Marketing in Travel and Tourism: Thomas Cook Group Report

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This report delves into the core concepts of marketing within the travel and tourism sector, specifically focusing on the Thomas Cook Group. It examines key aspects such as the impact of the marketing environment, factors influencing consumer motivation and demand, and the principles of market segmentation. The report further analyzes the importance of strategic marketing planning, the relevance of marketing research, and the societal influence of marketing. A promotional campaign for Thomas Cook's summer holiday offers to Egypt and Morocco is also designed, covering the promotional mix and its characteristics. The report provides a comprehensive overview of marketing strategies and their application in the travel and tourism industry, offering valuable insights into consumer behavior, market segmentation, and promotional campaigns.
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Marketing in Travel and
Tourism
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.1 Core concepts of marketing.................................................................................................3
P1.2 Impact of marketing environment.......................................................................................4
P1.3 Factors affecting consumer motivation and demand...........................................................5
P1.4 Principles of market segmentation and its uses...................................................................6
TASK 2............................................................................................................................................7
Title – Summer 2018 Holidays....................................................................................................7
Executive Summary.....................................................................................................................7
Introduction..................................................................................................................................7
P2.1 Importance of strategic marketing planning........................................................................8
P2.2 Relevance of marketing research and information to managers..........................................8
P2.3 Influence of marketing on society.......................................................................................9
Conclusion.................................................................................................................................10
TASK 3..........................................................................................................................................10
TASK 4..........................................................................................................................................10
P4.1 Promotional mix – role and characteristics.......................................................................10
P4.2 Promotional campaign (Poster).........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Travel and tourism sector reminds of the scenic beauties, adventure sports and every
other activity which is related with expeditions and trips. The growing population has
transformed its way of thinking in terms of investment. People want to spend their money in
those areas where great return is gathered. This return depends on the legitimacy of the decision
made. When considering the travel and tourism sector, the return which is gained on a purchase
of product and service is more emotional and full of content as compared to materialistic gains.
In this report, the marketing concepts and application basics will be discussed with relevance to
Thomas Cook Group in the travel and tourism sector. Furthermore, the different mixes that is
product mix, service mix and promotional mixes will be depicted regarding their issues and use
with respect to the concerned company. Lastly, a promotional campaign will be designed for
communicating the customers about the Summer holidays offer of Thomas Cook Group to Egypt
and Morocco.
TASK 1
P1.1 Core concepts of marketing
Marketing is entirely based on the relationships which are defined between the business
enterprise and its relevant customers. The concept of marketing differs in the area of application
depending on the type of customers, their demands and preferences and the orientation of the
company. Travel and tourism is a sector which involves direct interaction and consumption of
services by customers (Buhalis and Foerste, 2015). Concerned business has to identify or
recognise the needs and demands of consumers in particular target markets. These are further
emphasises in the form of product/service, pricing, value for money attributes, image of the
company and the prospects of marketers. Being an exchange process, marketing has to be
effective enough for delivering the features of goods and services so that purchasers can initiate
an exchange in the form of purchase.
The needs and demands of customers when considering marketing is best price with
luxuries facilities and maximum comfort during their trip or expedition. On the other hand, the
uniqueness of a product or service adds great value to the concerned marketing strategy that is
being proposed by the company (Buhalis and Foerste, 2013). It is important to understand that
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the idea or purpose behind development and delivery of a particular product has to be clearly
dictated by the marketing strategy. It helps in creating a positive impact over other functions of
enterprise. Once a decision has been made by the customer regarding purchase, the process of
marketing is complete. But there are implications or complications related with the product even
after the purchase (Goeldner and Ritchie, 2012). The company has to make sure that customers
are completely satisfied with their products and services and probable to make a choice in the
near future also.
P1.2 Impact of marketing environment
The marketing environment is made up different factors which influence business
decisions in some way or the other (Cohen, Prayag and Moital, 2014). Thomas Cook Group is a
brand icon when considering the travel and tourism sector. The components of the marketing
environment of Thomas Cook Group and specific destinations i.e. Egypt and Morocco includes
economy, society, technology, politics, culture, the demography, competitors and intermediaries.
