Marketing in Travel and Tourism: Scotland, TUI Group Analysis Report

This report provides a comprehensive analysis of marketing principles within the travel and tourism industry, with a specific focus on Scotland's tourism sector and the TUI Group. It begins by outlining the core marketing concepts relevant to the Scottish tourism market, examining the marketing environment, consumer motivation, and market segmentation strategies. The report then delves into strategic marketing planning, including the importance of marketing research and its influence on society. Furthermore, it identifies the elements of the marketing mix, including the service sector mix, and applies these concepts to the TUI Group, a major player in the travel and tourism industry. The report concludes with an examination of the promotional mix and proposes an integrated promotional campaign for TUI, providing a holistic understanding of marketing practices in this dynamic sector.

Marketing in
travel and
tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.1 Core concept of marketing for Scotland ............................................................................1
P1.2 Marketing environment of Scotland and its impact on the tourism business.....................2
P1.3 Factors affecting Consumer Motivation and Demand........................................................3
P1.4 Principle of market segmentation and their use in marketing planning..............................4
TASK 2............................................................................................................................................5
P2.1 Importance of strategic marketing......................................................................................5
P2.2 Relevance of marketing research and information.............................................................5
P2.3 Influence of marketing on society.......................................................................................6
TASK 3.......................................................................................................................................7
P3.1 Identifying the elements of marketing mix and issue related to it......................................7
P3.2 Importance of service sector mix elements ........................................................................8
P3.3 Applying the total tourism business to TUI group..............................................................9
TASK 4............................................................................................................................................9
P4.1 Role of promotional mix ....................................................................................................9
P4.2 Integrated promotional campaign for TUI........................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Travel and tourism has become one of the important sectors of current economy. This is
one of the fastest growing industries that has shown tremendous growth in recent years and has
played a major role in strengthening the economy of nation. Current report will discuss the
marketing concept in context of travel and tourism. It will provide the core concept that can help
Scotland in development of its tourism and travel sector. It will discuss marketing environment
and its impact on the working of this industry. Principal of marketing segmentation and factors
affecting the motivation of customers is also discussed. Strategic marketing planning for travel
business along with relevance of marketing research will also be highlighted. TUI is one of the
biggest leisure, travel and tourism company that owns various travel agencies, hotel, cruise ship,
retail stores, etc. The current report will study marketing activities of selected firm. Marketing
mix important services of firm is discussed.
TASK 1
P1.1 Core concept of marketing for Scotland
Core concept of the marketing is that process through which the organisational sectors
and its members meets their needs by satisfying their customers (Core concept of marketing
2011).
Tourism of Scotland : Scotland is one of the favourite holiday destination for the tourist.
The country provide their visitors a great experience where they combine their ancient
monuments, tradition and battlefields with their legendary myths and folklore (Scotland 2017).
Core concept of Scotland is to give best experience to their customers and increase their revenue.
This sector of Scotland wants to make their customers satisfied. Customers always needs that
their demand are fulfilled. They want quality products which will make them satisfied (Core
concept of marketing 2011). Scotland maintains healthy relations with all their competitors in
the market. They chose better suppliers after doing proper research.
Scotland keeps database of customer relationships management for their all the
customers. It is necessary to understand the amount of customers who have visited the place.
This helps them to understand the needs and demands of the customers. Market plays very
important role in Scotland (Scotland and Tourism. 2017). They face very high competition.
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In recent year the no. of tourist in the country has increased to 5% that is more than 15
million compare to last year. In this 11% were oversea tourist and 3% were domestic visitors.
According to figure the maximum number of oversea tourist were consisted of Europe. The
tourist from north America also rose by 28%. The rise in the visitors and expenditure shows that
Scotland provide their visitors with quality experience on which they can spend money (Scottish
visitors number rise to 15 million. 2017).
Scotland is land full of wonder the country has most beautiful places that catches the eye
and heart of people.
Edinburgh Castle is one of the biggest attraction for the tourist. It own its existence since 13 th
century and is still dominating the skyline of nation. Loch lomond is another one of the beautiful
attraction that attract people toward it. Its one of the largest lake with plentiful trout, salmon and
whitefish (Tourist Attraction in Scotland. 2017). Along with this there are many more attraction
such as Isle of Arran, Stirling etc., that has been able to gain the attention of people.
Other than beautiful attraction the nation also provide their tourist with attractive
activities that are good enough to keep the interest of nation.
