Marketing Strategies and Analysis for Travel and Tourism in Scotland

This report provides a comprehensive analysis of marketing principles within the travel and tourism industry, with a specific focus on the context of Scotland. It begins by exploring core marketing concepts relevant to the sector, including consumer needs, product and service markets, customer satisfaction, and relationship marketing. The report then delves into the marketing environment of Scotland, conducting a SWOT analysis and examining the impact of political, economic, social, technological, legal, and environmental factors. It also investigates factors influencing consumer motivation and demand for Scotland as a tourist destination, including consumer behavior, cultural influences, and the importance of value and satisfaction. Furthermore, the report examines the principles of market segmentation, strategic marketing planning, and the relevance of marketing information and market research. It also covers the elements of the marketing mix and the integrated nature of the promotional mix, providing insights into promotional campaigns within the travel and tourism sector. The report concludes with a discussion on the concept of a total tourism product.

Marketing in Travel and
Tourism
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Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Core concepts of marketing for travel and tourism..........................................................4
1.2 Marketing environment of Scotland and its impact on itself...........................................5
1.3 Factors affecting consumers motivation and demand for Scotland..................................6
1.4 Principle of market segmentation.....................................................................................7
TASK 2............................................................................................................................................8
2.1 Importance of strategic marketing planning.....................................................................8
2.2 Relevance of marketing information and market research to travel and tourism sector. .8
2.3 Positive and Negative impact of marketing on the society..............................................9
TASK 3..........................................................................................................................................10
3.1 Elements of marketing mix............................................................................................10
3.2 Importance of service sector marketing mix..................................................................10
3.3 Concept of total tourism product....................................................................................11
TASK 4..........................................................................................................................................11
4.1 Integrated nature and role of promotional mix...............................................................11
4.2 Integrated promotional campaign for Thomas cook......................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13
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INTRODUCTION
In the modern day business marketing has become one of the most essential activities in the firm
without which any company cannot think that their product and services can achieve success. It
adds value to the products and services that a company is selling. In present day business ways of
doing marketing have also changed it has gone more of digital means than that of traditional
ways (Moutinho, 2011). Marketing ensures that company will be promoting its products in a way
that it satisfies the needs of consumers. In recent times marketing has not focused only on doing
advertisements rather it has converted into set of activities where market needs are understood
and then products is designed accordingly so as to achieve higher growth rate and profitability.
In travel industry which is increasing at much faster rate it has become essential for the firm to
take use of marketing so as to ensure long term growth. Scotland is a beautiful destination for
Tourist. This report highlights various concepts of marketing as well as the strategies that are
used by the companies to sell holidays.
TASK 1
1.1 Core concepts of marketing for travel and tourism
Marketing is understood as one of the important aspect in the modern day business
success. It has become the needs for the growth of any company which aims to promote
several sites as a tourist spot. Bigger companies such as Thomas cooks have made various
kinds travel plans for the customers. These customised plans are highly helpful in
attracting larger number of people towards company’s business. For Scotland some of the
core concepts of marketing that has to be taken care of are:
 Customer’s needs: In order to develop any place as a tourist destination one of the
most important aspect that has to be taken care of is needs of the consumers
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(Goodall and Ashworth, 2013). Understanding demands and then formulating plan
can attract a large number of consumers towards any destination such as Scotland.
 Product and service markets: Companies have to include the type of services which
makes direct impact on the consumers. As in Scotland people come to enjoy
winters hence company can design a product that is especially for winter season.
 Customer satisfaction and retention: Firms are trying harder so that consumer
demands are fulfilled which is important for achieving consumer satisfaction. More
the level of satisfaction more will be the chances that retentions can be made.
People want something extra from their service providers which have to be taken
care of.
 Relationship marketing: Taking use of relationship marketing can enhance the
scope of people coming to any particular destination like Scotland. Relationship
with consumers is made through marketing executives (Goeldner and Ritchie,
2012).
All these concepts have to take care of while developing in Travel and Tourism Sector.
1.2 Marketing environment of Scotland and its impact on itself
In order to understand marketing environment of Scotland both internal and external aspect
of tourism has to be considered. For understanding internal marketing environment SWOT
analysis can be beneficial:
Strengths:
 It is a part of UK which is a stable economy for conducting marketing activities.
 There are large number of potential consumers that comes from different parts of
the world for visiting hence marketing Scotland as a tourist spot can be beneficial
for the firms.
