Marketing Concepts and Strategies in Hospitality: Thomas Cook Report

This report delves into the marketing strategies employed within the hospitality and tourism industry, with a specific focus on Thomas Cook as a case study. The introduction highlights the impact of evolving digital marketing strategies and the importance of strong customer relationships. Task 1 explores core marketing concepts like product, sales, marketing, and societal marketing, along with their relevance to Thomas Cook. It examines the influence of micro and macro environmental factors, the significance of consumer markets, and the rationale behind market segmentation. Task 2 analyzes the marketing mix components—product, price, place, and promotion—and their role in Thomas Cook's strategies, including pricing strategies and policies. Task 3 focuses on the promotional mix, including sales and public promotions, and their impact on promotional efforts. Task 4 underscores the importance of market research, planning advertising campaigns, undertaking market research for products or services, and evaluating marketing plan implementation, including media choices. The report concludes by summarizing key findings and providing references.

MHI

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
AC 1.1: Concepts of marketing .............................................................................................1
AC 1.2 Impact of marketing environment: ............................................................................2
AC 1.3 Relevance of consumer market ................................................................................3
AC 1.4 Rationale for development of different market segment .........................................4
TASK 2 ...........................................................................................................................................5
AC 2.1 Importance of marketing mix components: ..............................................................5
AC 2.2 Pricing strategies and policies: ..................................................................................6
TASK 3 ...........................................................................................................................................6
AC 3.1 Role of promotional mix ...........................................................................................6
AC 3.3 Role of sales and public promotions in promotional efforts: ....................................7
4.1 Importance of market research ........................................................................................8
TASK 4 ...........................................................................................................................................8
3.2 Plan an advertising campaign for service industry operation:..........................................8
4.2Undertake market research for an appropriate product or service :..................................9
4.3 Different media for marketing an appropriate product or service:...................................9
4.4 Evaluate the implementation of the marketing plan for an appropriate product or service :
..............................................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The current Hospitality and tourism industry are also significantly influenced by the
changing marketing strategies. These industries prefer strategies which provides quick response.
With evolution of digital transformations marketing strategies as well as their implementation
approach are changing dramatically. With the case of hospitality and tourism industry strong
customer relation needs to be established for sustaining the growth and for retaining the
customers for long term. The report will provide a brief discussion of marketing concepts and
their impact in relation with hospitality and tour and travel industry.
It will consider a case study of Thomas Cook which is one of the world's largest
travelling related organisation. The report will also focus on the benefits and limitations of
consumer behaviour characteristics in marketing. It will also analyse the marketing mix concept
and different market segments. Further this report also describes the impact of promotional
effects and public relations in these service industries.
TASK 1
AC 1.1: Concepts of marketing
Marketing is defined as the process by which organisations interact with public or their
target group so that they can be informed about the products and services provided by the
organisation. This approach is essential for building customer relationship and customer base as
well. In the absence of these marketing strategies it will be almost impossible for hospitality and
service industry to operate. For instance Thomas cook Travel use following concepts to make its
public relation base wider: Product concept: It first consider the product concept. Thomas Cook marketing strategies
focus on the fact that the quality of the services they provide should be best and different
which can attract consumers. For instance along with travelling arrangements it
accomplishes the related formalities of visa or special tour session for famous festivals. In
this strategy Thomas Cook highlights the best and unique features which can push
customers to choose Thomas Cook over others.
 Sales concept: In order to increase the sales Thomas Cook must use sales concept. It may
happen that its target customers may not want tours and hospitality regularly, thus it is
necessary strategy for Thomas Cook that it should create environment which encourages
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the customer to enjoy holidays and use these hospitalities and travel services. Only then
sales and output could be raised.
 Marketing concept: For sustaining growth and profits Thomas Cook must analyse the
customer approach. Thomas Cook must make continuous research about market trends
and needs of its target audience. It helps them to sustain position among competitors.
 Societal marketing concept: This strategy enables Thomas Cook to make policies in a
way such that they are beneficial for customers as well as for society and environment.