The home of golf was able to attract the attention of most golfer that come here to play
and experience the sport at its most authentic. Scotland consists of both land and cost and
provide their tourist adrenaline pumping experience. Mountain biking in rugged area, Scaling,
gliding etc., (Scotland 2017). Along with this it also promotes water sports such as boat trips etc.
It also includes multi activities for children such as climb zone. Other than this it also promotes
snow sports cycling.
Edinburgh summer festivals, Hogmany and new year, Highland games are few major event that
are held every year in Scotland and is able to attract the attention of tourist.
Marketing concept can be described as a philosophy that stated an organisation or nation
should concentrate on the needs of customer and then make decision so that they can satisfy
these demands (Alsharif, 2012). There are five basic concepts of marketing that Scotland is
following in order to attract more travellers towards the country . Production concept: These concepts focus on the needs of travellers. According to this,
people prefer to travel those places that are easily accessible and highly affordable in
price. In order to meet the demand of travellers, Scotland makes sure that their travellers
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found the place enjoyable and knowledgeable (Buhalis and Foerste, 2015). It is making
necessary changes in their policy so that whole process can become smooth. Product concept: According to these concepts, travellers prefer the place that provide
them with high quality services. For example: proper accommodation, food, transport
facility, etc. Scotland promotes many travel agencies that can cater to the needs of
travellers (Awan, 2014). They try to provide visitors with the best travelling and
accommodation services. Selling concepts: The main aim of this concept is to increase the sale of company.
Promotion is the way through which nation can promote their services and can attract
more travellers toward their land. They can use social media and internet as a medium to
grow awareness among customers (Hudson and Thal, 2013). Scotland can create its own
web page which can show the beautiful places and services that nation has to offer to
their visitors. They can also attract people by offering special services like accident or
adventure tour insurance. Marketing Concepts: It focuses on the needs and demand of target market and introduce
new product which can satisfy the petition of public. Scotland is using pull strategy in
order to gain the attention of tourist (Chandon, Wansink and Laurent, 2017). It is also
trying to make their nation as one of the leading tourist destination of world.
 Societal marketing concept: This concept focuses on providing valuable services to the
service users while ensuring the well-being of society. Scotland makes sure that they are
meeting the needs of their customers while preserving the nation so that needs of future
generation can also be fulfilled (Jucan and Jucan, 2013).
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Illustration 1: Concept of marketing
(Source: Concepts of marketing. 2017.)
P1.2 Marketing environment of Scotland and its impact on the tourism business.
Micro environment is that environment which is affected by the internal factors of the
sector (Sharpley, 2015). On the other hand macro environment is that environment which is
affected by the external factors of business environment.
Marketing environment involves both micro and macro environment factors which have
their impact on the business of travel and tourism.
Micro environment. Customers: Customers play an important role in the business. It is necessary for nation to
meet the demand of customers so that they can feel satisfied with the services provided
by nation. Through a research it has come forward that 7 stanes mountain biking network
was able to attract more than 1.3 million bikers (Horner and Swarbrooke, 2016). It shows
the preference of people Scotland is investing more fund in this so that it provide better
services and can encourage more visitors.
 Suppliers: Suppliers play an important role in satisfying needs of customers and
providing them with the best experience. Supplier includes other hospital industry that
are responsible for the accommodation, transport and food facilities (Chawla, 2016).
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Scotland government is funding many organisations and creating partnership with them
so that the best services and development of this sector can be incurred.
 Competitors- The strategy used by the competitors can affects the operations of Scotland.
Micro environment is affected by the opportunities and threats (Dolnicar and Ring,
2014). Scotland has many opportunities to grow in the market. They have major threat of their
competitors.
Macro Environment Political factor: Political stability plays the major role and have a huge impact on the
business of tourism. Tourism flourish in those country that are free of any political
turmoil and provide their visitors with better security. Brexit has a significant impact on
the political environment of Scotland and it also has it effects on the tourism business of
nation (Chon, 2015).
 Technology: It refers to the technology, research and development on the business of
nation. Nation can use upgraded and latest technology in their working so that they can
attract more customer. For e.g. firm can introduce their own webpage that can give detail
about the product and services along with different destination place that nation has to
offer along with this it can also develop attractive mobile app that can help them in
attracting the attention of clients (Cobb, 2013).
 Demographic factor- It is most important factor in the tourist factor. Beauty of the place
will attract more customers towards them .
