Strategic Marketing in Travel and Tourism: First Choice Case Study

This report provides a detailed analysis of marketing within the travel and tourism sector, with a specific focus on First Choice. It begins by discussing core marketing concepts such as needs, wants, demands, products, value, satisfaction, and quality, emphasizing their importance in the tourism industry. The report assesses the impact of the marketing environment on First Choice, considering both internal and external factors, and explores factors affecting consumer motivation and demand in travel and tourism, including personal budgets, safety, environment, and social factors. Furthermore, it analyzes market segmentation principles and their application to First Choice's marketing planning, highlighting demographic, geographic, psychographic, and behavioral segmentation. The report also examines the importance of strategic marketing planning for First Choice and discusses the relevance of marketing research and market information to managers in the travel and tourism sector. Finally, it evaluates the role of the promotional mix and provides a plan for an integrated promotional campaign for First Choice Summer Deals 2019 holidays, incorporating elements such as advertising, sales promotion, public relations, direct marketing, and personal selling.

MARKETING IN TRAVEL AND TOURISM

MARKETING IN TRAVEL AND TOURISM
Contents
Introduction............................................................................................................................. 3
Task1...................................................................................................................................... 4
LO 1. Understand the concepts and principles of marketing in the travel and tourism sector..........4
P1.1 Discuss the core concepts of marketing for the travel and tourism sector...........................4
P1.2 Assess the impact of the marketing environment on individual travel and tourism businesses
such as First Choice and tourist destinations with reference to Turkey and Spain......................7
P1.3 Discuss the factors affecting consumer motivation and demand in the travel and tourism
sector............................................................................................................................... 8
P1.4 Analyse the principles of market segmentation and its uses in marketing planning at First
Choice.............................................................................................................................. 9
Task 2................................................................................................................................... 11
LO 2. Understand the role of marketing as a management tool in travel and tourism...................11
P2.1 Analyse the importance of strategic marketing planning for a selected travel and tourism
business (First Choice) or tourist destination (either Turkey or Spain)....................................11
P2.2 Discuss the relevance of marketing research and market information to managers in the
travel and tourism sector with reference to First Choice........................................................12
P2.3 Assess the influence of marketing on society...............................................................13
Task 3................................................................................................................................... 14
LO 3. To understand the role of the marketing mix in the travel and tourism sector.....................14
P3.1 Discuss issues in the product, price and place elements of the marketing mix with reference
to First Choice Summer Deals 2019 to Spain and Turkey.....................................................14
P3.2 Assess the importance of service sector mix elements to the travel sector........................14
P3.3 Apply the concept of the total tourism product to an individual tourism business such as
First Choice.................................................................................................................... 14
Task 4................................................................................................................................... 17
LO4: Be able to use the promotional mix in travel and tourism.................................................17
P4.1 Assess the integrated nature and role of the promotional mix.........................................17
P4.2 Plan and justify an integrated promotional campaign for First Choice Summer Deals 2019
holidays.......................................................................................................................... 19
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Conclusion............................................................................................................................. 22
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Introduction
The present report is going to discuss about the travel and tourism sector for being an
important business and crucial turnover to the global economy. The rate of progress and
growth for a nation are largely dependent upon the growth of the tourism sector of the
country Further the report is going to discuss the detailing of the various concepts that are
utilized and applied within the travel and tourism sector.
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Task1
Executive Summary
This report elaborates the core concepts of marketing in reference to tourism sector. An
assessment of the impacts of marketing plan of First Choice in context of Spain was done
here. Apart from this, the factors affecting the consumer demand in this sector were discussed
here along with the principles of marketing segmentation in context of First Choice.
Introduction
Marketing is the backbone for every business. In this report, a discussion on the core
concepts of marketing in context of tourism sector is done. In addition to this, an assessment
of the impacts of the marketing on the First Choice with reference to Spain and Turkey.
