Marketing Strategies for Thomas Cook

This assignment tasks you with analyzing and evaluating effective marketing strategies that Thomas Cook can implement to enhance its success. The focus is on three key areas: building customer loyalty through reward programs, utilizing sales promotions to attract new customers, and leveraging personal selling for direct customer engagement and feedback.

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MARKETING IN TRAVEL AND TOURISM
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MARKETING IN TRAVEL AND TOURISM
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Table of Contents
LO1 Understand the concepts and principles of marketing in the travel and tourism sector........................4
1.1 Discuss the core concepts of marketing for the travel and tourism sector....................................4
1.2 Assess the impact of the marketing environment on individual travel and tourism businesses
and tourist destinations............................................................................................................................4
1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism sector 5
1.4 Analyze the principles of market segmentation and its uses in marketing planning.....................5
LO2 Understand the role of marketing as a management tool in travel and tourism...................................6
2.1 analyze the importance of strategic marketing planning for a selected travel and tourism business or
tourist destination....................................................................................................................................6
2.2 discuss the relevance of marketing research and market information to managers in the travel and
tourism sector..........................................................................................................................................7
2.3 assess the influence of marketing on society.....................................................................................8
LO3 Understand the role of the marketing mix in the travel and tourism sector.........................................9
3.1 discuss issues in the product, price and place elements of the marketing mix...................................9
3.2 assess the importance of service sector mix elements to the travel and tourism sector....................11
3.3 apply the concept of the total tourism product to an individual travel business or tourist destination
...............................................................................................................................................................12
LO4 be able to use the promotional mix in travel and tourism..................................................................13
4.1 assess the integrated nature and role of the promotional mix...........................................................13
4.2 plan and justify an integrated promotional campaign for a travel and tourism business or destination
...............................................................................................................................................................13
References.................................................................................................................................................15
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LO1 the principles and concept of marketing in the travel and tourism sector
1.1 Discussing the core theories of marketing for the tourism and travel sector
The perception of marketing in the travel and tourism sector can be described as a very crucial
fact. It can be justified by providing the pros and cons of marketing in the field. Here in this case
Thomas Cook is a renowned Tourism and Travel Company in UK which is going to hold a tour
in Morocco. Here in this case the main motto of the company is to provide the best service to the
people of UK by making the tour a comfortable one for them. First of all the organizer of the
company must understand the trends of the market and the demands of the customer. Based on
which the tours and the travels must be arranged. The effects of marketing can help the company
to understand the needs and the demands of the customers. In this scenario if all the needs and
the demands of the customers are fulfilled then one can say that the business will be able to
create a positive impression in the market. On the other hand a proper marketing can be effective
in order to decide the price of the holiday packages for the customers. There are different types
of customers in the market who has different financial condition and all of them must get the
attraction to use the servitude of Thomas Cook. In short, the concept of marketing actually helps
the customers and the organization to build a solid relationship. Both the interested customers
and the company get the benefit from it.
1.2 Assessing the influence of the marketing environment on specific tourism and travel
industries as well as tourist destinations
The marketing situation can play a decisive role in every single business scenario. It can be said
that the environment of the market can effectively change the outcomes of the industry. There
are two types of marketing background that Thomas Cook must consider. The external
environment of the market is the most effective market environment where several factors all
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together can affect the business. The factors such as economic, political, social, environmental,
technological as well as legal can change the scenario of the business. Moreover the internal
factors of the market where the employees of the company, the total investment, the equipment
of the business and the competitors’ strategies are included. Thomas Cook needs to go through
the marketing environment thoroughly in order to be effective in the field of business (Keller,
2009).
1.3 Discussing the factors moving consumer inspiration and demand in the travel and tourism
sector
The attractions and the price of the packages play a vital role here in order to motivate the
consumers. When it comes to the part of tours and travels the consumers always prefer to travel
the best part of the world in an affordable rate. So the main factors that affect the motivation and
the demand of the customers are the attraction and the prices of the packages. Thomas Cook has
to believe that there are different types of customers in the market whose financial conditions are
not the same. So the company must decide the price of the packages and the destination of the
tours in order to motivate the customers by fulfilling all their demands.