 Natural- This factor is not in the hand of management. They need to plan proper
strategies to cope with these type of natural situation.
 Cultural- Scotland shows their different culture to their customers which gains their
attention (Horner and Swarbrooke, 2016).
 Social- Needs and demands of the customers changes. Scotland understands these needs
and demands and tries to fulfil them. This factor significantly effect the business
operations of the organisation.
Nation can keep this points in mind while preparing marketing strategy.
SWOT analysis-
 Strengths- Scotland has the strength of its reputation in the market. They provide better
experience to their customers.
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 Weaknesses- They spend very little amount in their promotional activities (Meer and
West, 2015).
 Opportunities- Scotland has opportunities to further grow in the market. They can use
more innovative ideas to make the experience better for the customers.
 Threats- They have major threat of their competitors in the market
P1.3 Factors affecting Consumer Motivation and Demand.
Demand is the want or need of some specific thing which is required by the customers.
Tourist go to the Scotland because they provide and maintains better experience for their
customers (Gómez, 2012 ).
There are many factors that can affect the motivation and demand of visitors in order to
motivate visitors and attract them towards nation.
Purchasing power of consumer: It refers to the ability of person to buy the services provided to
them. Its necessary of Scotland to provide their services in affordable prices so that it can
attract all type of people (Dolnicar and Ring, 2014). On the basis of this Nation can divide
their group on the basis of their purchasing power and can produce various offer that can
attract the customer toward them.
Personal preference: It is concerned with the personal preference of people their likes and
dislikes (Furnham, 2015). It necessary to produce such tour package that it can attract the
attention of various people for e.g. Scotland can produce customize package which will only
include the activity that person himself has selected.
Scotland has adopted Maslow’s theory of motivation in order to attract customers
towards their nation. it has tried to fulfil all the psychological need of customers so that they can
have fulfilling experience (Armstrong and et. al., 2014). These include the human basic need
such as shelter, food accommodation etc. Scotland make sure that its every travel packages
provide their customer with this basic need so that they can choose their nation as the place for
travel. This will not only help them in attracting more customer but also assist them in providing
quality service to their clients.
Above are given the basic need of traveller if the nation is able to fulfil all this
need than they can motivate travellers in visiting their countries. Scotland can use this theory in
consultative planning they can make necessary changes in their services so that they can meet
the basic need of travellers.
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P1.4 Principle of market segmentation and their use in marketing planning.
Marketing segmentation is the process of dividing the potential customer in groups or
different segments on the basis of different characteristics (Grant, 2012). The different type of
market segmentation re given below
Demographic segmentation: In this segmentation are based on age, gender, size, income
occupation, religion, race etc.
Psycho graphic segmentation: It focuses on the life style, their activities and interest.
Geographic segmentation: This segmentation divide user on the basis of geographical area
(Heine, and Wortsman, 2015).
Behavioural segmentation: In these groups are divided on the basis of behaviour and their
decision making patter.
 Scotland can divide their customers on the basis of above given segmentation and can
plan their marketing activity so that they can meet the demand of their service user and
make sure that they are satisfied with the service provided to them (Armstrong and et. al.,
2015).
 Its quite effective choosing the right advertising tactics in strategic way that can help
Scotland in attracting more customer. For instance if the target market of nation is on the
basis of age than in order to gain the attention of young people nation can choose social
media as the channel to provide important information and advertise their services
(Baker, 2014).
By adopting strategic tactics in their marketing plan Scotland can increase the number of
travellers in their countries and can have positive impact on the revenue of tourism business.
TASK 2
P2.1 Importance of strategic marketing
Strategic marketing is a process through which Scotland can effectively differentiate
himself from other nation by investing on its current and potential strength so that it can provide
better value to their customers (Horner, 2017). The aim of Scotland is to increase the number of
traveller and create awareness about their nation globally. With the help of effective marketing
planning Scotland can attract more travellers by providing them with valuable services. Strategic
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marketing will help in identifying the internal competencies that can help Scotland in
overcoming future uncertainty (HOWELL, 2011).
 It provides nation with a blueprint and designed framework which help Scotland in
creating better budget, customer service and course of action (Inghilleri and Solomon,
2012). It also provides service giver with in depth understanding of target market and
customer so that best measures can be taken in order to meet the demand of customers.
 With the help of proper analysis it helps in taking necessary control measures that can
assist nation in taking right step at the right time and also help them in assessing whether
the plan was effective or not (Sharpley, 2015).
