Travel and Tourism Marketing: Strategic Analysis of Thomson Group

This report provides a comprehensive analysis of marketing within the travel and tourism sector, using Thomson, a UK-based travel operator, as a case study. It delves into core marketing concepts such as understanding customer wants, needs, and demands, and how these factors influence product development. The report assesses the impact of both micro and macro environments on Thomson's business, including the roles of customers, suppliers, competitors, technology, political factors, and economic conditions. Furthermore, it explores factors affecting customer motivation and demand, such as cultural, social, personal, and psychological influences. The principles of market segmentation are analyzed, detailing demographic, geographic, psychographic, and behavioral segmentation. The importance of strategic marketing planning is examined using the SOSTAC model, including situation analysis (SWOT and PESTEL), objective setting, strategy development, tactical development, action, and control. The relevance of marketing research and information is discussed using the DODCAR model. The report also evaluates the influence of marketing on society and addresses issues in the marketing mix (product, price, place, and service sector mix). Finally, it assesses the integrated nature and role of the promotional mix and proposes an integrated promotional campaign for Thomson's summer 2019 holidays to Turkey and Spain.

Table of Contents
INTRODUCTION..........................................................................................................................3
TASK 1.........................................................................................................................................4
1.1 Discuss the core concept of marketing for the travel and tourism sector......................4
1.2 Assess the impact of marketing environment on the travel and tourism business
(Thomson)..............................................................................................................................5
1.3 Discuss the factors affecting the customer motivation and demand in the travel and
tourism sector........................................................................................................................7
1.4 Analyse the principles of market segmentation and its uses in marketing planning at
Thomson.................................................................................................................................8
TASK 2.........................................................................................................................................9
2.1 Analyse the importance of strategic marketing planning................................................9
2.2 Discuss the relevance of marketing research and marketing information....................11
2.3 Assess the influence of marketing on society................................................................12
TASK 3.......................................................................................................................................13
3.1 Discuss issues in the product, price and place elements of marketing mix with
reference to Thomson..........................................................................................................13
3.2 Assess the importance of service sector mix elements to travel sector.......................14
3.3 Apply the concept of Total Tourism product to an individual tourism business...........15
TASK 4.......................................................................................................................................16
4.1 Assess the integrated nature and role of promotional mix...........................................16
4.2 Plan and justify an integrated promotional campaign for Thomson summer 2019
holidays................................................................................................................................17
CONCLUSION............................................................................................................................19
REFERENCES.............................................................................................................................20
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INTRODUCTION
The priorities and demand of the people are changing which gives rise to the travel and
tourism sector in the UK. Today more and more people are inclined towards moving out for
a short period of time from the residence. Travel and tourism help such people who have
different purposes, to visit other nations (Horner and Swarbrooke, 2016). It has become one
of the competitive industries which help in the economy of the country. There are various
parameters that impact the marketing environment and operations of the travel and
tourism business.
The contribution of this industry is high in the growth and progress of the nation and the
economic condition of the industry is improved. Marketing techniques and strategies are
used in this industry so as to accomplish the goals and aims of the industry and allure the
visitors and tourist towards it (Fennell, 2014). Thomson is the travel operators based in the
UK which is taken into consideration for this report. A major focus is given on the summer
2019 trips to Turkey and Spain being launched by Thomson.
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TASK 1
1.1 Discuss the core concept of marketing for the travel and tourism sector
The core concept of marketing should have clarity and should be relevant and definite in
order to have a better understanding of procedures for marketing. The core concepts of
marketing are:
WANTS: wants of the segmented and targeted customer is to be analysed. The purposes of
the customers are different while telling where they like to explore, learn, spend leisure
time etc (Mason, 2015). it is important for the tour operator Thomson to develop different
packages of the tours for both Turkey and Spain so that it satisfies the wants of the targeted
customers.
NEEDS: the needs such as security, fundamental, physiological and esteem etc of the
customers need to be fulfilled (Fennell, 2014). Thomson should consider the needs of the
customer by proper planning in order to provide good quality food, regional transport
facilities and also the accommodation facilities.
DEMANDS: the demands of the customers other than their needs and wants should be
fulfilled (Horner and Swarbrooke, 2016). The customers, who travel, demand the regional
items and other security. The customers demand facilities like insurance in case of an
accident or adventure tourist insurance which is included in the holiday package.
PRODUCTS: the products offered by Tour operator Thomson should follow the current
trends and preferences of the target market (Mason, 2015). There are various services like
luxurious rooms, travelling by Volvos/cruise, high quality of food that too at an affordable
price and are reliable.
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MARKET: all the detailed information regarding the destinations like Turkey and Spain is to
be provided to the customers by Thomson. Also, the different packages and travelling
details developed for the tourists should be included in the brochure (Fennell, 2014).
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1.2 Assess the impact of marketing environment on the travel and tourism
business (Thomson)
The marketing environment includes the micro and macro environment that influences the
tour operator Thomson and destinations that is Turkey and Spain. They are:
MICRO ENVIRONMENT:
The micro environment includes customers, suppliers/ intermediaries and competitors:
Customers: the business operations of Thomson is impacted by the changing needs and
demands of the customers for example if the customer demands to add insurance benefits
with the package then the premium for this insurance will impact the business of the
Thomson that is either profitable or loss.
