Marketing in Travel and Tourism: Strategies, Analysis, and Promotion

This report provides a detailed analysis of marketing principles and their application within the travel and tourism sector, focusing on Thomas Cook's potential summer holiday packages to Morocco and Egypt. The report covers core marketing concepts, including consumer needs, product development, value proposition, and market analysis. It examines the impact of the marketing environment, consumer motivation factors, and the importance of market segmentation. The report further explores strategic marketing planning, the role of marketing research, and the influence of marketing on society. It also delves into the integrated nature of the promotional mix and provides an example of an integrated promotional campaign. The report highlights the importance of understanding market trends, consumer behavior, and the competitive landscape to develop effective marketing strategies for the travel and tourism industry, with a focus on adapting to both micro and macro environmental factors. It also discusses the role of SWOT analysis in strategic planning and the application of marketing principles to enhance business performance and profitability.

Marketing in Travel and
Tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The core concepts of marketing for travel and tourism sector:........................................1
1.2 The impact of the marketing environment on individual travel and tourism...................3
1.3 The factors impacting consumer motivation and demand in travel and tourism:............3
1.4 Principles of market segmentation and its value in marketing planning:.........................4
TASK 2............................................................................................................................................5
2.1 The importance of strategic marketing planning for Thomas cook.................................5
2.2 The relevance of marketing research and market information to managers in tourism
sector:.....................................................................................................................................6
2.3 The influence of marketing on society.............................................................................7
TASK 3............................................................................................................................................8
TASK 4............................................................................................................................................8
4.1The integrated nature and role of the promotional mix.....................................................8
4.2 Integrated Promotional Campaign....................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a very important function in an organisation as it assists it in promoting its
products and services in the market. It helps an organisation in increasing its profitability and
sales. There are various activities which are undertaken by this function, it includes survey about
potential demand and supply, people needs and wants, promotion of products, preparation of new
plans, etc. Basically market is all about identification of needs and demands of a targeted
consumer and then formulate strategies to satisfy those desires (Ashworth and Goodall, 2012). A
travel and tourism organisation needs to understand market trends and demand and then offer
their products and services accordingly. For anticipating and determine the level of demand of
products depends on organisation marketing function capability. This project is based on Thomas
cook which is trying to create a summer 2018 holiday package to Morocco and Egypt. In this
project, the major issues concerning marketing concepts, principles, role, tools, marketing mix
and promotional mix will be covered. All problems which are faced by organisation marketing
department in understanding and formulating strategies for better promotion of products will also
be addressed.
TASK 1
1.1 The core concepts of marketing for travel and tourism sector:
There are various market concepts which apply to the travel and tourism sector.
According to American marketing association, marketing is a concept which describes about the
set of activities, institutions and range of process that are meant for communicating, delivery,
and exchange of goods that have high value for customer, partnership organisation, clients and
society (Buhalis and Foerste, 2015). It involves all the decisions which are taken by an
organisation for addressing the market issues as to boost its own sales and profitability. It is very
important to understand the marketing concept or principles of market orientation which refers to
the facilitative principles. It concerns itself with customer desires, cross functional coordination
and competitor strategies. The core concept of marketing in relation to travel and tourism is:
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Illustration 1: Varsity Education
(Source: )
As shown in the image, there are five types of issues which are core concept of the whole
marketing function in Thomas Cook (Buhalis and Foerste, 2013). These principles help the
company in focusing its activities on the basis of these core concepts so that there is no gap left. Needs, wants and demand: The company tries to know about desires and requirements of
consumers and to do so, marketing function is implemented. There is brief analysis as to
which destination is preferred and what type of package people are ready to pay for. Products and services: Marketing function analyse the needs and wants of consumer.