Weakness
 Lack of independency in bureaucracy reduces the chances for the companies to
develop Scotland as a tourist spot.
 Lack of resources weakens the potential of marketing for Scotland.
Opportunities
 Have a larger amount of natural as well as heritage beauty which can be
effectively utilised for marketing tour packages.
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 Government is promoting travel and tourism in Scotland which gives wonderful
opportunity for the company to market tourist spots (Crooks and et. al., 2011).
Threats
 The economic instability in UK is a threat for marketing in Scotland.
 Decisions such as Brexit can be dangerous if not properly addressed.
External marketing environment
 Political: Since there are many kinds of political decisions like Brexit is taken hence
companies have to look into it as the total number of people that is coming in Scotland
from other parts of the Europe. EU will have lesser impact on the marketing of travel
spots.
 Economical: The instability in whole Europe has reduced the expenditure power of
people hence developing marketing strategy for Scotland may not be successful.
 Social: Needs of the society is changing and hence company also have to change its
marketing strategy (Park and Oh, 2012). They have to develop plans for marketing that
must be consumer centric.
 Technological: There have been many kinds of changes that are going on in the
technological use in Travel and Tourism sector. Use of digital mediums of marketing has
changed the whole story for the development of tourist spots. Companies can take use of
online marketing tools for promoting Scotland as a tourist destination.
 Legal: There are various legalities that are changing in terms of employments and
customer services which is effective the marketing of Scotland as tourist spot.
 Environment: Since responsible tourism is being promoted by the government hence
marketing also needs to be done in ways that it takes care of environment. Companies
cannot promote any kind of such activities in a better way.
1.3 Factors affecting consumers motivation and demand for Scotland
There are several factors affecting on motivation of consumers and demand for Scotland.
Some of them are as follows:
 Role of consumers: They are the driving force in development of any tourist spot.
Demand of Scotland depends on whether consumer feels that it is worthy.
Companies also design plans as per their demands and expectations from any place.
Appropriate decisions are taken by the firms to ensure that they achieve maximum
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number of consumer satisfaction (Dasgupta, 2011). Their self-expectations act as
more vicious motivators than any other factor.
 Consumer behaviour: Change of consumer behaviour has a greater impact on the
demands which acts as motivator. The change in their behaviour always alters the
business needs. It is sufficient for enhancing demand for any place like Scotland.
 Country’s culture: It plays very essential in shaping the motivation of consumers.
Since Scotland’s culture supports tour hence it becomes easier for the companies to
develop it as a tourist destination. Country’s culture and motivation of consumer
are directly proportional with each other.
 Consumer Orientation: Firms need to use appropriate communication channel so as
to make effective relations with consumers. Social, print or electronic media can be
used to make communication with the potential consumers (AlSayyad, 2013) . This
helps in shaping the motivational level of the consumers. Company has to target
specific groups like college students or other educational purpose travellers.
 Value and satisfaction: It is necessary to provide satisfaction by services since it is
the only thing for which consumer pays. Company must be applying strategies that
will add value to the products and services which will act as a better motivator for
consumers.
1.4 Principle of market segmentation
It is important in marketing that a company segments the whole market into small subparts
according to which the can make their plans. Principle of segmentation is essential as it
ensures that required facility is provided to the target section and hence achieving higher
level of satisfaction. Segmentation criteria which the companies can use are:
 Geographical: In this people are segmented in terms of the geographical area they
belong to. It is based on the fact that consumers from different areas have different
kinds of needs (Burgess, Parish and Alcock, 2011). Scotland is having a colder
weather hence the people coming from southern hemispheres needed to be
provided with hot rooms.
 Psycho-graphic segmentation: It is totally based on the culture, lifestyle and attitude
of the consumers (Hudson and Thal, 2013). This is difficult to understand but can
be effective as understanding needs becomes easier.
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 Demographic segments: This is done on the basis of Age, gender, social status and
income. Age is one of the most dominant factors in deciding the segments.
Company can easily design plans by understanding their demands (Capriello and et.
al., 2013).
Without utilising principle of segmentation it is not possible to satisfy all the consumers
with same set of business plans.