 It also quite useful in establishing effective marketing communication. It helps you in
selecting best channel that can provide the cited country with the best visibility and
profit.
Marketing strategy have many functions not only it helps nation in promoting its product
but also help them in come up with the best way through which they can gain more visibility and
attract travellers in visiting their country (Kerin, Hartley and Rudelius, 2011).
Marketing plan-
Scotland can set special targets in their marketing plan to achieve the objectives.
 Better experience- They can use innovative ideas to make better experience for their
customers (Dubois and et.al., 2013).
 Employee training- Scotland can provide and give proper training to their employees.
P2.2 Relevance of marketing research and information
Marketing research is the process that help in gathering the information about the market
and it's changing trends (Kshetri, 2014). With the help of marketing research Scotland can
identify the need and preference of market and customer and can make necessary changes in
their services so that they can meet the demand of customer. Marketing research provide land
with useful information that help them in targeting their customer in efficient manner and
meeting their demand effectively (Law, 2014). Manger of Scottish tourism can use market
research in order sustain in this competitive environment. Various benefits of marketing research
are given below Customer centric approach: Market research is customer centric approach that help
nation on focusing the need and demand of customer. It helps in enhancing the
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experience of people by meeting their unsatisfied need. The main aim of research is to
identify the need, opinion, interest and demand of services that are offered by nation.
This help in building positive perspective in the eye of customer (Meer and West, 2015). Focus on key activities: It focuses on continuous improvement of the services provided
by nation (Medlik, 2015). By proper analysis manger of Scotland can become aware of
the loopholes that has affected their services and can take necessary decision in order to
enhance it
 Growth opportunities: It provides direction to the efforts of manger. It helps in
identifying different area of growth and opportunities that can help nation in enhancing
their proficiency and providing better experience to their service user (Middleton, Fyall
and Morgan, 2014).
Marketing research have three type of objectives which are mentioned below
Exploratory approaches:
This type of research help in proper research and establishing priorities, and operational
design that can help researcher in selecting the best research design (Morrison, 2012). With the
help of this method Scotland can select best method through which they can conduct a research
and collect the necessary data that can help them in making necessary changes.
Descriptive approach:
This research is Quite useful for Scotland in understanding the different characteristics
and trend of people (Rowley, 2016). This research is quite effective in knowing the past
travelling and marketing tendency of tourist that visits Scotland and make necessary changes that
can satisfy them.
Casual research:
This type of research are generally used to observe the variation in the variable. With the
help of this research Scotland can observe the necessary change that affect the characteristics of
tourist
Some research approaches have also been mentioned below Quantitative: This method use objective measurement such as statistical data,
mathematical, and numerical analysis to collect data. This research is quite effective as it
provides with appropriate numerical data to explain any particular phenomena (Babin
and Zikmund, 2015).
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 Qualitative:Its broad methodological approach that include much research method. Its
quite effective as it provides in-depth study of particular subject before coming to a
conclusion (Sharpley, 2015). Scotland can adopt this method in their working so that
they could understand the need and demand of tourist.
Different steps of research plan has also been mentioned below Primary research include those researches which has not been conducted before or
published or interpreted by anyone (Van der Westhuyzen and Van der Merwe, 2015).
 Secondary research: Include re examining and interpreting of existing research and then
form an opinion based on those study (Walker and Harding, 2016). Scotland can use both
the method they can conduct the primary research and can also pay attention to
secondary research so that best results can be obtained.
P2.3 Influence of marketing on society
The marketing plans that has been implemented by the government of Scotland has its
impact upon the society which has been mentioned below
Positive impact
 With the help of marketing Scotland promotes the tourism sector of nation at much wider
level it also helps in creating the job in various hospitality industry with the growth of
tourism demand of hotels, restaurants, transport will increase which will create job
opportunities for many people and will also contribute in eliminating the problem of
unemployment (Alsharif, 2012).
 It also helps in creating awareness about their culture. The travellers can learn about the
culture of Scotland and in return can also help local people in understanding the culture
of different people (Horner and Swarbrooke, 2016).
 It also plays major role in enhancing the economic condition of nation and improving the
living standard of society. Tourism with it brought foreign currency in the country that
help in building strong economy (Awan, 2014).
Negative influence
 Marketing in tourism lead to increase in high prices in the products and services in
different hospitality services. This create problem for the citizen who had such services at
must efficient cost before this (Hall and et.al., 2015).
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