According to it they prepare a sample package which is used by management for making
actual product. Value, satisfaction and quality: A product have some value for its consumers and that is
what satisfies him. If a good or service is not at par with customer expectation for quality
then he will reject (Dasgupta, 2011). These days marketing function has to make sure that
they are able to understand the vary need and expectation of customer while analysing the
competitor’s quality standards for providing better products and services. Exchange, transactions and relationship: A product is sold for a price that is what
exchange refers to. When a company provides goods and services to its customer for an
amount and he agrees to pay for it that is the time which is known as exchange (Evans,
Stonehouse and Campbell, 2012). When product is transferred, it is called as transaction
and all these activities take place on the basis of relationship which is built by the
marketing department.
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 Market: The market and its factors are analysed by the marketing department. This will
help Thomas cook in understanding how competitors and indirect forces will formulate
its strategies.
1.2 The impact of the marketing environment on individual travel and tourism
Marketing is a function which is used by companies for influencing a market and its
factors. There are many ways by which these companies try to create a impactful marketing
environment as to boost individual travel and tourism activity (Garín-Muñoz and Pérez-Amaral,
2011). These days business are not fully in control and they have to function in a fully
constrained marketing surroundings. It can be divided into two parts: micro and macro
environment.
Micro environment refers to the internal surrounding which can be managed by the
company. On the other hand, macro environment refers to the external factors which cannot be
controlled by the company and it have to adapt to the changes which takes place. It is very
important for an organisation to focus on the environmental changes which takes place inside
and outside company. A proper strategic plan and analysis is required for maintaining the
organisation edge in the market.
The tourism industry in Morocco is well developed and it is considered to be in advanced
stages than other countries. The industry is contributing more than 8% to the country economy
and receives up-to 18 million tourists per annum (Goeldner and Ritchie, 2012). On the other
hand, Egypt also has invested a lot and was able to develop a vibrant environment for tourism.
There are many destinations which attracts millions of visitors per year. It also has a unique
geographical feature. The country has a very well-established business environment and it
promotes more activities which aid in adding to its economy. Travel and tourism adds more than
14 % to the country economy.
Due to the strength of the tourism industry and positive environment in these country, it
is a golden chance for Thomas cook to prepare a package which explores the opportunities in
these nations (Goodall and Ashworth, 2013). Also, the market environment in these countries
will enable the company in presenting the package as more attractive in market.
1.3 The factors impacting consumer motivation and demand in travel and tourism:
Motivation refers to that dynamic force which impels a person to act and do something
which will bring in satisfaction for him. There has been a lot of researchers and debates which
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have described different type of motivation. Consumer motivation is one of the example. It refers
to the drive to satisfy the desires, it can be mental or physical in nature. This want can only be
fulfilled by the use of product and service (Hahm and Wang, 2011). The need can be of any type,
from basic to luxuries. There are few factors which have direct and indirect impact on the
consumer motivation both in positive and negative way: Income and salary: If an individual is not earning enough then he won’t be interested in
the products and services of any tour operator. Income of a person plays an important part
in his ability to purchase package for a tour. That is why the company has to prepare
packages which fulfils the needs and demands of customers. Flow of money: This is related to distribution of money in the society. If a country has
high level of income difference than it won’t be able to grow at a very fast speed (Hall,
2013). Also, the tour operators will have limited target population who were willing to
spend. Technology: There are difference advantages and disadvantages of technology. From a
company perspective, it enables them in reaching a wider market in efficient way. From
customer point of view, it enables them in analysing and comparing various products and
services of different organisations. Destinations: The offered destinations play a vital role for attracting people. Destination
like Morocco and Egypt will be able to get attention of masses due to their uniqueness.
 Availability of free time: If the targeted population do not have free time for taking on
the travel package then it will be waste of resources.
1.4 Principles of market segmentation and its value in marketing planning:
Market segmentation refers to bifurcation of market into different types, to let business
understand the market in better way and target its potential customers only (Hall, Timothy and
Duval, 2012). This assist in reducing wastage of resources and improves efficiency of
organisation. It also aids in positioning its activities and products in a way that it is able to
achieve required level of productivity. It depends on the business as how they segment the
market. They can divide it on the basis of demography, geographic, psycho graphic, etc.
