Marketing in Travel Tourism: Analysis of Thomas Cook's Strategies

This report provides a comprehensive analysis of marketing within the travel and tourism sector, using Thomas Cook as a case study. It begins by exploring the core concepts of marketing, including needs, wants, and demand, and their application within the industry. The report then delves into the impact of the marketing environment, differentiating between macro and micro environmental factors, and examines the factors influencing consumer motivation and demand. Market segmentation and its value in marketing planning are also discussed. The second part of the report focuses on strategic marketing planning, emphasizing its importance for Thomas Cook, and the relevance of marketing research and market information for managers. The influence of marketing on society is also considered. The report concludes with an overview of the integrated nature of the promotional mix. The report highlights the significance of adapting marketing strategies to understand and meet consumer needs in the dynamic travel and tourism market.

Marketing in Travel
Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Core concept of marketing for travel and tourism sector......................................................1
1.2 Impact of marketing environment on individual travel and tourism.....................................3
1.3 Factors affecting consumer motivation and demand in travel and tourism..........................3
1.4 Market segmentation and its value in marketing planning...................................................4
TASK 2............................................................................................................................................5
2.1 Importance of strategic marketing planning for Thomas cook.............................................5
2.2 Relevance of marketing research and market information to managers in tourism sector...6
2.3 Influence of marketing on society.........................................................................................6
TASK 3............................................................................................................................................7
3.1, 3.2 and 3.3............................................................................................................................7
TASK 4..........................................................................................................................................12
4.1 Integrated nature and role of promotional mix...................................................................12
4.2..............................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is a very essential part of an organisation which help in promoting its products
and services in the market. It will assist in enhancing organisation's profitability and sales in
appropriate manner. There are various functions which help in analysing potential demand and
supply, customer’s needs and wants, develop new plans and strategies and promote various
products. Marketing is the function of identifying demands and needs of target customers and
fulfil their wants (Garín-Muñoz and Pérez-Amaral, 2011). A travel and tourism firm require to
evaluate new trends of market and demand and then serve their products and services in large
market. By evaluation and determination of level of product demand should be based on
marketing function. This report is based on Thomas cook who arrange summer vacation package
of 2018 to Morocco and Egypt. The major issue which occurs in this project are related to
marketing concepts, roles, techniques, tools, fundamental principle, marketing mix and
promotional mix. There are some other problems which are faced by marketing department of
firm in interpretation and preparation of strategies for promoting more products and services.
TASK 1
1.1 Core concept of marketing for travel and tourism sector
There are several marketing concepts which are implemented to the travel and tourism
sector. Marketing is the tool of activities, institutions and range of process that help in
communicating, delivery and exchange of goods or services to valuable clients, and satisfy their
needs and wants in effective manner. This includes various decisions which are taken by firm for
highlighting some issues of marketing which increase its sales and productivity (Goeldner and
Ritchie, 2012). It is important to know different types of concepts of marketing which assist in
understanding target customers who are interested in purchasing the respective products. This
includes desires of buyers, competitor’s strategies and functional coordination. There are various
core concepts of marketing which are related to travel and tourism are as under:
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Illustration 1: Core concept of marketing, 2017
(Source: Core concept of marketing,2017)
In the above image, there are five core concept of marketing function in Thomas cook.
These are some values which assist company in concerning its functions which are based on core
concept of marketing.
1. Needs, wants and demand- Company should identify its customer’s desires and
requirements and they work on it. They will analyse client’s choice, taste and preference
which attracts them more towards their services.
2. Value, satisfaction and quality- Product have some value between customers and it will
satisfy their wants, needs etc (Goodall and Ashworth, 2013). If an organisation cannot
provide buyer’s expected services, then they will easily reject them. Recently marketing
functions are trying to understand the consumer expectation and demand while analyse
the competitor’s services and they will develop better product or service in comparison
with rivals.
3. Products and services- The function of marketing help in identifying needs and wants of
consumers. Company will prepare sample package and management make them it to
actual product which can be used by customers.
4. Market- It is external factor and it is analysed by marketing department. This will assist
Thomas cook in understanding competitors and other forces plans to develop new
strategies.
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5. Exchange, transaction and relationship- If a person purchase product from seller in
exchange of some money then it is known as exchange (Hahm and Wang, 2011). And
when goods are transferred to the buyer it is called transaction and all these business
functions are run smoothly with making strong relationship between buyer and seller.
1.2 Impact of marketing environment on individual travel and tourism
Marketing is an important function of an organisation which help in promoting various
products and services. There are certain ways which are used by company for developing
impactful marketing environment and also increase travel and tourism sector activities. The
business is controlled and managed by marketing department that will analyse external hurdles
and make piper solution to deal with it. There are two environmental factors such as macro and
micro environment.
Micro environment relates to all the internal factors which directly affects business
operations and functions. It is controlled and managed by company. On the other side macro
environment includes external factors which cannot be controlled and managed by company and
it directly or indirectly influenced business activities. These are important for every organisation
that help in evaluating environment changes which take place outside and inside company (Hall,
2013). They required to develop effective strategies which help in maintaining the firm edge in
market.
The travel and tourism sector contributing more than 7% to the country economy and
earn approx. 18 million tourists per annum. Egypt has provided sound environment place and
locations to their tourists. It has unique geographic features. This sector will also add more than
approx. 13% to country economy.
