Comprehensive Marketing Report: Travel and Tourism Industry Analysis

This report offers a comprehensive analysis of marketing principles within the travel and tourism sector, focusing on the organization TUI. It delves into core marketing concepts such as needs, wants, and demands, marketing offers, customer value, and the importance of understanding market dynamics. The report examines the impact of the marketing environment, including internal and external factors like customers, competitors, political, economic, and demographic influences. It also explores factors affecting consumer demand and motivation, such as purchasing power, group behavior, economic conditions, and psychological aspects. Furthermore, the report highlights marketing segmentation principles, including geographic, behavioral, psychographic, and demographic approaches. Finally, the report discusses the strategic importance of marketing planning, research, and the marketing mix, including the promotional mix and its integrated nature.

MARKETING IN
TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Core concepts of marketing in travel and tourism sector......................................................1
1.2 Impact of marketing environment on travel and tourism......................................................3
1.3 Factors which an affect consumer demand and motivation..................................................4
1.4 Principles of marketing segmentation...................................................................................5
TASK 2............................................................................................................................................7
2.1 Importance of strategic marketing planning.........................................................................7
2.2 Relevance of Marketing Research and Information.............................................................8
2.3 Influence of marketing of society.........................................................................................9
TASK 3..........................................................................................................................................10
3.1 Issues in marketing mix......................................................................................................10
3.2 Importance of service sector mix .......................................................................................11
3.3 Concept of total tourism products ......................................................................................12
TASK 4..........................................................................................................................................13
4.1 Integrated nature and role of promotional mix..................................................................13
4.2 (Covered in Poster) ...........................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing plays a vital role in the growth and success of every business entity. It is
significant for every sector. Marketing is a process through which a firm delivers its products and
services to end customers. It aids the managers by increasing their sales and profitability in an
effective manner. In travel and tourism sector, marketing is accessible in order to gain
competitive advantages from target market. In today’s scenario, travel and tourism sector of UK
is growing day by day and it contributes around 10% in the total GDP of country (Banyai and
Glover, 2012). Thomson travel group is the chosen organisation in this present report which is
presently known as TUI. The report will describe certain core concepts of marketing in travelling
sector. There will be a discussion upon certain main factors which can be affected consumers
demand as well as their purchasing power. For this purpose, business managers are required to
adopt effective principles, that will be also described in this assignment. Also, the impact of
strategic marketing and way it can influence society will also be discussed. Further, certain pros
and cons of marketing and their impact on buyers' purchasing power will be explained as well.
Significance of TQM in order to achieve organisational goals and objectives will be also
described in this assignment.
TASK 1
1.1 Core concepts of marketing in travel and tourism sector
In this competitive era, there are certain marketing concepts which can be applied in
travel and tourism sector. As per the American marketing association, marketing is a process of
creating valuable services and a set of institutions through which managers can interact as well
as deliver their products to customers as well as a whole community. Along with this, effective
marketing also helps employees in their decision making process (Capriello and et. al., 2013). It
can also boost up employee’s capability as well as firm's profitability in a stipulated time period.
Therefore, managers of TUI needs to understand all marketing concepts which are involved
certain facilitative principles so as the company can perform in target market in a systematic
manner. It relates with customers' demand, competitors' strategies and cross functional
coordination. Below mentioned are certain important marketing concepts: -
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(Sources: Marketing concepts: 8 core marketing concepts, 2017)
 Needs, wants and demands – This concept of marketing vary from buyer to buyer.
However, in order to become successful and competitive, it is necessary for TUI to
recognise the needs and wants of their customers. It also emphasises on customers'
desires and preferences. Apart from this, needs and wants can be physiological, social,
self-esteem, self-actualisation and safety. In terms of safety, TUI has to provide safety
and security to travellers while travelling. Marketing offer – Marketing offers are related with products and services which are
delivered by a firm according to the desires of customers by concerning quality, price,
quantity and demand (Chan and Guillet, 2011). Therefore, while providing travelling
services services to society, managers need to provide those products which are
diversified in nature and able to satisfy customers’ needs in a proper manner. Customer value and satisfaction – With this aspect, firm ensures that consumers are
getting satisfaction and valuable products for which they are paying. However,
effectiveness of the services can be identified through customer satisfaction level.
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Illustration 1: Marketing concepts

 Exchange transaction and relationship – It states that customers need to acquire the
prices of their products that are charged by company. Thus, it is essential for buyers to
transact offerings from money to money. However, TUI charged a little more rather than
other travelling agencies for its tour packages.
 Markets – It consists with the place or location from where a firm wants to offers its
products. Due to globalisation TUI can easily serves its products and services in
domestic as well as international market. But firm needs to analyse potential
opportunities and threats before supplying its services in the external market.