Suppliers/intermediaries: there are various facilities which are provided by the tour
operator Thomson in coordination with the suppliers and intermediaries. The quality and
price of these facilities impact the business as the best quality of services and facilities will
increase the customer by attracting them (Prayag, et al. 2017).
Competitors: the competitors influence the internal environment of the company as the
reasonable packages offered by the competitors attract a large number of customer base
impacting the business of the tour operator Thomson.
MACRO ENVIRONMENT:
The macro environment comprises technology, political, demographic and economic
factors:
Technology: the website owned by the tour operator Thomson is beneficial as this will help
in select customize holiday packages for Spain and Turkey including online service for the
customers.
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Political: the political environment of the Spain and Turkey are stable which includes the
policies and frameworks for the safety and security that is different insurances of the
customers that affect the business of the tour operator Thomson (Cohen, et al. 2014).
Economical: inflation rate, currency rate, bank rate are some of the economic factors that
affect the demands of the tourists and business operations of Thomson.
Social: the social and cultural factors of the customer affect the business operations of the
tour operators Thomson.
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1.3 Discuss the factors affecting the customer motivation and demand in
the travel and tourism sector
Some of the below-given factors impact the customer motivation and demand in the travel
and tourism sector are:
CULTURAL FACTOR: the cultural factor includes the culture of the country and the
customer’s own culture that motivates the customer to visit the particular location in the
travel and tourism industry (Zeng and Gerritsen, 2014). For example, the Muslim people
incline towards their customs which motivates them to visit holy mosques for worship.
SOCIAL FACTOR: the social factor comprises family, reference groups, colleagues and friend
who motivate the customer to visit the places like Turkey and Spain. For example, the peer
group who have visited these places before will depict the information of that place
influencing them to visit those places (Cohen, et al. 2014).
PERSONAL FACTOR: the personal factors like lifestyle, business, education and economic
situation influence the customers to visit the locations like Spain and Turkey. For instance,
the interest in the knowing the historical sites will motivate the customer to visit Turkey and
Spain.
PSYCHOLOGICAL FACTOR: there are various factors like perception, attitudes, motivation
and learning influences the customers to visit the locations like Turkey and Spain, for
example, the traditional and natural beauty of Turkey will attract the customer to visit these
sites (Prayag, et al. 2017).
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1.4 Analyse the principles of market segmentation and its uses in
marketing planning at Thomson
The segmentation of market is done by categorising the whole market into niche market
involving the customer of same characteristics. Market segmentation can be done by
Thomson is done in three different categories:
 Demographic segmentation
 Geographical Segmentation
 Psycho-graphic segmentation
 Behavioural segmentation
The procedure of marketing includes the objective settings, tactical development,
situational analysis, actions and control. The segmentation of Thomson is done by analysing
the age, country, lifestyle and purpose (Morrison, 2013). Segmentation is done to
understand the needs and wants of the customers for planning the packages for Turkey and
Spain. The activities of the marketing are drafted and planned to attract the target
customers (Chatterjee, et al. 2017). The segmentation of the market is to meet the needs of
the targeted customers as the tour operator Thomson fulfils desires of the customers. For
example, the tour operator Thomson can target the customer having the age group
between 18 and 26 years as they want adventure activities such as mountaineering,
paragliding etc.
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TASK 2
2.1 Analyse the importance of strategic marketing planning
Strategic marketing plan of Thomson is understood by the SOSTAC model for developing the
summer holiday packages for Turkey and Spain
SITUATION ANALYSIS: the present situation of the tour operator Thomson can be analysed
by using SWOT and PESTEL analysis to identify the present position of the company in the
market and the economic condition so as to take a decision on the suitable investment in
planning the summer holidays of Turkey and Spain.
OBJECTIVE SETTING: the main objective of the tour operator is to maximise the profit by
increasing the customer base which can be done by developing effective marketing
strategies (Dos Santos and Campo, 2014).
STRATEGY DEVELOPMENT: the marketing strategies developed by the Tour operator
Thomson should be effective, innovative and creative so as to attract the large numbers of
customers to take the summer holiday packages for Turkey or Spain.
TACTICAL DEVELOPMENT: various market surveys and researches is to be done by the tour
operator Thomson so as to gather the information regarding the current trends of the
market, needs and demands of the customers and strategies of the rivals in the market.
ACTION: the actions to be implemented by the tour operator are the agreement signed with
the airlines, bus operators and hotels and restaurants selected for tours so as to attain the
objectives (Morrison, 2013).
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CONTROL: it is essential for the tour operator Thomson to determine that high quality of
services and facilities are provided to its customers and passengers.
SIGNIFICANCE OF STRATEGIC MARKETING PLANNING FOR TOUR OPERATOR THOMSON
AND TOURISTS DESTINATION TURKEY/ SPAIN ARE:
 It assists the tour operators in making decisions regarding the suitable strategies to
accomplish the objectives of the Thomson.
 It identifies and clarifies the roles and responsibilities of the members of the tour
operator Thomson.
 It helps in the optimal utilization of resources with proper allocation in a suitable
manner (Chatterjee, et al. 2017).
 It also determines to select the appropriate quality of hotels and flights so as to
satisfy the needs and demands of the customers.
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