Impact of Marketing Environment on Travel and Tourism: A Report

This report provides a comprehensive analysis of marketing principles within the travel and tourism sector, using Thomas Cook as a case study. It begins by exploring fundamental marketing concepts, including customer and profit orientation, system orientation, and social responsibility. The report then delves into the impact of the marketing environment, examining macro, micro, and market environments, and their influence on travel businesses. It also discusses factors affecting consumer motivation and demand, as well as the principles of market segmentation. The report further covers the importance of strategic marketing planning, the role of marketing research, and the influence of marketing on society. It addresses issues in the marketing mix, service sector mix elements, and the application of the total tourism product. Finally, the report examines the promotional mix in travel and tourism, including planning and justification of promotional campaigns, offering a holistic overview of marketing strategies in this dynamic industry.

Travel and Tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Concepts of Marketing in Travel & Tourism........................................................................3
1.2 Impact of Marketing Environment on Travel & Tourism.....................................................4
1.3 Factors Affecting Consumer Motivation & Demand.............................................................5
1.4 Principles of Market Segmentation & its uses in marketing..................................................6
TASK 2............................................................................................................................................7
2.1 Importance of Strategic Marketing Planning.........................................................................7
2.2 Relevance of Marketing Research & Market Information....................................................8
2.3 Influence of Marketing on society.........................................................................................9
TASK 3............................................................................................................................................9
3.1 Issues In Elements Of Marketing Mix...................................................................................9
3.2 Importance Of Service Sector Mix Elements......................................................................10
3.3 Application Of Total Tourism Product................................................................................11
TASK 4..........................................................................................................................................11
Promotional Mix in Travel and Tourism...................................................................................11
Planning and justification of the Promotional Campagin..........................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
As the rise in globalization has been witnessed and the upliftment of technological trends
have shown that many new innovations and creative things have come up. This change has made
the people more fascinated about the new things in the markets like gadgets and more. Thus
between all this one industry hs made his way and build its structure so strong till date that now
this industry has become the major industry for governments to generate revenue and develop the
country(Díaz, Martín-Consuegra and Esteban, 2015). Travel and tourism sector has grown up
with the space in the recent times and thus the purpose of study of this research is this, as the
influential factors and elements should be undertaken so it can be known that whether which
things have made the sector to grow. With this the report has been undertaken in order to make
some conclusions for the businesses dealing in this sector whether which are the traits, which can
be followed in order to make the profitability levels to raise. Thus for this purpose company
undertaken is Thomas Cook.
TASK 1
1.1 Concepts of Marketing in Travel & Tourism
The marketing concept holds that achieving organizational goals depend on determining
the needs and wants of the target market and delivering the desired product or services more
effectively and efficiently then competitors .
The concept of marketing aims to satisfy the customers wants and needs. The concept of
marketing is divided into four principals.
 Customer orientation: The first principle of the marketing concept is customer
orientation. It means that all the efforts has to be done to make the customer satisfy and
fulfill their needs and wants. Its says that the 'customer is the king' .customers are the
focal point(Szopiński, and Staniewski, 2016). It focuses on the relation with customer ,
retaining customers , quality. Travel and tourism organizations is a service provider
companies , which depends only on the visitors so they have to provide then the good
services so that they can increase their customers.
 Profit orientation: The second concept of marketing focuses on achieving goals of the
organization. Management provide customers services to satisfy them at at a cost so that

they can also achieve the goals. Organizations are made earn profits. The main aim is to
make more and more profit with the customers satisfaction(Johnston, Crooks and
Ormond, 2015). Travel and tourism increase their profit by providing various schemes to
the customers for example the make the discounted rates holiday trips.
 System orientation: A system orientation means that the units of groups work together
to achieve the goal or joint objective of the organization. It includes all the departments
of the organization. Each department has his role and have to achieve their goals to meet
the organizational objectives(Naidoo and Sharpley, 2016) . The system orientation
implies that the travel and tourism organizations must coordinate towards the
achievement of the satisfactory rate of return on investment. System orientation includes
the whole body structure of the organization all have to play their tole to achieve the
targets.
 Social responsibility: Social responsibility is the concept that says that every
organization is the part of the society where it exist(Gordon and Harris, 2015). Marketers
should maintain the balance between the customers needs wants satisfactions and the the
societies long term interest. Social responsibility does not only include external groups
such as public. The organization also had the responsibility towards the employees
housing , health programs. Social responsibility also means that the organization will
abstain from any action in conflict with current norms and moral(Gilaninia,
Mohammadi and Rasht, 2015).
1.2 Impact of Marketing Environment on Travel & Tourism
Travel marketing has several factors which has nothing to do with the travel. The travel
organization must respond to financial consideration, global events and the tastes of the traveling
public .Marketing environment is the common platform for the interaction of all the features of
marketing. It not only includes the external elements but also the business related elements
which affect the direct or indirect activities of market and business(Huang and et.al, 2016).
Thomas cook is the travel and tourism service provider. The company exits to provide the
travel service to customers at almost every important place or destination across the world.
Company has to realize his approach so that they can came to know about the changes happening
over the places in every corner. The company also looks after the various fluctuations of the

