MHI Marketing Project

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Added on  2020/12/09

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This project provides a comprehensive analysis of Thomas Cook's marketing strategies, covering key concepts, environmental impact, customer markets, market segmentation, marketing mix, pricing strategies, promotional mix, and the role of market research. It explores how these elements contribute to the company's success in the travel and tourism industry.

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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Marketing concepts of services industry...............................................................................1
1.2 Impact of Marketing Environment on business (THOMAS COOK)....................................2
1.3 relevance of customer markets in the industry......................................................................2
1.4 different market segments......................................................................................................3
TASK 2............................................................................................................................................3
2.1 Assessment the importance of marketing mix in the hospitality industry.............................3
2.2 Analysis of pricing strategies and policies in relation to the Thomas Cook.....................................4
TASK 3............................................................................................................................................4
AC 3.1 Role of promotional mix.................................................................................................4
AC 3.3 Analysis the types of sales promotion and public relations............................................5
TASK 4............................................................................................................................................5
AC 4.1 Relevance of market research.........................................................................................5
AC 3.2 Plan advertising campaign..............................................................................................6
AC 4.2 Undertaking market research for an appropriate product or service...............................6
AC 4.3 Analyse the suitability of different media for marketing an appropriate product or
service..........................................................................................................................................7
AC 4.4 Evaluate the implementation of the marketing plan for an appropriate product or
service..........................................................................................................................................7
REFEENCES...................................................................................................................................9
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INTRODUCTION
Marketing in hospitality would be including all important so that they are been able to
meet all targets of company. Marketing would be playing very crucial role in all sectors of
economy as without this business is not able to indulge themselves in competition with other
rivals into marketplace. In this assignment which is based on Thomas Cook Company would be
including various concept of service industry, impact of marketing in business of company and
what the relevance of customer market in service industry. Then it would including various
rational for the development of different market segments with the introduction of promotional
mix. Plan for advertising campaign would be included for the service industry operations and
then what is the preferred media for promotional activity of company.
TASK 1
1.1 Marketing concepts of services industry
Marketing concepts is a theory that bound to the company that it It is use for make
strategic business planning, research reports, marketing planning and for product development.
In marketing concepts, there are five major concepts and by implementing them, an organisation
can satisfy their customers’ needs, increase sales, beat the competition and make maximum
profit (Ozturen, Gursoy and Kilic, 2017). These five marketing concepts that must be executed
and adopted by every organisation are as follows:-
Production Concepts – this concept determines that a firm should be producing those products
which are widely available and inexpensive. It also states that consumers will favour products
that are available and highly affordable.
Product Concepts – in this concept, product quality and improvement are important parts for
making marketing strategies.
Selling Concepts – it refers that an organisation must apply an aggressive selling and promotion
effort. This concept purely focuses on making an actual sale of products.
Marketing Concepts this concept says that an organisation must be able to understand their
customer's needs for providing better satisfaction to them (Martin, Rosenbaum and Ham, 2015).
It is use for make strategic business planning, research reports, marketing planning and for
product development.
Social Marketing Concepts – it determines as that an organisation must have information about
target market and it demonstrates the social dimension of that company.
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1.2 Impact of Marketing Environment on business (THOMAS COOK)
For the analysis the impacts of marketing environment on business use PESTLE analysis.
It is use for make strategic business planning, research reports, marketing planning and for
product development.
This analysis describes the impact of marketing environment as follows:-
Political Factors – it states the policies, pressures and opportunities implied by political entities.
It includes political stability, government policies, foreign trade policy, tax policy, labour law
etc.
Economic Factors– in this factor, it includes inflation rates, economic growth, interest rates,
exchange rates, disposal income etc. which are divided into two major economic factors that are
micro and macro.
Social Factors– it covers society and population. It includes population growth, health
consciousness, career attitudes, age distribution (Kim and Law, 2015).
Technological Factors – technological factors affect marketing and its management. It covers
automation, research, development, and technological awareness that a market possesses.
Legal Factors – many laws and regulations can affect the business environment in a nation. In
this context, these factors include health and safety, advertising standards, consumer rights and
laws and product safety.
