BTEC HND Marketing Essentials Report on TUI and Trailfinders

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This report delves into the core concepts of marketing within the travel and tourism sector, focusing on the multinational travel company TUI. The report begins by outlining the roles and responsibilities of the marketing function within TUI, emphasizing its importance in brand management, campaign execution, promotional planning, and social media management. It then explores the interrelationships between the marketing department and other functional units like finance, human resources, and sales, highlighting how these connections contribute to the overall success of TUI. A significant portion of the report is dedicated to a comparative analysis of the marketing mix strategies employed by TUI and Trailfinders, examining the differences in their approaches to product, price, place, promotion, process, people, and physical evidence. Finally, the report concludes with the creation of a basic marketing plan for TUI, demonstrating the practical application of the marketing principles discussed throughout the document.
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MARKETING
ESSENTIAL
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Role and responsibility of marketing function in TUI......................................................3
P2 Interrelationship of other function with marketing departments.......................................5
TASK 2............................................................................................................................................6
P3 Comparison of marketing mix tool of TUI with Trailfinders...........................................6
TASK 4............................................................................................................................................9
P4 Basic marketing plan.........................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing is an activity companies undertakes for promoting the buying and selling of
goods or services it offers to public in accordance with their needs. These function includes
many activities like selling, advertising and delivering goods to customers or other businesses. It
involves utmost amount of discipline in those actions company performs for earning better
profits and maintaining healthy plus long relations with their buyers. The most basic task
marketing do is matching the business offering with desires of people. In this report, different
roles and responsibilities of marketing department is highlighted which they had to for effective
operations of company(Perreault, 2018). These roles and responsibilities of marketing
department are also interrelated with other functional units in many form and these linkages
enables organisation to perform with its full potential. At the end of this assignment a marketing
plan is made for a travel and tourism company named TUI. It is an Anglo-German multinational
organisation which was founded in 1923. TUI is short for Touristik Union International which is
a largest leisure travel company serving in Europe and North America and headquartered in
Hannover, Germany. TUI is listed jointly on London Stock Exchange and Frankfurt Stock
Exchange.
TASK 1
P1 Role and responsibility of marketing function in TUI
Marketing professionals has various roles and responsibilities, playing vital role in an
organisation in relation with promotion and selling activities of company. The most essential role
which is performed by the marketing function is of reaching out to people while developing an
effective or positive image of company in eyes of public. Some role and responsibility of TUI
are mentioned below:
ROLES of marketing function of TUI:
1. Defining and managing the brand- This role of marketing professional involves,
spreading word about the company, what the entity stands for, what an organisation
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offers to public and how the firm works. All these activities are performed by marketing
manages of TUI on behalf of company, in order to spread information in market about the
organisation.
2. Conducting campaign management for marketing initiatives- Marketing teams of entity
identifies the needs and desires of population and focuses on those products or services
which are actually demanded by people or customers of TUI. According to their
understanding of market during course of sales cycle, marketing department produce
materials and set communication to spread the word out amongst the consumers of TUI.
3. Producing marketing and promotional plans- Another, role of marketing professionals
is to develop the promotional and descriptive plans for the core products and services of
TUI. These plans or strategies has to be kept updated and in accordance with the current
changing market conditions.
4. Monitoring and managing social media- It is the role of marketing team of TUI to
manage and control the social media accounts and pages of company(Akbar and et. al.,
2017). While doing so marketing professionals should be very careful and watch all
social activities and comments which are posted by their exiting guests or general public
about the entity.
RESPONSIBILITIES of marketing function of TUI:
Conducting customer and market research- A very necessary responsibility of TUI’s marketing
function has is to conduct market research along with the customers of company. This research
enables TUI to target definite market segment and to explore fresh emerging opportunities in
external environment(Campbell, Martin and Fabos, 2018). This will also, help entity to gain
knowledge about how their products or services are preceding in market.