1.2 Impact of marketing environment on travel and tourism
Marketing environment relates with certain aspects which can affect working activities
and operations of business organisation. In travel and tourism sector, marketing environment
helps managers by improving their profits and sales in a certain time period (Cox and Wray,
2011). Apart from this, TUI is offering its services in impressive countries, i.e. Turkey. There are
the famous tourist destinations of Turkey like Aya Sofya, Ephesus, Pamukkale, etc. All these
destinations are notable for their attractive lifestyle and culture. In addition, Turkey is one of the
most popular countries for the purpose of travelling in Eastern Europe.
But, in this dynamic environment, there are certain factors which can affect marketing,
i.e. internal and external factors. Internal environmental is described as under: - Customers – They plan an eminent role in the growth and vitality of business
organisations by consuming products and generating higher sales revenue for travelling
agencies. Managers are required to obtain customers' needs and produce output in an
ethical manner. Along with this, the availability of effective services should be provided
on reasonable rates by maintaining quality (Fullagar, Markwell and Wilson, 2012).
Mostly, people of 18 to 25 years prefer Turkey to spend their holidays there.
 Competitors – Adoption of effective strategies and policies by rivals can also affect the
firm’s growth and success. In order to survive in the global environment, TUI needs to
upgrade its marketing plan and communication channels so as to attract customers. In
addition, business organisation has to determine the area of competition in Turkey as
several local service providers can also influence the operational activities of firm.
Turkey is one of the most attractive places in the world which is the reason various travel
companies organise tour there.
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External or macro environmental factors are stated as under: - Political and legal factors – These elements are related with different rules, regulations,
duties and taxes which are developed by the UK government as well as European Union.
Political factors also can be affect the area of functioning of TUI in Turkey's market. For
instance- if EU has regulated competition policy so as to indulge healthy and competitive
working activities, this can effect working practices of the firm. Along with this, political
environment of Turkey very unstable (G. Woodside, Ramos Mir and Duque, 2011). Demographic factors – These factors taken account into the range of human population
and classified them on the basis of gender, age, location and income statistics.
Demographic factors are crucial and needs to be remained while taking marketing
decisions and media channels. In Turkey, on the basis of age the large share of
population is above 40 that is around 14% of overall population.
 Economic factors – It refers to purchasing power of customers as well as income level of
people of a country. This aspect helps a firm in marketing research while planning of tour
plans and summer holidays (Goeldner and Ritchie, 2012). In addition, UK is still not
recovered properly from financial crisis whereas Turkey is one of the expensive places.
Therefore, people are not able to spend much on entertaining activities.
1.3 Factors which an affect consumer demand and motivation
Consumer behaviour has a significant role in marketing; this can influence demand of
products and purchasing power of buyers in global environment. Therefore, in order to briefly
understand customers, managers need to induce market trends. Apart from this, a business
organisation need to regulate a market research so as to motive customers towards availing
products and services of the company. There is discussed some major factors which can
influence customers' demand and motivation, that are dictated as under: - Purchasing power of customers – It contains with the number of customers to buy
products and services. So that, it is important for managers to ensure the sales of services;
for this purpose they need to undertake the purchasing power of people (Haugland and et.
al., 2011). By considering this factor, TUI categorised consumers on the basis of their
buying capability in order to gain better outcomes.
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 Group behaviour – Sometimes different groups, i.e. family, friends, relatives etc. also put
a huge impact on needs and demands of customers. In terms of travelling, group
behaviour also plays an indispensable role while making a decision regarding holiday
plans of families and groups. Economic condition – Income level of customers also influence demand of travel and
tourism. Due to economic crisis in 2008, UK was faced income issues therefore, it
reduced the demand of travelling among people. Apart from this, in 2014-15 there was an
increment in disposable income of public by 1500 pound thereafter customers can easily
spend more and more on travel activities.
 Psychological factors – These elements are taken into account as perception, attitude,
beliefs and motivation. If a customer perceives Turkey as a beautiful location and worth
going so that they can easily consume products and services.
