Marketing Essentials for Travel and Tourism: A TUI Group Report

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MARKETING
ESSENTIALS FOR
TRAVEL AND TOURISM
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explanation of Key Roles and Responsibilities of Marketing function...........................3
P2. Discussion of Roles and Responsibilities of Marketing related to wider organisational
context....................................................................................................................................5
P3. Elements of Marketing Mix.............................................................................................6
TASK 3..........................................................................................................................................10
P4. Development of a Marketing Plan.................................................................................10
CONCLUSION .............................................................................................................................12
REFRENCES.................................................................................................................................14
Books and Journal................................................................................................................14
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INTRODUCTION
Marketing is an important part of business management, it includes various activities that
are undertaken by business to promote its products and service. Marketing includes selling,
advertising, and delivering products to consumers or other businesses. It is a task that is used by
business to establish a brand position in the market. In relation to tour and travel travel industry
marketing plays a vital role uplift the industry. United kingdom is world's 10th biggest tourism
destination in the world. Marketing helps to spread awareness about the product and service
offered by the organisation and to gain competitive advantage in the market. The report is based
on TUI AG, which is a leading tourism group. It is the largest travel and tourism, leisure
company in the world. There is discussion related to roles and responsibilities of marketing in
context of TUI Group. Also marketing function has relation with all the other functions in an
organisation. To explain further comparison is done between different tourism organisations
apply the marketing mix. In the end of report a marketing plan for a travel and tourism
organisation that helps to achieve the objectives of organisation(Adeyinka-Ojo, and Nair, 2016).
MAIN BODY
TASK 1
P1. Explanation of Key Roles and Responsibilities of Marketing function
Marketing is a process that spread awareness about the product and services offered by a
company and take measures to persuade the customers to buy the product or avail service
offered. It is wider concept and focuses on gaining competitive advantage in the market. The task
is to attract customers to achieve the set goals and objectives of the organisation. Along with
that it helps to persuade customers to buy the products. Main aim is to to influence the target
market and that can be accomplished by following these steps:
First step is to assess the needs and wants of customers.
Then select the target customers to whom the products and services will be offered.
Afterwards set marketing mix strategy to promote the product effectively.
Final step is execution of plan by approaching customers(Singh and Srivastava, 2019).
Marketing function not only promotes the product and service but take actions to identify the
needs and wants of customers. In relation to tour and travel marketing function helps to stand out
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of competitors and establish brand image. Below mentioned are the roles and responsibilities of
marketing function:
Market Research: The first step is to make a proper research of all the factors that will
impact the product and service of organisation. Research has become vital part a it helps to
analyse the current trends in the market. In relation to TUI group, the organisation makes a
research about the past and current rends and than formulate strategies for future. As the number
of potential travellers is increasing it is important to make a proper research and serve the
customers accordingly(Björk and Kauppinen-Räisänen, 2016).
Brand Management: It is another function of marketing under which techniques are used
by company to enhance the perceived value of product offered and of brand. In relation to TUI
Group, the marketing department effectively manages the brand position of the company. As
TUI Group has established brand position that helps company to attract more customers. TUI
Group has established an image in mind of customers that by hearing the name a picture is
formed in the mind of customers.
Product Development: It is prominent to make regular development in the products
offered by the company. This includes improving existing product or developing new product.
This makes the company more successful by satisfying the needs and wants of customers. As
TUI Group is one of the biggest organisation in travel and tourism industry. They company takes
timely feedback from the customers and analyse the market condition. They regularly update the
services to enhance he satisfaction level of customers. Product development helps to attract new
customers and enhance value(Tapanainen, 2019).
Promotion: This is a process used by organisation to influence and attract customers.
Under this function the marketing department spreads information about the product and service
to the target customers. In relation to TUI Group company focuses on promoting the brand and
that has helped company to gain loyal customers. Company has established good image in the
market due to effective promotional strategies used by the marketing team.
Selling:Selling and marketing bare complementary functions of management. Both are
interrelated with each other. To sell the goods or service of a company there is need of effective
marketing function in the organisation. In relation to TUI Group the company is able to generate
high sales the marketing strategy adopted by company is strong. Along with that TUI Group has
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established a powerful image in the market that also contributes to increase in sales by the
organisation(Chandiok and Sharma, 2017).
