer policies and offers customers with discounts, packages. As this
strategy will help an organisation in attracting more number of customers. Service marketing
mix plays significant role in supporting company in increasing sales. Tourism product include
tour package which involves all the benefits or offers related to the journey such as
accommodation, entertainment, food or beverages, accommodation facilities etc. TUI Company
takes initiative to cater the needs of customers by providing them all services or product under

one roof. Purpose of every employees in TUI Company is to provide high level of satisfaction to
clients (Chang and Chen, 2008)
TASK 4
4.1 Assessing the integrated nature as well as role of promotional mix
There are various methods as well as techniques which can be adopted by an organisation for
promoting goods, services or brand in the market such as personal selling, advertisement, sales
promotion etc. Promotional mix comprises all these actions which supports firm in marketing
their product or services. It supports business entity in providing customer an information about
the services or goods offered by a company. Promotional mix strategy has generally focused on
targeting new customer. All the constituent of promotional mix is organized in such an effective
way that it supports business entity in generating the brand awareness and helps in enhancing the
brand image of company. Management team in TUI Company should concert ate on identifying
the way to improve company or brand image, as this activity will assist business entity in
increasing sales as well as profitability.
Advertising -it is considered as a procedure of promoting the products or services offered by an
enterprise to its customer. There are several methods of advertisement these are utilizing print
media, internet, television, catalogues etc. TUI uses all the method of marketing its goods or
services. In addition to this marketing team in TUI company also utilizes social media sites, as
this strategy has assisted firm in communicating directly with customer and has allowed firm to
reach wide number of customers.
Direct marketing strategy has helped business entity in developing as well as maintaining
the strong relationship with clients. It has also provided business entity an opportunity to retain
profitable customers and influence client to make frequent purchases. TUI company uses E-Mail,
invitation offers for inviting the premium or permanent customers. This strategy has enabled firm
to make customer feel special and has allowed company to provide good shopping experience to
buyer (Yoo and Gretzel, 2011. )
4.2 Promotional campaign for TUI group.
An integrated promotional campaign is recognized as the medium which strategy which
includes several activities such as sales promotion, direct marketing, email, digital and in-store

promotion and various phases of promotional activities are ensured. In this procedure it is also
confirmed that the message reaches to the targeted group of people.
Marketing manager in TUI Company has conducted the analysis about the promotional mix which has
helped marketing team in development of plans for promoting goods, services or brand. Marketing manager In
TUI Company has planned to organize promotional tour packages in summers. As this is the season when
visitors intend to travel to explore beauty of other destination. Marketing team in TUI can seek support from
media as this strategy will help business entity in promoting the destinations as well. Another strategy that can
be adopted by firm is that marketing team can invite routine customers and inform client about the special
discounts, offers provided by company. This plan would be helpful in influencing customer to visit again to
gain several benefits of several promotional offers or schemes. Catalogues can be circulated in the market as
this will also asset an organisation in making people aware about the launch of new product by company.
Business entity can develop its own websites, as this will help firm min providing information about business
activities, objectives as well as practices to client (Middleton and Clarke, 2012. )
Target customers:By analyzing the market as well as economic situations , marketing as well as
management team in TuI company has planned to target people belonging to the high income
level group. As by targeting such people business entity will be able to increase its profit
margins. Management team in an enterprise has also planned to target youth and also working
men and women. As it will be easy for firm to attract these people, as they are working and
generally travel fir business or educational purpose.
Communication objective : The TUI company has adopted the concept of provide visitors
comfort as well as quality services. Objective of TUI company is to provide high level of
satisfaction to visitors and allow traveler to have good experience in Turkey and Spain. An
organization is mainly concerned with providing services to visitors or tourist so that their stay
could be pleasurable in Turkey or Spain. Purpose of organizing camp is to make people aware
about the goods as well as services offered by company.
Designing the message :Life great on Vac cation.
Location: The business will be located at the central area as well as also near shopping mall in
Turkey and Spain . This specific location has been selected as it will assist company is providing
the information to target audience.
Communication Channel: Company is planning to use the social media sites for communicating
the information about campaign that is to be organised in Turkey and Spain to large number of
customers.

Communication Results : An organisation has able to attract large numbers of local as well as
other tourist.
CONCLUSION
It has been concluded from the report that marketing has significant role to plays in travel
and tourism sector. Assignment has also concluded that promoting the services is much difficult
task as compared to marketing products. Customer satisfaction is the main objective of company
operating in travel and tourism. It has been concluded that proper as well as effective
promotional strategy assists business entity in accomplishing marketing objectives. Study has
successfully explained the concept of total tourism product to an individual tourism business. It
has also demonstrated the importance of device mix in marketing plan. Report has also
highlighted the various issues related to service or promotional mix.

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