Environmental Factors – it includes all factors related to environment which can affect the
sustainable growth of an organisation. These factors are important because there are many issues
regarding business environment that are unavailability of raw material, pollution, increasing
level of carbon etc.
1.3 relevance of customer markets in the industry
Success of any business is fully depended on the customer satisfaction. THOMAS
COOK, a big brand in tour and travel industry also learns and grows because it satisfies its
customers in high level. Customer buying behaviour is an essential thing which can affected by
many factors (Randhawa and Perdue, 2016). This company is conducting an analysis and know
about its customer buying behaviour for increased profitability and market share. For this
analysis, there are implications of various components and makes strategies. Relevance of
customer is very important thing for this organisation because its services and profitability is
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affected by purchasing power of customers. The factors are as pricing factor, psychological
factor, web development and safety needs.
1.4 different market segments
Market segments are an essential and effective method for marketers to cover their target
market group. It helps them for determine their campaign, focus on necessary groups of
customers and target a specific audience in an optimum cost manner. This technique is used by
late 1900's. It is a simple process of classifying the market of customers into various groups and
segments on the basis of some factors (Leung, Bai and Erdem, 2017). These factors are age,
gender and it also includes psycho graphic factors like values, attitudes, interest and so on.
Hospitality market segment is focus on these things that are product, pricing and
distribution. Many company's sales and marketing managers spend their lot of time to identifying
their respective market segments. Once it identified, they focus on their sales and marketing
efforts to mine customers from those segments. Due to the continuously change in customer’s
preferences, their needs and numbers of product offerings, it is compulsory for every marketer to
segment their market in this hospitality industry. Identifying a proper segment allow the accurate
tracking and reporting about market.
TASK 2
2.1 Assessment the importance of marketing mix in the hospitality industry
Marketing mix is very essential thing in marketing. It is the core part of process of
marketing. Marketing mix consists of four P's. These four P's are product, price, place and
promotion.
These 4 P's with respect of Thomas Cook are as follows:-
Product – Thomas Cook is a big company which provides services regarding tourism. It is also
the owner of charter airlines, tour operators, Hotels4u and a booking website. It provides its
services through various 4000 travel agencies and there are more than 280000 employees are
working.
Price – Thomas Cook pricing policy relate to those people who are frequently travel anywhere.
It gives many offers to them like, a combination of travel plus financial services for increase
their revenue.
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Place – it is an international company which run its business activities in various countries
(Minazzi, 2015). Its headquarters is situated in Peterborough in England. Presently it has five
major distinct areas of its division. These are German Airlines, United Kingdom, Northern
Europe, West Europe and Central Europe.
Promotion – they adopt an aggressive marketing policy for increasing its brand awareness in
global market. For increase its customer relationship in the market it deals with several
sponsorships. Recently it has also become a sponsor of Peterborough football club.
2.2 Analysis of pricing strategies and policies in relation to the Thomas Cook
In the Thomas Cook Company pricing is an essential factor. It plays a main lead role in its sales and
its customer loyalty also increase because of its pricing policy. There are several points regarding to decide
its product price. It can be said that it is very important aspect for this organization. It helps to this company
for maintaining and increasing the image as best service provider in their respective sector. It cannot decide
the profitability and revenue because in the absence of pricing. So in this context it adopts the price skimming
strategy under which it takes very high prices of its services rendered rich class of people. Its major
advantage is that charging high prices helps to assist its finance to the flotation of new services. In initial
stage, the cost of production is very high (Kumar, 2015 ). They reduce it from its research and promotional
strategy. By applying this strategy the organization is able to capture market share, quick in sales and utilized
full capacity and keep the competitor away from market. There are also a different pricing strategy adopt by
Thomas Cook for attract the large number of customer. This strategy name is penetration pricing strategy.