P2. Discussion of Roles and Responsibilities of Marketing related to wider organisational
context
Marketing function is vital in every organisation. There are various other departments
that help the organisation to operate effectively. It can be analysed that all the other functions
are interrelated with each other. It is important for management to maintain coordination
between all the departments as it helps to achieve success(Tasci and Severt 2017). Marketing is a
single department but is related with all other departments, interrelationship of marketing
department with other departments is mentioned below:
Marketing and HR: HR is the person that recruits right person at right place. HR
department is important part of organisation. As it is duty of HR to hire an employee that has
have skills and will work effectively for the organisation. In relation TUI group whenever there
is vacancy in marketing department that is filed by Human resource Department. They analyse
the need of department and fill the vacancy according to that. Along with that the application for
vacancy is posted by marketing department. TUI Group recruits the employees and provide
proper training so that they help the organisation to achieve success. Proper training helps to
improve efficiency of employees. TUI Group focuses on both the department and ensure proper
coordination between them(éraphin, Platania, and Modica, 2018).
Marketing and Sales: Every company focuses to increase the sales and earn profits.
Sales of company is supported by the marketing department. Selling is a process of exchange of
good for money. Marketing can be defined as a process that helps to increase awareness of
products and services and persuade them to buy the product. Marketing department generate
leads for the sales department. The way in which marketing department promotes a brand
directly influence the sales of that organisation. In context to TUI Group the marketing
department makes a proper research of the market and focus of customers demands, when are
they planning holiday and make the plans accordingly that will help to enhance the sales. They
provide packages to the customers according to their preference like adventure holiday etc. and
that attract the customers and help the company to enhance sales. To become successful and earn
good profits the task is to focus on the marketing department as that is directly related to relates
department(Chong, 2018).
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Marketing and Finance: Finance is backbone of every organisation. It helps to set long
term and short term goals for the organisation. The department identifies the sources through
which finance can be arranged. It helps to invest money in right projects and earn profits.
Marketing department of a company woks on promoting the product that is launched by the
company. To promote the product marketing department requires money and that is approved by
the finance department. Finance department sets budget for marketing department. In case of
TUI Group, the marketing department works to promote the organisation and needs money to
boost the sales, improve the reach of business. Finance department checks the plan and then
provide them finance to carry out the operation. Along with that finance department forecast and
makes a study about returns from that project. An organisation has to take care that both the
organisation work hand in hand so that budget is not over used and marketing plan of the
organisation is also accomplished(Negm, and Elsamadicy, 2019).
Marketing and Research: It is vital for an organisation to make proper research to
become successful. Research department is most essential as it helps the organisation to analyse
the trends and preferences of customers. Research is an ongoing process and supports the
marketing department. In relation with TUI Group, the research department of company analyses
the needs and wants of the customers. As the preferences of customers keep on changing,
research department helps marketing department by communicating about the changing needs
and wants of customers. Marketing department uses the information and according formulate
marketing strategies that helps organisation to achieve success. It is duty of research department
to conduct research and coordinate with other departments(Yao, Lin and Huang, 2020).
It can be analysed that there are several organisations that help an organisation to achieve
success. No single organisation can achieve the task on time so it us important to establish a
relationship among them as it helps to achieve goals and objectives on time. Management should
take care that all the departments work in a coordinated manner(Coghlan and Weiler, 2018).
TASK 2
P3. Elements of Marketing Mix
Group of equipments are applied by the company to achieve the objectives and aims of
marketing. There are 7 P's which assist the company to describe the operative problems and
what are impact of the marketing strategies on the company. Marketing Mix support the
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company to accomplish the marketing aims of the organisation by upgrading the marque and the
goods in the market.
There are several companies that utilised the components of marketing mix in different manner .
So there are marketing mix of TUI and Booking.com.
ELEMENTS OF
MARKETING MIX
TUI BOOKING.COM
Product
The strategies of product is
applied by the company TUI
diversification. This strategy
helps the company to increase
and raise their profitability and
earnings, how cured the assets
are applied to raise the
merchandising of fresh goods .
This supports in acquiring
competitive benefit. The
services and facilities that is
planned by TUI are generate
after identifying the latest
trends and requirements of the
customer which are more
advantageous in the market.
In comparability to the
company TUI Booking.com
company applied consumer
based services. They
concentrate on proving the
employment and facilities that
are required by their current
consumers. They launched
only that is required and
demanding by their consumers
like tour packages,
accommodation and so on.
Price
TUI applies competitor
valuation according their
strategy of pricing. They fix
and put their rates higher
then the other rivals to present
their marque name and also
TUI cater amended and clear
The company Booking.com
applied distinguished strategies
for setting and fixing their
rates. They charged various
rates on the basis of services
that offered and provided by
the company.
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characteristics in tour
services . The agonistic pricing
is applied by the organisation.
