Marketing Essentials for Travel and Tourism - HND Assignment

This report provides a comprehensive analysis of marketing essentials within the travel and tourism industry, focusing on the Thompson Travel Group as a case study. The introduction highlights the importance of marketing in attracting customers and emphasizes the use of online channels. Task 1 explores the roles and responsibilities of the marketing function, including strategic planning, competitive strategy development, market research, and budgeting. It also examines the interrelationships between marketing and other functional units such as finance, human resources, and production. Task 2 delves into the marketing mix (7Ps) of Thompson Travel Group, analyzing its product offerings, pricing strategies, promotion methods, and distribution channels. A comparison is made with other organizations. Finally, the report concludes with the development of a marketing plan for Thompson Travel Group, designed to achieve its organizational objectives. The report emphasizes the interconnectedness of various departments within the company to achieve marketing goals.

MARKETING ESSENTIALS
FOR TRAVEL AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P-1: Roles and responsibilities of marketing function within Thompson Travel Group
company.......................................................................................................................................1
P-2: Interrelationships between marketing and other functional units in the wider
organizational context..................................................................................................................3
TASK 2............................................................................................................................................5
P-3: Marketing mix of Thompson Travel Group for the achievement of organizational
objectives as compared to other organizations............................................................................5
TASK 3............................................................................................................................................7
P-4: Marketing Plan.....................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is essential factor in the travel and tourism industry it helps in attracting the
potential customers from the rivals. The marketing can be preferably undertaken by using the
online channels websites, e-mails, social media applications etc. In other words, it is an action
wherein employees carry out efforts to promote and sale goods that are produces by the brand.
To understand about marketing essential, focus is made on Thompson Travel Group which is a
famous company of the travel and tourism industry which was founded in 1965 and is
headquartered in Luton, UK. It offers attractive deals of the holiday packages with affordable
flights, cruises, hotels at the most exclusive locations. It's major focus is upon the leisure and
luxury services and has segmented the market accordingly.
The project shall be highlighting the roles and responsibilities that are performed by the
marketing function in a tourism industry. It shall determine the marketing mix of an organization
which shall be applied in the formulation of the marketing plan in order to achieve the
organizational objectives of the business. Lastly it shall be involving the formation of an
effective and efficient marketing plan which can be adopted by the company to generate
profitability and future growth prospects for the company.
TASK 1
P-1: Roles and responsibilities of marketing function within Thompson Travel Group company
The marketing function is an essential part of travel and tourism industry wherein they try
to capture the target market by developing the innovative marketing strategies. Marketing plays
crucial role in developing the competitive advantage in the market among the rivalry firms. The
main benefit that it poses to the tourism company is the fulfilment of the organizational
objectives timely and efficiently.
Some major roles and responsibilities that are performed by the marketing manager of the
Thompson Travel Group company are:-
 Strategic marketing planning is the most prominent function of marketing which helps
in identifying the internal and external environment that Thompson Travel Group is
exposed, which are either generating opportunities or threats for the company (Mishra
and Modi, 2016). It also analyses the strengths of the company upon which it can
capitalize and the weaknesses which are to be removed so that operational efficiency can
be governed.
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 A strategic evaluation can also be used to identify the requirements of the company to
positively build the brand image. It has to fulfil the corporate social responsibility,
consumer welfare, maintaining safety and security measures etc. Apart from these the
various industry specific laws are to be fulfilled in order unnecessary government
interference.
 The marketing strategy to derive competitive edge like cost leadership, differentiation
and focus. Among the different strategies available, Thompson Travel Group believes in
the differentiation strategy. It differentiates its products from that of the competitors so
that the potential travellers can be attracted. It also uses the customer centric approach
where the main focus stays on the customer and their associated level of satisfaction
(Sanclemente-Téllez, 2017). For this they ensure after sales services and grievances to be
redressed.
 The marketing function in the company helps it to plan growth strategies like
expansions, diversifications, installing new technology, modernizations etc. This is done
by Thompson Travel Group by considering the current status in the market of the product
line and also by analysing the stages of the product life cycle. Mergers, acquisitions,
collaborative partnerships are also evaluated if are profitable for the operations and shall
provide the benefit of synergy.
 Ascertainment of the various online and offline sources that are used by the company
to generate awareness regarding their brand in the consumer groups. Nowadays, the
digital platform are used by the company to promote its products and services like social
media applications, customized websites of the company, e-mails and online ads etc.