1.4 Principles of marketing segmentation
Marketing segmentation contains the classification of whole market into certain small
units on the basis of preferences, choices, needs and interest. It will helps a firm to frame and
execute affective marketing strategies and accomplish organisational goals and objectives in a
pervasive manner. Thereafter, it can be said that segmentation helps TUI to do imperative
marketing planning and gain sustainable competitive advantage. Furthermore, it is also
accessible in to determine target as well as potential customers of the firm and evolve strategies
so as to reach buyers by fulfilling their needs (Hudson and Thal, 2013). Below mentioned certain
principles of marketing segmentation: - Geographic segmentation – This segment helps a firm by diving market on certain
geographic criteria and get target customers effectively. The term is widely used in travel
and tourism sector. Apart from this, geographical segmentation is assistive in
understanding the desires of homogeneous people and certain effective communication
channels for advertisement and promotion. For example- TUI is planning its new tour
for Turkey as per the demand of visitors. It helps a firm to attain and retain visitors for
long term period. Behavioural segmentation – In this aspect, travelling companies categorised market on
the basis of attitude, morale, beliefs, behaviour and loyalty and knowledge of buyers
towards products and services (Hussein, Ennew and Kortam, 2012). In this perspective,
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TUI has targeted its loyal customers while launching any new tour package. Apart from
this, behavioural segmentation is very significant for every business organisation; by
conducting market research the refereed travelling entity can easily most preferable
destination of people where they wished to go and them formulate plan for this tour. Psycho-graphic segmentation – It involves style, psychology and interest of buyers that
can impact on their purchasing power. Psycho-graphic market segmentation also relates
with those key aspect which can stimulate visitors as they can spend effectively on leisure
operations. With this assistance, firm can easily access to those people who are willing to
expend on qualitative and luxurious tour services. AT last, due to these factors TUI can
offer high end services to visitors.
 Demographic segmentation – Here, the target market of the firm is classified into these
aspects, i.e. age, income, gender, education etc. With this, travelling companies can easily
reach different people. For instance- TUI has planned a tour for youngsters to the age of
18 to 245 where is also formulate a travelling plan for historical places for the elders.
TASK 2
2.1 Importance of strategic marketing planning
Today the scope of marketing has become vast and its different marketing strategies are
working as a helping hand to promote the travel and tourism sector of a country. Marketing
strategies differ the organisation from the competitive environment of the organisation. Tour and
tourism sector helps the country's economical growth. Along with it also helps to provide
employment conditions in country (Ip, Lee and Law, 2012). Before it was estimated that the
heritages and destinations are not required to promote to attract foreigners the heritages and
tourism destination are enough capable to promote itself. But this traditional approach also has
to change as per the technology changes in marketing strategies.
Marketing strategies of TUI in tourism are designed as per the structure of the culture,
traditions, living standards and economy of Turkey. Turkey is one of the country which have less
natural resources in comparison to other countries. Mostly Turkey's marketing strategies are
made around the specific group of tourists which are divided in different categories. Medium
level of income group of tourist have large area in planning the marketing strategies of tourism in
turkey. New policy of government differentiate the tourism product of turkey.
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Turkish government planned its marketing strategies as per the mission and vision of
tourism. TUI has to analysis the mission and vision statement of tourism. Tourism have to
categories its strategies in different parts like market penetration, market extension,
diversification and product development, is also known as Ansoff matrix. There are few
marketing strategies are most commonly used in tourism industry.
 Sustainability : An organisation always wants to work efficiently and expect a better
sustainability in near future. An organisation vision statement present the image of
sustainability of the organisation (Lee and Law, 2012).
 Advertising strategies : There are different tools are available of marketing as social
marketing, e-mails, websites etc.
 Motivation : For performing well and effective manner motivation is an essential factor
which help employee to work continuously.
 Analysis of strategies : Analysis of the strategies shows the results of approaching
technology.
2.2 Relevance of Marketing Research and Information
In travel in tourism sector, marketing research is very eminent because it renders them
accurate information and facts about existing market trends. In other words, it gives data about
competitors, customers' interests etc. Along with this, marketing research acts an edge which
generates a link between different marketing factors. It also helps managers as they can know
future opportunities and threats of global environment which will be influence their business
operations and activities (Medlik, 2012). In context of TUI, employers are regulated marketing
research so as to evaluate future option, market performance and improving decision making
process of management. There is given certain aspects which are included in market research,
such as- data analysis, data collection, interpretation and recommendations in order to
communicate with all departments in a pervasive manner. TUI also has manipulated a market
research, with which it can gained proper facts and figure about a specific topic.
Marketing research of TUI indicates that people below the age of 25 wants to visit Turkey,
because of its marvellous beauty and attractive nature. In Antayla, customers are evaluated
accommodation cost and then compare it with other travel agencies. This aids to select the best
one.
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Along with this, market research will be also helpful for TUI to determinate income level
of customers as they are capable to spend high amount on luxurious products and services. It will
be accessible for company to develop or formulate a tour plan by keeping in mind customers
preferences of the age group of 18 to 25. in context, the tour would be mediate and average in
prices as the firm is targeting youngsters. Apart from this, with the guidance of information that
is gathered from marketing research, TUI can easily analyse its current market condition so that
it can make effective planning for forthcoming years in order to draw effective conclusion.
