Marketing Report: Thomas Cook, Consumer Markets and Strategies

This report delves into the realm of marketing, exploring its fundamental concepts and their practical application within an organizational context. It begins by defining marketing and its importance, then examines various marketing concepts, including production, product, selling, marketing, and societal concepts. The report then analyzes the impact of the marketing environment, distinguishing between micro and macro environmental factors, and evaluating the relevance of consumer markets in the industry. It further investigates the rationale for developing different market segments, emphasizing the importance of the marketing mix components, pricing strategies, and the promotional mix. The report also analyzes the role of sales promotion and public relations, highlighting the importance of market research. Finally, it presents an advertising campaign plan for Thomas Cook, providing a comprehensive overview of marketing strategies and their practical implementation.

Illustration Index
Illustration 1: Business Environment Factors..................................................................................5
Illustration 2: Micro and Macro Environmental Factors.................................................................7
Illustration 3: Buyer's Black Box.....................................................................................................8

INTRODUCTION
Marketing is a method which is used by the organization to promote their services and
products in market. This helps them to increase their customer as well as profitability rate.
Marketing for any organization is done to keep their customers happy from their service. It is an
important component for them to bring innovation in their production with focusing on their
customer. This report will discuss about different concepts used while doing marketing and it
will also explain the impact of marketing environment and evaluating the consumer markets in
industry. Other factors such as, marketing mix, analysing pricing strategies, promotional mix,
etc. is also discussed in this report.
TASK 1
1.1 Concept of Marketing
Marketing concept is a process which is used to evaluate the needs of their customers and
helps the organization to make decisions which can satisfy their needs, better than their
competition. It also helps to increase their sales, maximize profit and beat the competition.
Production, product, selling, marketing and societal concept are five marketing concepts, which
is explained below,
The production concept
In this method an organization increases its supply as it
decreases its costs in the market. It also lowers their prices by
doing mass production as it can decrease cost and increase
profit for the company.
The product concept
In this concept, organization focuses on their product which is
more efficient in their production range. In production concept
they have to focus on delivering products which can easily be
accessed and affordable for their customers. Other factors
which has been taken care are their quality, price, availability,
usability, etc (Tresidder, 2015).
The selling concept
In this concept, company's focus is on the product's sale in the
market. Customers will only buy their products if company is
selling it in good quantity. These are done to satisfy their
customers.

The marketing concept
This is the most important concept for any organization as it
This method helps to do promotion of their products and
services in market. This can be achieved by focusing on
customers needs and preferences. For e.g., Thomas Cook uses
marketing concept for their promotional activities in the target
industry.
1.2 Impact of Marketing Environment on Organization
The combination of the external and internal factors which can affect organization’s
ability to build a relationship with customers is their marketing environment. Internal factors for
the organization is their owners, workers, machines, materials etc. which can affects them and
external factors are those factors which is present outside the organization and on which
organization has no control over it. It is divided into two different factors,
1. Micro Environmental Factors : This factor is directly linked with the businesses of the
organization. These includes, customers, suppliers, partners, public, competitors, etc.
Illustration 1: Business Environment Factors
Source: (Business Environment and its Types, 2017)

 Customers : This is the most important factor for the organization as they have a direct
link to them. It consists of target group which they have to deliver their service in market
(Bowie and et.al., 2016).
 Supplier : It basically includes all the party or company which provides them the
material or resources for their production.
 Partner : These are all separate group or entity which work with them, for example, for
marketing, advertising, transportation, etc. which can help them to run their business
successfully in the target industry.
 Competitors : These plays crucial role for the development and growth of the company
as it encourages the organization to deliver the best services to their customers.
2. Macro Environmental Factors : In this factors it includes external factors which affect
the organization but does not have a direct effect on their business. The macro
environment can be divided into several parts,
Technological Environment Economic Environment
This factors plays an important role for the
organization and very important. It consists of
factors like development in technological
aspect, bringing innovation by market
research, etc. It is very dynamic factor for the
organization.
It is the factor which affects the customers
choice of purchasing and spending money on
their products. These factors can include, GDP,
interest rates, inflation, income distribution,
etc.
Demographic Environment Physical Environment
This factor includes people who is present in
the market. This is based on several aspects,
e.g. size, density, location, age, gender, race,
and occupation.
These factors include the surroundings of the
business in which it is running. It consists of
factors like, environmental change, natural
disasters, pollution etc (Chhabra, 2015).
Political & Legal Environment Social-Cultural Environment
The political & Legal environment includes
laws and government’s policies prevailing in
the country.
These can affect organization a lot as it is
directly linked with their customer's lifestyle,
values, culture, prejudice and beliefs of the
people.

1.3 Evaluating the relevance of Consumer Markets in Industry
Consumer market is very essential for the Thomas Cook to meet their needs and preferences
of their customers. To target their customers and their buying nature consumer market is very
essential for them. Functioning of the organization and can also affect the buying decisions of the
consumer market can be affected by various factors present in the organization.
The black box model is a process which is used to identify the behaviour of customers which
is responsible for their buying behaviour. The buyer’s characteristics can depends upon on their
personal behaviour, their social and cultural nature. All these factors plays different role which
ultimately affects organization. The buyer’s decision making process consists of the following aspect,
for example,
 It helps in problem recognition of their products,
 It gives information related to their product's search,
Illustration 2: Micro and Macro Environmental Factors
Source: (Environmental Factors, 2018)