AC 1.2 Impact of marketing environment:
The external micro and macro factors greatly influences the marketing and operational
strategies of Thomas Cook. These factors have following impact:
Micro factors:The stakeholders such as visa related authorities, suppliers of goods and other
services which Thomas Cook Provides to its customers can affect the overall performances. For
instance if the suppliers of cabs encountered any issue then it will influence the Thomas Cook.
Thomas Cook must also focus on the competitors strategies. The policies and actions of
competitors will directly affect the customers. Apart from these factors the public satisfaction
and requirements fulfilment plays key role in marketing strategy and performance.
Macro factors: Thomas Cook marketing policies are in accordance with the social culture and
political restrictions. If these forces are not taken into account it may damage the performance
and number of sales. It should also consider legal and demographical factors otherwise the brand
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image of Thomas Cook can suffer from severe loss. Organisation must have complete knowledge
of associated factors to avoid any chaos in front of their audience.
Comparison of macro and micro factors :
Feature Macro factors Micro factors
Criteria Affects operational activities Surrounding factors
Elements PESTLE Competitors and stakeholders
Nature Generalised factor Specific factors
Impact Not in control Can control
Influence on marketing Indirect and distant Direct and regular
AC 1.3 Relevance of consumer market
The attitude of consumers or target audience defines how new products and services will
be innovated and what path does existing one will take, on the basis of the consumer’s choice
and decision to accept any product and service or not. This consumer behaviour may depends
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upon the background, choices, interest of consumer, brand image of organisation, experiences of
customers as well as on social, demographical and cultural factors. Thomas cook use black box
theory to analyse the consumer's characteristics. The factors which influences the decision
making of consumer are known as black box. Customer can accept or reject any product or
services on the basis of factors such as their beliefs, lifestyle, culture, economic standard,
education status, their previous experience in that regards.
Advantages of consumer behavioural analysis:
 It helps in forecasting the sales so appropriate measure can be taken on time for
improvement. Gives competitive advantage by sensing market trends.
Limitations:
 Inconsistency in consumer's behaviour
 External social, circumstances related factors are not considered which affects overall
analysis.
AC 1.4 Rationale for development of different market segment
Hospitalities and service industries such as Thomas Cook can accomplish the market
segmentation in order to gain maximum profit and to connect with large target audience.
Targeted audience market can be segmented on following basis:
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 Thomas Cook can segment on the geographical basis. For instance in certain location's
customer does not prefer regular travelling or certain destinations are suitable only in
particular climate.
 Demographic factors such as age, gender, income, interest, culture and beliefs of targeted
audience greatly affects the policies and services of Thomas Cook.
 Psycho graphic market segments consider the factors such as social and cultural values,
personality and choices which decides the consumer behaviour.
Advantages of Market segmentation:
 Gives a clear direction so that organisation can focus more effectively to raise sales.
 It increases competitive environment and boundaries of operation
 Increase productivity, sales and customer retention scale
TASK 2
AC 2.1 Importance of marketing mix components:
Thomas Cook can use following 4 components of marketing mix for making its
marketing strategies and performance very effective.
Product: Thomas Cook must create the offers and services as per the latest trends and
competitors policies. For instance with hospitalities visa related issues can also be resolved by
Thomas Cook for providing customers more easiness. Such approach will increase the customer
support and trust.
Price: It is one of the most important driving factor for majority of the customers. Thus, Thomas
Cook must follow appropriate market penetration and skimming prices. To build new target base
Thomas Cook must also consider neutral prices. Too high prices will restrict the Thomas Cook
with only upper layer of customers so prices must be chosen accordingly on basis of targeted
audience.
Place: It is very important for Thomas Cook to wisely select franchising location and other
locations related to its operation. The legal, social, economic and behavioural factors related to
the geographical location will greatly influence the sales of Thomas Cook.
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Promotion:To cover wide audience Thomas Cook must use effective promotional activities
which could attract more customers. Thomas Cook can use social media marketing, public
relations, attractive offers, and sales promotions to promote the organisation at large scale.