TASK 2
2.1 Importance of strategic marketing planning
Scotland is a country that is having large number of tourist spot due to abundance of
natural beauty. After that also it is not so successful as other parts of UK in developing itself as
a tourist destination is due to lack of effective strategic marketing planning. Strategic marketing
planning in tour industry is always done understanding the needs and demands of the travellers
in the present times (Thakran and Verma, 2013). It restricts service makers from formulating
impulsive business marketing decisions or creating any ad hoc. The process includes collecting
information related with marketing in a systematic way and then integrating the data into a
detailed analysis which assists in achieving long term goals. This is a long term marketing
activity and must be under the horizons where service providers can be comfortable with. On the
other hand it is also fact that several things alters with time hence there must be a scope of
element of flexibility in the plan as well. Apart from this it also assist in suggesting where the
Scotland tourism is going on the longer run. It includes establishing strong, tangible objectives
that underpins business down to specifics like profits, cost, time periods. It essentiality can be
considered in the sense that it aids in removing unproductive initiatives and increases focus on
essential factors that fosters development of Scotland as a tourist destination. A proper
budgeting, customer service details and course of action is made. It is important for
understanding targeted market as well as consumers. This information acts as a base for long
term decision making. If the strategic marketing planning is applied then valuable funds can be
generated as well as minimises wasting cost and time.
It is very essential for the firms to conduct market research as it enables in better understanding
of the population for which a plan is made. An effective research always enables company in
making of the plan that generates larger amount of profits.
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2.2 Relevance of marketing information and market research to travel and tourism sector
Like any other sector it is important for the firm to take use of the marketing research as a
tool for generating effective plans (Huang and et. al., 2013). For understanding this let’s put it
into Scotland context. A better understanding of the market of Scotland helps in making a plan
that is consumer centric and are trending. Marketing research helps to collect information which
is beneficial for carrying out business. There are various types of competition that lies in the
market and globalisation has increased this further. This type of market research helps in
understanding the requirements of people in various parts of the society or targeted consumers. It
is the role of marketing managers to conduct such kind of research so that they can easily
understand the curve of market demands. This will help the service providers in selecting
destinations in Scotland that will attract more number of consumers towards the nation. Market
information also helps in making segments within the society that will help in producing
products which can achieve larger consumer satisfaction (Le Serre and Chevalier, 2012). It will
also enable Scotland law makers to understand what are potential reasons that may reduce their
chances of developing as a tourism hub and what all strategies other markets are adopting for
attracting tourists all around the world. Information collected in travel sectors can be utilised for
making future growth strategies which will also help in understand the demands of the tourist
destination according to the needs of people on the larger time span.
2.3 Positive and Negative impact of marketing on the society
There is a very diverse range of impacts that is posed by marketing on the society or says
the people living in the Scotland or the visitors. The impact is both positive as well as in negative
sense. Few elements need to be considered while understanding this:
Positive and negative impact can be understood in terms of these elements:
 Responsibility and ethics: Marketing has a both positive and negative impact on ethics
and always depends on the decisions that are made by the service providers while
marketing has positive impact on responsibility since it provides jobs to many people and
hence eliminating poverty from the society.
 Regulations and public policy: There are many kinds of regulations as well as public
policy that have been made for safeguarding the interest of the society. Marketing has
positive impact on the regulations as it helps company to do business under the
prescribed laws.
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 Consumerism: Marketing is having positive impact on the consumerism as it empowers
consumers to have better understanding of what kind of plan a company has (Soteriades,
2012). On the other hand its benefits company in attracting larger consumers towards the
plan.
 Environmentalism: It also has both kinds impact and depends on the marketing strategy
that company adopts. If it is done citing the impact on environment then it has positive
impact and vice-versa.
TASK 3
3.1 Elements of marketing mix
It is a combination of several elements like price, product, place or promotion. Marketing
mix for Thomas Cooks:
 Products: This Company is making tour package for Scotland which needs to be
developed according to the needs of consumers. All facilities are provided in this
tour package. It comprises all the transportation, lodging, food arrangement along
with the sites where consumers can visit.
 Place: The place that has been selected in this regard is Scotland. It is an attractive
destination and convenient to be reached by the targeted consumers.
 Price: The pricing strategy that has been selected is reasonable and is done
according the competitors pricing (Kavoura and Stavrianea, 2014).
 Promotion: For promoting this product use of online marketing can be highly
helpful as Thomas cook can reach to larger sections of potential consumers all
around the world. Company can also take use of social media sites for showcasing
their promotional galleries as well as promotional videos.
3.2 Importance of service sector marketing mix
Apart from the marketing mix that will be utilised for developing destinations in Scotland.