Following are the details regarding the impact of these environmental factors on individual travel
and tourism business of Thomas Cook Group with respect to the aforementioned destinations: Society and culture: The societal and cultural acceptance regarding the different
marketing strategies is a must because if company doesn't give preference to such
attributes then significant conflicts and clashes can take place. Thomas Cook Group will
be affected by the lifestyle, cultural traditions and the beliefs which have been inherited
by the people residing in Egypt and Morocco. Politics: Government is the major component of political factors. The policies and
reforms which take place in this part of the environment can change the complete strategy
of business enterprise (Falk, Packer and Benckendorff, 2012). Tax decisions, labour or
employment laws, trade restrictions are some of the features of politics. Economy: Economic stability helps in brining a cash flow which is essential for aiding
the different business processes. Thomas Cook Group has to evaluate the economic
factors like inflation, recession, interest rates, fiscal policies and the features of foreign
direct investment so that marketing environment is not affected adversely.
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Technology: Marketing environment is affected positively when technological
developments take place. The use of technology helps in delivering more value to the
marketing strategies and preferences of customers are dealt easily. Demography: Egypt and Morocco both have great topography and structural pieces
which are a point of attraction for the customers. Thomas Cook Group can utilise these
demographical features for brining more effectiveness in the marketing strategies.
Furthermore, an idea about the sex ratio, population structure and other demographics is
also essential for the company while strategic planning (Evans, Stonehouse and
Campbell, 2012).
Competitors, suppliers and intermediaries: Competitors, suppliers and the intermediaries
are the primary part of the internal environment of company. There is good amount of
competition to this individual business when considering the destinations Egypt and
Morocco. This automatically threatens organisation's opportunities to gain sufficient
suppliers and agents so that customer requirements can be fulfilled (Morrison, 2013).
P1.3 Factors affecting consumer motivation and demand
Consumer motivation and demands are interlinked with each other in such a manner that
there is significant impact witnessed over the functioning of concerned enterprise or company
whose products are being discussed. Below mentioned are some of the factors which affect
consumer motivation and demands in the travel and tourism markets.
1. Needs: The need or requirement for a particular product or service is the first thing which
influences the motivation level of consumers. If a person thinks that he requires to
purchase the travel package of Thomas Cook Group to Egypt and Morocco then he will
definitely start the consumer decision making process. If there is no such requirement or
need or urge to go for a purchase then least motivation is experienced (Dolnicar and
Ring, 2014).
2. Influence from related individuals: Friends, family members, colleagues and the related
individuals are the people who provide choices and alternatives regarding one particular
product and service. Whenever a person prefers to go for a service, there is an evaluation
of choices and best possible alternative. There are chances that these individuals can
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change the preference of concerned customer to Thomas Cook Group or away from the
same company.
3. Competitor products and services: Consumer motivation for making a purchase is also
affected from the products and services which are produced and given by the competitors
(Tussyadiah, 2012). Thomas Cook Group has to develop its packages in such a way that
there is no escape opportunity for the customers.
4. Satisfaction and value for money: A significant factor for influencing the demands and
motivation levels of customers is a value for money deal. If the concerned product or
service of the travel and tourism sector is giving the best possible value to the customers
then more satisfaction is attained and consecutive chances for making next purchase
increases.
P1.4 Principles of market segmentation and its uses
The customer base for Thomas Cook Group is quite large. It becomes difficult to target
and direct the marketing strategy according to preferences and choices of every individual
present in this base. Hence, there is a requirement of proper technique through which specific
needs of customers are met by the company. This technique is market segmentation. It involves
the classification of consumers into sub-divisions or sub-groups which are based on combined
choices and preferences of the masses (Ashworth and Goodall, 2012). The following types of
segmentation can be performed by the company when considering marketing planning: Geographic: Locations or regions are considered as geographic segments. Eg: Country,
region, city, postcode, etc. Demographic: This type of segmentation is quantifiable and based on the several traits
like age, income, gender, family size, etc. Psycho-graphic: The factors like social circumstances, lifestyle attributes, personal
needs, etc. are considered as psycho-graphic segments. Behavioural: This type of segmentation is completely dependent on the behavioural
attributes of consumers when considering the purchasing process and the needs or
benefits. Furthermore, the frequency of making a purchase and brand loyalty for a
company are also considered in this segmentation (Hays, Page and Buhalis, 2013).