 The research and development of the various new techniques also forms part of the
marketing function in travel and tourism industry. Thompson Travel Group does market
research to a great extent which helps them develop the idea of profitable routes,
exclusive locations for vacation purposes, newer technology that can be used to minimize
the cost of the company (Moorman and Day, 2016).
 The future forecasting and budgeting requirements are also an important function of
the marketing department. Arrangement of resources according to the future demands of
Thompson Travel Group is essential to reduce the wastage of resources. It helps in
optimal utilization of the scarce resources that are available.
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 It also is responsible for deciding the channels of distribution that should be adopted by
the company. Thompson Travel Group generally prefers wider distribution system which
means that it takes the benefit of cost by having variety of options available.
 Market segmentation is carried out by the marketing agents of the diverse market and
its customers (Eteokleous, Leonidou and Katsikeas, 2016). Based on this segmentation
the deals are offered which could satisfy the needs and wants of the consumers. Specific
features are offered to specific groups at specific prices, so that the target group of
customers can be attracted towards the products of Thompson Travel Group.
P-2: Interrelationships between marketing and other functional units in the wider organizational
context
The marketing department and other departments of a company are interrelated and
interdependent on each other. The performance of the marketing function of Thompson Travel
Group is based on the other organizational functions as if the operational efficiency is there in a
company then only benefit of aggressive marketing can be taken (Wang and Kim, 2017). In
order to strategically plan and implement a marketing plan, the department requires contribution
from finance, human resource, production and sales department of Thompson Travel Group.
It can be assessed that in the travel and tourism industry all the functions in an
organization have to perform in integrated and coordinated manner. This shall help the company
achieve the organizational objectives and develop potential growth prospects for the company.
There are various ways in which we can evaluate the interdependence of these functional areas
of Thompson Travel Group:-
 The strategic planning that is undertaken by the marketing officials of Thompson Travel
Group has to be sent to the management of the company for prior approval. The
feasibility criteria is checked and then only is accepted for implementation by the higher
levels of the company.
 After the approval a forecasted budget is to be prepared which shall be discussed with the
finance department of Thompson Travel Group (Hill, 2017). As per the availability of
resources they shall amend the budget and accordingly provide the marketing team with
the financial resources.
 The market research of Thompson Travel Group helps it know the requirements of the
customers and what improvements are to be made in the existing travel products. This
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differentiation strategy has to be coordinated with the production department and have to
be communicated effective about the changes in the services that are required.
 The discounts, offers, freebies that are used to market the brand effectively has to be
integrated with the operation and the sales department of Thompson Travel Group. It has
to be ensured from the production department that economies of scale is attained and
whether the cost per unit is decreased (Takata, 2016). Then only the benefit could be
extended to the customers. Also, the sales department needs to know what additional
services are to be offered to which group of travellers.
 Since the marketing department shall be managing the optimized website of Thompson
Travel Group, they are required to communicate the feedback, response, opinion that is
provided by the customers or the latest trend that is going on. On the basis of this
information the managers and leaders of the organization shall develop strategies for the
future operations of the business.
 In order to positively position the brand in the minds of people, it has to coordinate and
integrate their activities with all other departments and their human resources. It has to
ensured that basic duties are fulfilled like the corporate social responsibility, governance,
ethical standards, compliance of laws, quality standards etc. This shall make the
customers satisfied and also avoid unnecessary government intervention (McDonald and
Wilson, 2016).
 The marketing team shall study the internal and external environment of Thompson
Travel Group and identify the potential strengths, weaknesses, opportunities and threats
are posed to the company. It has to efficiently communicate these to the rest of the
departments so that accordingly benefit could be assumed and the losses can be
prevented.
 Any strategies that are formulated by the marketing manager must be in accordance with
the availability of the physical resources, level of technology, expertise in the human
resources, level of competition, potential risk taking capacity and objectives of the
company.
Other than the mentioned information, discussion on interrelation of roles related to marketing
with other functional contexts in Thompson Travel Group are as follows:
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Marketing and human resource function: In Thompson Travel Group, key role of
marketing function is to design documents that are job advertisement, personal specifications and
so on as well as posting them in order to attract candidates for certain vacant positions. At same
time, it is role of human resource function to provide adequate information about vacant
positions to marketing function. Moreover, human resource function also arrange and provide
training programmes to marketing people so that their skills are enhanced to carry out practices.
Both these department coordinates with each other on Thompson Travel Group with the hope of
reaching great heights.
Marketing and front desk function: Within travel and tourism company such as
Thompson Travel Group, front desk function have role of making contact with guests,
discovering information related to customers, arranging accommodation for guests and so on.