Demographic segmentation assists the management in understanding about its target
customers. On the other hand, geographic bifurcation is based on division of regions. While
psycho graphic is based on determination of social class, lifestyle and needs of the customer
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(Hays, Page and Buhalis, 2013). There are certain principles given for formulating and
implementing segmentation in a proper way: Consumer retention: It is a principle which states that the segmentation assist
organisations in retaining their customers as they are able to focus on their individual
needs and wants. Advance segment determination: This principle states that, segmentation has to be done
in advance. It aids the management in preparing strategic plan accordingly. It also
ensures that company develops products and services as per the need of segment. Customer satisfaction: This is a principle which ensures that a company has to treat
customer as a king of market (Hudson and Thal, 2013). They have to provide products
and services which are at par with the standards of the market. Also, the price of products
should be reasonable.
 Accessibility, measurable and substantial: If segmentation is not done at par the
standards then it will not be accessible meaning understandable and measurable. It has
been measurable so that their sustainability can be checked. Being substantial refers to
yielding higher level of profits for lower investment in Thomas cook group.
These principles directly have impact on company marketing planning, as segmentation
is conducted as to get the best out of market.
TASK 2
2.1 The importance of strategic marketing planning for Thomas cook
The marketing environmental condition in the travel and tourism industry is so much
dynamic. Strategic planning is very essential for establishing a well-built structure for the
organisation (Kayar and Kozak, 2010). It assists in entailing the scrutiny of the environment of
the company, competitors, strengths and general marketing analysis as to attain the level of
competitive advantage in the market. It also provides business direction to the company which
helps it in attaining objectives.
Thomas cook is a multinational organisation that is operational since 1841. It is
considered as a company which delivers high quality of products and services to its customer all
across the world (Molina, Gómez and Martín-Consuegra, 2010). For ensuring that company is
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able to place itself strategically in the market, it has to determine its strengths, weakness,
opportunities and threats. SWOT analysis of the company is given below:
Strengths
The oldest company in tourism industry
It is a vertically integrated company
Business units have high experience
It has a customization and flexibility features
Weaknesses
It has long term debts
Uncertainty with future fluctuations
Rising competition
Opportunities
Online booking boosting sales
Demand of travel and tourism is on rise
Financially strong performance from last
quarters
Threats
Eurozone is still facing fluctuations
Company is still having lower profitability
Competition from low cost carriers
This SWOT analysis will enable the company in finding out the best methods which it
can employ for boosting its performance and productivity (Morrison, 2013). It will be able to
identify the weakness and focus on them for strengthening and improving. It is very important
for Thomas cook to do strategic marketing planning as it will aid the company in : Survival planning: It will ensure that company is able to justify its investment and flow
of resources. Effective advertising campaign planning: It is required to reach maximum number of
customers. Highly satisfied customer: It assist in satisfying customer needs and wants. Improved motivation and less conflicts: Employee are motivated and resolve issues by
conversation.
 Greater productivity: When workers morale is high then they tend to be more productive.
2.2 The relevance of marketing research and market information to managers in tourism sector:
In travel and tourism sector marketing research is very vital for companies like Thomas
cook (Moutinho, 2011). It provides them information about market trends, consumer mood and
requirements, competitors. It acts as a bridge that provides a company in creating link between
various marketing factors. Research basically provide a criterion for company to identify
opportunities and threats in market. The information is used to evaluate marketing options,
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monitoring of performance, improving management understanding of whole process. Marketing
process used in research is quite simple, it includes data collection, data analysis and
interpretation of findings and the communication of information to all departments of company.