1.4 Analyze the ideologies of market segmentation along with its uses in marketing planning
The market segmentation is the key part of marketing where the people of the market decide the
success of the business. It is obvious that in the different segment of the market there are various
customers who have variety of demands depending on their mentalities. In this scenario market
segmentation becomes very necessary for any business in order to know about the criteria nad
the demands of the customers. Market segmentation can be done by dividing the market in many
parts like, demographic, psychographic, geographic and behavioral (Roger, 2012). Demographic
segmentation of the market tells about the age, gender, income, standard of living of the
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customers. Geographic segmentation tells about the locality and the location of the customers.
Psychographic segmentation elaborates the psychology of the customers in different aspects of
the market. Lastly the behavioral segmentation tells about the behavior of the customers in
different aspect of the business. Thomas Cook must go through all the segmentation properly in
order to know about the customers in the market. It will help the company to continue the work
flow inside the environment of the organization.
LO2 the role of marketing as a management tool in travel and tourism
2.1 analyzing the significance of strategic marketing planning for a designated travel and tourism
business
In a travel business, strategic marketing planning is necessary for the growth of business. There
are many reasons behind the implementation of a marketing strategy for a particular tourism
business. Thomas Cook needs to know the reasons before implementing a strategic marketing
planning for making a tour in Morocco in 2018 summer. The strategic marketing plan consists of
SWOT analysis, Boston Matrix, Ansoff's Matrix, and Product Life Cycle and so on. Initially,
Thomas Cook needs a marketing strategy for identifying their ideal customers. The ideal clients
of the company will dictate all the marketing activities(Puri and Chand, 2009). Therefore, it is
significant to recognize this persona before Thomas Cook decides on what tactics to employ.
Secondly, the particular tourism business needs a strategic marketing planning for identifying
what they want to accomplish from the efforts made in marketing. A significant function of the
organization is to set objectives and goals for the business. The particular strategic marketing
planning helps the organization to report on their return on investment. At third, Thomas Cook
needs a strategic marketing plan for articulating what sets the company apart from the
competitors. If the organization knows what makes their business unique from their competitors
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in the tourism industry, then they can grow their business with that single factor. It is a very
powerful tool to achieve competitive advantage(Puri and Chand, 2009).
A strategy called SWOT analysis is important for Thomas Cook for identifying the strength,
weakness, threats and opportunities of the company. It also helps the organization to identify the
most critical areas that need to be improved and upgraded for a smooth operation of the tourism
business. Thomas Cook may face threats from the competitors. The appropriate analysis helps
the tourism business to make strategies to beat the competitors and accomplish competitive
advantage.
2.2 The relevance of market information as well as marketing research to managers in the travel
and tourism sector
It is imperative for the managers of the tourism organizations to perform a market research and
collect information from it. Tourism is a rigorous information industry which generates a large
quantity of information which is to be processed as well as communicated. Role, influence and
relevance of information system in the travel and tourism organization are very high particularly
in policy making, planning, operations as well as management(James, 2006). Moreover, the
various areas of application of information technology in Tourism industry can be broadly
classified into the following classifications such as Electronic ticketing or e-ticketing, Global
Distribution System or GDS, Property Management System or PMS, Point of Sale System or
POS, Geographic Information System or GIS, Virtual Reality System or VRS and Travel
Recommender System or TRS. By 2020, the World Tourism Organization or WTO has predicted
that the international tourist who will go to Asia and Pacific region will increase significantly.