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Cultural: The cultural traditions and beliefs which are possessed by a group of customers
is the cultural segmentation.
The marketing planning is a process in which each and every relative aspect is covered so
that company doesn't fail during the implementation stage of the product delivery. The use of
market segmentation is realised when a marketing strategy has to be designed. The different
types of segmentation which have been defined above help in getting a broader insight regarding
the demands and needs of customers for one particular sub-division (Sharpley and Telfer, 2014).
It is also useful in creating more specific approach towards the customers with respective product
of travel and tourism sector.
TASK 2
Title – Summer 2018 Holidays
Executive Summary
In my role of Assistant Marketing Manager at Thomas Cook Group, I have designed this
report for creating an understanding regarding the importance of strategic marketing planning
with respect to the company and the target destinations Egypt and Morocco. These are important
for getting a well-defined path regarding the marketing tactics with clear objectives.
Furthermore, the use and relevance of marketing research and the market information to
managers of the company is significant (Huang and Sarigöllü, 2014). These informative sources
help in giving more effectiveness to the marketing plan and strategy. Since, marketing has a deep
influence over the society, it is important to design it with proper relevance to the societal
attributes.
Introduction
The strategic marketing planning is a process in which helps in gaining a proper direction
in which all the marketing activities will be aligned. It also supports the unified working of
company for which the strategy is being planned. This report helps in understanding the basic
concept of strategic marketing planning, marketing research and the information related with
markets for Thomas Cook Group. Moreover, the factors or influences which marketing can have
on society have also been discussed in this report.
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P2.1 Importance of strategic marketing planning
The Thomas Cook Group is performing strategic marketing planning for Summer
Holidays in 2018 with respect to the destinations Egypt and Morocco. There is heavy presence of
competitors in these two destinations because they have many tourist attraction points that
engage customers with historical and heritage interest. The strategic marketing planning
comprises of certain basic steps which involves the situational analysis (Leonidou, Katsikeas and
Morgan, 2013). Thomas Cook Group has to perform this process so that broader insight
regarding the current situation and working of the company in competitive markets can be
gained.
Tools like SWOT help in assessing the strengths, weaknesses, opportunities and threats
regarding the internal and external environment of the company with respect to the target
markets of Egypt and Morocco. Moreover, the product life cycle or tourist area life cycle
concepts are also gathered in this planning process. It helps in evaluating the factors which lead
the consumer in exploring, involving, developing, consolidating, stagnating and declining for
concerned destination product (5-Step Strategic Marketing Process, 2017). Clear definition of
the goals and objectives related with the product and services of Thomas Cook Group is obtained
through this strategic marketing planning. In order to successfully implement the concept of
Summer Holidays and communicate it to customers, the company has to perform this planning. It
adds more effectiveness to the services that will be delivered. This planning process also helps in
gaining a competitive advantage because awareness regarding the concerned strategies of
competitors and market structure helps in redefining tactics much better.
P2.2 Relevance of marketing research and information to managers
Marketing research is conducted for gaining information regarding the customers and
their satisfaction with respect to products and services of a company. On the other hand, market
information is based on the analytical and statistical information related with the target and
operational markets in which company resides (Hanssens and et. al., 2014). For Thomas Cook
Group, it is important to conduct the marketing research and gather market information of Egypt
and Morocco so that customer demands and needs can be analysed. The presence of competitors
and their current working strategies is also assessed through this information. Marketing
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managers have to have these kinds of informative contents so that current trends in the travel and
tourism sector can be addressed. There are two types of marketing research:
Primary (produced by company)
Secondary (referring to previous reports and researches)
These two researches help in forecasting the validity and acceptance level of concerned
product amongst audiences for both destinations. Thomas Cook Group can understand the
importance of certain requirements or legislations that need to be followed so that customers do
not face any sort of issue or problem during their visit. This can be assessed only with help of
market information and marketing researches (Singh, 2012). It is important to perform certain
analysis and collect all relevant data regarding every strategic step which company will take in
the near future. Apart from analysing the needs and demands in the concerned markets, the
marketing research and market information help in measuring the preferences which are
considered as irreplaceable by the customers (Tucker, 2013). The managers can create an
information system which is strategically designed to favour the future and present strategies of
Thomas Cook Group.