market . The company faces the problem regarding the customers trends and social factors. The
personal decision to spent the holidays come from various social factors. The relationship
between society and company is important they both are dependent upon each other(Weidenfeld,
Williams and Butler, 2014). The strategic and marketing management of Thomas cook work
toward the three types of marketing environment.1. Macro environment- macro environment includes the external factors such as political,
social , technological, legal and economical development . For example change in the
interest rates, change in culture tastes , weather or government rules and regulations. The
company should have a look over the conditions of the countries
environment(Wondowossen and et.al, 2014). This factors are uncontrollable by the
organizations.2. Micro environment- This elements are controllable by management .it includes business
related internal factors. Internal factors includes competitors, supplier, marketing
intermediaries, worker and their union. The decisions are made from the top
management and that can effect the business approach. This factor affects a lot because
this change the market outlook of the company(Ahmad and Saber, 2015). The companies
image is also impacted due to the internal factors
 Market environment- the last component affects the entire business operations and
management of Thomas cook. Different players in the market establish the environment
of the market. The market environment includes all the third parties, suppliers and
customers. marketing environment includes the internal as well as external environment.
Market environment has to be managed by the management so that they can survive in
the market(Hudson and et,al, 2015). All the components affect the environment of the
business and the organization.
1.3 Factors Affecting Consumer Motivation & Demand
In present scenario; there are lots of authors who defined the theory of motivation as a
determinants of tourist behavior. And also consumer behavior is mostly likable area in the field
of tourist demand and need. But to include it states that the theory of consumer motivation is
purely based on the concept of need. It is essential to identify that what tourist needs and wants.
there are various determinant that are affecting the consumer motivation and demand, some of

those are as follows: tourist motivation and determinants: this is one of the most important factor
that affect the consumer motivation and demand. Every time the application of consumer
motivation theory in the field of tourism is to be considered as most relevant part, because
motivation is become the most critical variable of the decision making process(Zamani-Farahani
and Eid, 2016).
Models of consumer behavior: the term consumer states that they are the consumer of
product and services or we can say that they are the end user of the product only. Consumer
behavior is very from person to person so it is hard to identify the needs and wants of all the
consumers. their are various types of factors that influence the consumer motivations and
demands these are some kind of cultural, social, personal and psychological. These factors plays
an most important role in change of consumer behavior from person to person. The next factor
which affect the consumer motivation and demand is consumer decision process(Chan, Hsu and
Baum, 2015). This is also very from consumer to consumer because some consumers take
decision as per their own and some are depends on the feedback of others like on their friends or
relatives. So understand of this type of decision is most challenging part. Their are various type
of buying behavior of the consumer that affects. This is also depends upon the consumers
because every consumer has its own desire, they want different goods and services so satisfy the
needs and demand of all those are more difficult. This is one of the major challenge face by
every one(Vila, Darcy and González, 2015).
The other factor which affect the market is value chain. The word value chain denotes
that the process or the activities which adds company to define values of an articles. It includes
all the value of production, marketing and all the provisions of after sale services etc. And the
last factor that affects is the customer values and satisfaction. It means the amount of benefits
achieve by customer after purchasing all the products and all services which they requires. And
after getting all those services and products they satisfy their needs and wants(Blazquez-Resino,
Molina and Esteban-Talay, 2015).
1.4 Principles of Market Segmentation & its uses in marketing
Market segmentation denotes that the division of business market and consumer. They
divide them as per their income, gender, lifestyle and as per their interest. Segmentation is also in
many ways such as business to business (B2B), business to consumer (B2C) and as per their

behavioral segments. In division of market, researcher looks as common needs, common interest
and similarities in their demographic profiles. There are various principles of market
segmentation, few of them are as follows: Firstly we look market segment as per the target and
positioning. It is most common market segment. It is one of the familiar approach of modern
marketing. It states that process of division the market with similar product needs and identity
into small groups. This is one of the most usable approaches in market segmentation. There are 2
bases on market segmentation's. They are as follows:
 Traditional base: under this market is segment in geographic and demographic ways.
Geographic way is one of the simplest method of market. According to this market is
segmented as per region wise, Like country to country, states to states or district to
district. For e.g. lifestyle of products sells good only big cities or metro cities like in
Mumbai, Delhi, Kolkata etc. And the other is demographic way. This segmentation is as
per age, sex, education, income level and as per their occupations. This is a very crucial
way of market segment. As per age segmentation we can segment the like teenagers,
adults, retired. In sex we segment as male or female(Agiomirgianakis and Sfakianakis,
2014). As per occupations we segment them as per the agriculture, industry, students,
trades etc. and as income level we segment them as above 1 lakh, 50,000 to 1 lakh and
less than 50,000 per annum so we classified them s rich, middle and poor. And last
according to education we segment them as per their education level or as per their
degrees or we can segment them as per the percentage that they earn in same type of
educations.
 Modern base: As per this we can segment the market in psycho graphic and behaviorist
ways. Psycho graphic segmentation states that segmentation as per the innovators, early
adopter, early majority, late majority and laggards(Hsu, Lan and Tsai, 2015). And
behaviorist segmentation as per the purchase occasion, benefit sought and user status. By
all these we can segment our market as per modern ways.
Out of these market is segmented as per the product life cycle. Under this market is
segmented as per the products introduction, growth, majority and declines.