AC 2.2 Pricing strategies and policies:
The price component greatly affects the consumer behaviour. Thomas Cook's profit and
survival is defined by pricing strategies and policies so this factor undergoes in an intense
analysis. Since Thomas Cook has established brand name in hospitalities and travel industries so
it is likely that most of the customers will be agree to pay even high prices according to the
quality services of Thomas Cook. But there are certain sections of customers who might not wish
to pay high prices. Thus, if Thomas Cook wants to expand customer base then price reduction
policies or special discount offers, membership benefits must be introduced in its policies.
The pricing factor of Thomas Cook is also influenced by its competitors. If its
competitors provides quality services in lower prices as compare to Thomas Cook then there are
chances that the customer segment of Thomas Cook may shift to others. Hence, it is essential
that pricing is fixed on basis of competitors, and economic standards of targeted audience.
TASK 3
AC 3.1 Role of promotional mix
It is also important for Thomas Cook to retain the existing customers while building new
one's. Thomas Cook must also emphasis on promotional activities which can force customers to
pay attention to products and services of Thomas Cook and then to connect with the
organisation. Thomas Cook must consider factors like age, psycho graphic factors, and
competitive approach so that desired customers reach to Thomas Cook. The sponsorship to
famous sports or concerts can highlight the brand in front of huge audiences which can be easily
convinced about services when the brand is sponsoring their favourite celebrity or sports.
Advertising promotional mix can be used to drive huge audience traffic and to create the general
awareness about Thomas Cook. In certain cases public relations and personal selling can also
help Thomas Cook to enhance the profit and sales.
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AC 3.3 Role of sales and public promotions in promotional efforts:
Sales promotions: By using this strategy Thomas Cook provides some incentive cum
advantage to its stakeholders in order to enhance profit and sales. The sales promotions can be
achieved in 5 different ways such as:
 Thomas Cook can give discount coupons or small benefits like free dinner date to its
regular customers to retain them. It will give them message that organisation values them
a lot.
 Social media contest and small one day trip prizes can create a drastic impact among
public groups.
 Thomas Cook can give Loyalty gift vouchers to its customers which allows that after
certain number of services consumer will get a one day trip expenses free as loyalty
bonus. It will encourage customers to use more and more services of Thomas Cook.
 Joint promotions with other reputed organisation can also give valuable response from
customers. This will be beneficial for both participating organisations. Coupons, gift vouchers can also be used in promotional events to create awareness about
the services of Thomas Cook.
Public promotions:
 Thomas Cook can use media houses for establishing public relationship. The fact sheets,
service offerings can be circulated among public via trusted and popular media houses.
 Thomas Cook can sponsor famous sport or celebrity which is followed by great volume
of public. It will create goodwill among targeted customers.
 For addressing new customers brochures and catalogues are effective public promotion
tools.
 Social media are the most dominating tools for evaluating and creating the brand value of
organisation.
 Engagement of Thomas Cook's representatives as speaker at the famous events where
significant customers are available can also create great public relation.
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4.1 Importance of market research
Research in tourism and hospitality marketing has matured over the past few decades.
Marketing research is only an input to management decision making not a substitute for it. If
Thomas Cook conducts sincere market research they will be able to meet their customer's
demand for goods and services in a better manner. Good research is necessary to good customer
service. If the research is not so effective or efficient then the performance of Thomas Cook may
degrade.
The primary market research will give Thomas Cook an analysis of the latest trends of
hospitalities, quality of the services provided by Thomas Cook, and competitive environment
status. This market research will help Thomas Cook to make its strategies as per the demand of
customers as well as market. In absence of accurate market research the performance of Thomas
Cook may degrade and its competitors may get its advantage. Apart from this primary market
research organisation must also carry secondary research related to market segment.