Place
The company TUI provide
their services at the two
platforms. First platform is
shops and offline network
where the consumer can
directly come and take the
facilities and the other one is
by the online networks or
applications, it will the
individuals to operate the
websites and get services at
home and at their place(Dinçer
and Alrawadieh, 2017).
The organisation chiefly gives
their services by their
application and websites
where consumers can interact
with organisation by the use of
online network and take the
services at home. This
company also provide these
services at their stores as well.
Promotion
For upgrading, The company
TUI applied so many
traditional concepts such as
advertising, newspaper, on
social media and magazines.
The TUI company also started
social media marketing for
millennials.
For upgrading of their
packages of holidays and clear
components the company
Booking.com uses online
platforms such as Instagram,
Facebook, you-tube , twitter
and many more. The company
also uses broadcasting set and
television for promoting their
products.
There are several kinds of
sectors in the company and the
company have several force.
Rewards and appraisals and
some training programs are
cater by the company
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People
The company TUI generate
connection between the sectors
such as sales, services,
wholesale management and
many more. Trainings and
development sessions are also
provided by the company to
educate and trained their staffs
for the different department
and responsibilities and
involvement in the
organisation.
Booking.com to their workers
for operating and giving better
outcomes to the company. The
organisation makes better
communication with their
employees by daily
communication and interaction
with their workers that help
them to involve them in the
task and projects. The
company do investigation and
take response from their
consumers in order to fulfil
their requirements on the time
Process
Every company has acquire
several methods and concepts
to implements them in order
to get positive outcomes. In
TUI for managing their
services , servers are launched
that help the company to track
the and maintain safety on the
tours.
The company Booking.com
cater a individual and simple
platform to their consumers.
The company is connected
with almost 30 million hotels
and so many accommodations
but still they providing
individual platform by which
consumers get facilities to
book their tours.
Physical Evidences
The company TUI applied so
many packaging offers to their
goods. The company transfer
amended quality videos on
their application so that
consumer get to know about
The company Booking.com
provide the services of
customisation that means
consumers can pick anything
according to their budgets and
customers can choose dinning
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them and make perception
about the company.
facilities, holiday packages and
accommodations as per their
requirements.
TASK 3
P4. Development of a Marketing Plan
Marketing plans describe about the publicity and promotion preparation of a company,
where the company get up now, and what are the strategies applied by the company for
their future growth and success. A better market plan describes their thoughts and message
to their consumers. A very normal and simple marketing plan determines the mark
spectators, the worth prepositions and the plan of actions generate for the efficiency of
merchandising proposal. The marketplace is determined when investigation is done. A
planned marketing describe the modes so that company can identify the competition and
also the objectives(Kim, Stepchenkova and Yilmaz, 2019).
In regards with TUI, The organisation previously has their tour correspondence and
valuable bookings services. The company is functioning on constructing a mobile application
“TUI Fly” where the consumers can reserve the tickets and travel. The marketing plan for the
same is mentioned below
Executive Summary:
This plan provide the information about the Mobile application of TUI termed as TUI
Fly that supports the consumers to book their personalised ticket on the basis of their preference
and journey history. The application has characteristics that remain the consumers occupied
while they travel and provide the facilities to avoid the queue's for check in because by the
application they can do from mobile.
Strategic Objectives:
The objectives are linked with TUI Fly that is described below:
Increase the consumer base after the product launching.
TUI is scheduling to enhancing their productivity rate by 7% . TUI also scheduling to increase the consumer preservation rate by 15%
Offerings:
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The organisation is previously provided a huge range of packages to their consumers by
their websites and in outlets as well. Now a day’s TUI is scheduling to cater the new options for
choosing their preference accordingly.
Target Market:
Target market is collection of customers by which the products and services are to sold .
This is very required for TUI to choose the appropriate spectators according to the marketing and
on the basis of their consumers it is much required to determine the target consumers for
conducting a marketing plan. There are STP is described below in the context of TUI :
Segmentation: This is the procedure of separating diverse residents in uniform teams
mainly separating the residents in segment like:
Geographical: In this the residents are alienated on the basis of characteristics and for this
application consumers of metropolitan area of UK are selected(Li and Qiao, 2020).
Demographical: In this, resident are alienated in segment on the basis of demographical features
like age, gender, age and so on.
Targeting: This segment is done after separating the residents into segments and choosing
the suitable segment for the goods and services. TUI has embattled the common individual of
urban area of UK.
Positioning: This is the procedure of creating the image of the goods in the mind of the
consumers. The TUI Fly is located all functions in one application where individuall can do
booking and get features.