The manager of Thomas Cook needs a market research and market information on Morocco for
providing information to their customers as a travel guide. According to the directors, Morocco
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is anaromatic mix of cultures, languages, ancient traditions,modern sensibilities as well as
religions. Besides that, it invokes up images of tagine, date plantations, mint tea and minarets,
spice stalls, labyrinthine medinas and pungent. On the other hand, Jack Kerouac, Winston
Churchill, and Jimi Hendrix were all drawn to this enticing North African nation. The country
continues to pique the attention of inquisitive minds today. Morocco has a famous beach known
as Essaouira Beach which is an attractive place for holiday making people(James, 2006). A
market research on different areas of the world helps the organization to keep an update on the
various cultural events happening in different places. Customers are very curious to know about
the place where they want to visit with a tour company. Therefore, the information should be
provided to them for their satisfaction.
2.3 assessing the effect of marketing on society
One of the courses in which marketing profits society is by encouraging and educating
purchasers. Marketing on tourism gives strategies for getting some answers concerning new
services and what they do for customers with clearly depicted requirements. Marketing every
now and again has an alluring desire, yet it begins when an association recognizes a customer
need and hopes to illuminate how its things or organizations address that issue(Atherton and
Atherton, 2011). Other than supplying purchasers with practical information about services and
products of Thomas Cook, marketing can in like manner help set and supervise customer wants.
Marketing can moreover incorporate more timely information to help with making a purchase,
for instance, phone numbers, addresses, release dates of products and services, Web addresses
and store hours. Clients rely on upon reliable brands and the reliability that begins from brand
steadfastness. They correspondingly use information from client backing social occasions to get
some answers concerning which brands are most tried and true and address the best
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values(Huang and Chuang, 2013). Thomas Cook uses marketing to take off clients aware of
substantial upgrades, for instance, mergers and moves under lock and key that impact thing
offerings or hope to improve quality.
Government directions shield publicists from making false or deluding claims. It empowers
purchasers to settle on taught decisions without a same number of perils from they would go up
against in case they expected to purchase without the upside of marketing. Marketing drives a
customer economy, propelling stock and ventures and concentrating on purchasers well while in
transit to twist up purchasers(Atherton and Atherton, 2011). Higher arrangements for a business
that uses viable marketing strategies change over into the advancement, work creation, higher tax
salary for governments and, over the long haul, general economic improvement. In like manner,
the marketing industry itself makes jobs and wealth as Thomas Cook search for new and
inventive ways to deal with propelling themselves and their things. Purchaser enthusiasm for
marketing in new scenes, for instance, makes new branches, cell phones of the marketing
industry and advances improvement.
LO3 the role of the marketing mix in the travel and tourism sector
3.1 discussing the issues in the price, place and product elements of the marketing mix
Here, the issues regarding product, price, and location of the marketing combination of Thomas
Cook are being described here.
Product:The combination of intangible and tangible elements is known as the product. In the
tourism industry, there is no product. The product is replaced by destinations which are provided
to the potential customers of Thomas Cook. Thomas Cook may face serious issues while
delivering a package to their potential clients. The destination is Morocco. Issues such as
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booking of flights, booking hotels and rooms, weather and climate of Morocco, foods of
Morocco and other matters related to Morocco impacts largely on the business of Thomas
Cook(Mistilis and Daniele, 2004). According to Thomas Cook, the tourism product may vary
from location travel to the journey's end, entertainment at the destination as well as the facility
and accommodation. Each of these modules has its importance in the product mix and the
nonappearance of even single constituents, the product mix is imperfect.
Price:Pricing is the major factor which plays a significant role in selecting a destination for the
customers. Here, the pricing is made for Morocco. Morocco is an expensive place, and the
customers have to provide the basic prices which are high(Meyer, 2003). Therefore, Thomas
Cook should provide the customers with extra benefits during traveling time such as providing
foods which are necessary during journey hours. Moreover, pricing depends on seasonality. The
tourist manager of Thomas Cook should try to get a discount for matching the supply and
demand of that destination. The objective of pricing by Thomas Cook is to fetch a target market
share(Vilchez, 2012).
Place:The marketer of tourism may not have a satisfactory choice of the tourist center because in
most of the case the tourist destinations may be a historical attraction and natural attraction.