Marketing research is also used by departments as a way to evaluate the market entry
strategies in organisation. Thomas cook can use it in determining its competitors and their
strategic approach to market (Park and Oh, 2012). This will assist in identifying what type of
approach company can use to enter into market and gain maximum profits. It will also aid in the
process of segmentation, targeting and positioning of company’s packages in market such as
Morocco and Egypt. Marketing research will provide information which will also help Thomas
cook in updating its market information system.
The managers in Thomas cook has many uses of marketing data. They will utilise the
information to gain insight of the whole market and ensure that they are developing suitable
strategic plan for the company. If managers of Thomas cook have knowledge about market
trends, level of maturity of a place. It is the most relevant activity which prepares it against any
fluctuation or future uncertainty. It assists in improving company portfolio and aids manager in
understanding market huge scope and opportunities.
2.3 The influence of marketing on society
It is defined as the operations which are carried out to convince the target audience and
appeal them to buy the products and services. For whatever item marketing is done is the main
focus point of the marketers (Saraniemi and Kylänen, 2011). The basic aim of the marketing is to
make people aware about the brand or make them acknowledge that certain type of service exists
in the market.
Society is formed when group of people of different areas and tastes come to together.
Marketing influences society in different ways because the product which is created are made for
them only. For example; a beverage company decides to introduce an energy drink which will be
exclusively for the athletes. Their marketing campaigns will be in such a way that will only be
focusing on that target group, making them realize that it is necessary drink if they are into some
kind of sports. Its purpose is to influence them and some people also criticize this because they
blame they whatever is shown in the ads are not of any use. They create a false desire and make
people diverted through creative and attractive activities.
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If we look into the core aspects of the marketing we would analysed that its aim is to
attract customers towards business. It had made possible for inventors to advertise their
innovations among society. Through this they can easily increase sales and could add value to
the society (Score, 2011). This gives freedom to people for faster transaction of products from
anywhere. By the introduction of marketing concept people get more information about a
particular product and help them in making decision about it. Marketing strategies are created by
taking care of customer demands.
TASK 3
Covered in ppt
TASK 4
4.1The integrated nature and role of the promotional mix
Promotional mix is tool which helps companies in developing large population
effectively and efficiently when developing products and services beneficial for consumers at
optimum level (Xiang and Gretzel, 2010). Basically, all tools like advertising, personal selling,
public relations and sales promotion are very important tools when developing promotional tools
effective for generating merchandised items. For its travel package Thomas cook can attract
more number of customers by various sources.
 Advertising- A tool which will help companies to advertise products and service through
various sources which enables consumers to get attracted towards it. Thomas cook will
enable consumers through advertising all elements like through Facebook it can attract
consumers by giving them proper information about products and services. Television
will help in developing various news channels to integrate all facts and figures which will
help consumers to get attention towards certain types of locations. For advertising the
company have a very attractive tag line and logo that is shown below:
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 Personal Selling- In this process companies use certain types sofa methods which will
enable targeted consumers to get benefit of particular services being offered (Xiang and
Pan, 2011). In this type company will help in providing special discounts, additional
benefits of flight tickets, hotel locations, etc. which will create benefits for consumers.
 Public Relations- Relations will public helps companies in developing certain types of
products and services which will enable them to develop and create positive effect on
consumers mind regarding their product and services (Xiang, Magnini and Fesenmaier,
2015). In this process companies will use relations with general public and provide
various types of samples which will help them in creating a check off of the products and
services and then company can sell it in market.
4.2 Integrated Promotional Campaign
Covered in poster
CONCLUSION
Thomas cook is oldest company which is currently functional in tourism sector. It is
vertically integrated company and due to this it has additional resources to compete in market.
The company is preparing a package for summer 2018 to Morocco and Egypt. It has to identify
various factors which can impact its approach to customers. With the help of proper market
research, it will be able to analyse market trends, customer preference, competitor’s strategy and
then plan according to it. There are many issues which has to be addressed by Thomas cook to
ensure that it is having most effective promotion mix and marketing mix in industry. The
company also have to analyse impact of its activities and strategy to the society.
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