The function completes booking and also finalise settlement that the customers have to pay. At
same time, marketing function of the hotel have role to devise strategies for collecting
information from guests and share the same with front desk function. Managers of both
department introduces staff of both so that job responsibilities are communicated and carried out
effectively.
TASK 2
P-3: Marketing mix of Thompson Travel Group for the achievement of organizational objectives
as compared to other organizations
The marketing mix consists of the seven elements in the form of 7P's which are used to
design the broader strategy to market the products and services that are offered by the Thompson
Travel Group group. Based on this strategy the company shall be able to achieve the
organizational objectives. The marketing mix of Thompson Travel Group is designed in the
following manner:- Product- One of the most significant elements of the marketing mix of Thompson Travel
Group Group is the distinct and differentiated product of the company (Saidani and
Sudiarditha, 2019). It maintains a broad and diversified portfolio of products as per the
market segmentation of the various potential customer groups to satisfy the needs. The
quality management is the essential strategy of the company that ensures providing value
for the money paid by the customers. The travel deals are offered separately for the
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adults, kids, young couples based on their needs and desires. The product portfolio of the
company is based on leisure and luxury for its travellers. Price- The Thompson Travel Group group is associated with the hybrid pricing strategy
wherein differentiated pricing policy is used for the different customer range. The
premium pricing is done to the highly luxurious services which fulfils the expectations,
quality concerns, branding requirements of the customer. Apart from that the company
also fixes the prices of the products psychologically such that it appears less than
expected. The prices of the products and services helps the customers derive value for the
amount that is paid. Place- The Thompson Travel Group travel group has prime focus on the distribution
network that the company has established and its accessibility to the potential buyers. The
strategy is to cover wider area so that the brand stays accessible to all its customers
(Ravangard, Khodadad and Bastani, 2020). Thompson Travel Group has established its
various licensed stores and stores in the supermarkets and hypermarkets. Apart from that
it has its presence over the digital marketing channels from where its customers can book
online for its products and services and then make the digital payment. Promotion- The promotional tactics and strategies are used by the Thompson Travel
Group team shall be beneficial in order to generate brand awareness and establish
reputation in the market. Nowadays mainly the company is using the digital platforms to
create brand image of the company. The majorly used tools are the social media
applications, optimized corporate website of the company and ads on the internet. This
helps in generating traffic on the website of the company and thereby increases the scope
of target market of the customers. People- Thompson Travel Group considers its people resource as the major contributor to
the building of the customer relationship. They conduct effective talent management
activities to make them satisfied and generate profitability for the company (Loo and
Leung, 2018). The policies are designed to train, motivate and develop the overall
personality of the individuals. Process- Thompson Travel Group follows a standardized and systematic approach which
gives a consistent growth and experience to the company. The satisfaction level of the
customer also faces an upward graph and resists to get deteriorated.
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 Physical evidence- The company has also sought to develop an attractive and innovative
work culture which retains the employees with the company (Marketing Mix of
Thompson Travel Group, 2021). Apart from that the website of the company and the
packaging are also attractive of the to gain competitive advantage.
Distinct characteristics Thompson Travel Group
travel company
Thomas Cook plc.
Product Diversified product portfolio
based on the market
segmentation.
It is majorly for the leisure and
luxury travellers.
Product consists of holiday
packages including travel,
food, hotel, insurance and hire
car.
It is for leisure travellers,
corporate business houses,
foreign exchange of currency
and credit cards (Pistol and
Bucea-Manea, 2017).
Price It uses the premium pricing to
maintain the luxury and
quality of services offered.
Psychological pricing is also
used for impacting the buying
behaviour of the customers.
Market penetration is the target
so the prices are kept at
reasonable range which can be
affordable.
Some exclusive luxury trips
have half-way premium
pricing.
Place Vast distribution network in
the form of licensed stores,
supermarkets and presence on
the digital platforms.
The company has both online
and the physical stores for
providing easy access to its
customers.
TASK 3
P-4: Marketing Plan
Overview
The company is offering a new holiday package which is to explore the historical
destinations in India. The prices shall be affordable using the market penetration strategy. The
target market is the old age people of UK. The package shall include travel, food, hotel and
insurance of the customers.
Vision
The vision of Thompson Travel Group is to make people travel the world, explore the
diversity of culture, tradition, discover new horizons, experience the foreign lifestyles. All this
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broadens the thinking ability of the people, builds knowledge and generates positive energy. The
main motto is to bring a smile on the face of the travellers with the company.
Mission
The mission of Thompson Travel Group group is to create the moments and experiences
of the people that are unforgettable and shall be cherished by them forever (Vision & Values,
2021). The quality is the essence of its products such that it provides value to the customers for
the money they have paid.