Moreover, a discussion on the factors influencing the consumer demand in the tourism sector
has been carried out. The report ends with an analysis of the principles of segmenting the
market and its uses in marketing plans of First Choice.
LO 1. Understand the concepts and principles of marketing in the travel and tourism
sector
P1.1 Discuss the core concepts of marketing for the travel and tourism sector
The concepts of the marketing revolves around the features, such as needs, wants and
demands, products, value, satisfaction & quality, relationships, transaction, exchange and
market. Marketing in context of tourism starts from the demand and need of the customers
and ends after they achieve a level of satisfaction. It is the duty of the manufacturers to
provide the quality products and services so as to develop a brand and earn customers'
loyalty. Since the tourism market is ever-changing, therefore it is the prime responsibility of
the service providers to study and analyse the current trends and changing needs of the
customers. Consumers are more interested in comparing the value of the service with its
quality. Before making any payment, customer usually evaluate the worthiness and
usefulness of the service. The figure 1 shows the core concept of marketing as a cyclic
process (Armstrong, et.al, 2015). The travel industry of the Turkey and Spain are the fastest
growing in the world. Therefore, First Choice has to adapt to the situation and should work in
accordance with the cycle of as mention later in this section.
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Needs
Need are the quintessential for survival. It is more of a state of deprivation. The needs of
consumer plays a crucial part in the tourism mechanism. If a business fails in identifying the
needs of the customers in tourism sector, then it may have some serious consequences. If
needs are not fulfilled, then this may leads to dissatisfaction. The need are necessary to
sustain the global demands of the tourism.
Wants
Specific wants are the source of travel motives that a consumer desire to experience. Wants
include, desert safari, bird century visit, camping in the woods, etc. Tourism businesses must
understand the demands of the tourist and plan their strategies in accordance with them only.
The present situation have led to ever increase in the satisfactory level of the customer.
Demands
The customer demands are the inner feelings for experiencing the new things. It is
characterised by the willingness to buy need or want. These can be influenced by external
pull factors. In addition, demands are highly influenced by the wants of the tourism industry.
Products
To satisfy the customers’ needs, wants, and demands, businesses in tourism sector have
designed and launched various services, such as enclave tourism, resorts, water cities, fun
parks, etc. These are further bifurcated into services as per the socio-economic status of
consumers (Armstrong, et.al, 2015).
Value, Satisfaction, Quality: Customer compare the value of the commodity with its
quality. If the two matches, then this leads to satisfaction of the customer. If this goes in the
opposite direction, then it may create dissatisfaction.
Exchange, Transaction
Exchanging the interest of the customer and there needs through the customer are looked
upon the tourist establishment. Before making any payment, customer usually evaluate the
worthiness and usefulness of the service.
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Figure 1: Core Marketing Concepts
(Source: By Author)
The important techniques and principles are promoted for instance through photography,
destination blog, article and many more. They often play the major role in awarding the
people of the destination extraordinary features.
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P1.2 Assess the impact of the marketing environment on individual travel and tourism
businesses such as First Choice and tourist destinations with reference to Turkey and
Spain
Marketing environment is composed of both internal and external factors that directly or
indirectly influence the business. First Choice is a travel and tourism organisation that
functions as a subsidiary of TUI Travel. Due to the market uncertainties, the company is
reshaping its marketing strategies in Spain. Marketing environment is influenced by the
customers’ need, rising competition, pricing strategy of rivals, other demographic and
psychological factors. Understanding the interrelationship between the business and the
customers is important. The strategic and marketing mechanism of First Choice operates
within three types of marketing environment.
Macro Environment: It comprises political, economic, and social factors.
Micro Environment: It includes business-related internal factors, such as business plans,
marketing strategies, workforce segment, etc.
Market Environment: Market environment, consumers, suppliers, and third parties.