P2.3 Influence of marketing on society
Marketing is the technique through which an exchange relationship is developed between
the customers and business (The Value of Marketing to Society, 2017). Thomas Cook Group has
to perform the marketing function for communicating and influencing customers to purchase
products and services of the company. This function is important because it helps in creating
brand awareness and also supports the organisation for gaining competitive advantage. The
marketing strategies and operations has a wider implication over the society (Maister, 2012).
Customers and clients of the company become more responsive towards the products and
services of Thomas Cook Group when they come to know about the same. Furthermore,
goodwill is fostered by the company when using appropriate marketing and communications
strategies.
The ethics and regulations which are developed by the government are to be followed by
the company so that hindrance or roadblocks in the implementation of marketing strategy is not
experienced. The corporate image of organisation is linked with marketing and the products
which are being marketed (Nour and Almahirah, 2014). If these attributes are not in accordance
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with the marketing principles and ethics then consumers develop a negative perception towards
the company. The implications or impact on the society is also addressed in terms of
environmentalism and consumerism. The use of marketing has helped in increasing the financial
growth from £300 billion in last year to £350 billion in the current year. Despite of these many
advantages and benefits, the company has to bear certain costs for marketing orientation (The
Disadvantages of Market Orientation, 2017). Thomas Cook has to bear the challenge of
responding quite quickly to any sort of changes which occur in the market. Moreover, the
corporate perceptions which are developed have to be challenged because there are times when
these deflect with the customer perceptions which definitely hinders marketing process
(Muruganantham and Bhakat, 2013).
Conclusion
Through this report, it can be inferred that no business decision regarding the marketing
strategy can be developed or initiated unless there is strategic marketing planning. This planning
process is aided with use of marketing research and market information that can be collected by
the managers of Thomas Cook. Furthermore, it is inferred that the marketing activities have
wider implications over the society which can be tackled when proper relevance and importance
is given to ethics and policies.
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TASK 3
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The marketing mix comprises of four basic elements i.e. product, price, place and promotion.
This principle concept is used in the strategic marketing planning for enhancing the approach or
marketing strategy that is being used by Thomas Cook group for delivering its product i.e.
Summer 2018 Holidays to Egypt and Morocco.
Product: Product is the good which is manufactured or produced by the organisation for sale so
that business processing can be initiated (Falk, Packer and Benckendorff, 2012). The product
development and formulation has to be monitored so that customer share is not lost.
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Pricing: The most important element of the marketing mix, price plays a vital role in motivating
or discouraging customers from making a purchase (Evans, Stonehouse and Campbell,
2012).Strategies for pricing has to be followed which can be skimming or market penetration so
that customer behaviour is not adversely affected.
Place: Distribution channels which need to be developed by the company as part of the
marketing strategy comprise of the place component (Morrison, 2013). The behaviour of
suppliers and distributors has to be assessed and Thomas Cook Group has to generate objectives
and strategies so that logistics can be stabilised.
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Thomas Cook Group is focusing on its two products for services i.e. Morocco and Egypt.
Services require special type of marketing which is internal and interactive. Customer responses
can be acquired only when there is proper utilisation of marketing as a exchange relationship.
The feedbacks and viewpoints help acquired in this process help in making effective changes and
improvements in the entire system.
Internal marketing: It is important for the company to motivate every person related with a
strategy so that maximum customer satisfaction can be attained. The internal marketing concept
is based on this factor. It helps in improving the exchange process with greater effectiveness.
Interactive marketing: This type of marketing is based on the situation triggered or event based
decisions related with marketing function of the company. The use of latest models and
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techniques in this respect is encouraged. For instance, use of digital marketing platforms like
social media, email, etc.