TASK 4
3.2 Plan an advertising campaign for service industry operation:
Planning is very important roles for any business. Advertising helps the business to
increase its promotion. The planning of selling,buying and producing section are organized by
effectively for Thomas cook company. To identify the product and service by what it is ,who will
buy ,how much it will cost for organization to produce it ,where product is in comparison to
similar products and services and why consumer demand exists for the product for Thomas and
cook company. Advertisement is attempt to influence the buying behaviour of the customer by
providing selling message about the products or services. Forms of advertisement are direct mail,
business cards, pay per click advertisement on the internet and yellow page listings etc.
Research: Choose the preferred survey method that is online survey, paper survey, mobile
survey, phone survey and face to face interview.
Target: Make a target by discuss the survey with other department managers such as marketing,
advertisements, sales, engineering and finance.
Budget: Adjust the budget as needed.
Media Selection: Media selection is done by selecting proper media like radio ,TV ads etc.
Execution: The last step is to execute the plan.
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4.2 Undertake market research for an appropriate product or service :
Market research's aim is to understand the reasons why consumer will buy a product. It
includes studies of consumers behaviour , including how cultural .social and personal factor
influence the behaviour. Market research has two parts Primary research and Secondary research.
Primary research study customers directly where secondary research study information that
others have gathered about customers. Primary research includes interviews either telephone or
face to face, online survey by mail, Secondary research come from reports found on website of
various organization or blogs written about industry. Questionnaires include what factors
consider when purchasing the product or service and what area suggest to improvement.
Secondary research includes collecting data because no small or large business can succeed
without understanding its customers, its products and the market. Two types of data collecting
Quantitative(mathematical analysis require large sample size) and Qualitative(sample size is
small).Common marketing Mistakes are using only secondary research(Depend upon only
published work does not give you whole picture) ,only using web source(For deeper research use
local library or small business centre), surveying the limited people you may know(For most
accurate information organization should talk to real customers about their needs and
expectations).
4.3 Different media for marketing an appropriate product or service:
Different type of media marketing are Television, Newspaper, Magazines, billiboards,
posters, advertisement and social media. In the new generation internet is the most powerful
medium for business promotion. According to world bank report in India and china use of
internet increases day by day. So it is concluded that internet, social media is an effective
medium to promote product and services. Digital Advertising is the fastest growing media in the
whole world. Digital marketing is a communication or transaction with the customers through
internet. Digital media uses by different company to promote their goods and services online
where email marketing is a platform in which companies use to form relationship with
customers. Social media marketing is another type of communication platform like Facebook,
twitter, LinkedIn, Whatsapp and you tube etc. For example any company create twitter fan page
where customer can sign up to receive brand deals and updates. SEM (Search engine marketing)
is another type of digital communication media. Direct mail is another form of print media
marketing in which organization send targeted marketing messages through postal mail to a
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selected people. TV and radio are two another type of communication media. Marketing through
TV ads are costly but allow reaching high audience.
4.4 Evaluate the implementation of the marketing plan for an appropriate product or service :
There are different ways for marketing plan. Marketing should constantly reviews ,
evaluated and adjusted to suit the need of the organisation. The marketing plan is delivering the
best outcomes can save time and money and help the organisation to grow the business. Return
on investment is check whether money put into the marketing plan has result in a profit. Sales
Numbers is the fastest way to examine whether plan is working or not. Customer response helps
to determine what type of reactions marketing creates. Online surveys ,customer feedback and
online commentary can reveal what customers think of marketing. Market expansion is sign that
plan of any organisation is working well and gain more support from the organisation. Partner
response reveals the effectiveness of company efforts in relation to associated brands and
suppliers. If the campaigns of any organisation go largely ignore or there is negative
response ,then an issue or at least a question about what an organisation set in motion.
Salespeople feedback is the measurement of marketing effectiveness.
CONCLUSION
From the report that we have understood the concept of marketing which involves
product concept, sales concept, market concept and societal marketing concept. This report also
include impact of marketing environment which has macro and micro factors. This report
describes the importance of marketing mix components that is product, price, place and
promotion. From the report we can understand the different media for marketing an appropriate
product and service.
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