Objectives
The major objectives of the company are:-
 To build customer satisfaction by giving them value for their money.
 To increase the sales of the company by 10% in the next quarter. To generate competitive advantage in the industry.
PESTLE
Political
 Political instability in a particular
country generates risk and negativity
among the tourists, which shall
decrease the number of travellers
(Hollensen, 2019).
 Tax policies impact the business of
travel and tourism industry. Terrorists attack lead to severe drop
down of the guests and visitors to a
particular place.
Economical
 The tourism industry is highly affected
by the personal disposable income of
the potential customers of the
company.
 The propensity to consume decreases
in depression, currency fluctuation,
high fuel prices etc.
Social
 With the change in the lifestyle of
people the demand is increasing related
to newer experiences. Diverse location with diversified
cultures is leading to clash.
Technological
 With the advancement of technology
the customers are at ease of comparing
the products of the various companies
and choose the best possible deal.
 The online accessibility and digital
payments have contributed in the last
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moment booking system.
Legal Significant laws are mentioned like
safety and security laws, licence laws,
health laws and ownership laws are to
complied with and if not done so then
heavy penalty is imposed.
Environmental
 Environmental protection and
sustainable development practices are
carried out by the company.
 Corporate social responsibility is to be
fulfilled.
 Climatic change also affects the
performance of the business.
SWOT analysis
Strengths
 Fully integrated business model which
helps in the coordination of all the
functions towards the achievement of
organizational objective (Perreault,
2018). Wide distribution network
Weaknesses
 Spread of the coronavirus pandemic
 Lack of transparency in the system
 Seasonality of travellers
Opportunities
 Collaborative partnerships providing
the benefit of synergy Niche market segments
Threats
 Higher leverage ratio
 Geographical uncertainties
 Down-turn in the economy
STP Segmentation: The market segmentation includes the ageing population of UK who are
the heritage travellers. The target market includes the international travellers who are
interested to explore the historical destinations in India having diversified cultures and
traditions. It market is segmented on the basis of income class, the particular product
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shall be for the middle income group of people (STP Process – Tourism Marketing,
2021). Targeting: The specific market shall be targeted which fall in the age group above 60
years, who needs to enjoy the remaining moments of their life to the fullest (De
Pelsmacker, Van Tilburg and Holthof, 2018). The prices shall be affordable to attract
customers who can't afford expensive foreign trips but are keen to know the past theories
and concepts. Positioning: The positioning of the travel package in the minds of people shall be done
by the choice of attractive and exclusive travel destinations. The visit shall provide a
complete experience of the culture and its belief.
Marketing mix Product- The product is a holiday package for leisure of the aged people to the historical
regions of India. It includes different modes of travelling, multi-cuisine meals, insurance
etc. Price- The deal is priced lower as to derive benefit from the market penetration strategy.
It's target market is established in the middle income group of customers who are fond of
heritage travelling. Place- The distribution channel should be wide so that dominance of the company in the
supplier quality and price can be maintained (Dimitrescu and etal., 2018). The bookings
shall be available at both online and offline stores because some elderly people might not
be tech-savvy or friendly and might need one-to-one contact with the seller to clarify with
all the doubts. Promotion- The promotion shall be done by the optimized website, social media
applications, internet ads, publications in the newspapers etc. People- The human resource shall be satisfied by the employee engagement practices and
training of the individuals in the newly built technology. Process- Standardized system of booking and payment shall be maintained for all classes
travelling in the aircraft. Physical evidence- It shall be created by attractive photos and ads of the historical
destinations involved in the tour.
Budget
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Particulars Figures (in £)
Social media marketing 150£
Newspapers 50£
Optimization of company website 120£
Journals and articles 35£
Online ads publishing 50£
Monitoring and evaluation
The monitoring control activities of the newly undertaken project shall be done on the basis of a
set benchmark. This shall facilitate comparison of the actual activity with the established
standards. The deviations that are occurred shall be timely and efficiently improved by the
company. This will help in achieving the target goals and maximize the profitability of the
company.
CONCLUSION
It can be summarized from the project that marketing is an important function of
management and has several roles and responsibilities to play in an organization that helps in the
achievement of objectives. It has shown that all the departments in an organization are
interrelated and their activities are integrated to generate results for the company. The elements
of the marketing mix can be grouped together to form the broad objectives which are to be
accomplished by the personnel. The marketing plan is formulated before the execution of a new
idea which helps in proper execution and achievement of the simultaneous results.
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REFERENCES
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