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P1.3 Discuss the factors affecting consumer motivation and demand in the travel and
tourism sector
There are many reasons for people to travel, such as family living in other city, work trips, to
recreational and pleasure. Destination and mode of travel depend on multiple factors that
affects the consumer behaviour. Those factors have been discussed below:-
Personal Budgets: The mode of travel and travel destination choices are based on the
savings of individuals. Some might prefer to travel via flights, whereas a few might have
desires to travel via ships. All depends on budget. Similarly, for booking the hotels, some
might choose suite or luxury rooms, whereas some may book cheap motels.
Safety and Security: It is the motivating factors. Nobody wants to travel to Syria right now
because of the terrorist activities of ISIS. One may not feel safe in such environment. On the
other hand, Switzerland, London are the most famous travel destination because travellers
feel safe in there.
Environment: Countries having a soothing environment and are full of natural resources are
most opted travel location. It drives the travellers to come and live in harmony with nature.
Personal Factors: It includes tourist personality, attitude, lifestyle, perception, age, reference
groups. These are also called individual explicable variables.
Social Factors: Factors like family, culture, beliefs, social status, etc., define the traits of an
individual. Therefore, these factors have a strong effect on individual’s behaviour.
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P1.4 Analyse the principles of market segmentation and its uses in marketing planning
at First Choice.
It is a well-known fact that the service sector is quite dynamic and unstable sector. The
market keeps on diversifying and changing. Therefore, market analyst and business
strategists have bifurcated the market into different segments (Buhalis and Foerste, 2015).
“Market segmentation” is the process of segmenting the market into different sections in
which consumers of similar traits are grouped in one section. The whole principle behind the
segmentation is to satisfy the needs of the different customers in the best way possible. In
context of First Choice, the segmentation could be done on the basis of socio-economic status
and varying needs and wants of the customers.
Forming a business plan in order to grow the business in Spain requires a focus on different
sub-group. This will help in the growth. It is important that First Choice should focus on
more than one sub-section as the needs might be varying.
(Figure 2: Market Segmentation and Factors for Segmentation)
(Source: Mbaskool.com, 2016)
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There are four crucial variables in market segmentation that are explained below:-
Demographic Segmentation: this is based on the income, age, gender, education, economic
status, etc.
Geographic Segmentation: This is based on the nations, region, state, postal codes, etc.
Psychographics Segmentation: This is based on physical characteristics of people, such as
lifestyle, social group, etc.
Behavioural Segmentation: This is based on the past purchasing behaviour of the
customers.
Market segmentation is important because of the following reasons:-
 It assists in the product development in reference to the wants of the consumers.
 It strengthen the hotel-consumer relationship
 It sets the objectives of the marketing
 It helps in budget allocation, planning and controlling the market variables.
Conclusion
This report elaborates the core concepts of marketing in reference to tourism sector. An
assessment of the impacts of marketing plan of First Choice in context of Spain was done
here. Apart from this, the factors affecting the consumer demand in this sector were discussed
here along with the principles of marketing segmentation in context of First Choice.
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Task 2
LO 2. Understand the role of marketing as a management tool in travel and tourism
P2.1 Analyse the importance of strategic marketing planning for a selected travel and
tourism business (First Choice) or tourist destination (either Turkey or Spain).
For First Choice, there are numerous benefits of strategic marketing planning that are
intrinsically connected with the success and growth of the organisation (Buhalis and Foerste,
2015). The importance of the strategic marketing and its utilization over the First Choice
marketing plan in Spain are discussed as follows:
 It helps the organisation in directing the business growth. It includes establishment of
robust goals that assist the business to focus on specific areas, such as cost, customer-
related goals.
 During initial period, operating in Spain might require some initial processes which
are unproductive now. Therefore, strategic planning helps in removing them and
enhances the efficiency by improving focus on essential factors.
 The framework defined under strategic marketing plan gives a reference for
budgeting, defining the action plan, and providing customer service.
 It provides a thorough understanding of target audience and market. This helps the
management of First Choice in decision-making process.
 In short, strategic management plan helps in driving the essential funds, resources,
and achieving marketing goals.
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