There are few other elements that come under service sector marketing mix. It helps in
strengthening the other four elements and empowers company’s service delivery. It adds
value to the whole service which will help in attaining success in the business. Three
elements are as follows:
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 Physical evidence: This Company is providing the product and services that are
according to what they have mentioned in the package (Tourism Marketing. 2017).
The products are generally experienced.
 Process: The process that is being used in this regards is done after analysing the
market. Thomas cook takes use of all the processes that will enhance the service
quality which will help company in increasing its consumer base which is highly
important in the long run for the business.
 People: This Company has an excellent workforce that helps company in delivering
services in many parts of the Scotland as per the demand of the consumers.
Training of the local Scottish employees is done from time to time so as to match
global competitive levels.
3.3 Concept of total tourism product
In past tourism industry was understood to be as the individual industry but in modern times
it is a combine package where various industries like Airlines, Hotels, Travel agencies etc. all are
involved. Total tourism product aims to deliver services which are a combination of various
kinds of services (Han and Hyun, 2015). It also takes into the account of the services that is
being provided by the service providers which was not mentioned in the tour package. For
example a bear bottle in the cold place. This aims to enhance the total experience of the people in
such a way that maximum consumer satisfaction can be achieved. All the services that are
provided on extra will not be charged. Companies like Thomas cook as working hard on
designing such kinds of products as it solves all the difficulties of the tour plans.
TASK 4
4.1 Integrated nature and role of promotional mix
It comprises of various elements like promotion, public selling, sales and advertisement of
the services and products. There elements helps in attracting larger section of the
population towards company’s business. For Scotland Thomas Cook is using this mix in a
better way. It enhances the overall promotional strategy used by the firm. Promotional mix
is as follows:
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 Advertising: It is very important part of any promotion. This done on traditional
forums likes TV, Radio, newspaper and modern mediums such as Social media,
internet sites.
 Personal selling: Using the sales person company directly communicates with the
targeted customers.
 Sales promotion: It enhances demand and firms are using it in the target areas.
They have smaller scope but it is highly effective since it is also focused on target
consumers (Pike, S. and Page, S.J., 2014).
 Public Relations: In order to put firm’s idea in public domain companies like
Thomas cook makes a healthier public relations with consumers.
4.2 Integrated promotional campaign for Thomas cook
Integrated promotional campaigns are far more attractive and adds value to tourism
development. Today promotions have taken more of digital means (Alipour, Hajaliakbari
and Javanbakht, 2011). Successful integration requires multi-channel media planning
skills, tracking of performance and data interpretation capabilities. It is combination of
various activities done under prescribed budget. Integrated promotional campaigns for
Thomas cook:
 Recognise the audience: In this step individuals who loves adventures and
travelling are targeted.
 Create detailed plan: In this plan is explained in elaborated way. Gather details of
the targeted consumers. Make ties with British Airways and take permission from
Scotland government.
 Keep on top of various aspects: Monitoring all the essentials like promotion,
advertisement etc.
 Be contextually relevant: Brand needs to be relevant so that consumer will get
convenience for reaching to it. Taking feedbacks from consumers can help in this
regard.
Various other things that has to be done:
 Determine the target market.
 Set the objective for the campaign of promotions.
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 Taking use of various communication channels like emails, newspapers, TV ads so
as to promote tourist destination and the plan produced by the company.
 Determine perfect promotional mix so as to take maximum benefits from the
campaign.
 Allocation of Budget: The Budget will be around million dollar.
 Live music competition- 30% weightage
 Sponsoring football match: 20% weightage
 Digital marketing: 40% weightage
 Tie up with British Airways: 10% weightage
 Evaluate the effectiveness of the campaign: It will be done by checking these
things:
 If it gets 1200 customers then ROI (1million dollar) becomes zero
 If it gets 1700 customers then ROI will be around 334k dollars.
 If it gets 2000 consumers then ROI will be half a million dollar.
 If it gets 2500 users then ROI will be 1 million dollar.
CONCLUSION
From the above based report it can be concluded that marketing has become one of the most
essential part of any industry sine without performing it actively company cannot ensure that
even its best of products cannot gets desired success. Scotland is having all the potential of being
developed as a tourist destination. It is just that effective planning is required. Use of marketing
and promotional mix in a better way can help foster the business of Tour industry in Scotland.
Companies need to make plans according to the information that has been gathered after doing a
market research. It helps company in making plans that can attract the larger sections of the
population. It must be done citing competitors plans and strategies. It helps to ensure long term
growth of the firm.
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