TASK 3
AC 3.1 Role of promotional mix
Every company required to follow its marketing plan through marketing mix. In
marketing mix there are a factor comes that is promotional mix. Promotional mix is the group of
different promotional tools which helps to the business to maintain and increase the demand of
products and services. It includes public relations, personal selling, advertising and sales
promotion. In the context of Thomas Cook, these promotional mix tools are describes to create
effective promotional communication program. For this type of company advertising is an
important element of the promotional mix for increasing its number of service receiver. It is a
method of impersonal paid communication. Impersonal means one way communication. Thomas
Cook used newspaper, television, social media and internet ads to introduce itself in the target
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market. The second tool of promotional mix is public relations. This is applied for making better
relationship with public (Ozturen Gursoy and Kilic, 2017). It helps to the company to build a
positive image of company, evaluate public attitudes and supports to new service launches.
There is another tool is sales promotion. It contains technique of stimulating customer purchase.
It is usually based on immediate goal.
AC 3.3 Analysis the types of sales promotion and public relations
Sales promotion is applied for increasing the number of new customers. It is a technique
to deal directly to the customer, sales staff and distribution channels. The most common type of
sales promotion is discount, gifting, coupons, financing and sampling. Discount is known as
most common type of sales promotion. Gifting is also a way to attract new customers and it
increases sales. In this type assured gift also similar thing. Coupon used for motivate new
customer to purchase. Coupon is give along with discounts. Financing is the combination of
various factors. Any company which have many resources act like as financiers. Sampling is
distributed as free of cost. Public relation is a communication process with people to build a
strong relation between firm and its customers. It is beneficial thing for both. Any company uses
these functions of public relation to make a good relationship with people. Media Relations,
Investor Relations, Government Relations, Community Relations and Internal Relations.
Establishing a good relationship with all is too much beneficial for company. Every organization
can promote its product and services through these types of promotions.
TASK 4
AC 4.1 Relevance of market research
For every organization, there are an important process to define the appropriate target
market is market research. This process provides all beneficial information about the target
market and competitors. Thomas Cook conduct market research and it provides important
information to the company about market needs, competition and market size. It can also help for
providing better services and understand the customer preferences (Tresidder, 2015). Thomas
Cook properly followed the all process of this technique. It is recognized by its marketers that it
can be help in specific business and have high return on its investment. For this technique
company get better understanding of product designing, demand forecasting and features. It is
also helped in making better customer relationship. So that company manage and analyses
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customer interaction. It must be monitor the post purchasing satisfaction. Market research is a
process that helps to Thomas Cook to know about service industry and make it more customer
friendly.
AC 3.2 Plan advertising campaign.
This would be including various types of campaign which are to be used by Thomas
Cook as they are planning to introduce new service within their company which would be giving
mid-range of classic package for middle class people of UK. This product need to be promoted
among people of UK so that they could be able to communicate with most prospects who are to
be interested into this particular service. So the campaign would be mainly based on media
coverage like that of television, print media and social media as well (Bowie and Mariussen,
2016). If the company is opting television then they could be indulging in more budgets planning
and this could be including to as very expensive for company. If the company is choosing print
media like that of newspaper so this is very traditional method of campaigning by company as
very limited people would be seeing the advertisement on newspaper. So the best media which
company would be selecting could be social media as this is not requiring huge investments and
in today’s world everyone is using this social media to be upgraded with latest news around the
world.
Thus social media could be playing very essential role in spreading news, educating
people on large level so Thomas Cook would be showcasing their new service into market. This
would be helping people to know about what product company is launching and how could
company be attracting audience.
AC 4.2 Undertaking market research for an appropriate product or service
Thomas cook Company would be having variety of services which they are intended to
provide to all customers around the world like cost effective essential, classic and top range of
comprehensive superior package. Other than this they are providing insurance as per the
customers need like that of UK, Europe and Worldwide as well. Then it could be included to
have market research based on both primary and secondary on so that relevant data could be
gathered from these sources (Leung, Xue and Bai, 2015). So in this market research there would
be primary research undertaking having 10 respondents or customers of Thomas Cook. Company
would be launching new product related to mid-range of classic package for middle class people
of UK so for this there would be market research which is to be conducted.