TASK 2
2.1 Importance of Strategic Marketing Planning
A marketing strategies doesn't have to be complex. Their are many reasons why it is
important strategic marketing planning.
 To identify your ideal customers- it is the most important that we have to identify the
ideal customers, so it important to identify the persona before we decide on the tactics.
Without knowing the ideal customer we could not spent time and money on those who
are not interested in service or the management may target those who are not interested
to take their services. Before implementing the marketing concept the management have
clear the the target market(Agiomirgianakis and Sfakianakis, 2014) . They should be
focused on it. Ones the management starts to marketing and then if they came to know
that the target market was not of their interest it will be a huge loss to the organization.
 To identify what you want to achieve from your market efforts- the kind of marketing
the management is doing they should be clear message to the target customer so that the
company can achieve the set goals. The effort should be according the achievement that
has to be achieve.
 To articulate what sets you apart from competitors-what makes your business unique or
apart from competitors. It is very important to do so that we can attract the customers
more than the competitors . Customers will only attract towards the uniqness.
2.2 Relevance of Marketing Research & Market Information
Marketing research motive is to collect the important information from the customer. In
the case of tourism the tourist are the customers. The tourism organization has to maintain the
good relationship with the customer. Marketing research is an important tool on fulfilling such
needs of the customers. Marketing research provides the information which helps the
organization to meet the customers satisfaction , wants and needs(Agiomirgianakis and
Sfakianakis, 2014). The organization can came to know about what facilities and services does
the customer required. The tourism organization ca came to know in which they have to get
improved. To know the effects of the marketing strategies that has been applied and what was
the affects of that marketing. To conduct the marketing research the most important element we
need to required is to ask the right questions to the customers. The questions will lead to the

conclusion . Once the data is collected it is easy to evaluate the planes and the decisions to
satisfy the customers or to make or attract more customers. It will help to provide better service
to customers. Decisions which may be improve by research as improvement of facilities, more
entertainment activities and customer services. If the customer will be satisfy he will visit again
to take the services. The method of research must always be taken into the account. The
customers should always been given time to answer the questions(Hsu, Lan and Tsai, 2015) .
The tourism trend may change in over period of time. Conducting the marketing research is not
an easy task to perform . It requires lots of planning and evaluation . Marketing research helps
the tourism industry to know about the taste , preference, and it leads to make the decisions to
improve the customers satisfaction and services that had to be provided.
2.3 Influence of Marketing on society
The marketing influences the the society, society has the customers and the marketers
have to influence them . The marketing is the only way by which the customers get attracted or
they are the only one who can influence the customers in the society. Make them feel uniquely
special . Offer lots of information to the society or to the customers. Customers look for the
trustworthy person on whom he can trust and takes the services. Marketers have to influence I
such a way that he thinks that he is making the decision to take the services. Marketing provides
the special offer to the customers to attract them. Marketers has to understand the behaviour of
the customers to influence them. It is important before influencing. Customer behaviour is out of
control. The customers expectation are always higher then the organization would deliver to then
that's why its not easy to influence them(Loh, 2015). An organization practices are what the
customers experience. Relationship with the customers is an retention strategy. It is not easy to
understand all the types of customers . The well cleared message should be given to the
customers. Observe the customers observes hos behaviour will help to influence them. Marketing
can be positive or negative impact on the customers. Influencing can be easy if you creat a need
for hom to take the services . The marketers have to make then feel that they will required that
services and will enjoy that services and they have to make feel then that they are the one who all
are getting this services on the best price(Gu, 2014).