Various strategies on distribution may be selected to imitate the overall objectives of Thomas
Cook. The distributor may be tour operators, who buy travel products in bulk and make them
accessible to travel managers who are sellers(Vilchez, 2012). The range of tourist products,
which are purchased by the tour operators are bus for local touring, hotel lodging, etc. they may
also sell straight to clienteles. But, transportation, infrastructure facilities as well as
communication are necessary for the expansion of the tourist center. Besides, the foremost
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decision that the marketer of tourism takes concerning delivery is relating to the conduit of
choice and station members.
3.2 assess the importance of service sector mix rudiments to the travel and tourism sector
The service industries mix of a tourism industry consists of internal marketing, quality of service,
interactive marketing, packaging, programming, partnerships, and people. The task of the
marketing division is to perceive and orchestrate events to address issues of potential customers
and to guarantee the association offers the benefit events at the right cost to the right customers
at the perfect time. Moreover, strategy of Thomas Cook on market division is to endure
assigning benefits by existing cost saving and change arrangements viable grasped by Thomas
Cook(Beeton, 2005). It has the objective that they can create wages in current and new, publicize
segments and pass on efficiencies from being a bit of a greater social occasion. Thomas Cook
gives a careful thought on their flyers introduction page as it's the most essential since the client
will see, as an issue of fundamental significance, the cover must, in this way, be expected to be
appealing.
Exactly when clienteles are saving events with Thomas Cook to an objective that disastrous
occasion happens they are forewarned that the season they have to travel is disastrous event
season i.e. Thailand-Patong beach, where the tsunami hit the shoreline in the year 2005 in like
manner the hurricanes Paloma Cuba in the year 2008(Hong, 2008). Extending the cash related
organizations offering of the Enlarged Group through the introduction of new services and
products and by developing the reputation and limits of Thomas Cook around there. The
passionate improvement in the use of the web starting late to research and booking events is
significantly influencing the way that visits overseers offer their events. Rises in the cost of oil
and other customary resources can push up a tour executive's costs and impact its advantage. The
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present change in the planet currency exchange rate can wipe out a visit chairman's net incomes
overnight. Thomas Cook has online leaflets where clients can download and look through it in
comfort of their home, and when they are inside and out done and have settled on a decision on
where to travel, they can retreat on the website and book their excursion(Rath, 2015). Thomas
Cook visit executives use different strategies to endeavor and diminish the impacts of these
conditions.
3.3 the concept of the total product of tourism to an individual travel business
Tourism is a vast industry which consists of many private industries like an airline, hotel,
trekking agencies as well as travel agencies. However, these internal agencies provide their
customers with individual products for a traveling experience. A visit to a tourism destination
includes a mix of numerous components of various tourism companies. Additionally, a traveler
may buy all the component related to tours and travel, commercial suppliers. Suppose taking an
example, travel agency as a unique merchandise or may purchase the component associated with
a travel agency from different providers(Durbarry, 2008). Moreover, the product of tourism is
the total experience of the tourist. It comprises of every person and everything they come into
contact during their holiday session. The product of travel is anything that can be offered for
attraction, achievement or depletion. The product of the trip consists of physical objects,
personalities, place, ideas, organizations as well as services. Besides that, the product of the
journey is more than mere accommodation or attraction.The development of tourism product
should be guided by the type of experience needs to target the market seeks. Not all travel
products are appropriate to be promotedworldwide on an individual basis, predominantly smaller
products positioned outside of the main entrance cities, not related to foremost wildlife or
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tradition destinations or off established tourist routes(Durbarry, 2008). Also, it is indispensable
that these products validate apetition that is not accessible to more available destinations.
LO4 Using the promotional mix in travel and tourism.