1. Monitoring competition- It is important for companies to know its position in
marketplace in relation with their competition. Same is with TUI and for monitoring the
competition marketing department are responsible along with their members. By this
supervising function they can also identify some best activities competitors are engaged
in which are suitable for TUI operations too. They can identify the flaws and mistakes
company is doing and improve them in order to stop failing.
2. Helps improve revenue generation process of company- As discussed above its
marketing functions responsibility to conduct research in order to know the needs and
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desires of consumers. The best way of doing so is collecting information from those
departments who are in close connection with customers of TUI like, sales department or
customer service unit. This way marketing team of TUI can make effective plans for
increasing the revenue of entity along with the profits.
3. Defining strategic marketing plans- The most cost-effective strategies for any
organisation are those which are planned earlier for the long term prospective. These
plans can be made if documents are developed with the objectives to be achieved in near
future, the actions are taken in relation with the strengths of TUI and competitor are
properly analysed. All these strategic plans made by marketing unit of TUI have to be
aligned with other departmental units of company in order to attain the aims of
organisation.
All these mentioned roles and responsibilities of TUI’s marketing unit is very essential for
company, for smooth functioning of its operations and for attaining predetermined objectives.
These roles and responsibilities which are performed by company marketing members works as
building blocks for entities actions and they basically depends on the marketing function actions.
P2 Interrelationship of other function with marketing departments
All the different units duties and roles of every organisation are somehow linked with one
another. That is they work in accordance with each other to attain their individual objectives and
ultimately for the common goal of the respective organisation(Uncles, 2018). These
interrelationships of department are very helpful for company, bringing cooperation in
environment of entity. Some of these linkages of several functional units with marketing is
shown below in context of TUI:
1. Marketing and Finance department- Marketing staff carries various duties and roles but
the most important one is conducting sale and purchase of goods or services. For all the
activities of marketing function for running smoothly, they require a fund that is the time
when the finance department links with marketing unit. Finance unit of every company
plays an essential role in company and so in TUI. The member of finance unit makes
budgets for the different units present in structure. These budgets are made in accordance
with the requirements of different function(Eng, 2017). They also provide funds to
marketing function of TUI, accordingly so that they can carry their action like
researching the market, conducting research, conducting promotional events etc. in a very
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efficient manner. All these actions of both the departments will ensure effective results
for TUI and will enable it to achieve its predetermined objectives. These inter-linkages of
both the department will also bring synergy and cooperation in company's environment
creates a healthy competitive spirit amongst the employees of different teams or
functional units.
2. Marketing and Human resource department- The duty of HR department is to provide
best talents to entity when it is required by it. They are the ones who brings potential staff
or human resources for company in order to execute all the plans and strategies of
company. Human resource is a very essential resource any company can have and this is
where both marketing and human resources departments, interrelates with one another.
Marketing function tasks are very important for success of company and that is only
possible when they have best employees engaged with them performing with their full
potential and with utmost abilities. Marketing personnel conduct market research in
relation with customers of TUI and other activities for which they need efficient task
force or human resources. Managing all the employees and needs of human resource of
company is responsibility of human resources department. Basically, efficiency and
effectiveness of every functional unit along with organisations depends on the people
provided by human resource unit of that company. Therefore, both marketing and human
resources work in a line with one another for balancing their duties and attaining
individual predetermined objectives.
Marketing and Sales department- One of the prime responsibility of a company is to enhance the
sales of entity in the regular aggressively increasing competition. For doing so managers of
provide higher quality services to their regular customers for retaining them along with
maintaining good relations with them. Sales unit of TUI needs to know the current trend in
market and to gain knowledge about their consumers that information is provided by marketing
function(Pooler, 2018). This is where both the departments works in relation with one another,
marketing team will provide proper data. According to which sales personnel’s make their
strategies for making sales to existing and new consumers.