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Questionnaire of the market research:
1. What are the present services which Thomas Cook is providing to customers?
2. What is the age of customers who are buying the product?
3. What is the frequency of customers buying product or service?
4. What is new targeted market?
5. Are the customers satisfied with current product of company?
AC 4.3 Analyse the suitability of different media for marketing an appropriate product or service
Thomas Cook is having various types of media in order to promote the products and
service which they need to sell to their customers like that of internet, direct mail and television
(Kumar, 2015). All of them could be selected by company in order to promoted or market their
product to targeted audience the choice of selecting could be that of management of Thomas
Cook.
Internet- this is the most effective course of media which is helping companies to promote their
products and service. This is also regarded to as most rapid and fast communicating system
which is helping company to reach larger amount of audience in just few minutes as well.
Direct mail- this could be sent to all customers or prospect directly through mail or post office as
well (Goffnett, Lepisto and Hayes, 2016). After the mail has been sent to customer they are
intended to give feedback to company about whether they like or dislike the product. Thus all
targeted customers could be able to learn about how effective product or service is with the help
of this direct mail.
Mobile device- this is also regarded to as the best form of media which is to be used by company
in this technological era. As mobile technology is getting more and more popular in today’s time
which is including both messaging service and online service. So this would be easy to make out
people to know about all various types of products and service and helping Thomas Cook to
acquire global recognition.
AC 4.4 Evaluate the implementation of the marketing plan for an appropriate product or service
Marketing plan is the strategy which is used by companies in order to achieve their goals,
objectives and targets related to marketing and selling including various components like that of
7 P’s, SWOT and PESTLE analysis (Minazzi, 2015). All of these would be telling about what
are the strategies which company need to achieve targets and set them in alignment with the goal
of company. The most effective and essential marketing plan would be that which is developing
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and growing Thomas Cook. So marketing plan which is been regulated should be devised as per
globalised era so that company is been able to meet success.
Customers are the main source or important part of this marketing plan as if company is
been able to retain them all then it is possible that they are gaining targets (Kandampully, Zhang
and Bilgihan, 2015). The management of Thomas Cook should be emphasizing on service and
advertising of all marketing activities for success of company.
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REFEENCES
Books and Journals:
Bowie, D., and Mariussen, A., 2016. Hospitality marketing. Taylor & Francis.
Goffnett, S.P., Lepisto, L. and Hayes, R., 2016. Using the socio-economic approach to
management to augment Lean Six Sigma. International Journal of Productivity and
Performance Management, 65(1), pp.80-97.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management, 27(3), pp.379-414.
Kim, H.H. and Law, R., 2015. Smartphones in tourism and hospitality marketing: A literature
review. Journal of Travel & Tourism Marketing, 32(6), pp.692-711.
Kumar, D., 2015. E marketing in hospitality industry Practices performance and service quality.
Leung, X.Y., Bai, B. and Erdem, M., 2017. Hotel social media marketing: a study on message
strategy and its effectiveness. Journal of Hospitality and Tourism Technology, 8(2),
pp.239-255.
Leung, X.Y., Xue, L. and Bai, B., 2015. Internet marketing research in hospitality and tourism: a
review and journal preferences. International Journal of Contemporary Hospitality
Management, 27(7), pp.1556-1572.
Martin, D., Rosenbaum, M. and Ham, S., 2015. Marketing tourism and hospitality products
worldwide: Introduction to the special issue.
Minazzi, R., 2015. Social media marketing in tourism and hospitality. Heidelberg: Springer.
Ozturen, A., Gursoy, D. and Kilic, H., 2017. Conference proceedings, 7th Advances in
Hospitality & Tourism Marketing & Management (AHTMM) Conference, Famagusta,
Cyprus, 10-15 July 2017. In Conference proceedings, 7th Advances in Hospitality &
Tourism Marketing & Management (AHTMM) Conference, Famagusta, Cyprus, 10-15
July 2017.. Eastern Mediterranean University and Washington State University.
Randhawa, P., and Perdue, J., 2016. Hospitality service innovations in private clubs. Cornell
Hospitality Quarterly, 57(1), pp.93-110.
Tresidder, R., 2015. Experiences marketing: A cultural philosophy for contemporary hospitality
marketing studies. Journal of Hospitality Marketing & Management, 24(7), pp.708-726.
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