Marketing Analysis: Travel and Tourism Sector Strategies Report

This report provides a comprehensive overview of marketing within the travel and tourism sector. It begins by defining core marketing concepts and analyzing the influence of the marketing environment, including micro and macro factors, on individual businesses and destinations. The report t...Read More

Marketing in travel tourism
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Core concept of marketing for travel and tourism sector......................................................3
1.2 Impact of marketing environment on individual travel and tourism businesses and
destinations..................................................................................................................................4
1.3 Factors affecting consumer motivation and demand in travel and tourism sector................5
1.4 Analyzing principles of market segmentation and its uses in marketing planning................5
TASK 2............................................................................................................................................6
2.1 Analysis of importance of strategic marketing planning for tourism business......................6
2.2 Relevance of marketing research and market information to managers................................6
2.3 Assessing influence of marketing on society.........................................................................7
TASK 3............................................................................................................................................8
3.1 Issues in product, price, place elements of marketing mix....................................................8
3.2 Importance of service mix elements to travel sector.............................................................8
3.3 Applying the concept of total tourism product to an individual tourism business................9
TASK 4............................................................................................................................................9
4.1 Assessing integrated nature and role of promotional mix.....................................................9
4.2 Plan and justify integrated promotional campaign for Sheraton hotel..................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing is considered as one of the integral parts of the business that assist in making
promotion of goods and services in an effective manner. The term marketing can be referred as
the activities that are attached with buying as well as selling of the products and services. It
involves advertising, selling as well as delivering of products to the customers. In the present
report, marketing has been discussed in context of travel and tourism. The study entails to
understand the concept and principles of marketing in travel and tourism sector. Further, it
includes the role of marketing management tool in travel and tourism.
TASK 1
1.1 Core concept of marketing for travel and tourism sector
Marketing is considered as the element that is related with operations of business,
irrespective of the industry where company is carrying out its operations. It has a greater role in
establishing the interaction with stakeholders and determining as well as in gaining insight to the
needs of target market. This results in increasing the image of brand and loyalty of customers.
There are several concepts related with marketing which are referred as marketing orientation
(Middleton, Fyall, Morgan and Ranchhod, 2009). There are five concepts of marketing that are
being used by Thomson holidays. This includes product, production and selling, marketing as
well as societal concept. The production concept is one of the oldest concepts of marketing and
promotions. It focuses on manufacturing of the product on large scale and in huge quantity. It has
been stated under product concept that the quality of product is of greater importance. With
superior quality, better outcomes would be achieved by the organization. Further, the business
that incorporates selling concept believes in attracting the customers in order to enhance the sales
as well as to assist in sustaining within market (Gretzel and Yoo, 2008). The marketing concept
has greater role in making analysis of needs and wants of target market along with the ways in
which it can be satisfied. In contrast to this, societal concept gives huge importance to the
welfare and development of organization where it is operating.
The management of Thomson Holiday can make an effective use of marketing as well as
societal concept. This would assist the business in sustaining within market for a long term.
Under this, the firm can pay attention in determining the needs and wants of target customers.
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Further, through societal concept, Thomson Holiday can pay attention towards society by
complying with its corporate social responsibility. Firm is going to organize tourist package of
six days in which people will visit cities like Denmark, Amsterdam, Lisbon and Porto. In order
to make cultural package successful firm will advertise its tourism package. In this it will use
advertising appeal concept. Under which on the basis of specialty of historical monuments it will
project its package. It will position its product on the basis of aesthetic nature of Denmark,
Amsterdam, Lisbon and Porto. Along with this it can also use festivals in order to position its
tourist package. In this way marketing concepts can be used for marketing of tourist package of
the firm.
1.2 Impact of marketing environment on individual travel and tourism businesses and
destinations
The activity related with marketing is highly influenced by several factors and forces.
The marketing environment is categorized into macro and micro factors. The micro factors
include suppliers, customers, competitors whereas the macro environment includes the factors
such as political, social, technological as well as economical. These have been enumerated in the
manner below:
Micro environment Suppliers: For Thomson Holiday, the role of supplier is very crucial. This is because they
link the business across the globe from the customers (Goeldner and Ritchie, 2006). The
suppliers of the company include agents, accommodation providers who affects the travel
and tourism business to greater extend. It is important that they offer quality services in
an effective manner. Customers: They are most important element that has huge impact on the products as
well as services of the business in a significant manner. It is important to gain better
knowledge regarding the needs and wants of the customers in order to satisfy them.
Change in customers’ needs affects the overall travel and tourism business.