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TASK 2
P3 Comparison of marketing mix tool of TUI with Trailfinders
Marketing mix is a technique which involves various action and unique tactics for
promoting the brand and products or services offered by the organisation. Earlier it just had four
factors which were Product, Price, Place and Promotion according to market situations. But due
to new emerging trends and changing market conditions three new additional factors are
introduces as Process, People and Physical Evidence. All these components are used for making
sales and promotional plans for earning huge profits. Comparison of marketing mix strategy of
TUI and Trailfinders is shown below:
Basis TUI Trailfinders
Product It is said that company provide
various service to their
customers. TUI has adopted
diversification strategy for its
services. Products offered by
TUI are like various tour
packages for different
segments, hospitality services
and airline facilities. They
have targeted several segments
of population in accordance
with their needs and their
purchasing power.
Trailfinders uses
differentiation strategy for
gaining competitive edge and
to survive in the current
marketplace. These services
are offered by Trailfinders
according to the needs, desires
and wants of consumers(Stern
and Porr, 2017).
Price Competitive Pricing Strategy
is used by TUI, so that
company can grow in potential
market serving their targeted
segment. Also, they provide
high price services as compare
to their competitors as they
Premium pricing strategy is
used by Trailfinders, for
serving to their preferred
market that is high class
families and individuals of
society. Services offered are
quite attractive and high
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provide distinct features
services to their customers.
quality which makes them
expensive.
Place TUI, provide their goods by
two different methods and
those are through their outlets
and by their official website,
where customers get their
packages according to their
needs(Kotoua and Ilkan,
2017).
Trailfinders also use online
platform and physical outlets
to provide service to large
number of customers. With the
help of online portals,
consumers get the flexibility to
book their tickets in some
clicks with their ease and
comfort.
Promotion TUI focuses on traditional
method of promoting goods
and services. It includes
promotion through radio,
television, newspaper and so
on. But now a days due to
changing market conditions
company has started using
social media to attract new
customers.
Trailfinders, use different
social media platforms to
promote their offering and
reach to large number of
buyers in very small suration
of time.
Process In context of TUI, for
managing online services, a
sensor is used so that they can
track the requirements of
customers. This will assist
them to modify their tour
packages according to their
demands.
It has been said that various
process are used by
management team of
Trailfinders. They use their
websites for getting feedback
from the customers on a
regular basis so that they can
develop new strategies and
policies.
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People Many individuals are present
their in TUI within several
functional units. Company
provide regular training and
development programs for
them to develop better skills
and expertise(Pappas, 2017).
There is ample number of
people associated with
Trailfinders.HR managers of
Trailfinders appoint highly
qualifies individuals for
conducting activities of
company.
Physical Evidence TUI has attractive packaging
and provide high quality
images at their website in
order to attract new customers
towards their organisation .
Physical evidence of the
company is seen through
physical outlets and have
images, videos so that
consumers develop perception
towards the services offered by
the company.
TASK 4
P4 Basic marketing plan
Company overview
TUI, is an travel multinational company which offers various services like hospitality,
travel and airlines. It has its operations in Europe and North America and has its headquarters in
Hannover, Germany. It is one of the largest leisure travel and tourism entity in the world of its
kind, owning several travel agencies, hotels, cruise ships and retail stores. The company has five
European airlines and one of the largest fleet amongst Europe and other competitiors.
Vision
The vision of TUI is to an inspiring and professional partner that supports and induces
new innovative ideas and projects. TUI vision statement also reflects theri believe in young
professionals and motivate them to make a sustainable future for themselves and others in
society. TUI vision statements promote the new emerging trends in market and fresh talents.
Mission
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TUI's mission statement shows their intention of exploring new opportunities and supporting
young people of the society. They wish to provide positive impact on lives of people through
travel and other leisure services(Chinn, 2017). They develop new projects for public and belives
in innovation and being creative for serving best to their guests and attracting more and more
people towards their brand
Strategic Objective
Company focuses on higher and upper middle class families or individuals of urban
society. Now as TUI uses differentiation strategy therefore it is bringing affordable travel
packages for middle and lower class segments of population. Their main objective behind
introducing these packages is to attract and serve to more people increasing its customer base
and obtaining competitive advantage over others in market.