The complete experience of the visitors and travellers is catered in the total tourism product. It is
important to understand that the impact or implications which are being addressed by
stakeholders when any activity in the travel and tourism industry takes place. This product is in
the form of experiences and not physical products (Dolnicar and Ring, 2014). Elements of this
product include details regarding the airlines, travel agencies, hotels and accommodation centres,
details of the trip, etc. The concerned customer or traveller is equipped with proper information
regarding expenses and experiences. It helps in getting complete perspective without wandering
for information.
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For Thomas Cook Group, the total tourism product is Summer 2018 Holidays to Egypt and
Morocco. This product will provide information regarding the hotels, transit mediums, visiting
places and the entire itinary related with the trip. The details like time duration for the trip and
expenses are considered as the components of total tourism product.
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TASK 4
P4.1 Promotional mix – role and characteristics
The different variables which are required to be covered by the organisation for
effectively promoting its products and services is considered as promotional mix. Promotional
mix has following elements:
Advertising
Personal selling
Sales promotion
Public relations
Direct marketing
Corporate image
Sponsorship
Guerrilla marketing
Product placement
Right from the selection of advertising channels like television, radio or the internet to
the development of sponsors or promotional activities which will enhance the marketing process.
The use of direct marketing or sales is a technique in which individual representatives of the
company will go from place to place for selling the products and services of the organisation
(Tussyadiah, 2012). Furthermore, the internet and social media are prominent platforms for
advertising and promoting the product of Thomas Cook Group to individuals in distant parts of
the world. The integrated nature of promotional mix helps in providing more effectiveness to the
marketing strategy.
Each and every element of the promotional mix plays a vital role in the entire marketing
strategy so that efficient communication channels can be developed. The decisions and
budgetary considerations have to be catered accordingly so that excessive expenditure doesn't
take place (Ashworth and Goodall, 2012). The overall costs of marketing process must not cross
the maximum value so that burden is not experienced by Thomas Cook Group if in case the
strategy fails.
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P4.2 Promotional campaign (Poster)
In the early age, cultural aspects, learning languages and travelling challenges restricted (Capacci, Scorcu and Vici, 2015). In 14 century
Christopher Columbus sailed westward and vasco da gama cruised to country for earn money then business travel has been integral part of
tourism industry(Cave and Brown 2012).
Early tourism started with Nomads who travelled around the world in search of food and
shelter. Main intension of this traveller is to gathered food and traded around the world and gave rise to the barter system (Capacci, Scorcu and
Vici, 2015). 1500 BC is marked as the era when the Europeans visited pyramids and thus developed the tourism for pilgrimage. Early tourism
started with Nomads who travelled around the world in search of food and shelter. Main intension of this traveller is to gathered food and traded
around the world and gave rise to the barter system (Capacci, Scorcu and Vici, 2015). 1500 BC is marked as the era when the Europeans visited
pyramids and thus developed the tourism for pilgrimage.
Summer 2018 Holidays to Egypt and Morocco
The Thomas Cook Group has come up with an exclusive package of summer holidays to exclusive
destinations i.e. Egypt and Morocco.
Do not worry about the price because it won't
burn your pockets.
It's a 4 nights and 5 days travel plan with
all inclusive expenses and stay at exotic
locations. The mystical history and
archaeological marvels of these two destinations
will leave you mesmerising and dreamy.
The use of integrated promotional campaign for the travel and tourism business of Thomas Cook Group and its summer destination holidays
to Egypt and Morocco. Advertising and promotion helps in building stronger public relations. It also helps in building up the base for
publicity and excessive brand awareness amongst potential customers. The aims and objectives which are devised by the company are also
accomplished in particular time period with help of promotional campaigns (Sharpley and Telfer, 2014). But there has to be proper control
and supervision over these activities so that minimum sales figure is obtained without bearing excessive costs.
For details log on to our official website or
register yourself with the company.
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CONCLUSION
Travel and tourism industry is highly supported by the marketing activities of individual
businesses and activities of these enterprises. This report helps in understanding the concept of
marketing in this industry and the factors which affect or influence the marketing environment.