 Evaluation of alternatives options available in market,
 Purchase decision of customers (Leung, Xue and Bai, 2015)
1.4 Rationale for Developing different Market Segments
It is very important for Thomas Cook before entering into any market to provide its
services to their customers in efficient manner to have a proper knowledge of market segmenting
which can help them to deliver the best service. Market segmentation is a process in which
customers are divided into different groups who have some similarities in their choices. The
main objective of market segmentation for Thomas Cook is to understand their customers needs
and preferences and for better communication. There are various reasons or factors for market
segmentation ti identify its advantages for the organization, such as,
 To identify their popularity in the Market,
 For better Customer satisfaction,
 For their market expansion,
Illustration 3: Buyer's Black Box
Source: (The Buyer Black Box – Buyer’s Characteristics, 2015)

 To get opportunity for sales growth,
 Increase in the profitability rate,
 Increase in their competitiveness, (Kandampully, Zhang and Bilgihan, 2015).
TASK 2
2.1 Importance Of Marketing Mix Components in Thomas Cook
Marketing mix is a method which is used to analyze their products and services and uses
to promote its brand or product in the market.
Components Relation with Thomas Cook
1. Product  The main product of Thomas Cook is to provide
different tour packages to their customers.
 It also provides facilities of accommodation, Visa,
etc.
2. Pricing Strategies  The packages are available at affordable prices for
their customers.
 During off seasons they provide good discounts.
3. Place or Channel of
Distribution
 It's service is available worldwide for their consumers
in various form, like, stores or online website (Fan,
Lau and Zhao, 2015).
4. Promotional Elements  They do promotion by giving their customers
different packages like, fusion holiday, group tours,
adventure holiday, beach holiday, Honeymoon
special etc.
 They also do promotions of their services by using
platforms like, newspapers, magazines, internet, etc.
2.2 Pricing Strategies and Policies in Thomas Cook
Thomas Cook has different pricing strategies and policies as compared to their
competitors present in the industry. They try to offer pricing which can easily be affordable by
their customers. It will offer the same price for holiday packages which has been booked either
by online booking or in-store or via its call centers. This gives their customers a little liberty to

enjoy their services. Thomas Cook uses penetration pricing strategies to attract new customers to
buy their services. When a new product is launched pricing strategies and policies are applied in
the management system. Prices will be raised once the promotion period is over and market
share objectives are achieved.
TASK 3
3.1 Role of Promotional Mix
The promotional mix is the method which is used by the organization to promote their
products or services in market. An effective promotion helps Thomas Cook to attract more
customers and encourage them to buy their services. Promotional mix contains factors like,
advertising, public relations, personal selling and sales promotion. It is very important to have an
effective promotional methods which can help the organization to aware their customers about
their services, offers and discounts which are provided to them (Nour and Almahirah, 2014).
This will help them ti increase their customers as well as profitability rate.
It is very crucial for Thomas Cook to ensure that they are reaching to their right
consumers and meeting their objectives. It can be achieved by using strategic tactics to connect
to their consumers to generate a good response.
3.3 Analyzing the role of Sales promotion and Public Relation in Promotional Mix
There is a great importance of sales promotion in Thomas Cook as it affects its
production rate. It is a type of pull marketing technique. Organization uses Sales promotion when
a brand wants to increase the sales of its products in market. Company can increase their sales by
attracting new customers to buy their services. There are various ways in which sales promotions
can be done by Thomas Cook, for example,
1. By offering Discounts to their customers,
2. By providing Free trial service,
3. By giving Coupons,
4. Gifting, and
5. By organizing Exhibitions.
Public relations (PR) is concept which has been used by Thomas Cook to build
purposeful communications between an organization and its public that aim to generate
goodwill. It will help them in brand awareness. It is more extensive and comprehensive
(Fassnacht and Königsfeld, 2015).

4.1 Relevance of Market Research in Organization
Market research is a process which is used to analyze all the factors which can affect
Thomas Cook's functions. To increase customer satisfaction market research the best way,
understand the factors that affect your business, and to elevate your performance. It helps in
identifying new business opportunities in the industry. It also provides information about a
particular market segment. Thomas Cook can evaluate its progress as well as its growth. Before
launching a product, they can identify their potential problems and determine its solution (The
Five Marketing Concepts Explained, 2017). There is a huge advantage of market research for the
organization, such as,
 It can be used for sales forecasting,
 For effective communication mix,
 Helps to determine consumer needs and their preferences,
 Identifying problem and opportunities present in the market,
 For formulating market strategies for their services, etc.
TASK 4
3.2 Advertising Campaign Plan
Thomas Cook is planning an exciting tour package trip to Switzerland, Europe for 50
college students to give them a real lifetime experience to enjoy.
 It will be a 6 days and 5 nights stay in a five-star hotel.
 Trip will be in December 2018 from 24th to 29th.
 Trip will include several activities, such as,
 Sight seeing,
 Adventure activities,
 Visit educational places,
 Shopping,
 Leisure time, etc.
 It is giving 30 % discounts to the students for this trip.

4.2 Market Research for an appropriate Product or Services
In any organizational business market research has a great importance as it helps them to
provide the best service to their customers. For Thomas Cook it plays crucial role. Tour package
available in this organization is the key service which they deliver. It has to be very accurate and
proper which gives all the information to their clients. The main aim of providing tour packages is t o
satisfy their customers or tourists, as it is the basic philosophy of tourism sector. It helps t o make
optimal utilization of the available resources resulting operational efficiency and also to maximize
profit in the long run as it is the core strategy of the organization.
Thomas Cook has done primary and secondary research to gather information which can
be beneficiary for them. In primary research method they have personally interviewed public to
know their opinions and feedback's (Marketing Environment: Explanation, Components, &
Importance, 2018). While in secondary research method they have collected information from