 Competitors: Increase in competitors of Thomson holidays has huge impact on the
individual travel business as this reduces the sales as well as profitability of company by
minimizing the base of customers to a greater extent (Marsh, 2013).
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Macro environment Political: In the present era, political environment within UK is stable. It has the positive
impact on business as it allows firm to operate in an effective manner. The transportation
as well as infrastructure system is effective in communicating with the tourists in the
nation. Social: The trends in UK are changing faster. In the present era, there is high demand of
the customers to gain offers. Further, they demand at gaining unique aspect of travel and
tourism that brings suitable experience to individuals. People of UK like to visit place
that are culturally reached. The cities that are covered in the package are well known for
their rich culture heritage. Hence, tourist package of the firm will certainly get popularity
among UK people. Technological: UK travel and tourism has changed over time. There is existence of
several technological trends within industry. One of this is related with online booking.
The tourist has need to book travel arrangements as well as tickets through internet from
distinct location (Xiang and Gretzel, 2010).
 Economical: Economy of countries in which Denmark, Amsterdam, Lisbon and Porto are
situated is not good. Due to this reasn there is a high inflation rate in the relevant nations.
Hence, cost of tourist package that is covering cities like Denmark, Amsterdam, Lisbon
and Porto will be high. Due to this reason less people may prefer to travel through
company tourist package.
1.3 Factors affecting consumer motivation and demand in travel and tourism sector
Customer motivation and demand are the two major aspects that need to be paid with
attention by the travel and tourism business such as Thomson Holiday in an effective manner.
This is due to the reason that it affects the overall performance of firm and affects its survival in
the market. It is essential for the management of business to understand the motivation level as
well as demand of customers in order to formulate the ways in which it can be achieved. With
the assistance of such, the tourism business can develop ways through which they can offer
maximum satisfaction to the customers (Hudson and Ritchie, 2006). This can affect their loyalty
in a significant manner. Through this, company would be able to enhance its survival in the
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market for a long term. There are several models as well as approaches that can assist the travel
and tourism business in making evaluation of customer demand and motivation. One of this is
related with economic model customer possesses limited power to buy and they prefer
purchasing the product that is needed greatly. In Denmark, Amsterdam, Lisbon and Porto there
are many places to visit and these cities are known for the architecture, culture and historical
places. This will act as motivating factor for those who love to visit places that have special
identity across the globe. Hence, architecture, culture and historical places are the three factors
that will motivate people to visit through company tourist package on the mentioned cities.
1.4 Analyzing principles of market segmentation and its uses in marketing planning
It is an important fact that marketing is one of the essential business operations that has
impact on the overall performance of organization. Segmentation is an important part of
marketing. It is referred to as the process under which the management makes division of target
market into various segment (Ferrell, 2012). This assists Thomson Holiday in concentrating the
marketing efforts in a particular direction. With the assistance of such, the promotion can be
done in an effective manner. Marketing segmentation is all about determining the portions of
market that varies from one another. With this, the organization can promote different products
in varied markets. This would assist in satisfying the specific needs of customers. The
segmentation of market needs to be evaluated on the basis of criteria such as identifiable,
accessible, substantial, unique needs as well as durable (Berman, 2011). It is important that the
attributes related with segment are measurable in order to ensure their identification. Further, the
segment must be such that it can be reached with the assistance of various channels of
communication. It is essential that the segment needs to be larger so that organization can get the
need to justify their resources effectually. The segment needs to possess the ability to reply
significantly to various segments that are present in the market. Market segmentation has huge
role in market planning as with this, the promotional strategies for target market are being
determined. Market segmentation is done on various factors and firm is segmenting market on
the basis of cultural factors. Due to this reason firm select Denmark, Amsterdam, Lisbon and
Porto for its cultural package. This is correct decision because country to country culture get
changed. Hence, this acts a lucrative factor for the people to visit other nations. After doing
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market segmentation a marketing plan is prepared in which marketing mix is designed in such a
way that helps firm in attracting customers at the market place.
TASK 2
2.1 Analysis of importance of strategic marketing planning for tourism business
Strategic marketing planning is referred to as procedure that is required to be undertaken
by operational as well as managerial staff members. This is in order to develop suitable strategies
for marketing. With the assistance of such Thomson Holiday can attain its objectives with
effectiveness. Strategic marketing planning is an important part of entire functions, tasks that are
performed by management in a particular course of time (Crooks and et.al., 2011). This is in
relation to when the management of Thomson Holiday is required to promote their products and
services in an effective manner. Further it is important to ensure that the marketing decision is
taken appropriately. It is important that thorough analysis of target market is effective in
retaining and attracting large number of customers for time duration.