There is a marketing report regarding the new product of Thomas Cook Group i.e. Summer 2018
Holidays to Egypt and Morocco. This assessment also covers the different issues which arise
when considering the product, price and place elements of the marketing mix. It is important to
understand that service sector mix differs from the product mix in some terms. The use of
concept of total tourism product shall help in defining clear lines with respect to the services and
products provided by Thomas Cook Group. Lastly, promotional mix has been depicted with
reference to the roles and characteristics in this report. The integrated promotional mix has been
used for developing a promotional campaign for Thomas Cook Group regarding its summer
holidays product.
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REFERENCES
Books and Journals
Ashworth, G. and Goodall, B., 2012. Marketing tourism places (Vol. 2). Routledge.
Buhalis, D. and Foerste, M. K., 2013. SoCoMo marketing for travel and tourism. In Information
and Communication Technologies in Tourism 2014(pp. 175-185). Springer International
Publishing.
Buhalis, D. and Foerste, M., 2015. SoCoMo marketing for travel and tourism: Empowering co-
creation of value. Journal of Destination Marketing & Management. 4(3). pp.151-161.
Cohen, S. A., Prayag, G. and Moital, M., 2014. Consumer behaviour in tourism: Concepts,
influences and opportunities. Current Issues in Tourism. 17(10). pp.872-909.
Dolnicar, S. and Ring, A., 2014. Tourism marketing research: Past, present and future. Annals of
Tourism Research. 47. pp.31-47.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Falk, J. H., Packer, J. and Benckendorff, P., 2012. Travel and learning: A neglected tourism
research area. Annals of Tourism Research. 39(2). pp.908-927.
Goeldner, C. R. and Ritchie, J.B., 2012. Tourism: principles, practices, philosophies (No. Ed.
12). John Wiley and Sons, Inc.
Hanssens, D. M. and et. al., 2014. Consumer attitude metrics for guiding marketing mix
decisions. Marketing Science. 33(4). pp.534-550.
Hays, S., Page, S. J. and Buhalis, D., 2013. Social media as a destination marketing tool: its use
by national tourism organisations. Current issues in Tourism. 16(3). pp.211-239.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer New York.
Leonidou, C. N., Katsikeas, C. S. and Morgan, N. A., 2013. “Greening” the marketing mix: do
firms do it and does it pay off?. Journal of the Academy of Marketing Science. 41(2).
pp.151-170.
Maister, D. H., 2012. Managing the professional service firm. Simon and Schuster.
Morrison, A. M., 2013. Marketing and managing tourism destinations. Routledge.
Muruganantham, G. and Bhakat, R. S., 2013. A review of impulse buying
behavior. International Journal of Marketing Studies. 5(3). pp.149-160.
Nour, M. I. and Almahirah, M. S., 2014. The Impact of Promotional Mix Elements on
Consumers Purchasing Decisions. International Business and Management. 8(2). pp.143-
151.
Sharpley, R. and Telfer, D. J. eds., 2014. Tourism and development: concepts and issues (Vol.
63). Channel View Publications.
Singh, M., 2012. Marketing mix of 4P’s for competitive advantage. Journal of Business and
Management. 3(6). pp.40-45.
Tucker, F. G., 2013. Creative customer service management. International Journal of Physical
Distribution & Logistics Management.
Tussyadiah, I. P., 2012. A concept of location-based social network marketing. Journal of Travel
& Tourism Marketing. 29(3). pp.205-220.
Online
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5-Step Strategic Marketing Process. 2017. [Online]. Available
Through:<http://smallbusiness.chron.com/5step-strategic-marketing-process-15753.html>.
[Accessed on 28th April, 2017].
The Disadvantages of Market Orientation. 2017. [Online]. Available
Through:<http://smallbusiness.chron.com/disadvantages-market-orientation-15818.html>.
[Accessed on 28th April, 2017].
The Value of Marketing to Society. 2017. [Online]. Available
Through:<http://smallbusiness.chron.com/value-marketing-society-21508.html>.
[Accessed on 28th April, 2017].
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