TASK 3
3.1 Issues In Elements Of Marketing Mix
Marketing mix are the combination of all the factors which is controlled by the company
to influence the customers to consume the products and services. Marketing mix are the 7p's of
marketing i.e. product, place, price, promotion, people, process and physical environment. These
7p's are elements of marketing. And there are lots of benefit of marketing mix such as; they help
to allocate responsibilities, they also provide a valuable guide for resource allocation and also
they facilitate communication processes(Andreopoulou and et.al, 2014). But there are some
ethical issues in marketing mix. Few of them are as follows:
 Product issues: People purchase products to satisfy their wants but there are many types
of needs of consumers and need is vary from consumer to consumer. Mainly food and
cloths are two necessary needs which is different from people to people. For e.g. doctors
does not have the same clothing needs that a hawker and paddler's needs. And also need
of food is different like some want vegetarian food and some wants non vegetarian food.
 Price issues: Price are purely based on the market demand and supply of the product.
And also it defines as per the competition and their substitute prices. In present scenario
this issue is most common. Because every product has substitutes so that fixing of their
prices is one of major deal.
 Place issues: Every people or every consumer want to purchase their product as per their
nearest place, where they can reach easily. Or the places where all different type of
product and quality with quantity are available(Andreopoulou and et.al, 2014). This is
also a major issue which face by the company under marketing mix.
 Promotion issue: presently, A big question is raise in front of every company is “how to
promote” and “where to promote”. Nowadays company promote their products with a
strategy, like advertising, public relations, sales promotions etc.
But there are number of competitors and also lack of money, places, quality and the
proper prices all these issues are created.
3.2 Importance Of Service Sector Mix Elements
Service marketing mix are the combination of all the service marketing which is use by
the companies to communicate about their brand, value and also about the organisation to the

customers. Nature of services are perishable and they also are intangible or heterogeneous. In
travelling and tourism business services play a vast role. And their business is purely depends
upon their services. Service sector are the mix of all 7p's of marketing i.e. price, place,
promotion, people, process, product and physical evidence. In service sector travel marketing is
unique. It is different from others and also in traveling and tourism areas customers wants to visit
the places where product is situated(Andreopoulou and et.al, 2014). Under this location of
service deliver is most important. Service sector is most important because of its hospitality.
Service sector plays an important role in every travel and tourism scenario. They are the essential
part of them. Service sector increases the brand value and image of the company. And they are
now need of every organisation. In travelling and tourism service sectors increases their
productivity and customer satisfaction so that they enhance their business. Nowadays every
organisation prepares their own service centre. For e.g. every telecom industry must have their
service sector in every cities infect 5-10 in big cities. Or we can saw in travelling and tourism
area they need service sector without it they can not survive.
3.3 Application Of Total Tourism Product
Anything which is offered in the market to the consumer for consumption or for usage as
per their required and needs are called product. In other words we can say that anything that can
be offered in the market to satisfy needs and wants of the consumer by using and consummating
or by acquisition are called product. Tourism product are the sum of physical and psychological
satisfaction of the customers(Andreopoulou and et.al, 2014). They provide to tourists during
their travelling periods. These products help in getting revenue for their destination. There are
some components of tourism product such as; accessibility and accommodation. It means that
where tourist can reach and attract from them. And accommodation plays a central role in
tourism. It has also lots of characteristics such as intangibility, psycho logicality, highly
perishable, composite product and unstable demand, fixed supply in short run. And the major
thing in tourism product is ownership remains constant. In other words, There is no transfer of
ownership of the product. But these products are too risky and too expensive, Like motor car,
hotels etc. Many types of event also attracts tourist like kite festival of Ahmadabad attract people
to come and enjoy. And also tourist can be spectators for those events which is famous in whole
world. So the tourist attract from them and came so increasing the sales of the products. Total

tourism products are many types like vehicle, accommodation, places, services, events these can
be tangible or intangible comes in the category of products(Andreopoulou and et.al, 2014).
TASK 4
INTEGRATED NATURE AND ROLE
OF THE PROMOTIONAL MIX
Promotional Mix in Travel and Tourism
As Thomas Cook has been delivering quality services to its stakeholders and customers
thus it has made the people more attractive towards its services and offers. Thus in turn
it has been seen that people are more concerned now a days for low fares and more
facilities and thus Thomas cook needs to deliver the campaign s to make a move which
will make him deliver the product that is wanted by the different set of customers thus
this has facilitated the Thomas cook to deliver the campaigns which attract more and
more people in order to have that advantage(Andreopoulou and et.al, 2014). Thus to
make a sound promotional campaign for its future operations they have to follow a
promotional mix which in turn will help the firm in coming up with different set of
campaigns and policies and offers. The several types of elements of promotional mix
are:
 Personal Selling: Personal selling deals with selling the products in the market
through the help of the sales representatives and going to each door and making
them know what you sell. Thus this is new generation and this kind of tactics
will not give any competitive advantage to the cited firm.
 Direct Marketing: In direct marketing people used to promote products by
launching the programs or banners or poster and flourish them across the trget
markets and then, they fill the entries they receive from that. This process is
pretty cool for Thomas cook as it will help in generating the large base of
customers.
 Advertising: Advertising is also an another kind of promotional element which