There is huge importance of strategic marketing planning for tourism business. These are
as such. The role of strategic marketing planning is important as it assist the business in
providing direction that can result in its long term survival (Park and Yoon, 2009). Further, it
helps the business in removing unproductive ventures as well as initiatives. It also supports
business to focus on the activities that are important one. Further, it assists the business in
providing maximum satisfaction to the customers.
Firm is using a strategic planning in order to attract customers. This is used to
differentiate company products from the competitors’ tourist package. Under this firm prepare a
package and under this it select specific cities that are known across the globe for the beauty or
aesthetic nature. These cities were Amsterdam, Denmark, Porto and Lisbon. Under strategic plan
it keeps low cost of its package. This acts as lucrative factor for people because with passage of
time cost of tourist package also increases. It advertises its package on the basis of culture factor.
In this way it differentiates and positions its tourist package among people. Thus, it can be said
that firm perform well in competitive environment.
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2.2 Relevance of marketing research and market information to managers
For the purpose of developing an effective marketing plan, it is essential for company to
carry out thorough analysis of the target market. This would offer them a wide range of
information as well data that assist them in the development process of marketing strategies.
There is a huge importance of marketing research as well as market information to the manager
of Thomson Holiday. With the assistance of market information, the organization can effectively
can insight to the market it is required to serve. This would assist the business in developing plan
in an effective manner so that activities of business can be carried out in an appropriate manner
(Liu and Tsai, 2009). The information related with market is effective in gaining knowledge
regarding current demand as well as tourism trends. Thus, this assists Thomson Holidays in
developing the plan accordingly. The analysis of market can be done with the assistance of
market research. Through this, company can effectively gain knowledge regarding the needs as
well as requirement of customers. Thus it can develop marketing efforts in accordance with it. In
addition to this market research has effective role in knowing the trends that prevailing in the
travel and tourism sector. Firm conduct a marketing research and under this it collects a lots of
information about the people preference on foreign cities and factors that motivates them to visit
those cities at least once. On the basis of market research it select cities Lisbon, Amsterdam,
Porto and Denmark for its tourist package. Its tourist package also gets a huge success. Hence, it
can be said that marketing research has a great significance for managers.
2.3 Assessing influence of marketing on society
Marketing is referred to as an activity that not just affects the organization or the
competitors of the business but it majorly influence the society where the company is carrying
out its operations. The impact of marketing on society can be viewed in terms of ethical
standards as well as concepts. The marketing strategies which Thomson Holiday uses in tourism
sector have huge impact on the life of the individuals living in society (Mehmetoglu and
Norman, 2013). This has been assisted by the fact that such tactics results in affecting the ethical
standards as well as moral principles that are being complied with by the people that are
belonging to a particular region. In situation, when the strategies related with marketing are
negative in nature then this results in affecting the thinking of people of society in an adverse
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manner. There are greater responsibilities attached with the marketing strategies that are being
adopted by the organization (Dent, 2011). It has been determined that marketing tactics has a
huge impact on the society in terms that it assist the business in gaining knowledge regarding
needs, wants as well as expectations of customers. Thus, they can bring new products in the
market. Marketing put a huge influence on society because it is firms that bring changes in the
consumer behavior of the people and change their preferences. In UK most the people likes to
visit in their home land but Thomson Holiday try to bring change in this trend and it cover
locations in its tourist package that are situated abroad. Its package also gets a huge success. So,
it can be said that marketing to large extent influence society.
TASK 3
3.1 Issues in product, price, place elements of marketing mix
There are four major components of marketing mix. This includes product, price, place
and promotion. These elements are involved in the marketing strategies. Further, they have a
critical role in the process of marketing the products as well as services. There is the existence of
several issues that are in relation with product, place as well as price. The major issue with
respect to product is in case when they are intangible in nature. This implies that customers of
London Gatwick Airport might not gain insight to the superiority in services that are being
delivered to the customers. Differentiation in products is another major issue that compels the
organization to pay huge attention towards market research (Melewar and Saunders, 2000). The
pricing that needs to be determined by the firm is also a major issue. This is because it
determines the extent to which customers would be attracted towards services that are being
offered by the business. In case if company keeps low prices then this would have impact on the
performance of business to a greater extent. There is a great issue that is related with the place. It
includes the problems that are associated with location and access to the products. Thus, London
Gatwick airport requires constructing the airport at the more convenient place. In the present era,
convenience plays an important role in the customer decision making. In addition to this, London
Gatwick airport also difficulty in making effective or different promotional campaign which
develops the positive image in front of the existing and potential customers.