4.1 assessing the integrated role and nature of the promotional mix
In travel and tourism business, promotional mix plays a significant role in promoting
organizations to the potential customers. The promotional mix of the tourism industry consists of
public relations, advertising, sales promotion, selling, online and internet promotion, direct
marketing, integrated communication, budgetary considerations and so on. Thomas Cook has
also implemented promotional mix such as online and Internet advertising strategy(Sidhanta and
Chakrabarty, 2010). Online advertising is done by posting updates like new pictures and videos
about the destination Morocco to the Facebook Users. The tourism organization can use
YouTube to promote their business to the potential customers. On the other hand, Thomas Cook
can apply Cross-functional strategic approach as an integrated communication. The particular
strategy is a customer centric approach which involves drawing more customers towards the
organization. Direct marketing also plays a major role in the promotional mix. Direct marketing
is useful for setting realistic expectations. Direct marketing determines whether or not the
company's direct marketing campaign is successful, Thomas Cook will require setting objectives
ahead of time(Sidhanta and Chakrabarty, 2010).
4.2 plan and justify an integrated promotional campaign for a travel and tourism business or
destination
Here, sales promotion and personal selling are implemented as a promotional campaign from
Thomas cook for promoting the business. If Thomas Cook can perform sales promotion as a
promotional campaign for tourism and travel business, then they can lure new customers with a
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price. Thomas Cook can attract customers away from competitors by offering them a reduced
price on popular destinations. Moreover, the tourism business can gain community favor. The
organization needs to crest a good name for the firm by performing a promotion that supports a
worthy cause. On the other hand, sales promotion also leads to encouragement of repeat purchase
by the old customers. Businesses such as hotels and airlines successfully implement reward
programs for encouraging the loyalty of the customers(Fletcher, 2002). Moreover, sales
promotion also helps an organization to entice reluctant clients. If Thomas Cook can give free
products or service along with an individual package, then the company can attract more
customers and gain competitive advantage. It should be done in season times. Apart from sales
promotion, personal selling will help Thomas Cook to make a two-way communication system.
It will also contribute to an organization get immediate feedback from the customers. Immediate
feedback is imperative for the travel and tourism organizations to determine their business
operations. A positive customer feedback determines that the firm is going well whereas a
negative feedback leads to the loss of business. A positive feedback leads to the satisfaction of
the clients and helps organizations to gain customer loyalty and trust.
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References
Keller (2009). “A Framework for Marketing Management,” 4th ed., Pearson Prentice Hall.
Roger A. (2012). “Marketing: The Core,” McGaw-Hill Ryerson. p. 31.
Atherton, T. and Atherton, T. (2011). Tourism, travel and hospitality law. 1st ed. Rozelle,
N.S.W.: Thomson Reuters/Lawbook Co.
Beeton, S. (2005). Film-induced tourism. 1st ed. Clevedon: Channel View Publications.
Durbarry, R. (2008). Tourism Taxes: Implications for Tourism Demand in the UK. Review
of Development Economics, 12(1), pp.21-36.
Fletcher, A. (2002). Promotional Products. Journal of Promotion Management, 8(1), pp.1-2.
Hong, W. (2008). Competitiveness in the tourism sector. 1st ed. Heidelberg: Physica-
Verlag.
Huang, L. and Chuang, C. (2013). The development of an optimal multiple channel strategy
model for travel agencies' tourism business excellence. Journal of Travel & Tourism
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James, S. (2006). Travel & tourism. 1st ed. Ultimo, N.S.W.: Career FAQs.
Meyer, D. (2003). What Price Tourism?. Development Policy Review, 21(3), pp.383-387.
Mistilis, N. and Daniele, R. (2004). Challenges for Competitive Strategy in Public and
Private Sector Partnerships in Electronic National Tourist Destination Marketing
Systems. Journal of Travel & Tourism Marketing, 17(4), pp.63-73.
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Puri, M. and Chand, G. (2009). Travel agency and tourism. 1st ed. Chandni Chowk, Delhi:
Global Media.
Rath, B. (2015). Human Resource Development in Tourism Sector: A Case Study of Orissa
Tourism Development Corporation Ltd. (OTDC). International Journal of Tourism and
Travel, 8(1and2).
Sidhanta, S. and Chakrabarty, A. (2010). Promotional Mix And Corporate Performance - An
Empirical Study. Paradigm, 14(1), pp.97-102.
Vilchez, J. (2012). Valuing Tourist Destinations: an Oaxaca-Blinder
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