SWOT Analysis:
Swot analysis is used to identify the internal factors of the company like strength,
weakness, opportunities and threats. So here are the SWOT analysis of TUI :
Strengths
TUI cater varied goods, that are
required for the consumers. TUI-AIRWAYS coat approximately
150 destination.
Weaknesses
TUI has unsuitable organisational
structure that is why they are not able to
expand their business..
TUI company has less power to do
forecasting.
Opportunities
Advanced technologies cater
Threats
Rivalry is biggest threat for the
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opportunities to TUI to apply
differentiate strategy of pricing. Several individuals getting more
update about the travelling.
company.
Political instability is also become a
threat for the company.
Marketing Budget:
PARTICULARS I II III IV V
Start-Up Capital 5400 11000 12450 13030 17140
Investment 4300 7800 5500 4465 8636
TOTAL 9700 18800 17950 17495 25776
MARKETING
OUTLAY
Marketing 6500 7800 6900 12700 13660
Publicity 8800 12100 9900 10500 12200
TOTAL 15300 19900 16800 23200 25860
Monitoring:
This is much important to identify that what is done and what is important. There are
several modes to monitor the marketing plan and one of them is Key Performance Indicators
(KPI). The general pointer put by the TUI is productivity, tenancy velocity by consumers and the
amount of consumers taking these services(Liu and Schuckert, 2020).
CONCLUSION
From the above mentioned report it has been concluded that marketing is much needed
and essential purpose in any company because through by the help of marketing the company get
chance to attract more customer towards their company and develop themselves. In TUI each
and every department are much capable to choose the point out customer. The company TUI
applies very good marketing plan and strategies in order to make their business more successful .
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Moreover, The roles and responsibilities of the marketing strategies is very important function
in the company and plays a vital role.
REFRENCES
Books and Journal
Adeyinka-Ojo, S. and Nair, V., 2016. Rural tourism destination accessibility: Exploring the
stakeholders’ experience.Heritage, Culture and Society: Research agenda and best
practices in the hospitality and tourism industry, p.435.
Björk, P. and Kauppinen-Räisänen, H., 2016. Exploring the multi-dimensionality of travellers'
culinary-gastronomic experiences.Current Issues in Tourism,19(12), pp.1260-1280.
Chandiok, S. and Sharma, P., 2017. Hospitality Marketing: Strategic Issues. InStrategic
Marketing Management and Tactics in the Service Industry(pp. 213-242). IGI Global.
Chong, K.L., 2018. Price or pride? Malaysian marine cruising behaviour.International Journal of
Tourism Sciences,18(2), pp.110-123.]
Coghlan, A. and Weiler, B., 2018. Examining transformative processes in volunteer
tourism.Current Issues in Tourism,21(5), pp.567-582.
Dinçer, M.Z. and Alrawadieh, Z., 2017. Negative word of mouse in the hotel industry: A content
analysis of online reviews on luxury hotels in Jordan.Journal of Hospitality Marketing
& Management,26(8), pp.785-804.
Kim, H., Stepchenkova, S. and Yilmaz, S., 2019. Destination extension: A faster route to fame
for the emerging destination brands?.Journal of Travel Research,58(3), pp.440-458.
Li, F., He, C. and Qiao, G., 2020. Attributes that form romantic travel experience: a study of
Chinese Generation Y tourists.Current Issues in Tourism, pp.1-14.
Liu, X., Mehraliyev, F., Liu, C. and Schuckert, M., 2020. The roles of social media in tourists’
choices of travel components.Tourist Studies,20(1), pp.27-48.
Negm, E.M. and Elsamadicy, A., 2019. Measuring the impact of events’ impression management
in foreign destinations and its impact on behavioral intentions.Journal of
Hospitality,1(2), pp.94-105.
Séraphin, H., Platania, M., Spencer, P. and Modica, G., 2018. Events and tourism development
within a local community: the case of winchester (UK).Sustainability,10(10), p.3728.
Singh, S. and Srivastava, P., 2019. Social media for outbound leisure travel: a framework based
on technology acceptance model (TAM).Journal of Tourism Futures.
Tapanainen, S., 2019. Study of Polish market sales in co-operation with intermediaries, Case:
Company X.
Tasci, A.D. and Severt, D., 2017. A triple lens measurement of host–guest perceptions for
sustainable gaze in tourism.Journal of Sustainable Tourism,25(6), pp.711-731.
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Yao, Y., Jia, G., Lin, P.M. and Huang, J., 2020. Young adult children traveling with parents:
insights on conflict and its causes.Journal of Travel & Tourism Marketing,37(6),
pp.727-738.
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REFRENCES
Books and Journal
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