Below mentioned the major benefits of marketing research: -
 As marketing research is a customer centric approach, so as its focuses on fulfilling
unsatisfying wants of people; it can increases brand loyal of TUI among its target market
(Pan and et. al., 2011).
 It ensures proper concentration of marketing activities as research aids a firm to find out
its loopholes. Through which, firm can easily upgrade and modified its all practices by
enhancing customer satisfaction level.
2.3 Influence of marketing of society
It is concluded that business activities which are taken into account so as to convince
target customers and influence to purchase products and services. For selling any item,
marketing emphasis firstly on marketers. Furthermore, the main goal of marketing is to generate
awareness among society regarding the brand and products of the firm. Society is developed
when various cultural people are come and live together. Hence, it can be said that marketing can
affect societies in divergent ways as products are developed on for them. For example- travelling
company decides to launch its online services that will be exclusively beneficial for people. As it
makes easier the overall booking process. In this term, business organisations need to generate
various marketing campaigns so as to reach with target as well as potential customers in a certain
time period (Mok, Sparks and Kadampully, 2013). Apart from this, in order to cover a large
market share TUI has began to target youngsters over the community for offering their services
at very low prices. The firm is stated to give attractive packages at very low cost. Due to its
online services, TUI has widen up its airline routes which leads to hike the booking of online
seats.
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Furthermore, the travelling agencies also start up direct debit payments, 24 hour hotel
facilities, luxurious and satisfied accommodation for their customers. Despite this, TUI also hire
well skilled and qualified staff members who have capability to connect with customers in an
effective. The firm is also trying to offer competitive prices to its customers as they can attain
and retain for long term period. Therefore, it can be said that marketing put a huge impact on
people as well as whole society by affecting their purchasing power. In addition, marketing also
influence shareholders or venture capitalists as they can advertise and promote firm products
(Moutinho, 2011). With this assistance, there will be increases sales revenue and profitability of
TUI; it could add values among to society by developing healthy public relations. Effective
marketing also gives the facility of faster transaction of services from anywhere.
TASK 3
3.1 Issues in marketing mix
Marketing mix refers with the blend of key components regarding product, price, place and
promotion for a business organisation so as to create influential marketing strategies. It would
also helps TUI to reach its target and potential customers. Along with this, the refereed is now
planning to introduce its 2019 summer holiday packages in Turkey and Spain. In this context, it
is essential for the company to give more attention all key aspects of marketing. Marketing mix
would be aids a firm in effective utilisation of available resources and formulate all marketing
activities as per its standards. But managers are being faced certain issues in elements of
marketing mix. The detailed of which as described as follow: -
 Product – It relates with the items which are offered by a firm in order to meet
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unsatisfied buyers' needs. TUI provides intangible travelling services to its potential
consumers. For example- the firm will be launched its tour package for Turkey and
Spain in 2019; that is liable for its upcoming growth and success. Furthermore, it will
also helpful in achieving prosperity and advancement from where a business can yield
higher revenues. But, if the competitor will also be offered similar product at low cost
than TUI; this would affect the demand of its current products and services in an
effective manner. Price – Another key element of marketing mix is – price. It consists with the amount
that will be paid by customers in order to enjoy benefits of products or services which
are offered by a firm. Generally, TUI is modified its pricing policy as per the life cycle
of its products. It has used market skimming strategy which forces a firm to increase the
prices while newly launching of its services. In this, the major issue is some customers
will not be preferred to pay high prices of holiday packages; and then it can decrease
sales revenue and profitability of TUI in an adequate manner.
 Place – It dictates with the area in which products and services are going to be offered.
Place also involves the location of corporate office of a business organisation from
where it manages all activities. However, TUI is trying to evolve its offices in certain
central locations, such as- airports, railway stations etc. Apart from this, Turkey and
Spain is continuously facing major threats, like terrorists attacks; it is a major barrier
because visitors are afraid to take tour packages on such places as they will not preferred
to such places.
3.2 Importance of service sector mix
Service sector mix is an intermixture of various elements that is usage by a firm in order to
spread its brand and products among target market. In addition, services which is provided by
TUI have unique characteristic, like it is- intangible and heterogeneous at the time of
production. Along with this, service marketing of TUI pays attention to modify its current
services after identifying consumers needs and wants. Regular alterations in terms of quality
will be assistive in boost up brand image of the company in global environment. It also ensures
the success of marketing activities by enhancing the sales and profits of the new tour package of
2019 in Turkey and Spain. Below mentioned certain elements which are undertaken in service
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