1.3 Factors affecting consumer motivation and demand in travel and tourism
Motivation is the act which influence any person to do something which will convey in
satisfaction to them. If company will satisfy consumer wants and needs in proper manner the
they will always purchase product to that seller. There are several factors which have direct and
indirect impact on consumer motivation are as follows:
 Income and salary- The consumer demand totally depends on its income. If a person does
earn much then he won’t be interested to buy any tour operator product and services.
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Salary and income plays an important role in choosing specific tour package for a person.
Company tries to prepare package which fulfil consumer needs and requirements.
1. Technology- It is an essential part of every organisation which assist in improving growth
and development. It will analyse various competitors’ products and services in different
market and help in making unique goods which attracts large number of customers (Hall,
Timothy and Duval, 2012). Thomas cook adopt latest techniques and methods that grow
business success and strength.
2. Availability of free time- If most of the people have not free time to issue travel package
or offers then it will be waste of resources.
3. Flow of money- It is such type of distribution of money in the community. If any country
have high revenue than it cannot provide growth and development in rapid manner.
4. Destination- Thomas cook offer attractive destination to people like Morocco and Egypt
which will capable to present large number of individuals due to their uniqueness.
1.4 Market segmentation and its value in marketing planning
An organisation can target their segmenting market and customers which help in identify
potential consumers of different places. Market segmentation assist in reducing wastage and
enhance efficiency of firm. The demographic segmentation help management in understanding
tarot customers and market areas. There are some principles which aid in formulating and
implementing segmentation are as follows:
1. Customer satisfaction- Every company will treat customer as a king of market. They
should provide product and services which demanded by them and fulfil their needs and
wants (Hays, Page and Buhalis, 2013). An enterprise should also be fixed reasonable
price that will affordable for each buyer.
2. Consumer retention- It is an important thing for every seller is to retain their existing and
attracts new customers. Company will also focus on their individual buyer and satisfy
them in proper manner.
3. Accessibility, measurable and substantial- If segmentation is expected as per requirement
of customers then firm cannot achieve target goals and objectives. They need to analyse
their substantial and measured production level.
4. Advance segment determination- In this principle, segmentation is done in advance basis.
It assists management in developing new strategies and plans which provide growth
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within an organisation. Also, company will produce products and services which are used
in segmented area.
These are the principles which directly impact on marketing planning and segmentation is
conducted as per market requirements.
TASK 2
2.1 Importance of strategic marketing planning for Thomas cook
Marketing environmental situation in travel and tourism industry is sohighly dynamic.
The strategic planning help in building structure for the organisation. It provides direction in
which they accomplish goals and objectives (Hudson and Thal, 2013). Thomas cook is the
multinational company that has been established in 1841. It provides quality products and
services to their buyers in all over the world. It has certain strength, weakness, opportunities and
threats which identify impact on business operations. SWOT analysis of cited company is as
under:
Strength
1. It is the oldest company in tourism
industry
2. They have high experience
3. It has customization and flexibility
features
Weaknesses
 Huge competitions
 Long term debts
 Uncertainty with future changes
Opportunities
 Expand business areas
 Rise in demand of travel and tourism
sector
 Strong presence in market
Threats
 Fear of similar products companies
 Company have lower income
 Face tough competitors
SWOT analysis help in analysing best method or technique which assist in improving
performance and profitability of an enterprise. This will help in eliminating weakness and
improve strength in effective manner.
There are some benefits of Thomas cook:
 Effective planning of advertising campaign
 Survival planning
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 Developing more productivity of products and services
 Highly satisfying customer’s needs and demands
 Improved encouragement and eliminating conflicts between employees and organisation
2.2 Relevance of marketing research and market information to managers in tourism sector
Marketing research is very important in travel and tourism sector for Thomas cook
company. This will help in providing them information which are related to competitors,
consumer taste, latest market trends, requirements (Kayar and Kozak, 2010). Research provide
an idea to company for identifying opportunities and threats in market. All these information is
used to evaluate marketing options, monitoring whole performance and understanding entire
process of management. The process of marketing is very simple, it includes data collection,
evaluation of finding, data analysis and communicating information to all company department.
Marketing research is used by different department so as to measure all market entry
strategies of an organisation (The marketing mix 4P's and 7P's explained. 2015). Thomas cook
will use this techniques for determining its competitors and develop strategic approach to market.
This will help in identifying various types of approaches which assist in entering into new
market and also gain maximum profit. It will help in segmenting whole process, positioning and
targeting particular package in market such as Egypt and Morocco. It also provide more
information which will assist Thomas cook in updating its information system.
Managers of cited company will use various type of marketing functions (Molina,
Gómez and Martín-Consuegra, 2010). They also gain inside knowledge of whole market and are
required to develop suitable strategic plan for the firm. This is correct activity which help in
preparing new plans and policies for the company. It assists in rising portfolio of enterprise and
help managers in knowing large market range and opportunities.
2.3 Influence of marketing on society
It refers to that operations which help to convince target consumers and request to buy
products and services. The main objective of marketing is to attract more customers towards
company’s products and services. The basic and foremost aim of marketing is to develop
awareness among people and provide accurate information regarding each product.
Marketing is the activity which influence large number of persons towards specific goods
and services. It also influences society in different manner because commodity is only made for
potential customers (Morrison, 2013). The campaign of marketing only targets those buyers who
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are interested to purchase particular company’s products and services. The core concept of this is
to analyse the effective aim which help in attracting consumers towards business. It will enhance
sale volume and make proper innovation in their goods. The marketing strategies assist in
satisfying demand and needs of customers.
TASK 3
3.1, 3.2 and 3.3
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