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3.2 Importance of service mix elements to travel sector
The elements of services mix involve people, process as well as physical evidence. These
elements are of vital importance to the travel and tourism business. It is important for London
Gatwick Airport to provide suitable training to their employees so that they can offer quality
services to the customers. Further, this would result in satisfying their needs in a significant
manner. It is important that process of guiding the tour needs to be developed in an effective
manner so that it can offer the best travelling experience to the visitors. The role physical
evidence is also very crucial. Under this the company offers gifts as well as replicas of the
renowned buildings in particular region to the customers (Passemard and Kleiner, 2000).
Physical evidence includes interior and exterior of the airport. It also plays an important role in
attracting the large number of the customers towards the London Gatwick airport. Bty makuing
special seating arrangement London Gatwick can evolve satisfaction among their customers and
thereby build loyalty among them. The social media can be an efficient way in which the
knowledge can be offered regarding services that are offered by London Gatwick Airport. This
would assist the firm in attracting large number of customers to a significant level. The elements
of marketing mix are of greater importance as they assist in defining the right offer and price,
create awareness as well as assist in getting the desired sales response. In travel and tourism
sector, there is a greater importance of service marketing mix as it assist the business in
attracting large number of customers towards the offerings.
3.3 Applying the concept of total tourism product to an individual tourism business
There are wide range of places that are can be visited by the customers when they would
avail the services that are being offered by London Gatwick Airport. Tourism industry is single
one but is consisted of several industries that include hotel, airlines, travel agency, etc. Each of
the industry is engaged in offering single product. In order to provide appropriate travel
experience all these are combined together. With this all these industries are able to attain their
goals with effectiveness. Total tourism product is referred to as bundle of facilities that are being
offered by London Gatwick Airport in order to satisfy the needs of the customers (Alexander,
2007). In the present case scenario the total product of London Gatwick Airport includes the
accommodation facilities, travelling packages etc. These can be used in order to enhance the
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experience of the visitors in an effective manner. These are individual products of airline sector
under travel and tourism industry. In addition to this, Airport also offers quality food as well as
other products and services and there by raises the standard of living of the people. Through this,
airport offers bundle of product to their customers.
TASK 4
4.1 Assessing integrated nature and role of promotional mix
While carrying out the marketing process, an essential role is being played by
promotional mix. This is used by the travel and tourism sector with an aim to create awareness
about the product in market. It is important for the authorities of Sheraton Hotel to pay attention
in order to make sure that right and best promotional mix is used by the organization with
effectiveness. This is because such has an important role in determining the success of firm in a
significant manner (Bitner and Booms, 2002). It is important in order to attract large number of
customers towards the product. It is recommended to the management to make use of integrated
communication technique under which different channels as well as methods of communication
will be used. Further, it is essential to ensure that they are not linked with one another. Along
with this, several promotional tools are also required to be used. There is greater role of
promotional mix in increasing attractiveness of the customers towards the products. This results
in increasing the sales as well as profitability of the Sheraton hotel in an effective manner. In
order to push up the sales Sheraton requires making advertisement on the social networking sites.
Now, large number of the people spends more time on the social networking sites. Through this,
Sheraton can maximize their sales as well as profit by taking into consideration the integrated
promotional campaign.
4.2 Plan and justify integrated promotional campaign for Sheraton hotel
In order to promote the services of Sheraton hotel it is being suggested to the
management of the firm to make use of promotional tools. This is because it has effective role in
increasing the awareness among the customers in the market. The promotional tools include sales
promotion, mass marketing as well as direct mail marketing (Craig and Campbell, 2012). In
order to use of the strategy that is related with sales promotion it is essential for the organization
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to offer different types of discounts as well as schemes to the visitors. This is an effective
approach that would the business in attracting large number of customers in an appropriate
manner. Likewise direct mail marketing as well as mass marketing is promotional technique that
would assist Sheraton hotel in reaching large number of audiences within specified duration of
time. Further it also offers them opportunity to have interaction with them. In order to carry out
such the methods such as social media marketing, mail letters as well as e-mails can be used.
Social networking sites are the best way through which Sheraton can develop the awareness
among the customers about the product and services offered by them. Through this, it can
increase the market share of an organization and there by brand image.
CONCLUSION
It can be concluded from the study that marketing plays an important role in determining
the success of business. This is because; through this, promotion of goods and services can be
done in an effective manner. There is a greater impact of marketing activities on the performance
of firm that are operating in travel and tourism sector. It has been inferred that strategic
marketing planning is of greater importance as it assists the business in putting efforts in a
particular direction. Marketing mix elements possess a huge role in determining the success of
company to a significant level.
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