STP
Segmentation tool is first component of STP model in which companies divide their market into
small groups who hold identical characteristics and needs. Purpose behind this basically to
understand the market and its need. TUI segmented its market into lower, middle, upper middle
and higher class population of the economy according to their desires and purchasing power.
Targeting is next stage after segmentation; here company chooses their target market after
dividing them into various groups. They make their selection in accordance with offerings of
entity and needs of consumers. Here for these new travel packages middle and lower class
section of the society.
Positioning is the third and last stage where all the strategies and actions are seen by which firm
position itself market. TUI wanted to reach to smaller section of the population therefore it has
used a very unique method of promoting its new packages and positioned itself as the brand for
them and for providing great experience to consumers in very small amount.
Marketing mix
Product- The product of company is actually new travel packages they have introduced for the
lower segment that have very low purchasing power in order to serve them and increase their
customer base.
Price- TUI have set their prices of the service they are offering in accordance with the ability of
consumers to purchase and by conducting proper market research.
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Place- Their focus is shifted to different target groups but TUI have not changes their serving
areas. They still serve in Europe and North America.
Promotion- For promoting, TUI used their social media platforms and put advertisement on local
transport of Europe for attracting attention of customers(Zimmerman and Blythe, 2017).
People- Company has provided training sessions to their employees for making sales and
learning new sales strategies for dealing with smaller section of society.
Process- TUI is working with their same old processes as they are very effective for organisation
and flexible in nature. So they have moulded them according to their new packages and target
market.
Physical Evidence- All promotional and marketing actions taken by TUI act as physical
evidence for entity and its products and services.
Monitoring and controlling
For supervising and controlling company have used:
Feedbacks- TUI management professionals have taken feedbacks from their new customers in
relation with their new packages and services provided. Also, some improvements are also made
if required and asked by consumers.
CONCLUSION
From above assignment, it can be concluded that marketing function is the most
important for every organisation, doing business in any kind of industry. Marketing teams are the
one who are responsible for effective understanding of market and then make effective plans for
company. This way entity can attain their predetermined goals along with providing their
customer what they exactly desire. Marketing mix tool is used in above report for better
understanding of company and comparison is made with similar business entity. This way a
through evaluation is made about the organisation and their strong and low points for
maintaining the balance and intake good qualities of others. An effective marketing plan is also
constructed at the end of the assignment in relation with meeting the marketing objectives of
organisation. All these action are taken for learning and understanding better methods of
company and to know what changes can be made in actions marketing department take on behalf
of company.
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REFERENCES
Books and Journal
Perreault, W. D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Eng, P., 2017. Erste Schritte im Online-Marketing. Suchmaschinen-Content-Soziale Medien,
Wiesbaden.
Stern, P. N. and Porr, C. J., 2017. Essentials of accessible grounded theory. Routledge.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice,
price, quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications. 23(2). pp.195-218.
Chinn, E. R., 2017. Essentials of Branded Event Marketing (Doctoral dissertation, University of
Oregon).
Zimmerman, A. and Blythe, J., 2017. Business to business marketing management: A global
perspective. Routledge.
Okumus, B. and Cetin, G., 2018. Marketing Istanbul as a culinary destination. Journal of
Destination Marketing & Management. 9. pp.340-346.
Akbar, F. and et. al., 2017. Niche marketing strategy framework for SMEs: A conceptual
framework.
Uncles, M. D., 2018. Directions in higher education: A marketing perspective. Australasian
Marketing Journal (AMJ). 26(2). pp.187-193.
Pooler, J. A., 2018. Demographic targeting: the essential role of population groups in retail
marketing. Routledge.
Kotoua, S. and Ilkan, M., 2017. Tourism destination marketing and information technology in
Ghana. Journal of destination marketing & management. 6(2). pp.127-135.
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